Financial Performance - Revenue from continuing operations increased by 6% to HK$79,525,000 in 2020, compared to HK$75,259,000 in 2019[9] - Profit from operations from continuing operations was HK$15,184,000, a significant recovery from a loss of HK$19,809,000 in 2019, representing a 177% improvement[9] - Profit attributable to equity shareholders of the Company was HK$15,053,000, compared to a loss of HK$47,873,000 in the previous year, marking a 131% increase[9] - Basic earnings per share improved to HK$0.006 from a loss of HK$0.020 in 2019, reflecting a 130% increase[9] - The Group recorded revenue of approximately HK$5.1 million from sales of sub-processing cigarette and non-cigarette films, a decrease from approximately HK$7.5 million in the previous year[35] - Revenue from properties development increased significantly from approximately HK$8.8 million in the previous year to approximately HK$21.4 million for the current year[36] - The Group's gross profit increased by approximately HK$7.4 million, or approximately 20.3%, from approximately HK$36.0 million for the year ended 31 December 2019 to approximately HK$43.4 million for the Year[41] - The gross profit margin improved from approximately 47.9% for the year ended 31 December 2019 to approximately 54.5% for the Year[44] - Selling and distribution expenses decreased by approximately HK$0.4 million, or approximately 45.7%, from approximately HK$0.9 million for the year ended 31 December 2019 to approximately HK$0.5 million for the Year[42] - Administrative expenses decreased by approximately HK$11.4 million, or approximately 26.8%, from approximately HK$42.7 million for the year ended 31 December 2019 to approximately HK$31.3 million for the Year[43] - The Group recorded a profit attributable to equity shareholders of approximately HK$15.1 million for the Year, compared to a loss of approximately HK$47.9 million for the year ended 31 December 2019[53] Asset Management and Business Strategy - The company disposed of its factory in Qingdao, which improved asset turnover and generated additional cash inflow[13] - The company plans to allocate cash and resources towards product development and potential trials to strengthen its existing business[14] - Future business development will focus on expanding production networks and diversifying operations primarily in the Huaihai district[14] - The company is engaging with local developers and factories in Jiangsu Province to explore potential cooperation opportunities[14] - The Group disposed of Qingdao Ener Packaging Technology Co., Ltd., which was primarily involved in the manufacturing and sales of BOPP films, on December 10, 2020[24] - Following the disposal, the Group reclassified its operations into four business segments: sales of sub-processing cigarette films, properties development, generation of photovoltaic power, and cloud-related business[31] - The Board noted that Qingdao Ener had been loss-making for the last two financial years, prompting the decision to dispose of the subsidiary to improve asset turnover and generate additional cash inflow[29] - The Group is focusing on high-quality development and expanding its production network, particularly in the Huaihai region, to achieve sustainable business growth[16] - The Group is currently exploring potential projects to enhance its existing business and capture market opportunities[16] - The Group aims to strengthen its collaboration with local developers and factories in Jiangsu Province for potential partnerships[16] - The financial performance of Qingdao Ener deteriorated, leading to the belief that its profitability would not be sustainable[29] - The Group's strategy includes reallocating resources to product development and potential trials to support business growth[16] Challenges and Market Conditions - The financial year 2020 was impacted by COVID-19, leading to uncertainties in the BOPP film market and affecting production management[13] - The company anticipates further challenges due to rising raw material costs, which may impact profitability[13] Liquidity and Capital Management - As at 31 December 2020, the Group's cash and cash equivalents amounted to approximately HK$326.1 million, an increase of approximately HK$160.7 million from approximately HK$165.4 million as at 31 December 2019[55] - The total capital expenditure for the Year amounted to approximately HK$4.8 million[61] - The Group did not have any material bank loans as at 31 December 2020, compared to approximately HK$69.9 million as at 31 December 2019[55] - As of December 31, 2020, the Group did not have any capital commitments, similar to the situation as of December 31, 2019[80] - The Group has maintained a healthy liquidity position throughout the year by adopting a prudent financial management approach towards its treasury policies[77] Human Resources and Employment Practices - As of December 31, 2020, the Group employed 74 employees, a decrease from 245 employees as of December 31, 2019, with total staff costs of approximately HK$12.7 million for the year[71] - The Group's human resources policies ensure fair recruitment and promotion processes, adhering to relevant labor laws and regulations[183] - The Group has not encountered any incidents of non-compliance with major applicable laws and regulations related