Financial Performance - For the year ended December 31, 2020, total revenue increased by 1.3% to HKD 2,264,306,000 from HKD 2,235,333,000 in 2019[26]. - Operating profit rose by 20.6% to HKD 114,061,000 compared to HKD 94,542,000 in 2019, primarily due to reduced employee benefits expenses and lower legal and professional fees[26]. - Automotive sales revenue increased by 8.9% to HKD 1,619,354,000, accounting for 71.5% of total revenue, up from 66.5% in 2019[27]. - Revenue from automotive services and parts sales decreased by 14.6% to HKD 604,571,000, attributed to service interruptions due to the COVID-19 pandemic[28]. - Technical service income fell by 11.1% to HKD 8,962,000 due to a decrease in the number of locally assembled BMW cars sold by Xiamen Zhongbao[29]. - Car rental income in Hong Kong increased by 4.1% to HKD 31,419,000, driven by a shift towards self-driving during the pandemic[31]. - Operating gross profit decreased by 8.4% to HKD 305,711,000, with the operating gross profit margin declining to 13.5% from 14.9% in 2019[32]. - Other income increased by 2.5% to HKD 45,323,000, primarily due to government subsidies and property sales, offset by declines in commission and consulting service income due to COVID-19[33]. - Employee benefits expenses decreased by 19.1% to HKD 105,709,000, attributed to a reduction in personnel and lower commission expenses due to decreased operating margins[34]. - Depreciation and amortization expenses decreased by 3.7% to HKD 59,625,000[35]. - Foreign exchange gains amounted to HKD 896,000, a turnaround from a loss of HKD 1,262,000 in the previous year[36]. - Other expenses decreased by 25.2% to HKD 59,373,000, mainly due to cost savings from temporary business suspensions and reduced advertising expenses[39]. - Financial costs decreased by 6.8% to HKD 34,508,000, primarily due to a reduction in average borrowings[40]. - Income tax expenses decreased to HKD 26,742,000, with the effective tax rate dropping from 53.3% to 33.6%[41]. - As of December 31, 2020, total current assets were HKD 1,268,001,000, with cash and bank balances at HKD 174,706,000[42]. - The company expects future financial performance to maintain pre-pandemic levels, with confidence in enhancing profitability for stakeholders[57]. Dividend Policy - The board of directors has decided not to declare any dividends for the year ended December 31, 2020, to retain sufficient operating capital for business expansion[9]. - No dividends were proposed for the year ended December 31, 2020[56]. - The company reported no dividend for the year ending December 31, 2020, consistent with the previous year[62]. - As of December 31, 2020, the company had no distributable reserves available for distribution to shareholders[64]. - The company has not proposed any arrangements for shareholders to waive or agree to waive any proposed dividends for the year[62]. Corporate Governance - The board is committed to ensuring the accuracy and completeness of the information provided in the annual report[2]. - The company operates as an investment holding company, with subsidiaries primarily engaged in automobile sales and related services[60]. - The total number of shares held by the directors as of December 31, 2020, includes 8,000,000 shares (1.68%) held by Mr. Luo, and 19,484,000 shares (4.09%) held by Mr. Xue[68]. - Major shareholders include Mr. Luo Ping with 107,780,320 shares (22.63%) and Loh & Loh Construction Group Ltd with 45,284,000 shares (9.51%) as of December 31, 2020[70]. - The company has scheduled its annual general meeting for May 10, 2021, during which shareholders will vote on various matters[63]. - The company has not engaged in any business activities, as it is solely an investment holding company[64]. - The financial performance for the year ending December 31, 2020, is detailed in the consolidated financial statements from pages 44 to 135 of the annual report[62]. - The company has adopted a share option scheme to reward participants for their contributions[96]. - The company has maintained the public float as required by GEM listing rules throughout the reporting period[89]. - The company has established clear written terms of reference for its various board committees, including the Audit, Nomination, and Remuneration Committees[130]. - The company has appointed three independent non-executive directors, representing one-third of the board, ensuring compliance with GEM listing rules[129]. - The company emphasizes the importance of board diversity as a competitive advantage and has adopted a policy to achieve and maintain diversity among board members[144]. - The company has made appropriate insurance arrangements for its directors against potential legal actions in 2020 and beyond[124]. - The company received shareholder approval for the guarantee agreement at a special general meeting on December 19, 2019[105]. - The board of directors held six meetings in 2020, with all directors attending all meetings[115][116]. - The company has adopted a code of conduct for securities trading, with no violations reported by any directors during the year[112]. - The company has maintained compliance with the GEM Listing Rules and corporate governance codes throughout the year[111]. - The board is responsible for all major decision-making and daily management is delegated to senior executives[117]. - The Audit Committee held five meetings in 2020 to review the company's quarterly, interim, and annual financial performance, as well as risk management and internal control systems[137]. - The Nomination Committee conducted one meeting in 2020 to review the annual appointment of directors and assess the independence of independent non-executive directors[133]. - The Remuneration Committee held one meeting in 2020 to discuss and review the company's remuneration policies and structures[136]. - All independent non-executive directors have confirmed their independence according to the guidelines set out in GEM listing rules[129]. - The company ensures that all committee members have sufficient resources to perform their duties, including obtaining management or professional advice when necessary[131]. - The company has established a risk management and internal control system that is deemed sufficient and effective by the audit committee[151]. - The company faces significant risks including political and regulatory risks in China, which is closely monitored by senior management[151]. - The internal audit team conducts ongoing reviews of risk management and internal control systems, ensuring compliance with relevant laws and regulations[150]. Employee and Community Engagement - The group employed a total of 757 employees as of December 31, 2020, down from 816 in 2019, with 724 in China, 26 in Hong Kong, and 7 in Singapore[174]. - The gender ratio of employees is approximately 1.7:1, with 478 males and 279 females, indicating a male-dominated workforce in the automotive sector[174]. - The group has implemented a robust employee retention strategy, including competitive compensation and annual performance bonuses, contributing to a stable employee turnover rate[175]. - The group has not recorded any fatal or serious accidents during the review year, reflecting its commitment to workplace safety and employee training[178]. - The group actively engages in community service, encouraging employees to volunteer during their leisure time[176]. - The group has established a shareholder communication policy since March 2012 to enhance transparency and trust among stakeholders[169]. - The group has established a clear and feasible opportunity for employee self-development and career advancement through regular performance evaluations[179]. - The group provides ongoing training for technical staff and customer service personnel to ensure product and service quality[180]. - The group has adopted a stock option plan to reward existing employees and attract new talent[175]. Environmental Impact - The total electricity consumption for the year was approximately 4,445,000 kWh, resulting in CO2 equivalent emissions of about 3,715,000 kg[187]. - The group used approximately 37,200 cubic meters of water during the year, with a water intensity of about 49.1 cubic meters per employee[188]. - The group consumed about 227,000 liters of unleaded gasoline and approximately 52,000 liters of diesel during the year, with total emissions including 672,000 kg of CO2[185]. - The group encourages employees to adopt paperless practices, resulting in the use of approximately 8,800 kg of paper during the year[189]. - The group emphasizes environmental awareness and compliance with applicable environmental laws and regulations, with no significant non-compliance reported during the year[184]. - The group has implemented a strict supply chain management system to ensure high-quality products and services, relying on qualified and reputable suppliers[180].
G.A.控股(08126) - 2020 - 年度财报