China Everbright Limited — Annual Report 2020

Apr 23, 2021

CONTENTS 目錄

		Pages 頁次
Corporate Profile	公司概況	2
Corporate Information	公司資料	3
Financial Highlights	財務概要	5
Information for Investors	給投資者的資料	6
Business Contacts	業務查詢	7
Biographical Details of Directors	董事簡歷	8
Main Operational Structure	主要業務架構	19
Chairman's Statement	董事長報告書	20
Management Discussion and Analysis	管理層論述及分析	24
Corporate Governance Report	企業管治報告	41
Report of the Directors	董事會報告書	82
Independent Auditor's Report	獨立核數師報告	112
Consolidated Statement of Profit or Loss	綜合損益表	124
Consolidated Statement of Comprehensive Income	綜合全面收益表	126
Consolidated Statement of Financial Position	綜合財務狀況表	127
Consolidated Statement of Changes in Equity	綜合權益變動表	129
Consolidated Statement of Cash Flows	綜合現金流量表	132
Notes to the Consolidated Financial Statements	綜合財務報告附註	135
Summary of Investment Properties	投資物業摘要	263
Definitions	釋義	264

CORPORATE PROFILE 公司概況

Shougang Concord Century Holdings Limited ("Shougang Century"; together with its subsidiaries, collectively the "Group") has been listed on the Stock Exchange since April 1992. Shougang Group Co., Ltd. (a state-owned enterprise under the direct supervision of the Beijing State-owned Assets Supervision and Administration Commission) and its controlled corporations, Bekaert and Li Ka Shing Foundation are the substantial Shareholders.

The Group is primarily involved in the following activities:

• 1. manufacturing of steel cords for radial tyres
• 1. manufacturing of sawing wires and hose wires

CORPORATE GOALS

• create an influential "Eastern" brand recognition in steel cord industry based on the principles of integrity, pragmatism and efficiency
• gradually become an enterprise commanding an annual manufacturing capacity in excess of 300,000 tonnes of high-quality steel cords
• become one of the three major manufacturers of steel cord industry in China

To learn more about Shougang Century, please visit http://www.shougangcentury.com.hk.

首長寶佳集團有限公司(「首長寶佳」;及其附 屬公司,統稱為「本集團」)於一九九二年四月 在聯交所上市。首鋼集團有限公司(北京國有 資產監督管理委員會直接監督之國有企業)與 其主要受控法團,Bekaert及李嘉誠基金會為 主要股東。

本集團主要從事下列業務:

• 1. 製造子午線輪胎用鋼簾線
• 1. 製造切割鋼絲及膠管鋼絲

公司的目標

• 本著誠信、務實、高效的原則在鋼簾線行 業中打造出一個具有影響力的「東方」品 牌
• 逐步發展成為一個擁有年產量300,000噸 級以上的精品鋼簾線製造企業
• 成為中國鋼簾線行業的三大生產商之一

欲 知 悉 首 長 寶 佳 更 多 資 訊, 請 瀏 覽 http://www.shougangcentury.com.hk。

CORPORATE INFORMATION 公司資料

As at 22 March 2021 於二零二一年三月二十二日

BOARD OF DIRECTORS

Executive Directors Su Fanrong (Chairman and Managing Director) Ye Qian Li Jinping

Non-executive Director

Adam Touhig

Independent Non-executive Directors

Yip Kin Man, Raymond Lam Yiu Kin Feng Yaoling

AUDIT COMMITTEE

Yip Kin Man, Raymond (Chairman) Lam Yiu Kin Feng Yaoling

REMUNERATION COMMITTEE

Yip Kin Man, Raymond (Chairman) Su Fanrong (Vice Chairman) Lam Yiu Kin Feng Yaoling

NOMINATION COMMITTEE

Su Fanrong (Chairman) Yip Kin Man, Raymond (Vice Chairman) Lam Yiu Kin Feng Yaoling

AUTHORISED REPRESENTATIVES

Su Fanrong Cheung Wa Ying

COMPANY SECRETARY

Cheung Wa Ying

董事會

執行董事 蘇凡荣(董事長兼董事總經理) 葉芊 李金平

非執行董事

Adam Touhig

獨立非執行董事

葉健民 林耀堅 馮耀嶺

審核委員會

葉健民(主席) 林耀堅 馮耀嶺

薪酬委員會

葉健民(主席) 蘇凡荣(副主席) 林耀堅 馮耀嶺

提名委員會

蘇凡荣(主席) 葉健民(副主席) 林耀堅 馮耀嶺

授權代表

蘇凡荣 張華瑛

公司秘書

張華瑛

CORPORATE INFORMATION 公司資料

As at 22 March 2021 於二零二一年三月二十二日

PRINCIPAL BANKERS

Agricultural Bank of China Bank of China Bank of China (Hong Kong) Limited China CITIC Bank Fubon Bank Industrial and Commercial Bank of China

AUDITOR

PricewaterhouseCoopers Certified Public Accountants and Registered PIE Auditor

INTERNAL AUDITOR Moore Advisory Services Limited

SHARE REGISTRAR

Tricor Tengis Limited Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong

REGISTERED OFFICE

Room 1215, 12/F., Honour Industrial Centre, 6 Sun Yip Street, Chai Wan, Hong Kong

COMPANY'S WEBSITE

http://www.shougangcentury.com.hk

WEBSITE FOR PUBLISHING LISTING RULES RELATED ANNOUNCEMENTS AND OTHER DOCUMENTS http://www.irasia.com/listco/hk/sccentury/

HKEX STOCK CODE

103

LISTING DATE 9 April 1992

主要往來銀行

中國農業銀行 中國銀行 中國銀行(香港)有限公司 中信銀行 富邦銀行 中國工商銀行

核數師 羅兵咸永道會計師事務所 執業會計師及註冊公眾利益實體核數師

內部核數師 大華國際諮詢有限公司

股份過戶登記處 卓佳登捷時有限公司 香港皇后大道東183號 合和中心54樓

註冊辦事處 香港柴灣新業街6號 安力工業中心12樓1215室

本公司網址 http://www.shougangcentury.com.hk

發放有關上市規則的公告及其他文件 之網址

http://www.irasia.com/listco/hk/sccentury/

聯交所股份代號 103

上市日期 一九九二年四月九日

FINANCIAL HIGHLIGHTS 財務概要

		2020 二零二零年	2019 二零一九年	Change 變動
Revenue from continuing	來自持續經營業務之
operations (HK\$'000)	營業額(港幣千元)	2,041,553	2,141,380	–4.7%
Gross profit from continuing	來自持續經營業務之毛利
operations (HK\$'000)	(港幣千元)	394,322	377,944	+4.3%
Gross profit margin from	來自持續經營業務之毛利率
continuing operations		19.3%	17.6%	+1.7pp百分點
Profit for the year (HK\$'000)	本年度溢利(港幣千元)	148,254	108,344	+36.8%
Earnings per share for profit	本公司擁有人應佔
for the year attributable	本年度溢利之
to the owners of the	每股盈利(港仙)
Company (HK cents)
Basic	基本	7.76	5.63	+37.8%
Diluted	攤薄	6.77	5.22	+29.7%
Total equity (HK\$'000)	權益總額(港幣千元)	1,645,571	1,415,072	+16.3%
Proposed final dividend per	建議末期每股股息(港仙)
share (HK cent(s))		1.5	1	+50.0%
Gearing ratio (Note)	負債比率(附註)	29.4%		50.8% –21.4pp百分點

Note:

附註:

Gearing ratio represented total interest bearing borrowings less bank balances and cash (including pledged bank deposits) divided by total equity.

負債比率指計息貸款總額減銀行結存及現金(包括已抵 押銀行存款)除以權益總額。

INFORMATION FOR INVESTORS 給投資者的資料

SHARE INFORMATION Board lot size:	2,000 Shares	股份資料 買賣單位:	2,000股
Shares outstanding as at the last trading day of 2020:	1,899,024,556 Shares	於二零二零年最後 交易日之發行股數:	1,899,024,556股
Market capitalisation as at the last trading day of 2020:	HK\$421,583,451	於二零二零年最後 交易日之市值:	港幣421,583,451元
Closing share price as at the last trading day of 2020:	HK\$0.222	於二零二零年最後 交易日之收市價:	港幣0.222元
Basic earnings per Share for 2020: Interim : HK1.87 cents Final : HK7.76 cents		於二零二零年年度之每股基本盈利: 中期 : 末期 :	港幣1.87仙 港幣7.76仙
Dividend for 2020: Interim Dividend : Nil Final Dividend :	HK1.5 cents per Share	於二零二零年年度之股息: 中期股息 : 無 末期股息 :	每股港幣1.5仙
KEY DATE Payment Date of 2020 Final Dividend: 2021 Annual General Meeting:	9 July 2021 7 June 2021	重要日期 派發二零二零年年度之 末期股息日期: 二零二一年股東 周年大會:	二零二一年 七月九日 二零二一年 六月七日
Closure of Register of Members for 2021 Annual General Meeting: Announcement of 2020 Final Results:	31 May to 7 June 2021 22 March 2021	就二零二一年股東 周年大會之暫停辦理 股份過戶登記日期: 二零二零年末期業績 公告:	二零二一年 五月三十一日 至六月七日 二零二一年 三月二十二日

INVESTOR RELATIONS CONTACT

Address	:	Room 1215, 12/F., Honour Industrial Centre,
		6 Sun Yip Street, Chai Wan, Hong Kong
Telephone	:	(852) 2527 2218
Fax	:	(852) 2861 3527
E-mail address	:	business_link@shougangcentury.com.hk
		ir@shougangcentury.com.hk
		scchl@shougangcentury.com.hk
Website	:	http://www.shougangcentury.com.hk

SHAREHOLDER ENQUIRIES

Any matters relating to your shareholding, e.g. transfer of Shares, change of name or address, lost share certificates and dividend warrants, should be sent in writing to:

Tricor Tengis Limited

Address	:	Level 54, Hopewell Centre,
		183 Queen's Road East, Hong Kong
Telephone	:	(852) 2980 1333
Fax	:	(852) 2810 8185
E-mail address	:	is-enquiries@hk.tricorglobal.com
Website	:	http://www.tricoris.com

投資者關係查詢

地址	:	香港柴灣新業街6號安力工業中心12樓
		1215室
電話	:	(852) 2527 2218
傳真	:	(852) 2861 3527
電郵地址 :		business_link@shougangcentury.com.hk
		ir@shougangcentury.com.hk
		scchl@shougangcentury.com.hk
網址	:	http://www.shougangcentury.com.hk

股東查詢

如 閣下對所持股份有任何查詢,例如股份轉 讓、轉名或更改地址、報失股票及股息單,請 致函如下:

卓佳登捷時有限公司

地址	:	香港皇后大道東183號 合和中心54樓
電話 傳真	: :	(852) 2980 1333 (852) 2810 8185
電郵地址 : 網址	:	is-enquiries@hk.tricorglobal.com http://www.tricoris.com

BUSINESS CONTACTS 業務查詢

Jiaxing Eastern Steel Cord Co., Ltd. 嘉興東方鋼簾線有限公司

Address:	1 Dong Fang Road, Jiaxing Economic Development Zone
	Zhejiang Province, PRC
地址:	中國浙江省嘉興市經濟開發區東方路1號
Postal code:	314003
郵編:
Telephone:	(86) 573 8222 2790
電話:
Fax:	(86) 573 8221 3500
傳真:
Website:	http://www.jesc.com.cn
網址:
E-mail address:	jesc@jesc.com.cn
電郵地址:

Tengzhou Eastern Steel Cord Co., Ltd. 滕州東方鋼簾線有限公司

Address:	1 Dong Fang Road, Tengzhou Economic Development Zone
	Shandong Province, PRC
地址:	中國山東省滕州市經濟開發區東方路1號
Postal code:	277500
郵編:
Telephone:	(86) 632 525 2100
電話:
Fax:	(86) 632 525 2111
傳真:
Website:	http://www.tesc.com.cn
網址:
E-mail address:	tesc@tesc.com.cn
電郵地址:

Shougang Concord Century (Shanghai) Management Co., Ltd. 首長寶佳(上海)管理有限公司

Address:	Room 2505, Tower 1, SOHO Tianshan Plaza
	No.421 Ziyun Road, Changning District, Shanghai, PRC
地址:	中國上海市長寧區紫雲路421號SOHO天山廣場T1-2505室
Postal code:	200051
郵編:
Telephone:	(86) 21 6291 8806
電話:
Fax:	(86) 21 6291 8805
傳真:

Mr. Su Fanrong, aged 53, joined the Group as a deputy general manager of the Company in January 2015 and was appointed as the executive deputy managing Director on 1 December 2015. Mr. Su has re-designated as the chairman of the Company and acted as the chairman and vicechairman of the nomination committee and remuneration committee of the Company respectively since 18 January 2018, and he has been appointed as the managing Director on 31 January 2018. At present, Mr. Su holds directorship in all wholly owned subsidiaries of the Company. He also acts as the deputy general manager of Shougang HK. He holds a Master degree in Business Administration from Missouri State University and Bachelor degree specialising in Pressure Processing from University of Science and Technology Beijing. He joined Shougang Group in 1990 and had been working in various companies under Shougang Group during the period from the same year to 2014. Mr. Su has over 25 years of sales and management experience in the steel industry.

Other than his directorship and position disclosed above, Mr. Su does not hold any directorship in the last three years in public companies the securities of which are listed on any securities market in Hong Kong or overseas. Mr. Su does not have any relationship with any other Directors, senior management or substantial Shareholders or controlling Shareholders. At the date of this annual report, he does not have any interest in securities of the Company within the meaning of Part XV of the SFO. A service contract was entered into between Mr. Su and the Company for a term commencing from 1 January 2021 and ending on 31 December 2023 to act as a chairman of the Company. The service contract may be terminated by either party by giving to other party not less than three months' notice without payment of any compensation (other than statutory compensation). However, he is subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the Articles. Mr. Su's monthly salaries is entitled to HK\$220,000 at present. The emoluments of Directors are determined by reference to the Company's performance and profitability, as well as remuneration benchmark in the industry and the prevailing market conditions.

蘇凡荣先生,年五十三歲,於二零一五年一月 加入本集團為本公司副總經理,並於二零一五 年十二月一日獲委任為董事常務副總經理。蘇 先生自二零一八年一月十八日起獲調任為本 公司董事長及分別擔任本公司提名委員會主 席及薪酬委員會副主席,並於二零一八年一月 三十一日獲委任為董事總經理。目前,蘇先生 擔任本公司所有全資附屬公司之董事職位。彼 亦擔任首控香港之副總經理。彼持有美國密蘇 裡州立大學工商管理碩士及北京科技大學壓 力加工專業學士學位。彼於一九九零年加入首 鋼集團及於同年至二零一四年期間,任職於首 鋼集團旗下多間公司。蘇先生在鋼鐵行業有逾 二十五年的銷售及管理經驗。

除上述所披露之董事職務及職位外,蘇先生於 過去三年內並無於香港或海外任何證券巿場上 巿的公眾公司擔任任何董事職務。蘇先生與其 他董事、高級管理人員或主要股東或控股股東 概無任何關係。於本年報之日期,就證券及期 貨條例第XV部涵義,彼並無持有本公司任何證 券權益。蘇先生與本公司簽訂作為本公司董事 長之服務合約,期限由二零二一年一月一日起 至二零二三年十二月三十一日止。服務合約可 由任何一方給予另一方不少於三個月通知期而 終止,而無須支付任何賠償(法定賠償金則除 外)。惟彼須按章程細則規定於本公司之股東 周年大會上輪值告退及膺選連任。蘇先生目前 可獲收取每月港幣220,000元之薪金。董事之 酬金按本公司之業績及盈利狀況,亦以業界及 當時市場環境而釐訂。

Save as disclosed above, there are no other matters relating to Mr. Su's particulars as being a Director that need to be brought to the attention of the Shareholders and there is no other information which is required to be disclosed pursuant to any of the requirements of the provisions under Rule 13.51(2) of the Listing Rules.

Mr. Ye Qian, aged 36, was appointed as a non-executive Director on 28 June 2019. Mr. Ye has re-designated as an executive Director since 1 January 2020. He graduated from the University of Wales with a Master degree in Business Administration. Prior to joining Shougang Fund, Mr. Ye had held senior positions in Great Wall Motor Company Limited, China Chamber of International Commerce and Representative Office in Hong Kong & Macao of China Council for the Promotion of International Trade. Since Mr. Ye joined Shougang Fund in 2014, he had served as an assistant to general manager of Beijing West Fund Management Co., Ltd. and a deputy director of PPP Fund of Shougang Fund. He has participated in establishment and investment of numerous funds. He currently serves as an executive director of Shougang Fund and a general manager of Beijing Shouyuan Xinneng Investment Management Co., Ltd.. In all, Mr. Ye has rich experience in automotive OEM industry, government authorities and foreign-related business management department and also in corporate services and project investment.

除上文所披露者外,蘇先生並無有關彼作為董 事之任何其他事宜須知會股東,以及並無其他 須根據上市規則第13.51(2)條規定須予披露的 資料。

葉芊先生,年三十六歲,於二零一九年六月 二十八日獲委任為非執行董事。葉先生自二零 二零年一月一日起獲調任為執行董事。彼畢業 於威爾士大學,持有工商管理碩士學位。在加 入首鋼基金前,葉先生曾於長城汽車股份有限 公司、中國國際商會及中國國際貿易促進委員 會駐香港澳門代表處擔任高級職位。自葉先生 於二零一四年加入首鋼基金以來,彼曾擔任北 京京西創業投資基金管理有限公司總經理助理 及首鋼基金PPP基金副總監。彼曾參與多項基 金的設立和投資。彼目前擔任首鋼基金執行董 事及北京首元新能投資管理有限公司總經理。 總括而言,葉先生於汽車主機廠行業、政府機 關、涉外業務管理部門、企業服務和項目投資 擁有豐富經驗。

Other than his directorship disclosed above, Mr. Ye has not previously held any position with the Group and does not hold any directorship in the last three years in public companies the securities of which are listed on any securities market in Hong Kong or overseas. Mr. Ye does not have any relationship with any other Directors, senior management or substantial Shareholders or controlling Shareholders. At the date of this annual report, he does not have any interest in securities of the Company within the meaning of Part XV of the SFO. Following Mr. Ye's redesignation as an executive Director, the service contract made between him as a non-executive Director and the Company was terminated. A new service contract was entered into between Mr. Ye and the Company for a term commencing from 1 January 2020 and ending on 31 December 2022 to act as an executive Director. However, he will hold office until the annual general meeting of the Company, at which time he will be eligible for re-election in accordance to the Articles and thereafter will be subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the Articles. Mr. Ye has voluntarily declined any director's emoluments. The emoluments of Directors are determined by reference to the Company's performance and profitability, as well as remuneration benchmark in the industry and the prevailing market conditions.

Save as disclosed above, there are no other matters relating to Mr. Ye's particulars as being a Director that need to be brought to the attention of the Shareholders and there is no other information which is required to be disclosed pursuant to any of the requirements of the provisions under Rule 13.51(2) of the Listing Rules.

除上述所披露之董事職務外,葉先生從前並無 於本集團擔任任何職位,且於過去三年內並無 於香港或海外任何證券巿場上巿的公眾公司擔 任任何董事職務。葉先生與其他董事、高級管 理人員或主要股東或控股股東概無任何關係。 於本年報之日期,就證券及期貨條例第XV部涵 義,彼並無持有本公司任何證券權益。葉先生 調任為執行董事後,彼作為非執行董事與本公 司訂立之服務合約已被終止。葉先生作為執行 董事與本公司簽訂之新服務合約,期限由二零 二零年一月一日起至二零二二年十二月三十一 日止。根據章程細則規定,惟彼之任期將於股 東周年大會屆滿及將有資格重選連任及後可根 據章程細則於股東周年大會上輪值告退及重選 連任。葉先生已自願放棄接受任何董事酬金。 董事之酬金按本公司之業績及盈利狀況,亦以 業界及當時市場環境而釐訂。

除上文所披露者外,葉先生並無有關彼作為董 事之任何其他事宜須知會股東,以及並無其他 須根據上市規則第13.51(2)條規定須予披露的 資料。

Mr. Li Jinping, aged 44, was appointed as an executive Director with effect from 1 January 2020. Mr. Li was graduated from Shandong University of Finance and Economics with a Master degree in Accounting. He is a senior accountant and a Public Valuer. Mr. Li had worked in Beijing Supervision Bureau of Ministry of Finance of PRC (formerly known as "Office of the Financial Supervision Commissioner of the Ministry of Finance of the People's Republic of China in Beijing") for approximately 18 years and held various senior positions including the deputy division director and division director. He was principally engaged in the work relating to supervision, inspection, risk control management and so on. In 2019, Mr. Li joined Shougang HK and currently serves as a financial controller of Shougang HK. In all, Mr. Li has extensive experience and expertise in financial supervision and risk control.

Other than his directorship disclosed above, Mr. Li has not previously held any position with the Group and does not hold any directorship in the last three years in public companies the securities of which are listed on any securities market in Hong Kong or overseas. Mr. Li does not have any relationship with any other Directors, senior management or substantial Shareholders or controlling Shareholders. At the date of this annual report, he does not have any interest in securities of the Company within the meaning of Part XV of the SFO. A service contract was entered into between Mr. Li and the Company for a term commencing from 1 January 2020 and ending on 31 December 2022. However, he will hold office until the annual general meeting of the Company, at which time he will be eligible for re-election in accordance to the Articles and thereafter will be subject to retirement by rotation and reelection at the annual general meetings of the Company in accordance with the Articles. Mr. Li has voluntarily declined any director's emoluments. The emoluments of Directors are determined by reference to the Company's performance and profitability, as well as remuneration benchmark in the industry and the prevailing market conditions.

李金平先生,年四十四歲,於二零二零年一月 一日獲委任為執行董事。李先生畢業於山東財 經大學,持有會計學碩士學位。彼為高級會計 師及資產評估師。李先生曾於中國財政部北京 監管局(前稱「中華人民共和國財政部駐北京 市財政監察專員辦事處」)工作約十八年,並擔 任多個高級職位包括副處長和處長。彼主要從 事監督檢查和風控管理等工作。李先生於二零 一九年加入首控香港,目前擔任首控香港財務 總監。總括而言,李先生於財務監管及風險控 制領域擁有豐富經驗和專業知識。

除上述所披露之董事職務外,李先生從前並無 於本集團擔任任何職位,且於過去三年內並無 於香港或海外任何證券巿場上巿的公眾公司擔 任任何董事職務,李先生與其他董事、高級管 理人員或主要股東或控股股東概無任何關係。 於本年報之日期,就證券及期貨條例第XV部涵 義,彼並無持有本公司任何證券權益。李先生 與本公司簽訂服務合約,期限由二零二零年一 月一日起至二零二二年十二月三十一日止。根 據章程細則規定,惟彼之任期將於股東周年大 會屆滿及將有資格重選連任及後可根據章程細 則於股東周年大會上輪值告退及重選連任。李 先生已自願放棄接受任何董事酬金。董事之酬 金按本公司之業績及盈利狀況,亦以業界及當 時市場環境而釐訂。

Save as disclosed above, there are no other matters relating to Mr. Li's particulars as being a Director that need to be brought to the attention of the Shareholders and there is no other information which is required to be disclosed pursuant to any of the requirements of the provisions under Rule 13.51(2) of the Listing Rules.

Mr. Adam Touhig, aged 52, was appointed as a nonexecutive Director on 15 January 2021. He was appointed as the senior vice president of rubber reinforcement Asia in Bekaert group on 1 June 2020.

Prior to joining Bekaert group, Mr. Touhig had held various management positions including global account director, vice president of commercial and program management, regional senior vice president, company president, chairman and board member in several companies for GKN Automotive Limited, including GKN Driveline (India) Ltd, GKN Driveline Japan Ltd, GKN Driveline Korea Ltd, Taiway Limited and GKN Driveline Malaysia Sdn. Bhd.. He also held directorships in the abovementioned companies in the past 3 years. In all, Mr. Touhig has over 30 years of extensive experience in the tier 1 automotive industry.

除上文所披露者外,李先生並無有關彼作為董 事之任何其他事宜須知會股東,以及並無其他 須根據上市規則第13.51(2)條規定須予披露的 資料。

Adam Touhig先生,年五十二歲,於二零二一 年一月十五日獲委任為非執行董事。彼於二零 二零年六月一日獲委任為Bekaert集團亞洲區 橡膠增強部之高級副總裁。

於加入Bekaert集團之前,Touhig先生於GKN Automotive Limited的多家公司,包括於GKN Driveline (India) Ltd、GKN Driveline Japan Ltd、GKN Driveline Korea Ltd、台惟工業股 份有限公司及GKN Driveline Malaysia Sdn. Bhd.擔任多個管理層職位,包括全球客戶總 監、商業和計劃管理副總裁、地區高級副總 裁、公司總裁、董事長及董事會成員。於過去 三年,彼亦於上述公司持有董事職位。總括而 言,Touhig先生於一級汽車行業擁有超過三十 年之豐富經驗。

Other than his directorship disclosed above, Mr. Touhig has not previously held any position with the Company and/or its subsidiaries, and does not hold any directorship in the last three years in public companies the securities of which are listed on any securities market in Hong Kong or overseas. Mr. Touhig does not have any relationship with any other Directors, senior management, substantial Shareholders or controlling Shareholders of the Company. As the date of this annual report, he does not have any interest in securities of the Company within the meaning of Part XV of the SFO. There is no service contract between Mr. Touhig and the Company since he is nominated by Bekaert as a non-executive director of the Company according to the subscription agreement entered into by the Company and Bekaert dated 22 September 2006 and further agreement between Bekaert and the Company on 24 February 2015. He will hold office until the next following general meeting of the Company, at which time he will be eligible for re-election in accordance to the Articles and thereafter will be subject to retirement by rotation and reelection at the annual general meetings of the Company in accordance with the Articles. Mr. Touhig will be entitled to receive a director's fee of HK\$150,000 per annum which has been recommended by the remuneration committee of the Company and determined by the Board with reference to the experience and duties of Mr. Touhig and his role played in the Board. In all, the emoluments of Directors are determined by reference to the Company's performance and profitability, as well as remuneration benchmark in the industry and the prevailing market conditions.

Save as disclosed above, there are no other matters relating to Mr. Touhig's particulars as being a Director that need to be brought to the attention of the Shareholders and there is no other information which is required to be disclosed pursuant to any of the requirements of the provisions under Rule 13.51(2) of the Listing Rules.

除上述所披露之董事職務外,Touhig先生從前 並無於本公司及╱或其附屬公司擔任任何職 位,且於過去三年內並無於香港或海外任何證 券巿場上巿的公眾公司中擔任任何董事職務。 Touhig先生與本公司任何其他董事、高級管理 人員、主要股東或控股股東概無任何關係。於 本年報之日期,就證券及期貨條例第XV部涵 義,彼並無持有本公司任何證券權益。Touhig 先生與本公司並無服務合約,因彼是根據本 公司於二零零六年九月二十二日與Bekaert簽 訂之認購協議及於二零一五年二月二十四日 Bekaert與本公司的進一步協議而獲Bekaert 委派為本公司之非執行董事。根據章程細則規 定,彼之任期將於下一次股東大會上屆滿及將 有資格重選連任及後可根據章程細則於股東周 年大會上輪值告退及重選連任。Touhig先生經 由本公司薪酬委員會建議及董事會決定將有權 每年收取港幣150,000元之董事袍金,該董事 袍金乃根據Touhig先生之經驗及職責,以及其 於董事會發揮之作用而釐訂。總括而言,董事 之酬金乃按本公司之業績及盈利狀況,亦以業 界及當時市場環境而釐訂。

除上文所披露者外,Touhig先生並無有關彼作 為董事之其他事宜須知會本公司股東,以及並 無其他須根據上市規則第13.51(2)條規定須予 披露的資料。

Mr. Yip Kin Man, Raymond (Alias: Ip Kin Man), aged 74, holds a Bachelor degree in Arts with honors from the University of Hong Kong. He was appointed as an independent non-executive Director in 1993. He also serves as the chairman of each of the audit committee and remuneration committee and acts as the vice-chairman of the nomination committee of the Company since 18 May 2018. Mr. Yip has also acted as an independent nonexecutive director of Shougang Grand from January 2007 until 31 December 2019. He also acts as an independent non-executive director of BeijingWest Industries since 27 January 2014. Mr. Yip is a practising solicitor, notary public and China-Appointed Attesting Officer. He has extensive experience in legal profession.

Other than the directorship disclosed above, Mr. Yip has not previously held any position with the Group, and is independent of and not connected with the Directors, chief executives or substantial Shareholders or controlling Shareholders of the Company or the subsidiaries of the Company or an associate of any of them, and he does not hold any directorship in the last three years in public companies the securities of which are listed on any securities market in Hong Kong or overseas. At the date of this annual report, he does not have any interest in securities of the Company within the meaning of Part XV of the SFO. A service contract was entered into between Mr. Yip and the Company for a term of three years commencing from 1 January 2020. However, he is subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the Articles. He will receive a director's fee as the Company may determine from time to time. At present, he receives a director's fee of HK\$240,000 per annum. The emoluments of Directors are determined by reference to the Company's performance and profitability, as well as remuneration benchmark in the industry and the prevailing market conditions.

Save as disclosed above, there are no other matters relating to Mr. Yip's particulars as being a Director that need to be brought to the attention of the Shareholders and there is no other information which is required to be disclosed pursuant to any of the requirements of the provisions under Rule 13.51(2) of the Listing Rules.

葉健民先生,年七十四歲,持有香港大學榮譽 文學士學位。彼於一九九三年獲委任為獨立非 執行董事。彼亦分別擔任本公司審核委員會及 薪酬委員會之主席以及自二零一八年五月十八 日起擔任本公司提名委員會副主席。葉先生亦 自二零零七年一月起擔任首長四方之獨立非 執行董事,直至二零一九年十二月三十一日為 止。自二零一四年一月二十七日起,彼獲委任 為京西重工之獨立非執行董事。葉先生乃執業 律師、國際公證人及中國委託公證人,彼在法 律專業有豐富的經驗。

除上述所披露之董事職務外,葉先生從前並無 於本集團擔任任何職位,亦獨立於及與本公司 或其附屬公司之董事、最高行政人員或主要股 東或控股股東或彼等之聯繫人概無關連。葉先 生於過去三年內亦無於香港或海外任何證券巿 場上巿的公眾公司擔任任何董事職務。於本年 報之日期,就證券及期貨條例第XV部涵義,彼 並無持有本公司任何證券權益。葉先生與本公 司簽訂為期三年之服務合約,由二零二零年一 月一日起生效,惟彼須按章程細則規定於本公 司之股東周年大會上輪值告退及膺選連任。彼 將收取不時由本公司釐訂之董事袍金。現時, 彼每年收取港幣240,000元之董事袍金,董事 之酬金按本公司之業績及盈利狀況,亦以業界 及當時市場環境而釐訂。

除上文所披露者外,葉先生並無有關彼作為董 事之任何其他事宜須知會股東,以及並無其他 須根據上市規則第13.51(2)條規定須予披露的 資料。

Mr. Lam Yiu Kin, aged 66, is a fellow member of each of the Association of Chartered Certified Accountants the Institute of Chartered Accountants in England & Wales, the Chartered Accountants of Australia and New Zealand and Hong Kong Institute of Certified Public Accountants ("HKICPA"). He graduated from The Hong Kong Polytechnic University ("Polytechnic University") with a higher diploma in Accountancy in 1975. He was conferred an Honorary Fellow of Polytechnic University in 2002. Mr. Lam was appointed as an independent non-executive Director and a member of each of the audit committee, nomination committee and remuneration committee of the Company in August 2015. He is also an independent non-executive director of each of Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Limited, Spring Real Estate Investment Trust, Global Digital Creations Holdings Limited, COSCO SHIPPING Ports Limited, Nine Dragons Paper (Holdings) Limited, WWPKG Holdings Company Limited, CITIC Telecom International Holdings Limited, Bestway Global Holding Inc., Vital Innovations Holdings Limited (formerly known as "Vital Mobile Holdings Limited") (which he held directorship until 31 October 2020) and Topsports International Holdings Limited. Mr. Lam resigned as an independent non-executive director of Mason Group Holdings Limited with effect from 24 May 2017. Mr. Lam had taken the position of an adjunct professor in the School of Accounting and Finance of Polytechnic University until 31 August 2016. He was previously a member of the Listing Committee and the Financial Reporting Advisory Panel of the Stock Exchange from 1997 to 2003, a committee member of HKICPA from 1994 to 2009, a partner of PricewaterhouseCoopers from 1993 to 2013 and a member of the Finance Management Committee of the Hong Kong Management Association until 7 July 2016. In all, Mr. Lam has over 40 years of extensive experience in accounting, auditing and business consulting.

林耀堅先生,年六十六歲,分別為英國特許公 認會計師公會、英格蘭及威爾斯特許會計師 公會、澳洲及新西蘭特許會計師公會及香港會 計師公會(「香港會計師公會」)之資深會員。 彼於一九七五年畢業於香港理工大學(「理工 大學」),取得會計學高級文憑。彼並於二零零 二年獲頒授理工大學榮譽院士。林先生於二零 一五年八月獲委任為獨立非執行董事及分別 為審核委員會、提名委員會及薪酬委員會之成 員。彼亦分別為上海復旦張江生物醫藥股份有 限公司、春泉產業信託、環球數碼創意控股有 限公司、中遠海運港口有限公司、玖龍紙業(控 股)有限公司、縱橫遊控股有限公司、中信國際 電訊集團有限公司、榮威國際控股有限公司、 維太創科控股有限公司(前稱「維太移動控股 有限公司」(彼於此持有董事職位直至二零二 ) 零年十月三十一日止)及滔搏國際控股有限公 司。林先生自二零一七年五月二十四日起辭任 茂宸集團控股有限公司之獨立非執行董事。 林先生曾為理工大學會計及金融學院的客席 教授,直至二零一六年八月三十一日。彼曾於 一九九七年至二零零三年擔任聯交所上市委員 會成員及財務匯報諮詢小組成員,於一九九四 年至二零零九年擔任香港會計師公會委員會委 員,於一九九三年至二零一三年擔任羅兵咸永 道會計師事務所合夥人,及直至二零一六年七 月七日止擔任香港管理專業協會財務管理委員 會委員。總括而言,林先生擁有超過四十年於 會計、審核及業務諮詢豐富經驗。

Other than his directorship disclosed above, Mr. Lam has not previously held any position with the Group, and is independent of and not connected with the Directors, chief executives or substantial Shareholders or controlling Shareholders of the Company or the subsidiaries of the Company or an associate of any of them. Save as disclosed above, he does not have any directorship in the last three years in public companies the securities of which are listed on any securities market in Hong Kong or overseas. At the date of this annual report, he does not have any interest in the Company within the meaning of Part XV of the SFO. A service contract was entered into between Mr. Lam and the Company for a term commencing from 1 January 2021 and ending on 31 December 2023. However, he is subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the Articles. He will receive a director's fee as the Company may determine from time to time. At present, he receives a director's fee of HK\$240,000 per annum. The emoluments of Directors are determined by reference to the Company's performance and profitability, as well as remuneration benchmark in the industry and the prevailing market conditions.

Save as disclosed above, there are no other matters relating to Mr. Lam's particulars as being a Director that need to be brought to the attention of the Shareholders and there is no other information which is required to be disclosed pursuant to any of the requirements of the provisions under Rule 13.51(2) of the Listing Rules.

Mr. Feng Yaoling, aged 63, was appointed as an independent non-executive Director and a member of each of the audit committee, nomination committee and remuneration committee of the Company with effect from 1 January 2020. Mr. Feng was a professor-level senior engineer who is awarded special government subsidy by the State Council of PRC as a specialist. He graduated from Beijing University of Chemical Technology with a Bachelor degree in Engineering in January 1982.

