Financial Performance - Total revenue increased by approximately 18.3% from about HKD 412.3 million in FY2019 to about HKD 487.6 million in FY2020[12][15]. - The company recorded a profit attributable to shareholders of approximately HKD 11.2 million in FY2020, compared to a loss of about HKD 18.1 million in FY2019[12][28]. - Air freight revenue increased by approximately HKD 86.8 million, while e-commerce fulfillment revenue rose by about HKD 18.9 million in FY2020[15]. - Gross profit increased by approximately 96.1% from about HKD 33.0 million in FY2019 to about HKD 64.7 million in FY2020, with a gross margin improvement from 8.0% to 13.3%[22]. - Other income surged by approximately 9,000% from about HKD 0.1 million in FY2019 to about HKD 9.1 million in FY2020, mainly due to a one-time government subsidy[23]. - Administrative expenses decreased by about 7.0% from approximately HKD 45.5 million in FY2019 to about HKD 42.3 million in FY2020[25]. - Financing costs decreased to HKD 5.9 million in FY2020 from HKD 7.0 million in FY2019[26]. - The logistics segment's gross profit increased significantly, contributing to the overall profitability of the company[22]. - The company faced a 666.7% increase in other losses, primarily due to a loss on the sale of property, plant, and equipment[24]. Business Strategy and Expansion - Significant contributions to revenue growth in 2020 came from the expansion of e-commerce fulfillment services in the US and China[6]. - The group aims to diversify its business and expand its customer base in response to competition and economic uncertainties[6]. - Future plans include strengthening relationships with large clients and expanding logistics services in Europe and the US, as well as enhancing cross-border e-commerce operations[7]. - The group anticipates rapid growth in warehouse capacity due to the execution of warehouse mergers and upgrades to warehouse management systems[7]. - The group plans to expand its e-commerce and fulfillment business, aiming for significant growth in e-commerce revenue in the future[40]. - Market expansion efforts include entering two new Southeast Asian countries, expected to contribute an additional $2 million in revenue[53]. - The company is exploring potential acquisitions to enhance its service offerings, targeting a 10% increase in market share[54]. Environmental, Social, and Governance (ESG) Initiatives - The environmental, social, and governance (ESG) report highlights compliance with guidelines, focusing on sustainability initiatives[60]. - Stakeholder engagement has been prioritized, with feedback mechanisms established to improve ESG performance[63]. - The company aims to enhance operational efficiency, targeting a 5% reduction in operational costs through process optimization[61]. - The financial year ended December 31, 2020, with a comprehensive review of challenges faced and measures taken in ESG areas[62]. - For the fiscal year ending December 31, 2020, the total greenhouse gas emissions amounted to 3,890.8 tons, a significant increase from 887.2 tons in 2019[74]. - Direct greenhouse gas emissions (Scope 1) from gasoline and diesel consumption rose to 551.5 tons in 2020, compared to 373.3 tons in 2019, reflecting a 47.8% increase[74]. - Indirect greenhouse gas emissions (Scope 2) from purchased electricity increased to 450.3 tons in 2020, up from 329.6 tons in 2019, marking a 36.5% rise[74]. - Other indirect greenhouse gas emissions (Scope 3) from paper usage surged to 2,889.0 tons in 2020, a dramatic increase from 184.3 tons in 2019, representing a 1,467.4% increase[74]. - The total energy consumption for the fiscal year 2020 was 714,797 kWh for electricity, up from 523,245 kWh in 2019, indicating a 36.5% increase[78]. - The company has implemented various measures to reduce carbon emissions, improve energy efficiency, and conserve water resources as part of its commitment to environmental protection[68]. Workforce and Employee Engagement - The group employed 172 full-time employees as of December 31, 2020, an increase from 149 in 2019[42]. - The total number of employees increased to 172 in 2020, up from 149 in 2019, representing a growth of approximately 15.4%[86]. - The monthly employee turnover rate decreased to 3.78% in 2020 from 6.17% in 2019, indicating improved employee retention[86]. - The average training hours per employee remained stable at 3 hours for both 2020 and 2019[93]. - The company reported no workplace injuries or lost workdays due to accidents in 2020, reflecting effective safety measures[88]. - The company provided regular training to employees, including new employee orientation and skills enhancement programs[91]. - The employee count in the operations department rose to 141 in 2020, accounting for 82.0% of the total workforce[87]. Corporate Governance - The board of directors consists of six members, including three executive directors and three independent non-executive directors, ensuring a balance of power and responsibilities[110]. - The group has complied with all corporate governance code provisions during the reporting period, except for the separation of the roles of chairman and CEO[106]. - The board is responsible for evaluating risks faced by the group and implementing appropriate risk management measures[119]. - The company has established three committees to assist the board: the audit committee, the remuneration committee, and the nomination committee[123]. - The board is required to meet at least four times a year, with a minimum of 14 days' notice for meetings[114]. - The company has adopted a written terms of reference for the audit committee, which includes reviewing the financial reporting process and internal controls[124]. - The company established a Remuneration Committee, which held one meeting during the reporting period, focusing on the remuneration policies for executive directors and senior management[126]. - The Nomination Committee conducted two meetings, reviewing the board's structure and diversity policies, and assessing the independence of non-executive directors[128]. Financial Position and Shareholder Information - The company’s distributable reserves as of December 31, 2020, amounted to approximately HKD 27.6 million[187]. - The company did not recommend the payment of a final dividend for the fiscal year 2020[166]. - The largest customer accounted for 14.96% of total revenue in fiscal year 2020, compared to 14.25% in 2019[170]. - The top five customers represented 39.7% of total revenue in fiscal year 2020, slightly up from 39.6% in 2019[170]. - The top five suppliers accounted for 36.5% of total procurement in fiscal year 2020, down from 38.9% in 2019[170]. - The largest supplier accounted for 10.5% of total procurement in fiscal year 2020, compared to 10.6% in 2019[170]. - The company has set up multiple channels for communication with shareholders, including annual reports and a dedicated website[147]. Compliance and Risk Management - The company has maintained compliance with all applicable environmental laws and regulations during the fiscal year 2020[160]. - The company has no independent internal audit department but relies on external consultants for internal control reviews[138]. - The company’s compliance officer was appointed on October 4, 2019, ensuring adherence to regulations[153]. - The board has concluded that the risk management and internal control systems are effective and adequate after a review by an external independent consultant[137]. - The company ensures compliance with the Securities and Futures Ordinance regarding the disclosure of interests and holdings[196].
骏高控股(08035) - 2020 - 年度财报