Financial Performance - The company's revenue for the fiscal year ended June 30, 2020, was approximately $109.39 million, a decrease of about 35% from $167.07 million in the previous year[21]. - The gross loss for the year was approximately $1.26 million, a reduction of about 92% compared to the previous year's gross loss of $16.44 million[21]. - The annual loss attributable to the company's owners was approximately $17.32 million, down from $38.73 million in the previous year, representing a decrease of about 55%[23]. - Basic loss per share was $1.31, an improvement from $2.95 in the previous year, reflecting a reduction of about 56%[20]. - Operating expenses decreased by approximately $3.47 million or about 19% to approximately $14.95 million, primarily due to stricter cost control measures[21]. - The group reported revenue of $109,386,000 for the year ended June 30, 2020, a decrease of 34.5% compared to $167,070,000 in 2019[177]. - The cost of sales was $110,650,000, resulting in a gross loss of $1,264,000, compared to a gross loss of $16,444,000 in the previous year[177]. - Operating loss for the year was $18,793,000, significantly improved from an operating loss of $43,269,000 in 2019[177]. - The net loss for the year was $19,253,000, compared to a net loss of $43,499,000 in 2019, indicating a reduction in losses[177]. - The company reported a total comprehensive loss of $38,994 thousand for the year ended June 30, 2020, compared to a loss of $17,608 thousand in the previous year, indicating a significant increase in losses[185]. Assets and Liabilities - The company's current assets totaled approximately $22.05 million, down from $69.79 million in the previous year[24]. - Total assets decreased to $59,232,000 from $69,787,000 in the previous year, reflecting a decline of approximately 15.2%[179]. - The group's cash and cash equivalents were $4,252,000, down from $6,845,000 in 2019, representing a decrease of 37.8%[179]. - Non-current assets totaled $20,636,000, down from $23,118,000, a decline of 10.8%[179]. - The group’s equity attributable to owners decreased to $28,832,000 from $46,000,000, a drop of 37.2%[183]. - The company's distributable reserves as of June 30, 2020, included contributed surplus of $9,036,000 and retained earnings of $(51,588,000), totaling $(42,552,000)[123]. - The company's total liabilities increased, with bank borrowings repaid amounting to $6,134 thousand in 2020, compared to $7,036 thousand in 2019, indicating ongoing debt management efforts[190]. Cash Flow and Financing - The cash flow from operating activities for the year ended June 30, 2020, was $3,702 thousand, down from $6,030 thousand in the previous year, reflecting a decline in operational efficiency[188]. - The company experienced a net cash outflow from financing activities of $6,789 thousand in 2020, compared to $7,545 thousand in 2019, showing a slight improvement in cash management[190]. - The group's cash and bank balance decreased from approximately $6,845,000 on June 30, 2019, to about $4,252,000 on June 30, 2020[25]. Corporate Governance - The company has maintained high standards of corporate governance throughout the year, adhering to the principles outlined in the corporate governance code[62]. - All directors confirmed compliance with the standard code of conduct for securities trading throughout the year[63]. - The board consists of executive directors and independent non-executive directors, ensuring a diverse range of expertise and experience[66]. - The company has maintained compliance with listing rules by appointing at least three independent non-executive directors, representing at least one-third of the board[68]. - The company believes that the current structure of having the same individual serve as both Chairman and CEO is beneficial for effective strategy implementation[67]. - The board is responsible for significant matters including policy, strategy, budget, internal controls, and risk management[75]. - The company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, with a majority of independent non-executive directors[78]. - The Audit Committee's primary responsibilities include reviewing financial information, internal control procedures, and risk management systems[79]. - The company provides formal and comprehensive onboarding for new directors to ensure they understand their responsibilities under listing rules and regulations[76]. - Continuous professional development is facilitated for directors, including participation in external seminars and training courses[77]. Market Challenges and Strategies - The company continues to face multiple challenges, including trade tensions and the impact of COVID-19 on global markets[16]. - The company aims to expand its market network to counter competitive pressures and actively seek new business opportunities[16]. - The company reported a significant impact on its operations due to the ongoing COVID-19 pandemic, which has affected supply chains and consumer demand[111]. - The company is subject to risks from trade restrictions and tariffs between the US and China, which could increase product costs and affect consumer confidence[111]. Share Options and Equity - The company has a total of 132,670,173 share options available for issuance under the updated plan, representing approximately 10% of the issued share capital as of the report date[140]. - As of June 30, 2020, the company recognized approximately $440,000 in share-based payment expenses, a decrease from $1,905,000 as of June 30, 2019[145]. - The exercise price for certain share options is set at HKD 0.46 per share, with a total of 10,860,000 options granted to the chairman and CEO, Mr. Zhang, and 13,260,000 options granted to executive director, Mr. Chen[142]. - The share options plan was adopted on November 22, 2013, and was amended on November 15, 2018, to comply with listing rules[138]. - The company has not granted, exercised, canceled, or allowed any share options to lapse during the year, aside from those disclosed[145]. Auditor and Compliance - The independent auditor, Zhonghui Anda CPA Limited, was appointed on June 21, 2019, and will be proposed for reappointment at the upcoming annual general meeting[158]. - The audit committee reviewed the accounting principles and practices adopted by the group and discussed audit, internal control, and financial reporting matters[157]. - The company has established an insider information policy to ensure timely and equal disclosure of insider information to the public[92]. - The company ensures that all resolutions presented at the shareholders' meeting are voted on according to listing rules, with results published on the company's and the stock exchange's websites[94]. - The company secretary has complied with the professional training requirements as per the listing rules this year[88].
松景科技(01079) - 2020 - 年度财报