Financial Performance - For the fiscal year ending September 30, 2020, the group's revenue was approximately HKD 252.8 million, a decrease of about HKD 125.7 million or 33.2% compared to the previous fiscal year[16]. - The group's gross profit for the fiscal year decreased by approximately HKD 8.0 million, while the gross profit margin increased from 16.1% in the previous fiscal year to 21.0% due to strict cost control measures[16]. - Total profit and comprehensive income increased by approximately HKD 1.5 million, influenced by a decrease in gross profit of about HKD 8.0 million, a reduction in impairment provisions of HKD 4.6 million, a decrease in administrative expenses of about HKD 2.3 million, and an increase in other income of approximately HKD 3.3 million[20]. - The group recorded other income of approximately HKD 5.9 million, an increase of about HKD 3.3 million compared to the fiscal year 2019, primarily due to government subsidies from the "Employment Support" scheme affected by COVID-19[17]. - The group had no bank borrowings as of September 30, 2020, compared to HKD 4.6 million in 2019[23]. - The company did not recommend the payment of a dividend for the fiscal year ending 2020, consistent with the previous year where no dividend was paid[86]. - As of September 30, 2020, the company's distributable reserves were approximately HKD 96.5 million, which includes share premium and share option reserves after deducting accumulated losses[91]. Business Diversification and Strategy - The group focused on three major projects, contributing approximately HKD 213.3 million, which accounted for 87.3% of the total revenue from the electromechanical engineering services business[14]. - The group has begun diversifying its business by engaging in electrical equipment trading with state-owned enterprises in China[10]. - The group acquired a retail store in Hong Kong to generate rental income as part of its property investment strategy[10]. - The group is exploring opportunities in the biotechnology sector by registering and developing a new drug in China[10]. - The group aims to continue participating actively in construction infrastructure projects in Hong Kong through strategic partnerships[10]. - The group plans to diversify its business to mitigate risks and maximize shareholder returns, particularly in light of global trade tensions and the COVID-19 pandemic[33]. - In June 2020, the group acquired several commercial properties for investment purposes to diversify its income sources through property investment and rental income[33]. - The group purchased exclusive development, production, and distribution rights for the drug Ad-SGE-REIC/dkk-3 in the Greater China region, marking an entry into the biomedical field[33]. Corporate Governance - The board of directors has complied with the listing rules requiring at least three independent non-executive directors, with at least one possessing appropriate professional qualifications in accounting or related financial management[41]. - All independent non-executive directors have submitted annual confirmation letters regarding their independence, and the company believes they are all independent individuals[41]. - The attendance rate for board meetings was 100% for all executive directors, with each attending 14 out of 14 meetings[47]. - The nomination committee held two meetings during the year to review the board's structure and assess the independence of independent non-executive directors[54]. - The remuneration committee held one meeting to review the remuneration policy and structure for all directors and senior management[55]. - The company encourages all directors to participate in continuous professional development to enhance their knowledge and skills[49]. - The board is responsible for establishing and reviewing corporate governance policies and practices[51]. - The company has adopted a board diversity policy, considering various factors to achieve sustainable and balanced development[52]. Risk Management and Compliance - The Risk Management Committee held one meeting during the year to oversee the risk management framework and review risk reports, ensuring effective risk control measures[56]. - The Audit Committee reviewed the consolidated financial statements for the fiscal year ending September 30, 2020, and discussed risk management and internal control systems[58]. - The internal audit function assessed the effectiveness of the risk management and internal control systems, reporting findings and improvement recommendations to the Audit Committee and Board[63]. - The company confirmed compliance with applicable laws and regulations regarding timely disclosure of inside information and established mechanisms for identifying and maintaining confidentiality of such information[64]. - The Board is responsible for preparing financial statements that fairly reflect the group's financial position and performance, adhering to relevant regulatory requirements and accounting standards[65]. Environmental, Social, and Governance (ESG) Initiatives - The company has achieved ISO 14001:2015 certification for its environmental management system, demonstrating its commitment to systematic environmental protection measures[157]. - The company reported no significant violations of environmental laws and regulations during the reporting period, including the Noise Control Ordinance and Waste Disposal Ordinance[158]. - The company is focused on optimizing and improving the disclosure methods for key performance indicators related to ESG[140]. - The company has established appropriate and effective management policies and internal control systems for ESG matters during the reporting period[155]. - The company actively engages with stakeholders through various channels to understand and address their concerns regarding ESG issues[152]. - The company emphasizes environmental protection and compliance with applicable environmental laws and regulations in its operations[157]. - The company implemented measures to reduce direct greenhouse gas emissions from fuel consumption, including optimizing vehicle routes and using low-sulfur fuel[163]. Employee Management and Development - The company employed 138 staff members as of September 30, 2020, down from 297 in the previous year, including 75 long-term employees and 63 short-term employees[162]. - The company provides competitive compensation to attract and motivate employees, regularly reviewing and adjusting salaries according to market standards[97]. - The company has established objective performance indicators for annual employee evaluations, which influence salary adjustments[185]. - The company encourages employee participation in personal and professional training to adapt to new technologies and equipment[196]. - Training programs are regularly updated to align with changing stakeholder needs, including legal regulations and market trends[197]. - The company is committed to maintaining a safe working environment, aiming for zero incidents and accidents through established safety policies and procedures[189]. - The company has achieved OHSAS 18001:2007 certification for its occupational health and safety management system[189]. - Regular internal audits are conducted to assess the effectiveness and compliance of the occupational health and safety management system[191]. Shareholder and Market Information - The company maintains effective communication with shareholders and investors, providing comprehensive information on operational and financial performance through annual and interim reports[69]. - Shareholders holding at least 10% of the paid-up capital have the right to request the Board to convene a special general meeting within two months of the request[70]. - There were no significant changes to the company's articles of association during the fiscal year ending September 30, 2020[72]. - The group reported that the top five customers accounted for approximately 96.6% of total revenue in the fiscal year 2020, down from 99.5% in 2019, with the largest customer representing 39.6% of total revenue compared to 54.6% in 2019[95]. - The top five suppliers accounted for about 43.0% of total material costs in fiscal year 2020, up from 37.3% in 2019, with the largest supplier accounting for 11.7% of material costs compared to 9.8% in 2019[96]. - The top five subcontractors represented 98.6% of total subcontracting fees in fiscal year 2020, an increase from 96.7% in 2019, with the largest subcontractor accounting for 65.1% of subcontracting fees compared to 58.6% in 2019[96].
高丰集团控股(02863) - 2020 - 年度财报