Financial Performance - For the year ended December 31, 2018, the Group's revenue decreased to approximately HK$64.5 million, representing a decrease of approximately 13.3% compared to HK$74.4 million for the year ended December 31, 2017[19]. - The Group's net loss decreased to approximately HK$10.9 million for the year ended December 31, 2018, down from approximately HK$13.2 million for the year ended December 31, 2017, representing a significant decrease of approximately 17.7%[19]. - The decrease in net loss was primarily due to a reduction of approximately HK$18.5 million in Listing expenses[19]. - The Group experienced a decrease of approximately HK$12.2 million in gross profit during the year ended December 31, 2018, compared to the previous year[19]. - The gross profit margin decreased to approximately 20.6% for the year ended December 31, 2018, down from approximately 34.3% for the previous year[32]. - The net loss for the year ended December 31, 2018, was approximately HK$10.9 million, a significant reduction of about 17.7% from the net loss of approximately HK$13.2 million for the previous year[22]. - Gross profit decreased to approximately HK$13.3 million in 2018 from approximately HK$25.5 million in 2017, a decrease of approximately 48.0%[51]. - The total comprehensive loss attributable to the owners of the parent increased to approximately HK$14.7 million in 2018 from approximately HK$8.1 million in 2017, representing an increase of approximately 82.5%[64]. Revenue and Sales - Overseas sales decreased by approximately 20.8%, while sales to the PRC increased by approximately 5.6% for the year ended December 31, 2018, compared to the previous year[24]. - Sales to overseas markets accounted for approximately 34.1% of total revenue in 2018, while sales in Hong Kong dropped significantly, accounting for only 5.4% of total revenue[45]. Expenses and Costs - The cost of sales increased to approximately HK$51.2 million in 2018 from approximately HK$48.9 million in 2017, representing an increase of approximately 4.9%[46]. - Selling and distribution expenses rose to approximately HK$7.6 million in 2018 from approximately HK$6.4 million in 2017, mainly due to increased staff costs[53]. - Administrative expenses increased significantly to approximately HK$16.5 million in 2018 from approximately HK$9.8 million in 2017, representing an increase of approximately 67.4%[54]. Assets and Liabilities - The Group's cash and bank balances decreased from approximately HK$57.9 million as of December 31, 2017, to approximately HK$30.9 million as of December 31, 2018[73]. - The Group's net current assets decreased from approximately HK$64.9 million as of December 31, 2017, to approximately HK$40.4 million as of December 31, 2018[74]. - Bank borrowings decreased from approximately HK$22.6 million as of December 31, 2017, to approximately HK$15.2 million as of December 31, 2018[74]. Corporate Governance - The company has adopted the corporate governance code as set out in Appendix 15 to the GEM Listing Rules, ensuring compliance with the standards for the year ended December 31, 2018[181]. - The Board believes that strong corporate governance practices are essential for safeguarding shareholder interests and ensuring accountability[180]. - The company confirmed compliance with the required standard of dealings regarding securities transactions by the Directors during the year ended December 31, 2018[183]. - The Board currently comprises executive, non-executive, and independent non-executive Directors, ensuring a diverse governance structure[187]. - The company has committed to regularly reviewing its corporate governance practices to meet the rising expectations of shareholders and stakeholders[181]. Business Strategy and Expansion - The Group plans to establish a Zhejiang office to expand its reach in the PRC, expected to be fully operational by the end of 2019[24]. - The Group has no plans to deviate from its expansion plans outlined in the prospectus dated November 30, 2017, and will implement these plans in a more prudent manner[25]. - The Directors believe there are considerable business opportunities in the sewing threads industry in the long term[128]. - The expansion plans will be implemented in a prudent manner, considering market conditions[128]. - The Group will monitor and assess the feasibility of expansion plans continuously[129]. Management and Personnel - As of December 31, 2018, the Group employed a total of 184 employees, an increase from 178 employees in 2017[103]. - Total staff costs for the two years ended December 31, 2018, were approximately HK$15.2 million and HK$18.7 million, respectively[103]. Directors and Management Team - Mr. Yu Miaogen has extensive experience in the finance industry, having served as CEO and chairman of Huaan Funds Management Co., Ltd. from November 2006 to September 2011[139]. - Mr. Gao Biao holds two master's degrees, one in East Asian business and another in international shipping and finance, and has been a project manager at Shanghai Ruili Investment Management Center since 2017[144]. - Mr. Shi Guixiang, appointed as a non-executive director, has a background in finance with experience in various managerial roles in companies such as Shenzhen Development Bank and Guangzhou Fengshen Auto and Real Estate Development Company[149]. - Dr. Yeung Ngai Man, John has been an independent non-executive director since November 24, 2017, and is the chairman of the remuneration committee[154]. - Mr. Sung Alfred Lee Ming has over 30 years of experience in accounting and was appointed as an independent non-executive director on November 24, 2017[159]. - Mr. Zhang Guofu was appointed as an independent non-executive director on September 24, 2018, and holds a doctorate in economics[164].
维港育马(08377) - 2018 - 年度财报