Financial Performance - The overall revenue of the group increased by 12.0% to approximately RMB 197,773,000 as of December 31, 2020[10]. - The group's profit for the year grew by 23.3% to approximately RMB 14,633,000, primarily due to the absence of one-time expenses related to the transfer from GEM to the main board in 2019 and profitability from the new supply chain operations in Sichuan[11]. - The company's revenue for the year ended December 31, 2020, was approximately RMB 197,773,000, representing a growth of 12.0% compared to RMB 176,607,000 in 2019[23]. - Gross profit for the same period was approximately RMB 44,608,000, a decrease of 14.0% from RMB 51,898,000 in the previous year[23]. - Profit for the year increased by 23.3% to approximately RMB 14,633,000, up from RMB 11,867,000 in 2019[23]. - Logistics services revenue decreased by 30.2%, primarily due to a significant reduction in the volume of imported solid waste and adjustments in operational capacity[31]. - The supply chain operations segment experienced a substantial increase in revenue to approximately RMB 52,521,000, driven by new business in construction materials[39]. Operational Developments - The newly expanded supply chain operations in Sichuan contributed approximately RMB 44,802,000 in revenue during the fiscal year[13]. - The container handling services completed 2,970,000 TEUs, representing a decline of 9.2%[12]. - Container handling services saw a volume decrease of 9.2%, while general cargo handling services increased by 26.7%[24]. - The logistics service business experienced a decline due to the significant reduction in the approved quantity of solid waste imports, but the overall economic situation stabilized in the second half of the year[10]. - The company plans to leverage the favorable conditions of the national western development strategy to explore the potential of the building materials market in the western region, aiming for breakthroughs in revenue and profit[15]. - The company intends to strengthen communication with local government departments in Xiamen to acquire suitable land for developing a comprehensive logistics center project[15]. - The company aims to experiment with foreign trade supply chain operations in Xiamen to accumulate market experience for future logistics services[15]. Employee and Workforce - As of December 31, 2020, the group employed 836 employees, an increase from 772 employees as of December 31, 2019[54]. - Employee costs for the year were approximately RMB 73,092,000, slightly up from RMB 72,538,000 in 2019[40]. - The employee turnover rate improved to 48% in 2020, down from 63% in 2019[200]. - The company added 303 new employees in 2020, compared to 425 in 2019, while 401 employees left the company, down from 481 in the previous year[200]. Corporate Governance - The company has complied with corporate governance standards, ensuring high levels of accountability and transparency to protect shareholder interests[75]. - The board of directors consists of five members, including two executive directors and three independent non-executive directors, maintaining compliance with listing rules[78]. - The independent non-executive directors have confirmed their independence, ensuring adherence to the independence guidelines set by the listing rules[80]. - The company has adopted a standard code for securities trading by directors, ensuring compliance with trading regulations[76]. - The audit committee was established on February 13, 2017, and consists of three independent non-executive directors as of December 31, 2020[96]. - The audit committee held two meetings in the year ended December 31, 2020, with full attendance from its members[98]. - The remuneration committee was formed on February 13, 2017, and includes independent non-executive directors, ensuring no director participates in determining their own remuneration[101]. - The company has established corporate governance policies and practices to comply with legal and regulatory requirements[88]. Risk Management and Internal Control - The company is committed to maintaining a robust internal control system and risk management framework to support its operational strategies[84]. - The board confirmed its responsibility for risk management and internal control systems, which are reviewed for effectiveness and adequacy at least annually[115]. - The company has not established an internal audit department but engages an independent professional internal control consultant to review its internal control systems[115]. - The company aims to minimize risks rather than eliminate them entirely, acknowledging that the internal control system provides reasonable assurance against significant misstatements or losses[115]. - The company has implemented a comprehensive risk management system that includes risk identification, assessment, response strategies, and monitoring[144]. Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report highlights the company's commitment to sustainable development and outlines its policies and performance in these areas[130]. - The company has established three environmental goals: compliance with applicable laws, reducing environmental impact, and minimizing natural resource usage[161]. - The company has identified significant risks related to its operations and has developed strategies to mitigate these risks[143]. - The company emphasizes the importance of stakeholder engagement and has established a framework for assessing the significance of ESG issues[137]. - The company has complied with all applicable laws and regulations related to air and greenhouse gas emissions, with no significant claims or penalties reported[164]. - The main source of greenhouse gas emissions is from logistics operations, primarily due to diesel consumption from trucks and machinery[165]. - The company aims to reduce its environmental impact by implementing various measures, including route planning for employees and encouraging them to turn off engines upon arrival[166]. - The company produced minimal hazardous waste, primarily used oil and lubricants, which are properly disposed of by qualified waste management firms[169]. Future Outlook - The global economic outlook remains weak, with significant impacts from trade protectionism, COVID-19, and a decline in major economies, leading to expectations of continued economic downturn in 2021[71]. - The company plans to focus on expanding its supply chain operations, particularly in the Chengdu area, aiming for stable growth in business and profitability in 2021[71]. - The company is confident in achieving both revenue and profit growth in 2021 through the outlined strategic initiatives[72].
象兴国际(01732) - 2020 - 年度财报