Financial Performance - The revenue of Hanvey Group Holdings Limited in 2018 increased approximately 4.4% compared to 2017[16] - The Group's revenue for the year ended December 31, 2018, was approximately HK$182.48 million, representing an increase of approximately 4.4% compared to HK$174.82 million in 2017[27][35] - The gross profit increased by approximately HK$3.61 million or 7.1%, from approximately HK$51.02 million in 2017 to approximately HK$54.63 million in 2018, with a gross profit margin rising from 29.2% to 29.9%[37][42] - The Group incurred listing expenses of approximately HK$13.05 million in 2018, which contributed to a net loss of approximately HK$7.10 million for the year, compared to a profit of approximately HK$3.96 million in 2017[30][50] - After excluding listing expenses, the net profit would be approximately HK$5.94 million, representing a decrease of 32.3% compared to 2017[17] - The Group recorded a loss before taxation of approximately HK$4.50 million in 2018, compared to a profit before taxation of approximately HK$6.02 million in 2017[48][53] - The income tax expenses increased by approximately HK$0.54 million or 26.6%, from approximately HK$2.06 million in 2017 to approximately HK$2.60 million in 2018[49][54] Business Strategy - The company aims to enhance design capabilities by recruiting more design talents and upgrading hardware and software[18] - Hanvey Group is shifting its product focus from quartz watches to automatic mechanical watches to cater to the growing middle-class in emerging markets[19] - The company plans to source more automatic mechanical movement suppliers to secure global supply[19] - The Group plans to enhance design capabilities by recruiting more design talents and upgrading hardware and software for design work in 2019[57] - The Group plans to purchase a new metal 3D printer in 2019 to strengthen its design capabilities[87] Operational Efficiency - Selling and distribution expenses decreased by approximately HK$0.34 million or 5.3%, from approximately HK$6.33 million in 2017 to approximately HK$5.99 million in 2018[38][43] - Administrative expenses increased by approximately HK$6.44 million or 20.3%, from approximately HK$31.64 million in 2017 to approximately HK$38.08 million in 2018, primarily due to higher compliance costs[39][44] - The Group utilized HK$7.4 million to repay bank loans during the year, resulting in a decrease in finance costs by approximately HK$0.57 million or 12.2% from approximately HK$4.71 million in 2017 to approximately HK$4.14 million in 2018[87] Market Conditions - The ongoing Sino-US trade war is expected to continue impacting the global economy in 2019[18] - The Group's diversified customer base helped minimize the impact of the Sino-US trade war in 2018[16] Corporate Governance - The company has complied with the Corporate Governance Code since the Listing Date on July 12, 2018, except for specified deviations[124] - The Board consists of six Directors, including three executive Directors and three independent non-executive Directors[132] - The roles of chairman and chief executive officer are held by Mr. Cheuk Sin Cheong Clement, which the Board believes strengthens leadership and decision-making[118] - The company has adopted a code of conduct regarding securities transactions by Directors, ensuring compliance with GEM Listing Rules from the Listing Date to December 31, 2018[125] - The Board is responsible for the overall business plans and strategies of the Group, including monitoring performance and risk management[126] - The Directors are subject to re-election at least once every three years, with one-third of the Directors retiring by rotation[134] - The company has confirmed that there are no business or interests that compete with the Group's business as of December 31, 2018[112] - The company has engaged Tian Cai Capital International Limited as a compliance advisor since its listing[114] Shareholder Relations - The Board's dividend policy aims to balance shareholder interests with prudent capital management, considering factors such as financial performance and economic conditions[192][195] - The Company promotes investor relations and encourages suggestions from investors and stakeholders[199] - Shareholders holding at least one-tenth of the paid-up capital have the right to requisition an extraordinary general meeting[196] Employee and Board Structure - The Group had a total of 178 employees as of December 31, 2018, with an established annual review system for performance assessment[75][78] - The Company Secretary, Mr. Xie Xing, completed not less than 15 hours of relevant professional training in accordance with GEM Listing Rules during the year ended December 31, 2018[183] - The attendance record of Directors at Board meetings shows that all Executive Directors attended 100% of the meetings held during the period from the Listing Date to December 31, 2018[171] Audit and Compliance - The Audit Committee, comprising three independent non-executive directors, oversees the effectiveness of the company's financial reporting and internal control systems[157] - The Group did not have an internal audit function for the year ended 31 December 2018, but engaged an external consultant to review risk management and internal control systems, which were deemed effective and adequate[188] - The auditors' remuneration for the year ended 31 December 2018 totaled HK$1,000,000, with all fees attributed to audit services[186]
恒伟集团控股(08219) - 2018 - 年度财报