Financial Performance - The company reported a significant decline in revenue from beauty products and treatment services, with sales dropping approximately 48.1% to around HKD 1,300,000 and treatment services decreasing by 38.1% to about HKD 31,000,000 for the year ending December 31, 2020[21]. - The engineering business revenue contributed approximately HKD 22,800,000, reflecting a decrease of 36.2% in total revenue during the fiscal year 2020[21]. - The group recorded a revenue of approximately HKD 55,000,000 for the year, a decrease from HKD 88,200,000 in the previous fiscal year, with contributions from beauty products at HKD 1,300,000, treatment services at HKD 30,900,000, and engineering business at HKD 22,800,000[22]. - The overall gross loss for the year was approximately HKD 3,700,000, with a gross loss margin of 6.6%, compared to a gross profit margin of 25.7% in the previous year[23]. - The group reported a net loss of approximately HKD 131,900,000 for the year, compared to a loss of HKD 164,300,000 in the previous fiscal year, with losses from beauty business at HKD 1,400,000 and engineering business at HKD 89,200,000[29]. Market Challenges - The company faced significant challenges in 2020 due to the COVID-19 pandemic, leading to a decline in sales of beauty products and services[11]. - The global economic downturn and uncertainties in pandemic control have prompted companies to adopt strategic measures and explore post-pandemic development paths[13]. - The beauty business is expected to face ongoing challenges due to the significant impact of the public health crisis on economic activities in Hong Kong, particularly in consumer-driven and tourism-related sectors[50]. Robotics and Engineering - The engineering segment focuses on the development, design, production, and sales of intelligent robots and systems, covering various fields including police, commercial, civil, industrial, and medical applications[12]. - The company has nearly 40 years of experience in the robotics industry and aims to promote the popularization of robot products based on independent intellectual property rights and core technologies in China[12]. - New product launches include self-branded robots, patrol robots, special robots, inspection robots, and delivery robots, aimed at various applications in smart communities and other fields[13]. - The company launched smart patrol robots in January 2020, collaborating with multiple enterprises to enhance safety and implement a new concept of "smart tourism" in Xi'an, Shaanxi Province[15]. - The company’s 5G smart epidemic prevention robots were deployed in various hospitals and public areas, effectively managing crowds and monitoring temperatures to reduce the risk of virus transmission[17]. Strategic Initiatives - The company is committed to exploring the deep value of artificial intelligence and integrating advanced technologies such as multi-sensor systems, navigation technology, and high-speed communication[13]. - The company emphasizes the importance of intelligent services and creating a smart future through its innovative solutions[13]. - The company is actively responding to government measures and adapting its marketing strategies to cope with the crisis[11]. - The company is actively monitoring global and Chinese macroeconomic factors and plans to diversify products and expand into different regions to respond to economic fluctuations[72]. Corporate Governance - The company has not declared any final dividend for the fiscal year ending December 31, 2020, consistent with the previous fiscal year[82]. - The company has established appropriate insurance arrangements to cover directors against legal actions arising from corporate activities[95]. - The company has adopted a code of conduct for securities trading that is stricter than the GEM listing rules[150]. - The company has established a nomination committee to oversee the appointment and re-election of directors, ensuring compliance with corporate governance standards[158]. - The company has not appointed a CEO as of December 31, 2020, and is actively seeking a suitable candidate to comply with corporate governance codes[164]. Shareholder Information - As of December 31, 2020, the company had a total of 506,219,666 shares issued, with Mr. Su Zhi Tuan holding 151,425,197 shares, representing 29.91% ownership[97]. - The total number of issued shares as of December 31, 2020, is 506,219,666[114]. - The company has not entered into any significant contracts that would involve the directors or their related entities during the review period[102]. - The company has not purchased, sold, or redeemed any of its listed securities during the review year[140]. Employee and Operational Insights - The total employee cost for the year ended December 31, 2020, was approximately HKD 65,100,000, a decrease from HKD 74,600,000 for the year ended December 31, 2019, with 134 employees as of December 31, 2020, down from 228 employees[40]. - The employee compensation policy is based on job responsibilities, performance, experience, and industry standards[103]. - The company has been adjusting its business strategies in response to increased competition and market changes[78]. Risk Management - The company emphasizes the importance of effective risk management and internal controls to mitigate risks faced by the group[183]. - The internal audit function has been established, with a senior executive reporting directly to the audit committee[184]. - The company is actively monitoring changes in applicable laws and regulations to ensure compliance, including hiring external consultants and conducting regular audits[75].
超人智能(08176) - 2020 - 年度财报