Economic Performance - The Hong Kong economy entered recession in 2019, marking its first annual contraction in a decade[11]. - The Hong Kong economy experienced a recession in 2019, with a negative growth rate of 1.2%, marking the first annual decline since 2009[60]. - The local stock market exhibited considerable volatility in 2019, and the property market showed significant quietness since June[11]. - Total advertising spending in Hong Kong dropped by 8% in 2019, with the second half of the year seeing a decline of 17%[60]. - The total newspaper advertising market suffered a 14% decline in 2019, significantly impacted by social incidents affecting economic activities[61]. - The magazine advertising market in Hong Kong recorded a 23% decline in 2019, but the flagship magazine East Week achieved a 4% increase in readership[75]. - The advertising revenue for paid newspapers in Hong Kong dropped by 14% in 2019, worsening from a 9% decline in the first half to a 19% decline in the second half[67]. Company Performance - The consolidated revenue for the financial year ended December 31, 2019, was approximately HK$1,262 million, a decrease of about 11.9% from HK$1,432 million in the previous year[47]. - The loss attributable to owners of the Company was approximately HK$23 million, compared to a profit of approximately HK$24 million in the previous year[47]. - The group's consolidated revenue fell from approximately HK$1.431 billion in 2018 to about HK$1.261 billion in 2019, resulting in a loss attributable to shareholders of approximately HK$22.7 million compared to a profit of about HK$24.2 million in 2018[64]. - The Group's profitability improved in the Standard segment, while the Magazine unit made progress towards a sustainable business model[13]. - The Group's performance was adversely affected by the economic downturn and social incidents in the second half of 2019[12]. Media and Content Development - The Group maintained its lead in the print media market, with Headline Daily remaining the number 1 newspaper in Hong Kong and Sing Tao Daily achieving a recent year high in readership[13]. - The Group continued to invest in new media businesses, which contributed to revenue growth despite challenging market conditions[13]. - The Group's core businesses remained a focus, providing excellent content and high added-value services to readers and advertisers[13]. - The Group's media platforms continue to focus on high-quality content in the education sector, serving students from kindergarten to university levels[29]. - The Group's "Headline No.1 Awards 2019" and other promotional events were organized to meet market demands[32]. - The Group's media platforms received multiple awards, including Best News Writing (Chinese) and Best Photograph (Sports) at the Hong Kong News Awards 2019[40]. - The Group's "Headline Daily Jetso" app achieved over 490,000 downloads and a membership base exceeding 90,000, hosting over 150 campaigns with participation reaching up to 4 million[85]. - The one-stop education and parenting media platform "Ohpama.com" strengthened its performance, with total Facebook fans reaching 546,000 and mobile app downloads accumulating to 38,000 by December 2019[84]. Awards and Recognition - The Group's one-stop parenting and education platform "Oh! 爸媽" was awarded "No.1 Parenting Digital Media of the Year" by Marketing Magazine's Media Report 2019 and won three awards at "The Spark Awards 2019"[36]. - Headline Daily's "Jetso" app was the only mobile app to win two gold prizes at "The Spark Awards 2019" and also received a silver prize for "Best App - News" at "Mob-Ex Awards 2019"[33]. - Sing Tao Daily was ranked the top brand newspaper in Hong Kong according to the Digital News Report 2019 by The University of Oxford's Reuters Institute[33]. - Headline Daily maintained its position as Hong Kong's number one free newspaper, with an average daily readership of 1,066,000, the highest among all newspapers in Hong Kong[62]. - Headline Daily was the only Chinese free daily that did not record a drop in readership, commanding 78% of total Chinese free newspaper readers[62]. - Sing Tao Daily's readership increased by 8% in 2019, the highest growth among all Hong Kong newspapers, while maintaining its cover price at HK$8[70]. - Headline Finance paper recorded a 4% growth in readership, continuing to be the most widely-read finance newspaper in Hong Kong[66]. Corporate Governance - The Company has adopted the Corporate Governance Code and complied with it throughout the review period[136]. - The Board consists of ten directors, including six executive directors and four independent non-executive directors[138]. - The Chairman of the Board is Mr. Ho Tsu Kwok, Charles, and the CEO is Mr. Siu Sai Wo, with clearly defined roles[140]. - The Company has a strong focus on risk management through good corporate governance practices[135]. - The management structure of the Company has been reviewed and approved by the Board[139]. - The Company has made specific inquiries to all Directors regarding compliance with the Model Code for Securities Transactions[137]. - The Board is responsible for the leadership and control of the Company, reviewing objectives and strategies[139]. - The Company has a history of transforming traditional state-owned companies into modern international enterprises under its leadership[127]. Financial Management - The Group's cash balance as of December 31, 2019, was approximately HK$480 million, down from approximately HK$528 million in the previous year[49]. - The gearing ratio was 0.8% as of December 31, 2019, indicating a low level of long-term borrowings relative to equity[50]. - The external auditor's remuneration for audit services was HK$4,743,000 and for non-audit services was HK$55,000, totaling HK$4,798,000[173]. - The total remuneration payable to the external auditor reflects a commitment to maintaining compliance and transparency in financial reporting[172]. - The Company has adopted a Dividend Policy aimed at providing a relatively steady dividend payout ratio linked to the Group's earnings performance and financial position[194]. - The form, frequency, and amount of dividends will depend on the Company's operations, earnings, capital requirements, and other internal or external factors[196]. Challenges and Future Outlook - The Group is committed to overcoming challenges and turning crises into opportunities in the face of economic pressures[19]. - The Group's prospects for 2020 are uncertain due to global economic challenges, including the impact of the coronavirus pandemic and ongoing social unrest in Hong Kong[92]. - The global economic growth in 2019 was the weakest since the 2009 financial crisis, with significant threats to the 2020 outlook due to the COVID-19 pandemic and ongoing geopolitical tensions[96]. - The Company plans to continue cost-cutting measures and streamline operations to achieve a sustainable cost structure, anticipating that the decline in paper prices will help reduce production costs[96]. - The Company is focusing on cost-saving measures and streamlining operations to maintain an efficient cost structure, with expected savings from softening newsprint prices[93]. Employee Management - As of December 31, 2019, the Group employed approximately 1,425 staff, offering competitive salaries and benefits to attract and retain quality employees[94]. - The Company has a clear separation of roles between the Chairman and the CEO, with defined responsibilities[143]. - The Company encouraged all Directors to participate in continuous professional development (CPD) programs relevant to their duties, with expenses covered by the Company[146]. - The attendance record for the Board meetings in 2019 showed that the Chairman attended 2 out of 2 meetings, while the CEO attended all meetings and the AGM[155].
星岛(01105) - 2019 - 年度财报