除上述所披露之董事職務外,林先生從前並無 於本集團擔任任何職位,亦獨立於及與本公司 或其附屬公司之董事、最高行政人員或主要股 東或控股股東或彼等之聯繫人概無關連。除上 文所披露者外,彼於過去三年內並無於香港或 海外任何證券巿場上巿的公眾公司擔任任何董 事職務。於本年報之日期,就證券及期貨條例 第XV部涵義,彼並無持有本公司任何權益。林 先生與本公司簽訂服務合約,期限由二零二一 年一月一日起至二零二三年十二月三十一日 止。惟彼須按章程細則規定於本公司之股東周 年大會上輪值告退及膺選連任。彼將收取不時 由本公司釐訂之董事袍金。現時,彼每年收取 港幣240,000元之董事袍金。董事之酬金按本 公司之業績及盈利狀況,亦以業界及當時市場 環境而釐訂。

除上文所披露者外,林先生並無有關彼作為董 事之任何其他事宜須知會股東,以及並無其他 須根據上市規則第13.51(2)條規定須予披露的 資料。

馮耀嶺先生,年六十三歲,獲委任為獨立非執 行董事及分別為本公司審核委員會、提名委員 會及薪酬委員會之成員,由二零二零年一月一 日起生效。馮先生為教授級高級工程師,獲中 國國務院授予作為專家之政府特殊津貼。彼於 一九八二年一月畢業於北京化工學院,持有工 學學士學位。

Mr. Feng is currently a deputy chief engineer of Eve Rubber Institute Co., Ltd. and he has over 35 years of extensive experience in the tyre manufacturing industry. Mr. Feng was previously the chief engineer, senior engineer, deputy general manager cum chief engineer and director of Aeolus Tyre Co., Ltd. ("Aeolus Tyre") (formerly known as "Henan Tyre Factory" and "Henan Tyre Co., Ltd.") from 1982 to 2017. Aeolus Tyre was listed on the Main Board of the Shanghai Stock Exchange in October 2003 (Stock code: 600469).

The following particulars relating to Mr. Feng are disclosed pursuant to Rule 13.51(2)(n)(iv) of the Listing Rules:

On 6 March 2015, Aeolus Tyre received the administrative penalty decision including warnings and a fine of RMB600,000 from the Henan regulatory bureau of the China Securities Regulatory Commission, due to its misstatement of accounting information in the 2011 and 2012 annual reports which violated the "Measures for the Administration of Information Disclosure of Listed Companies". Mr. Feng, as a then senior management of Aeolus Tyre, among others, also received the "Decision to Impose Training Order to Zheng Yuli, Fan Rende and others in Total 7 Persons" and the "Decision to Issue Warning Letters to Zheng Yuli, Fan Rende and others in Total 10 Persons" (the "Decisions"). Pursuant to the Decisions, Mr. Feng needed to participate in the training of laws and regulations related to listed companies, and was warned and recorded in the Integrity Archive of Securities and Futures. Mr. Feng confirms that (i) remedial actions have been taken by Aeolus Tyre which include correcting and restating figures in the relevant annual reports; (ii) the proceedings regarding the aforesaid matter has been completely settled; and (iii) the Decisions have been fully complied with and no further administrative penalties or liabilities were outstanding by Aeolus Tyre or Mr. Feng regarding the aforesaid matter.

馮先生現為怡維怡橡膠研究院有限公司副總工 程師,彼在輪胎製造行業擁有超過三十五年的 豐富經驗。馮先生於一九八二年至二零一七年 在風神輪胎股份有限公司(「風神輪胎」(前稱 ) 「河南輪胎廠」及「河南輪胎股份有限公司」)曾 擔任總工程師、高級工程師、副總經理兼總工 程師及董事。風神輪胎股份有限公司在二零零 三年十月於上海證券交易所主板上市(股份代 號:600469)。

根據上市規則第13.51(2)(n)(iv)條,以下披露有 關馮先生的詳情:

於二零一五年三月六日,風神輪胎收到中國證 券監督管理委員會河南監管局的行政處罰決 定,包括警告和罰款人民幣600,000元,因其 在二零一一年及二零一二年之年度報告中,於 會計信息存在虛假記載,違反了《上市公司信 息披露管理辦法》。馮先生(作為風神輪胎的其 中時任高級管理人員)亦收到《關於對鄭玉力、 範仁德等七人實施責令參加培訓措施的決定》 和《關於對鄭玉力、範仁德等十人實施出具警 示函措施的決定》(「該等決定」)。根據該等決 定,馮先生需要參加上市公司相關法律法規培 訓,並被警告並記入證券期貨誠信檔案。馮先 生確認:(i)風神輪胎已採取補救措施,包括在 相關年度報告中更正和重申數字;(ii)與上述事 項有關的訴訟已完全解決;以及(iii)該等決定 已完全得到遵守,風神輪胎或馮先生就上述事 項沒有進一步的行政處罰或任何未償付責任。

Other than his directorship disclosed above, Mr. Feng has not previously held any position with the Group and is independent of and not connected with the Directors, chief executives or substantial Shareholders or controlling Shareholders of the Company or the subsidiaries of the Company or an associate of any of them. Save as disclosed above, Mr. Feng does not hold any directorship in the last three years in public companies the securities of which are listed on any securities market in Hong Kong or overseas. At the date of this annual report, he does not have any interest in securities of the Company within the meaning of Part XV of the SFO. A service contract was entered into between Mr. Feng and the Company for a term commencing from 1 January 2020 and ending on 31 December 2022. However, he will hold office until the next following general meeting of the Company, at which time he will be eligible for re-election in accordance to the Articles and thereafter will be subject to retirement by rotation and re-election at the annual general meetings of the Company in accordance with the Articles. Mr. Feng will receive a director's fee as the Company may determine from time to time. At present, he receives a director's fee of HK\$240,000 per annum. The emoluments of Directors are determined by reference to the Company's performance and profitability, as well as remuneration benchmark in the industry and the prevailing market conditions.

Save as disclosed above, there are no other matters relating to Mr. Feng's particulars as being a Director that need to be brought to the attention of the Shareholders and there is no other information which is required to be disclosed pursuant to any of the requirements of the provisions under Rule 13.51(2) of the Listing Rules.

除上述所披露之董事職務外,馮先生從前並無 於本集團擔任任何職位,亦獨立於及與本公司 或其附屬公司之董事、最高行政人員或主要股 東或控股股東或彼等之聯繫人概無關連。除上 文所披露者外,馮先生於過去三年內並無於香 港或海外任何證券巿場上巿的公眾公司擔任任 何董事職務。於本年報之日期,就證券及期貨 條例第XV部涵義,彼並無持有本公司任何證券 權益。馮先生與本公司簽訂服務合約,期限由 二零二零年一月一日起至二零二二年十二月 三十一日止。根據章程細則規定,彼之任期將 於下一次股東大會屆滿及將有資格重選連任及 後可根據章程細則於股東周年大會上輪值告退 及重選連任。馮先生將收取不時由本公司釐訂 之董事袍金,現時,彼每年收取港幣240,000 元之董事袍金。董事之酬金按本公司之業績及 盈利狀況,亦以業界及當時市場環境而釐訂。

除上文所披露者外,馮先生並無有關彼作為董 事之任何其他事宜須知會股東,以及並無其他 須根據上市規則第13.51(2)條規定須予披露的 資料。

MAIN OPERATIONAL STRUCTURE 主要業務架構

Manufacturing of Steel Cords for Radial Tyres 製造子午線輪胎 用鋼簾線

Jiaxing Eastern Steel Cord Co., Ltd. (Zhejiang, PRC ) 嘉興東方鋼簾線 有限公司 (中國,浙江) http://www.jesc.com.cn 100%

100% Tengzhou Eastern Steel Cord Co., Ltd. (Shandong, PRC ) 滕州東方鋼簾線 有限公司 (中國,山東) http://www.tesc.com.cn

Shougang Concord Century Holdings Limited 首長寶佳集團有限公司

http://www.shougangcentury.com.hk

Provision of Management and Consulting Services in the Mainland (for Steel Cord Segment) to the Group 向本集團提供國內 管理和諮詢服務

100%

Dear Shareholders,

RESULTS FOR THE YEAR

On behalf of the fellow members of the Board, I am pleased to present the audited annual results of the Group for the year ended 31 December 2020.

During the year under review, the Group faced severe challenges. Apart from the ongoing trade dispute between China and the United States, the COVID-19 pandemic outbreak in early 2020 impeded economic activities and transportation across China. To effectively contain the pandemic, the Chinese government implemented lockdown measures in various cities since January 2020, which in turn caused China's economic growth to shrink by 6.8% year-on-year in the first quarter of 2020.

Fortunately, as various industries in China gradually restored business since mid-April 2020, together with the domestic circulation policy adopted by the Chinese government, domestic economic and social activities gradually returned to normal. In 2020, the total retail sales of consumer goods increased by 0.9% and 4.6% year-on-year in the third quarter and the fourth quarter respectively. Thanks to the notable increase of domestic demand, different sectors in China overcame the hardships in the pandemic. In 2020, China's gross domestic product ("GDP") grew by 2.3% yearon-year and surpassed RMB100 trillion for the first time, making China the only major economy in the world to achieve positive economic growth in such difficult year.

The decreases in raw material costs and export sales dragged down our average selling price and total revenue. However, thanks to the unremitting efforts of our sales team, the total sales volumes slightly grew by 1% year-on-year in 2020. Besides, through actively adopting stringent cost reduction measures, the Group lowered its purchasing and production costs, therefore gross profit margin from the continuing operations improved by 1.7 percentage points to 19.3%. In addition to the increase in gross profit, the finance costs declined as the Group strived to cut interest-bearing debt, increasing the Group's net profit by 36.8% year-onyear from HK\$108,344,000 to HK\$148,254,000. The results manifested the distinctive competence of our core business, which helps us adapt quickly to the challenging operating environment, while producing high-quality steel cords for our customers in both domestic and international markets.

致列位股東:

本年度業績

本人謹代表董事會成員欣然提呈本集團截至二 零二零年十二月三十一日止年度之經審核年度 業績。

於本年度回顧,本集團面臨嚴峻挑戰。除了中 美之間持續的貿易爭端外,二零二零年初爆發 的新冠肺炎疫情均對中國的經濟活動和運輸產 生了不利影響。為了有效控制疫情的爆發,中 國政府自二零二零年一月起對多個城市實施了 封鎖措施。這導致中國的經濟增長於二零二零 年第一季度同比收縮6.8%。

猶幸,透過二零二零年四月中旬起中國各行業 陸續重開,加上中國政府推行內循環政策,國 內經濟和社會活動逐漸開始恢復正常。於二零 二零年,第三季和第四季社會消費品零售總額 分別同比增長0.9%和4.6%,隨著國內需求顯 著增長,中國多個行業亦逐漸擺脫了疫情的困 擾。在二零二零年,中國生產總值(「GDP」)首 次突破人民幣100萬億元,同比增長2.3%,使 中國在這困難年度成為全球唯一實現經濟正增 長的主要經濟體。

儘管原材料成本及出口銷售量下跌,導致我們 的平均售價和總營業額減少,但在我們銷售團 隊的不懈努力下,二零二零年的總銷售量比去 年輕微增長1%。此外,本集團積極採取嚴格 的成本控制措施,積極降低採購和生產成本, 因此來自持續經營業務的毛利率提高了1.7個 百分點至19.3%。除了毛利增加,本集團致力 減少計息債務,財務成本減少,使本集團淨溢 利比上年同期港幣108,344,000元上升36.8% 至港幣148,254,000元。這結果證明了我們的 核心業務具有獨特競爭力,能夠迅速適應充滿 挑戰的經營環境,並繼續為國內和國際市場的 客戶生產精品鋼簾線。

As steel cord market has been in short supply for a long period of time, the Group strives to enhance its productivity. Aiming to add an additional 100,000 tonnes of steel cord production capacity, the Group actively propelled an expansion plan in its Tengzhou plant and invested in new brass wire production facilities. With a satisfactory construction progress, the new facilities commenced operation during the year under review. Since the increase in productivity significantly enhances the Group's core competitiveness and profitability, the Group continues to make great strides towards its goal to manufacture over 300,000 tonnes of high-quality steel cords annually.

The Group's net asset value was HK\$0.867 per Share as at 31 December 2020, an increase of 17.8% as compared to HK\$0.736 per Share at the end of 2019. The Group recorded basic earnings per Share of HK7.76 cents for the year, an increase of 37.8% when compared to its basic earnings per Share of HK5.63 cents for the previous year.

面對長期供不應求的鋼簾線市場,本集團積極 提升生產力。本集團積極推進滕州廠房擴展 計劃,以投資建設新的黃絲設施,目標增加額 外100,000噸鋼簾線生產力,目前建設進度理 想,並已於本年度回顧內開始經營。產能的擴 張可大幅提升本集團核心競爭力和盈利能力, 本集團繼而逐步邁向年產量300,000噸以上精 品鋼簾線的目標。

於二零二零年十二月三十一日,本集團的資產 淨值為每股港幣0.867元,較二零一九年底的 每股港幣0.736元增加17.8%。與去年每股基 本盈利港幣5.63仙相比,本集團於本年度錄得 每股基本盈利港幣7.76仙,增加了37.8%。

DIVIDEND

The Board recommended the payment of a final dividend of HK1.5 cents per Share for the year ended 31 December 2020.

PROSPECTS

Looking ahead to 2021, with the mitigation of COVID-19 pandemic, global demand for logistics will witness a substantial increase, boosting the demand for large vehicles' tyres. Leveraging the Chinese government's domestic circulation policy, coupled with the solid demand on tyres, the prospects of the Group's business operation is promising as the sales of steel cords is expected to bloom. Moreover, taking into consideration the Chinese government's regulations on energy conservation and emission reduction, the constant increase in output of electric cars drives demand for their accessorial tyres, which will in turn expedite the market expansion of steel cords for domestic radial tyres and bring a more ample room for development to steel cord industry in the long term. Through research and product innovation, along with productivity enhancement, we will continue to sharpen our competitive edge and grasp opportunities in both domestic and international markets, with a view to increasing market share.

During the period of the 14th Five Year Plan, China targets to build towards a modern socialist country and accelerate the establishment of a new development structure that is driven primarily by the domestic cycle and complimented by the dual circulation of domestic and international economies. In accordance with changes in national policies, the Group is committed to continuously implementing green and environmentally friendly practices in each aspect of our production, so as to achieve sustainable development and fulfil social responsibilities.

股息

董事會建議派發截至二零二零年十二月三十一 日止年度之末期股息每股港幣1.5仙。

未來路向

展望二零二一年,隨著新冠肺炎疫情紓緩,全 球物流需求將大增,大型汽車的輪胎需求因而 增加。受惠於中國政府的內循環政策,加上對 輪胎的剛性需求有利鋼簾線銷售,本集團業務 前景向好。而且,因應中國政府節能及減排要 求,電動車產量不斷增加使其配套輪胎的需求 顯著增長,預期促進國內子午輪胎鋼簾線市場 擴張,長遠將為鋼簾線行業帶來更廣闊的發展 空間。通過研發和產品創新,進而提升產能, 我們持續增強競爭優勢,抓住國內和國際市場 的機遇以擴大市場佔有率。

在「十四五」規劃期間,中國提倡開啟全面建設 社會主義現代化國家的新征程,並加快構建以 國內大循環為主體、國內國際雙迴圈相互促進 的新發展格局。根據國家政策的變化,本集團 繼續致力在每個生產層面實踐綠化及環保,以 達致可持續發展及履行社會責任。

APPRECIATION

On behalf of the Board, I would like to express sincere gratitude to all Shareholders, suppliers and customers for their longstanding support. I would also like to thank my fellow members on the Board and staff members of the Group for their unwavering commitment to the Group's business. Looking forward, the Group will continue to maintain steady development and capture opportunities in the market, so as to strive for higher returns to Shareholders.

By order of the Board

致謝

本人謹代表董事會對所有股東、供應商和客戶 的長期支持表示衷心感謝,同時感謝董事會成 員和員工對本集團業務的堅定承諾。未來,本 集團將繼續保持穩健的發展,同時緊握市場機 遇,為股東爭取更高的回報。

承董事會命

Su Fanrong Chairman and Managing Director Hong Kong 22 March 2021

董事長兼董事總經理 蘇凡荣 香港 二零二一年三月二十二日

BUSINESS REVIEW

Business model and strategy

Our mission is to be one of the top tier steel cord and wire products manufacturers in the PRC capable of consistently purveying premium quality steel cords and wire products; and the evolution into a diversified metal product manufacturer benefiting from a successful "Eastern" brand recognition in the PRC and worldwide markets. Further details in respect of the business model and strategy of the Company, please refer to the section "REPORT OF THE DIRECTORS" of this annual report.

業務回顧 業務模式及策略

我們的使命是要成為在中國鋼簾線及鋼絲產品 的頂級製造商之一,能夠持續提供優質鋼簾線 及鋼絲產品;以及受惠於一個在中國及世界各 地市場得到成功認可的「東方」品牌而晉身為 一個多元化的金屬產品製造商。就本公司業務 模式及策略的詳情,請參閱本年報「董事會報 告書」一節。

Review of operations

The Group is principally engaged in the manufacturing of steel cords for radial tyres, sawing wires and hose wires. For the year ended 31 December 2020, the Group's revenue for the continuing operations decreased by 4.7% to HK\$2,041,553,000 (2019: HK\$2,141,380,000); however, the cost of sales for the continuing operations decreased by 6.6% to HK\$1,647,231,000 (2019: HK\$1,763,436,000), therefore the gross profit and gross profit margin for the continuing operations increased to HK\$394,322,000 (2019: HK\$377,944,000) and 19.3% (2019: 17.6%) respectively. Though the amount of other net losses increased from HK\$13,179,000 to HK\$59,377,000 for the year ended 31 December 2020, which mainly included fair value loss on the Convertible Bonds, the net losses on disposals of old machineries and impairment losses on old machineries, the aforesaid losses were partially offset by the reversal of impairment losses on land use rights of HK\$46,867,000 during the year. Besides, the net finance costs during the year decreased from HK\$64,704,000 to HK\$17,488,000. Therefore, the Group's net profit for the year ended 31 December 2020 increased by 36.8% over last year of HK\$108,344,000 to HK\$148,254,000. During the year, the Group also recorded basic earnings per share of HK7.76 cents, an increase of approximately 37.8% when compared to the previous year of HK5.63 cents. Diluted earnings per share increased by 29.7% from HK5.22 cents in the previous year to HK6.77 cents. Despite the severe operating environment in 2020, the Group still generated positive cash inflow from operations and maintained a sustained healthy financial position. The Board has proposed a final dividend of HK1.5 cents per share in respect of the financial year ended 31 December 2020 (subject to Shareholders' approval at the forthcoming annual general meeting), representing an increase of 50% year-on-year.

經營回顧

本集團主要從事製造子午線輪胎用鋼簾線、 切割鋼絲及膠管鋼絲。截至二零二零年十二 月三十一日止年度,本集團來自持續經營業 務之營業額下跌4.7%至港幣2,041,553,000 元(二零一九年:港幣2,141,380,000元)﹔然 而,來自持續經營業務之銷售成本下跌6.6% 至港幣1,647,231,000元(二零一九年:港幣 1,763,436,000元),因此來自持續經營業務之 毛利及毛利率分別增加至港幣394,322,000元 (二零一九年:港幣377,944,000元)及19.3% (二零一九年:17.6%)。儘管來自持續經營 業務之其他淨虧損由港幣13,179,000元增加 至二零二零年十二月三十一日止年度的港幣 59,377,000元(其中主要包括可換股債券之公 平值虧損、處置舊機器之淨虧損及舊機器之減 值損失),但上述的虧損部份已於本年度被土 地使用權之減值損失撥回的港幣46,867,000 元 抵 銷。此 外,本 年 度 淨 財 務 成 本 由 港 幣 64,704,000元減至港幣17,488,000元。因此, 本集團截至二零二零年十二月三十一日止年 度之淨溢利由去年的港幣108,344,000元上升 36.8%至港幣148,254,000元。於本年度,本 集團亦錄得每股基本盈利港幣7.76仙,較上一 個年度的港幣5.63仙增長約37.8%。每股攤薄 盈利由去年的港幣5.22仙增加29.7%至港幣 6.77仙。儘管二零二零年營商環境嚴峻,本集 團仍然從經營活動產生正現金流入並維持穩健 財務狀況。董事會建議截至二零二零年十二月 三十一日止財政年度每股派發末期股息港幣 1.5仙(惟需於即將舉行的股東周年大會上經股 東批核),同比增長50%。

Continuing operations of steel cord segment Revenue

During the year under review, there were full of challenges and uncertainties for the global market. The global outbreak of the COVID-19 pandemic began since the beginning of the year, in order to prevent the spread of the pandemic, various social life and economic activities were forced to be suspended or reduced, which inevitably caused the global economy to face downward pressure. In addition, the continuous tension of Sino-US trade relations brought many uncertainties to the global economic and political environment. Therefore, China's annual growth rate of GDP in 2020 fell to 2.3%.

For the year ended 31 December 2020, the Group's revenue of steel cord segment amounted to HK\$2,040,059,000 (2019: HK\$2,139,930,000), representing a decrease of 4.7% from the previous year. This is mainly because the outbreak of the COVID-19 pandemic in the first half of the year caused the average selling price of the steel cords to decrease with the drop in the cost of raw materials and export sales. However, our sales team made great effort on grasping every opportunity in the markets, so the total sales volumes of 2020 slightly increased by 1.0% over last year. This segment sold 195,421 tonnes of steel cord during the year, increased by 0.7% as compared to 194,006 tonnes last year. In respect of the sales of sawing wire products, it increased substantially by 161.9% from 160 tonnes to 419 tonnes for last year, attributable to our persistent effort in exploring new customers as well as the improvement of the photovoltaic, sapphire and magnetic material markets. There was an 4.1% increase in the sales of our other steel wires from 9,152 tonnes to 9,527 tonnes for last year. The sales volume of this segment for the year is set out below:

持續經營業務之鋼簾線分部 營業額

於本年度回顧,全球市場充滿了挑戰和不確定 性。新冠肺炎疫情自年初開始在全球爆發,為 防止疫情蔓延,各種社交生活及經濟活動被迫 暫停或減少,無可避免地導致全球經濟面臨下 行壓力。除此之外,中美貿易關係持續緊張, 為全球經濟及政治環境帶來許多不確定因素。 故此,中國於二零二零年的GDP年增長率下降 至2.3%。

截至二零二零年十二月三十一日止年 度,本 集 團 之 鋼 簾 線 分 部 的 營 業 額 為 港 幣2,040,059,000元( 二 零 一 九 年: 港 幣 2,139,930,000元 ),較上一年度減少約 4.7%。這主要因為上半年新冠肺炎疫情的爆 發使鋼簾線的平均銷售價格隨著原材料成本和 出口銷售量的下降而減低。但是,我們的銷售 團隊付出了巨大的努力去把握市場中的每一 個機會,因此二零二零年的總銷售量比去年略 微增長了1.0%。此分部於本年度銷售195,421 噸鋼簾線,較去年報194,006噸上升0.7%。在 切割鋼絲產品的銷售方面,由於我們努力不懈 地開拓新客戶,以及光伏、藍寶石和磁性材料 市場的好轉,銷售量從去年的160噸大幅上升 161.9%至419噸。我們其他鋼絲的銷售額從去 年的9,152噸增加到9,527噸,增長了4.1%。 本年度此分部的銷售量分析如下:

		Year ended 31 December 截至十二月三十一日止年度
		2020		2019
		二零二零年		二零一九年
		% of		% of
	Sales	total sales	Sales	total sales
	volume	volume of	volume	volume of
	(Tonnes)	steel cord	(Tonnes)	steel cord	% change
		佔鋼簾線		佔鋼簾線
	銷售量	總銷售量	銷售量	總銷售量
	(噸)	百分比(%)	(噸)	百分比(%)	變動(%)
Steel cords for: 鋼簾線用於:
– truck tyres -載重輪胎	133,534	68.4	130,080	67.0	+2.7
– off the road truck tyres -工程輪胎	4,982	2.5	6,506	3.4	–23.4
– passenger car tyres -轎車輪胎	56,905	29.1	57,420	29.6	–0.9
Total for steel cords 鋼簾線合計	195,421	100.0	194,006	100.0	+0.7
Sawing wire products 切割鋼絲產品	419		160		+161.9
Other steel wires 其他鋼絲	9,527		9,152		+4.1
Total 總計	205,367		203,318		+1.0

There was no significant change in sales mix during the year, the proportion of sales of steel cord for truck tyres accounted for 68.4% of total sales volume of steel cord for the year, increased by 1.4 percentage points as compared to the previous year, it remained as the largest sales volume of steel cord of the Group for the year.

本年度銷售組合沒有重大變化,鋼簾線銷售中 載重輪胎用鋼簾線佔本年度鋼簾線總銷售量 68.4%,比去年上升了1.4個百分點,保持本年 度本集團最大的鋼簾線銷售量。

In respect of sales of steel cords by region, the volume of export sales amounted to 37,569 tonnes for the year, decreased by 6.4% as compared to 40,134 tonnes for last year. The volume of export sales represented 19.2% of total sales volume for the year, compared to 20.7% for last year. Since the World Health Organisation in March 2020 declared COVID-19 as a global pandemic, causing different levels of lockdown and quarantine measures around the world and has severely disrupted global economic activities. The recovery rate of social and economic activities in the overseas was lower than that in the PRC. The breakdown of sales volume of steel cords for the year by geographical location is as follows:

鋼簾線銷售按地區而言,於本年度出口銷售量 共37,569噸,比去年報40,134噸,下跌6.4%。 出口銷售量佔本年度總銷售量19.2%,而去年 則為20.7%。由於在二零二零年三月世界衛生 組織宣佈新冠肺炎為全球疫情,引致全球各地 採取不同程度的封鎖與隔離措施,並且嚴重破 壞了全球經濟活動。海外社會及經濟活動的恢 復率低於中國。本年度鋼簾線按地區的銷售量 明細如下:

			2020 二零二零年		2019 二零一九年
			% of		% of
		Sales	total sales	Sales	total sales
		volume	volume of	volume	volume of
		(Tonnes)	steel cord	(Tonnes)	steel cord	% change
			佔鋼簾線		佔鋼簾線
		銷售量	總銷售量	銷售量	總銷售量
		(噸)	百分比(%)	(噸)	百分比(%)	變動(%)
PRC	中國	157,852	80.8	153,872	79.3	+2.6
Export sales:	出口銷售:
Asia (other than PRC)	亞洲(中國除外)	22,065	11.3	24,059	12.4	–8.3
EMEA (Europe, Middle East	EMEA(歐洲、
and Africa)	中東和非洲)	10,101	5.2	9,506	4.9	+6.3
North America	北美洲	3,608	1.8	4,103	2.1	–12.1
South America	南美洲	1,795	0.9	2,466	1.3	–27.2
Total export sales	出口銷售總數	37,569	19.2	40,134	20.7	–6.4
Total	總計	195,421	100.0	194,006	100.0	+0.7

Year ended 31 December 截至十二月三十一日止年度

Gross profit

Gross profit of this segment increased by 4.4% over last year's to HK\$392,932,000 (2019: HK\$376,502,000) for the year. Gross profit margin improved from 17.6% last year's to 19.3% for the year. This improvement was mainly because we implemented strict and effective cost control, hence our production costs reduced accordingly.

Discontinued operation of copper and brass products business

Overall performance

In view of generating greater managerial focus and releasing internal resources for the Group to prioritise the profitable steel cord business, the Group ceased all the operations of the copper and brass products segment in September 2019. This business in 2020 contributed no revenue (2019: Nil) and recorded the loss of HK\$711,000 (2019: HK\$3,400,000), mainly due to administrative expenses required for closing the related business.

FINANCIAL REVIEW

Revenue

Revenue for the continuing operations of the Group amounted to HK\$2,041,553,000 (2019: HK\$2,141,380,000) for the year, decreased by 4.7% over last year. The breakdown of revenue for the continuing operations of the Group for the year is as follows:

毛利

於本年度此分部之毛利比去年的上升4.4% 至港幣392,932,000元( 二 零 一 九 年: 港 幣 376,502,000元)。毛利率由去年報17.6%改善 至本年度的19.3%。該改進主要是因為我們實 施嚴格而有效的成本控制措施,所以我們的生 產成本相應地降低。

已終止經營之銅及黃銅材料業務

整體表現

於二零一九年九月,考慮到集中本集團更多 管理關注及釋放內部資源以優先考慮具盈利 的鋼簾線業務,本集團停止經營銅及黃銅材料 分部的全部業務。該業務於二零二零年沒有營 業額產生(二零一九年:無)及錄得虧損港幣 711,000元(二零一九年:港幣3,400,000元), 主要是由於關閉相關業務所需的行政費用。

財務回顧 營業額

於本年度,本集團來自持續經營業務之營業額 報港幣2,041,553,000元(二零一九年:港幣 2,141,380,000元),比去年同期下降4.7%。於 本年度本集團來自持續經營業務之營業額明細 如下:

Year ended 31 December 截至十二月三十一日止年度

			2020		2019
			二零二零年	二零一九年
			% of total		% of total
		HK\$'000	revenue	HK\$'000	revenue	% change
			佔總營業額		佔總營業額
		港幣千元	百分比(%)	港幣千元	百分比(%)	變動(%)
Steel cord	鋼簾線	2,040,059	99.9	2,139,930	99.9	–4.7
Property rental	物業租賃	1,494	0.1	1,450	0.1	3.0
Total	總計	2,041,553	100.0	2,141,380	100.0	–4.7

Gross profit

Gross profit for the continuing operations of the Group increased by 4.3% over last year's to HK\$394,322,000 (2019: HK\$377,944,000), which was mainly due to the increase of gross profit of steel cord segment. Gross profit margin for the continuing operations of the Group also increased by 1.7 percentage points to 19.3% for the year as compared to that of last year. The breakdown of gross profit for the continuing operations of the Group for the year is as follows:

毛利

本集團來自持續經營業務之毛利比去年上升 4.3%至港幣394,322,000元(二零一九年:港 幣377,944,000元),主要是由於鋼簾線分部的 毛利上升所致。於本年度本集團來自持續經營 業務之毛利率亦比去年同期上升1.7個百分點 至19.3%。於本年度本集團來自持續經營業務 之毛利明細如下:

				Year ended 31 December 截至十二月三十一日止年度
			2020		2019
			二零二零年 Gross	二零一九年	Gross
			profit margin		profit margin
		HK\$'000 港幣千元	(%) 毛利率(%)	HK\$'000 港幣千元	(%) 毛利率(%)	% change 變動(%)
Steel cord	鋼簾線	392,932	19.3	376,502	17.6	+4.4
Property rental	物業租賃	1,390	93.0	1,442	99.4	–3.6
Total	總計	394,322	19.3	377,944	17.6	+4.3

Distribution and selling expenses

Distribution and selling expenses for the continuing operations amounted to HK\$84,149,000 (2019: HK\$90,033,000) for the year, decreased by 6.5% over last year's, mainly due to the decrease in export sales of steel cord segment.

Administrative expenses

Administrative expenses for the continuing operations amounted to HK\$55,956,000 (2019: HK\$54,429,000) for the year, increased by 2.8% as compared to last year. This increase was primarily due to the land use right certificates received by TESC in August 2019, thus the amortisation of land use rights and the related administrative expenses for the year increased.

分銷及銷售費用

於本年度本集團來自持續經營業務之分銷及銷 售費用報港幣84,149,000元(二零一九年:港 幣90,033,000元),比去年減少6.5%,主要是 由於鋼簾線分部的出口銷售下降。

行政費用

於本年度本集團來自持續經營業務之行政費 用報港幣55,956,000元(二零一九年:港幣 54,429,000元),比去年上升2.8%,該增加主 要是由於在二零一九年八月滕州東方收到土地 使用權證,因此本年度土地之攤銷費用及相關 行政費用增加。

Research and development expenses

Research and development expenses for the continuing operations of the Group amounted to HK\$71,404,000 for the year, decreased by 4.1% as compared to HK\$74,493,000 for last year. Such expenses were all incurred by the steel cord segment and whilst reduced during the year, our research and development effort has been able to align with the requirements from our tyres manufacturing customers.

Other income

Other income for the continuing operations of the Group decreased by 43.7% from HK\$16,891,000 for the year ended 31 December 2019 to HK\$9,509,000 for the year ended 31 December 2020. This decrease was primarily due to the land use right certificates and the related one-time government grant received by TESC in 2019.

Other losses, net

Other losses, net for the continuing operations of the Group increased by 350.5% from HK\$13,179,000 for the year ended 31 December 2019 to HK\$59,377,000 for the year ended 31 December 2020. This increase was primarily due to (i) an increase of HK\$6,489,000 in impairment losses on old and idle property, plant and equipment; (ii) an increase of HK\$15,594,000 in fair value loss on Convertible Bonds; and (iii) an increase of HK\$19,448,000 in net disposal loss of old and idle property, plant and equipment.

Reversal of impairment losses on land use rights

Reversal of impairment losses on land use rights amount to HK\$46,867,000 for the year ended 31 December 2020 (2019: HK\$17,456,000) because the Group obtained the construction project planning permit on remaining area of TESC Phase II Project in October 2020.

Finance costs, net

Finance costs, net for the continuing operations of the Group decreased by 73.0% from HK\$64,704,000 to HK\$17,488,000 during the year. This is mainly due to the decrease of interest expenses on bank borrowing and a related company's loan while the Group recorded foreign exchange gains on the Convertible Bonds during the year.

研發費用

於本年度本集團來自持續經營業務之研發 費用報港幣71,404,000元,比 去 年 報 港 幣 74,493,000元下降4.1%。該等費用全都是鋼 簾線分部所產生,儘管於本年度有所減少,但 我們的研發工作已能夠滿足我們輪胎製造客戶 的要求。

其他收入

本集團來自持續經營業務之其他收入由截至 二零一九年十二月三十一日止年度的港幣 16,891,000元減少43.7%至截至二零二零年 十二月三十一日止年度的港幣9,509,000元。 該減少主要由於在二零一九年滕州東方收到土 地使用權證及相關一次性之政府補貼。

其他虧損,淨額

本集團來自持續經營業務之其他虧損,淨額由 截至二零一九年十二月三十一日止年度的港幣 13,179,000元增加350.5%至二零二零年十二 月三十一日止年度的港幣59,377,000元。該增 加主要由於(i)殘舊及閒置的物業、廠房及設備 之減值損失增加了港幣6,489,000元;(ii)可換 股債券之公平值虧損增加了港幣15,594,000 元;及(iii)出售殘舊及閒置的物業、廠房及設備 之淨虧損增加了港幣19,448,000元。

土地使用權之減值損失撥回

截至二零二零年十二月三十一日止年度,土地 使用權之減值損失撥回報港幣46,867,000元 (二零一九年:港幣17,456,000元),這是由於 本集團在二零二零年十月取得滕州東方二期項 目餘下面積的建設工程規劃許可證。

財務成本,淨額

於本年度本集團來自持續經營業務之財務成 本,淨額由去年港幣64,704,000元下降73.0% 至港幣17,488,000元,這主要是由於銀行貸款 及來自一間關連公司貸款之利息支出減少;同 時間,本集團於本年度錄得可換股債券之外幣 匯兌收益。

TREASURY AND FUNDING POLICIES

The treasury and funding policies of the Group concentrate on the management of liquidity and the monitoring of financial risks, including interest rate risk, currency risk and counterparty risks. The objectives are to ensure the Group has adequate financial resources to maintain business growth with a viable financial position.

Surplus funds of the Group are generally placed on short term deposits denominated in HKD, RMB or USD with reputable banks in Hong Kong and the PRC. The financing of the Group principally comprises bank loans and Convertible Bonds. The financing portfolio takes into consideration of the liquidity of the Group and interest costs.

SHARE CAPITAL, LIQUIDITY AND FINANCIAL RESOURCES

Share capital and net asset value

The Company manages its capital structure with the objectives of ensuring that the businesses of the Group can maintain a sustainable growth and providing a longterm reasonable returns to its Shareholders.

The total number of issued shares of the Company was at 1,899,024,556 Shares at 31 December 2020 (2019: 1,922,900,556 Shares). Net asset value of the Group was HK\$1,645,571,000 at 31 December 2020, increased by 16.3% as compared to HK\$1,415,072,000 at 31 December 2019. Net asset value per Share was HK\$0.867 at 31 December 2020, also increased by 17.8% as compared to HK\$0.736 at 31 December 2019.

