Financial Performance - The company's revenue for the year ended December 31, 2020, was HKD 20,114,000, a significant decrease of 88.8% compared to HKD 180,241,000 in 2019[13] - The company reported a loss before tax of HKD 25,360,000 for 2020, compared to a loss of HKD 921,000 in 2019[13] - Total assets decreased to HKD 92,830,000 in 2020 from HKD 119,314,000 in 2019, reflecting a decline of 22.2%[14] - The total equity decreased to HKD 72,906,000 in 2020 from HKD 98,242,000 in 2019, representing a decrease of 25.7%[14] - The group's revenue decreased approximately 88.9% from about HKD 180.2 million for the year ended December 31, 2019, to about HKD 20.1 million for the year ended December 31, 2020, primarily due to reduced demand for hotel room sales and car rental services caused by the pandemic and travel restrictions in Macau[19] - The cost of sales dropped approximately 86.8%, from about HKD 143.9 million in 2019 to about HKD 19.0 million in 2020, reflecting the decline in sales and distribution of hotel rooms and car rental services[20] - Gross profit fell approximately 97.0%, from about HKD 36.3 million in 2019 to about HKD 1.1 million in 2020, mainly due to the significant decrease in revenue from hotel room sales and car rental services[22] - The group recorded a loss of approximately HKD 25.5 million for the year ended December 31, 2020, compared to a loss of about HKD 1.1 million for the year ended December 31, 2019, attributed to reduced revenue, impairment losses, and increased administrative expenses[27] Impact of COVID-19 - The company faced severe impacts from the COVID-19 pandemic, which led to significant declines in the tourism industry in Macau and Hong Kong[16] - The business and financial performance of the group was significantly impacted by the pandemic and travel restrictions imposed by the Macau government[68] - The group faced significant risks due to the pandemic, impacting the tourism industry and consumer sentiment in Macau, with potential long-term effects on visitor numbers[32] Operational Developments - The company focuses on providing business-to-business travel services, including hotel room sales, car rental services, and ticket sales for travel-related products[17] - The company has been authorized to provide cross-border car rental services between Macau and Hong Kong since December 2020[17] - Future efforts will be directed towards consolidating existing business and providing stable returns and growth prospects for shareholders[10] - The company aims to enhance its service offerings and expand its market presence in the travel sector[10] - The company has purchased eight new vehicles for cross-border transportation and car rental services, with plans to adjust fleet expansion based on market demand[30] - The group plans to expand its fleet by acquiring additional vehicles and hiring more drivers to meet the growing demand for multi-purpose car rental services in Macau[67] - The group aims to establish hotel room guarantee agreements with more hotel operators to increase the number of mid-to-high-end hotel rooms, thereby attracting business travelers and high-spending customers[67] Corporate Governance - The company has adopted the corporate governance code as per GEM listing rules, ensuring high levels of transparency and accountability[90] - The board continues to monitor credit risk, which primarily arises from trade receivables and cash deposits[55] - The company has established three board committees: the audit committee, the remuneration committee, and the nomination committee, to enhance corporate governance[101] - The audit committee is composed entirely of independent non-executive directors, ensuring unbiased oversight of financial reporting[102] - The company received an annual independence confirmation from all independent non-executive directors, affirming their independence[97] - The board has a policy to ensure that appointed directors possess relevant business, financial, and management skills necessary for the group's operations[113] Environmental, Social, and Governance (ESG) Initiatives - The group emphasizes sustainable development as a key driver for creating value for stakeholders, adhering to environmental, social, and governance (ESG) guidelines[157] - In 2020, the group implemented a "Green Environmental Policy and Procedures" aimed at balancing business returns with environmental protection[161] - The management team is responsible for identifying and assessing significant environmental and social risks related to core business activities[158] - The group has established key performance indicators (KPIs) to monitor the implementation of ESG strategies and policies[159] - The group aims to reduce energy, water, and other natural resource usage through successful execution of its environmental policies, which can also lower operational costs[164] Financial Position - As of December 31, 2020, approximately HKD 30.6 million of the net proceeds remained unutilized, held in bank fixed deposits[29] - The group's cash balance was approximately HKD 55.0 million, a decrease from HKD 71.0 million as of December 31, 2019, mainly due to acquisitions and operational expenses[41] - The total borrowings and lease liabilities amounted to approximately HKD 14.3 million as of December 31, 2020, an increase from HKD 3.6 million in the previous year[42] - The group's asset-liability ratio increased to approximately 19.7% as of December 31, 2020, compared to 3.6% the previous year, primarily due to increased bank borrowings[45] Employee and Workforce Management - The employee cost for the year ended December 31, 2020, was approximately HKD 8.2 million, a decrease of about 21.2% from HKD 10.4 million in 2019[62] - The group had 71 employees as of December 31, 2020, down from 91 employees in 2019[62] - The company maintained good relationships with employees, customers, and suppliers, with no significant disputes reported during the year[65] Future Outlook - The group anticipates that the gradual reopening of the border between China and Macau will lead to an increase in the number of Chinese tourists visiting Macau in 2021[68] - The group will continue to explore new hotel business opportunities under attractive terms to capitalize on market rebound opportunities once conditions improve[69] - The group is committed to implementing cost control measures until market conditions improve[69] - The group aims to provide stable returns and growth prospects for its shareholders while consolidating its existing business development[70]
瀛海集团(08668) - 2020 - 年度财报