Acquisitions and Partnerships - The company completed the acquisition of 70% of i.Link Group Limited, a financial printing company, in August 2020[11]. - The company also acquired 50% of the shares in Lingzhi Translation Company, which provides translation services for the financial and capital markets, in August 2020[11]. - The acquisition of 70% of I.Link Group Limited was agreed upon for HKD 5 million, which is expected to broaden the group's revenue sources and customer base[39][40]. - The company plans to enhance its unique financial translation solutions in collaboration with Wordbee, aiming to position itself as a comprehensive solution provider for financial and corporate marketing clients[18]. - The group increased its stake in Wordbee S.A. from 12.9% to 22.85% by acquiring 4,078 shares for EUR 500,000 (approximately HKD 4.3 million) in February 2020[39]. Financial Performance - The company's revenue decreased from approximately HKD 130.5 million to about HKD 119.5 million, a decline of 8.4% due to the impact of COVID-19[19]. - Gross profit fell from approximately HKD 58.5 million to about HKD 43.6 million, a decrease of 25.5%[22]. - The company's net loss after tax increased from approximately HKD 2.5 million to a loss of about HKD 5.0 million, representing a decline of 298.1%[28]. - Other income rose from a loss of approximately HKD 0.5 million to about HKD 8.8 million, an increase of HKD 9.3 million[23]. - The total assets decreased to approximately HKD 128.8 million from HKD 132.8 million, while total equity increased to about HKD 80.8 million from HKD 87.6 million[31]. Operational Challenges and Strategies - The business faced a significant decline in revenue due to the COVID-19 pandemic, with clients becoming more cautious and reducing expenditures[11]. - The company is focused on technology development and enhancing operational flexibility to adapt to the changing business environment[10]. - The company aims to maintain a strong core business while minimizing losses during challenging times[10]. - The company will continue to monitor the impact of the pandemic on its operations and financial condition[11]. - The company recognizes the need for flexibility in its workforce, allowing remote work to attract talent[10]. Governance and Compliance - The company has established a corporate governance framework in compliance with the GEM Listing Rules, ensuring transparency and accountability[136]. - The board of directors is responsible for the leadership, control, and management of the company, ensuring effective operation and growth to enhance shareholder value[137]. - The company has received annual confirmations of independence from all independent non-executive directors, affirming their status as independent individuals[117]. - The audit committee reviewed the accounting principles and practices adopted by the group, ensuring proper oversight of financial reporting[131]. - The company has established a risk management policy to identify and assess key risks affecting the business[169]. Employee and Workforce Management - As of December 31, 2020, the total employee cost (including directors' remuneration) was approximately HKD 52.6 million, slightly up from HKD 52.3 million in 2019[35]. - The group employed 145 staff in Hong Kong, 8 in China, and 11 in Taiwan as of December 31, 2020, compared to 129, 5, and 11 respectively in 2019[35]. - The group provided competitive compensation packages to attract and retain employees, with annual reviews to assess performance[93]. - The company emphasizes the importance of training and development for its staff, which is crucial for maintaining high service standards in the competitive financial printing sector[51]. - The company has integrated sustainability into its daily operations and invested in technology to support remote work, aiming to reduce paper usage through electronic document management[69]. Shareholder Relations and Communication - The company emphasizes effective communication with shareholders to strengthen investor relations and understanding of business performance[179]. - Shareholders can contact the company through various channels for inquiries or to express opinions[180]. - The company has established a shareholder communication policy to effectively address shareholder concerns[187]. - All resolutions presented at the shareholders' meeting will be voted on individually, ensuring transparency and adherence to GEM listing rules[183]. - The board has the authority to propose and declare dividends based on the group's financial status and conditions outlined in the dividend policy[187]. Environmental and Social Responsibility - The company is focused on sustainable business practices, aligning its operations with environmental governance standards to enhance corporate responsibility[53]. - The company has established a comprehensive environmental policy and performance metrics[65]. - The company has implemented various environmental impact mitigation measures, including obtaining FSC certification for most office paper used by employees[69]. - The group made charitable donations totaling approximately HKD 33,000 for the year ended December 31, 2020, compared to HKD 46,000 in 2019[92]. - The company has not recommended the distribution of a final dividend for the year ended December 31, 2020, consistent with the previous year[73].
HM INTL HLDGS(08416) - 2020 - 年度财报