Financial Performance - The total revenue for the year ended December 31, 2019, was HKD 2,803,735,000, a decrease of approximately 9% compared to the previous year[19]. - The company reported a loss attributable to shareholders of HKD 6,233,000, a significant improvement from a loss of HKD 84,782,000 in the previous year[21]. - Revenue for the year was HKD 1,561,518,000, a decrease of 17% compared to the same period last year[26]. - Interest and tax pre-profit improved significantly to HKD 2,106,000 compared to the previous year[26]. - The company reported a profit before tax of HKD 14,396, compared to a loss of HKD 78,195 in 2018[143]. - Net profit for the year was HKD 8,451, a significant recovery from a loss of HKD 80,021 in 2018[143]. - The total comprehensive income for the year was a loss of HKD 102,344,000, which includes a loss of HKD 84,782,000 attributed to shareholders[147]. - The company paid dividends of HKD 22,477,000 to shareholders during the year[147]. Segment Performance - The metal products segment generated revenue of HKD 1,233,605,000, an increase of approximately 4% year-on-year, with a substantial increase in profit before interest and tax of about 90%[23]. - The construction materials business showed significant improvement compared to the previous year despite the overall construction industry remaining sluggish[26]. - The group remains optimistic about the construction materials business due to several large-scale infrastructure projects, including airport expansion and public housing construction peaks in the coming years[26]. Assets and Liabilities - The total assets as of December 31, 2019, were HKD 2,358,997,000, while total liabilities were HKD 1,389,410,000[10]. - The company’s net asset value decreased to HKD 969,587,000 from HKD 985,749,000 in the previous year[10]. - The total borrowings of the group were HKD 791,461,000 as of December 31, 2019, down from HKD 1,024,098,000 the previous year[29]. - The net asset liability ratio improved to 0.50:1 as of December 31, 2019, compared to 0.67:1 the previous year[31]. Governance and Compliance - The company has maintained compliance with the corporate governance code as per the Hong Kong Stock Exchange listing rules throughout the year ending December 31, 2019[41]. - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse governance structure[44]. - The company has adopted a code of conduct for directors' securities trading, confirming adherence to the standards set forth in the listing rules[43]. - The chairman and CEO roles are currently held by the same individual, Mr. Peng Dezhong, which the board believes provides strong and effective leadership[42]. - The company has established a board diversity policy, considering various factors such as gender, age, and professional experience in director appointments[53]. Risk Management - The company emphasizes the importance of risk management as an integral part of its business strategy[62]. - The Board evaluates potential risks to identify and address key business risks[62]. - The Board believes that the group's risk management and internal control systems are effective and sufficient as of December 31, 2019[64]. Sustainability and Community Engagement - The company actively supports community initiatives, providing a sponsorship of HKD 500,000 to the North District Football Recreation Association for their football team[72]. - The company emphasizes sustainable development as a core part of its business strategy, integrating it into daily operations and continuously reviewing and expanding sustainability projects[71]. - The company maintains high levels of business integrity and transparency, focusing on ethical supply chain management and compliance with local laws and international guidelines[76]. - The company is committed to creating a safe and healthy work environment, promoting employee health and safety education[77]. Environmental Impact - Total direct and indirect carbon emissions for the fiscal year 2019 amounted to 2,420 tons of CO2 equivalent, a decrease of 16.0% compared to 2018[82]. - The total amount of hazardous chemical waste generated was 0.4 tons, representing a significant reduction of 77.8% from 1.8 tons in 2018[86]. - Total electricity consumption for specific plants was 752,360 kWh, a decrease of 15.1% from 886,065 kWh in 2018[88]. - Total water consumption was 48,168 cubic meters, reflecting a decrease of 25.3% compared to 64,519 cubic meters in 2018[86]. Shareholder Information - The proposed final dividend for shareholders is HKD 0.02 per share, totaling HKD 11,488,000[91]. - As of December 31, 2019, the company had a total of 365,594,474 shares held by Mr. Peng Dezhong, representing 63.65% of the issued shares[97]. - The company has a total of 574,378,128 share options available for issuance, equivalent to 10% of the company's issued share capital[98]. Related Party Transactions - The company’s independent non-executive directors confirmed that the transactions were conducted in the ordinary course of business and on normal commercial terms[119]. - The auditor issued an unqualified opinion on the company’s continuous related party transactions[120]. - The company plans to continue its leasing agreements and processing services with Zhongxing Shengda until 2036[116][119].
高力集团(01118) - 2019 - 年度财报