Financial Performance - The company's revenue for the year ended December 31, 2020, was approximately RM 109.5 million, a decrease of about 38.6% from RM 178.2 million in 2019[17] - Gross profit for the same period was RM 30.3 million, down 44.0% from RM 54.1 million in the previous year, resulting in a gross margin of 27.7% compared to 30.4%[17] - The company's profit attributable to owners for the year was RM 386, significantly lower than RM 18.9 million in 2019, with basic earnings per share dropping to 0.07 sen from 4.02 sen[17] - Revenue from printable apparel decreased by approximately RM 62.5 million or 39.9% to RM 94.1 million, attributed to a 43.2% drop in sales volume due to the pandemic[27] - Revenue from gift products fell by RM 6.2 million or 28.7% to RM 15.4 million, with a sales volume decrease of approximately 29.0%[28] - The total employee costs for the year ended December 31, 2020, were approximately 18.9 million MYR, down from about 21.4 million MYR in 2019[40] - As of December 31, 2020, cash and cash equivalents increased to approximately 66,100,000 MYR from about 36,500,000 MYR in 2019[34] Impact of COVID-19 - The decline in revenue was primarily due to the impact of COVID-19, which led to business suspensions in Malaysia and Singapore from March 18 to May 3, 2020, and from April 7 to June 1, 2020[23] - The group experienced significant operational disruptions due to the COVID-19 pandemic, including business closures and negative impacts on demand for printed apparel and gift products[52] - The company anticipates challenges in the current fiscal year 2021 due to the ongoing pandemic, affecting its business objectives[52] Cost Management - Sales and distribution expenses decreased by about 26.8% to approximately RM 6.0 million, down from RM 8.2 million in 2019, mainly due to reduced sales turnover[29] - Administrative and other operating expenses decreased by approximately 100,000 MYR or 1.0% to about 14,000,000 MYR from last year's approximately 14,100,000 MYR[30] - Financing costs reduced by approximately 200,000 MYR or 66.7% to about 100,000 MYR due to a decrease in interest-bearing borrowings and actual interest rates[32] - Income tax expenses decreased by approximately 4,100,000 MYR or 52.6% to about 3,700,000 MYR, primarily due to a reduction in profit before tax[33] Strategic Developments - The company successfully listed on the Hong Kong Stock Exchange on July 8, 2020, marking a significant milestone for future development[21] - The group plans to enhance and improve storage capacity to expand market share and improve logistics processes following the completion of its initial public offering[35] - The group has committed to purchasing a plot of land in Johor Bahru, Malaysia, for approximately 23,600,000 MYR, with a 20% deposit already paid[47] - The net proceeds from the global offering amounted to approximately 60,300,000 HKD, with planned allocations for enhancing storage capacity, marketing efforts, and establishing new distribution centers[48] Governance and Compliance - The board of directors has confirmed compliance with corporate governance standards, ensuring transparency and accountability in operations[71] - The company established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee to enhance governance[85] - The Audit Committee consists of three independent non-executive directors and is responsible for reviewing financial information and ensuring compliance with accounting standards[87] - The company has established a code of conduct applicable to employees and directors to uphold ethical standards[89] - The company’s governance policies and practices are regularly reviewed to ensure compliance with legal and regulatory requirements[89] Risk Management - The company has established a credit risk management system, only extending credit to customers with good credit records after careful assessment of their financial status[141] - The company monitors and maintains sufficient levels of cash and cash equivalents to manage liquidity risk and reduce cash flow volatility[143] - The company is exposed to foreign currency risk due to foreign currency transactions and borrowings, and it actively manages and monitors this risk[145] - The company faces interest rate risk primarily related to floating interest bank balances and borrowings, with management monitoring this risk and considering hedging when necessary[147] Shareholder Relations - The company has established multiple communication channels with shareholders and the public to provide updates on developments and financial performance[131] - The board will consider various factors, including actual and expected financial performance, when deciding on dividend declarations[118] - The company did not declare any interim dividends for the year[137] - The board does not recommend the payment of a final dividend for the year to shareholders[138] Future Outlook - The company is expanding its market presence in Southeast Asia, targeting a market share increase of EE% by the end of the next fiscal year[68] - Recent acquisitions are expected to enhance operational efficiency, with projected cost savings of $FF million annually[68] - The company is investing $GG million in R&D to develop new technologies aimed at improving product offerings and customer satisfaction[68] - A strategic partnership has been established with a leading firm to enhance distribution channels, expected to increase sales by HH%[68] Stock Options and Director Interests - The stock option plan is valid for ten years from the listing date, after which no additional options will be granted[167] - The total number of shares that may be issued upon full exercise of options under the stock option plan is capped at 10% of the issued shares as of the listing date, equating to 62.8 million shares[159] - Directors hold a total of 471,000,000 shares, representing 75% of the company's equity[180] - The company has not granted, exercised, canceled, or allowed any stock options to lapse under the stock option plan as of December 31, 2020[161]
大人国际(01957) - 2020 - 年度财报