Financial Performance - The company recorded revenue of approximately HKD 190,491,000, a decrease of about 1.0% compared to the previous year[28]. - The profit attributable to the company's owners was approximately HKD 33,538,000, representing a decrease of about 8.7% year-on-year[28]. - The gross profit margin was 51.1%, down from 51.7% in the previous year, reflecting a decrease of 0.6%[11]. - The net profit margin was 17.6%, down from 19.1% in the previous year, indicating a decrease of 1.5%[11]. - Total revenue decreased by approximately HKD 1.9 million or 1.0% to approximately HKD 190.5 million from HKD 192.4 million in 2018, primarily due to a decrease in printing service revenue[43]. - The company's profit attributable to owners for the year was approximately HKD 33.5 million, a decrease of about 8.7% from HKD 36.7 million in 2018, with a net profit margin of approximately 17.6%[50]. - The gross profit for the year was approximately HKD 97.4 million, a decrease of about 2.1% from HKD 99.5 million in 2018, with gross profit margins of approximately 51.1% and 51.7% for 2019 and 2018, respectively[45]. Assets and Liabilities - Total assets increased to HKD 320,903,000, a rise of 19.5% compared to HKD 268,605,000 in the previous year[19]. - Net assets rose to HKD 240,567,000, an increase of 16.2% from HKD 207,029,000 in the previous year[19]. - Cash and cash equivalents, including time deposits and bank balances, amounted to HKD 232,251,000, an increase of 11.6% from HKD 208,112,000[19]. - Current assets increased to approximately HKD 287,000,000 (2018: HKD 256,300,000) while current liabilities rose to approximately HKD 71,800,000 (2018: HKD 61,100,000)[61]. - The group maintained a debt-to-asset ratio of 11.3% as of December 31, 2019, following the adoption of HKFRS 16[61]. Dividends - The company did not recommend the payment of a dividend for the year, consistent with the previous year[29]. - The board does not recommend a dividend for the year, consistent with the previous year[84]. Revenue Breakdown - Printing revenue for the year ended December 31, 2019, was approximately HKD 133.7 million, a decrease of about 2.1% from HKD 136.5 million in 2018, accounting for approximately 70.2% of total revenue[37]. - Translation revenue for the year was approximately HKD 43.4 million, an increase of about 1.4% from HKD 42.8 million in 2018, representing approximately 22.8% of total revenue[38]. - Media release revenue for the year was approximately HKD 13.4 million, an increase of about 2.3% from HKD 13.1 million in 2018, accounting for approximately 7.0% of total revenue[39]. Operating Expenses - Operating expenses for the year included selling and distribution expenses of approximately HKD 16.2 million, a decrease of about 5.3% from HKD 17.1 million in 2018[47]. - Administrative expenses for the year were approximately HKD 41.1 million, a decrease of about 2.1% from HKD 42.0 million in 2018, due to enhanced cost control measures[48]. Corporate Governance - The board of directors emphasizes good corporate governance practices to enhance shareholder value and accountability[101]. - The board of directors consists of at least one-third independent non-executive directors, ensuring compliance with listing rules[114]. - All independent non-executive directors confirmed their independence in accordance with the listing rules[114]. - The company has a whistleblowing policy to allow employees and stakeholders to report potential misconduct[145]. - The board has adopted a nomination policy to evaluate, select, and recommend candidates for the board, considering factors such as diversity, qualifications, experience, and independence[159]. - The company has established procedures for shareholders to propose motions at general meetings, requiring a written request from shareholders holding at least 10% of the paid-up capital[180]. Risk Management - The group has implemented a risk management framework to enhance internal controls and ensure compliance with listing rules[70][72]. - The company has engaged an external professional firm to perform internal audit functions and review the effectiveness of its risk management and internal control systems during the year[177]. - The board is responsible for maintaining effective risk management and internal control systems, which are reviewed annually to ensure they are adequate[176]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of 25% to $187.5 million[99]. - New product launches are expected to contribute an additional $30 million in revenue, with a focus on expanding the product line in the next quarter[99]. - Market expansion plans include entering two new regions, which are projected to increase market share by 10%[99]. - The company is considering strategic acquisitions to bolster its market position, with potential targets identified in the financial services sector[99]. Employee and Management - The total employee cost, including directors' remuneration, was approximately HKD 59,500,000 (2018: HKD 56,300,000) with 126 full-time employees as of December 31, 2019 (2018: 118)[65]. - The management team has extensive experience, with over 20 years in the financial printing industry, ensuring strong leadership[98]. Compliance and Regulations - The company ensures compliance with accounting standards and financial reporting regulations[141]. - The company has not identified any significant uncertainties that may cast doubt on its ability to continue as a going concern[172]. - The company operates entirely in Hong Kong, with transactions primarily in HKD, minimizing foreign exchange risk[82].
REF HOLDINGS(01631) - 2019 - 年度财报