to employment during the year[183] - The Group prioritizes water-saving products and promotes water-saving habits throughout its premises[173] - The Group's remuneration package includes competitive salaries, incentive schemes, and discretionary bonuses[188] - The Group has a zero-tolerance policy for sexual harassment and other forms of abuse in the workplace[191] - The Group emphasizes a healthy work-life balance culture, ensuring compliance with legal working hour requirements[198] - Regular reviews are conducted to optimize work-life balance arrangements for employees[199] - Recreational events were organized during the year to promote social bonding among employees[198] Environmental, Social, and Governance (ESG) Initiatives - The Group has identified 23 material sustainability topics that impact the environment and society through its operations[95] - The Group's management conducts regular reviews of ESG-related metrics to ensure sustainability topics are managed and reported according to their materiality[93] - The Group has identified 23 key environmental, social, and governance (ESG) topics that impact its operations[98] - The Board regularly reviews and validates the materiality process, ensuring transparency in the Group's performance on high and low materiality topics[111] - High materiality topics include occupational health and safety, quality and safety of goods/services, and customer satisfaction[108] - The Group engages with a wide network of stakeholders, including employees, customers, suppliers, shareholders, government, and community[113] - The Group employs a three-step process to prioritize ESG topics based on their significance to stakeholders and the Group[104] - The Group is committed to maintaining effective communication channels with stakeholders to better shape its business strategies[116] - The Group's sustainability strategy is integrated into its overall corporate strategy, focusing on enhancing awareness of ESG issues at the Board level[102] - The Group emphasizes the importance of environmental risk management and climate-change strategy in its operations[101] - The Group's commitment to anti-corruption and anti-competitive practices is highlighted as a key governance issue[108] - The Group aims to strengthen its supply chain management as part of its sustainability initiatives[108] Environmental Compliance and Impact - The Group released 11.0 kg of Nitrogen Oxides, 0.2 kg of Sulphur Oxides, and 0.8 kg of Particulate Matter in 2020[129] - A total of 146 cubic meters of wastewater was discharged during the year, complying with the PRC Law on the Prevention and Treatment of Water Pollution[131] - The Group ensures all air, water, and land discharges comply with regulatory standards, with no incidents of noncompliance reported in 2020[126] - The Group's activities are minor sources of noise emissions, with regular maintenance ensuring compliance with regulatory limits[136] - The Group is committed to environmental sustainability, managing its direct and indirect impacts through clean production and energy-saving initiatives[123] - The management systems of each subsidiary ensure strict environmental compliance and continual improvement towards cleaner practices[124] - Regular monitoring and testing of effluent discharges ensure no adverse environmental impacts, adhering to applicable laws and regulations[131] - The Group's commitment to reducing air pollutants includes further curbing emissions beyond statutory requirements[128] - The Group generated a total of 610.3 tonnes of greenhouse gases (Scope I and II), resulting in a carbon intensity of 0.02 tCO2e per square meter gross floor area[143] - Scope II emissions, primarily from electricity usage, accounted for 579.8 tonnes of CO2e, representing 95% of the total emissions[143] - The Group's total energy consumption was 2,532.2 GJ, with direct energy consumption at 376.1 GJ and indirect energy consumption at 2,156.1 GJ, leading to an energy intensity of 0.07 GJ per square meter gross floor area[164] - During the Year, the Group generated a total of 1,200 kg of non-hazardous waste, resulting in a non-hazardous waste intensity of 0.03 kg per square meter gross floor area[156] - The Group's hazardous waste consisted of waste printer cartridges, which did not have a material impact on operations[150] - The Group aims to improve resource efficiency and has encountered no incidents of non-compliance with laws related to energy and water resource usage[162] - The Group encourages the use of video conferencing to minimize the carbon footprint from overseas business trips[145] - The Group emphasizes waste reduction and recycling, with a focus on reducing the generation of non-hazardous waste[154] - The Group's carbon footprint is primarily due to electricity usage, which is accounted under Scope II emissions[141] - The Group has established clear protocols for the safe handling and storage of hazardous waste[148] - The Group consumed a total of 2,196 cubic meters of water during the year, resulting in a water intensity of 0.07 cubic meters per square meter of gross floor area[176] - The Group has implemented energy-efficient measures, including the installation of LED lighting and cooling systems, to minimize fuel and electricity consumption[170]
顺泰控股(01335) - 2020 - 年度财报