Financial Performance - The company recorded revenue of approximately HKD 857,430,000 for the year ended December 31, 2020, representing a growth of about 22.3% compared to the previous year[9]. - The sales volume of sleepwear and loungewear products reached approximately 21,370,000 units, an increase of about 14.2% from the previous year[7]. - Gross profit increased by approximately HKD 39,910,000 to about HKD 242,110,000, reflecting a growth of about 19.7%[10]. - The average gross profit margin for the year was approximately 28.2%, slightly down from 28.8% in the previous year[10]. - The company’s net profit attributable to shareholders increased by approximately 32.9% to about HKD 105,610,000[17]. - Revenue for the year ended December 31, 2020, was HKD 857,431,000, an increase of 22.3% from HKD 701,285,000 in 2019[185]. - Gross profit for 2020 was HKD 242,114,000, up 19.7% from HKD 202,203,000 in 2019[185]. - Net profit for the year was HKD 106,221,000, representing a 93.7% increase compared to HKD 54,843,000 in 2019[185]. - Total comprehensive income for the year was HKD 119,640,000, compared to HKD 49,972,000 in 2019, marking a significant increase of 139.5%[185]. - Other income for the year was approximately HKD 5,970,000, significantly up from HKD 1,620,000 in the previous year, mainly due to government support during the COVID-19 pandemic[12]. - Other income increased significantly to HKD 5,974,000 from HKD 1,617,000, representing a growth of 269.5%[185]. Dividends and Reserves - The company declared a final dividend of HKD 0.036 per share, representing a dividend payout ratio of approximately 42.6% of the profit attributable to shareholders[8]. - The company declared a final dividend of HKD 0.036 per share for the year ended December 31, 2020, totaling approximately HKD 45,000,000, compared to HKD 0.0228 per share in 2019[42]. - The company’s distributable reserves as of December 31, 2020, were approximately HKD 164,334,000, an increase from HKD 141,998,000 in 2019[59]. - The company’s reserves increased to HKD 391,310,000 from HKD 302,602,000, reflecting a growth of 29.3%[191]. Assets and Liabilities - As of December 31, 2020, the group's current assets were approximately HKD 375.8 million, an increase from HKD 361.9 million in 2019, while current liabilities decreased to approximately HKD 145.5 million from HKD 224.9 million[21]. - The current ratio improved to approximately 2.58 as of December 31, 2020, compared to 1.61 in the previous year[21]. - The group's cash and bank balance as of December 31, 2020, was approximately HKD 85.9 million, down from HKD 131.8 million in 2019, primarily due to net repayment of bank loans amounting to approximately HKD 111.8 million[21]. - The group had no outstanding bank loans as of December 31, 2020, compared to approximately HKD 111.8 million in 2019, resulting in a debt-to-equity ratio of zero[22]. - Current assets net value increased to HKD 230,281,000 from HKD 137,030,000, a rise of 68.1%[188]. - Total assets less current liabilities rose to HKD 432,285,000, up from HKD 343,806,000, indicating a growth of 25.8%[188]. Operational Efficiency - Financial expenses decreased by 32.4% to approximately HKD 5,280,000, primarily due to the repayment of most bank loans in the first half of 2020[16]. - Sales and distribution expenses were approximately HKD 49,140,000, an increase of about HKD 8,490,000, with a sales expense to revenue ratio of about 5.73%[14]. - The company is in negotiations to establish a production base in Vietnam, aiming to expand production capacity post-pandemic[7]. - The company is exploring the establishment of production bases in Africa and Central America to diversify social, economic, and political risks[20]. - The management is focused on developing new customer relationships and product lines to maintain stable revenue growth[20]. Governance and Compliance - The company has complied with all applicable code provisions of the Corporate Governance Code as of December 31, 2020, except for the separation of the roles of Chairman and CEO, which are held by the same individual[107]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance between executive and non-executive members[109]. - The company has established a Nomination Committee to assist the board in managing the nomination process for directors and senior management[118]. - The company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers, ensuring compliance by all directors during the year[108]. - The board has overall responsibility for the group's financial statements, ensuring compliance with Hong Kong accounting standards and policies[123]. - The board confirmed the effectiveness of the risk management and internal control systems during the fiscal year ending December 31, 2020, with no significant issues identified[126]. - The group has implemented measures to ensure the accuracy and timeliness of public disclosures regarding inside information[127]. Environmental and Social Responsibility - The company is committed to promoting environmental sustainability through resource conservation and recycling initiatives[33]. - Total energy consumption for the year was 6,351,000 kWh, with water usage at 35,431 cubic meters[149]. - The company produced 523 tons of direct greenhouse gas emissions and 4,704 tons of indirect emissions[149]. - The company has implemented various environmental control measures to reduce energy consumption and emissions[146]. - The company has been recognized as a "Water-Saving Enterprise" in Xuchang City[146]. - The company emphasizes compliance with local labor laws and provides competitive salaries above minimum wage standards[154]. - The company encourages resource optimization among employees to minimize waste generation[147]. - The company donated approximately HKD 436,000 to charitable organizations to support underprivileged children during the year[159]. Employee Management - The company employed 1,847 staff as of December 31, 2020, down from 2,107 staff in 2019[57]. - The total number of employees is 1,847, with a gender distribution of 407 males and 1,440 females[153][155]. - Employee turnover rate in China was approximately 3.4%, while in Cambodia it was about 12.0%[155]. - Employee training programs were implemented, with male employees receiving an average of 6 hours of training (70.3% participation) and female employees receiving 4 hours (49.0% participation)[158]. - The company provided safety measures resulting in zero work-related fatalities and a total of 50 lost workdays due to injuries during the reporting period[157]. Supply Chain and Quality Assurance - The supply chain includes 122 suppliers in China, 6 in Vietnam, and 19 in Cambodia, aimed at diversifying and enhancing product quality and delivery[161]. - The company has a quality assurance department that ensures compliance with international standards, successfully passing all inspections in the past year[162]. - The largest customer accounted for 85.1% of the total revenue, while the top five customers together contributed 99.2%[87]. - The largest supplier represented 11.3% of total purchases, and the top five suppliers accounted for 41.5%[87].
捷隆控股(01425) - 2020 - 年度财报