Financial Performance - The Group reported consolidated financial results for the 2020 Financial Year, with a focus on strategic overview and business outlook[6]. - The Group's revenue for the year was approximately HK$5,476.2 million, a decrease of 10.5% compared to HK$6,119.1 million in 2019, primarily due to a temporary 3-week factory closure caused by COVID-19[9]. - Profit attributable to equity holders was HK$743.5 million, representing a decrease of 13.7% from HK$861.8 million in 2019 due to reduced sales revenue[9]. - The Group's Gross Profit Margin was 16.9% in 2020, down from 17.3% in 2019[18]. - Return on Equity decreased to 25.6% in 2020 from 26.6% in 2019[18]. - Total comprehensive income for the year was HK$605,612, a decrease of 7.9% from HK$657,525 in 2019[122]. - The company reported a profit for the year of HK$743,489, down from HK$861,780, indicating a decline of approximately 14%[126]. Cost and Expenses - The cost of sales decreased to approximately HK$4,551.6 million, down 10.0% from HK$5,058.2 million in 2019, aligning with the revenue decline[9]. - Selling and distribution expenses decreased to HK$64.0 million from HK$65.9 million in 2019, while administration expenses slightly decreased to HK$189.9 million from HK$192.0 million[9]. - Finance costs decreased by approximately 19.7% to HK$11.4 million from HK$14.2 million in 2019, mainly due to a reduction in exchange loss on cash and cash equivalents[10]. Assets and Liabilities - Total assets increased by 6.2% to HK$4,813.2 million from HK$4,530.2 million in 2019, driven by increases in inventory, accounts receivables, and cash[13]. - The Group's net cash position decreased to HK$66.5 million in 2020 from HK$274.7 million in 2019[19]. - Total liabilities increased to HK$1,816,118, up 44% from HK$1,260,598 in 2019[124]. - Current liabilities rose significantly to HK$1,613,402, compared to HK$1,051,550 in the previous year, marking a 53% increase[124]. Dividends - The Board proposed a final dividend of HK18 cents per share for the 2020 Financial Year, down from HK25 cents in 2019, resulting in a total dividend of HK44 cents per share for 2020, compared to HK57 cents in 2019[22]. - An interim dividend of HK26 cents was paid in December 2019, down from HK32 cents in 2018, and a final dividend of HK18 cents is recommended, down from HK25 cents in 2019[37]. Strategic Outlook - The company aims to enhance its market position through new product development and technological advancements[6]. - Future outlook includes expansion into new markets and potential mergers and acquisitions to drive growth[6]. - The Group plans to establish a new factory in Vietnam to expand production capacity and diversify production sites[8]. - The Group aims to increase market share in fabrics for sportswear and explore new business opportunities while maintaining disciplined budgetary control[8]. Risk Management - The Group's financial performance is impacted by macroeconomic factors, including potential trade barriers and the economic effects of COVID-19, leading to uncertainties in business operations[35]. - The Group identified risks related to strategic direction, including the success of future business depending on achieving strategic objectives such as acquisitions and joint ventures[35]. - Legal risks may arise from unenforceable contracts or lawsuits, potentially disrupting business operations and financial conditions[35]. Corporate Governance - The Group is committed to high standards of corporate governance to enhance transparency and accountability, safeguarding the interests of shareholders[77]. - The Company complied with applicable code provisions and best practices in corporate governance throughout the 2020 Financial Year[78]. - The roles of Chairman and Chief Executive Officer are held by Mr. Wan Wai Loi, which does not comply with code provision A.2.1 of the CG Code[78]. Shareholder Information - The Company maintains a website for public access to business developments, financial information, and corporate governance practices[102]. - Shareholders holding at least one-tenth of the paid-up capital can requisition an extraordinary general meeting to propose agenda items[103]. - Notice for annual general meetings must be sent at least 20 clear business days prior to the meeting[103]. Employee Information - As of March 31, 2020, the Group had 5,197 full-time employees, a decrease from 5,688 in 2019[22]. - The Group's remuneration package includes salary, bonuses, allowances, and retirement benefits, with no significant changes in policy[22]. Environmental and Social Responsibility - The Group continued to invest in environmental protection and received recognition, including the "Top 10 Energy-Saving Enterprises 2019" award[21]. - During the 2020 Financial Year, the Group made charitable donations totaling approximately HK$2,090,000, compared to HK$556,000 in 2019[39]. Financial Reporting and Compliance - The Group's consolidated financial statements have been prepared in accordance with all applicable Hong Kong Financial Reporting Standards (HKFRS) issued by the HKICPA[131]. - The audit committee oversees the Group's financial reporting process, ensuring compliance with relevant standards[116]. - The auditor's objective is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement, whether due to fraud or error[116].
互太纺织(01382) - 2020 - 年度财报