Financial Performance - For the year ended December 31, 2019, the overall revenue of G.A. Holdings increased by 0.5% to HKD 2,235,333,000 from HKD 2,225,095,000 in 2018[12] - Operating profit rose by 22.2% to HKD 94,542,000 compared to HKD 77,388,000 in 2018, attributed to effective cost control measures[29] - Revenue from automobile sales decreased to HKD 1,487,371,000, accounting for 66.5% of total revenue, down from 67.5% in 2018[30] - Revenue from automobile services and parts sales increased by 3.4% to HKD 707,686,000, driven by increased service orders in Fuzhou and Xiamen[31] - Technical service income rose by 13.0% to HKD 10,086,000 due to increased sales of locally assembled BMW cars[32] - Revenue from the Hong Kong car rental business increased by 2.7% to HKD 30,190,000[33] - Operating profit margin remained stable at approximately 14.9% for 2019, up from 14.6% in 2018, with operating profit increasing to HKD 333,566,000[34] - Other income increased by 4.3% to HKD 44,232,000, primarily due to higher consulting service income[36] - Employee benefits expenses for the year ended December 31, 2019, were HKD 130,666,000, a decrease of 8.8% from HKD 143,300,000 for the year ended December 31, 2018[37] - Depreciation and amortization expenses increased from HKD 50,838,000 for the year ended December 31, 2018, to HKD 61,891,000 for the year ended December 31, 2019, primarily due to the adoption of the new Hong Kong Financial Reporting Standard No. 16[38] - Lease expenses decreased from HKD 16,682,000 for the year ended December 31, 2018, to HKD 6,792,000 for the year ended December 31, 2019, also due to the adoption of the new Hong Kong Financial Reporting Standard No. 16[39] - Foreign exchange losses amounted to approximately HKD 1,262,000 for the year ended December 31, 2019, compared to HKD 309,000 for the year ended December 31, 2018[40] - Other expenses increased to HKD 82,645,000 for the year ended December 31, 2019, from HKD 78,009,000 for the year ended December 31, 2018, representing a 5.9% increase[41] - Financial costs decreased from HKD 39,492,000 for the year ended December 31, 2018, to HKD 37,045,000 for the year ended December 31, 2019, due to a reduction in borrowings and payables[42] - Income tax expenses increased to HKD 30,618,000 for the year ended December 31, 2019, from HKD 15,909,000 for the year ended December 31, 2018, an increase of HKD 14,709,000[43] - As of December 31, 2019, the group's total equity was HKD 621,206,000, an increase from HKD 602,212,000 as of December 31, 2018[46] - The debt-to-capital ratio as of December 31, 2019, was 0.50, compared to 0.53 as of December 31, 2018[55] Business Operations - The new repair workshop in Xiamen commenced operations at the beginning of 2019, enhancing the company's automotive service and parts sales business[12] - The company anticipates that the financial performance in 2020 may be affected by the overall market conditions due to the outbreak of COVID-19[13] - The company will continue to implement prudent cost control measures to improve productivity and provide quality services to customers[14] - G.A. Holdings maintains long-term friendly business relationships with luxury and ultra-luxury automotive suppliers[14] - The company will closely monitor the risks and uncertainties related to the impact of COVID-19 on its business and financial performance[14] - The company plans to continue monitoring the impact of COVID-19 on its business and financial performance closely[62] - The company maintains long-term relationships with major automotive suppliers to navigate challenges and create value for shareholders[62] Corporate Governance - The board of directors did not recommend any dividend payment for the year ended December 31, 2019, consistent with the previous year[62] - As of December 31, 2019, the company had no distributable reserves available for dividend distribution[69] - The company reported significant shareholdings, with the largest shareholder holding approximately 20.52% of the voting shares[75] - The company’s subsidiaries primarily engage in automobile sales and related technical services, with detailed financial performance available in the annual report[65] - The annual general meeting is scheduled for June 8, 2020, with a suspension of share transfer registration from June 3 to June 8, 2020[68] - The company’s financial statements for the year ended December 31, 2019, are detailed in pages 40 to 127 of the annual report[67] - The largest customer accounted for 2.0% of total sales, while the top five customers contributed 7.1%[92] - The largest supplier represented 62.7% of total purchases, and the top five suppliers accounted for 90.3%[93] - The company maintained the public float required by GEM listing rules as of December 31, 2019[94] - No significant related party transactions were reported for the year ending December 31, 2019[85] - The company has adopted a share option scheme to reward participants for their contributions[101] - There were no share options granted under the share option scheme in the past or current year[103] - The company’s financial performance and asset-liability summary are detailed in the financial overview on page 128 of the annual report[86] - The board of directors includes a mix of executive and independent non-executive members, ensuring governance and oversight[90] - The company has no interests in any competing businesses held by its directors or management shareholders[100] - The auditor for the financial statements for the year ending December 31, 2019, is Crowe (HK) CPA Limited, with a resolution to reappoint them at the upcoming annual general meeting[96] - The board is committed to good corporate governance practices to enhance transparency and protect shareholder rights[114] - The company has adopted a code of conduct for securities trading by directors, ensuring compliance with GEM Listing Rules[115] - All directors are required to retire at least once every three years, with specific directors eligible for re-election at the upcoming annual general meeting[121] - The company has made appropriate insurance arrangements for its directors against potential legal actions in 2019 and beyond[126] - The company has established clear written terms of reference