Financial Performance - For the year 2020, the profit attributable to owners of the Company was HK$44,853,000, an increase of 39% from HK$32,252,000 in 2019[5]. - Revenue for 2020 was HK$311,835,000, up 10.6% from HK$282,037,000 in 2019[4]. - Basic earnings per share increased to HK9.34 cents in 2020 from HK6.72 cents in 2019[5]. - Total assets rose to HK$410,827,000 in 2020, compared to HK$341,924,000 in 2019, reflecting a growth of 20.1%[4]. - Total liabilities increased to HK$87,710,000 in 2020 from HK$42,710,000 in 2019, marking a significant rise of 105.5%[4]. - The Group's revenue increased by approximately 10.6% to approximately HK$311.8 million for the year ended 30 June 2020 compared to the previous year[17]. - Gross profit rose by approximately 13.4% from approximately HK$101.1 million for the year ended 30 June 2019 to approximately HK$114.7 million for the year ended 30 June 2020[17]. - Gross profit margin increased from approximately 35.9% in 2019 to approximately 36.8% in 2020[18]. - Profit for the year increased by approximately HK$12.6 million from approximately HK$32.3 million in 2019 to approximately HK$44.9 million in 2020[18]. - Net profit margin improved from approximately 11.4% for the year ended 30 June 2019 to approximately 14.4% for the year ended 30 June 2020[18]. Dividends - The Company proposed a total dividend of HK4.5 cents for 2020, up from HK3.5 cents in 2019, indicating a commitment to stable returns for shareholders[5]. - The Directors recommended a final dividend of HK3.5 cents per share, which, combined with an interim dividend of HK1 cent, totals HK4.5 cents per share for the current year[54]. Market Outlook and Strategy - Future market outlook remains uncertain due to ongoing trade disputes and the impact of COVID-19, with expectations of no immediate return to stability[5]. - The Group aims to adapt to changing market demands and seize opportunities in potential new markets for sustained growth[5]. - The Group plans to implement more stringent cost control measures to enhance production efficiency in response to market challenges[7]. - The Company is actively exploring advanced printing technologies and innovative materials to differentiate itself from competitors[7]. Revenue Breakdown - Revenue from packaging printing increased by approximately 4.2% to approximately HK$189.3 million for the year ended 30 June 2020[26]. - Revenue from paper gift set printing increased by approximately 13.8% to approximately HK$62.7 million for the year ended 30 June 2020 compared to HK$55.1 million for the year ended 30 June 2019[28]. - Revenue from card printing increased by approximately 11.5% to approximately HK$34.0 million for the year ended 30 June 2020 compared to the previous year[28]. - Revenue from smart package printing surged by approximately 210.9% to approximately HK$14.3 million for the year ended 30 June 2020 compared to 2019[28]. - Revenue from other printing services increased by approximately 13.8% to approximately HK$11.5 million for the year ended 30 June 2020 compared to 2019[28]. Expenses and Costs - Administrative expenses remained stable at approximately HK$60.0 million for the year ended 30 June 2020 compared to approximately HK$59.0 million for the year ended 30 June 2019[35]. - Selling and distribution expenses increased to approximately HK$5.1 million for the year ended 30 June 2020 from approximately HK$4.6 million for the year ended 30 June 2019[36]. - Direct labor costs amounted to approximately HK$29.6 million for the year ended 30 June 2020, compared to approximately HK$29.3 million for the year ended 30 June 2019[53]. - A provision for redundancy costs of approximately HK$10.3 million was recorded for the year ended 30 June 2020, while there was no such provision in 2019[53]. Capital Expenditure and Utilization - The Group recorded over HK$17.0 million in capital expenditure during the year, primarily for automation and equipment upgrades[46]. - Approximately HK$42.1 million has been utilized for equipment upgrades to improve the production process, HK$8.3 million for general working capital, and HK$0.2 million for consulting on the ERP system upgrade[63]. - The total amount utilized up to the report date is HK$50.6 million, with HK$73.4 million remaining unutilized[65]. Corporate Governance - The Company is committed to maintaining high standards of corporate governance practices and procedures[74]. - The Board of Directors consists of 7 members, including 4 Executive Directors and 3 Independent Non-executive Directors[76]. - All Independent Non-executive Directors have confirmed their independence according to the Listing Rules[83]. - The Nomination Committee is responsible for recommending candidates for directorship, with a majority of its members being Independent Non-executive Directors[85]. - The Board is accountable to shareholders and oversees the management of the Group's business and affairs[86]. - All Directors are covered by Director's & Officer's Liability Insurance as part of best practices[88]. - The attendance record of the directors at board meetings since June 30, 2019, shows a 100% attendance rate for all executive and independent non-executive directors[98]. Internal Controls and Audit - The Audit Committee assists the Board in maintaining an effective internal control system and reviews the risk assessment process[118]. - The Directors acknowledge their responsibility for preparing the financial statements in accordance with statutory requirements and applicable accounting standards[119]. - The overall financial, operational, and compliance controls, as well as risk management, are reported to be effective by the Board with the help of the Audit Committee[118]. - The Audit Committee reviewed the effectiveness of the Company's internal control and risk management systems during the year[148]. Environmental, Social, and Governance (ESG) - The Group's environmental, social, and governance (ESG) report covers the period from July 1, 2019, to June 30, 2020[172]. - The Group's ESG policies include minimizing environmental burden and prioritizing environmental and social issues[177]. - The air emissions from the PRC factory were reduced by approximately 20%, from 569 kg in FY2018/19 to 456 kg in FY2019/20[187]. - The emissions of nitrogen oxides (NOx), sulphur oxides (SOx), and respiratory suspended particles (RSP) were reduced by approximately 20%, 21%, and 20% respectively compared to FY2018/19[194]. - The company has implemented eco-friendly measures to enhance energy efficiency and reduce carbon footprint in its operations[187]. - The company integrates sustainability into its corporate culture and decision-making processes[180].
新兴印刷(01975) - 2020 - 年度财报