Financial Performance - Revenue decreased by 33.8% to approximately HK$1,353.1 million (2019: approximately HK$2,043.1 million) [11] - Gross profit decreased by 26.8% to approximately HK$363.5 million (2019: approximately HK$496.3 million) [11] - Operating profit is approximately HK$102.2 million (2019: approximately HK$126.4 million) [11] - Profit attributable to owners of the Company is approximately HK$79.0 million (2019: approximately HK$97.9 million) [11] - The Group recorded a total revenue of approximately HK$1,353.1 million for the year ended December 31, 2020, representing a 33.8% year-on-year decrease from approximately HK$2,043.1 million in 2019 [23] - Gross profit for the year ended December 31, 2020, was approximately HK$363.5 million, a decrease of 26.8% compared to HK$496.3 million in 2019, with a gross profit margin increase to 26.9% [27] - Profit attributable to owners of the Company for the year ended December 31, 2020, was approximately HK$79.0 million, down 19.3% from approximately HK$97.9 million in 2019 [27] - The Company’s basic earnings per share attributable to owners for 2020 was 13.5 HK cents, a decrease of 2.9% from 2019 [19] - The Company’s dividend per share for 2020 was 10.8 HK cents, down 20.0% compared to 2019 [19] Dividend Information - Proposed final dividend of HK1.5 cents per share, total dividend of HK2.5 cents per share (2019: HK4.5 cents per share) [11] - Annual dividend payout ratio decreased to 23.1% (2019: 33.3%) [11] - The proposed final dividend for the year ended 31 December 2020 is HK1.5 cents per share, down from HK3.0 cents per share for the year ended 31 December 2019, with total expected dividends of HK2.5 cents per share [51] - An interim dividend of HK1.0 cent per Share was paid, totaling approximately HK$7,343,000 on 5 October 2020 [151] - The Board recommends a final dividend of HK1.5 cents per Share for the year ended 31 December 2020, subject to Shareholders' approval [152] Business Segments - The hospitality supplies business contributed approximately HK$820.9 million, while the OS&E business and health care products contributed HK$112.9 million and HK$419.3 million, respectively, for the year ended December 31, 2020 [23] - Revenue from the hospitality supplies business was approximately HK$820.9 million, representing 60.7% of the Group's total revenue [38] - Revenue from the OS&E business was approximately HK$112.9 million, indicating a 32.9% decrease compared to HK$168.4 million in 2019, contributing 8.3% to the Group's total revenue [90] - The health care and hygienic products business recorded revenue of approximately HK$419.3 million, a significant increase from HK$131.2 million in 2019, contributing 31.0% to the Group's total revenue [103] Challenges and Future Outlook - Looking ahead, the Company anticipates continued uncertainties in 2021 due to the ongoing COVID-19 pandemic and geopolitical tensions, which may negatively impact its hospitality supplies and OS&E businesses [31] - The Group anticipates a substantial drop in revenue from the health care and hygienic products business in 2021 due to market saturation and fierce competition in disinfectant products [109] - The uncertainties in global markets, including the impact of COVID-19 and geopolitical tensions, are expected to pose challenges for the Group's business in 2021 [110] Strategic Initiatives - The Company plans to explore new business markets and enhance cost efficiencies through diversification of production bases to mitigate the negative impacts of the pandemic and geopolitical events [32] - The Group aims to enhance competitiveness by developing a production base in Cambodia to minimize production costs and improve manufacturing efficiencies [118] - The Group will focus on expanding market shares and product portfolios in different regions to maintain diversified business operations [119] Employee and Corporate Governance - The total number of employees was approximately 4,300 as of December 31, 2020, with employee benefit expenses amounting to approximately HK$341.2 million for the year [120] - The Group maintained healthy and safe workplaces for all employees, providing comprehensive benefit packages and career development opportunities [185] - The Group emphasizes corporate social responsibility (CSR) as a key agenda item, integrating environmental management into business planning and daily operations [179] Financial Position - Total assets as of December 31, 2020, were approximately HK$1,803.4 million [14] - Total equity increased to approximately HK$1,192.3 million as of December 31, 2020 [14] - Non-current liabilities increased to approximately HK$24.2 million as of December 31, 2020 [14] - The Group's net assets as at 31 December 2020 were approximately HK$1,192.3 million, compared to approximately HK$1,130.9 million as at 31 December 2019 [54] - The Group's distributable reserves amounted to approximately HK$1,019,262,000 as of December 31, 2020 [190] Risk Management - The company faces risks related to reliance on direct sales customers and distributors, which may affect future sales volumes [167][172] - Price fluctuations of raw materials pose a risk to the company's profitability if costs cannot be managed effectively [168][173] - Operational risks include potential defaults by customers and failures in internal processes, which could negatively impact results [169][174] - Market risks such as currency fluctuations and interest rate volatility are inherent in the company's business operations [170][175] - Compliance with laws and regulations is critical, as non-compliance could lead to significant fines and operational disruptions [176] Management Team - Mr. CHING Chi Fai has over 30 years of experience in the hospitality supplies industry and has been responsible for sales, marketing, and overall corporate direction since 2007 [126] - Mr. LIU Zigang oversees direct sales in the Greater China Region and Southeast Asia, with over 20 years of experience in the hospitality supplies industry [128] - Mr. CHING Tsun Wah, involved in business and product development since 2006, received the Young Industrialist Awards of Hong Kong in 2020 [129] - Mr. KEUNG Kwok Hung, the Chief Financial Officer, has over 20 years of experience in accounting and financial management, joining the Group in July 2010 [130] - Ms. CHAN Yim Ching has over 30 years of experience in the hospitality supplies industry and was an Executive Director from 2007 to 2015 [135] - Mr. HUNG Kam Hung Allan has over 30 years of senior management experience in hotel operations and investments, serving as an Independent Non-Executive Director since 2007 [136] - Mr. MA Chun Fung Horace is a seasoned accountant with extensive experience in risk and internal control, serving as an Independent Non-Executive Director since 2007 [137] - Mr. NG Bo Kwong has over 30 years of management experience across various industries, including hospitality supplies, and has been an Independent Non-Executive Director since 2013 [138] Corporate Social Responsibility - The Company has been actively involved in social responsibilities and public services in Hong Kong and China [144] - The Group is committed to sustainable development and environmental protection through scientific improvements and seeking environmental technologies [178] - The Group's environmental policies and performance details for 2020 will be published in the "Environmental, Social and Governance Report 2020" [180]
明辉国际(03828) - 2020 - 年度财报