Business Performance and Challenges - The company faced significant challenges in 2020 due to the COVID-19 pandemic, which led to a substantial reduction in flight operations and local restaurant orders, impacting its main business of airline catering [6]. - The group recorded revenue of approximately HKD 76.8 million for the year ended December 31, 2020, a decrease of about 43.0% compared to approximately HKD 134.7 million in the same period last year, primarily due to a significant decline in product demand caused by COVID-19 [14]. - The group recorded a net loss of approximately HKD 6.2 million for the year ended December 31, 2020, compared to approximately HKD 9.3 million in the same period last year [19]. - The cost of consumed inventory and operating loss before tax for the year ended December 31, 2020, were approximately HKD 49.4 million and HKD 6.7 million, respectively, compared to approximately HKD 90.8 million and HKD 8.4 million in the previous year [15]. - Employee benefit expenses decreased from approximately HKD 21.3 million in the previous year to approximately HKD 18.2 million due to a reduction in the number of employees [17]. Financial Position and Capital Management - As of December 31, 2020, the group's current assets net value was approximately HKD 34.5 million, down from HKD 75.1 million in 2019, including bank cash of approximately HKD 29.1 million [21]. - The group's debt-to-equity ratio as of December 31, 2020, was approximately 0.03, down from 0.18 in 2019, based on bank loans of approximately HKD 3.6 million and total equity of approximately HKD 123.9 million [22]. - The company has maintained a prudent treasury policy to ensure a healthy liquidity position and closely monitors its cash flow situation [25]. - The company plans to use proceeds from property sales, approximately HKD 45.5 million, to repay certain bank borrowings and expand joint venture operations [34]. Strategic Initiatives and Future Plans - The company plans to adapt its business strategy by focusing on online sales to mitigate losses and align with changing customer purchasing habits [6]. - The company aims to maintain its customer base while seeking new business opportunities and enhancing its refrigeration capacity to expand production capacity [10]. - The company is exploring new opportunities for product development and potential synergies to diversify and enhance existing operations [62]. - The company plans to expand its market presence in Southeast Asia, targeting a 20% market share by 2025 [41]. - A strategic acquisition of a local competitor is anticipated to enhance operational efficiency and increase market share by 10% [41]. Corporate Governance and Compliance - The company has confirmed that all information in the report is accurate and complete, with no misleading or fraudulent elements [2]. - The board of directors includes independent non-executive directors who have confirmed their independence as per GEM listing rules [66]. - The company has adopted the corporate governance code principles and has complied with the code provisions throughout the year ended December 31, 2020 [118]. - The company has confirmed that all directors have complied with the securities trading code from the listing date to December 31, 2020 [120]. - The company has adopted a clear separation of roles between the chairman and the CEO to ensure a balance of power [119]. Environmental and Social Responsibility - The company emphasizes the importance of stakeholder engagement and regularly collects feedback on its environmental, social, and governance practices [164]. - The company is committed to balancing financial performance with sustainable business development, indicating no dividends will be distributed in the short term due to anticipated investments [159]. - The company has implemented systematic measures to phase out less environmentally friendly trucks and considers fuel efficiency when selecting new vehicles [167]. - The group emphasizes energy efficiency by using energy-saving bulbs and LED lighting systems [181]. - The group participated in community service and received the Caring Company Logo for its efforts [188]. Employee Engagement and Compensation - Employee satisfaction scores improved by 15%, reflecting enhanced workforce engagement initiatives [41]. - The company maintains competitive compensation levels, with employee remuneration linked to performance [71]. - The group encourages employee participation in training and development to enhance personal capabilities [186]. - The group adheres to strict recruitment procedures, prohibiting child labor and forced labor [186]. Audit and Financial Reporting - The audit committee reviewed the annual report and confirmed compliance with applicable accounting standards and adequate disclosures [140]. - The audit opinion is based on sufficient and appropriate audit evidence obtained during the audit process [192]. - The group must prepare financial statements that reflect a true and fair view in accordance with the Hong Kong Financial Reporting Standards [199]. - The group engaged external valuers to assess the fair value of its properties, ensuring the qualifications and capabilities of these valuers were reviewed [195]. Shareholder Information and Dividends - No final dividend was recommended for the year ended December 31, 2020; however, a quarterly dividend of HKD 0.01 per share was declared on October 28, 2020, totaling HKD 14,000,000 [55]. - As of December 31, 2020, the company's distributable reserves amounted to approximately HKD 91,108,000, down from HKD 104,454,000 in 2019 [56]. - The company encourages shareholder participation in meetings and aims to respond promptly to inquiries from shareholders [158].
运兴泰集团(08362) - 2020 - 年度财报