Business Segments Performance - The healthcare and medical segment generated revenue from hospital operations and club services, with a focus on expanding hospital operations in other cities and provinces in China [12]. - The company sold its club business to reduce operational losses and concentrate resources on hospital operations due to the impact of COVID-19 and weak consumer market [12]. - The beauty and fitness segment's performance remained sluggish in 2020, attributed to changes in consumer behavior during the pandemic, leading to a significant decline in service industry [13]. - The integrated financial services segment, through Green Securities Limited, has been operating at a loss for several years, with no revenue generated from Green Asset Management Limited [13]. - The healthcare and medical business generated revenue of approximately HKD 38,434,000 with an operating loss of HKD 12,883,000, compared to HKD 43,863,000 and HKD 49,978,000 in 2019 respectively [23]. - The beauty and fitness business recorded revenue of approximately HKD 27,054,000 and an operating loss of HKD 22,106,000, down about 22% from HKD 34,754,000 in 2019 [24]. - The group’s integrated financial business generated revenue of approximately HKD 44,000 and an operating loss of HKD 3,865,000, compared to HKD 42,000 and HKD 4,265,000 in 2019 [26]. Financial Performance - The overall business performance was affected by the global outbreak of COVID-19 and the weak consumer market in China [11]. - The total revenue for the year was approximately HKD 65,532,000, a decrease of about 16.69% compared to HKD 78,659,000 in 2019 [21]. - The net loss for the year was approximately HKD 61,312,000, an improvement from a net loss of HKD 151,997,000 in 2019 [35]. - Administrative expenses decreased by approximately 28.76% to HKD 45,790,000 from HKD 64,279,000 in 2019, primarily due to cost-saving measures in response to the pandemic [27]. - The goodwill impairment loss for the hospital business was approximately HKD 2,162,000, significantly lower than HKD 25,692,000 in 2019 [28]. - The group’s financing costs netted approximately HKD 6,381,000, down from HKD 11,225,000 in 2019 [34]. Shareholder Information - The company expressed gratitude to shareholders and investors for their support during the challenging year [9]. - The board did not recommend any dividend payment for the year, consistent with the previous year [56]. - The company reported zero dividends for the fiscal year 2020, consistent with 2019 [78]. - The company’s distributable reserves for shareholders were zero as of December 31, 2020, and 2019 [85]. - The company has not recommended any final dividends for the fiscal year 2020 [78]. Corporate Governance - The board consists of 3 executive directors, 2 non-executive directors, and 3 independent non-executive directors, ensuring a balanced distribution of expertise [137]. - The board held a total of 12 meetings during the year, with attendance rates for executive directors ranging from 50% to 100% [157]. - The company has established procedures for directors to seek independent advice at the company's expense when necessary [136]. - The company has arranged appropriate liability insurance for its directors and senior management, with annual reviews of coverage [151]. - The board is responsible for ensuring compliance with corporate governance policies and regulations, with ongoing training for directors [140]. - All current independent non-executive directors have confirmed their independence in writing, meeting regulatory requirements [143]. - The company’s financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and relevant regulations [155]. - The Audit Committee consists of three independent non-executive directors, ensuring oversight of financial reporting and compliance [161]. - The Audit Committee held four meetings during the year, with full attendance from all members [167]. - The Remuneration Committee reviewed and approved the remuneration policies for executive directors and senior management, ensuring alignment with performance [169]. - The Remuneration Committee convened two meetings during the year, with all members present [173]. - The Nomination Committee conducted three meetings, focusing on the selection standards and diversity policies for board members [179]. Risk Management and Compliance - The company is committed to effective risk management and internal controls to protect shareholder interests and assets [181]. - The company has established a comprehensive internal review process to enhance asset protection and compliance measures [181]. - The audit committee, consisting of three independent non-executive directors, reviewed the financial statements and confirmed compliance with applicable accounting standards [125]. - The company has established an internal audit function with the assistance of an external consultant to review risk management and internal control systems [130]. Share Capital and Financing - The company issued 176,470,588 shares at a principal amount of HKD 120,000,000 on March 23, 2020, to bondholders of convertible bonds [15]. - The 2018 convertible bonds were fully redeemed in cash by bondholders in April 2020 [18]. - The group issued and allotted 1,649,736,733 ordinary shares at a subscription price of HKD 0.06 per share on December 16, 2020 [19]. - As of December 31, 2020, the total issued shares were 3,299,473,466 [104]. - The debt-to-equity ratio was approximately 62% as of December 31, 2020, significantly improved from 142% in the previous year [41]. Assets and Liabilities - As of December 31, 2020, the total assets of the group were approximately HKD 283.98 million, a decrease from HKD 305.38 million as of December 31, 2019 [39]. - The group's liabilities as of December 31, 2020, were approximately HKD 83.41 million, down from HKD 129.22 million in the previous year, resulting in a leverage ratio of approximately 29.4% [39]. - The current ratio improved to approximately 2.42 as of December 31, 2020, compared to 1.17 on December 31, 2019, indicating better liquidity [39]. - Cash and bank balances, including trust and independent accounts, were approximately HKD 141.73 million as of December 31, 2020, compared to HKD 135.20 million in the previous year [40]. Environmental and Social Responsibility - The company emphasizes environmental protection and has implemented green office measures to promote sustainability [120]. Communication and Investor Relations - The company maintains communication with shareholders through various channels, including financial reports and announcements on its website and the stock exchange [198]. - The company encourages investor relations and communication with shareholders and potential investors, providing contact information for inquiries [200].
格林国际控股(02700) - 2020 - 年度财报