財資政策

本集團的財資政策集中於流動資金管理和監控 財務風險,包括利率風險、匯兌風險和交易對 手風險。其目的是確保本集團有充足的財務資 源以在財務狀況可行情況下維持業務增長。

本集團的剩餘資金一般以短期存款(以港幣、 人民幣或美元為單位)存放在香港及中國信譽 良好的銀行。本集團的資金籌措主要包括銀行 的貸款及可換股債券,貸款組合會考慮本集團 的資金流動性及利息成本而作出。

股本、資金流動及財政資源

股本及資產淨值

本公司管理其資本架構的目的以確保本集團之 業務能繼續可持續增長及為股東提供一個長期 合理的回報。

於二零二零年十二月三十一日,本公司已發行 股份總數目為1,899,024,556股(二零一九年: 1,922,900,556股)。本集團於二零二零年十二 月三十一日之資產淨值報港幣1,645,571,000 元,比 二 零 一 九 年 十 二 月 三 十 一 日 的 港 幣 1,415,072,000元上升16.3%。於二零二零年 十二月三十一日的每股資產淨值報港幣0.867 元,比於二零一九年十二月三十一日每股報港 幣0.736元亦上升17.8%。

Issuance of Convertible Bonds

On 18 December 2018, the Company entered into the Subscription Agreement with Jingxi Holdings (a related party and a wholly-owned subsidiary of Shougang Fund) whereby the Company issued and Jingxi Holdings subscribed for the Convertible Bonds in the principal amount of HK\$150,000,000. The interest rate is 4.0% per annum while Conversion Price is HK\$0.33 per Share, with conversion available commencing 6 months from issuance date till end of term. Tenor is 3 years from issuance date which can be extended by Jingxi Holdings for one year twice to the date falling on the fifth anniversary of the issue date of the Convertible Bonds.

The Conversion Price was arrived at after arm's length negotiations between the Group and Jingxi Holdings with reference to the prevailing market prices of the Shares. On 11 February 2019, the issuance of the Convertible Bonds was completed. The net proceeds from the Subscription, after deducting the costs and expenses of approximately HK\$1 million, are approximately HK\$149 million and are expected to be used as follows: (i) as to approximately HK\$37.3 million for repaying interest-bearing borrowings with higher interest rate of the Group (excluding borrowings provided by Shougang HK and its related party(ies)); (ii) as to approximately HK\$110 million for funding the capital investment for the TESC Phase II Project subject to the construction cost and time needed to supplement the production need for both TESC and JESC; and (iii) as to approximately HK\$1.7 million, being the remaining proceeds for supplementing general working capital.

發行可換股債券

於二零一八年十二月十八日,本公司與京西控 股(關連人士及首鋼基金的附屬公司)訂立認購 協議,據此,本公司發行而京西控股認購本金 額最高為港幣150,000,000元的可換股債券。 年利率為4.0%而換股價為每股股份港幣0.33 元,自發行日六個月起開始轉換至期末。期限 由發行日起三年,可由京西控股延長兩次,每 次一年至可換股債券發行日期後至第五個週年 當日。

換股價乃由本集團與京西控股參考股份的現 行市價經公平磋商後釐定。於二零一九年二月 十一日,發行可換股債券完成。認購事項所得 款項淨額(經扣除成本及開支約港幣1百萬元 後)約港幣149百萬元及預期用作下列用途:(i) 約港幣37.3百萬元用於償還本集團利率較高的 計息貸款(首控香港及其關連人士提供的貸款 除外);(ii)約港幣110百萬元用於為滕州東方二 期項目的資本投資提供資金,惟受限於建設成 本及補充滕州東方及嘉興東方的生產需求所需 時間;及(iii)所得款項餘額約港幣1.7百萬元用 於補充一般營運資金。

As at 31 December 2020, the Group had fully utilised the aforesaid proceeds in the manner as set out in the table below:

於二零二零年十二月三十一日,本集團已全部 動用上述所得款項按照下表所列方式:

			Amount	Amount utilised
		Net proceeds	utilised up to	during the year	Amount unused
		from the	31 December	ended ended 31	as at 31
		Subscription	2019	December 2020	December 2020
				截至二零二零年
			截至二零一九年	十二月三十一日	於二零二零年
		認購事項之	十二月三十一日	止年度	十二月三十一日
		淨所得款	已動用金額	已動用金額	未動用金額
		HK\$ million	HK\$ million	HK\$ million	HK\$ million
		港幣百萬元	港幣百萬元	港幣百萬元	港幣百萬元
Repaying interest-bearing	償還本集團利率較高的
borrowings with higher	計息貸款
interest rate of the Group		37.3	(37.3)	–	–
Funding the capital	為滕州東方二期項目的
investment for the TESC	資本投資提供資金
Phase II Project		110.0	(31.8)	(78.2)	–
Supplementing general	補充一般營運資金
working capital		1.7	(1.7)	–	–
Total	合計	149.0	(70.8)	(78.2)	–

Bank balances and cash and interest bearing borrowings

The Group's bank balances and cash (including pledged bank deposits) amounted to HK\$177,570,000 at 31 December 2020, increased by 74.5% as compared to HK\$101,732,000 at 31 December 2019. Total interest bearing borrowings of the Group (comprised of loan from a related company, bank borrowings and Convertible Bonds) were HK\$660,942,000 at 31 December 2020, decreased by 19.5% as compared to HK\$821,290,000 at 31 December 2019. The amount of net interest bearing borrowings (total interest bearing borrowings less pledged bank deposits and bank balances and cash) therefore decreased from HK\$719,558,000 at 31 December 2019 to HK\$483,372,000 at 31 December 2020.

銀行結存及現金及計息貸款

於二零二零年十二月三十一日,本集團之銀 行結存及現金(包括已抵押銀行存款)共港幣 177,570,000元,比二零一九年十二月三十一 日報港幣101,732,000元上升74.5%。本集 團之總計息貸款(包括來自一間關連公司之 貸款、銀行貸款及可換股債券)於二零二零年 十二月三十一日報港幣660,942,000元,比二 零一九年十二月三十一日報港幣821,290,000 元下降19.5%。因 此,計 息 貸 款 淨 額(計息 貸款總額減去已抵押的銀行存款、銀行結存 及現金)由二零一九年十二月三十一日的港 幣719,558,000元減少至二零二零年十二月 三十一日的港幣483,372,000元。

Debt and liquidity ratios

Gearing ratio represented total interest bearing borrowings less bank balances and cash (including pledged bank deposits) divided by total equity of the Group and decreased markedly from 50.8% at 31 December 2019 to 29.4% at 31 December 2020. The current ratio (calculated as current assets divided by current liabilities) of the Group was 1.15 times at 31 December 2020 as compared to 1.28 times at 31 December 2019.

FOREIGN CURRENCY AND INTEREST RATE EXPOSURES

The Group's source of revenue is mainly denominated in EUR, RMB and USD, while those of purchases and payments are mainly denominated in RMB and HKD. During the year under review, the Group managed its exchange rate exposures of EUR and USD denominated assets against RMB by entering into the foreign currency hedging contracts to sell EUR and USD against RMB with aggregate notional amount of EUR8,000,000 and USD10,000,000 respectively. These contracts were fully fixed during the year ended 31 December 2020.

In respect of exposure to interest rate risk, all the interest bearing borrowings at 31 December 2020 were at fixed instead of floating rates, the Group has not entered into any interest rate swaps on the floating rate borrowings. In light of the relatively lack lustre economic data published lately, the prevailing market view is a cut in interest rate and hence, we do not anticipate to conduct any interest rate swaps in the near term.

We will review and adjust the currency composition of our interest bearing borrowings from time to time to minimise our risks on exchange and interest rate in respect of our interest bearing borrowings. In any event, we would keep monitoring the currency and interest rate composition of the Group's interest bearing borrowings under the guidance of the Internal Control Manual and take appropriate action to minimise our exchange and interest rate risks when needed.

負債及流動資金比率

本集團之負債比率(以計息貸款總額減銀行結 存及現金(包括已抵押銀行存款)除以本集團權 益總額計算),並由二零一九年十二月三十一 日報50.8%下降至二零二零年十二月三十一日 報29.4%。本集團於二零二零年十二月三十一 日的流動比率(以流動資產除以流動負債計算) 為1.15倍,相對於二零一九年十二月三十一日 則為1.28倍。

外幣及利率風險

本集團的收入來源主要以歐元、人民幣和美 元為單位,而購買和付款的收入來源則主要 以人民幣和港幣為單位。於本年度回顧,本集 團通過訂立外匯對沖合約賣出歐元及美元兌 人民幣,名義總金額分別為8,000,000歐元及 10,000,000美元,以管理其以歐元及美元為單 位的資產兌人民幣的匯率風險。這些合約在截 至二零二零年十二月三十一日止年度已完全確 定。

至於利率風險,截至二零二零年十二月三十一 日的計息貸款全部是按固定而非浮動利率計 息,本集團並無訂立就浮動利率貸款利率掉 期。鑒於近期公佈的經濟數據相對平淡,現行 市場觀點是利率下調,因此我們預計短期內不 會進行任何利率掉期。

我們將檢討及調整計息貸款的貨幣組合,以盡 量減少我們的計息貸款的匯率和利率風險。 無論如何,我們會根據內部監控指引下,持續 監察本集團計息貸款的貨幣及利率組合,及於 需要時採取適當行動,以減低匯兌及利率的風 險。

CAPITAL COMMITMENTS

At 31 December 2020, the Group had commitments in respect of property, plant and equipment amounted to HK\$223,163,000.

BUSINESS DEVELOPMENT PLAN

In 2019, TESC entered into agreements with the relevant governmental authorities of Tengzhou in relation to the investment of a construction project to be carried out on the three parcels of land through a public auction in 2010 and 2011 (the "Lands"). Pursuant to the agreements, TESC shall invest in construction of the production lines for an annual capacity of 100,000 tonnes steel cords on the Lands. The Tengzhou governmental authorities shall assist TESC in the construction project, such as handling relevant procedures for the construction, facilitating in the construction of infrastructure of the project such as water, electricity and roads, and assisting in application of governmental policy support and applicable support funds.

The construction project has commenced to acquire the machineries and constructure the factory plant, ancillary facilities and peripheral roads since November 2019. The project is carried out by phases according to the market conditions and the financial capacity of the Group from time to time. Its expected sources of funding in the coming year will be internal resources and/or other financing of the Group. The new production line of brass wire in the project as aforementioned is expected to bring positive impact on the performance of the steel cord segment as some of the existing production of brass wires of JESC, which have been in use for over 20 years, incurs high maintenance and operation cost with relatively low production efficiency and quality instability. Besides, this project can drive the Group towards its goal to become an enterprise commanding an annual manufacturing capacity in excess of 300,000 tonnes of high-quality steel cords.

資本承擔

於二零二零年十二月三十一日,本集團有關物 業、廠房及設備之承擔為港幣223,163,000元。

業務發展計劃

於二零一九年,滕州東方與滕州政府機關就在 二零一零年及二零一一年透過公開競投取得的 三幅土地(「該等土地」)上將進行的項目投資建 設訂立協議。根據協議,滕州東方將在該等土 地投資建設總年產100,000噸鋼簾線生產線。 滕州政府機關將協助滕州東方建設項目,如處 理施工相關程序,促進水、電、道路等項目基 礎設施建設,並協助申請政府政策支持和適用 的資金支持。

建設項目自二零一九年十一月開始購置機器 及建設的廠房、附屬設施及外圍道路。項目會 根據市場情況和本集團不時之財務能力分階 段進行。預計在未來一年其資金來源為本集團 之內部資源及╱或其他融資。上述項目中的黃 絲新生產線將預計對鋼簾線分部的表現帶來正 面影響,因目前若干嘉興東方黃絲生產線已使 用超過二十多年,相對較低的生產效率及質量 不穩定性,產生高維護費和運營成本。另外, 這項目可使本集團邁向發展為一個擁有年產量 300,000噸以上精品鋼簾線製造企業的目標。

EMPLOYEES, REMUNERATION POLICIES AND TRAINING SCHEME OF THE GROUP

At 31 December 2020, the Group had a total of 2,148 employees located in Hong Kong and the PRC. The emolument policy regarding the employees of the Group is based on their merit, qualifications and competence as well as the prevailing market condition of the industry. Remuneration packages, which include an element of discretionary bonuses, are generally reviewed annually. In addition to salary payments, other employee benefits include medical subsidies, hospitalisation scheme and a defined contribution provident fund, Mandatory Provident Fund Scheme and other retirement scheme or other similar defined contribution provident fund stipulated by the State Regulations of the PRC which provided retirement benefits to employees in Hong Kong and the PRC respectively. The Group's contributions to these schemes are charged against profits or loss as they are incurred. The total employee benefit expense for the year amounted to approximately HK\$211 million.

The Group had also provided training programmes or courses for the mainland staff at all levels from different departments, and also for Directors and employees of the Company so as to further enhance their technical skills in production operation and management, professional skills and knowledge, respectively.

The emoluments of the Directors are decided by the remuneration committee of the Company, having regard to individual performance, the Group's performance and profitability, remuneration benchmark in the industry and prevailing market condition.

本集團僱員、酬金政策及培訓計劃

於二零二零年十二月三十一日,本集團於香港 及中國合共有2,148名僱員。本集團僱員之酬 金政策按僱員價值、資格及能力,亦以業界當 時市場環境而釐訂。彼等之酬金包括酌情發放 之花紅,一般會每年予以檢討。在薪金以外, 其他僱員福利包括醫療保險、住院資助計劃及 定額供款公積金計劃,強制性公積金計劃,及 中國國家法規定的其他退休計劃或類似定額供 款公積金計劃分別為香港及國內僱員提供退 休福利。該等計劃引起之本集團供款會在損益 中扣除。本年度僱員福利開支總額為大約港幣 211百萬元。

本集團亦分別向國內各部門各級僱員及向董事 及本公司僱員提供培訓計劃或課程,用以提升 他們在生產營運和管理上的技術技能、專業技 巧和知識。

董事之酬金由本公司薪酬委員會按照個人表 現、本集團之業績及盈利狀況,亦以業界指標 及當時市場環境而釐訂。

In addition, the Company had adopted the 2002 Scheme. Under the 2002 Scheme, the Board shall, subject to and in accordance with the provisions of the 2002 Scheme and the Listing Rules, grant share options to any eligible participant to subscribe for Shares for the purpose of providing incentives or rewards to him/her for contribution to the Group. The 2002 Scheme remained in force for a period of ten years from the date of its adoption and expired on 6 June 2012. The Shareholders at the annual general meeting held on 25 May 2012 approved the termination of the 2002 Scheme and adoption of the 2012 Scheme which serves the same purpose as the 2002 Scheme. The 2012 Scheme will remain in force for a period of ten years from 29 May 2012, the date of obtaining the approval of the listing and permission to deal in the Shares falling to be allotted and issued pursuant to the exercise of any options granted under the 2012 Scheme.

During the year, no options were granted, exercised, cancelled and lapsed.

CONTINGENT LIABILITIES AND PLEDGE OF ASSETS

The Group had no contingent liabilities at 31 December 2020.

At 31 December 2020, the following assets had been pledged to the Group's bankers for banking facilities granted to the Group:

• 1. Leasehold land and buildings with an aggregate net book value of HK\$197,935,000;
• 1. Land use rights with an aggregate amount of HK\$62,175,000; and
• 1. Bank deposits of HK\$84,308,000.

此外,本公司採納了二零零二計劃。根據二零 零二計劃,董事會可根據及按照二零零二計劃 的條款及上市規則授予合資格人士購股權以 認購股份,目的作為他╱她對本集團之貢獻作 出獎勵或報酬。二零零二計劃由採納日期起計 十年內有效及於二零一二年六月六日到期。股 東已在二零一二年五月二十五日舉行的股東周 年大會上批准終止二零零二計劃及採納二零 一二計劃,二零一二計劃與二零零二計劃本著 有同一目的。二零一二計劃由二零一二年五月 二十九日(獲得批准根據二零一二計劃授出之 購股權獲行使而將予發行及分配之任何股份上 市及買賣之日期)起計十年內有效。

於本年度,沒有購股權授出、行使、註銷或失 效。

或然負債及資產押記

於二零二零年十二月三十一日,本集團並無或 然負債。

於二零二零年十二月三十一日,以下資產已抵 押予本集團的銀行以授予本集團的銀行融資:

• 1. 賬面淨值總計為港幣197,935,000元之租 賃土地及樓宇;
• 1. 土地使用權總額為港幣62,175,000元; 及
• 1. 銀行存款港幣84,308,000元。

BUSINESS OUTLOOK

The world had been seriously affected by the COVID-19 pandemic and the implications for Hong Kong, a highly open international city, were relatively enormous. That practically sums up what most of the Hong Kong companies have been and will continue to face the impact of the COVID-19 pandemic in the near future albeit various vaccines are becoming available to the globe. In 2020, particularly in the second and third quarters, we have experienced a discernible regress in our export orders, primarily because the overseas manufacturers closed/ suspended their manufacturing facilities outside of the PRC. Such closure/suspension has caused a material increase in orders from our Chinese tyre manufacturing customers to fill in the void. In 2021, the roll-out and efficacies of various vaccines are central to returning our daily life to normalcy, and a more balanced demand from domestic and export markets. And if they do, we are confident and optimistic about our business in light of the followings:

• 1. Through our diligence and conviction to reduce our costs of production, we are confident to make orderly investment in expanding our steel cord/wire production capacity at TESC which is expected to reach an annual capacity of 160,000 tonnes by second half of the year;
• 1. The PRC's macro-economic environment in infrastructure investment is expected to improve, this leads the sales in the automotive and tyre industry to increase continuously;
• 1. We are also seeing some of our key tyre customers ramping up their production capacities, be it in the form of leasing unused machineries from defunct tyre manufacturers and/or expanding capacity within or outside of the PRC;
• 1. The steel cord industry has begun a certain level of consolidation. Indeed, we are aware that this might be a two-edged sword. On the plus side, supply will be lessened due to elimination of some manufacturers; but on the minus side, some of our competitors are getting bigger. However, we remain vigilant with our strength in brand and proven record in providing "value-for-money" and reliable products;

業務展望

全世界已受到新冠肺炎疫情的嚴重影響,而對 於香港這個高度開放的國際城市受到的影響 相對較大。這實際上總結了大部份香港公司過 去和未來將繼續面對新冠肺炎疫情的影響,儘 管全球有各種疫苗面世。於二零二零年,特別 是在第二及第三季度,我們的出口訂單出現明 顯的下降,這主要是由於海外生產商關閉╱暫 停了中國境外的生產設施。這樣的關閉╱暫停 導致我們中國輪胎製造客戶的訂單大幅增加, 以填補空白。在二零二一年,各種疫苗的推出 和疫苗成效對於我們恢復日常生活常態以及平 衡國內和出口市場的需求至關重要。如果是的 話,根據以下幾點,我們對我們的業務充滿信 心和樂觀:

• 1. 憑藉我們的勤奮和堅持去降低我們的生 產成本,我們有信心於滕州東方有序地投 資以擴大我們的鋼簾線╱鋼絲的生產能 力,預計下半年將達到160,000噸的年產 量;
• 1. 中國的宏觀經濟環境在基礎設施投資方 面預計將有改善,這有助汽車和輪胎行業 的銷售持續增長;
• 1. 我們還留意到我們的一些主要輪胎客戶 正在擴大其生產能力,其形式是從已停 業的輪胎製造商那裡租賃未使用的機器 和╱或在中國境內或境外擴大產量;
• 1. 鋼簾線行業已開始一定程度的整合。事實 上,我們認為這是有利有弊的。從正面來 看,由於部份生產商被淘汰,產品供應將 會減少;但從反面來看,我們的一些競爭 對手正在變得更強大。但是,我們保持警 惕,維持自身品牌實力,並在提供高性價 比和可靠的產品方面表現出色;
• 1. In the latter half of 2020, we have realigned our management team with the addition of seasoned professionals in export sales and research and development of product or production process;
• 1. Whilst making investment for the TESC expansion as aforementioned, we have also managed to reduce interest-bearing debt which is attributable to our persistent effort in receivable collection and resulting to a substantial decrease in finance expenses. Our uncompromising endeavour in managing cashflow should prepare us for any swing or headwind in our various markets; and
• 1. Steel cord/wire manufacturing is undoubtedly our mainstay but in 2021, we will make a dedicated exploration in other businesses which we believe to have either a synergetic effect on our principal business or be able to fuel our growth in the 14th Five Year Plan.
• 1. 在二零二零年下半年,我們重整了管理團 隊,增加了在出口銷售和產品或生產過程 研發方面經驗豐富的專業人員;
• 1. 在上述滕州東方擴建項目進行投資的同 時,我們還設法減少了計息債務,這是由 於我們在收回賬款方面的不懈努力,導致 相關財務費用大幅減少。我們亦積極管理 現金流,為我們在各種市場的任何波動做 好準備;及
• 1. 鋼簾線╱鋼絲的製造無疑是我們的主要 業務支柱,但在二零二一年,我們將對其 他業務進行專門的探索,我們認為這對我 們的主要業務產生協同效應,或者能夠在 「十四五」規劃中推動我們的增長。

The Board is committed to practicing and achieving a high standard of corporate governance and also recognises that effective risk management and internal control systems are crucial to the long-term development of the Company. In order to maintain sound and effective risk management and internal control systems, the Board periodically reviews the daily corporate governance practices and procedures of the Company and its subsidiaries and procures the Company and its subsidiaries to strictly comply with the relevant laws and regulations, and the rules and guidelines of regulatory bodies.

CORPORATE GOVERNANCE PRACTICES

The Company has made detailed disclosures in relation to the accounting period covered in this annual report in compliance with the requirements of Corporate Governance Report set out in the Code. Also, the Company has applied and complied with all the principles and code provisions of the Code throughout the year ended 31 December 2020, except for the deviation from code provisions A.2.1 and D.1.4 of the Code.

董事會致力於實行及達到高水平之企業管治, 並認為一個有效率之風險管理及內部監控系統 對於本公司的長遠發展是甚為重要的。為了維 持一個完好及有效率之風險管理及內部監控系 統,董事會定期檢討本公司及其附屬公司的日 常企業管治常規及程序,並促使本公司及其附 屬公司已嚴謹地遵守有關的法律及規定,以及 監管機構的規則和指引。

企業管治常規

本公司已按照守則中對《企業管治報告》的要 求,所涵蓋會計期間應披露的資料已詳盡列 載於本年報內。另外,截至二零二零年十二 月三十一日止年度,除偏離守則的守則條文 A.2.1及D.1.4條外,本公司已採用及遵守守則 中的所有原則和守則條文。

DIRECTORS' SECURITIES TRANSACTION

On 6 April 2004, the Board has adopted a SCCHL Code on terms no less exacting than the required standard of the Model Code as the Company's code of conduct and rules governing dealing by all Directors and Specified Individuals in the securities of the Company. In order to keep the SCCHL Code in line with the changes brought upon by the relevant amendments to laws, rules and regulations, the Board will revise the SCCHL Code from time to time and the latest version which was revised on 30 December 2020 is an annexed to the Internal Control Manual. All Directors have confirmed, following specific enquiry by the Company, that they have complied with the required standard set out in the Model Code and SCCHL Code for the year ended 31 December 2020.

THE BOARD

The Board currently consists of seven members, including three executive Directors (namely Messrs. Su Fanrong (chairman and managing Director), Ye Qian and Li Jinping), one non-executive Director (namely Mr. Adam Touhig) and three independent non-executive Directors (namely Messrs. Yip Kin Man, Raymond, Lam Yiu Kin and Feng Yaoling). The Directors' biographical details are set out on pages 8 to 18 under the heading "BIOGRAPHICAL DETAILS OF DIRECTORS".

The major duties of the Board are set out below:

• Develop business model and business goals of the Company;
• Formulate the strategies, planning and development of the Company;
• Set up objectives of management;
• Monitor the performance of management;
• Ensure that a framework of prudent and effective controls are in place to enable risks to be assessed and managed;
• Review and approve the Company's results and operations to be disclosed on a regular basis to the public; and

董事的證券交易

於二零零四年四月六日,董事會已採納了一套 首長寶佳守則,作為本公司監管全體董事及特 定人士買賣本公司證券的操守準則和規則,而 首長寶佳守則之標準不比標準守則所訂明的要 求寬鬆。為使首長寶佳守則能反映有關法律、 規則及規定的修改,董事會將不定時修改首長 寶佳守則,而在內部監控指引附錄內最新版本 之首長寶佳守則已在二零二零年十二月三十 日修訂。經本公司特定查詢後,所有董事已確 認彼等截至二零二零年十二月三十一日止年度 內,一直遵守標準守則及首長寶佳守則所載之 規定標準。

董事會

董事會現由七名成員組成,包括三名執行董 事(即蘇凡荣先生(董事長兼董事總經理)、葉 芊先生及李金平先生)、一名非執行董事(即 Adam Touhig先生)及三名獨立非執行董事(即 葉健民先生、林耀堅先生及馮耀嶺先生)。董事 之簡歷詳情載於第8頁至18頁之「董事簡歷」之 標題內。

董事會之主要職責如下:

• 發展本公司之業務模式及目標;
• 制定本公司的策略、計劃及發展;
• 確立管理的目標;
• 監察管理層的表現;
• 確保推行審慎和有效的監管架構,從而評 估和管理風險;
• 審核及批准本公司的業績及運作,定期向 公眾人士披露;及

• Approve the Group's operating strategies, budget and strategies in collaboration with various jurisdictions enterprises, as well as other major investments, application of funds and other substantial exercises with other enterprises.

In order to have a clear guideline in relation to the matters specifically reserved to the Board for decision, functions between the Board and the management are formalised in the Internal Control Manual. In short, the Board, which is accountable to Shareholders for the long-term performance of the Company, is responsible for directing and supervising the Company's affairs to safeguard the best interest of the Company as a whole. The affairs reserved to the Board including but not limited to the development of business models and strategies of the Company, the preparation of financial reporting and the expansion and development of any new business. The managing Director motivates the management and general staff to achieve those business goals and strategies set out by the Board by applying business principles and ethics enshrined in the Internal Control Manual.

Each Director owes a fiduciary duty towards the Company. He should act in good faith and in the best interests for both the Company and Shareholders as a whole. Also, the Board currently has three independent non-executive Directors which represent more than one-third of the Board so that there is a strong element of independence in the Board. Each of the independent non-executive Directors has different professional qualification and experience in various aspects: including but not limited to (i) legal professional qualification and experience; or (ii) auditing, accounting and tax professional, or business consulting experience, which has fully complied with Rules 3.10(1) and (2) of the Listing Rules. Hence, we believe that we have sufficient calibre and number of independent nonexecutive Directors for their views to carry weight.

• 批准本集團的營運策略、預算及與不同管 轄權區的企業合作的計劃以及其他主要 的投資、資金運用及與其他企業的其他重 大行動。

為特別須董事會作決定之事項提供明確指引, 董事會及管理層之職能已在內部監控指引中界 定。簡單而言,董事會須就本公司的長遠表現 向股東問責,負責領導及監管本公司之事務以 保障本公司之整體最佳利益。需董事會作出負 責之事務包括但不限於制定本公司業務模式及 策略、準備財務報告以及擴展和開發任何新業 務。而董事總經理負責推動管理層及一般僱員 以內部監控指引下之業務準則及道德標準達到 董事會制定的業務目標及策略。

各董事對於本公司均有誠信責任。彼應真誠地 以本公司和股東的整體最佳利益為前提行事。 另外,董事會現有三名獨立非執行董事,佔董 事會成員人數多於三分之一,使董事會有強大 的獨立元素。每一位獨立非執行董事於各方面 皆具有各項專業資格及經驗:包括但不限於 (i)法律專業資格及經驗;或(ii)審核、會計和稅 務專業或業務諮詢經驗,完全符合上市規則第 3.10(1)及(2)條的規定。故此,我們相信我們具 有足夠才幹和人數的獨立非執行董事,以使其 意見具有影響力。

The Company has received from each of the independent non-executive Directors an annual confirmation of his and immediate family members' independence pursuant to Rule 3.13 of the Listing Rules. Although Mr. Yip Kin Man, Raymond has been serving the Board for more than nine years, he has not engaged in any executive management of the Group, and Mr. Yip's solicitors firm and his respective family members have never provided any service to the Group. His familiarity and extensive experience with the Company's business may place him in a better position to contribute independent views to the Company, and continue to demonstrate a firm commitment to his role.

Taking into consideration of Mr. Yip's independent scope of works and his high integrity when performing duties as an independent non-executive Director over the past years, there is no evidence that length of tenure is having an adverse impact on his independence. The Company therefore considers all of independent non-executive Directors (including Mr. Yip) are independent throughout the year under review. Furthermore, all Directors, including independent non-executive Directors, should be re-elected at least once every three years at the annual general meeting of the Company and the reasons the Board believes that the individual to be independent are set out in the relevant circulars. In addition to the above, to the best knowledge of the Directors, there is no financial, business, family or other material/relevant relationship among members of the Board.

根據上市規則第3.13條之規定,本公司已收悉 每名獨立非執行董事及其直系親屬有關其獨立 性之年度確認書。雖然葉健民先生服務董事會 至今已超過九年,但彼概無參與本集團任何行 政管理工作,及葉先生的律師樓及其直系親屬 從未向本集團提供任何服務。彼對本公司業務 之熟悉及資深經驗有助其向本公司提供較佳 之獨立意見和對彼董事職務持續表現堅定的承 擔。

考慮到葉先生過往年度工作之獨立範疇及彼履 行獨立非執行董事職責的高度正直,並無任何 證據顯示服務年資對彼獨立性產生負面影響。 本公司因此認為所有獨立非執行董事(包括葉 先生)於本年度回顧均為獨立人士。再者,所有 董事(包括獨立非執行董事)須至少每三年一次 在本公司股東周年大會上重選,及董事會認為 各獨立非執行董事乃屬於獨立人士的原因,已 列載於有關通函內。除以上外,就董事所知, 各董事會成員之間概無任何財務、業務、家族 或其他重大╱相關關係。

Deviation from code provision A.2.1 of the Code

During the year under review, the roles of chairman and managing Director in the Company are performed by Mr. Su Fanrong which constitutes the deviation from the code provision A.2.1 of the Code which stipulates that the roles of chairman and managing Director should be separate and should not be performed by the same person. In consideration of Mr. Su's extensive knowledge and experience in various aspects, in particular the management in the steel industry and sales area, the Board considers this present arrangement still enables the Company to make decisions promptly in the formulation and implementation of the Company's strategies in achieving corporate goals. Notwithstanding the deviation, the Board is of the view that there are sufficient checks and balances amongst the Board to reach decisions in the interests of the Company and its Shareholders as a whole. The Board will review the management structure from time to time and the need to separate the roles of the chairman of the Board and the managing Director into two individuals.

Deviation from code provision D.1.4 of the Code

During the year under review, the Company deviated from the code provision D.1.4 of the Code. According to the subscription agreement and further agreement dated 22 September 2006 and 24 February 2015 respectively entered into by the Company and Bekaert, Bekaert group nominated Mr. Liao Jun (the then non-executive Director) as a nonexecutive Director. Mr. Liao did not have any formal letter of appointment setting out the key terms and conditions of his appointment as Director, which therefore deviated from the code provision D.1.4 of the Code.

The details of Directors' attendance at the meetings (including the board meetings, audit committee meetings, remuneration committee meeting, nomination committee meeting, annual general meeting and general meeting) held during the year are set out in the following table:

偏離守則之守則條文A.2.1條

於本年度回顧,本公司的董事長與董事總經理 之角色均由蘇凡荣先生擔任,故偏離守則的守 則條文A.2.1條。該守則條文規定董事長與董 事總經理的角色應有區分,並不應由同一人擔 任。考慮到蘇先生在各方面,特別是管理鋼鐵 行業及銷售方面擁有的豐富知識和經驗,董事 會認為目前的安排仍可使本公司能夠及時制定 決策以實現本公司目標。儘管偏離守則,董事 會認為有足夠的制衡機制來作出符合本公司及 其股東整體利益的決定。董事會亦將不時檢討 管理架構,並在需要時將董事長與董事總經理 的角色分開為兩個人。

偏離守則之守則條文D.1.4條

於本年度回顧,本公司偏離守則之守則條文 D.1.4條。根據本公司與Bekaert分別於二零零 六年九月二十二日及二零一五年二月二十四日 訂立之認購協議及進一步協議由Bekaert集團 委派廖駿先生(時任非執行董事)為非執行董 事。廖先生沒有任何正式委任書,訂明有關其 委任為董事的主要條款及條件,因此偏離守則 之守則條文D.1.4條。

董事於本年度舉行的會議(包括董事會會議、 審核委員會會議、薪酬委員會會議、提名委員 會會議、股東周年大會及股東大會)之出席情 況已於下表列示:

Record of attendance of Directors at the meetings held during the year ("Attendance Record")

董事於本年度舉行的會議出席紀錄 (「出席紀錄」)

		Number of Meetings Attended and Held 會議之出席及舉行數目
Name of Director	董事姓名	Board Meetings	Audit Committee Meetings 董事會會議 審核委員會會議 薪酬委員會會議 提名委員會會議	Remuneration Committee Meetings	Nomination Committee Meetings	Annual General Meeting 股東周年大會
Su Fanrong	蘇凡荣	4/4	N/A不適用	1/1	2/2	1/1
Tang Cornor Kwok Kau (Note 1)	鄧國求(附註1)	3/4	N/A不適用	N/A不適用	N/A不適用	1/1
Ye Qian	葉芊	4/4	N/A不適用	N/A不適用	N/A不適用	1/1
Li Jinping	李金平	4/4	N/A不適用	N/A不適用	N/A不適用	1/1
Liao Jun (Note 2)	廖駿(附註2)	4/4	N/A不適用	N/A不適用	N/A不適用	1/1
Yip Kin Man, Raymond	葉健民	4/4	4/4	1/1	2/2	1/1
Lam Yiu Kin	林耀堅	4/4	4/4	1/1	2/2	1/1
Feng Yaoling	馮耀嶺	4/4	4/4	1/1	2/2	1/1

Notes:

1. Mr. Tang Cornor Kwok Kau resigned as an executive Director and a deputy managing Director on 30 November 2020.

2. Mr. Liao Jun resigned as a non-executive Director on 15 January 2021 and Mr. Adam Touhig was appointed as a non-executive Director on the same date.

During the year, two risk assessment meetings were held to deal with risk management issues of the Group. In addition, the executive Directors and the management of the Group held a budget meeting to review the business performance of 2020 and planning of 2021 business after the balance sheet date.

• 附註:
• 1. 鄧國求先生於二零二零年十一月三十日辭任執行 董事及董事副總經理。
• 1. 廖駿先生於二零二一年一月十五日辭任非執行董 事,而Adam Touhig先生於同日獲委任為非執行 董事。

於本年度,舉行了兩次風險評估會議藉以處理 本集團之風險管理及內部監控事宜。並且,於 結算日後執行董事及本集團管理層舉行了一次 預算會議以檢討二零二零年之業務表現及二零 二一年之業務計劃。

DIRECTORS' CONTINUOUS TRAINING AND DEVELOPMENT

The Company will provide a comprehensive and formal induction package to each newly appointed Director to ensure that he/she is sufficiently aware of his/her duties, responsibilities and obligations as a Director under the Companies Ordinance, the Listing Rules and other regulatory requirement and ensure he/she has a proper understanding of the Company's operations and business. In compliance with the code provision A.6.5 of the Code during the year, all Directors have participated in continuous professional development to develop and refresh their knowledge and skills. The Directors have attended programmes or seminar(s) organised by the Company, other qualified professional bodies and regulatory authorities. In particular, all Directors had actively participated in the Directors E-Training launched by the Stock Exchange in June 2020, which enhance their understanding and carrying out their roles in Environmental, Social and Governance ("ESG") reporting under the New ESG Requirements that took effect for financial years commencing on or after 1 July 2020.

