Financial Performance - For the year ended December 31, 2019, Jia Yao Holdings Limited reported revenue of approximately RMB 581.3 million, an increase of about 2.5% or RMB 14.1 million compared to the previous year[18]. - The gross profit for the same period was approximately RMB 126.0 million, reflecting a year-on-year increase of about 2.9% or RMB 3.5 million[18]. - The gross profit margin was approximately 21.7%, up by 0.1% from approximately 21.6% in the previous year[18]. - Profit attributable to owners of the company decreased by approximately 67.5% to about RMB 4.2 million compared to the previous year, a decline of RMB 8.8 million[18]. - The company's revenue for the year ended December 31, 2019, was approximately RMB 581.3 million, an increase of about 2.5% compared to the same period in 2018[31]. - The gross profit increased by approximately 2.9% to about RMB 126.0 million, with a gross profit margin of approximately 21.7%[32]. - Other losses increased by approximately RMB 7.1 million to about RMB 9.8 million, primarily due to a fair value loss of RMB 4.4 million on convertible bonds and a loss of RMB 3.1 million from the sale of raw materials[36]. - Net financing costs decreased by approximately 53.2% from RMB 4.7 million to RMB 2.2 million, mainly due to a reduction in bank borrowing interest of about RMB 2.2 million[37]. - Income tax expenses decreased by approximately 38.8% from RMB 3.9 million to RMB 2.4 million, primarily due to a decrease in pre-tax profit of the company's subsidiaries in China[38]. - The total comprehensive income for the year was RMB 6,296 thousand, compared to RMB 15,820 thousand in 2018, reflecting a decrease of approximately 60%[198]. Operational Efficiency - The average turnover days for trade receivables decreased from approximately 99 days to about 83 days[18]. - The average turnover days for trade payables increased from approximately 260 days to about 269 days[19]. - The average inventory turnover days decreased from approximately 125 days to about 122 days[19]. - The company is committed to investing in machinery and equipment to maintain production efficiency in line with international standards[28]. - The company has adopted measures to mitigate the impact of rising raw material prices by negotiating fixed prices with top suppliers[30]. - The company is focused on product design and technology development to enhance its competitive edge in the market[28]. - The company aims to enhance its sales and marketing capabilities to strengthen relationships with existing customers and develop new business relationships[23]. - The company has established a comprehensive internal management system covering quality, environment, and occupational health and safety, ensuring compliance with relevant laws and regulations[110]. - The company has implemented a quality control system certified by ISO9001 to ensure product quality throughout the production process[123]. Market Strategy - The company is focusing on enhancing its product range towards the mid-to-high-end cigarette packaging market and expanding its international trade operations[21]. - The company plans to explore new revenue sources and expand its international trade business to strengthen its market leadership[23]. - The company anticipates a challenging economic environment due to the COVID-19 pandemic, impacting business operations and recovery prospects[57]. - The company plans to focus on product development, shifting towards mid-to-high-end cigarette packaging to protect profitability[58]. - The company aims to develop new products to attract younger consumers and maintain its leadership position in the industry[59]. - The company will explore opportunities in various sectors, including tobacco and international trade services, to maintain market leadership[59]. Corporate Governance - The company has a strong focus on corporate governance with independent directors overseeing management and compliance matters[65]. - The management team includes individuals with extensive backgrounds in finance, accounting, and corporate governance, ensuring strategic oversight[68]. - The company has established service agreements for executive directors effective from February 18, 2019, for a term of three years[84]. - The board of directors consists of six members, including one executive director, two non-executive directors, and three independent non-executive directors[76]. - The company has adopted the standard code of conduct for securities trading by directors as per the listing rules[74]. - The company has complied with all applicable code provisions of the corporate governance code during the year ended December 31, 2019[73]. - The independent non-executive directors are responsible for independent oversight of management[76]. - The company has established a diversity policy for the board to enhance performance quality, considering various factors such as skills, experience, and gender[95]. - The board has reviewed the effectiveness of the risk management and internal control systems, confirming compliance with the code for the year ending December 31, 2019[102]. Employee Management - The total number of employees decreased from 850 to 570, with total employee costs amounting to approximately RMB 69.6 million, down from RMB 86.8 million[50]. - The company actively invests in employee development, providing various training programs to enhance personal skills and team performance[113]. - The company has implemented a training plan annually based on departmental needs, ensuring all employees meet educational and training requirements[113]. - The company has a policy of promoting internal employees for management positions whenever feasible, enhancing employee growth and operational efficiency[114]. - The employee distribution by age group as of December 31, 2019, was as follows: 43 employees aged 18-25, 188 aged 26-35, 183 aged 36-45, and 156 aged 46 and above[110]. Environmental Impact - The total carbon dioxide emissions amounted to 2,585 tons for the year ended December 31, 2019[118]. - The total energy consumption was 1,186,773 MWh for fuel and gas, and 12,021.64 MWh for electricity[121]. - The total water consumption was 97,145 cubic meters, with a consumption of 147.64 cubic meters per RMB 1 million of goods sold[121]. - The company has implemented a green program to manage energy consumption, water usage, and waste production[176]. - The total amount of hazardous waste generated was 163 tons[118]. Risk Management - The company has established procedures for risk management and internal control, aiming to provide reasonable assurance against material misstatements or losses[102]. - The risk management process includes identifying risks, assessing their likelihood and impact, and managing responses to ensure effective communication with the board[102]. - The audit committee monitored the effectiveness of the risk management and internal control systems and made recommendations for improvements[88]. Related Party Transactions - The group has a significant relationship with state-owned tobacco companies, which are direct or indirect wholly-owned subsidiaries of China National Tobacco Corporation[146]. - The group sold products to Hubei Tobacco Industrial Co., Ltd. amounting to RMB 29,458,000, with a related annual cap of RMB 47,429,000[147]. - The group sold products to Yunnan Tobacco Materials Co., Ltd. totaling RMB 64,468,000, with a related annual cap of RMB 163,454,000[147]. - The group sold products to Henan Tobacco Industrial Co., Ltd. amounting to RMB 61,943,000, with a related annual cap of RMB 66,306,000[147]. - The group sold products to Heilongjiang Tobacco Industrial Co., Ltd. totaling RMB 9,254,000, with a related annual cap of RMB 10,612,000[147]. Financial Position - Total assets as of December 31, 2019, were RMB 644,323 thousand, a decrease from RMB 782,970 thousand in 2018, representing a decline of approximately 17.7%[200]. - Cash and cash equivalents decreased to RMB 75,899 thousand in 2019 from RMB 212,527 thousand in 2018, a drop of about 64%[200]. - The company reported a basic earnings per share of RMB 0.01 for 2019, down from RMB 0.03 in 2018[198]. - The company’s non-current assets totaled RMB 182,472 thousand in 2019, down from RMB 195,430 thousand in 2018, a decline of about 6.7%[200].
嘉耀控股(01626) - 2019 - 年度财报