Financial Performance - The company's revenue for 2020 was HKD 997.1 million, an increase from HKD 877.2 million in 2019, representing a growth of approximately 13.7%[19] - Gross profit for 2020 was HKD 267.0 million, compared to HKD 190.9 million in 2019, indicating a growth of about 40%[19] - Net profit for 2020 was HKD 93.8 million, up from HKD 67 million in 2019, reflecting a year-over-year increase of approximately 39.7%[20] - The overall gross profit for 2020 was HKD 190.9 million, representing a decline of 24.2% from HKD 251.7 million in 2019, with a gross margin of 21.8%, down 3.6% from the previous year[38] - The company's attributable profit for 2020 was HKD 68.9 million, down from HKD 93.3 million in 2019, primarily due to the reasons mentioned above[44] - The company reported a 103.0% increase in revenue from the African market, benefiting from new customers in South Africa[32] - The company anticipates organic growth and recovery opportunities in the existing end-product market, driven by new product launches[35] Assets and Liabilities - The total assets as of December 31, 2020, were HKD 933.3 million, a decrease from HKD 1,428.8 million in 2019[21] - The net debt to equity ratio increased to 44.0% in 2020 from 31.5% in 2019, indicating a rise in financial leverage[21] - As of December 31, 2020, the group's cash and cash equivalents totaled HKD 171.8 million, a decrease of HKD 14.3 million compared to December 31, 2019[45] - The net current assets as of December 31, 2020, were HKD 271.8 million, down HKD 37.1 million from HKD 308.9 million on December 31, 2019, primarily due to an increase in inventory of HKD 183.0 million[46] - Total bank borrowings amounted to HKD 489.9 million, with HKD 461.5 million due within one year and HKD 28.4 million due after one year[47] Market and Sales - The company maintained a stable sales distribution with 46.3% from China and 53.7% from overseas markets in 2020, compared to 44.2% and 55.8% in 2019, respectively[26] - Sales of carrageenan products amounted to HKD 515.2 million in 2020, a decrease of 6.1% from HKD 548.7 million in 2019, while other products saw sales drop by 18.5% to HKD 362.0 million[25] - The overall demand for hydrophilic colloid products varied by region, with a 7.6% decline in the Chinese market and more significant declines in Europe, North America, and Asia (excluding China) of 11.7%, 25.3%, and 30.7%, respectively[32] Investments and Acquisitions - In 2021, the company completed the acquisition of 82% of Hung Tai Shun International Trading Limited, enhancing its market presence in semi-refined carrageenan production[12] - The acquisition of 82% of Hung Tai Shun for HKD 60.0 million is expected to enhance the company's production capacity for semi-refined carrageenan to 7,985 tons[28] - The company has committed capital expenditures of HKD 54.1 million as of December 31, 2020, compared to HKD 1.9 million in the previous year[61] Research and Development - The number of R&D personnel increased to 59 in 2020 from 57 in 2019, showing a commitment to innovation[8] - The company established Shengxi Biotechnology (Shanghai) Co., Ltd. in 2020, focusing on the R&D and marketing of dairy and meal replacement products[12] - The company established a post-doctoral research workstation in 2020 to enhance innovation capabilities[197] - The company has obtained multiple patents in China related to the development and improvement of agar and carrageenan processing technology[197] Corporate Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[143] - The company has appointed at least three independent non-executive directors, meeting the listing rules requirements[144] - The company emphasizes the importance of independent directors, ensuring they do not hold any executive positions within the company[144] - The board has adopted a diversity policy, considering various factors such as age, culture, education background, and professional experience in board composition[147] Compliance and Risk Management - The company has complied with all relevant laws and regulations without any significant violations during the review period[94] - The internal audit department conducted audits on major operating entities in China during 2020, identifying control deficiencies and suggesting improvements[162] - The board has reviewed the effectiveness of the risk management and internal control systems and found them to be adequate[163] Environmental, Social, and Governance (ESG) - The ESG report covers the company's operations in four production plants in Fujian and Hubei provinces for the period from January 1, 2020, to December 31, 2020[177] - The company has established a clear ESG management structure, with the board of directors overseeing ESG matters and responsible for the group's ESG strategy and reporting[179] - The company emphasizes energy efficiency and environmental protection as part of its commitment to sustainability[182] Shareholder Information - The company proposed a final cash dividend of HKD 0.025 per share, totaling HKD 20.4 million, to share its operational results with shareholders[27] - The total number of unexercised share options as of December 31, 2020, was 17,728,000, after 16,392,000 options were exercised during the year[100] - The company has a post-IPO share option plan allowing for the issuance of up to 80,000,000 shares, representing a percentage of the total shares issued as of the report date[104] Customer Relations - The company has a dedicated sales service hotline and email to respond to customer inquiries and complaints[199] - The company received 4 customer complaints during the reporting period, achieving a 100% complaint handling rate[200] - The company analyzes customer feedback to continuously improve service quality and standards[199]
绿新亲水胶体(01084) - 2020 - 年度财报