Furthermore, in order to ensure that the contribution of all Directors to the Board remains informed and relevant, the company secretarial department of the Company has, from time to time provide Directors with relevant reading materials to keep them informed of the latest updates in the relevant industry and market and the latest changes on the legal and regulatory environment. The records of the training received by the respective Directors are kept and updated by the company secretarial department of the Company. Areas of their training activities provided by the Company, relevant professional bodies and regulatory authorities are summarised as follows:

董事之持續培訓及發展

本公司將向每名新委任董事提供全面且正式的 就任須知文件,確保他╱她能足夠知悉公司條 例、上市規則及其他法規規定下其為董事之責 任、職責及義務,和確保他╱她對本公司之運 作與業務均有適當的理解。於本年度內,為符 合守則之守則條文A.6.5條,所有董事均參與 持續專業發展,以發展並更新其知識及技能。 董事已參加由本公司或其他專業資格團體或監 管機構所舉辦的課程或研討會。特別是,所有 董事已積極參與聯交所於二零二零年六月推出 的董事網上培訓,增進了他們的理解及執行於 二零二零年七月一日或之後開始的財政年度 生效的新環境、社會及管治(「環境、社會及管 治」)規定下的環境、社會及管治匯報職責。

再者,為確保所有董事能為董事會作出有識見 及恰當的貢獻,本公司公司秘書部門不時向董 事提供相關閱讀文件讓彼等知悉相關行業及市 場的最新消息以及法律和法規環境的最新變 化。各董事所接受之培訓紀錄已由本公司秘書 部保管及更新。本公司、有關專業資格團體和 監管機構向現時的董事提供的培訓活動範圍概 況如下:

						Board's roles
		Accounting,	Legal,			in ESG
		taxation and	Regulatory		Other	reporting
		legal	and corporate	Group's	professional	under
		professional	governance	policies/	development	New ESG
		trainings	updates	businesses	programs	Requirements
						董事會在
						新環境、
						社會及
		會計、稅務	法律、法規			管治規定下
		及法律專業	及企業管治	本集團的	其他專業	的相關
Name of Director	董事姓名	培訓	更新	政策╱業務	發展課程	匯報職責
Su Fanrong	蘇凡荣	–	✓	✓	–	✓
Tang Cornor Kwok Kau (Note 1)	鄧國求(附註1)	–	✓	✓	–	✓
Ye Qian	葉芊	–	✓	✓	–	✓
Li Jinping	李金平	–	✓	✓	–	✓
Liao Jun (Note 2)	廖駿(附註2)	–	✓	✓	–	✓
Yip Kin Man, Raymond	葉健民	✓	✓	✓	✓	✓
Lam Yiu Kin	林耀堅	✓	✓	✓	✓	✓
Feng Yaoling	馮耀嶺	–	✓	✓	–	✓

Notes:

附註:

• 1. Mr. Tang Cornor Kwok Kau resigned as an executive Director and a deputy managing Director on 30 November 2020.
• 1. Mr. Liao Jun resigned as a non-executive Director on 15 January 2021 and Mr. Adam Touhig was appointed as a non-executive Director on the same date.
• 1. 鄧國求先生於二零二零年十一月三十日辭任執行 董事及董事副總經理。
• 1. 廖駿先生於二零二一年一月十五日辭任非執行董 事,而Adam Touhig先生於同日獲委任為非執行 董事。

Directors have disclosed to the Company at the time of his appointment and in a timely manner for any change, the number and nature of offices held in public companies or organisations and other significant commitments and the time involvement in those public companies or organisations. In particular, Mr. Lam Yiu Kin holds more than seven listed company directorships. The Board, however, still believes that he is able to devote sufficient time to act as an independent non-executive Director on the basis that (i) he has confirmed he is able to and will devote sufficient time to discharge his duties and responsibilities as an independent non-executive Director; (ii) he is not preoccupied with any full-time work and none of his current commitments as an independent nonexecutive director of the other listed companies would require his full-time involvement and he does not participate in the day-to-day operations of those listed companies; (iii) with his extensive experience and knowledge, particularly on corporate governance acquired and developed from his background and past experience (including his directorships in other listed companies), he is fully aware of the responsibilities and expected time involvement for independent non-executive directors; and (iv) he has demonstrated that he is able to devote sufficient time to discharge his duties owed to each of the listed companies he has held directorship by attending board meetings and board committee meetings of these listed companies during their latest financial year, as disclosed in these listed companies' latest published annual reports.

CHAIRMAN AND MANAGING DIRECTOR

During the year under review, the roles of chairman and managing Director were combined together and performed by Mr. Su Fanrong since 31 January 2018, and thus deviated from the code provision A.2.1 of the Code. Such deviation is deemed appropriate as in consideration of Mr. Su's extensive knowledge and experience in various aspects, in particular the management in the steel industry and sales area, the Board considers this present arrangement still enables the Company to make decisions promptly in the formulation and implementation of the Company's strategies in achieving corporate goals. Further details of such deviation has been set out in page 42 under the heading "THE BOARD" above.

董事於接受委任時及有任何變動已適時向本公 司披露其於公眾公司或組織擔任職位的數目及 性質以及其他重大承擔,和擔任該等公眾公司 或組織所涉及的時間。特別是,林耀堅先生持 有超過七間上市公司的董事職位。然而,董事 會認為他仍可投入足夠時間擔任獨立非執行董 事,其依據是(i)彼已確認其能夠及將投入足夠 的時間履行其作為獨立非執行董事的職責和責 任;(ii)彼並不專注於任何全職工作,而彼作為 其他上市公司的獨立非執行董事的目前承諾不 會要求其全職參與,並且彼不會參與該等上市 公司的日常營運;(iii)憑藉彼豐富的經驗和知 識,尤其是根據其背景和過去的經驗中獲得和 發展的企業管治(包括彼在其他上市公司的董 事職位),彼完全了解獨立非執行董事的職責 和預期的工作時間;及(iv)彼已展示出有足夠 的時間透過參加彼持有董事職位之上市公司在 最近一個財政年度的董事會會議和董事委員會 會議來履行對該等上市公司各自應負的職責, 如該等上市公司最新發布的年度報告中所述。

董事長及董事總經理

於本年度回顧,董事長兼董事總經理之角色自 二零一八年一月三十一日起一併由蘇凡荣先 生擔任,因此偏離守則之守則條文A.2.1條。此 偏離被視為恰當,原因是考慮到蘇先生在各方 面,特別是管理鋼鐵行業及銷售方面擁有的豐 富知識和經驗,董事會認為目前的安排仍可使 本公司能夠及時制定決策以實現本公司目標。 有關此偏離的進一步細節已在第42頁上述標 題「董事會」中列出。

NON-EXECUTIVE DIRECTORS

Non-executive Directors (including independent nonexecutive Directors) of the Company are appointed for a specific term of three years commencing from 1 January 2020 and expiring on 31 December 2022, except (i) Mr. Lam Yiu Kin, who was appointed for a term commencing from 1 January 2021 and expiring on 31 December 2023; and (ii) Mr. Adam Touhig (was appointed as a non-executive Director on 15 January 2021 and Mr. Liao Jun resigned as a non-executive Director on the same date), who was nominated by Bekaert group without any letter of appointment setting out the key terms and conditions of his appointment as Director with the Company. All Directors are subject to retirement by rotation and re-election at least every three years at annual general meeting in accordance with the Articles.

BOARD COMMITTEES

The Board has established various board committees, namely remuneration committee, nomination committee and audit committee to manage particular aspects of the Company's affairs and aid in sharing the responsibilities of the Board. Moreover, all the board committees have formulated their specific written terms of reference in accordance with the requirements of the Code. The board committee members will also from time to time report their decisions and recommendations to the Board, if necessary.

To comply with the Code in relation to the requirements of the establishment of internal audit function and appropriate and effective risk management and internal control systems, the Company has engaged Moore Advisory Services Limited as the internal auditor of the Company since 2015. The audit committee takes the responsibility to review the risk management and internal control systems, the effectiveness of the Company's risk management and internal audit function and its other duties under the Code.

No corporate governance committee has been established but respective board committees (as disclosed below) are responsible for performing corporate governance functions set out in the terms of reference in code provision D.3.1 of the Code.

非執行董事

本公司之非執行董事(包括獨立非執行董事)以 指定任期委任,由二零二零年一月一日起至二 零二二年十二月三十一日止為期三年,除了(i) 林耀堅先生,其指定任期為二零二一年一月一 日起至二零二三年十二月三十一日止;及(ii) Adam Touhig先生(於二零二一年一月十五日 獲委任為非執行董事,而廖駿先生於同日辭任 非執行董事)(彼由Bekaert集團提名),其沒有 任何正式委任書,訂明有關其委任為董事的主 要條款及條件。所有董事均須根據章程細則規 定至少每三年一次在股東周年大會上輪席告退 及膺選連任。

董事委員會

董事會已成立多個董事委員會,分別為薪酬委 員會、提名委員會及審核委員會,藉以處理本 公司特定範疇的事務及協助分擔董事會之職 責。再者,所有董事委員會已根據守則之規定 擬定其特定職權範圍。董事委員會成員如需要 亦將不時向董事會報告彼等的決定和建議。

為符合守則有關建立內部審核功能和合適及有 效的風險管理及內部監控系統之要求,本公司 自二零一五年起聘請大華國際諮詢有限公司為 本公司內部核數師。審核委員會負責審查風險 管理及內部監控系統、本公司風險管理及內部 審核功能的有效性和守則所列其他職責。

本公司並沒有成立企業管治委員會,但各董事 委員會(如下文所述)已負責履行根據守則之守 則條文D.3.1條所列載的企業管治職能的職權 範圍。

Remuneration committee

The Remuneration Committee has been established on 4 April 2005 and consists of four members with a majority of independent non-executive Directors. The current members are:

Mr. Yip Kin Man, Raymond (Chairman) Mr. Su Fanrong (Vice Chairman) Mr. Lam Yiu Kin (Independent Non-executive Director) Mr. Feng Yaoling (Independent Non-executive Director)

and its terms of reference are summarised as follows:

• i) to make recommendations to the Board on the Company's policy and structure for all Directors' and senior management's (if any) remuneration and on the establishment of a formal and transparent procedure for developing remuneration policy;
• ii) to determine, with delegated responsibility, the remuneration packages of individual executive Directors and senior management (if any), including benefits in kind, pension rights, compensation payments (including any compensation payable for loss or termination of their office or appointment), or to make recommendations to the Board on the remuneration of non-executive Directors, and also to consider salaries paid by comparable companies, time commitment and responsibilities and employment conditions elsewhere in the Group;
• iii) to review and approve the management's remuneration proposals with reference to the Board's corporate goals and objectives;
• iv) to review and approve compensation payable to executive Directors and senior management (if any) for any loss or termination of office or appointment to ensure that it is consistent with contractual terms and is otherwise fair and not excessive;

薪酬委員會

薪酬委員會已於二零零五年四月四日成立並 由四名成員組成,其中大部分為獨立非執行董 事,現在成員為:

葉健民先生(主席) 蘇凡荣先生(副主席) 林耀堅先生(獨立非執行董事) 馮耀嶺先生(獨立非執行董事)

薪酬委員會之職權範圍概述如下:

• i) 就本公司之董事及高級管理人員(如有) 之全體薪酬政策及架構,及就設立正規而 具透明度之程序制定薪酬政策,向董事會 提出建議;
• ii) 獲董事會轉授責任釐定個別執行董事及 高級管理人員(如有)的薪酬待遇,包括非 金錢利益、退休金權利、賠償金額(包括 喪失或終止職務或委任的賠償),或就非 執行董事的薪酬向董事會提出建議,及考 慮同類公司支付的薪酬、須付出的時間及 職責以及集團內其他職位的僱用條件;
• iii) 因應董事會所訂企業方針及目標而檢討 及批准管理層的薪酬建議;

• iv) 檢討及批准向執行董事及高級管理人員 (如有)就其喪失或終止職務或委任而須 支付的賠償,以確保該等賠償與合約條款 一致,若未能與合約條款一致,賠償亦須 公平合理,不致過多;

• v) to review and approve compensation arrangements relating to dismissal or removal of Directors for misconduct to ensure that they are consistent with contractual terms and are otherwise reasonable and appropriate;

• vi) to consider the annual performance bonus for executive Directors and senior management (if any), having regard to their achievements against the performance criteria, and make recommendation to the Board;
• vii) to ensure that no Director or any of his associates is involved in deciding his own remuneration; and
• viii) to exercise such other powers, authorities and discretion, and perform such other duties, of the Directors in relation to the remuneration as the Board may from time to time delegate to it, having regard to the Code of the Listing Rules.

During the year under review, one remuneration committee meeting was held by the Company and the works performed by the remuneration committee included but not limited to: (i) the consideration of renewal of the service contracts of Mr. Su Fanrong as an executive Director and Mr. Lam Yiu Kin as an independent non-executive Director; and (ii) the review of the terms of reference of remuneration committee. The emoluments of the Directors are recommended by the remuneration committee to the Board, having regard to individual performance, the Group's performance and profitability, remuneration benchmark in the industry and prevailing market condition. The attendance record of the remuneration committee members at the meetings held during the year is set out in the "Attendance Record" on page 46 of this report.

The information in respect of emolument policy of the Group is set out in the relevant sections of the "REPORT OF THE DIRECTORS" of this annual report and a separate report, 2020 Environmental, Social and Governance Report (the "2020 ESG Report") (to be published).

• v) 檢討及批准因董事行為失當而解僱或罷 免有關董事所涉及之賠償安排,以確保該 等安排與合約條款一致,若未能與合約條 款一致,有關賠償亦須合理適當;
• vi) 根據執行董事及高級管理人員(如有)的 表現準則評核其表現,審議有關人員的年 度表現花紅,繼而向董事會提出建議;
• vii) 確保任何董事或其任何聯繫人士不得參 與釐定他自己的薪酬;及
• viii) 獲董事會不時之授權及根據守則的規定 就董事之薪酬待遇事宜行使其他權力、職 權及酌情權,以及履行其責任。

於本年度回顧,本公司曾舉行一次薪酬委員會 會議,薪酬委員會之工作包括但不限於:(i)考 慮更新蘇凡荣先生作為執行董事及林耀堅先生 作為獨立非執行董事之服務合約;及(ii)檢討薪 酬委員會職權範圍書。董事之酬金由薪酬委員 會按照個人表現、本集團之業績及盈利狀況, 亦以業界指標及當時市場環境而向董事會建 議。而有關薪酬委員會成員於本年度舉行的會 議之出席紀錄已列載於本報告第46頁內之「出 席紀錄」內。

有關本集團之酬金政策之資料已列載於本年報 「董事會報告」及一份即將發佈之獨立報告- 《二零二零年度環境、社會及管治報告》(「二零 二零年度環境、社會及管治報告」)相關章節 內。

Nomination committee

The nomination committee has been established on 4 April 2005 and consists of four members with a majority of independent non-executive Directors. The current members are:

Mr. Su Fanrong (Chairman) Mr. Yip Kin Man, Raymond (Vice Chairman) Mr. Lam Yiu Kin (Independent Non-executive Director) Mr. Feng Yaoling (Independent Non-executive Director)

Terms of reference of nomination committee are summarised as follows:

• i) to review and monitor the structure, size and diversity (including but not limited to gender, language, age, religion, social-economic status, cultural and educational background, ethnicity, professional experience, regional and industry experience, skills, knowledge, thinking styles, know-how and length of service) of the Board at least annually in accordance with the Board Diversity Policy and make recommendations on any proposed changes to the Board to complement the Company's corporate strategy;
• ii) to identify and/or nominate and then select or make recommendation to the Board on the selection of qualified individuals for appointment as additional Directors or to fill Board vacancies in accordance with the Policy for Nomination of a Director of the Company by considering the skills, experience and diversity of perspectives that the individual is expected to bring to the Board and what are their potential contributions as and when they arise with due regard for the benefits of diversity on the Board. Such appointment is subject to the approval of the Board;
• iii) to make recommendations (taking into account the Company's corporate strategy and diversity need in the future) to the Board on the appointment or reappointment of Directors and succession planning for Directors in accordance with the Policy for Nomination of a Director of the Company, in particular the chairman and the chief executive;

提名委員會

提名委員會已於二零零五年四月四日成立並由 四名成員組成,而其中大部分為獨立非執行董 事,現在成員為:

蘇凡荣先生(主席) 葉健民先生(副主席) 林耀堅先生(獨立非執行董事) 馮耀嶺先生(獨立非執行董事)

提名委員會之職權範圍概述如下:

• i) 根據董事會成員多元化政策,至少每年檢 討及監察董事會的結構、人數及多元化 (包括但不限於性別、語言、年齡、宗教、 社經地位、文化及教育背景、種族、專業 經驗、地區及行業經驗、技能、知識、思 想作風、技術及服務任期),並就任何為 配合本公司的公司策略而擬對董事會作 出的變動提出建議;
• ii) 在董事會需要增加董事人數或填補董事 空缺時,考慮多元化對董事會之好處,作 物色及╱或提名,並根據提名公司董事政 策考慮候任董事預期可為董事會帶來何 樣的技巧、經驗及多元觀點,以及為未來 作出怎樣的貢獻,然後進行甄選或向董事 會提出建議,惟有關委任須待董事會批准 方可落實;

• iii) 根據提名公司董事政策,就董事委任或 重新委任以及董事(尤其是董事長╱主席 及行政總裁)繼任計劃向董事會提出建議 (考慮本公司將來之企業策略及多元化需 要);

• iv) to disclose the Policy for Nomination of a Director of the Company, performed by the nomination committee during the year. This includes the nomination procedures and the process and criteria adopted by the nomination committee to select and recommend candidates for directorships during the year, setting out the procedures for the appointment and reappointment of Directors and board succession planning consideration;

• v) to assess and review the independence of independent non-executive Directors annually;
• vi) to review the Board Diversity Policy concerning diversity at all levels of Board members, including any measurable objectives and progress on achieving those objectives, and make disclosure of the policy or a summary of the policy in the corporate governance report annually;
• vii) for corporate governance issues, the nomination committee should (i) review and monitor the training and continuous professional development of Directors and senior management (if any); and (ii) develop, review and monitor the code of conduct and compliance manual (if any) applicable to the Company's employees and Directors;
• viii) the nomination committee shall make a statement or report to the Board after each meeting about its activities, the diversity of board members and the process used for appointments, reappointment of Directors under the Policy for Nomination of a Director of the Company and board succession planning consideration and explain if external advice has been used and disclose and publish in the annual report or other report as required subject to the Listing Rules which is amended from time to time; and

• ix) to exercise such other powers, authorities and discretion, and perform such other duties, of the Directors in relation to the nomination as the Board may from time to time delegate to it, having regard to the Code of the Listing Rules.

• iv) 披露年內由提名委員會執行的有關提名 公司董事政策,包括提名委員會年內就董 事候選人採納的提名程序以及遴選及推 薦準則,列出委任及重新委任董事的程序 及考慮董事會成員的繼任規劃;

• v) 每年評核獨立非執行董事的獨立性;
• vi) 就董事會成員多元化,檢討董事會成員多 元化政策,包括任何可計量目標及達標的 進度,以及每年在企業管治報告內披露其 政策或政策摘要;
• vii) 有關企業管治事宜,提名委員會應(i)檢討 及監察董事及高級管理人員(如有)的培 訓和持續專業發展;以及(ii)制定、檢討和 監察本公司僱員及董事的操守準則和合 規手冊(如有);
• viii) 提名委員會須於每次會議後向董事會申 述或報告有關其活動、根據提名公司董事 政策委任及重新委任任何董事之過程,考 慮董事會成員的繼任規劃以及就委任過 程解釋有否採用外聘意見,並需要根據有 關不時修訂之上市規則刊載於年報或其 他報告內;及
• ix) 獲董事會不時之授權及根據守則的規定 就董事之提名事宜行使其他權力、職權及 酌情權,以及履行該等其他責任。

During the year under review, two nomination committee meetings were held by the Company and the works performed by the nomination committee included but not limited to: (i) the review of current structure, size and diversity of the Board; (ii) the assessment and review of the independence of independent non-executive Directors; (iii) the review of the Board Diversity Policy, the progress of achieving measurable objective for 2020 and determine new measurable objective for year 2021 and the timetable in relation thereto; (iv) the review of the 2020 training and continuous professional development of Directors and note the new training requirement under the ESG Reporting Guide in 2021; (v) the recommendation and nomination of Directors to be re-elected at the forthcoming annual general meeting of the Company; and (vi) the review of terms of reference of nomination committee.

The Board Diversity Policy has been adopted since 2013 and was revised on 18 December 2018. Other than the elements of board diversity, in considering the nomination of new directors, the nomination committee members will subject to the Policy for Nomination of a Director of the Company take into account the qualification, ability, working experience and professional ethics of the candidates, especially their experience in the business/industry of the Group and/or other professional areas. The nomination committee then put forward the recommendation in respect of the above factors, where appropriate, to the Board for consideration and adoption according to the Policy for Nomination of a Director of the Company. The attendance record of the nomination committee members at the meetings during the year is set out in the "Attendance Record" on page 46 of this report.

於本年度回顧,本公司曾舉行了兩次提名委員 會會議,提名委員會之工作包括但不限於:(i) 檢討董事會目前的結構、規模及多元化;(ii)檢 討及評核獨立非執行董事的獨立性;(iii)檢討 經修訂的董事會成員多元化政策及二零二零 年可計量目標之進度及決定二零二一年新可計 量目標及其達標時間表;(iv)檢討二零二零年 董事的培訓和持續專業發展及知悉二零二一 年《環境、社會及管治報告指引》中的新培訓要 求;(v)建議及提名在即將舉行之本公司股東周 年大會上重選之董事;及(vi)檢討提名委員會 職權範圍書。

本公司自二零一三年採納了董事會成員多元化 政策,並於二零一八年十二月十八日出修訂。 除考慮董事會多元化元素外,在考慮提名新董 事時,提名委員會成員將依據提名公司董事政 策以候選人的資歷、能力、工作經驗及其專業 操守,尤其是其在本集團之業務╱行業及╱或 其他專業領域之經驗作考慮。提名委員會將根 據提名公司董事政策就以上考慮因素(如合適) 建議給董事會考慮及採納,而有關提名委員會 成員於本年度舉行的會議之出席紀錄已列載於 本報告第46頁內之「出席紀錄」內。

The summary of Board Diversity Policy

The Board Diversity Policy has been reviewed and recommended by nomination committee members and approved by Directors and adopted on 18 December 2018.

The Board Diversity Policy is summarised as follows:

• articulate the benefits of diversity, including gender diversity, and the importance of being able to attract, retain and motivate Directors from the widest possible pool of available talent, and also aware of development of a boarder and more diverse pool of skilled and experienced employee and that, in their skills, will prepare for senior management and board position to enhance the quality of the Company's performance;
• express the Company's commitment to diversity at all levels, including but not limited to gender, language, age, religion, social-economic status, cultural and educational background, ethnicity, professional experience, regional and industry experience, skills, knowledge, thinking styles, know-how and length of service, in particular focus on gender diversity, independence of the independent non-executive Directors and skills and experience; and
• prepare a board skills matrix helping the Board to assess the current mix of competencies and diversity on the Board and identify any gaps that may exist.

董事會成員多元化政策

董事會成員多元化政策已於二零一八年十二月 十八日由提名委員會成員檢討及建議,經董事 批准並獲得採納。

董事會成員多元化政策概述如下:

• 說明多元化(包括性別多元化)裨益良 多,及從廣泛的人才中吸納、保留和激勵 董事的重要性,及認識到發展更廣大和更 多元化有技能和經驗的僱員,及從他們的 技能就成為高級管理層和董事會職位做 好準備,以提升本公司的表現;
• 顯示本公司致力從多方面考慮多元化的 承諾,包括但不限於性別語言、年齡、宗 教、社經地位、文化及教育背景、種族、 專業經驗、地區及行業經驗、技能、知 識、思想作風、技術及服務任期,特別是 注重性別多元化,獨立非執行董事的獨立 性以及技能和經驗;及
• 準備董事會技巧矩陣有助董事會評估其 當下的能力及多元化狀況,找出任何可能 存在的不足。

The summary of Policy for Nomination of a Director of the Company

The Policy for Nomination of a Director of the Company has been recommended by nomination committee members and approved by Directors and adopted on 18 December 2018.

The Policy for Nomination of a Director of the Company is summarised as follows:

• state the objectives of the Policy for Nomination of a Director of the Company, including ensuring the Board has a balance of skills, experience and diversity of perspectives appropriate to the requirements of the Company's business;
• emphasise the ultimate responsibility for selection and appointment of Directors rests with the entire Board;
• set out the procedure for the selection, appointment and reappointment of Directors containing the selection criteria, including but not limited to considering the potential contributions a candidate can bring to the Board in terms of qualifications, skills, experience, independence and gender diversity;
• set out other factors, such as the present needs of the Board for particular expertise skills or experience and whether the candidates would satisfy those needs, the requirement for the Board to have independent non-executive Directors in accordance with the Listing Rules and whether the candidates for independent non-executive Directors would be considered independence with reference to the independence criteria or guidelines set out in the Listing Rules, the suitability to the Company's present needs for particular skills or experience and whether it fits with the Company's culture, which are related to the Company shall be considered to select a proposed candidate;
• list the nomination of Directors applicable laws and procedures;

提名公司董事政策之概要

提名公司董事政策已於二零一八年十二月十八 日由提名委員會成員建議並經董事批准,並獲 得採納。

提名公司董事政策概述如下:

• 列明提名公司董事政策的目標,包括確保 董事會成員俱備切合本公司業務所需的 技巧、經驗及多元觀點;
• 強調甄選並委任董事的最終責任由全體 董事會承擔;
• 列出制定甄選、委任及重新委任董事的程 序,其中附有甄選標準,包括但不限於考 慮個別人選可為董事會的資歷、技巧、經 驗、獨立性及性別多元化等方面帶來的貢 獻;
• 列出與本公司有關的其他因素,建議候選 人的資格,例如:董事會目前對特定的專 業技能或經驗的需求及候選人是否滿足 這些需求,要求董事會根據上市規則設立 獨立非執行董事及根據上市規則所載之 獨立准則或指引考慮獨立非執行董事候 選人是否被視為獨立,適合本公司目前對 特定技能或經驗的需求,及是否符合本公 司的文化;

• 列出委任董事適用的法律和程序;

• state the requirement of re-election of retirement of non-executive Directors (including the independent non-executive Directors) who have served for more than 9 years; and
• state the board succession planning considerations and periodical reviews of the plan.

The nomination committee will monitor the Policy for Nomination of a Director of the Company to ensure the effectiveness and will discuss any revisions that may be required, and recommend any such revisions to the Board for adoption.

The nomination committee will review the Policy for Nomination of a Director of the Company and disclose in this report on the Board's succession planning considerations to achieve the objective to ensure that it remains relevant to the Company's needs and reflects both current regulatory requirements and good corporate governance practice.

Audit Committee

The audit committee has been established on 30 December 1998. At present, it consists of three members and all of them are independent non-executive Directors. They are:

Mr. Yip Kin Man, Raymond (Chairman) Mr. Lam Yiu Kin (Independent Non-executive Director) Mr. Feng Yaoling (Independent Non-executive Director)

• 列出已連任超過九年的非執行董事(包括 獨立非執行董事)重選退任的條件;及
• 列出審議董事會成員的繼任計劃,並定期 檢討該計劃。

提名委員會將監督提名公司董事政策以確保有 效性,並將討論可能需要的任何修訂及建議董 事會採納任何此類修訂。

提名委員會將檢討提名公司董事政策,並在本 報告中披露董事會的繼任計劃,以確保與本公 司需求相關,並反映當前監管要求及良好的企 業管治。

審核委員會

審核委員會已於一九九八年十二月三十日成 立。目前由三名成員組成,及所有成員均為獨 立非執行董事,彼等為:

葉健民先生(主席) 林耀堅先生(獨立非執行董事) 馮耀嶺先生(獨立非執行董事)

Terms of reference of audit committee are summarised as follows:

Relationship with the Company's external auditor

• i) to be primarily responsible for making recommendations to the Board on the appointment, reappointment and removal of the external auditor, and to approve the remuneration and terms of engagement of the external auditor, and any questions of its resignation or dismissal;
• ii) to review and monitor the external auditor's independence and objectivity;
• iii) to review and monitor the effectiveness of the audit process in accordance with applicable standards and to discuss with the external auditor the nature and scope of the audit and reporting obligations before the audit commences;
• iv) to develop and implement policy on engaging an external auditor to supply non-audit services. For this purpose, "external auditor" includes any entity that is under common control, ownership or management with the audit firm or any entity that a reasonable and informed third party knowing all relevant information would reasonably conclude to be part of the audit firm nationally or internationally;
• v) to report to the Board, identifying and making recommendations on any matters where action or improvement is needed;

審核委員會之職權範圍概述如下:

與本公司外聘核數師之關係

• i) 主要負責就外聘核數師之委任、重新委任 及罷免向董事會提供建議、批准外聘核數 師之薪酬及聘用條款,及處理任何有關該 核數師辭任或辭退之問題;
• ii) 檢討及監察外聘核數師是否獨立客觀;
• iii) 按適用標準檢討及監察核數程序是否有 效,並於核數工作開始前先與外聘核數師 討論核數性質及範疇及有關申報責任;
• iv) 就外聘核數師提供非核數服務制定政 策,並予以執行。就此而言,「外聘核數 師」包括與核數公司處於同一控制權、所 有權或管理權之下之任何機構,或一個合 理知悉所有有關資料之第三方,在合理情 況下會斷定該機構屬於該核數公司之本 土或國際業務之一部分之任何機構;
• v) 就任何必須採取之行動或改善之事項向 董事會報告並提出建議;

Review of the Company's financial information

• vi) to monitor integrity of the Company's financial statements and annual report and accounts, half-year report and, if prepared for publication, quarterly reports, and to review significant financial reporting judgements contained in them. In reviewing these reports (if applicable) before submission to the Board, the audit committee should focus particularly on:
• (a) any changes in accounting policies and practices;
• (b) major judgmental areas;
• (c) significant adjustments resulting from audit;
• (d) the going concern assumptions and any qualifications;
• (e) compliance with accounting standards; and
• (f) compliance with the Listing Rules and legal requirements in relation to financial reporting;
• vii) in regard to (vi) above:
• (a) members of the audit committee should liaise with the Board and senior management (if any);
• (b) the audit committee must meet, at least twice a year, with the Company's external auditor;
• (c) the audit committee should consider any significant or unusual items that are, or may need to be, reflected in the report and accounts, it should give due consideration to any matters that have been raised by the Company's staff responsible for the accounting and financial reporting function, compliance officer (if any) (or person occupying the same position), or external auditor;

審閱本公司之財務資料

• vi) 監察本公司之財務報表以及年度報告及 賬目、半年度報告及(若擬刊發)季度報告 之完整性,並審閱其中所載有關財務申報 之重要判斷。審核委員會在向董事會提交 有關報表及報告(如適用)前,應特別針對 下列事項加以審閱:
• (a) 會計政策及實務之任何更改;
• (b) 涉及重要判斷之地方;
• (c) 因核數而出現之重大調整;
• (d) 企業持續經營之假設及任何保留意 見;
• (e) 是否遵守會計準則;及
• (f) 是否遵守有關財務申報之聯交所上 市規則及法律規定;
• vii) 就上文第(vi)項而言:
• (a) 審核委員會成員應與董事會及高級 管理人員(如有)聯絡;
• (b) 審核委員會每年最少須與本公司之 外聘核數師開會兩次;及
• (c) 審核委員會須考慮於該等報告及賬 目中所反映或需反映之任何重大或 不尋常事項,並應適當考慮任何由 本公司屬下會計及財務匯報職員、 監察主任(如有)(或擔任同一職位之 人士)或外聘核數師提出之事項;

Oversight of the Company's financial reporting system, risk management and internal control systems

• viii) to review the Company's financial controls, and unless expressly addressed by a separate board risk committee, or by the Board itself, to review the Company's risk management and internal control systems;
• ix) to discuss the risk management and internal control systems with management to ensure that management has performed its duty to have effective systems. This discussion should include the adequacy of resources, staff qualifications and experience, training programmes and budget of the Company's accounting, internal audit and financial reporting function;
• x) to consider major investigation findings on risk management and internal control matters as delegated by the Board or on its own initiative and management's response to these findings;
• xi) to ensure co-ordination between the internal auditor (if any) or the professional firm performing internal audit function and external auditor, and to ensure that the internal audit function is adequately resourced and has appropriate standing within the Company, and to review and monitor its effectiveness;
• xii) to review and assess the annual internal audit plan of the Company;
• xiii) to provide comments and recommendations on the enhancement of the risk management and internal control systems of the Group;
• xiv) to meet with the internal auditor (if any) or the representative of the professional firm performing internal audit function, if required, to ensure that there are no unresolved issues or concerns relating to risk management and internal control function;

監管本公司之財務申報制度、風險管理及內 部監控系統

• viii) 檢討本公司之財務監控,以及(除非有另 設的董事會轄下風險委員會又或董事會 本身會明確處理)檢討本公司的風險管理 及內部監控系統;
• ix) 與管理層討論風險管理及內部監控系 統,確保管理層已履行職責建立有效之系 統。討論內容應包括本公司在會計及財務 匯報職能方面的資源、僱員資歷及經驗是 否足夠,以及僱員所接受的培訓課程及有 關預算又是否充足;
• x) 主動或應董事會之委派,考慮任何有關風 險管理及內部監控事宜之重要調查結果 及管理層對調查結果之回應;
• xi) 確保內部核數師(如有)或執行內部審核 功能的專業公司和外聘核數師之工作得 到協調;並確保內部核數功能在本公司 內有足夠資源運作,並且有適當之地位; 以及檢討及監察內部核數功能是否有效;
• xii) 審閱和評估本公司的年度內部審核計劃;
• xiii) 提供意見和建議以加強本集團的風險管 理及內部監控系統;

• xiv) 如需要時,與內部核數師(如有)或執行內 部審核功能的專業公司之代表會面,以確 保不存在與風險管理和內部監控功能相 關尚未解決的問題或關注;

• xv) to seek assurance from internal auditor or the professional firm performing internal audit function that internal control processes for risk management are in place for the strategy determined by the Board;

• xvi) to review the content of the confirmation made by the management in relation to the effectiveness of the Group's risk management and internal control systems prior to submission to the Board;
• xvii) to review the Group's financial and accounting policies and practices;
• xviii) to review the external auditor's management letter, any material queries raised by the external auditor to management about accounting records, financial accounts or systems of control and the management's response;
• xix) to ensure that the Board will provide a timely response to the issues raised in the external auditor's management letter;
• xx) to review arrangements employees of the Company can use, in confidence, to raise concerns about possible improprieties in financial reporting, internal control or other matters. The audit committee should ensure that proper arrangements are in place for fair and independent investigation of these matters and for appropriate follow-up action;
• xxi) to act as the key representative body for overseeing the Company's relations with the external auditor;
• xxii) to report on all of the above matters in the code provisions of the Code to the Board;

• xxiii) to consider any other matters specifically referred to the audit committee by the Board;

• xv) 向內部核數師或執行內部審核功能的專 業公司尋求確證,有關風險管理之內部監 控程序以配合董事會制定之策略;

• xvi) 審閱呈交董事會前管理層所作出有關本 集團風險管理和內部監控系統有效性之 確認函的內容;
• xvii) 檢討本集團之財務及會計政策及實務;
• xviii) 審閱外聘核數師之管理層信函、外聘核數 師就會計紀錄、財務賬目或監控系統向管 理層提出之任何重大疑問及管理層作出 之回應;
• xix) 確保董事會及時回應外聘核數師之管理 層信函中提出之事宜;
• xx) 檢討本公司僱員可暗中就財務匯報、內部 監控或其他方面可能發生的不正當行為 提出關注之設定安排。審核委員會應確保 有適當安排,讓本公司對此等事宜作出公 平獨立的調查及採取適當跟進行動;
• xxi) 擔任本公司與外聘核數師之間的主要代 表,負責監察二者之間的關係;
• xxii) 就守則之守則條文中上述所有事宜向董 事會匯報;
• xxiii) 考慮任何其他由董事會特定提交審核委 員會處理之事項;

Corporate Governance Issues

• xxiv) to develop and review the Company's policies and practices on corporate governance and make recommendations to the Board, and implement the corporate governance policies laid down by the Board;
• xxv) to review and monitor the Company's policies and practices on compliance with legal and regulatory requirements; and
• xxvi) to review the Company's compliance with the Code and other related rules.

