Financial Performance - For the year ended December 31, 2018, the company generated revenue of approximately HKD 54,733,000, with a profit attributable to owners of approximately HKD 1,780,000[13]. - After excluding non-recurring listing expenses of approximately HKD 7,789,000, the profit attributable to owners was approximately HKD 9,569,000[13]. - The company's revenue increased by approximately HKD 8,242,000 or 17.73% from about HKD 46,491,000 for the year ended December 31, 2017, to about HKD 54,733,000 for the year ended December 31, 2018[26]. - Gross profit for the year ended December 31, 2018, was approximately HKD 23,234,000, with a gross profit margin of about 42.45%, compared to HKD 20,508,000 and 44.11% for the previous year[28]. - The company recorded a profit attributable to owners of approximately HKD 1,780,000 for the year ended December 31, 2018, an improvement of HKD 5,266,000 from a loss of HKD 3,486,000 in the previous year[38]. - Administrative expenses rose by approximately HKD 3,785,000 or 41.09% from about HKD 9,211,000 for the year ended December 31, 2017, to about HKD 12,996,000 for the year ended December 31, 2018[31]. Dividend Policy - The company did not recommend a final dividend for the year ended December 31, 2018, to maintain sufficient funds for future business development[14]. - No final dividend has been recommended for the year ended December 31, 2018[55]. - As of December 31, 2018, the company's distributable reserves were approximately HKD 37,563,000, with no final dividend declared for the fiscal year[95]. Business Expansion and Strategy - The company aims to expand its network of self-service digital photo booths in Hong Kong and China, capitalizing on the growing demand for identification photos[12]. - The company is optimistic about its core business and plans to continue expanding its self-service photo booth network to achieve sustainable growth[18]. - The company plans to expand its self-service digital photo booth network in China, leveraging the success of its Hong Kong business model[22]. - The company has identified significant expansion potential for its self-service identity photo digital camera business in China[22]. - The expansion plan in Guangdong Province has been slightly delayed due to ongoing changes in government policies regarding identity verification photos[45]. Corporate Governance - The company is committed to maintaining high standards of corporate governance to protect shareholder interests and enhance corporate value[161]. - The board of directors consists of three executive directors, two non-executive directors, and three independent non-executive directors, ensuring a diverse governance structure[165]. - The company has adopted a board diversity policy to enhance performance by considering various factors such as gender, age, and professional experience in board member selection[168]. - The roles of the chairman and the CEO are separated, with clear delineation of responsibilities[173]. - The company has established a remuneration committee to review the compensation policies for directors and senior management, considering the company's performance and market practices[108]. Stakeholder Relations - The company expresses gratitude to all employees and stakeholders for their support and contributions during the fiscal year[19]. - The company emphasizes maintaining good relationships with key stakeholders, including employees, customers, and suppliers, to achieve business goals[86]. - The company has implemented policies to minimize its environmental impact and improve corporate governance[84]. Risk Management - The group acknowledges several risks and uncertainties that may impact its financial condition and operational performance, including agreements for operating self-service photo kiosks[79]. - The demand for the company's products is closely related to the application or renewal of identification documents, and there may be a significant decline in overall demand for these products[80]. - The company has not entered into any agreements or purchased instruments to hedge against foreign exchange risks, which are primarily in RMB and HKD[47]. Market Research and Development - The company is actively conducting market research and discussions with suppliers to explore opportunities in Guangdong Province and other regions in China[22]. - The company is focused on upgrading its verification center and IT infrastructure, with HKD 2,000,000 allocated, of which HKD 92,000 has been utilized[48]. Shareholder Information - The company reported that Causeway Treasure Holding Limited holds 427,600,560 shares, representing a 53.45% stake in the company[115]. - Both Mr. Chan Wing Chai and Mr. Chan Tin Ki each own approximately 47.25% of Causeway Treasure, which is a significant shareholder[118]. - The major shareholders include Photo-Me International Plc, holding 109,972,500 shares, which accounts for 13.75% of the company[122]. Compliance and Legal Matters - The company is committed to compliance with relevant laws and regulations, confirming no significant violations that could impact business operations[83]. - There were no significant legal proceedings or arbitration involving the company as of December 31, 2018[151]. - The company has appointed Deloitte as the auditor for the fiscal year ending December 31, 2018, and they will be proposed for reappointment at the upcoming annual general meeting[159].
名仕快相(08483) - 2018 - 年度财报