Financial Performance - The company's revenue decreased by 32% to HKD 112.7 million for the year ended December 31, 2020, compared to HKD 165.7 million in 2019[26]. - Gross profit was HKD 55.2 million, with a gross margin of 49%, down from 55% in 2019[30]. - The company reported a loss of HKD 20.2 million for the year, compared to a loss of HKD 8.3 million in 2019[30]. - Basic loss per share was HKD 0.06329, compared to HKD 0.02584 in 2019[30]. - Total operating expenses decreased by 21% to HKD 78.5 million, primarily due to a reduction in employee costs[33]. - The fintech and smart living segment recorded revenue of HKD 112.7 million in 2020, a decrease of 32% from HKD 165.7 million in 2019 due to the impact of COVID-19[38]. - The group terminated its financial services and investment segment as of March 31, 2020, resulting in no revenue and minimal expenses of HKD 28,000 during the year[39]. - The net cash inflow from operating activities for the year was HKD 19.1 million, a decrease from HKD 25.5 million in the previous year due to a decline in financial performance and reduced cash receipts from customers[50]. - The net cash outflow from investing activities was HKD 6.1 million, up from HKD 3.8 million in the previous year, attributed to increased capital expenditures on development projects[50]. - The group recorded a net cash outflow from financing activities of HKD 4.3 million, consistent with the previous year, primarily due to lease payments[50]. Assets and Liabilities - Intangible assets decreased by 43% to HKD 17.5 million, mainly due to amortization and impairment losses[34]. - Accounts receivable decreased by 58% to HKD 8.7 million, reflecting strict control over receivables[34]. - As of December 31, 2020, the group's cash and cash equivalents amounted to HKD 54.4 million, an increase from HKD 45.4 million as of December 31, 2019[50]. - The net asset value of the group as of December 31, 2020, was HKD 101.3 million, down from HKD 118.8 million as of December 31, 2019[50]. - The total employee cost recognized in the profit and loss statement was HKD 39.7 million, down from HKD 54.3 million in the previous year, reflecting a reduction in the workforce from 178 to 126 full-time employees[57]. Market and Product Development - The company plans to optimize product structure and innovate product functions in response to market trends[27]. - The company plans to launch an upgraded version of its in-vehicle device (ACR350) in the second half of 2021, which will have more features than the current version (ACR330)[40]. - The development costs for new products and services increased by HKD 3.9 million in 2020, up from HKD 0.7 million in 2019, primarily due to the development of the ACR350 product[48]. - The company aims to maintain competitive advantages through technology application upgrades and comprehensive product development[27]. Economic Outlook and Challenges - Economic outlook for 2021 remains uncertain, but the company anticipates gradual recovery with the rollout of vaccines[27]. - The adverse macroeconomic environment and the US-China trade conflict present ongoing challenges for the company[40]. - The company faces risks related to rapid technological changes and evolving industry standards, which could adversely affect performance and growth prospects[47]. Corporate Governance - The board believes that good corporate governance is essential for protecting shareholder interests and enhancing group value[77]. - The company has adhered to the corporate governance code as per the Stock Exchange's listing rules for the year ending December 31, 2020[77]. - The board is responsible for the group's performance and business, setting strategic directions and monitoring senior management's performance[78]. - The board has established committees to delegate responsibilities and ensure effective oversight of the company's operations[79]. - The company has a strong focus on risk management and compliance, with over 16 years of experience in these areas among its directors[75]. - The company is committed to continuous improvement in corporate governance practices to enhance efficiency and effectiveness[77]. - The board regularly reviews its plans to ensure they align with the group's needs[79]. - The company has a diverse board with members holding advanced degrees and extensive experience in finance and technology[71][72][75]. - The board consists of five executive directors, one non-executive director, and three independent non-executive directors, with independent directors making up one-third of the board[81]. - The company has adopted a trading policy for directors that complies with the standards set out in the listing rules, confirming adherence for the year ending December 31, 2020[84]. Shareholder Engagement - The company aims to provide all shareholders with equal opportunities to exercise their rights and actively participate in the company's business[134]. - The company held its annual general meeting, allowing shareholders to communicate directly with the board and exercise their voting rights[135]. - The board of directors and key executives attended the 2020 annual general meeting, with a 100% attendance rate from executive directors[145]. - The company emphasizes effective communication with shareholders to enhance investor relations and ensure timely disclosure of information[143]. - The company has established an official website to provide the public with easy access to business operations, financial data, and corporate governance information[145]. Corporate Social Responsibility - The company is committed to corporate social responsibility, focusing on the development, sales, and distribution of smart card products and related services in China, Hong Kong, and the Philippines[149]. - The environmental, social, and governance report outlines the company's management of significant operational issues and performance in these areas[148]. - The report period covers sustainable initiatives from January 1, 2020, to December 31, 2020[150]. - The company has taken measures to improve the disclosure of its corporate social responsibility performance[149]. - The company encourages feedback on its sustainable initiatives via email[151]. Environmental Impact - The company reported a total greenhouse gas emissions of 150.92 tons of CO2 equivalent for the year 2020, a decrease from 217.504 tons in 2019[177]. - The company achieved a reduction in Scope 2 greenhouse gas emissions due to effective implementation of energy-saving policies during the year[176]. - The company generated 0.66 kg of nitrogen oxides in Hong Kong and 4.68 kg in the Philippines for the year 2020, showing a decrease from 5.34 kg in 2019[174]. - The company has implemented waste management measures to reduce waste generation and its environmental impact, with no hazardous waste produced during the reporting period[180]. - The company fully complied with all relevant environmental laws and regulations in the countries where it operates during the reporting period[171]. - The company encourages a paperless office environment by promoting the use of emails over traditional mail[180]. - The total harmless waste generated in 2020 was 22.97 tons, a decrease from 30.715 tons in 2019, primarily due to the effective implementation of a paperless policy[183]. - The total energy consumption in 2020 was 281.35 MWh, down from 341.89 MWh in 2019, reflecting a reduction in electricity consumption due to COVID-19[192]. - Water consumption in 2020 was 1,072.24 cubic meters, a decrease from 1,514.60 cubic meters in 2019, attributed to effective water-saving strategies implemented in the Philippines[194]. - The total packaging materials consumed in 2020 was 103.52 tons, down from 153.276 tons in 2019, due to a decrease in sales of smart card products, software, and hardware[196]. Employee Relations - The company considers employees as important assets and aims to be the employer of choice[200]. - The human resources policies include recruitment, promotion, working hours, equal opportunities, compensation, and benefits[200]. - The company strictly adheres to labor laws in China, Hong Kong, and the Philippines, ensuring compliance with relevant employment regulations[200]. - The company prohibits child labor and any form of forced or compulsory labor in all business activities[200].
高维科技(02086) - 2020 - 年度财报