Financial Performance - The Group's total revenue for 2020 was approximately HK$787.4 million, a decrease of approximately 37.1% compared to HK$1,251.1 million in 2019[26]. - Gross profit for the year was approximately HK$193.7 million, with a gross profit margin of approximately 24.6%, down from 25.0% in 2019[26]. - Profit attributable to equity holders of the Company was approximately HK$73.7 million, compared to HK$127.2 million in 2019[27]. - Basic earnings per share were approximately HK11.89 cents, down from HK20.52 cents in 2019[27]. - Revenue for the year ended December 31, 2020, was approximately HK$787.4 million, a decrease of about HK$463.7 million or approximately 37.1% from HK$1,251.1 million for the year ended December 31, 2019[57]. - Other income for the year ended December 31, 2020, was approximately HK$7.6 million, an increase of approximately HK$2.7 million or 55.1% from HK$4.9 million in 2019[65]. - Selling and distribution costs for the year ended December 31, 2020, were approximately HK$8.5 million, a decrease of approximately HK$2.9 million or 25.4% from HK$11.4 million in 2019[65]. - Administrative and other operating expenses for the year ended December 31, 2020, were approximately HK$96.2 million, a decrease of approximately HK$39.2 million or 29.0% from HK$135.4 million in 2019[68]. Capital Expenditure and Investments - Capital expenditure for the year amounted to approximately HK$116.2 million, including HK$49.0 million for new machines and HK$52.7 million for new factory premises[33]. - The new factory is expected to be completed in May 2021, enhancing research and development capabilities and accommodating automated production lines[38]. - The Group did not make any material acquisitions or disposals of subsidiaries and associated companies for the year ended December 31, 2020[72]. - There are no plans for material investments or increases in capital assets beyond the construction of a new factory in Huizhou, expected to be completed in May 2021[89]. Cash and Debt Management - The Group currently has sufficient cash on hand and available banking facilities to meet its business needs[34]. - As of December 31, 2020, cash and cash equivalents were approximately HK$117.0 million, an increase from HK$85.6 million in 2019[70]. - The group's interest-bearing borrowings amounted to approximately HK$230.0 million, up from HK$119.6 million in 2019, with a weighted average effective interest rate of 3.34% compared to 4.13% in 2019[74]. - The debt-to-equity ratio as of December 31, 2020, was 44.5%, an increase from 39.8% in 2019[74]. Environmental Performance - The Group's total greenhouse gas (GHG) emissions decreased from 18,036.54 tonnes CO2 equivalent in 2019 to 17,165.18 tonnes CO2 equivalent in 2020, representing a reduction of approximately 4.8%[113]. - Vehicle emissions were reduced from 115 tonnes CO2 equivalent in 2019 to 73 tonnes CO2 equivalent in 2020, a decrease of about 36.5%[114]. - Emissions from flights dropped significantly from 27 tonnes CO2 equivalent in 2019 to 4 tonnes CO2 equivalent in 2020, a reduction of approximately 85.2%[114]. - Nitrogen oxides (NOx) emissions decreased from 100.35 kg in 2019 to 44.45 kg in 2020, a reduction of about 55.8%[111]. - Sulphur oxides (SOx) emissions fell from 0.63 kg in 2019 to 0.40 kg in 2020, a decrease of approximately 36.5%[111]. - The Group's GHG emissions for Scope 1 decreased from 222.66 tonnes CO2 equivalent in 2019 to 139.11 tonnes CO2 equivalent in 2020, a reduction of about 37.5%[113]. - GHG emissions for Scope 2 also saw a decline from 17,650.99 tonnes CO2 equivalent in 2019 to 16,902.06 tonnes CO2 equivalent in 2020, a decrease of approximately 4.2%[113]. - The Group has established an environmental management system in accordance with ISO 14001:2015 to monitor and improve environmental performance[108]. - The Group's operations complied with all national and local environmental laws and regulations during the reporting period[108]. Workforce and Employee Management - The Group's workforce decreased to 1,030 employees as of December 31, 2020, down from 1,168 in 2019, representing a reduction of approximately 11.8%[141]. - The gender distribution of employees shows 575 males and 455 females in 2020, compared to 699 males and 469 females in 2019, indicating a decrease in both categories[142]. - The total number of management staff decreased from 147 in 2019 to 137 in 2020, reflecting a reduction of approximately 6.8%[142]. - The Group recorded 9 work-related injuries in the reporting period, a decrease from 13 in 2019, with a total of 552 lost working hours compared to 541 hours in 2019[154]. - The Group provided training to 1,435 staff in 2020, an increase from 1,233 in 2019, with total training hours amounting to 11,879 hours, down from 12,776 hours in 2019[160]. - The percentage of employees trained by gender shows 54% male and 46% female in 2020, compared to 57% male and 43% female in 2019[164]. - The Group emphasizes a clean and tidy working environment, ensuring proper ventilation and sanitation measures are in place[154]. Corporate Governance and Compliance - The Group strictly adheres to local labor laws and regulations, with no reported non-compliance during the reporting period[146]. - The Group has implemented "Procedures on Information Exchange" to ensure product quality and safety responsibilities are clearly defined[177]. - The Group has not been aware of any complaints or non-compliance related to intellectual property rights during the reporting period[176]. - The Group emphasizes high moral standards and integrity from employees and business partners, with regular anti-corruption training provided[181]. - The Group has a zero-tolerance policy towards any dishonesty and unethical business behaviors, with immediate penalties for violations[182]. - The Group strictly complies with relevant laws and regulations regarding anti-corruption and anti-money laundering[181]. Community Engagement and Social Responsibility - The Group sponsored disposable face masks to charitable institutions during the reporting period, demonstrating its commitment to community involvement[184]. - The Group aims to fulfill its social responsibility through active community engagement and support[184]. - The Group will continue to participate in more charitable activities and allocate more resources to social and environmental protection[185]. Management Team - Mr. Hung Chun Leung has approximately 20 years of experience in legal matters, including conveyancing and commercial contracts, and has been with the Group since February 2018[196]. - Mr. Chan Bing Kai has over 40 years of experience in the electronic products manufacturing industry and co-founded a company specializing in audio and LED products, joining the Group in February 2018[197]. - Mr. Wu Chi Wai has over 15 years of experience in auditing, accounting, and corporate management, and has been with the Group since May 2019[198].
天长集团(02182) - 2020 - 年度财报