Company Overview - Perfect Optronics Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange[1]. - The company acknowledges the higher investment risks associated with small and mid-sized companies listed on GEM[2]. - There is a risk of high market volatility for securities traded on GEM compared to those on the Main Board[3]. Governance and Compliance - The directors of Perfect Optronics Limited accept full responsibility for the accuracy and completeness of the information in the report[5]. - The report includes compliance with the GEM Listing Rules to provide information regarding the company[5]. - The Company has adopted a code of conduct for securities transactions by Directors, which complies with the required standards set out in the GEM Listing Rules[150]. - The Company is committed to high standards of corporate governance to safeguard shareholder interests[148]. - The management provides monthly updates to the Board in accordance with the Corporate Governance Code[162]. - The Company ensures compliance with GEM Listing Rules and updates directors on regulatory requirements[175]. - All directors are subject to retirement by rotation at least once every three years, ensuring governance accountability[178]. - The Board comprises four executive Directors and five independent non-executive Directors, with several Directors suspended pending legal proceedings[155]. - Independent non-executive directors represent more than one-third of the Board, ensuring compliance with GEM Listing Rules[184]. - The Company has established three Board committees: audit committee, remuneration committee, and nomination committee, ensuring sufficient resources for their duties[192]. - The audit committee was formed on January 20, 2014, consisting of three independent non-executive Directors, with Ms. Hsu Wai Man Helen as chairperson[197]. - The primary duties of the audit committee include overseeing the financial reporting process, internal control, and risk management systems[199]. - The audit committee held four meetings during the year, with attendance details provided for individual members[200]. Financial Performance - The financial summary and consolidated statements are included in the annual report, detailing the company's financial performance[7]. - The Group recorded a revenue of approximately HK$207.0 million for the year ended 31 December 2020, representing a 24% increase compared to HK$166.6 million in 2019[14][30]. - The consolidated loss attributable to equity holders of the Company for the year amounted to approximately HK$16.9 million, a reduction of approximately 50% from the loss of HK$34.1 million in 2019[14][30]. - Sales of thin film transistor liquid crystal display (TFT-LCD) panels and modules amounted to approximately HK$138.5 million, an increase of approximately 3% compared to 2019[15][18]. - Sales of polarisers reached approximately HK$35.8 million, representing an increase of approximately HK$31.1 million compared to 2019[15][18]. - Revenue from the electronic signage business was approximately HK$11.8 million, reflecting a 52% increase compared to 2019[15][18]. - The Group's total revenue for the Year amounted to approximately HK$206,973,000, representing an increase of approximately 24% compared to HK$166,607,000 in 2019[65]. - The gross profit margin improved to 8.3% from a negative margin in 2019, reflecting a significant recovery in profitability[91]. - Cash and cash equivalents increased to approximately HK$76,403,000 from HK$70,308,000 in 2019, marking a 9% increase[100]. - Total liabilities rose significantly to HK$68,816,000 from HK$33,306,000 in 2019, an increase of 107%[96]. - The current ratio decreased to 2.3 times from 5.0 times in 2019, indicating a reduction in liquidity[96]. - The Group had no bank borrowings as of December 31, 2020, consistent with the previous year[104]. Business Strategy and Operations - The Group plans to maintain a flexible business strategy to seize new business opportunities and create greater value for shareholders[24]. - The Group introduced a personal hygiene and disinfectant product line branded "K-clean" in Hong Kong, responding to strong demand during the pandemic[20][21]. - The Group plans to continue promoting K-clean products while expanding its revenue base and product diversity[49]. - The Group has been actively working to secure business with existing customers while developing new reliable customers in new markets[117]. Legal and Regulatory Matters - The Company received a petition from the Securities and Futures Commission (SFC) alleging that certain Directors breached their duties related to the disposal of a subsidiary holding approximately 50.14% of Shinyoptics Corporation[140]. - The legal proceedings regarding the petition are ongoing, and the Director Respondents intend to contest the allegations vigorously[141]. - Trading in the Company's shares on GEM resumed on September 28, 2020, at 9:00 a.m.[145]. Human Resources - As of December 31, 2020, the employee headcount was 66, with total staff costs amounting to approximately HK$23,911,000, an increase of 11% from HK$21,533,000 in 2019[113]. - The management regularly reviews employee remuneration packages to ensure competitiveness with market standards[112]. - Continuous professional development is emphasized for all directors to ensure their contributions remain informed and relevant[172]. Audit and Financial Review - The audit is conducted by PricewaterhouseCoopers, ensuring an independent review of the financial statements[8]. - Net other gains amounted to approximately HK$3,256,000, including a fair value gain from the Group's investment in Mobvoi of approximately HK$2,009,000[73]. - The Group's finance costs for the Year were approximately HK$678,000, down from HK$890,000 in 2019[78]. - General and administrative expenses for the year were approximately HK$26,747,000, relatively stable compared to HK$26,916,000 in 2019[80]. - Research and development expenses decreased to approximately HK$1,394,000 from HK$1,972,000 in 2019, a reduction of about HK$578,000 due to lower employee costs and development expenses[81].
圆美光电(08311) - 2020 - 年度财报