Financial Performance - The company recorded a revenue of approximately HKD 722,214,000 for the year ended December 31, 2020, representing a 19% increase compared to HKD 608,698,000 in the previous year[11]. - Gross profit for the year was approximately HKD 125,980,000, up 17% from HKD 107,375,000 year-on-year[11]. - The net profit attributable to the owners of the company reached approximately HKD 22,904,000, with basic earnings per share at about HKD 0.42, down from HKD 0.48 in 2019[11]. - Total comprehensive income for the year was HKD 42,385,000, significantly higher than HKD 17,778,000 in 2019[165]. - The company reported a pre-tax profit of HKD 38,299,000 for 2020, down from HKD 47,925,000 in 2019, reflecting a decrease of approximately 20% year-over-year[177]. Cash and Liquidity - Cash and cash equivalents as of December 31, 2020, amounted to approximately HKD 350,626,000, significantly up from HKD 109,248,000 in 2019[11]. - The company’s cash and cash equivalents increased to HKD 350,626,000 at the end of 2020, up from HKD 109,248,000 at the end of 2019, marking a growth of approximately 221%[179]. - The net cash increase for the year was HKD 223,191,000, compared to an increase of HKD 67,595,000 in 2019, indicating a stronger liquidity position[179]. Debt and Liabilities - The company’s debt net amount increased to approximately HKD 1,747,924,000 from HKD 1,397,875,000 in the previous year[22]. - Total liabilities increased to HKD 1,541,847,000 from HKD 1,423,976,000, representing a rise of 8.3%[168]. - The company recorded net current liabilities of approximately HKD 359,661,000 as of December 31, 2020, raising significant doubts about its ability to continue as a going concern[144]. Business Segments - The digital video business recorded a revenue of approximately HKD 373,456,000 for the year ended December 31, 2020, representing an increase of about 5% from HKD 355,363,000 in 2019[33]. - The new energy vehicle business generated revenue of approximately HKD 209,422,000 for the year ended December 31, 2020, up from HKD 192,609,000 in 2019[34]. - The cloud ecosystem big data business recorded revenue of approximately HKD 23,458,000 for the year ended December 31, 2020, a decrease of about 7% from HKD 25,169,000 in 2019[34]. - The property investment business achieved revenue of approximately HKD 19,105,000 for the year ended December 31, 2020, an increase of about 18% from HKD 16,202,000 in 2019[35]. Corporate Governance - The board believes that corporate governance is key to the company's success and has taken measures to maintain high levels of governance to protect the interests of shareholders, investors, customers, and employees[47]. - The company has complied with the corporate governance code, except for certain deviations explained in the report[47]. - The board consists of five members, including three independent non-executive directors, achieving the diversity policy goal[62][63]. - The company has established a governance framework to review compliance with legal and regulatory requirements[75]. Risk Management - The company actively monitors risks related to the new energy vehicle business, including economic and regulatory changes[113]. - The company has established measures to mitigate legal and compliance risks by seeking professional legal advice and conducting compliance reviews for new business activities[124]. - The company has implemented procedures to prevent unauthorized use or sale of assets and ensure accurate accounting records[81]. Shareholder Information - Major shareholder Alpha Century Assets Limited holds 600,000,000 shares, representing 10.96% of the total issued shares[98]. - The largest customer accounted for 25% of total sales, while the top five customers represented 69% of total sales in 2020[110]. - The company reported a public float of at least 25% of its issued shares, complying with listing rules[97]. Audit and Compliance - The audit committee held three meetings during the year to review audited financial statements and internal control systems[66]. - The independent auditor has reviewed the consolidated financial statements for the year ending December 31, 2020, and will be proposed for reappointment at the upcoming annual general meeting[140]. - The company has no evidence of violations of relevant laws and regulations that would have a significant impact on its operations as of December 31, 2020[137]. Environmental and Social Responsibility - The company has implemented various measures to promote environmental protection, including double-sided printing and energy-saving practices[136].
久融控股(02358) - 2020 - 年度财报