Financial Performance - The group faced significant operational losses in 2018 due to a decline in gross profit margins in the freight forwarding and logistics sectors, influenced by intense competition and economic uncertainties [7]. - Total revenue increased by approximately 4.5% from HKD 351.1 million in FY2017 to HKD 366.8 million in FY2018, primarily driven by increased air freight and logistics service revenues [13][14][16]. - The company reported a loss attributable to shareholders of approximately HKD 25.0 million in FY2018, compared to a profit of HKD 1.7 million in FY2017 [13]. - Gross profit decreased by approximately 48.5% from HKD 46.9 million in FY2017 to HKD 24.1 million in FY2018, with gross margin dropping from 13.4% to 6.6% [20]. - Sales costs increased by approximately 12.6% from HKD 304.3 million in FY2017 to HKD 342.7 million in FY2018, mainly due to rising air freight costs [18]. - The logistics segment reported a loss of HKD 320,000 in FY2018, compared to a profit of HKD 10.1 million in FY2017 [19]. - The company recorded a loss attributable to owners of approximately HKD 25.0 million for the fiscal year 2018, compared to a profit of approximately HKD 1.7 million in 2017, primarily due to decreased profit margins in freight forwarding and logistics services, as well as increased financing costs [26]. - The gross profit margin for the fiscal year 2018 was 6.6%, down from 13.4% in 2017 [171]. - The return on equity for the fiscal year 2018 was -39.2%, compared to 1.9% in 2017 [171]. - The net cash used in operating activities was HKD 9.1 million, a decrease from HKD 18.2 million in 2017 [171]. - Cash and cash equivalents at the end of fiscal year 2018 were HKD 5.6 million, down from HKD 7.0 million in 2017 [171]. E-commerce and Logistics Expansion - The group expanded its e-commerce business in the United States, contributing significantly to revenue growth in 2018 [7]. - Future plans include strengthening business relationships with large and well-known clients while expanding logistics services, particularly in Europe and U.S. e-commerce [8]. - The company is expanding its e-commerce business to capture increasing demand driven by cross-border logistics activities [13]. - The company plans to expand its e-commerce and fulfillment business and is looking for opportunities to set up different warehouses to enhance logistics operations in Asia [45]. - The company aims to become a major logistics service provider in the region, enhancing last-mile delivery times and streamlining e-commerce processes [45]. Operational Changes and Management - The group executed warehouse consolidation and upgraded warehouse management systems, which are expected to lead to rapid growth in storage capacity in the coming years [8]. - Administrative expenses increased by approximately 3.5% from HKD 42.9 million in 2017 to HKD 44.4 million in 2018, mainly due to higher employee costs [23]. - The company's financing costs, which include interest expenses on bank loans and finance leases, had an effective interest rate range of 3.26% to 3.83% for bank loans in 2018 [24]. - The current ratio decreased from 2.1 times in 2017 to 0.7 times in 2018, primarily due to a reduction in cash used for operations and an increase in bank borrowings [29]. - The company's operating lease commitments related to office and warehouse leases increased to approximately HKD 46.7 million in 2018 from HKD 22.9 million in 2017 [30]. - The company employed 129 full-time employees as of December 31, 2018, compared to 128 in 2017 [48]. - The company has utilized HKD 4.1 million to strengthen sales and marketing efforts by hiring 16 senior personnel [49]. Environmental, Social, and Governance (ESG) Practices - The company has adhered to the ESG reporting guidelines and has implemented policies in environmental protection and community engagement [66]. - The report covers the company's operations in Hong Kong, focusing on its main business activities and compliance with ESG guidelines [67]. - The company encourages stakeholder feedback on its ESG policies and performance through various communication channels [69]. - The management and employees participated in preparing the ESG report to identify relevant environmental and social issues [71]. - The total greenhouse gas emissions for the group amounted to 698.0 tons, with direct emissions from gasoline and diesel consumption at 232.5 tons, indirect emissions from purchased electricity at 339.3 tons, and other indirect emissions from paper usage at 126.2 tons [78]. - The group reported a total of 3,014.3 tons of nitrogen oxides (NOx) emissions, 15.0 tons of sulfur oxides (SOx) emissions, and 0.1 tons of particulate matter during the reporting period [75]. - The group implemented measures to reduce carbon emissions, improve energy efficiency, and conserve water resources as part of its commitment to environmental protection [73]. - The group has adopted policies to monitor and reduce emissions from high-polluting vehicles and has committed to using environmentally friendly vehicles for its logistics operations [80]. - The group actively promotes green office practices to minimize negative environmental impacts and encourages employees to reduce electricity, paper, and water consumption [82]. Corporate Governance - The company has adopted the principles and code provisions of the corporate governance code as per GEM Listing Rules Appendix 15, ensuring proper regulation of its business activities and decision-making processes [110]. - The board consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of power and responsibilities [114]. - The company has complied with all provisions of the corporate governance code during the reporting period, except for the separation of the roles of Chairman and CEO [110]. - The company has established an audit committee, nomination committee, and remuneration committee to oversee its governance practices [110]. - The board believes that the diverse experience of its members contributes positively to the company's business development [115]. - The board's overall responsibility includes evaluating risks faced by the group and implementing appropriate risk management measures [124]. - The company has implemented effective reporting policies to minimize the risk of fraud and misconduct in the workplace, promoting a whistleblower protection mechanism [106]. - The company has not been aware of any significant non-compliance with relevant laws and regulations regarding bribery, corruption, fraud, and money laundering during the fiscal year 2018 [106]. Employee Relations and Training - As of December 31, 2018, the company had a total of 129 employees, with a turnover rate of 4.54% [92]. - The workforce composition included 58.9% male employees and 41.1% female employees [94]. - The average training hours per employee in the fiscal year 2018 was 3 hours [97]. - The company provided various training programs, including onboarding for new employees and skills training for existing staff [96]. - There were no recorded workplace injuries or lost workdays due to accidents in the fiscal year 2018 [95]. - The company strictly adhered to labor laws and did not identify any cases of child or forced labor in the fiscal year 2018 [100]. - The employee retention strategy included competitive compensation packages and performance-based bonuses [92]. - The company maintained a commitment to equal opportunity employment and diversity, with no significant violations reported in 2018 [98]. Shareholder and Financial Policies - The company has established multiple communication channels for shareholders and investors, including annual reports and a corporate website [154]. - The company has not made any changes to its constitutional documents since its listing date [155]. - The largest customer accounted for 10.8% of total revenue in the fiscal year 2018, down from 12.7% in 2017, while the top five customers represented 33.3% of total revenue, compared to 35.9% in 2017 [177]. - The top five suppliers accounted for 32.7% of total procurement in fiscal year 2018, an increase from 28.6% in 2017, with the largest supplier making up 10.9% of total procurement [177]. - The company confirmed it maintained the minimum public float required under GEM listing rules throughout the fiscal year 2018 [179]. - No final dividend was recommended by the board for the fiscal year 2018 [173]. - The company has adopted a dividend policy effective from January 1, 2019, considering factors such as financial performance and cash flow [156].
骏高控股(08035) - 2019 - 年度财报