Financial Performance - The total revenue for the year ended December 31, 2020, was HKD 2,991,068,000, representing an increase of approximately 7% compared to the previous year[43]. - The attributable profit to shareholders after deducting non-controlling interests was HKD 93,545,000, showing significant improvement over the previous year's performance[45]. - The two core businesses, metal products and building materials, both experienced average growth during the year[44]. - The company faced challenges due to the COVID-19 pandemic, which impacted global economic activities, but most businesses managed to recover growth as planned[45]. - The revenue breakdown for 2020 showed that metal products accounted for 44% and building materials accounted for 56% of total revenue[41]. - The company’s pre-tax profit for 2020 was HKD 141,304,000, compared to a loss of HKD 78,195,000 in 2018[7]. - The construction materials segment reported revenue of HKD 1,674,282,000, a 7% increase compared to the previous year, with significant growth in EBIT[50]. - The metal products segment generated revenue of HKD 1,327,239,000, an increase of approximately 8% year-on-year, with EBIT rising by 52% to HKD 139,440,000[48]. Financial Position - Total assets as of December 31, 2020, were HKD 2,446,006,000, with total liabilities of HKD 1,340,574,000[7]. - The net asset value for the company was HKD 1,105,432,000 at the end of 2020[7]. - As of December 31, 2020, the group's cash and bank balances totaled HKD 403,092,000, up from HKD 304,672,000 the previous year[52]. - The group's total borrowings amounted to HKD 691,766,000, a decrease from HKD 791,461,000 in the previous year[53]. - The net asset-to-debt ratio improved to 0.26:1 from 0.50:1 year-on-year, indicating a stronger capital structure[53]. Corporate Governance - The company is committed to maintaining good corporate governance practices as outlined in the Hong Kong Stock Exchange's Listing Rules[66]. - The board currently consists of four executive directors and three independent non-executive directors, with a recent resignation reducing the number of independent directors to two[71]. - The company is actively seeking suitable candidates to fill the vacancy left by the resignation of an independent non-executive director to comply with the Listing Rules[68]. - The company has adopted a code of conduct for directors' securities trading, ensuring compliance with the standards set out in the Listing Rules[69]. - All directors and senior management have been provided with directors' and officers' liability insurance[72]. - The company encourages continuous professional development for all directors to ensure they remain informed and capable of contributing effectively[73]. - Independent non-executive directors have confirmed their independence in accordance with the Listing Rules[71]. - The company has established service contracts with all directors, which are subject to annual renewal[75]. - The company has complied with the corporate governance code, except for the combined roles of the chairman and CEO, which the board believes provides strong leadership[67]. - The company is committed to reviewing the board's structure and composition regularly to ensure it meets the business's needs[67]. Risk Management - The board oversees the risk management process, integrating it into daily operations to identify and address key business risks[94]. - The internal audit function regularly reviews the adequacy and effectiveness of the risk management and internal control systems[95]. - The company has implemented policies and procedures to prevent unauthorized asset appropriation and ensure reliable financial reporting[94]. - The company believes that the risk management and internal control systems are effective and sufficient as of December 31, 2020[97]. Sustainability and Environmental Impact - A sustainability committee led by the board has been established to promote environmental, social, and governance practices[107]. - The company emphasizes the importance of sustainable development as part of its corporate strategy[105]. - Total direct and indirect carbon emissions for the fiscal year 2020 amounted to 1,884 tons of CO2 equivalent, an increase of 32.58% compared to 2019[118]. - The company aims to reduce or prevent negative environmental impacts from its operations, products, and services[124]. - The company has implemented measures to continuously invest in facilities equipped with the latest technology to reduce energy consumption and emissions[117]. - The company is committed to sustainable waste management practices, aiming to minimize waste generation and enhance recycling efforts[119]. Employee and Training - Total number of employees in Hong Kong and mainland China as of December 31, 2020, was 1,629, an increase from 1,557 in 2019[127]. - Employee turnover rate during the reporting period was 21%, compared to 19% in 2019[127]. - 1,390 employees, representing 85% of the workforce, received training during the reporting period, totaling approximately 77,000 hours of training[131]. - Average training time per employee during the reporting period was 55.4 hours[131]. - The company has not recorded any work-related fatalities or serious injuries in the past three years, including the reporting year[129]. Audit and Financial Reporting - The independent auditor, Deloitte, has audited the company's consolidated financial statements, which reflect a true and fair view of the group's financial position as of December 31, 2020[182]. - The company is responsible for preparing financial statements that reflect a true and fair view in accordance with applicable accounting standards[194]. - The auditor's responsibility is to obtain reasonable assurance that the financial statements are free from material misstatement due to fraud or error[196]. - The overall presentation, structure, and content of the consolidated financial statements, including disclosures, were assessed to ensure they fairly reflect relevant transactions and events[200]. Shareholder Engagement - The company is committed to enhancing communication with shareholders through annual and special general meetings[100]. - The company must consider financial performance, earnings, and operational needs when proposing dividend payments[92]. - The company provided a final dividend of HKD 0.035 per share, totaling HKD 20,103,000, with no interim dividend paid during the year[151].
高力集团(01118) - 2020 - 年度财报