During the year under review, four audit committee meetings were held by the Company and the attendance record of the audit committee members at the meetings held during the year is set out in the "Attendance Record" on page 46 of this report.

The works performed by the audit committee included but not limited to: (i) discussion on and review of the half year and annual financial statements of the Group (including but not limited to financial and accounting policies and practices); (ii) meeting with the representatives of the professional firm performing internal audit function (the internal auditor) to discuss risk management process and the effectiveness of internal control system of the Group and make recommendations in relation thereto; (iii) review of the findings in respect of the internal audit service together with the recommendations to the Company; (iv) review of the internal audit plan prepared by the internal auditor; (v) meeting with external auditor in the absence of management to discuss any issue arising from the audit and the other matters the external auditor may raise; (vi) recommend the re-appointment of PricewaterhouseCoopers as external auditor of the Group and review of the audit fees; (vii) respond to the external auditor their knowledge of any actual, suspected or alleged fraud affecting the Group; (viii) discuss matters in relation to the compliance of law, rules and regulations, and accounting policies and practice of the Group; and (ix) review of the audit service plan prepared by the external auditor.

企業管治事宜

• xxiv) 制定及檢討本公司的企業管治政策及常 規,並向董事會提出建議,以及落實經董 事會通過的企業管治政策;
• xxv) 檢討及監察本公司在遵守法律及監管規 定方面的政策及常規;及
• xxvi) 檢討本公司遵守守則及其他相關規則的 情況。

於本年度回顧,本公司舉行了四次審核委員會 會議,而審核委員會成員於本年度舉行的會議 之出席紀錄已列載於本報告第46頁內之「出席 紀錄」內。

審核委員會的工作包括但不限於:(i)討論及審 閱本集團上半年及全年財務報告(包括但不限 於財務及會計政策及實務);(ii)與執行內部審 核功能的專業公司(內部核數師)會面以討論本 集團的風險管理程序及內部監控系統的有效性 並就相關事宜提出建議;(iii)審閱有關內部審 計服務的調查結果以及對本公司的建議;(iv) 審閱及評估內部核數師編製的內部審計計劃; (v)在沒有管理層的情況下與外聘核數師會面, 討論審計引起的任何問題和外聘核數師可能提 出的其他事項;(vi)建議重新聘用羅兵咸永道 會計師事務所為本集團的外聘核數師並審核 審計費用;(vii)回應外聘核數師彼等知悉任何 對於影響本集團的實際、懷疑或涉嫌的欺詐行 為;(viii)討論有關遵守法律,法規及規則及本 集團會計政策及慣例的事宜;及(ix)審閱外聘 核數師的審計服務計劃。

The audit committee members also discuss matters falling within its terms of reference with the external auditor in the presence of the financial controller and the company secretary from time to time as they request. When there are uncertainties or ambiguities in the interpretation of accounting standards in preparing the half year and annual accounts that may likely to materially impact on the financial position of the Group, the Company will prepare certain analysis explaining the situation in relation thereto for the audit committee members consideration and understanding. The audit committee members have full access to, and the co-operation of, the Company's management in ensuring that it is satisfied with the Company's internal control system.

During the financial year of 2020, the audit committee members had made valuable and positive contribution, and delivered independent and informed comments for the formulation and implementation of the Company's operational strategies and policies. Apart from meeting with the internal auditor, the audit committee members had also reviewed certain areas of the risk management and internal control systems of the Company in accordance with the code of corporate governance and reviewed the risk assessment reports, required the management of the Group to confirm the effectiveness of risk management and internal control systems and advised them to pay attention to those areas associated with high risks and take relevant measures to further improve the risk management and internal control systems of the Group. The concerns raised and discussed in respect of risk assessment and internal control systems had also been put forward to the Board to consider whether the measures to mitigate those risks are effective and adequate during the year under review.

A whistleblowing policy and system have been implemented and set up since 22 March 2012 and revised on 1 August 2018 for employees and those who deal with the Company (e.g. customers and suppliers) to raise concerns, in confidence, with the audit committee about possible improprieties in any matter related to the Company.

審核委員會成員亦會不時要求在財務總監及 公司秘書在場的情況下,與外聘核數師就其職 權範圍內的事宜作出討論。如在準備半年度或 年度賬目時對會計制度的解釋出現不確定或 含糊的情況,而該情況可能顯著地影響本集團 的財務狀況,本公司將準備若干分析解釋有關 情況,以供審核委員會成員考慮及理解有關事 宜。審核委員會成員可充份接觸本公司之管理 層及獲得管理層的合作以確保他們滿意本公司 之內部監控系統。

於二零二零年財政年度,審核委員會成員已就 本公司制定及實行之業務策略及政策做出了寶 貴及正面的貢獻和提出了獨立及有根據的意 見。除與內部核數師會面外,審核委員會成員 亦根據企業管治守則檢討了本公司風險管理及 內部監控系統、風險評估報告、要求本集團管 理層確認風險管理及內部監控系統的有效性及 就建議本公司管理層應高度關注高風險範圍及 採取有關措施,進一步改善本集團之風險管理 及內部監控系統。於本年度回顧,就有關風險 評估和內部監控系統方面提出和討論的關注亦 已提交予董事會,以考慮這些措施以減輕該等 風險是否有效和足夠。

舉報政策及系統自二零一二年三月二十二日已 實施及建立,並於二零一八年八月一日修訂, 讓僱員及其他與本公司有往來者(如客戶及供 應商)可暗中向審核委員會提出其對任何可能 關於本公司的不當事宜的關注。

RISK MANAGEMENT AND INTERNAL CONTROL

The Board is responsible for maintaining, reviewing and monitoring risk management and internal control systems of the Company and to ensure their effectiveness. We believe effective risk management and internal control systems are essential for the success of the operation of business and good corporate governance. The Internal Control Manual, which sets out the guidelines for the operation of the internal control system and risk management system, had been adopted by the Company since 1999. These systems cover all main aspects, including financial, operational, compliance control and risk management. In order to align with the amendments made to relevant laws, rules and regulations, and further improve the risk management and internal control systems, the Board is responsible to review and improve the systems from time to time, if necessary.

In fact, the Board has set out five objectives for the management to achieve, details are as below:

• 1. Maximise profitability by increasing the gross profit margin of the business segment and at the same time minimise the production costs
• 1. Maintain a strong cash flow position of the Group
• 1. Enhance product quality
• 1. Attract new customers and develop markets for each of the business segments
• 1. Full compliance with laws, rules and regulations and financial reporting requirements

Hence, a risk assessment on the existing or potential risks that may affect the achievement of the above objectives would be conducted from time to time, at least twice a year by the management during the course of business operation and management.

風險管理及內部監控

董事會有責任維持、檢討及監察本公司風險管 理及內部監控系統,並確保其有效性。我們認 為有效的風險管理和內部監控系統對於業務運 營的成功和良好的公司管治是必要的。本公司 自一九九九年已採納了內部監控指引建立了操 作內部監控及風險管理系統之準則。該等系統 已涵蓋所有主要範疇,包括財務監控、運作監 控和合規監控及風險管理。為了與有關法律、 條例及規定的修改一致,以及進一步改善風險 管理及內部監控系統,董事會負責定時檢討及 改善該等系統(如需要)。

事實上,董事會已制定五個目標以給管理層達 成,詳情如下:

• 1. 透過增加業務分部的毛利率及同時降低 生產成本來達到盈利最大化
• 1. 保持集團強健的現金流
• 1. 提升產品質量
• 1. 為業務分部吸納新客戶和拓展市場
• 1. 完全符合法律,守則規章和財務報告的要 求

因此,管理層將不時(每年至少兩次)對在運營 和管理過程中可能影響實現上述目標的現有或 潛在風險進行風險評估。

The framework of the risk management and internal control 本集團的風險管理及內部監控系統之框架: systems of the Group:

• Internal Auditor Perform internal audit services for the Group 內部核數師 為本集團進行內部審核服務
• Deliver internal audit reports to the audit committee and the Board

向審核委員會和董事會提交內部審核報告

• Meet with the audit committee members to discuss the major findings and make recommendations to improve the risk management and internal control systems of the Group 與審核委員會成員會面,討論主要調查結果並提出改善本集團風險 管理和內部監控系統的建議

Heads of core business units/departments

• Assess the risk level based on potential impact and likelihood of risks in different aspects at least semi-annually 核心業務單位╱部門主管 最少每半年根據潛在影響和可能性評估在不同方面的風險之風險程 度

• Identify the material risks and discuss measures to mitigate risks

識別重大風險並討論降低風險的措施

• Give a confirmation annually on the effectiveness of the risk management and internal control systems of its business unit/ department and submit it to the audit committee 每年確認各自業務單位╱部門主管之風險管理和內部監控系統的有 效性,並提交確認函予審核委員會

Process to identify, evaluate and manage significant risks

Two risk assessment meetings were held during the year, at approximately half year intervals. The heads of the core business units/departments of the Company and/or its subsidiaries assessed the risk level based on potential impact and likelihood of risks in different aspects including business risk, financial risk, compliance risk and operational and other risks that may be exposed to. They fill out the risk assessment form which was devised with reference to the guidance entitled "Internal Control and Risk Management – A Basic Framework" issued by Hong Kong Institute of Certified Public Accountants before the meetings were held. The management of the core business units/ departments of the Company and/or its subsidiaries participated in the risk assessment meetings. The meetings aimed to identify the material risks and to discuss the measures to manage risks. Besides, the status and effectiveness on implementation of internal control measures taken after the last risk assessment meeting would be followed up in the risk assessment meetings.

Subject to the Code and terms of reference of the audit committee of the Company, the management of each core business unit/department of the Group will provide the internal auditor with their written confirmation annually in relation to the effectiveness and adequacy of their risk management and internal control systems for further review, comment and recommendation and thereafter the audit committee will review the same prior to submission to the Board. The internal auditor will base on the nature and extent of the risks of each individual core business unit/ department to perform further review and recommendation.

In addition to the above assessment process, the management report and discuss at the monthly meeting on the existing risk and potential risks of business operation and cash flow positions of the Group has to face and monitor.

用於識別、評估和管理重大風險的程序

於本年度舉行了兩次風險評估會議,大約每半 年一次。本公司及╱或其附屬公司核心業務單 位╱部門主管根據面對不同風險所潛在的影 響及可能性評估風險,包括業務風險、財務風 險、合規風險和營運及其他風險。在舉行會議 前,彼等填寫是參考香港會計師公會發佈之 「內部監控和風險管理-基本框架」的指引而 制定的風險評估表。本公司及╱或其附屬公司 核心業務單位╱部門管理層已參與該等風險 評估會議。該等會議的目的是分別出重大的風 險,並討論減輕風險的措施。此外,在風險評 估會議上會跟進上一次風險評估會議內部監控 措施的執行狀況和成效。

根據守則和本公司審核委員會的職權範圍書, 本集團每個核心業務單位╱部門之管理層每年 就其業務單位╱部門的風險管理和內部監控系 統的有效性及足夠性,向內部核數師提供書面 確認函作進一步審閱、評論及建議,而其後審 核委員會將在呈交董事會前審閱該確認函。內 部核數師將根據各核心業務單位╱部門的風險 性質和程度進行進一步審查和建議。

除了上述評估程序外,管理層在每月會議上匯 報及討論本集團需面對及監控之現有風險和潛 在風險以及本集團現金流量的情況。

The Company has engaged Moore Advisory Services Limited, as the internal auditor of the Company. During the year, the internal auditor had (i) met with the audit committee to discuss and provide recommendations on improving the risk assessment process of the Group; (ii) discussed the major findings in respect of internal audit services with the audit committee and provided recommendations for improvement on internal control; and (iii) delivered the audit committee the internal audit reports regarding the main risk areas of the business segments of the Group and internal audit plan in relation thereto, etc. Apart from taking part in advising the maintenance of an effective and adequate risk management and internal control systems of the Company, they also reviewed and monitored the internal operation of the Group through the testing and controls performed after arranging site visits of the two steel cord plants.

All relevant confirmations from the management provided to the Board on the effectiveness and adequacy of the Company's risk management and internal controls systems for the year ended 31 December 2020 had been received. The audit committee members had reviewed those contents of the confirmations and submitted the same to the Board. The Board had reviewed and confirmed the effectiveness and adequacy of the Group's risk management and internal control systems at the Board meeting.

In view of the foregoing, the Board had duly ensured the review of the effectiveness and adequacy of the risk management and internal control systems of the Group was conducted at least annually and the Board therefore considered that the risk management and internal control systems of the Group were effective and adequate throughout the year of 2020. However, there is room for improvement in certain areas, for instance, the measures of managing operational and other risks, such as product quality control and new product development.

本公司已聘任大華國際諮詢有限公司為本公司 內部核數師。於本年度,內部核數師(i)與審核 委員會會面以討論本集團的風險管理程序並提 出建議以改善風險評估程序;(ii)與審核委員會 討論有關內部審核服務及提供對內部監控作出 改善之建議;及(iii)向審核委員會提交有關本 集團業務分部的主要風險等等。除協助建議本 公司維持一個有效及充足的風險管理及內部監 控系統,他們亦於兩間鋼簾線廠房實地視察後 進行測試及監控,以檢討及監控本集團之內部 運作。

管理層向董事會提供截至二零二零年十二月 三十一日止年度的所有有關本公司之風險管理 和內部監控系統是否有效及足夠之相關確認函 已收悉。審核委員會成員已審閱該等確認函的 內容並提呈董事會,董事會已在董事會會議上 審閱並確認本集團風險管理和內部監控系統的 有效性及足夠性。

鑒於上述,董事會已確保最少每年檢討一次本 集團的風險管理及內部監控系統是否有效及足 夠及董事會認為本集團於二零二零年內之風險 管理和內部監控系統是有效和充足的。但是, 若干範疇例如管理營運及其他風險中有關產品 品質控制及新產品開發計劃方面的措施還有改 善的空間。

Procedures for handling and dissemination of inside information

The Company complied with the Listing Rules, SFO and other regulatory requirements regarding the handling and dissemination of inside information. Directors and senior management of the Company oblige to take all reasonable measures to ensure that proper safeguards exist to prevent the Company from breaching the statutory disclosure requirement. Directors and senior management of the Company follow the guidelines stipulated in Continuous Disclosure Obligation Policy of the Company which has been adopted by the Board since 2011. Some principles of dissemination of inside information of the Company were stated in the said policy, details are as follows:

The heads of business units/individual departments identify and assess whether a potential event or transaction may constitute inside information. If that is the case the potential event or transaction should be reported to the senior management of the Company, through the Company Secretarial Department. The senior management will consider with the chairman/managing Director whether the information constitute inside information and report to the Board. The Board will consider whether the information may constitute inside information and whether disclosure and/or trading halt would be required. If this constitutes inside information, the Company Secretarial Department of the Company would have to arrange for trading halt, prepare and publish an announcement after approval by the Board.

處理及披露內幕消息的程序

本公司遵守上市規則、證券及期貨條例及其他 有關處理及披露內幕消息的監管規定。本公司 的董事及高級管理層有責任採取一切合理措 施,以確保有妥善的預防措施防止違反披露規 定。本公司的董事及高級管理層須遵守本公司 之持續披露責任政策中的指引之規定,該政策 自二零一一年起獲董事會採納批准。本公司亦 在上述政策說明內幕消息披露的若干原則,詳 細如下:

業務單位主管╱個別部門主管需辨別和評估有 關潛在或發展中的事件是否能構成內幕消息。 如是潛在的事件或交易必須通過公司秘書部 報告給本公司高級管理層。高級管理層與董事 長╱或董事總經理會考慮該資料是否構成內幕 消息並向董事會匯報。董事會將考慮該資料是 否可能構成內幕消息,以及是否需要披露和╱ 或短暫停牌。如其構成內幕消息,於取得董事 會的批准後,公司秘書部會安排申請短暫停 牌、準備和刊發公告。

Below flow chart illustrates the internal control and reporting system of the Company relating to inside information:

以下為本公司對有關內幕消息之內部監控及申 報系統流程圖:

Heads of business units/individual departments to identify and assess whether potential or developing events may constitute inside information*

業務單位╱個別部門主管需辨別和評估有關潛在或發展中的事件是否能構成內幕消息*

If yes, report to senior management of the Company (the usual channel is through the company secretary of the Company) 如是,將向本公司高級管理層(一般是通過本公司 公司秘書渠道)匯報

Responsible senior management to consider with the chairman/managing Director whether the information may constitute inside information 由負責之高級管理層與董事長╱董事總經理考慮該資料是否能構成內幕消息

If yes, report to the Board with supporting documents through the channel of Company Secretarial Department of the Company. The Company Secretarial Department considers potential disclosure implications (with assistance of legal counsel if appropriate) and arranges for collating and circulating relevant information to the Board for further consideration

如是,將一併與有關支持文件交由本公司公司秘 書部向董事會匯報。公司秘書部會考慮潛在的披 露影響(如合適,連同法律顧問之協助)及安排核 對和轉發有關資料予董事會作進一步考慮

The Board to consider whether the information may constitute inside information and whether disclosure and/ or request of trading halt would be required 由董事會考慮該資料是否能構成內幕消息及是否需要披露及╱或需要申請短暫停牌

If yes, the Company Secretarial Department of the Company arranges for trading halt and/ or preparing announcement

如是,本公司公司秘書部將安排申請短暫停牌 及╱或準備公告

Trading halt is made and announcement is published on the websites of the Company and the Stock Exchange after approval by the Board 於取得董事會的批准後,提出短暫停牌及在本公司及聯交所網站刊發公告

* The heads of business units/individual departments can consult the functional departments of the Company, if he/she has any query about what constitute inside information

* 業務單位╱個別部門主管如對有關可能構成內幕 消息的資料有任何疑問,他╱她可與有關職能部 門的主管作進一步查詢

Directors or employees of the Group in possession of the inside information must maintain strict confidentiality of unpublished inside information until it is announced and ensure this is the strictest security of the information is observed within the Company and its advisers and if the necessary degree of confidentiality cannot be maintained, an announcement shall be made as soon as reasonably practicable; or if inside information has been advertently divulged, an announcement shall be issued immediately so as to disseminate such information to the market as a whole.

The Board monitors the inside information disclosure having regard to the SFO and Listing Rules requirements and the Company ensure that the dissemination of inside information to the Shareholders and other stakeholders is dealt fairly in order to avoid any person having a privileged dealing position.

DIVIDEND POLICY

In order to maintain a high standard of corporate governance practice and be in line with code provision E.1.5 of the Code requiring all listed issuer to disclose its dividend policy in their annual reports, the dividend policy of the Company has been adopted by the Board on 18 December 2018, which includes setting standard rules and guidelines to be followed by the Board in deciding whether to recommend dividend out of the profits and the amount of dividend per share to be distributed. The objective of the dividend policy is to reward its Shareholders by sharing a portion of the profits, while also ensure that enough funds are retained for future prospects of the Company and strive for a balance between the growth of the Company and the benefits of the Shareholders.

When considering the decision on dividend declaration, we will take into account both the internal factors and external factors.

董事或本集團的僱員擁有內幕消息必須對未公 佈的內幕消息保持絕對保密並須確保本公司及 其顧問均嚴守消息保密直至公佈,若無法保持 所需的機密性,應在合理地切實可行的範圍內 盡快刊發公告,或該內幕消息可能已外泄,便 應即時刊發公告向市場整體披露該消息。

董事會需按照證券及期貸條例及上市規則的規 定監察內幕消息的披露及本公司會確保內幕消 息公平地向股東及其他持份者發放,以避免任 何人士在證券交易上處於佔優的地位。

股息政策

為維持高水平的企業管治常規,並符合守則之 守則條文E.1.5條規定所有上市發行人須在其 年報中披露其股息政策,本公司之股息政策已 於二零一八年十二月十八日獲董事會採納。本 政策內容包括讓董事會決定是否建議從利潤中 分配股息及每股分配的股息金額而制定可跟從 的標準規則和指導方針。股息政策的目的是通 過分享部分利潤來回報股東,同時確保為本公 司的未來發展前景保留足夠的資金,並旨在力 求在本公司增長與股東利益之間取得平衡。

在決定股息分配時,我們會考慮內在因素及外 在因素。

For internal factors, we will consider the: (i) profitability of the Company; (ii) liquidity position and the availability of free cash flow; (iii) capital requirements for growth plans of the Company which may require funds preservation and internal funds generation, both internal and external; (iv) investment opportunities available with the Company; (v) borrowing capacity of the Company so as to capture any growth opportunities, inorganic or otherwise; (vi) ability to receive dividend from the Company's subsidiaries and associated companies; and (vii) Shareholder's expectation of a profitable return on their investment to maintain their investment in the Company.

For external factors, we will consider the: (i) statutory and regulatory requirements and restrictions on the dividend distributions; (ii) contractual restrictions/restrictions in debt covenants which affect the Company's ability to pay dividends; (iii) prevailing economic climate in the global including the PRC that will affect the availability of profits for dividend; (iv) emerging trends in the financial market and business cycle of steel cord business that will affect the growth and performance of the steel cord industry; and (v) taxation consideration.

The Board may declare interim dividends at its absolute discretion in line with the dividend policy, or if the Board are justified by the profits of the Company available for distribution. If the share capital is divided into different classes (if applicable), the Directors may pay interim dividends on shares which confer deferred or non-preferred rights with regard to dividend as well as on shares which confer preferential rights with regard to dividend, but no interim dividend shall be paid on shares carrying deferred or non-preferred rights if, at the time of payment, any preferential dividend is in arrears.

The Directors may also pay at intervals settled by them any dividend payable at a fixed rate if it appears to them that the profits available for distribution justify the payment.

The Board may recommend quantum of final dividend payable to the Shareholders at its annual general meeting in line with the dividend policy, subject to the approval of the Shareholders in the Meeting, based on the aforesaid factors arrived at as per the audited financial statements.

內在因素方面,我們將考慮:(i)本公司的盈利 能力;(ii)流動資金狀況和自由現金流的可用 性;(iii)增長計劃的資本要求,可能需要本公司 保留其資金及資金撥用,內部及外部;(iv)本公 司的投資機會;(v)本公司的借貸能力以抓住外 圍或其他增長機會;(vi)獲得本公司的附屬公 司和聯營公司股息的能力;及(vii)股東對獲得 有利可圖的投資回報的期望從而維持其對本公 司的投資。

外在因素方面,我們將考慮:(i)股息分派的法 定及監管要求及限制;(ii)影響本公司支付股息 的能力的合同制約╱債務契約的限制;(iii)當 前包括中國在內的全球經濟狀況影響可供派發 股息之溢利;(iv)金融市場的新興趨勢和鋼簾 線業務的商業周期將影響鋼簾線行業的增長和 表現;及(v)稅務考慮。

董事會可根據股息政策行使全權的酌情權派發 中期股息,或如董事會認為本公司可供分派之 溢利情況足以派發中期股息。如股本分為各類 不同股份(如適用),則董事除可派發中期股息 予享有派息優先權股份之持有人外,亦可派發 中期股息予遞延股份或非優先股份之持有人。 惟倘於派付股息時,尚有任何優先股股息並未 償付,則不得派發中期股息予遞延或非優先股 份之持有人。

如董事認為可供分派之溢利情況足以派發,則 董事亦可不時派發定額股息。

經股東於股東周年大會上批准,根據經審計的 財務報表得出的上述因素,本公司董事會可於 會議上根據股息政策建議應付股東的末期股息 金額。

The dividend shall be paid in the form of: (i) cash; or (ii) a scrip dividend; or (iii) a combination of partly in (i) and partly in (ii) above. The Company may offer the Shareholders the option of receiving scrip shares in lieu of cash, which may enable the Shareholders to increase their investment in the Company without incurring brokerage fees.

The Company shall endeavor to maintain a reasonable dividend payout ratio, whether as interim and/or final dividends, subject to (i) capital needs of the Company; (ii) positive operating cash flows; and (iii) other financial factors enumerated in the dividend policy. The Company may recommend a special dividend in special circumstances.

The dividend policy shall be disclosed in the annual report of the Company. The disclosure is expected to allow investors to make a more informed decision when investing in the Company.

The dividend policy would be subject to revision and amendment under the Articles and the Hong Kong law, including the Companies Ordinance and the Listing Rules, from time to time, on the subject matter. The Company reserves its right to alter, modify, add, delete or amend any of the provisions of the said policy.

In case of any amendment(s), clarification(s), circular etc. issued by the relevant authorities, not being consistent with the provisions laid down under the said policy, then such amendment(s), clarification(s), circular etc. shall prevail upon the provisions hereunder and the said policy shall stand amended accordingly from the effective date as laid down under such amendment(s), clarification(s), circular etc.

The dividend policy does not constitute a legally binding commitment by the Company in respect of its future dividend and/or in no way obligate the Company to declare a dividend at any time or from time to time, but only represents a general guidance and information purpose regarding the dividend policy. The Board reserves the right to depart from and amend the said policy as and when circumstances so warrant.

股息應以下列形式支付:(i)現金;或(ii)代息股 份;或(iii)部份按上列(i)項與部份按上列(ii)項之 組合。本公司可向股東提供以股代息取代現金 的選擇,在不產生經紀費的情況下,而增加股 東對本公司的投資。

不論是中期及╱或末期股息,本公司將努力維 持合理的股息派發比率,同時考慮(i)公司的資 金需求;(ii)正向經營現金流量;及(iii)股息政 策中列舉的其他財務因素。本公司亦可能會在 特殊情況下建議派發特別股息。

股息政策應在本公司年報中披露。預期披露將 令投資者在投資本公司時能作出有根據的投資 決定。

股息政策可根據章程細則及香港法律(包括公 司條例及上市規則)不時作出修改及修訂。本 公司保留更改、修改、添加、刪除或修訂本政 策任何條款的權利。

如果有關部門發佈的任何修改、澄清、通函等 不符合本政策規定的條款,則以該等修改、澄 清、通知之條款的規定為準,及本政策應自該 等修正、澄清、通函規定的生效日期起相應修 改。

股息政策並不構成本公司對其未來股息的任何 具有法律約束力的承諾和╱或絕不意味著公司 會在任何時間或不定時宣布股息,但僅代表關 於股息政策的一般指導和訊息目的。視乎情況 所需要時,董事會保留偏離並修改本政策的權 利。

AUDITOR'S REMUNERATION

During the year, the remuneration paid/payable to the external auditor, PricewaterhouseCoopers, is set out as follows:

核數師酬金

在本年度,已支付╱應付予外聘核數師羅兵咸 永道會計師事務所的酬金載列如下:

Services rendered	所提供服務	HK\$'000 港幣千元
Audit services	審計服務	1,537
Non-audit services:	非審計服務:
Interim review	中期審閱	378
Others	其他	20
		1,935

RESPONSIBILITY FOR PREPARATION AND REPORTING OF FINANCIAL STATEMENTS

The Directors acknowledge their responsibility for preparing the consolidated financial statements of the Group in accordance with statutory requirements and applicable accounting and financial reporting standards to enable the presentation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error. The Directors will subject to statutory requirements and applicable accounting standards, select suitable accounting policies and apply them consistently, make prudent, fair and reasonable judgements and estimates and prepare the financial statements on a going concern basis.

COMPANY SECRETARY

The company secretary of the Company is a full time employee of the Group. She reports to the chairman and/ or managing Director. During the year, the company secretary of the Company has duly complied with the relevant professional training requirement under Rule 3.29 of the Listing Rules.

編製及呈報財務報告之責任

董事知悉彼等有責任根據法定要求及適用會計 及財務報告準則編製本集團綜合財務報告,以 確保綜合財務報告不會因欺詐或錯誤而出現重 大錯誤陳述。董事將遵守法定要求及適用之會 計準則,選擇並貫徹運用合適的會計政策,作 出審慎、公平及合理之判斷及估算,並按持續 經營為基準編製財務報告。

公司秘書

本公司之公司秘書為本集團之全職僱員。彼需 向董事長及╱或向董事總經理匯報。於本年 度,本公司之公司秘書已遵守上市規則第3.29 條有關專業培訓之規定。

SHAREHOLDERS' RIGHTS

The Board recognises the importance of effective communication with Shareholders. In order to maintain an ongoing dialogue with Shareholders, the Company has opportunities to directly communicate with Shareholders at various annual general meetings and other general meetings where Shareholders are encouraged to actively attend. In addition, the chairman of the Board and the chairman of each of remuneration committee, nomination committee and audit committee were present to answer any Shareholder's questions at the 2020 annual general meeting (the "2020 AGM"). The external auditor had also attended the 2020 AGM to answer questions about the conduct of the audit, the preparation and content of the auditor's report, the accounting policies and auditor's independence.

Procedures for members/Shareholders to convene a general meeting ("GM")

Under Section 566 of the Companies Ordinance, the directors are required to call a GM if the Company has received requests to do so from members/Shareholders of the Company representing at least 5% of the total voting rights of all the members/Shareholders having a right to vote at GM.

The request:–

• (a) must state the general nature of the business to be dealt with at the GM;
• (b) may include the text of a resolution that may properly be moved and is intended to be moved at the GM;
• (c) may be deposited at the registered office of the Company at Room 1215, 12/F., Honour Industrial Centre, 6 Sun Yip Street, Chai Wan, Hong Kong for the attention of the company secretarial department in hard copy form or in electronic form by email to ir@shougangcentury.com.hk;

股東權益

董事會認識到與股東有效溝通的重要性。為了 與股東持續保持溝通,本公司透過股東周年大 會及其他股東大會,有機會與股東直接溝通, 並鼓勵他們積極參與。另外,於二零二零年 度股東周年大會(「二零二零年度股東周年大 會」),董事會主席、薪酬委員會主席、提名委 員會主席及審核委員會主席,均有出席解答任 何股東之提問。而外聘核數師亦出席二零二零 年度股東周年大會回答有關審計工作、編製核 數師報告及其內容、會計政策以及核數師的獨 立性等問題。

成員股東召開股東大會(「股東大會」)之程 序

根據公司條例第566條,如本公司收到佔全體 有權在股東大會上表決的成員╱股東的總表決 權最少5%的公司成員╱股東的要求,要求召 開股東大會,則董事須召開股東大會。

書面請求書:–

• (a) 須述明有待在有關股東大會上處理的事 務的一般性質;
• (b) 可包含可在該股東大會上恰當地動議並 擬在該股東大會上動議的決議的文本;

• (c) 可採用印本形式送交於本公司的註冊辦 事處,地址為香港柴灣新業街6號安力工 業中心12樓1215室,或電子形式透過電 郵ir@shougangcentury.com.hk,註明 公司秘書部門收啟;

• (d) may consist of several documents in like form;

• (e) must be authenticated by the person or persons making it; and
• (f) must be verified with the share registrar of the Company, and upon the share registrar's confirmation that the request is proper and in order, the company secretary of the Company will notify the Board to convene a GM by serving proper notice in accordance with the statutory requirements to all the registered members/Shareholders of the Company. On the contrary, if the request has been verified as not in order, the requesting members/Shareholders will be informed of this outcome and accordingly, a GM will not be convened as requested.

Procedures for members/Shareholders and other stakeholders to send enquires and concerns to the Board

Members/Shareholders and other stakeholders are invited to access the Company's website at http://www.shougangcentury. com.hk for up-to-date information of the Company. They are advised to send enquires and concerns to the Board:–

• (a) by post at the registered office of the Company situated at Room 1215, 12/F., Honour Industrial Centre, 6 Sun Yip Street, Chai Wan, Hong Kong for the attention of the company secretarial department; or
• (b) by email to ir@shougangcentury.com.hk for the attention of the Investor Relations section; or
• (c) by filling out the sign up form on the Company's website if they would like to be kept up-to-date on the latest information of the Company.

The Company will make response to members/Shareholders' questions through their required communication channels or deliver the relevant material directly to their email as soon as the information becomes available online and make necessary arrangement for direction of enquires to the Board, if required.

• (d) 可包含若干份格式相近的文件;
• (e) 必須經提出該要求的人認證;及
• (f) 必須由本公司股份過戶登記處核實,在確 定為適當及符合程序後,本公司公司秘書 將要求董事會召開股東大會,並按照法定 要求給予本公司所有登記成員╱股東充 分的通知期。反之,若有關要求經核實為 不符合程序,請求人將獲知會結果,而本 公司亦不會按要求召開股東大會。

成員股東和其他持份者向董事會提出查詢 與關注的程序

誠邀成員╱股東和其他持份者瀏覽本公司網站 http://www.shougangcentury.com.hk,獲取 有關本公司的最新資料。建議成員╱股東和其 他持份者可將有關對董事會的查詢與關注:–

• (a) 郵寄至本公司註冊辦事處,地址為香港 柴灣新業街6號安力工業中心12樓1215 室,註明公司秘書部門收啟;或
• (b) 電郵至ir@shougangcentury.com.hk並 註明投資者關係部收啟;或
• (c) 可從本公司網站填寫一份索取資料登記 表來收取本公司最新資料。

本公司將會按成員╱股東或其他持份者要求之 溝通渠道回應他們之提問或當有關資訊在網上 發放後,本公司將直接提供相關資料到他們所 登記的電郵及如有需要將轉交有關查詢予董事 會跟進。

The company secretary forwards communications relating to matters within the Board's purview to the independent non-executive Directors, communications relating to matters within a Board committee's area of responsibility to the chair of the appropriate committee, and communications relating to ordinary business matters, such as suggestions, enquires and complaints, to the appropriate Company's executive.

Members/Shareholders and other stakeholders can read the Shareholders' Communication Policy at the Company's website for details and, effectiveness communication. The Shareholders' Communication Policy was further revised on 11 July 2019 to maintain candid and constructive communications with Shareholders and potential investors.

Procedures for members/Shareholders to put forward proposals at annual general meetings ("AGM")

Pursuant to Section 615 of the Companies Ordinance, if a company is required to hold an AGM under Section 610, the members/Shareholders of the company may request to give, to members/Shareholders entitled to receive notice of the AGM, notice of a resolution that may properly be moved and is intended to be moved at that meeting.

The Company must give notice of a resolution if it has received requests that it do so from:–

• (a) the members/Shareholders of the Company representing at least 2.5% of the total voting rights of all the members/Shareholders who have a right to vote on the resolution at the AGM to which the requests relate; or
• (b) at least 50 members/Shareholders who have a right to vote on the resolution at the AGM to which the requests relate.

有關董事會處理的事宜,公司秘書會轉交獨立 非執行董事處理;有關個別董事委員會職權範 圍的事宜,會轉交有關委員會的主席;有關營 運一般事宜,如建議、查詢和投訴,則轉交本 公司適當的行政人員。

成員╱股東和其他持份者可於本公司網站詳細 閱讀股東通訊政策以作有效溝通。為了與股東 和有意投資者保持一個公正及有建設性的溝通 方法,股東通訊政策已於二零一九年七月十一 日進一步修訂。

成員╱股東於股東周年大會(「股東周年大 會」)提呈動議的程序

按公司條例第615條,如公司根據第610條須 舉行股東周年大會,該公司的成員╱股東可要 求該公司向有權收到該股東周年大會的通知的 公司成員╱股東,發出關於可在該大會上恰當 地動議並擬在該大會上動議的決議的通知。

本公司如收到以下成員股東的要求,要求發出 某決議的通知,則須發出該通知:-

• (a) 佔全體有權在該要求所關乎的股東周年 大會上,就該決議表決的成員的總表決權 最少2.5%的公司成員╱股東;或
• (b) 最少50名有權在該要求所關乎的股東周 年大會上就該決議表決的成員╱股東。

The request:–

• (a) must be sent to the registered office of the Company at Room 1215, 12/F., Honour Industrial Centre, 6 Sun Yip Street, Chai Wan, Hong Kong for the attention of the company secretarial department in hard copy form or in electronic form by email to ir@shougangcentury. com.hk;
• (b) must identify the resolution of which notice is to be given;
• (c) must be authenticated by the person or persons making it; and
• (d) must be received by the Company not later than (i) 6 weeks before the AGM to which the requests relate; or (ii) if later, the time at which notice is given of that meeting.

