Financial Performance - For the year ended December 31, 2019, the company recorded a net profit of approximately HKD 54,500,000, a significant increase from a net loss of HKD 9,100,000 in the same period of 2018[22]. - The total revenue for the year ended December 31, 2019, was HKD 1,466,300,000, an increase of 35.7% compared to HKD 1,080,500,000 for the year ended December 31, 2018[36]. - The total expenses increased from HKD 1,043,800,000 to HKD 1,411,500,000, primarily due to significant growth in the supply chain business[37]. - The group reported a total debt of approximately HKD 461.6 million as of December 31, 2019, an increase from HKD 323.9 million in 2018[101]. - The company recorded a net profit of approximately HKD 54,500,000 for the year ended December 31, 2019, compared to a net loss of approximately HKD 9,100,000 for the previous year[38]. Business Operations - The supply chain business generated revenue of HKD 1,445,400,000, an increase of HKD 399,800,000 compared to the corresponding period in 2018, primarily due to the expansion of credit terms in the supply chain of non-ferrous metals and construction materials[27]. - The company aims to expand its supply chain and leasing businesses, targeting high-value and reputable clients[23]. - The company has diversified its business risks by exploring opportunities in supply chain, leasing, lending, securities investment, and property investment since 2017[21]. - The supply chain business provides value-added services, including inventory management and logistics support, to enhance revenue sources[27]. - The company has shifted its focus from garment business to supply chain and leasing operations following the sale of its garment business[26]. Corporate Governance - The board consists of eight directors, including three executive directors, two non-executive directors, and three independent non-executive directors as of December 31, 2019[161]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standard code for the year ending December 31, 2019[158]. - The independent non-executive directors have confirmed their independence, and at least one possesses appropriate professional qualifications or financial management expertise[164]. - The board is responsible for reviewing and supervising the group's financial and business performance, aiming to provide higher returns to shareholders[162]. - The company has established a diversity policy for the Board, considering various factors such as gender, age, and professional experience[183]. Risk Management - The company will closely monitor the impact of the COVID-19 pandemic on its business and financial performance[23]. - Management will remain prudent in safeguarding resources amid uncertainties from the US-China trade dispute and the COVID-19 outbreak, aiming for steady growth[70]. - The Audit Committee monitored the effectiveness of internal controls and risk management systems[172]. - The company has established internal monitoring procedures for handling and disclosing inside information to comply with listing rules and regulations[196]. - The board confirmed the effectiveness of the internal control and risk management systems based on the recommendations from the external professional and the audit committee's opinions[196]. Employee and Shareholder Information - The total employee cost for the year was approximately HKD 14,700,000, representing 1.0% of the group's revenue[63]. - The group had approximately 40 employees as of December 31, 2019, a decrease from about 510 employees in 2018[63]. - The management expresses gratitude to shareholders, customers, suppliers, and employees for their support and contributions[24]. - All directors attended the annual general meeting, demonstrating commitment to shareholder engagement[167]. - The company did not declare any dividends for the year ended December 31, 2019, consistent with the previous year[95]. Investments and Financial Assets - The fair value of financial assets measured at fair value through other comprehensive income was HKD 238,660,000 as of December 31, 2019, compared to HKD 85,768,000 in 2018[52]. - The group has no significant investments as of December 31, 2019, with the fair value of other listed shares being less than 1% of total assets[60]. - The financing lease receivables amounted to HKD 74,900,000 as of December 31, 2019, with recognized income of HKD 8,500,000 for the year[28]. - The lending business reported receivables of HKD 15,000,000, with recognized income of HKD 7,600,000 for the year, and a return rate between 8% and 12%[30]. - Rental income from investment properties in Yunfu, China, was HKD 4,900,000, with a fair value of HKD 191,100,000 as of December 31, 2019[29]. Related Party Transactions - The company engaged in several related party transactions, which are disclosed in the consolidated financial statements[107]. - The independent non-executive directors confirmed that the related party transactions were conducted in the ordinary course of business and on normal commercial terms[114]. - The company has complied with the disclosure requirements under the relevant listing rules regarding related party transactions[113]. - The company has not entered into any management contracts regarding the management and administration of any part of its key business during the period[121]. - There were no significant transactions, arrangements, or contracts in which directors or their related entities had a substantial interest during the year ended December 31, 2019[119]. Future Outlook - The company plans to continue focusing on potential collaboration opportunities in the construction, new economy, entertainment, and renewable energy sectors[28]. - The group aims to increase revenue growth and profitability by expanding product variety, enhancing marketing efforts, and broadening the customer base[70]. - The group will continue to adopt a cautious approach in property investment, lending, and securities investment to maintain the current scale of these businesses[70]. - The COVID-19 pandemic has significantly impacted the group's performance this year, affecting economic and business operations in China[70]. - The company will continue to appoint external independent professionals to review its internal controls and risk management systems[196].
百德国际(02668) - 2019 - 年度财报