for its various board committees, including the audit, nomination, and remuneration committees[133] - The independent non-executive directors are required to be appointed for a fixed term and must seek re-election at least every three years[128] - The company believes that the current board composition, which includes experienced and independent directors, is sufficient to ensure a balanced distribution of power and authority[127] - The company has adopted a board diversity policy to maintain competitive advantage, considering factors such as skills, experience, and gender for board member selection[146] - The board is responsible for overseeing the company's risk management and internal control procedures, ensuring they are effective and compliant with relevant laws[147] - The audit committee held six meetings in 2019 to review the company's quarterly and annual financial performance, as well as risk management and internal control systems[140] - The remuneration committee conducted two meetings in 2019 to review the company's remuneration policies and structures for independent non-executive directors and senior management[139] - The nomination committee held one meeting in 2019 to review the annual appointment of directors and assess the independence of independent non-executive directors[136] - The company secretary has been in position since November 16, 2015, and has completed over 15 hours of relevant professional training in the year ending December 31, 2019[145] - The chairman and CEO roles are held by different individuals to ensure a balance of power and authority within the company[127] - The company actively engages in corporate governance practices, with the board reviewing risk management procedures regularly and holding monthly management meetings[174] - The company maintains regular communication with shareholders through quarterly and annual reports, as well as annual general meetings[165] - There were no changes to the company's articles of association during the year, ensuring stability in governance[166] Employee and Social Responsibility - The company employed a total of 816 employees as of December 31, 2019, a decrease from 849 in 2018, with 786 located in China, 24 in Hong Kong, and 6 in Singapore[177] - The gender ratio among employees is approximately 1.7:1, with 516 males and 300 females, indicating a predominance of male professionals in the automotive sector[177] - The company has implemented a competitive compensation package, including annual performance bonuses and a stock option plan to attract and retain quality talent[180] - The company has a structured internship program to train young talent, with one intern employed as of December 31, 2019, down from 17 in 2018[180] - The group emphasizes employee safety by providing comprehensive safety training and ensuring good working conditions for all employees[181] - The group has a total of 259 employees providing technical services or logistics support, a decrease from 274 in 2018[181] - There were no recorded fatalities or serious accidents during the year, indicating effective health and safety training and facility management[182] - The company ensures compliance with labor laws regarding working hours and conditions, emphasizing the health and well-being of its employees[176] - The company has a strong commitment to environmental, social, and governance (ESG) practices, adhering to relevant guidelines and regulations[173] - The group is committed to environmental protection by adhering to applicable laws and reducing its environmental footprint through resource efficiency[186] - The group encourages employees to adopt paperless practices to minimize paper usage and promote sustainability[193] Environmental Impact - The group consumed approximately 224,000 liters of unleaded gasoline and about 78,000 liters of diesel during the year, with total emissions including 732,000 kg of CO2[190] - Total electricity consumption for the year was approximately 5,064,000 kWh, resulting in CO2 equivalent emissions of about 4,233,000 kg[191] - Water usage for the year was approximately 38,800 cubic meters, an increase from 32,900 cubic meters in 2018, with a per-employee water intensity of about 47.5 cubic meters[192] - The group used approximately 10,200 kg of paper in normal business operations, with total CO2 equivalent emissions from paper usage around 49,800 kg[193] - The group maintains a high level of customer satisfaction through regular feedback collection and improvement measures[185] Risk Management - The company faces significant risks including political and regulatory risks in China, which could impact operations due to evolving laws and regulations[154] - Economic slowdown in China may suppress consumer spending, particularly affecting sales of automobiles and related services[157] - The company relies heavily on its IT infrastructure for operations; any major failures could lead to increased costs and reduced efficiency[158] - The company has established a clear organizational structure with defined responsibilities and a budget system to manage financial risks effectively[161] - The board believes in the effectiveness and adequacy of the existing internal control and risk management systems based on internal audits and professional recommendations[163] - In 2019, the company engaged external professionals to review its internal control system, establishing an internal audit team for ongoing assessments[149] Audit and Compliance - The independent auditor's report confirms that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2019, in accordance with Hong Kong Financial Reporting Standards[195] - The audit identified the recoverability of receivables from Zhongbao Group as a key audit matter due to its significant impact on the financial statements and the need for substantial judgment regarding Zhongbao Group's creditworthiness[200] - The guarantee provided to Zhongbao Group amounted to HKD 102,672,000, representing 6.4% of the asset ratio as of December 31, 2019[109] - The guarantee agreement with Xiamen Zhongbao was approved by shareholders on December 19, 2019, allowing for a maximum bank financing guarantee of RMB 120 million from January 1, 2020, to December 31, 2021[110]
G.A.控股(08126) - 2019 - 年度财报