The written request will be verified with the Company's share registrar who will check if the written request is proper and in order, the company secretary will notify the Board for including the resolution in the agenda for AGM.

Pursuant to Section 616 of the Companies Ordinance, the Company that is required under Section 615 to give notice of a resolution must send a copy of it at the Company's own expense to each member/Shareholder of the Company entitled to receive notice of the AGM in the same manner as the notice of the meeting; and at the same time as, or as soon as reasonably practicable after, it gives notice of the meeting.

If the request has been verified as not in order for the said purposes, the members/Shareholders concerned will be advised of this outcome and accordingly, the proposed resolution will not be included in the agenda for the AGM.

書面請求書:–

• (a) 須採用印本形式送達公司註冊辦事處, 地址為香港柴灣新業街6號安力工業中 心12樓1215室,或 電 子 形 式 透 過 電 郵 ir@shougangcentury.com.hk,註明公 司秘書部門收啟;
• (b) 須指出有待發出通知所關乎的決議;
• (c) 須經所有提出該要求的人認證;及
• (d) 須於(i)該要求所關乎的股東周年大會舉 行前的六個星期之前;或(ii)(如在上述時 間之後送抵本公司的話)該股東大會的通 知發出之時送達到本公司。

書面請求書將由公司股份過戶處核實,在確定 為適當及符合程序後,公司秘書將要求董事會 將有關決議案納入股東周年大會的議程。

根據公司條例第616條,本公司須根據第615 條就某決議發出的通知須按發出有關股東周 年大會的通知的同樣方式;及在發出該股東周 年大會的通知的同時,或在發出該大會的通知 後,在合理的切實可行的範圍內盡快,自費將 該決議的通知的文本,送交每名有權收到該股 東周年大會的通知的公司成員╱股東。

若有關要求經核實為不符合程序,有關成員╱ 股東將獲知會結果,而提出的決議案將不獲納 入股東周年大會的議程內。

Shareholders' power to request circulation of statement

Pursuant to Section 580 of the Companies Ordinance, a member/Shareholder of the Company may request the Company to circulate, to members/Shareholders of the Company entitled to receive notice of a general meeting, a statement of not more than 1,000 words with respect to a matter mentioned in a proposed resolution to be dealt with at that meeting or other business to be dealt with at that meeting. The Company is required to circulate the statement if it has received requests to do so from the members/Shareholders representing at least 2.5% of the total voting rights of all the members/Shareholders who have a relevant right to vote or at least 50 members/ Shareholders who have a relevant right to vote.

The aforesaid members/Shareholders' requests (i) may be sent to the Company in hard copy form at the registered office of the Company, at Room 1215, 12/F., Honour Industrial Centre, 6 Sun Yip Street, Chai Wan, Hong Kong or in electronic form by email to ir@shougangcentury.com. hk; (ii) must identify the statement to be circulated; (iii) must be authenticated by the person or persons making it; and (iv) must be received by the Company at least 7 days before the meeting to which it relates.

Pursuant to Section 581 of the Companies Ordinance, the Company that is required under Section 580 to circulate a statement must send a copy of it to each member/ Shareholder of the Company entitled to receive notice of the meeting in the same manner as the notice of the meeting and at the same time as or as soon as reasonably practicable after it gives notice of the meeting. The expenses of the Company in complying with the Section 581 need not be paid by the members/Shareholders who requested the circulation of the statement if the meeting to which the requests relate is an AGM of the Company; and the requests sufficient to require the Company to circulate the statement are received in time to enable the Company to send a copy of the statement at the same time as it give notice of the meeting.

成員股東有權力要求傳閱陳述書

根據公司條例第580條,本公司成員╱股東可 要求本公司向有權收到股東大會的通知的本公 司成員╱股東,傳閱關於有待在該大會上處理 的、某被提出的決議所述的事宜;或其他有待 在該大會上處理的事務,而字數不多於1,000 字的陳述書。本公司如收到佔全體有相關表決 權利的成員╱股東的總表決權最少2.5%的成 員╱股東;或最少50名有相關表決權利的成 員╱股東提出的傳閱陳述書的要求,則須傳閱 該陳述書。

上述成員╱股東要求(i)可採用印本形式送交本 公司註冊辦事處,地址為香港柴灣新業街6號 安力工業中心12樓1215室或以電子形式電郵 至郵箱ir@shougangcentury.com.hk;(ii)須指 出將予傳閱的陳述書;(iii)須經所有提出該要 求的人認證;及(iv)須於該要求所關乎的大會 前最少七日送抵本公司。

根據公司條例第581條,本公司須根據第580 條就傳閱陳述書須按發出有關大會的通知的同 樣方式;及在發出該大會的通知的同時,或在 發出該通知後,在合理的切實可行的範圍內盡 快,將該陳述書的文本,送交每名有權收到該 大會的通知的公司成員╱股東。要求傳閱有關 陳述書的成員╱股東無需支付本公司為遵守第 581條而招致的費用,如有關要求所關乎的大 會,是本公司的股東周年大會;及本公司及時 收到足以令本公司須傳閱該陳述書的要求,使 本公司在發出該大會的通知的同時,能夠送交 該陳述書的文本。

INVESTOR RELATIONS

The Company puts a high regard for the aspect of investor relations and recognises that establishment of investor relations can enhance its transparency, maximise its value and increase investors' understanding of and trust in the Company. Therefore, the management, as requested may meet with Shareholders, potential and institutional investors and research analysts. The management will also provide them with the information of the latest business development of the Group and answer their queries subject to the Continuous Disclosure Obligation Policy. The Continuous Disclosure Obligation Policy is to help and provide guidance to the Directors and employees of the Group to fulfill their obligations under the Listing Rules and the SFO while allowing them to actively inform the market of the Company development as well as how to make judgement as to what inside information is and when disclosure is required. The corresponding presentation materials subject to the Continuous Disclosure Obligation Policy are made available upon request, if appropriate. The procedures for handling and dissemination of inside information has been illustrated under the heading "RISK MANAGEMENT AND INTERNAL CONTROL" above.

In order to further promote a sound communication between the public, the Company fully utilises its website (http://www.shougangcentury.com.hk) as a means to provide the latest and updated information in a timely manner, and from time to time enhances the homepage of the website to reflect its current business development. Also, the company secretarial department of the Company will respond to the telephone enquiries and email or correspondences from Shareholders or investors in respect of various issues subject to the Continuous Disclosure Obligation Policy. Any opinions, views and suggestions of Shareholders will be solicited and brought to the attention of the Board and management, if necessary.

During the year, the 2020 AGM was held on 27 May 2020 to approve ordinary and special businesses of annual general meeting. The resolutions of 2020 AGM were duly passed by way of poll.

During the year ended 31 December 2020, there was no significant change in the Company's constitutional documents.

投資者關係

本公司高度重視於投資者關係,並認為建立投 資者關係能提高公司透明度、增加其價值以及 加深投資者對本公司的暸解及信任。因此,管 理層會因應股東、潛在及機構性投資者和研究 分析員要求而會面,而管理層亦會根據持續披 露責任政策向他們介紹本集團最近期之業務發 展情況及回答他們的提問。持續披露責任政策 是向董事及本集團之僱員提供指引,當他們容 許在市場上提供公司發展和怎樣判斷何謂內幕 消息的時候,有助其根據上市規則及證券及期 貨條例的訂明下履行披露責任。若他們要求時 (如合適)可根據持續披露責任政策規定下提供 相應的推介資料。處理及披露內幕消息程序在 以上標題為「風險管理及內部監控」內說明。

為了與公眾間有更有效的溝通,本公司亦善用 其網站(http://www.shougangcentury.com.hk) 作為一個媒介,適時發放最新近的資訊,以及 不時更新網頁內容來反映有關本公司之業務發 展現況。此外,本公司公司秘書部門會按持續 披露責任政策規定下答覆股東或投資者透過電 話詢問及電子郵件或信函所提出的各類事項。 股東的任何意見、看法及建議將會被收集,然 後提交予董事會及管理人員(如需要)垂注。

於本年度,二零二零年度股東周年大會已於二 零二零年五月二十七日召開,以批准股東周年 大會上的普通及特別事項。二零二零年度股東 周年大會之決議案以投票表決方式正式獲得通 過。

截至二零二零年十二月三十一日止年度,本公 司之憲章文件並無重大變更。

The Directors herein present their report and the audited consolidated financial statements of the Group for the year ended 31 December 2020.

PRINCIPAL ACTIVITIES

The principal activity of the Company is investment holding. Further details of the principal activities of the principal subsidiaries are set out in note 13 to the consolidated financial statements. There were no significant changes in the nature of the Group's principal activities during the year.

RESULTS

The Group's profit for the year ended 31 December 2020 and the state of affairs of the Group at that date are set out in the financial statements on pages 124 to 262.

DIVIDENDS

The Board has recommended the payment of a final dividend of HK1.5 cents per fully paid ordinary share (2019: HK1 cent), with total amount of approximately HK\$28,485,000 for the year ended 31 December 2020 (2019: HK\$19,064,000), payable to Shareholders whose names appear on the register of members of the Company at the close of business on Monday, 21 June 2021. The final dividend is subject to the Shareholders' approval at the forthcoming annual general meeting.

Subject to Shareholders' approval of the proposed final dividend at the Company's annual general meeting to be held on Monday, 7 June 2021, the final dividend is expected to be paid on or about Friday, 9 July 2021. In order to qualify for the proposed final dividend, all transfer forms accompanied by the relevant share certificates must be lodged with the Company's share registrar, Tricor Tengis Limited at Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong, not later than 4:30 p.m. (Hong Kong time) on Monday, 21 June 2021 for registration.

董事會謹此提呈董事會報告書及本集團於截至 二零二零年十二月三十一日止年度之經審核綜 合財務報告。

主要業務

本公司之主要業務為投資控股。旗下主要附屬 公司之主要業務的進一步詳情載列於綜合財務 報告附註13。本集團主要業務的性質於本年度 內並無重大改變。

業績

本集團截至二零二零年十二月三十一日止年度 之溢利及於該日之財務狀況載列於第124頁至 262頁之財務報告內。

股息

董事會建議派發截至二零二零年十二月三十一 日止年度之末期股息每股繳足股本的普通 股港幣1.5仙(二零一九年:港幣1仙),總額 約為港幣28,485,000元(二零一九年:港幣 19,064,000元 ),分派予於二零二一年六月 二十一日(星期一)辦公時間結束時名列本公司 股東名冊之股東。末期股息需在即將舉行的股 東周年大會上經股東批核。

待建議末期股息於二零二一年六月七日(星期 一)舉行之本公司股東周年大會上經股東批核 後,末期股息預計將於二零二一年七月九日 (星期五)或左右派付。為符合資格獲派建議末 期股息,所有股份過戶文件連同相關股票必須 於二零二一年六月二十一日(星期一)下午四時 三十分(香港時間)前送達本公司之股份過戶登 記處卓佳登捷時有限公司,地址為香港皇后大 道東183號合和中心54樓,辦理登記手續。

CLOSURE OF REGISTER OF MEMBERS

The register of members of the Company will be closed from Monday, 31 May 2021 to Monday, 7 June 2021, both days inclusive, during which period no transfer of Shares will be registered. In order to be entitled to attend and vote at the forthcoming annual general meeting which is scheduled to be held on Monday, 7 June 2021, all transfer documents accompanied by the relevant share certificates must be lodged with the Company's share registrar, Tricor Tengis Limited at Level 54, Hopewell Centre, 183 Queen's Road East, Hong Kong for registration not later than 4:30 p.m. (Hong Kong time) on Friday, 28 May 2021.

BUSINESS REVIEW

Business model and strategy

Our mission is to be one of the top tier steel cord and wire products manufacturers in the PRC capable of consistently purveying premium quality steel cords and wire products; and the evolution into a diversified metal product manufacturer benefiting from a successful "Eastern" brand recognition in the PRC and worldwide markets. Our ultimate goal is to maintain long term profitability, strive for the greatest return for Shareholders, deliver sustainable growth in our stakeholders' value under a prudent and manageable capital structure and contribute to the economic and social development of the communities in which we operate.

The Board is responsible for the development of business models and setting of strategies, planning and development of the Group. The strategies adopted by the Board will be executed by the managing Director who will motivate the staff to achieve the designated business goals and financial targets under risk tolerance levels prescribed by the Board. The progress of implementation of the strategies and business goals will be reviewed and adjusted to respond to the constantly changing market environment. Corrective and follow-up actions are made regularly at the Board and/ or other management meetings throughout the years.

暫停辦理股份過戶

本公司將由二零二一年五月三十一日(星期一) 至二零二一年六月七日(星期一)(包括首尾兩 日)暫停辦理股份過戶登記手續,期間將不會 登記任何股份之轉讓。為確保有權出席即將按 計劃於二零二一年六月七日(星期一)舉行之股 東周年大會並於會上投票,所有過戶文件連同 有關股票最遲必須於二零二一年五月二十八日 (星期五)下午四時三十分(香港時間)前送達本 公司之股份過戶登記處卓佳登捷時有限公司, 地址為香港皇后大道東183號合和中心54樓, 辦理登記手續。

業務審視 業務模式及策略

我們的使命是要成為中國其中一間能夠持續提 供優質鋼簾線及鋼絲產品的頂級製造商,以及 晉身為一個多元化的金屬產品製造商從而發展 一個在中國及全球市場具知名度和得到認可的 成功的「東方」品牌。我們的最終目標是在審慎 和可管理資本結構下保持長期盈利能力,為股 東爭取最大的回報,為持份者的價值提供可持 續性增長,並為業務所在地區的經濟和社會發 展作出貢獻。

董事會負責制定本集團之業務模式及訂立本 集團之策略、規劃和發展。董事會所採取的策 略將由董事總經理執行,並按董事會規定之風 險承受能力水平以推動僱員達致其特定的業務 目的及財務目標。執行策略和業務目標的進展 情況將會檢討及調整以應對日益複雜的外部環 境,並進一步討論跟進行動。實施糾正及跟進 行動會在年內定期在董事會及╱或其他管理層 會議進行。

BUSINESS REVIEW (continued)

Review of operations

The Group recorded net profit of HK\$148,254,000 for the year in compared with net profit of HK\$108,344,000 from previous year. Further details in respect of the fair review of the Group's businesses, please refer to the sections "CHAIRMAN'S STATEMENT" and "MANAGEMENT DISCUSSION AND ANALYSIS" of this annual report.

PRINCIPAL RISKS AND UNCERTAINTIES

The Group's businesses, results of operations and financial position may be affected by risks and uncertainties relating to the Group's businesses. These risks and uncertainties could result in the Group's businesses, results of operations and financial position to defer materially from expected or historical results. The risks and uncertainties set out below are known to the Group during the year under review:

Risks and uncertainties relating to the Group's business operations

1. As the majority of sales of steel cords of the Group are domestic, the business and prospect of steel cord segment is therefore highly dependent on the economic performance of the PRC, in particular, the performance of automotive and transportation industries and those that involve high volume of road transportation for commercial and industrial purposes, such as property development and import/export. Therefore, any downturn in the economy of the PRC may cause lower demand for steel cords and hence may have material adverse impact to the operations of steel cord segment. Despite the majority of the Group's customers are radial tyre manufacturers located in the PRC, however their customers, the vehicle manufacturers that are located in the United States are affected by the Sino-US trade debacle that has weighed in sentiment.

業務審視(續) 經營回顧

於本年度本集團錄得淨溢利金額為港幣 148,254,000元,相比去年淨溢利金額為港幣 108,344,000元。就本集團業務的中肯審視的 詳情,請參閱本年報「董事長報告書」及「管理 層論述及分析」章節。

主要風險和不明朗因素

本集團的業務、經營業績及財務狀況可能受到 與本集團業務相關風險和不明朗因素所影響。 這些風險和不明朗因素可能導致對本集團的業 務、經營業績及財務狀況與預期或過往業績存 在重大差異。於本年度回顧本集團已知的風險 和不明朗因素載於下文:

關於本集團經營業務的風險和不明朗因素

1. 由於本集團大部分鋼簾線都是國內銷 售,因此鋼簾線分部的業務和前景高度依 賴於中國的經濟表現,特別是汽車及運輸 行業的表現和那些涉及高容量道路運輸 的商業和工業用途,如房地產開發和入 口╱出口。因此,若中國經濟衰退可能會 導致鋼簾線需求減少,及因此可能對鋼簾 線分部的業務造成重大不利影響。儘管本 集團的大部分客戶均為位於中國的子午 線輪胎製造商,但其客戶(位於美國的汽 車製造商)受到中美貿易戰的影響,情緒 受壓。

PRINCIPAL RISKS AND UNCERTAINTIES

(continued)

Risks and uncertainties relating to the Group's business operations (continued)

• 1. The average selling price of steel cords increased during the year under review, attributable to the relief in over capacity situation of steel cord industry together with the introduction of new products, effective product mix and effort in expansion of exports. The selling price of steel cords is highly dependent on the supply and demand situation in the PRC as well as the price of its major material – steel wire rod; therefore, any change in these two factors will have material impact to the steel cord segment.
• 1. The revenue from sales to top five customers of the Group accounted for 46% of total revenue of the Group for the year under review. Any change to the business operations, financial conditions or purchasing patterns of these customers may have adverse impact to the revenue of the Group.

The measures to manage the impact on these potential risks and uncertainties are described in the heading "BUSINESS REVIEW" of the section of the "MANAGEMENT DISCUSSION AND ANALYSIS" of this annual report.

Risks and uncertainties relating to the Group's results and financial position

• 1. The following factors may have negative impact on the revenue and net results of the Group:
• a. Change in the mix of revenue contributions, such as the income of steel cord segment from sales of steel cord for truck tyres, off the road truck tyres and passenger car tyres;
• b. Unfavorable economic development in the PRC and worldwide markets that may have negative impact on our steel cord segment;

主要風險和不明朗因素(續)

關於本集團經營業務的風險和不明朗因 素(續)

• 1. 在本年度回顧,鋼簾線的平均售價上升, 是由於鋼簾線行業產能過剩得到舒緩,新 產品的引進,有效的產品組合及努力提高 出口的擴充所致。鋼簾線的售價高度依賴 於中國的供求情況和其主要原材料的價 格-鋼絲盤條。因此,這兩個因素的任何 變化將對鋼簾線分部有重大影響。
• 1. 在本年度回顧,本集團銷售予首五大客戶 之營業額約佔本年度本集團總營業額之 46%。該等客戶業務營運、財務狀況或採 購模式的任何變化可能對本集團的營業 額有負面影響。

管理該等潛在的風險和不明朗因素帶來的影響 之措施已在本年報「管理層論述及分析」一節 中「業務回顧」標題中描述。

關於本集團之業績及財務狀況的風險和不 明朗因素

• 1. 下列因素可能對本集團的營業額和淨利 潤有負面影響:
• a. 營業額來源組合的變化,例如鋼簾 線分部的收入來自銷售用於載重輪 胎、工程輪胎和轎車輪胎之鋼簾線;
• b. 中國和全球市場的不理想經濟發展 可能會對我們鋼簾線分部造成負面 影響;

PRINCIPAL RISKS AND UNCERTAINTIES

(continued)

Risks and uncertainties relating to the Group's results and financial position (continued)

• c. Increased market and price competition for steel cord segment; and
• d. Failure to reduce production and operating costs, in particular, certain unit fixed production costs of steel cord segment can be lowered by increase in sales and production volume.
• 1. For the year ended 31 December 2020, the majority of the revenue of the Group was denominated in RMB, while there were some borrowings of the Group dominated in HKD. Hence, any movement of the exchange rate of RMB will affect to the results of operations of the Group. Furthermore, the results and financial position of the Group are denominated in RMB but presented in HKD for reporting purposes, therefore, the movement of the exchange rate of RMB will have impact to the financial position of the Group when translating the Group's results and financial position into HKD.
• 1. The Group is required to conduct an impairment review on its property, plant and equipment in accordance with the Hong Kong Financial Reporting Standards. Any future impairment loss to be recognised or reversed depends on various factors including the general economic and financial conditions, market competitions, prevailing product selling price and market interest rates. Such impairment loss to be recognised or reversed will have material impact to the results of the Group, however, the impairment loss is a non-cash item and therefore will not affect the future business operations and financial conditions of the Group.

主要風險和不明朗因素(續)

關於本集團之業績及財務狀況的風險和不 明朗因素(續)

• c. 鋼簾線分部之市場和價格競爭增 加;及
• d. 未能降低生產和營運成本,特別是 鋼簾線分部的某些單位固定生產成 本可以通過增加銷售和生產量來降 低。
• 1. 截止二零二零年十二月三十一日止年 度,本集團大部分的收入來源以人民幣為 單位,同時間本集團有一些貸款以港幣為 單位。所以,人民幣匯率的變動將影響本 集團的經營業績。此外,本集團的業績及 財務狀況均以人民幣為單位,但報告則以 港幣呈列,因此,人民幣匯率變動將在本 集團之業績及財務狀況轉換成港元時對 本集團的財務狀況產生影響。
• 1. 本集團需要根據香港財務報告準則對物 業、廠房及設備進行減值審閱。任何被確 認或撥回的未來減值損失取決於多種因 素,包括一般的經濟和金融狀況、市場競 爭、現行產品售價和市場利率。該被確認 或撥回的減值損失將對本集團的業績有 重大的影響。但是,減值損失為一項非現 金項目,因此將不會影響到本集團的未來 經營業務和財務狀況。

PRINCIPAL RISKS AND UNCERTAINTIES

(continued)

Risks and uncertainties relating to the Group's results and financial position (continued)

1. The Group utilised a certain extent of bank borrowings to finance its operations. As at 31 December 2020, all bank borrowings are due within one year, therefore the Group will be exposed to the liquidity risks of inability of repaying these borrowings when due. The Group is expected to service the debt repayments due in 2021 by utilising cash generated from its operations, refinancing from banks and other sources, with an objective to gradually reduce the amount of interest bearing borrowings of the Group. However, the Group's ability to generate sufficient cash to service its outstanding debts and obligations will depend on the operating performance of its various business segments in the future, which will be affected by factors such as the prevailing economic and liquidity conditions, the demand of its products and prevailing selling prices. Whether the Group can refinance its borrowings also depends on a number of factors, including the operating performance and financial conditions of the Group, the prevailing economic conditions, the prevailing credit policy of respective lender and the liquidity of the financial markets. If the Group is unable to service any of its borrowings due in 2021, this may result in a default and will have significant adverse impact to the financial position of the Group as the Group will be requested to repay full or part of its outstanding borrowings on an accelerated basis. The management of the Company is seeking for various banks refinancing to mitigate these potential risks.

主要風險和不明朗因素(續)

關於本集團之業績及財務狀況的風險和不 明朗因素(續)

1. 本集團運用一定程度的銀行貸款為其營 運提供資金。於二零二零年十二月三十一 日,所有銀行貸款均於一年內到期,因此 本集團將面臨當該等貸款到期時無法償 還的流動性風險。本集團預期將運用來自 其營運產生的現金和銀行融資及其他來 源以償還於二零二一年到期貸款,以逐漸 減少本集團的計息貸款總額。然而,本集 團產生足夠現金來償還其未償還貸款的 能力和義務將取決於其將來的各業務分 部的營運表現,而其將受到各種因素的影 響,例如:現行的經濟和流動性狀況、產 品的需求和現行售價。而本集團能否再融 資貸款亦取決於許多因素,包括本集團的 營運表現和財務狀況、現行的經濟條件、 各貸款人的現行信貸政策和金融市場的 流動性。如果本集團無法償還於二零二一 年到期的貸款,可能會導致違約及將對本 集團的財務狀況有顯著的負面影響,因本 集團將被要求加快償還全部或部分的未 償還的貸款。本公司管理層正在尋求各銀 行再融資來減輕這些潛在的風險。

FINANCIAL KEY PERFORMANCE INDICATORS

The financial key performance indicators of the Group for the years ended 31 December 2020 and 2019 are summarised as follows:

財務關鍵表現指標

本集團於截至二零二零年和二零一九年十二月 三十一日止年度的財務關鍵表現指標綜合如 下:

			2020 二零二零年	2019 二零一九年	Change 變動
1.	Current ratio (times)	流動比率(倍)	1.15	1.28	N/A不適用
2.	Liquidity ratio (times)	流動資金比率(倍)	1.00	1.08	N/A不適用
3.	Gearing ratio (%)	負債比率(%)	29.4	50.8	–21.4pp百分點
4.	Average turnover period on	應收賬款平均周轉期(天)
	trade receivables (days)		98	96	+2
5.	Percentage of past due trade	逾期應收賬款百分比(%)
	receivables (%)		24.6	23.7	+0.9pp百分點
6.	Average turnover period on	存貨平均周轉期(天)
	inventories (days)		60	64	–4
7.	Average turnover period on	應付賬款平均周轉期(天)
	trade payables (days)		115	110	+5

Current ratio

Current ratio (calculated as current assets divided by current liabilities) of the Group was 1.15 times at 31 December 2020, lower than 1.28 times at 31 December 2019.

Liquidity ratio

Liquidity ratio (calculated as current assets less inventories divided by current liabilities) of the Group was 1 time at 31 December 2020, slightly lower than 1.08 times at 31 December 2019.

Gearing ratio

Gearing ratio (calculated as total interest bearing borrowings less bank balances and cash (included pledged bank deposits) divided by total equity) of the Group decreased markedly from 50.8% at 31 December 2019 to 29.4% at 31 December 2020.

Average turnover period of trade receivables

Average turnover period on trade receivables (calculated as average trade receivables for the year (exclusive of valueadded tax in respect of sales in the PRC) divided by gross revenue times 365 days) was 98 days for the year, longer by 2 days as compared to 96 days for the previous year.

流動比率

本集團於二零二零年十二月三十一日的流動比 率(以流動資產除以流動負債計算)為1.15倍,相 對於二零一九年十二月三十一日的1.28倍為低。

流動資金比率

本集團於二零二零年十二月三十一日的流動 資金比率(以流動資產減存貨除以流動負債計 算)為1倍,較於二零一九年十二月三十一日的 1.08倍略低。

負債比率

本集團於二零二零年十二月三十一日之負債比 率(以計息貸款總額減銀行結存及現金(包括抵 押銀行存款)除以權益總額計算)較二零一九年 十二月三十一日報50.8%顯著下降至29.4%。

應收賬款平均周轉期

本集團於本年度的應收賬款平均周轉期(以本 年度平均應收賬款除以總營業額(不包括於中 國銷售的增值稅)乘以365天計算)為98天,比 於去年度為96天增加2天。

FINANCIAL KEY PERFORMANCE INDICATORS (continued)

Percentage of past due trade receivables

The percentage of past due trade receivables (calculated as the amount of past due trade receivables divided by total amount of trade receivables) was 24.6% at 31 December 2020, increased by 0.9 percentage point as compared to 23.7% at 31 December 2019.

Average turnover period on inventories

Average turnover period on inventories (calculated as average amount of inventories for the year divided by cost of sales times 365 days) was 60 days for the year, shorter by 4 days as compared to 64 days for the previous year.

Average turnover period on trade payables

Average turnover period on trade payables (calculated as average trade payables for the year divided by cost of sales (exclusive of value-added tax in respect of cost of sales in the PRC) times 365 days) was 115 days for the year, which was 5 days longer as compared to 110 days for the previous year.

Further details regarding the above and other financial information, please refer to the section "MANAGEMENT DISCUSSION AND ANALYSIS" of this annual report. Key performance indicators mean factors by reference to which the development, performance or position of the business of the Group can be measured effectively which we can use to monitor progress against our strategies while figures reporting under accounting standards could not serve such purpose.

FUTURE DEVELOPMENT OF THE COMPANY'S BUSINESS

In the view that uncertainty is one of the main challenges facing by the Chinese economy, the performance of the steel cord industry might be affected unless a strong cash flow is maintained as well as cost saving and risk mitigation measures are implemented in order. Details of future development of the Company's business, please refer to the sections "CHAIRMAN'S STATEMENT" and "MANAGEMENT DISCUSSION AND ANALYSIS" of this annual report.

財務關鍵表現指標(續)

逾期應收賬款百分比

於二零二零年十二月三十一日的逾期應收賬款 的百分比(以逾期應收賬款除以應收賬款總額 計算)為24.6%,與二零一九年十二月三十一 日的23.7%相比上升0.9個百分點。

存貨平均周轉期

本年度的存貨平均周轉期(以本年度的平均 存貨金額除以銷售成本乘以365天計算)為60 天,比去年的64天減少4天。

應付賬款平均周轉期

本年度的應付賬款平均周轉期(以本年度的平 均應付賬款除以銷售成本(不包括於中國銷售 成本的增值稅)乘以365天計算)為115天,較 於去年度為110天多5天。

關於上述及其他財務資料的進一步詳情載列於 本年報的「管理層論述及分析」的章節內。關鍵 表現指標指可籍參照有效地衡量本集團業務的 發展、表現或狀況的因素而用以監察我們實施 策略的進度,而按會計準則制定的數據則未能 達到此目的。

本公司業務未來發展

由於不確定性是中國經濟面臨的主要挑戰之 一,鋼簾線業務的表現可能會受到影響,除非 保持強勁的現金流及適當地實施成本節約和風 險緩解措施。就本公司業務未來發展的詳情, 請參閱本年報「董事長報告書」及「管理層論述 及分析」章節。

ENVIRONMENTAL POLICIES AND PERFORMANCE

The Group is committed to the long-term sustainability of the environment and community in which it engages by controlling and minimising the generation of wastes, waste gases emissions and sewage discharges, and at the same time, complies with the applicable environmental laws, rules and regulations on the prevention and control of wastage, waste gases emissions and sewage discharges in Hong Kong and PRC during the production process.

In order to attach the importance of environmental protection, the Group has formally adopted an Environmental Policy (the "Policy") since 2017, which has already been implemented all along as part of the Internal Control Manual. The underlying principle of the Policy is to reduce, reuse and recycle resources used in the production lines and offices so as to mitigate wastes and use energy and resources effectively. Various measures have been implemented within the Group and are monitored from time to time, for example, measures on effective energy conservation to reduce the use of energy, water and other resources; measures on managing the reduction of waste and greenhouse gas emissions, etc. had been taken and complied with since 2015. Detailed discussion on the environmental policies and performance of the Group will be set out in the 2020 ESG Report (to be published).

In addition to the above measures, the Group has also provided further trainings to Directors and employees and has participated in activities organised by various organisations to emphasise the importance of environmental protection and to promote occupational health and safety in offices and production lines. For instance, to encourage our employees to participate the "Hong Kong Green Building Week 2020" organised by Construction Industry Council and The Hong Kong Green Building Council Limited, to strengthen employees' awareness of environmental protection and raise their awareness of green building issues and sustainable lifestyles. To promote the concept of occupational health and safety in offices and environmental protection, we also participated in the "Green Office Awards Labelling Scheme" and "Eco-Healthy Workplace Awards Labelling Scheme" organised by World Green Organisation since 2017. These measures and trainings taken and provided by the Group in supporting the Policy are based on the needs and actual circumstances of the Group and will be reviewed by the management annually.

環境政策及表現

本集團承諾為業務所在地的環境和社區作出長 期可持續發展,控制及減少廢物的產生、廢氣 排出和廢水排放,並同時遵守香港及中國於生 產過程中防止及控制廢物的產生、廢氣排出和 廢水排出的適用環保法律規則及規定。

為突顯環境保護的重要性,本集團已由二零 一七年起正式採納了「環境政策」(「該政策」) 以作為內部監控指引的一部分,並已一直貫徹 實施。該政策的基本原則是減少、重用及回收 生產線和辦公室的資源,以減少廢物和有效地 使用能源及資源。本集團已實施多項措施並不 時予以監督,例如:有效的節能措施以減少能 源、水及其他資源的使用和實行減廢管理及減 少溫室氣體排放等等的措施已由二零一五年起 實行及遵守。有關本集團環境政策及表現的詳 細討論將載列於即將發佈之二零二零年度環 境、社會及管治報告內。

除了上述措施,本集團亦為董事和僱員安排了 進一步培訓及參與由不同組織舉辦之活動,使 他們認識到保護環境的重要性,並於辦公室和 生產線推廣職業安全健康。例如鼓勵各位同事 參與由建造業議會及香港綠色建築議會合辦的 「香港綠色建築週2020」,加強僱員對環境保護 的意識及提高其對綠色建築議題和可持續生活 方式的認識。並自二零一七年起參與由世界綠 色組織舉辦的「綠色辦公室獎勵計劃」和「健康 工作間獎勵計劃」,以推廣工作地點的職業安 全健康及環境保護的概念。這些為支持該政策 而實施的措施和安排的培訓乃根據本集團的需 求和實際情況而決定的,並將會每年由管理層 進行檢討。

COMPLIANCE WITH LAWS AND REGULATIONS

The Group is committed to comply with the laws and regulations in which it operates its businesses. During the year under review, there was no material breach of or noncompliance with the laws and regulations applicable to the Group. Apart from complying with Hong Kong laws such as the Companies Ordinance, Listing Rules, SFO, Employment Ordinance and Anti-Money Laundering and Counter-Terrorist Financing Ordinance, we have also complied with laws of the PRC, including the Company Law of the PRC, Labour Law of the PRC, Labour Contract Law of the PRC, Enterprise Annuities Fund Measures, relevant laws, rules and regulations in relation to child and forced labour including the Provisions on the Prohibition of Using Child Labour and the Law of the PRC on the Protection of Minors, as well as other environmental laws, relevant rules, ordinances and regulations on the prevention and control of wastage, waste gases and sewage emission. These laws, ordinances and regulations include but not limited to the Environmental Protection Law of the PRC, the Environmental Protection Tax Law of the PRC, the Prevention and Control of Atmospheric Pollution of the PRC, the Water Pollution Prevention and Control Law of the PRC, the Waste Disposal Ordinance, the Product Eco-responsibility Ordinance, Environmental Quality Standard for Surface Water, Wastewater Quality Standards for Discharge to Municipal Sewers, Measures for Hazardous Waste Operation Administration and Solid Wastes of Prevention and Control Law of the PRC etc.. These environmental laws will have impact on the Group's operation since if we do not dispose all wastages, discharges and waste gases properly, we might have to bear heavy environmental protection tax and so increase the cost of disposal of wastages.

遵守法律及規定

本集團承諾遵守其經營業務的法律及規定。於 本年度回顧,本集團並無重大違反或不遵守適 用的法律及規定。除了遵守香港法律,如《公 司條例》、《上市規則》、《證券及期貨條例》、《僱 傭條例》及《打擊洗錢及恐怖分子資金籌集條 例》,我們亦遵守中國的法律,包括《中國公司 法》、《中國勞動法》、《中國勞動合同法》、《企業 年金辦法》、有關童工和強制勞工的法律及法 規,包括《禁止使用童工規定》和《中國未成年 人保護法》,以及其他與廢物、廢氣和廢水排放 有關的防治及控制的法例及規定和其他環保法 律及相關規則。該等法律、法例及規定包括但 不限於:《中國環境保護法》、《中國環境保護稅 法》、《中國大氣污染防治法》、《中國水污染防治 法》、《廢物處置條例》、《產品環保責任條例》、 《地表水環境品質標準》、《污水排入城鎮下水道 水質標準》、《危險廢物經營授權管理辦法》、《中 國固體廢物污染環境防治法》等。若本集團不 妥善處理所有廢物排放及廢氣排出,將須承擔 沉重的環境保護稅並增加處置廢物的成本,該 等環保法律將對本集團的營運造成影響。

COMPLIANCE WITH LAWS AND REGULATIONS (continued)

Furthermore, the Group has started to attach more importance to gender equality and the protection of women's interests, as well as on the compliance with the related laws of Hong Kong such as the Sex Discrimination Ordinance, which the underlying principle is also enshrined in the Basic Law, and related laws of PRC such as the Law on the Protection of Women's Rights and Interests and Special Rules on the Labour Protection of Female Employees. To acquire further knowledge on this topic, we have nominated a representative to participate in activities related to gender equality and gender mainstreaming organised by the Women's Commission (an organisation which actively engages in activities in relation to women empowerment and advancement) for the purpose of understanding the current role and status of women in business sector and different parties' concerns on gender mainstreaming. In the light of the need to address these issues and to put our knowledge into practice, the "Policy on Prevention on Sexual Harassment at Workplace" has been formulated as a way of the Company to show respect to our employees, especially female employees.

