Financial Performance - Revenue for the year ended December 31, 2020, was HKD 147,495,000, a decrease of 22.6% from HKD 190,491,000 in 2019[10] - Profit attributable to owners of the company for 2020 was HKD 18,266,000, down 45.5% from HKD 33,538,000 in 2019[10] - Gross margin decreased to 47.1% in 2020 from 51.1% in 2019, a decline of 4.0%[10] - Net profit margin fell to 12.4% in 2020 compared to 17.6% in 2019, a decrease of 5.2%[10] - The printing services revenue was approximately HKD 96,000,000, a decrease of about 28.2% from HKD 133,700,000 in the previous year, accounting for approximately 65.1% of total revenue[35] - Translation services revenue was approximately HKD 39,300,000, down about 9.4% from HKD 43,400,000, representing about 26.6% of total revenue[36] - Media release services revenue was approximately HKD 12,200,000, a decrease of about 9.0% from HKD 13,400,000, contributing approximately 8.3% to total revenue[37] - The company's gross profit decreased by about 28.6% to approximately HKD 69,500,000, with gross profit margins of approximately 47.1% and 51.1% for the current and previous year, respectively[43] Assets and Liabilities - Total assets as of December 31, 2020, were HKD 260,531,000, down 18.8% from HKD 320,903,000 in 2019[19] - Net assets decreased to HKD 207,633,000 in 2020, a reduction of 13.7% from HKD 240,567,000 in 2019[19] - Cash and cash equivalents were HKD 186,487,000, down 19.7% from HKD 232,251,000 in 2019[19] - As of December 31, 2020, the group's current assets decreased to approximately HKD 242.8 million from HKD 287 million in 2019, while current liabilities decreased to approximately HKD 51.7 million from HKD 71.8 million in 2019[55] - The total assets of the group decreased to approximately HKD 260.5 million from HKD 320.9 million in 2019, and total equity decreased to approximately HKD 207.6 million from HKD 240.6 million in 2019[58] - The group held a total cash and bank balance of approximately HKD 186.5 million as of December 31, 2020, down from HKD 232.3 million in 2019, with a current ratio of approximately 4.7 compared to 4.0 in 2019[58] Debt and Equity - The company maintained a low debt-to-equity ratio of 0.05 in 2020, down 54.5% from 0.11 in 2019[19] - The group's debt-to-equity ratio improved to approximately 0.05 as of December 31, 2020, down from 0.11 in 2019, with no bank borrowings or overdrafts reported[58] Expenses and Cost Management - Selling and distribution expenses decreased by about 21.0% to approximately HKD 12,800,000, primarily due to reduced marketing activities during the COVID-19 outbreak[45] - Administrative expenses were reduced by about 8.8% to approximately HKD 37,200,000, as the company strictly controlled administrative costs[46] Dividends - The company declared an interim dividend of HKD 0.20 per share, totaling HKD 51,200,000, and a proposed final dividend of HKD 0.30 per share, totaling HKD 76,800,000 for the year[85] - The total dividend for the year amounts to HKD 0.50 per share, compared to no dividends declared in the previous year[85] Corporate Governance - The company has a strong commitment to corporate governance, ensuring accountability and enhancing shareholder value through effective management structures and internal controls[102] - The board of directors includes a balanced mix of executive and independent non-executive directors, with independent directors accounting for at least one-third of the board[111] - The company has established an audit committee, a remuneration committee, and a nomination committee to oversee key governance functions[104] - The management team has extensive experience in the financial printing industry, with over 22 years of experience for the managing director and over 10 years for the sales director[99] - The company has adhered to the corporate governance code as per the Hong Kong Stock Exchange regulations, ensuring compliance throughout the reporting period[104] Risk Management - The company has implemented a series of internal control policies aimed at ensuring efficient operations and reliable financial reporting[178] - The risk management and internal control systems are reviewed annually, and external professional firms have been engaged to assess their effectiveness[179] Employee Relations - The company maintains good relationships with customers and suppliers, with no complaints received from suppliers during the year[82] - All employee salaries were paid on time, with no disputes regarding salary payments, ensuring reasonable compensation for employees[82] - The group employed 129 full-time employees as of December 31, 2020, with total employee costs amounting to approximately HKD 54.7 million, down from HKD 59.5 million in 2019[65] Future Outlook - The operating environment for 2021 remains uncertain due to potential impacts from the COVID-19 pandemic[86] - The company plans to enhance its market competitiveness and improve financial printing services to meet customer demands despite facing challenges from regulatory changes[27] - The company plans to invest surplus funds in a diversified portfolio of investment products, including listed securities, to safeguard capital value[84]
REF HOLDINGS(01631) - 2020 - 年度财报