The Group also notes the importance on human resource management in which the representative of the Company has learnt from the Seminar that good human resource management on effective communication when handling verbal violence at work and such message has been conveyed. In addition, the new measureable objectives of 2021 has been adopted by the Board to create an inclusive and supportive working environment, including providing equal employment opportunities and support for persons with disabilities. Further discussion on human resource management will be also contained in the 2020 ESG Report (to be published).

遵守法律及規定(續)

此外,本集團已開始越來越重視性別平等和保 護女性的權益,以及遵守相關香港法律,例如 《性別歧視條例》(其基本原則也列載於《基本 法》中)及相關中國法律,例如《婦女權益保障 法》和《女職工勞動保護特別規定》。為進一步 了解這一議題,本公司已派代表參加了由婦女 事務委員會(一個積極參與婦女賦權和晉升的 組織)舉辦的一些有關性別平等和性別主流化 的活動,以了解女性目前在商界的角色和地位 及各方對性別主流化的關注。而為對上述事宜 作出回應及將這些學到的知識付諸實行,本集 團已制訂了《防止職場性騷擾政策》以表示本集 團對僱員(特別是女性僱員)的尊重。

本集團亦注意到人力資源管理的重要性,而本 公司代表亦從研討會上了解並已傳達良好人力 資源管理對有效地去處理工作間語言衝突時 的重要性的訊息。另外,本公司董事會亦已通 過採納二零二一年的可計量目標,其目標為創 造一個共融互助的工作環境,包括為殘疾人士 提供平等就業機會和支持。進一步人力資源管 理之討論將載列於即將發佈之二零二零年度環 境、社會及管治報告內。

COMPLIANCE WITH LAWS AND REGULATIONS (continued)

To ensure compliance with these requirements of laws, rules and regulations, the Company has implemented an effective internal control and approval procedures, and to obtain high level oversight of the operation of various business units. Any changes in the applicable laws, rules and regulations are brought to the attention of relevant employees and/or business units of the Group immediately. Certain discussion regarding the Group's compliance with relevant laws and regulations which have a significant impact on the Group is also contained in the "CORPORATE GOVERNANCE REPORT" section on pages 41 to 81 of this annual report and the 2020 ESG Report (to be published).

RELATIONSHIPS WITH KEY STAKEHOLDERS

The Group's success also depends on the support from key stakeholders which comprise employees, customers, suppliers, Shareholders, government and regulators, as well as banks and financial institutions (creditors).

Employees

Employees are regarded as the most important and valuable assets of the Group. Most of the management have been serving the Group for a long period of time. However, young talents are also provided with opportunities to work in the Group. The Group does not only offers competitive salaries and benefits, but also provides training programmes or courses for the Mainland employees at all levels from different departments, as well as Directors and employees of the Company in order to further enhance their management skills, expertise and knowledge, and at the same time, make continual contribution to the Group. The COVID-19 pandemic remains severe in 2020, different activities used to be organised by various business units of the Group in the past such as celebration of Chinese New Year and Christmas, celebration of the anniversary of operation of steel cord plant and annual dinner, have been significantly reduced due to the COVID-19 pandemic. In 2020, TESC and the Shanghai office respectively organised team-building activities such as a summer cool off event and employee domestic travel for general employees together with the management to participate in, so as to strengthen their partnership and communication.

遵守法律及規定(續)

為確保遵守該等法律、規則及規定的要求,本 公司已實施了有效的內部監控和審批程序,並 高度監督各業務單位的運作。任何有關適用的 法律、規則及規定的修改也將即時呈請相關僱 員及╱或本集團的業務單位垂注。本集團遵守 對有重大影響的相關法律及規定的若干討論 亦載列於本年報第41頁至81頁的「企業管治報 告」章節及即將發佈之二零二零年度環境、社 會及管治報告內。

與主要持份者的關係

本集團的成功亦依賴主要持份者,包括僱員、 客戶、供應商、股東、政府及監管機構,以及銀 行及金融機構(債權人)的支持。

僱員

僱員被視為本集團最重要及具價值的資產。 大部分管理層一直為本集團服務了很長時間。 然而,本集團亦提供工作機會給予年輕人才。 本集團不但提供具競爭力的薪酬及福利,亦分 別向國內各部門所有級別僱員及董事及本公司 僱員提供培訓計劃或課程,用以提升他們的管 理技巧、專業技能和知識,並同時向本集團作 出持續貢獻。在二零二零年新冠肺炎疫情仍然 嚴峻,過往本集團不同業務單位組織的慶祝活 動,例如春節聯歡晚會、聖誕派對、鋼簾線廠 房的周年慶祝活動及周年晚宴,均因新冠肺炎 疫情關係大幅減少。在二零二零年,滕州東方 及上海公司辦公室分別舉辦了夏季送清涼活動 及員工國內旅行等團建活動予一般僱員連同管 理層一起參與,從而加強彼此的合作關係及溝 通。

RELATIONSHIPS WITH KEY STAKEHOLDERS (continued)

Customers

The major customers of steel cord segment are the radial tyres manufacturers. Most of them have been customers for more than 5 years and in return of their loyalty, we provided them with good quality products and after-sale services.

Suppliers

The major suppliers of steel cord segment are the steel wire rod suppliers. We have co-operated with most of the suppliers for more than 5 years and have maintained good relationship with them through regular face-to-face meetings and visits in order to achieve cost-effectiveness and obtain long-term commercial benefits.

Shareholders

The ultimate operational goal of the Group is to maximise our Shareholders' returns. The major Shareholders of the Group are Shougang Group and its controlled corporations, Bekaert and Li Ka Shing Foundation and minority Shareholders. It is grateful to have Shareholders who are being supportive to the Group for a long period of time in particular the times when market conditions are adverse and challenging.

To set standard rules and guidelines to be followed by the Board in deciding whether to recommend dividend out of the profits to reward the Shareholders, the dividend policy of the Company has been adopted by the Board on 18 December 2018, Details of which is contained in the "CORPORATE GOVERNANCE REPORT" section on pages 41 to 81 of this annual report.

與主要持份者的關係(續)

客戶

鋼簾線分部的主要客戶為子午線輪胎製造商。 我們大部分的客戶已是超過五年,為了回報他 們的忠誠,我們向他們提供優質的產品和售後 服務。

供應商

鋼簾線分部的主要供應商為鋼絲盤條原材料 供應商。我們與大部分供應商已合作了超過五 年,並透過定期會面和拜訪與他們保持良好關 係,以達致成本效益及促進長遠商業利益。

股東

本集團的最終營運目標是為股東爭取最大的回 報。本集團的主要股東為首鋼集團與其受控法 團、Bekaert、李嘉誠基金會及小股東。我們非 常感激長期支持本集團的股東,特別是在市場 情況不利和具有挑戰性的時候。

為了讓董事會決定是否建議從利潤中分配股息 來回報股東而制定可跟從的標準規則和指導方 針,本公司之股息政策已於二零一八年十二月 十八日獲董事會採納,詳情載於本年報第41頁 至81頁的「企業管治報告」章節內。

RELATIONSHIPS WITH KEY STAKEHOLDERS (continued)

Government and Regulators

Decisions made by the government and regulators can significantly affect our Group's operations. It is important, therefore, for us to maintain good relationships with local officials to anticipate legal or regulatory changes or community developments that may affect our business. In view of the need to maintain good relationships, we have arranged occasional visits and face-to-face meetings whenever necessary.

Banks and Financial Institutions (Creditors)

Banks and financial institutions are lenders of our Group who help us to finance our business, asset purchases and supply purchases. As a trustworthy borrower, the Group always try our best to meet every payment deadlines responsibly and consistently, and at the same time, we strive to improve our financial performance so that we have a greater chance to receive quality financing in the future. Through regular meetings and visits, we have maintained stable relationships with them.

For further details regarding the above, please refer to the sections "MANAGEMENT DISCUSSION AND ANALYSIS" and "CORPORATE GOVERNANCE REPORT" in this annual report and the section "STAKEHOLDERS' ENGAGEMENT AND MATERIALITY ASSESSMENT" in the 2020 ESG Report (to be published).

與主要持份者的關係(續)

政府及監管機構

政府和監管機構做出的決定可能會對本集團的 營運產生重大影響。因此,我們必須與當地官 員保持良好關係,以預計可能會影響我們業務 的法律或監管變更或社區發展。因需要保持良 好的關係,我們必要時會安排不定期的拜訪和 會面。

銀行及金融機構(債權人)

作為本集團的貸款人,銀行和金融機構提供資 金以幫助我們業務的發展、購買資產和供應。 而作為值得信賴的借款人,本集團一直努力以 負責任的態度和一貫的方式於每個付款期限前 還款,同時,我們努力改善財務表現以增加在 未來獲得優質融資的可能性。我們亦會透過定 期會議和拜訪與他們保持穩定的關係。

有關上述之進一步資料,請參閱本年報之「管 理層論述及分析」和「企業管治報告」章節及即 將發佈之二零二零年度環境、社會及管治報告 之「持份者參與及重要性評估」章節。

SUMMARY OF FINANCIAL INFORMATION

A summary of the published results and of the assets and liabilities of the Group for the last five financial years, as extracted from the audited consolidated financial statements of the Group, is set out below:

財務資料摘要

以下為本集團於過去五個財政年度之已公告業 績、資產及負債摘要,該等資料乃摘錄自本集 團之經審核綜合財務報告:

		2020	2019	2018	2017	2016
		二零二零年	二零一九年	二零一八年	二零一七年	二零一六年
		HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000
		港幣千元	港幣千元	港幣千元	港幣千元	港幣千元
PROFIT/(LOSS)	本年度溢利╱(虧損)
FOR THE YEAR		148,254	108,344	(8,681)	(68,518)	10,103
TOTAL ASSETS	資產總額	3,371,907	3,143,918	3,414,467	3,444,076	3,037,042
TOTAL LIABILITIES	負債總額	(1,726,336)	(1,728,846)	(2,075,317)	(2,052,548)	(1,715,077)
TOTAL EQUITY	權益總額	1,645,571	1,415,072	1,339,150	1,391,528	1,321,965

INVESTMENT PROPERTIES AND PROPERTY, PLANT AND EQUIPMENT

Details of movements in the investment properties and property, plant and equipment of the Group during the year are set out in notes 16 and 17, respectively, to the consolidated financial statements.

Particulars of the Group's investment properties as at 31 December 2020 are summarised on page 263 of this annual report.

SHARE CAPITAL AND SHARE OPTIONS

Details of movements in the share capital of the Company are set out in note 33 to the consolidated financial statements. No share options were granted, exercised, lapsed or cancelled under the 2002 Scheme and the 2012 Scheme during the year. Details of share options of the 2002 Scheme and the 2012 Scheme are set out under the heading "EQUITY-LINKED AGREEMENT" hereunder and in note 36 to the consolidated financial statements.

投資物業及物業、廠房及設備

本集團之投資物業及物業、廠房及設備於本年 度之變動詳情分別載列於綜合財務報告附註 16及17。

本集團於二零二零年十二月三十一日之投資物 業摘要載列於本年報第263頁。

股本及購股權

本公司股本之變動詳情載列於綜合財務報告附 註33。於本年度內,二零零二計劃及二零一二 計劃項下並沒有購股權授出、行使、失效或註 銷。二零零二計劃及二零一二計劃的購股權之 詳情載列於以下「股票掛鈎協議」標題內及綜 合財務報告附註36。

RESERVES

Details of movements in the reserves of the Group and the Company during the year are set out in the consolidated statement of changes in equity on page 129 of this annual report and in note 38 to the consolidated financial statements.

DONATIONS

During the year, the Group made certain amount of charitable donations.

DIRECTORS

The Directors during the year and up to the date of this annual report were:

Su Fanrong (Chairman and Managing Director) Ye Qian (Executive Director) Li Jinping (Executive Director) Adam Touhig (Non-executive Director) (appointed on 15 January 2021) Yip Kin Man, Raymond (Independent Non-executive Director) Lam Yiu Kin (Independent Non-executive Director) Feng Yaoling (Independent Non-executive Director) Tang Cornor Kwok Kau (Deputy Managing Director) (resigned on 30 November 2020) Liao Jun (Non-executive Director) (resigned on 15 January 2021)

The Directors are subject to retirement by rotation and reelection at the annual general meeting of the Company in accordance with articles 101 and 102 of the Articles. Messrs. Su Fanrong and Ye Qian will retire from office by rotation and, being eligible, offer themselves for re-election at the forthcoming annual general meeting.

In accordance with article 106 of the Articles, Mr. Adam Touhig will retire from office and, being eligible, offer himself for re-election at the forthcoming annual general meeting.

儲備

本集團及本公司之儲備於本年度之變動詳情載 列於本年報第129頁之綜合權益變動表及綜合 財務報告附註38。

捐款

於本年度內,本集團已作出若干慈善捐款。

董事

於本年度內及截至本年報日期之董事如下:

蘇凡荣(董事長兼董事總經理) 葉芊(執行董事) 李金平(執行董事) Adam Touhig(非執行董事) (於二零二一年一月十五日獲委任) 葉健民(獨立非執行董事) 林耀堅(獨立非執行董事) 馮耀嶺(獨立非執行董事) 鄧國求(董事副總經理) (於二零二零年十一月三十日辭任) 廖駿(非執行董事) (於二零二一年一月十五日辭任)

根據章程細則第101及102條之規定,董事須 於本公司股東周年大會上輪值卸任,惟可膺選 連任。蘇凡荣先生及葉芊先生將於即將舉行之 股東周年大會上輪值告退,他們均符合資格並 願意膺選連任。

根據章程細則第106條之規定,Adam Touhig 先生將於即將舉行之股東周年大會上卸任,彼 符合資格並願意膺選連任。

DIRECTORS OF SUBSIDIARIES

Messrs. Su Fanrong and Tang Cornor Kwok KauNote serve as directors of all subsidiaries of the Company during the year and up to the date of this report. Other than the above directors, the persons who serve/had served as directors of subsidiaries of the Company during the year and/or up to the date of this report include Messrs. Cheung Ngai, Dai Jihong, Li Baoren, Li Meng, Wan Chuante, Wang Liang, Yu Zhigao and Zhao Xuewu.

Note: Mr. Tang Cornor Kwok Kau resigned as the director of all subsidiaries of the Company with effect from 31 January 2021.

The list of subsidiaries of the Company is set out in the note 13 "SUBSIDIARIES" to the consolidated financial statements and below.

• Rise Boom International Limited
• Clear Vision Investments Limited
• Efficient Investments Limited
• Endless Inc.
• Messiah Investments Limited
• Online Investments Limited

DIRECTORS' SERVICE CONTRACTS

No Director proposed for re-election at the forthcoming annual general meeting has a service contract with the Company which is not determinable by the Company within one year without payment of compensation (other than statutory compensation).

附屬公司董事

於本年度內及截至本年報日期,蘇凡荣先生及 鄧國求先生附註 擔任本公司之所有附屬公司董 事。除上述董事外,張毅先生、戴繼洪先生、李 寶仁先生、李蒙先生、萬川特先生、王量先生、 俞志高先生及趙學武先生於本年度內及╱或截 至本年報日期擔任╱曾擔任本公司之附屬公司 董事。

附註:鄧國求先生已辭任本公司所有附屬公司董事,自 二零二一年一月三十一日起生效。

本公司附屬公司的名單載於綜合財務報告附註 13「附屬公司」及列載如下。

• ‧ 盛興昌國際有限公司
• ‧ Clear Vision Investments Limited
• ‧ Efficient Investments Limited
• ‧ Endless Inc.
• ‧ Messiah Investments Limited
• ‧ Online Investments Limited

董事之服務合約

在即將舉行之股東周年大會上候選連任之董事 概無與本公司訂立不可由本公司於一年內終止 而毋須支付賠償(法定賠償除外)之服務合約。

DIRECTORS' RIGHTS TO ACQUIRE SHARES AND DEBENTURES

Apart from information disclosed under the heading "DIRECTORS' INTERESTS AND SHORT POSITIONS IN SHARES, DEBENTURES OR UNDERLYING SHARES UNDER THE SFO" and in note 36 to the consolidated financial statements, at no time during the year was the Company or any of its subsidiaries a party to any arrangement to enable the Directors or their respective spouse or children under 18 years of age to acquire benefits by means of the acquisition of Shares in or debentures of the Company or any other body corporate.

INDEPENDENT NON-EXECUTIVE DIRECTORS

The Company has received, from each of the independent non-executive Directors, an annual confirmation of his independence pursuant to Rule 3.13 of the Listing Rules. The Company considers all of the independent nonexecutive Directors are independent.

Mr. Yip Kin Man, Raymond has served the Board for more than nine years, he has not engaged in any executive management of the Group, and Mr. Yip's solicitors firm and his respective family members have never provided any service to the Group. He believes his familiarity and extensive experience with the Company's business may place him in a better position to contribute independent views to the Company and continue to demonstrate a firm commitment to his role. Taking into consideration of his independent scope of works and his high integrity when performing duties as an independent non-executive Director over the past years, there is no evidence that length of tenure is having an adverse impact on his independence.

EQUITY-LINKED AGREEMENT

Particulars of the Company's share option scheme during the year are set out in note 36 to the consolidated financial statements.

DISTRIBUTABLE RESERVES

As at 31 December 2020, the Company's reserves available for distribution, as calculated in accordance with the provisions of Sections 291, 297 and 299 of the Companies Ordinance, amounted to HK\$31,171,000.

董事購買股份及債權證之權利

除於以下「根據證券及期貨條例董事於股份、 債權證或相關股份之權益及淡倉」標題內及綜 合財務報告附註36所披露的資料以外,於本年 度內任何時間,本公司或其任何附屬公司概無 參與訂立任何安排,致使董事或彼等各自之配 偶或十八歲以下之子女可藉購買本公司或其他 法定團體之股份或債權證而獲得利益。

獨立非執行董事

按照上市規則第3.13條規定,本公司已收到每 名獨立非執行董事確認其獨立性的年度確認 書。本公司認為所有獨立非執行董事確屬有其 獨立性。

葉健民先生服務董事會至今已超過九年,彼並 無參與本集團任何行政管理工作,及葉先生的 律師樓及其直系親屬從未向本集團提供任何服 務。彼對本公司業務之熟悉及資深經驗有助其 向本公司提供較佳之獨立意見和對彼董事職務 持續表現堅定的承擔。考慮到彼過往年度工作 之獨立範疇及彼履行獨立非執行董事職責的高 度正直,並無任何證據顯示服務年資對彼獨立 性產生負面影響。

股票掛鈎協議

本公司之購股權計劃載列於綜合財務報告附註 36。

可供分派儲備

於二零二零年十二月三十一日,按公司條例第 291、297及299條之規定計算,本公司可供分 派之儲備為港幣31,171,000元。

DIRECTORS' INTERESTS AND SHORT POSITIONS IN SHARES, DEBENTURES OR UNDERLYING SHARES UNDER THE SFO

As at 31 December 2020, none of the Directors and chief executives of the Company had any interests and short positions in the Shares, debentures or underlying Shares or any of its associated corporations (within the meaning of Part XV of the SFO) which had to be notified to the Company and the Stock Exchange pursuant to Divisions 7 and 8 of Part XV of the SFO (including interests and short positions which he was taken or deemed to have under such provisions of the SFO) or which were required pursuant to Section 352 of the SFO, to be entered in the register referred therein or which were required to be disclosed herein pursuant to the Model Code.

DIRECTORS' INTERESTS IN TRANSACTIONS, ARRANGEMENT OR CONTRACTS

No Director or his entity connected had a material interest, directly or indirectly, in a transaction, arrangement or contract or a proposed transaction, arrangement or contract that is significant in relation to the Company's business to which the Company or any of its subsidiaries was a party during the year.

MANAGEMENT CONTRACTS

No contracts, other than employment contracts, concerning the management and administration of the whole or any substantial part of any business of the Company were entered into or subsisted during the year.

根據證券及期貨條例董事於股份、債權 證或相關股份之權益及淡倉

於二零二零年十二月三十一日,概無董事及本 公司最高行政人員於本公司或其任何相聯法團 (按證券及期貨條例第XV部之涵義)之股份、債 權證或相關股份中,擁有須根據證券及期貨條 例第XV部第7及8分部知會本公司及聯交所之 任何權益及淡倉(包括根據證券及期貨條例規 定被視作或當作擁有之權益及淡倉);或須根 據證券及期貨條例第352條登記於根據該條例 存置或根據標準守則須於本文披露之任何權益 及淡倉。

董事在交易、安排或合約中之權益

於本年度內各董事及其關連的實體於本公司或 其任何附屬公司所訂立的任何對本集團業務可 屬重大之交易、安排或合約中,不論直接或間 接,概無擁有實益權益。

管理合約

除僱員合約外,本年度內概無訂立或存有與本 公司全部或任何重大部分業務的管理及行政有 關的合約。

DIRECTORS' INTERESTS IN COMPETING BUSINESSES

During the year, save as disclosed below, none of the Directors is considered to have interest in the businesses which are considered to compete or likely to compete, either directly or indirectly, with businesses of the Group pursuant to Rule 8.10 of the Listing Rules:

董事於競爭業務之權益

於本年度內,除下文所披露外,根據上市規則 第8.10條,概無董事被視為與本集團業務構成 競爭或可能構成競爭(不論直接或間接)的業務 中擁有權益:

Name of Director	Name of entity whose businesses are considered to compete or likely to compete with the businesses of the Group 其業務被視為與本集團業務	Description of businesses of the entity which are considered to compete or likely to compete with the businesses of the Group	Nature of Director's interest in the entity
	構成競爭或可能構成競爭	被視為與本集團業務構成競爭或
董事姓名	之實體名稱	可能構成競爭之實體業務簡介	董事於該實體之權益性質
Liao Jun (Note 1)	Bekaert	Manufacturing and sale of steel wire and/or cord products	Executive Vice President North Asia in Bekaert group, Member of the Bekaert Group Executive and Divisional CEO Specialty Businesses in Bekaert group
廖駿(附註1)	Bekaert	製造及銷售鋼絲及╱或鋼簾線製品	Bekaert集團北亞區執行副總裁、 Bekaert集團執行之成員及Bekaert 集團專門業務分區首席執行官
Yip Kin Man, Raymond (Note 2)	BeijingWest Industries	Manufacturing and sale of automotive parts and components and the trading of automotive parts and components	Independent non-executive director
葉健民(附註2)	京西重工	製造及銷售汽車零部件及元件, 以及買賣汽車零部件及元件	獨立非執行董事

DIRECTORS' INTERESTS IN COMPETING

BUSINESSES (continued) Notes:

• 1. Pursuant to a subscription agreement entered into by the Company and Bekaert in September 2006 and further agreement between Bekaert and the Company in February 2015, Mr. Liao Jun was nominated by Bekaert group as a non-executive Director and was appointed on 25 February 2015, and he resigned on 15 January 2021.
• 1. Mr. Yip Kin Man, Raymond was appointed as an independent non-executive director of BeijingWest Industries on 27 January 2014 and does not participate in any decision making on daily operation of BeijingWest Industries.

In general, directors should owe their fiduciary duties towards the company as a whole and as such the Board believes that all Board members shall act in the best interest of the Company and its Shareholders when they discharge their duties and responsibilities as Directors.

董事於競爭業務之權益(續)

附註:

• 1. 根據本公司與Bekaert於二零零六年九月訂立之 認購協議及Bekaert與本公司於二零一五年二月 訂立之進一步協議,廖駿先生獲Bekaert集團委派 為非執行董事,並於二零一五年二月二十五日獲 委任,彼於二零二一年一月十五日辭任。
• 1. 葉健民先生於二零一四年一月二十七日獲委任為 京西重工獨立非執行董事,並沒有參與京西重工 的日常運作之任何決策。

一般而言,董事對公司整體均須抱有誠信責 任,故此董事會相信所有董事會成員履行其董 事職責及責任時將以本公司及其股東之最佳利 益為前提行事。

SHAREHOLDERS' INTERESTS AND SHORT POSITIONS OR UNDERLYING SHARES OF THE COMPANY UNDER THE SFO

As at 31 December 2020, so far as was known to the Directors, the following parties had an interest or long position or short position in the Shares or underlying Shares which would fall to be disclosed to the Company under the provisions of Divisions 2 and 3 of Part XV of the SFO or which were required pursuant to Section 336 of the SFO, to be entered in the register referred therein:

根據證券及期貨條例股東於本公司之 權益及淡倉或相關股份

於二零二零年十二月三十一日,就董事所知, 下列人士於本公司股份或相關股份中擁有須根 據證券及期貨條例第XV部第2及3分部規定予 以披露之權益或好倉或淡倉,或擁有須根據證 券及期貨條例第336條登記於根據該條例存置 之權益或好倉或淡倉:

Long position in Shares or underlying Shares

於股份或相關股份之好倉

	Total number of	Approximate% of
Name of Shareholders	Shares/underlying Shares held 所持股份╱	the total number of issued Shares 約佔已發行股份	Capacity in which interests are held
股東姓名	相關股份總數目	總數目之百分比	持有權益之身份
Richson	148,537,939	7.82	Beneficial owner 實益擁有人
Fair Union	813,639,179	42.85	Beneficial owner and interests of controlled corporations Note (1) 實益擁有人及受控法團之權益附註(1)
Casula	402,395,304	21.19	Beneficial owner 實益擁有人
Shougang HK	906,719,179	47.75	Beneficial owner and interests of controlled corporations Note (2)
首控香港			實益擁有人及受控法團之權益附註(2)
Jingxi Holdings 京西控股	454,545,454	23.94	Beneficial owner Note (3) 實益擁有人附註(3)
Shougang Fund 首鋼基金	454,545,454	23.94	Interests of controlled corporations Note (4) 受控法團之權益附註(4)
Shougang Group 首鋼集團	1,361,264,633	71.68	Interests of controlled corporations Note (5) 受控法團之權益附註(5)
Bekaert Combustion	250,000,000	13.16	Beneficial owner Note (6) 實益擁有人附註(6)
Bekaert	250,000,000	13.16	Interests of controlled corporations Note (7) 受控法團之權益附註(7)
Li Ka Shing Foundation 李嘉誠基金會	100,000,000	5.27	Beneficial owner Note (8) 實益擁有人附註(8)

SHAREHOLDERS' INTERESTS AND SHORT POSITIONS OR UNDERLYING SHARES OF THE COMPANY UNDER THE SFO (continued)

Long position in Shares or underlying Shares (continued) Notes:

• (1) Fair Union is beneficially interested in 262,705,936 Shares. By virtue of the SFO, Fair Union also deemed to be interested in the 148,537,939 Shares held by Richson and the 402,395,304 Shares held by Casula as Richson and Casula are its wholly owned subsidiaries.
• (2) Shougang HK is beneficially interested in 6,456,000 Shares and by virtue of the SFO, it is deemed to be interested in the 74,254,000 Shares held by Prime Success Investments Limited ("Prime Success") as Prime Success is its wholly owned subsidiary and is deemed to be interested in the 12,370,000 Shares held by Lyre Terrace Management Limited ("Lyre Terrace"), a subsidiary of Shougang Grand as Shougang HK is the holding company of Shougang Grand. By virtue of the SFO, it is also deemed to be interested in the 262,705,936 Shares held by Fair Union, the 148,537,939 Shares held by Richson and the 402,395,304 Shares held by Casula. Fair Union is a wholly owned subsidiary of Shougang HK and Richson and Casula are wholly owned subsidiaries of Fair Union.
• (3) The shares held by Jingxi Holdings represent 454,545,454 underlying Shares to be allotted and issued upon the exercise of Conversion Rights attaching to the Convertible Bonds (i.e. the 4% unsecured fixed coupon convertible bonds in the aggregate principal amount of up to HK\$150,000,000 due 2022 (extendable to 2024) to be issued by the Company to Jingxi Holdings pursuant to the Subscription Agreement).
• (4) As mentioned under Note (3) above, by virtue of the SFO, Shougang Fund is deemed to be interested in 454,545,454 underlying Shares held by Jingxi Holdings, which is a wholly owned subsidiary of Shougang Fund.

根據證券及期貨條例股東於本公司之 權益及淡倉或相關股份(續)

於股份或相關股份之好倉(續)

附註:

• (1) Fair Union實益擁有262,705,936股股份,以及由 於Richson及Casula均為Fair Union之全資附屬 公司,故根據證券及期貨條例,Fair Union亦被 視為於Richson所擁有之148,537,939股股份及 於Casula所擁有之402,395,304股股份中擁有權 益。
• (2) 首控香港實益擁有6,456,000股股份及由於 Prime Success Investments Limited(「Prime Success」)為首控香港之全資附屬公司,故根 據證券及期貨條例,首控香港被視為於Prime Success所持有之74,254,000股股份中擁有權 益,及被視為於琴台管理有限公司(為首長四方 之附屬公司,而首控香港則為首長四方之控股 公司)(「琴台」)所持有之12,370,000股股份中擁 有權益。由於Richson及Casula均為Fair Union 之全資附屬公司,Fair Union是首控香港之全資 附屬公司,故根據證券及期貨條例,首控香港亦 被視為於Fair Union所擁有之262,705,936股股 份、於Richson所擁有之148,537,939股股份及於 Casula所擁有之402,395,304股股份中擁有權益。
• (3) 京西控股持有之股份指可換股債券(即本公司 根據認購協議將發行予京西控股的本金總額最 多為港幣150,000,000元於二零二二年到期(可 延長至二零二四年)的4%無抵押固定票息可換 股債券)所附換股權獲行使時將予配發及發行之 454,545,454股股份。
• (4) 承上附註(3),由於京西控股乃首鋼基金之全資附 屬公司,故根據證券及期貨條例,首鋼基金被視 為於京西控股所持有之454,545,454股股份中擁 有權益。

SHAREHOLDERS' INTERESTS AND SHORT POSITIONS OR UNDERLYING SHARES OF THE COMPANY UNDER THE SFO (continued)

Long position in Shares or underlying Shares (continued)

Notes: (continued)

• (5) Shougang Group is the ultimate holding company of Shougang HK, it is deemed to be interested in the 6,456,000 Shares held by Shougang HK and by virtue of the SFO, it is deemed to be interested in the 74,254,000 Shares held by Prime Success as Prime Success is Shougang HK's wholly owned subsidiary and Shougang Group is deemed to be interested in the 12,370,000 Shares held by Lyre Terrace, a subsidiary of Shougang Grand as Shougang Group is the ultimate holding company of Shougang Grand. By virtue of the SFO, Shougang Group is also deemed to be interested in the 262,705,936 Shares held by Fair Union, the 148,537,939 Shares held by Richson and the 402,395,304 Shares held by Casula. Fair Union is a wholly owned subsidiary of Shougang HK and Richson and Casula are wholly owned subsidiaries of Fair Union. As mentioned under Notes (3) and (4) above, and by virtue of the SFO, Shougang Group is also deemed to be interested in the 454,545,454 underlying Shares held by Jingxi Holdings, a wholly owned subsidiary of Shougang Fund, which is a wholly owned subsidiary of Shougang Group.
• (6) Bekaert Combustion is beneficially interested in 250,000,000 Shares.
• (7) By virtue of the SFO, Bekaert is deemed to be interested in 250,000,000 Shares held by Bekaert Combustion, which is a wholly owned subsidiary of Bekaert.
• (8) Li Ka Shing Foundation is beneficially interested in 100,000,000 Shares. By virtue of the terms of the constituent documents of Li Ka Shing Foundation, each of Mr. Li Ka-shing and Mr. Li Tzar Kuoi, Victor may be regarded as having the ability to exercise or control the exercise of one-third or more of the voting power at general meetings of Li Ka Shing Foundation.

根據證券及期貨條例股東於本公司之 權益及淡倉或相關股份(續)

於股份或相關股份之好倉(續)

附註:(續)

• (5) 首鋼集團為首控香港之最終控股公司,故被視 為於首控香港所擁有之6,456,000股股份實益擁 有股股份中擁有權益。而Prime Success為首 控香港之全資附屬公司,故根據證券及期貨條 例,首鋼集團被視為於Prime Success所持有之 74,254,000股股份中擁有權益,及被視為於琴台 (為首長四方之附屬公司,而首鋼集團則為首長 四方之最終控股公司)所持有之12,370,000股股 份中擁有權益。由於Richson及Casula均為Fair Union之全資附屬公司,Fair Union是首控香港之 全資附屬公司,故根據證券及期貨條例,首鋼集 團亦被視為於Fair Union所擁有之262,705,936 股股份、於Richson所擁有之148,537,939股股份 及於Casula所擁有之402,395,304股股份中擁有 權益。承上附註(3)及(4),由於京西控股乃首鋼基 金之全資附屬公司,而首鋼基金乃首鋼集團之全 資附屬公司,故根據證券及期貨條例,首鋼集團 被視為於京西控股所持有之454,545,454股股份 中擁有權益。
• (6) Bekaert Combustion實益擁有250,000,000股股 份。
• (7) 由於Bekaert Combustion為Bekaert之全資附屬 公司,故根據證券及期貨條例,Bekaert被視為於 Bekaert Combustion所持有之250,000,000股股 份中擁有權益。
• (8) 李嘉誠基金會實益擁有100,000,000股股份之權 益。根據李嘉誠基金會之組織章程文件條款,李 嘉誠先生及李澤鉅先生各自可能被視為可於李嘉 誠基金會成員大會上行使或控制行使三分之一或 以上之投票權。

SUBSTANTIAL SHAREHOLDERS' INTERESTS IN CONTRACTS

Details of the contract of significance between the Group, Shougang Group, Shougang Fund, Shougang HK and its subsidiaries are set out under the heading "RELATED PARTY TRANSACTIONS" hereunder and/or in note 37(i)(a) to the consolidated financial statements.

Details of the contracts of significance between the Group and Bekaert are set out in note 37(ii)(a) to the consolidated financial statements.

CORPORATE GOVERNANCE

The Company is committed to practicing and achieving a high standard of corporate governance and the Board has approved and adopted the SCCHL Corporate Governance Code on terms no less exacting than those set out in the provisions of the Code. Further information on the Company's Corporate Governance Code is set out in the "CORPORATE GOVERNANCE REPORT" on pages 41 to 81 of this annual report.

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES

Set out below are particulars of repurchases by the Company of its own ordinary shares made on the Stock Exchange during the year:

主要股東在合約中之權益

本集團與首鋼集團、首鋼基金、首控香港及其 附屬公司訂立之重大合約之詳情載列於以下 「關連人士交易」標題內及╱或綜合財務報告 附註37(i)(a)。

本集團與Bekaert訂立之重大合約之詳情載列 於綜合財務報告附註37(ii)(a)。

企業管治

本公司致力履行及達至一個高標準的企業管治 水平,董事會已批准及採納首長寶佳企業管治 守則,有關條文不比守則所列出的條文寬鬆。 本公司之企業管治守則之進一步資料載列於本 年報第41頁至81頁之「企業管治報告」內。

購買、出售或贖回上市證券

於本年度內本公司於聯交所購回其普通股的詳 細資料列示如下:

			Consideration
			per Share	Aggregate
		Number of	每股股份價格 Highest	Lowest	consideration paid
		Shares	最高	最低	已付總代價
Month of repurchase in 2020 於二零二零年之回購月份		repurchased 已購回股份數目	HK\$ 港幣	HK\$ 港幣	HK\$ 港幣
January	一月	2,044,000	0.218	0.196	426,918
February	二月	3,486,000	0.240	0.214	793,364
March	三月	600,000	0.207	0.202	122,668
April	四月	5,224,000	0.215	0.199	1,091,632
May	五月	1,340,000	0.210	0.205	279,214
June	六月	1,900,000	0.205	0.199	381,740
July	七月	1,520,000	0.214	0.205	318,512
August	八月	920,000	0.208	0.197	184,922
September	九月	1,776,000	0.205	0.198	356,426
October	十月	1,190,000	0.203	0.197	236,124
December	十二月	86,000	0.202	0.199	17,120
Total	總數	20,086,000			4,208,640

PURCHASE, SALE OR REDEMPTION OF LISTED SECURITIES (continued)

All Shares repurchased in 2020 were cancelled up to the date of this annual report.

The above repurchases were made for the purpose of achieving an increase in the consolidated net asset value and/or earnings per Share.

Saved as disclosed above, neither the Company nor any of its subsidiaries has purchased, sold or redeemed any listed securities of the Company during the year.

PERMITTED INDEMNITY PROVISION

The Company has arranged appropriate Directors' and officers' liability insurance coverage in respect of legal actions brought for committed or alleged wrongful acts against the Directors and officers of the Group throughout the year, but exclude any criminal, dishonest or fraudulent acts or omission.

The Articles provide that every Director, secretary or other officer or auditor of the Company shall be indemnified out of the assets of the Company against any liability, loss or expenditure incurred by him in defending any proceedings, whether civil or criminal, which relate to anything done or omitted to be done by him as Director, secretary, officer or auditor of the Company and in which judgment is given in his favour or in which he is acquitted, or incurred in connection with any application in which relief is granted to him by the court from liability in respect of any such act or omission or from liability to pay any amount in respect of shares acquired by a nominee of the Company.

The permitted indemnity provision is in force for the benefit of the Directors as required by Section 470 of the Companies Ordinance when the report of the directors prepared by the Directors is approved in accordance with Section 391(1)(a) of the Companies Ordinance.

購買、出售或贖回上市證券(續)

直至本年報日期,所有在二零二零年購回股份 經已註銷。

上述回購的目的為增加每股綜合資產淨值及╱ 或每股盈利。

除上文披露外,於本年度內本公司或其任何附 屬公司並無購買、出售或贖回本公司的任何上 市證券。

獲准許彌償條文

於年內,本公司已就本集團之董事及行政人員 因實施或涉嫌過失行為(但不包括任何刑事、 不誠實或欺詐行為或疏忽)而面對的法律行 動,安排適當的董事及行政人員責任保險。

章程細則規定,每名董事、秘書或本公司其他 行政人員或核數師就作為董事、秘書或本公司 其他行政人員或核數師於任何民事或刑事法律 程序中關於與其作為董事、秘書或本公司其他 行政人員或核數師作出或遺漏作出之行為,而 彼在判決中就有關作出或遺漏作出之行為之責 任或就本公司代名人收購股份而應付款項之責 任獲勝訴、獲裁定無罪或獲法院免除法律責任 時所產生之任何責任、損失或開支,可從本公 司資產中獲得彌償。

基於董事利益的獲准許彌償條文根據公司條例 第470條的規定於董事編製之董事會報告書根 據公司條例第391(1)(a)條獲通過時生效。

RELATED PARTY TRANSACTIONS

The Group entered into certain transactions with parties regarded as "Related Parties" under applicable accounting standard. These transactions mainly relate to contracts entered into by the Group in the ordinary and usual course of business which were negotiated on normal commercial terms and on an arm's length basis and the Company has complied with the applicable requirements under the Listing Rules. Further details are set out in note 37 to the consolidated financial statements. The Group has carried out a connected transaction, details are illustrated below.

Connected Transaction – Issue of Convertible Bonds under Specific Mandate

On 18 December 2018, the Company entered into the Subscription Agreement with Jingxi Holdings (a connected person of the Company) whereby the Company conditionally agreed to issue and Jingxi Holdings conditionally agreed to subscribe for the Convertible Bonds in the principal amount of up to HK\$150,000,000. The Convertible Bonds carry the Conversion Rights to convert into the Conversion Shares at the Conversion Price of HK\$0.33 per Conversion Shares (subject to adjustment), and the Convertible Bonds will carry an interest rate of 4.0% per annum and will mature on the third anniversary of the issue date of the Convertible Bonds. Assuming the Conversion Rights are exercised in full at the Conversion Price, 454,545,454 new Shares, being the Conversion Shares, may be allotted and issued to Jingxi Holdings subject to the Conversion Restrictions, representing approximately 23.64% of the total number of issued Shares as at 31 December 2019 and approximately 19.12% of the total number of issued Shares as enlarged by the allotment and issue of the Conversion Shares, assuming that there is no other change to the total number of Shares.

The net proceeds from the Subscription Agreement of HK\$149,000,000, are expected to be used as follows: (i) as to approximately HK\$37,300,000 for repaying interest-bearing borrowings with higher interest rate of the Group; (excluding borrowings provided by Shougang HK and its related party(ies)), (ii) as to approximately HK\$110,000,000 for funding the capital investment for the TESC Phase II Project subject to the construction cost and time needed to supplement the production need for both TESC and JESC; and (iii) as to approximately HK\$1,700,000 being the remaining proceeds for supplementing general working capital.

關連人士交易

本集團與根據適用會計準則被視為「關連人 士」之人士訂立若干交易。此等交易主要涉及 本集團於一般及日常業務過程中按一般商務條 款經公平原則磋商而訂立之合約及本公司已遵 守上市規則的適用規定。進一步詳情載列於綜 合財務報告附註37。本集團已進行一項關連交 易,詳細展述如下。

關連交易-根據特定授權發行可換股債券

於二零一八年十二月十八日,本公司與京西控 股(本公司關連人士)訂立認購協議,據此,本 公司有條件同意發行而京西控股有條件同意認 購本金額最高為港幣150,000,000元的可換股 債券。可換股債券附帶轉換權,可按換股價每 股換股股份港幣0.33元(可予調整)轉換為換股 股份,及可換股債券將按年利率4.0%計息, 且將於可換股債券發行日期後第三個週年當日 到期。假設轉換權按換股價獲悉數行使,並假 設股份總數概無其他變動,454,545,454股新 股份(即換股股份)可在轉換限制規限下分配 及發行予京西控股,相當於二零一九年十二月 三十一日已發行股份總數約23.64%以及經分 配及發行換股股份擴大後的已發行股份總數約 19.12%。

認購協議所得款項淨額港幣149,000,000元 預期用作下列用途:(i)約港幣37,300,000元 用於償還本集團利率較高的計息貸款(首控香 港及其關連人士提供的貸款除外);(ii)約港幣 110,000,000元用於為滕州東方二期項目的資 本投資提供資金,惟受限於建設成本及補充滕 州東方及嘉興東方之生產需求所需時間;及(iii) 所得款項餘額約港幣1,700,000元用於補充一 般營運資金。

RELATED PARTY TRANSACTIONS (continued) Connected Transaction – Issue of Convertible Bonds under Specific Mandate (continued)

The reason for entering into the Subscription Agreement as this is an appropriate means of raising additional capital of the Company considering the recent market conditions which represent an opportunity for the Company to obtain the funding at reasonable cost for construction of the brass wire production lines, enhance its working capital and strengthen its capital base and financial position. Also, it will not have an immediate dilution effect on the shareholding of the existing Shareholders and the interest payable under the Convertible Bonds is more stable and predictable than bank borrowing. The Subscription by Jingxi Holdings reflects the confidence and commitment of Shougang Fund towards the long-term business development of the Group which is beneficial to the long-term business development of the Group.

Jingxi Holdings is a wholly-owned subsidiary of Shougang Fund, which is in turn a wholly-owned subsidiary of Shougang Group. Shougang Group is a controlling Shareholder interested in an aggregate of 906,719,179 Shares, representing approximately 47.15% of the total number of issued Shares before the date of the Subscription Agreement. Therefore, Jingxi Holdings is a connected person of the Company. Accordingly, the Subscription constitutes a connected transaction of the Company and is subject to the reporting, announcement and independent Shareholders' approval requirements under Chapter 14A of the Listing Rules.

On 11 February 2019, all conditions precedent under the Subscription Agreement have been fulfilled and the completion of the Subscription Agreement took place and the Convertible Bonds in the principal amount of HK\$150,000,000 were issued to Jingxi Holdings.

Details of the Subscription Agreement were also disclosed in the announcements of the Company dated 18 December 2018 and 11 February 2019, and in the circular of the Company dated 11 January 2019. The Subscription Agreement and the transactions contemplated thereunder were approved, confirmed and ratified by the independent Shareholders on 1 February 2019.

關連人士交易(續) 關連交易-根據特定授權發行可換股債券 (續)

訂立認購協議之原因是由於近期市場狀況為本 公司獲得資金以合理成本建設黃絲生產線、增 加其營運資金及鞏固其資本基礎及財務狀況提 供機遇,透過認購協議為本公司籌集額外資金 為合理的方法。此外,其將不會對現有股東的 股權產生即時攤薄影響及可換股債券項下的應 付利息較銀行貸款更為穩定及可預測。京西控 股作出的認購事項反映了首鋼基金對本集團長 期業務發展的信心及承諾,這將有利於本集團 的長期業務發展。

京西控股為首鋼基金的全資附屬公司,而首鋼 基金為首鋼集團的全資附屬公司。首鋼集團 為一名於認購協議日期前合共906,719,179股 股份(佔已發行股份總數約47.15%)中擁有權 益的控股股東,故京西控股為本公司的關連人 士。因此,認購事項構成本公司的關連交易, 並須遵守上市規則第14A章有關申報、公告及 獨立股東批准的規定。

於二零一九年二月十一日,認購協議項下之所 有先決條件均已獲達成,認購協議完成而本金 額為港幣150,000,000元的可換股債券已發行 予京西控股。

有關該認購協議之詳情可參考本公司日期為 二零一八年十二月十八日及二零一九年二月 十一日的公告,及為二零一九年一月十一日的 通函。認購協議其項下擬進行的交易已於二零 一九年二月一日獲獨立股東批准、確認及追 認。

RELATED PARTY TRANSACTIONS (continued) Connected Transaction – Issue of Convertible

Bonds under Specific Mandate (continued)

As at 31 December 2020, the Group had fully utilised the aforesaid proceeds according to the proposed usage as set out in the circular of the Company dated 11 January 2019.

EMOLUMENT POLICY

The emolument policy regarding the employees of the Group is based on their merit, qualifications and competence as well as the prevailing market condition of the industry. Remuneration packages, which include an element of discretionary bonuses, are generally reviewed annually. The emoluments of the Directors are decided by the remuneration committee, having regard to individual performance, the Company's performance and profitability, remuneration benchmark in the industry and prevailing market condition.

In addition, the Company has adopted a share option scheme as incentive/reward to Directors and eligible participants/qualifying grantees, details of the scheme are set out in note 36 to the consolidated financial statements.

SUFFICIENCY OF PUBLIC FLOAT

Based on information that is publicly available to the Company and within the knowledge of the Directors, the Company has maintained sufficient public float as required under the Listing Rules during the year and as at the latest practicable date prior to the issue of the annual report.

MAJOR CUSTOMERS AND SUPPLIERS

For the year under review, the revenue from sales to the Group's five largest customers accounted for approximately 46.0% (2019: 52.0%) of total revenue of the Group and the revenue from sales to the largest customer included therein amounted to approximately 13.0% (2019: 15.6%) of total revenue of the Group.

Purchases from the Group's five largest suppliers accounted for approximately 46.6% (2019: 50.8%) of total purchases of the Group for the year and purchases from the largest supplier, included therein amounted to approximately 16.0% (2019: 15.5%) of total purchases of the Group for the year.

關連人士交易(續)

關連交易-根據特定授權發行可換股債券 (續)

於二零二零年十二月三十一日,本集團已根據 本公司日期為二零一九年一月十一日之通函所 載擬議用途將上述所得款項全部動用。

酬金政策

本集團僱員之薪酬主要根據僱員之價值、資 格、能力以及業界當時市場狀況而釐訂。彼等 之酬金包括酌情發放之花紅,一般會每年予以 檢討。董事之酬金乃由薪酬委員會參照董事之 個人表現、公司之業績表現及盈利狀況、亦以 業界指標及當時市場狀況而定。

此外,本公司採納一項購股權計劃作為給予董 事及合資格人士╱合資格承授人之獎勵╱報 酬,有關該計劃之資料載列於綜合財務報告附 註36。

足夠公眾持股量

根據本公司從公開途徑所得之資料及據董事所 知,本公司於本年度及於本年報刊發前最後實 際可行日期,一直維持上巿規則所規定之足夠 公眾持股量。

主要客戶與供應商

於本年度回顧,本集團銷售予首五大客戶之 營業額,約佔本年度本集團總營業額之46.0% (二零一九年:52.0%),其中銷售予最大客戶 的營業額約佔本年度本集團總營業額之13.0% (二零一九年:15.6%)。

本集團向首五大供應商作出之採購,約佔本 年度本集團總採購額之46.6%(二零一九年: 50.8%),其中向最大供應商作出之採購額約 佔本年度本集團總採購額之16.0%(二零一九 年:15.5%)。

MAJOR CUSTOMERS AND SUPPLIERS (continued)

Save for disclosed above, as far as the Directors are aware, neither the Directors, their associates, nor those Shareholders (who, to the best knowledge of the Directors, own more than 5% of the total number of issued shares of the Company) had any beneficial interest in the Group's five largest customers or suppliers.

Further details related to relationship with customers and suppliers, please refer to sections "MANAGEMENT DISCUSSION AND ANALYSIS" in this annual report and in the 2020 ESG Report (to be published).

AUDITOR

Messrs. PricewaterhouseCoopers was appointed as auditor of the Company with effect from 1 August 2018 to fill the casual vacancy following the resignation of Messrs. Deloitte Touche Tohmatsu and to hold office until the conclusion of the forthcoming annual general meeting of the Company. Save as disclosed above, there were no other changes in the auditor of the Company during the past three years.

Messrs. PricewaterhouseCoopers will retire and a resolution for their re-appointment as auditor of the Company will be proposed at the forthcoming annual general meeting.

By order of the Board

Su Fanrong Chairman and Managing Director Hong Kong 22 March 2021

主要客戶與供應商(續)

除以上所披露外,就董事所知,各董事、其聯 繫人士及(董事深知)擁有本公司已發行股份數 目總額5%以上之股東,概無於本集團首五大 客戶或供應商中擁有任何實益權益。

關於主要客戶與供應商的關係,請參閱本年報 「管理層論述及分析」章節及即將發佈的二零 二零年度環境、社會及管治報告。

核數師

自二零一八年八月一日起,羅兵咸永道會計師 事務所獲委任為本公司之核數師,以填補德 勤‧關黃陳方會計師行辭任後的臨時空缺,並 任職直至本公司下屆股東周年大會結束為止。 除上文披露者外,於過往三年,本公司核數師 概無其他變動。

羅兵咸永道會計師事務所將任滿告退,再續聘 其為本公司之核數師之決議案將於即將舉行之 股東周年大會上提呈。

承董事會命

董事長兼董事總經理 蘇凡荣 香港 二零二一年三月二十二日

To the Members of

Shougang Concord Century Holdings Limited (incorporated in Hong Kong with limited liability)

OPINION

What we have audited

The consolidated financial statements of Shougang Concord Century Holdings Limited (the "Company") and its subsidiaries (the "Group") set out on pages 124 to 262, which comprise:

• the consolidated statement of financial position as at 31 December 2020;
• the consolidated statement of profit or loss for the year then ended;
• the consolidated statement of comprehensive income for the year then ended;
• the consolidated statement of changes in equity for the year then ended;
• the consolidated statement of cash flows for the year then ended; and
• the notes to the consolidated financial statements, which include a summary of significant accounting policies.

Our opinion

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2020, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA") and have been properly prepared in compliance with the Hong Kong Companies Ordinance.

致首長寶佳集團有限公司 (於香港註冊成立的有限公司)

意見 我們已審計的內容

成員

首長寶佳集團有限公司(以下簡稱「貴公司」) 及其附屬公司(以下統稱「貴集團」)列載於第 124頁至262頁的綜合財務報表,包括:

• 於二零二零年十二月三十一日的綜合財 務狀況表;
• 截至該日止年度的綜合損益表;
• 截至該日止年度的綜合全面收益表;
• 截至該日止年度的綜合權益變動表;
• 截至該日止年度的綜合現金流量表;及
• 綜合財務報表附註,包括主要會計政策概 要。

我們的意見

我們認為,該等綜合財務報表已根據香港會計 師公會頒布的《香港財務報告準則》真實而中肯 地反映了 貴集團於二零二零年十二月三十一 日的綜合財務狀況及其截至該日止年度的綜合 財務表現及綜合現金流量,並已遵照香港《公 司條例》妥為擬備。

BASIS FOR OPINION

We conducted our audit in accordance with Hong Kong Standards on Auditing ("HKSAs") issued by the HKICPA. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the HKICPA's Code of Ethics for Professional Accountants ("the Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters identified in our audit are summarised as follows:

• Impairment assessments of property, plant and equipment and land use rights
• Impairment assessment of trade receivables

意見的基礎

我們已根據香港會計師公會頒布的《香港審計 準則》進行審計。我們在該等準則下承擔的責 任已在本報告「核數師就審計綜合財務報表承 擔的責任」部分中作進一步闡述。

我們相信,我們所獲得的審計憑證能充足及適 當地為我們的審計意見提供基礎。

獨立性

根據香港會計師公會頒布的《專業會計師道德 守則》,我們獨立於 貴集團,並已履行守則中 的其他專業道德責任。

關鍵審計事項

關鍵審計事項是根據我們的專業判斷,認為對 本期綜合財務報表的審計最為重要的事項。這 些事項是在我們審計整體綜合財務報表及出具 意見時進行處理的。我們不會對這些事項提供 單獨的意見。

我們在審計中識別的關鍵審計事項概述如下:

• 物業、廠房及設備與土地使用權減值評估
• 應收款項減值評估

Key Audit Matter	How our audit addressed the Key Audit Matter
關鍵審計事項	我們的審計如何處理關鍵審計事項

(1) Impairment assessments of property, plant and equipment and land use rights (1) 物業、廠房及設備與土地使用權減值評估

Refer to Note 4(b), Note 17 and Note 20 to the consolidated financial statements 請參閱綜合財務報表附註4(b)、附註17及附註20

As at 31 December 2020, the Group owned certain property, plant and equipment and land use rights amounting to HK\$1,161,184,000, and HK\$146,047,000, respectively, which relate to the steel cord segment. 於二零二零年十二月三十一日, 貴集團擁有物業、廠房 及設備與土地使用權分別為港幣1,161,184,000元及港幣 146,047,000元,其與鋼簾線分部有關。

Taking into considerations the results of the steel cord segment for the year ended 31 December 2020 as well as a comparison between the Group's market capitalisation and its net assets value, management identified impairment indicators existed for the relevant property, plant and equipment and land use rights. 根據截至二零二零年十二月三十一日止年度鋼簾線分部的 運營結果以及比較 貴集團之市值和其淨資產值,管理層 確定了物業、廠房及設備與土地使用權的減值指標。

Our procedures in relation to management's impairment assessments of property, plant and equipment and land use rights included the following:

我們對有關管理層評估物業、廠房及設備與土地使用 權減值之審計程序包括:

We obtained an understanding of the management's internal control and assessment process of impairment assessments of property, plant and equipment and land use rights and assessed the inherent risk of material misstatement by considering the degree of estimation uncertainty and level of other inherent risk factors such as complexity, subjectivity, changes and susceptibility to management bias or fraud.

我們了解了管理層評估物業、廠房及設備與土地使用 權減值的內部控制和評估過程,並通過考慮估計不確 定性的程度和其他內在風險因素(例如複雜性、主觀 性、變更及對管理偏見或欺詐的敏感性)的程度來評 估重大錯誤陳述的內在風險。

Management grouped the assets of the Group at the lowest levels for which there are separately identifiable cash flows that are largely independent of the cash flows from other assets or groups of assets (Cash-Generating Units) and performed impairment assessments in respect of the two Cash-Generating Units of the steel cord segment identified using the value-in-use method. This involved significant judgement in determining the assumptions used in the calculations. The key assumptions included: 管理層將 貴集團的資產分為最低水準,其可單獨識別現金 流入,而這些資產大部分獨立於其他資產或資產組的現金流 入(現金產生單位)。管理層還分別運用使用價值法對鋼簾 線分部的兩個現金產生單位實施了減值測試。其中設計在確

• rate of annual increment for the steel cord price; 鋼簾線價格的年增長率;

定運算中使用的假設時的重大判斷。決定關鍵假設包括:

• rate of annual increment for the sales volume; and 銷售量的年增長率;及
• discount rates 貼現率

Based on management's assessment, the recoverable amounts of relevant property, plant and equipment and land use rights exceeded their carrying amounts as at 31 December 2020.

根據管理層的評估,於二零二零年十二月三十一日並物 業、廠房及設備與土地使用權之可回收金額是超過其中賬 面值。

Key Audit Matter How our audit addressed the Key Audit Matter 關鍵審計事項 我們的審計如何處理關鍵審計事項

We evaluated and tested the key controls over the impairment assessments of property, plant and equipment and land use rights performed by management, including the selection of valuation method, determination of recoverable amounts and key assumptions made in the future cash flow forecasts.

我們評估和測試了管理層對物業、廠房和設備與土地 使用權的減值評估的關鍵控制措施,包括評估方法的 選擇、可收回金額的確定以及未來現金流量預測中的 關鍵假設。

We evaluated the composition of management's future cash flow forecasts used in their value-inuse calculations, and the process by which they were prepared. We considered that the cash flow forecasts prepared by management were subject to oversight and review by the directors of the Company.

我們評估了管理層在使用價值計算中使用的未來現金 流量預測的構成,以及準備這些預測的過程。我們認 為管理層編製的現金流量預測受 貴公司董事的監督 和審查。

We involved our internal valuation expert in assessing the appropriateness and the consistency, of the methodologies used and key assumptions and estimates applied.

我們讓我們的內部評估專家評估所用方法的適當性和 一致性以及所應用的關鍵假設和估計。

We focused on this area due to the significance of the balances and the estimation of the recoverable amount of the Cash-Generating Units of the steel cord segment is subject to a high degree of estimation uncertainty, as well as significant judgements involved in the selection of assumptions used.

我們關注該範圍是因為結餘的重要性以及評估現金產生單 位可回收金額所涉及的重大判斷(包括計算使用價值時所 用的假設)。

Key Audit Matter How our audit addressed the Key Audit Matter 關鍵審計事項 我們的審計如何處理關鍵審計事項

We evaluated the reasonableness of management's key assumptions made in the forecasts. For steel cord price, we compared the long-term steel cord price used in the forecasts against the market price, and benchmarked the rate of annual increment to industry forecasts and market trends. For sales volume, we assessed the reasonableness and feasibility of annual sales plan and productivity. For the discount rates, we benchmarked the rates used in the forecasts against our research of the discount rates used by comparable companies in the industry. We considered the potential impact of reasonably possible downside changes in these key assumptions. We also considered whether the judgements in selecting these key assumptions would give rise to indicators of possible management bias.

我們評估了管理層在預測中的關鍵假設的合理性。對 於鋼簾線價格,我們將預測中使用的長期鋼簾線價格 與市場價格進行了比較,並將年增長率與行業預測和 市場趨勢作為基準。對於銷售量,我們評估了年度銷 售計劃和生產率的合理性和可行性。對於貼現率,我 們以預測中使用的貼現率為基準檢測我們對比行業中 可比公司的研究中使用的貼現率。我們在這些關鍵假 設中考慮了合理可能的下行變化的潛在影響。我們還 考慮了選擇這些關鍵假設時的判斷是否會導致可能出 現管理偏見的指標。

Key Audit Matter	How our audit addressed the Key Audit Matter
關鍵審計事項	我們的審計如何處理關鍵審計事項

We compared the current year actual results with the amounts included in the prior year cash flow forecasts to consider the quality of management's forecasting, and where any deviations were noted, we corroborated management's explanations with our knowledge of the market and the Group's performance in the current year. We also checked that these relevant factors had been taken into account in this year's forecasts and that management had considered the current year actual results in the preparation of this year's forecasts.

我們將本年度實際結果與上一年度現金流量預測中包 含的金額進行了比較,以考慮管理層的預測質量。我 們詢問管理層瞭解本年度實際業績與上年度預測出現 偏差的原因,證實管理層對我們對市場的瞭解及 貴 集團於本年度的表現有何解釋。我們還檢查了今年的 預測中是否考慮了這些相關因素。我們亦檢查了管理 層是否考慮了本年度的實際結果用以準備本年度的預 測。

Based on the procedures performed, we considered that management's significant judgements and assumptions applied in the impairment assessment of property, plant and equipment and land use rights were supportable by the evidence obtained and procedures performed.

根據所執行的程序,我們認為管理層在物業、廠房及 設備與土地使用權的減值評估中使用的關鍵判斷和假 設得到所獲得的證據和執行的程序的支持。

Key Audit Matter How our audit addressed the Key Audit Matter 關鍵審計事項 我們的審計如何處理關鍵審計事項

(2) Impairment assessment of trade receivables

(2) 應收款項減值評估

Refer to Note 3.1(b)(ii), Note 4(c) and Note 23 to the consolidated financial statements

請參閱綜合財務報表附註3.1(b)(ii)、附註4(c)及附註23

As at 31 December 2020, the Group had gross trade receivables of HK\$667,874,000 and provision for impairment losses on trade receivables of HK\$28,958,000. Provision is made for lifetime expected credit losses on trade receivables.

於二零二零年十二月三十一日, 貴集團的應收賬款 總額為港幣667,874,000元,應 收 賬 款 減 值 撥 備 港 幣 28,958,000元。 貴集團就應收賬款的全期預期信貸虧損 計提撥備。

Our procedures in relation to management's assessment of the expected credit losses for trade receivables included the following:

我們對有關管理層評估應收賬款預期信貸虧損之審計 程式包括:

We understood, evaluated and validated the key controls over credit procedures performed by management, including the periodic review of aged receivables and the assessment of the expected credit losses for trade receivables. We also assessed the inherent risk of material misstatement by considering the degree of estimation uncertainty and level of other inherent risk factors such as complexity and subjectivity. 我們理解,評估和驗證管理層執行的關鍵信用監控程 式,包括其對定期翻閱預期應收款項及評估應收款項 預期信貸虧損準備的程式。我們還通過考慮估計不確 定性的程度和其他內在風險因素(例如複雜性和主觀 性)的程度來評估重大錯誤陳述的內在風險。

We obtained management's assessment of the expected credit losses for trade receivables and tested the accuracy of the aging profile of trade receivables by checking to the underlying invoices on a sample basis.

我們取得了管理層對應收賬款預期信貸虧損的評估, 並通過抽樣檢查發票測試了應收款項賬齡記錄的準確 性。

Management applied judgement in assessing the expected credit losses. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and aging profile. Management considered that full provision would be made for balances with known financial difficulties or those not responding to collection activities, while the expected credit loss rates of the remaining balances are determined based on historical credit losses experienced over the past 3 years and adjusted to reflect current and forward-looking information including macroeconomic factors affecting the ability of the customers to settle the receivables. 管理層運用判斷評估預期信貸虧損。為了衡量預期的信用 損失,已根據共同的信用風險特徵和賬齡概況對應收賬款 進行了分組。管理層認為,將為已知財務困難的餘額或不 響應收款活動的餘額全額計提準備金,而其餘餘額的預期 信用損失率則根據過去三年的歷史信用損失來確定,並進 行調整以反映當前及前瞻性信息包括影響客戶償付應收賬 款能力的宏觀經濟因素。

We focused on this area due to the magnitude of the trade receivables and the estimation and judgement involved in determining the expected credit losses for the trade receivables subject to high degree of estimation uncertainty.

我們關注該範疇是鑒於應收賬款的重大數額,以及在確定 具有高度估計不確定性的應收賬款預期信貸虧損準備時涉 及估計和判斷。

Key Audit Matter How our audit addressed the Key Audit Matter 關鍵審計事項 我們的審計如何處理關鍵審計事項

For trade receivables with known financial difficulties or those not responding to collection activities, we challenged and assessed the appropriateness of management's assessment based on supporting documents such as correspondence with the customers, customers' responses to collection activities and relevant public search results relating to the financial circumstances of these customers.

對於已知財務困難的貿易應收款或對託收活動不回應 的應收賬款,我們根據與客戶的往來函證,客戶對應 收款項收集的反饋以及與客戶財務狀況相關的公共搜 索結果等支援性文件,挑戰和評估了管理層評估的適 當性。

For the remaining trade receivables, we challenged and assessed the appropriateness of management's assessment including the credit risk characteristics based on the customers' historical settlement pattern over the past 3 years and performed market research regarding the relevant current and forward-looking information including macroeconomic factors affecting the ability of the customers to settle the receivables.

對於餘下的應收賬款,我們挑戰和評估了管理層評估 的適當性,包括基於客戶過往三年償付模式的信貸風 險特徵,並進行了現時及前瞻性資料的市場研究,包 括有關影響客戶償付應收款項能力的宏觀經濟因素。

We also tested the calculation of the provision for impairment losses.

我們亦測試了減值撥備的計算。

Based on the procedures performed, we considered that the judgement and estimates adopted by management in determining the expected credit losses of the trade receivables were supportable by the evidence obtained and procedures performed.

根據所執行的程序,我們認為管理層就應收款項預期 信貸虧損的估計和判斷得到所獲得的證據和執行的程 序的支持。

OTHER INFORMATION

The directors of the Company are responsible for the other information. The other information comprises all of the information included in the annual report other than the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

RESPONSIBILITIES OF DIRECTORS AND THE AUDIT COMMITTEE FOR THE CONSOLIDATED FINANCIAL STATEMENTS

The directors of the Company are responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with HKFRSs issued by the HKICPA and the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

The Audit Committee is responsible for overseeing the Group's financial reporting process.

其他信息

貴公司董事須對其他信息負責。其他信息包 括年報內的所有信息,但不包括綜合財務報表 及我們的核數師報告。

我們對綜合財務報表的意見並不涵蓋其他信 息,我們亦不對該等其他信息發表任何形式的 鑒證結論。

結合我們對綜合財務報表的審計,我們的責任 是閱讀其他信息,在此過程中,考慮其他信息 是否與綜合財務報表或我們在審計過程中所了 解的情況存在重大抵觸或者似乎存在重大錯誤 陳述的情況。

基於我們已執行的工作,如果我們認為其他信 息存在重大錯誤陳述,我們需要報告該事實。 在這方面,我們沒有任何報告。

董事及審計委員會就綜合財務報表須 承擔的責任

貴公司董事須負責根據香港會計師公會頒布 的《香港財務報告準則》及香港《公司條例》擬備 真實而中肯的綜合財務報表,並對其認為為使 綜合財務報表的擬備不存在由於欺詐或錯誤而 導致的重大錯誤陳述所需的內部控制負責。

在擬備綜合財務報表時,董事負責評估 貴集 團持續經營的能力,並在適用情況下披露與持 續經營有關的事項,以及使用持續經營為會計 基礎,除非董事有意將 貴集團清盤或停止經 營,或別無其他實際的替代方案。

審計委員會須負責監督 貴集團的財務報告過 程。

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. We report our opinion solely to you, as a body, in accordance with Section 405 of the Hong Kong Companies Ordinance and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with HKSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with HKSAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.

核數師就審計綜合財務報表承擔的責 任

我們的目標,是對綜合財務報表整體是否不 存在由於欺詐或錯誤而導致的重大錯誤陳述 取得合理保證,並出具包括我們意見的核數 師報告。我們僅按照香港《公司條例》第405條 向 閣下(作為整體)報告我們的意見,除此之 外本報告別無其他目的。我們不會就本報告的 內容向任何其他人士負上或承擔任何責任。合 理保證是高水準的保證,但不能保證按照《香 港審計準則》進行的審計,在某一重大錯誤陳 述存在時總能發現。錯誤陳述可以由欺詐或錯 誤引起,如果合理預期它們單獨或匯總起來可 能影響綜合財務報表使用者依賴綜合財務報表 所作出的經濟決定,則有關的錯誤陳述可被視 作重大。

在根據《香港審計準則》進行審計的過程中,我 們運用了專業判斷,保持了專業懷疑態度。我 們亦:

• 識別和評估由於欺詐或錯誤而導致綜合 財務報表存在重大錯誤陳述的風險,設計 及執行審計程式以應對這些風險,以及獲 取充足和適當的審計憑證,作為我們意見 的基礎。由於欺詐可能涉及串謀、偽造、 蓄意遺漏、虛假陳述,或淩駕於內部控制 之上,因此未能發現因欺詐而導致的重大 錯誤陳述的風險高於未能發現因錯誤而 導致的重大錯誤陳述的風險。

• 了解與審計相關的內部控制,以設計適當 的審計程序,但目的並非對 貴集團內部 控制的有效性發表意見。

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

• 評價董事所採用會計政策的恰當性及作 出會計估計和相關披露的合理性。
• 對董事採用持續經營會計基礎的恰當性 作出結論。根據所獲取的審計憑證,確定 是否存在與事項或情況有關的重大不確 定性,從而可能導致對 貴集團的持續經 營能力產生重大疑慮。如果我們認為存在 重大不確定性,則有必要在核數師報告中 提請使用者注意綜合財務報表中的相關 披露。假若有關的披露不足,則我們應當 發表非無保留意見。我們的結論是基於核 數師報告日止所取得的審計憑證。然而, 未來事項或情況可能導致 貴集團不能 持續經營。
• 評價綜合財務報表的整體列報方式、結構 和內容,包括披露,以及綜合財務報表是 否中肯反映交易和事項。
• 就 貴集團內實體或業務活動的財務信 息獲取充足、適當的審計憑證,以便對綜 合財務報表發表意見。我們負責 貴集團 審計的方向、監督和執行。我們為審計意 見承擔全部責任。

除其他事項外,我們與審計委員會溝通了計劃 的審計範圍、時間安排、重大審計發現等,包 括我們在審計中識別出內部控制的任何重大缺 陷。

我們還向審計委員會提交聲明,說明我們已符 合有關獨立性的相關專業道德要求,並與他們 溝通有可能合理地被認為會影響我們獨立性的 所有關係和其他事項,以及在適用的情況下, 用以消除對獨立性產生威脅的行動或採取的防 範措施。

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor's report is Chan Hin Gay Gabriel.

從與審計委員會溝通的事項中,我們確定哪些 事項對本期綜合財務報表的審計最為重要,因 而構成關鍵審計事項。我們在核數師報告中描 述這些事項,除非法律法規不允許公開披露這 些事項,或在極端罕見的情況下,如果合理預 期在我們報告中溝通某事項造成的負面後果超 過產生的公眾利益,我們決定不應在報告中溝 通該事項。

出具本獨立核數師報告的審計項目合夥人是陳 顯基。

PricewaterhouseCoopers Certified Public Accountants Hong Kong, 22 March 2021

羅兵咸永道會計師事務所 執業會計師 香港,二零二一年三月二十二日

CONSOLIDATED STATEMENT OF PROFIT OR LOSS 綜合損益表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

			Year ended 31 December 截至十二月三十一日止年度
			2020	2019
		Notes	二零二零年 HK\$'000	二零一九年 HK\$'000
		附註	港幣千元	港幣千元
Continuing operations	持續經營業務
Revenue	營業額	5	2,041,553	2,141,380
Cost of sales	銷售成本	9	(1,647,231)	(1,763,436)
Gross profit	毛利		394,322	377,944
Other income	其他收入	7	9,509	16,891
Other losses, net	其他虧損,淨額	8	(59,377)	(13,179)
Distribution and selling expenses	分銷及銷售費用	9	(84,149)	(90,033)
Administrative expenses	行政費用	9	(55,956)	(54,429)
Research and	研發費用
development expenses		9	(71,404)	(74,493)
Foreign exchange (losses)/	外幣匯兌(虧損)╱收益,淨額
gains, net			(8,077)	2,094
Changes in fair values of	投資物業公平值之變動
investment properties		16	(2,062)	(718)
Reversal of impairment losses on	土地使用權之減值損失撥回
land use rights		20	46,867	17,456
Net impairment losses on	金融資產減值損失淨額
financial assets		23(c)	(6,274)	(1,059)
Finance costs, net	財務成本,淨額	11	(17,488)	(64,704)
Profit before income tax	除所得稅前溢利		145,911	115,770
Income tax credit/(expense)	所得稅抵免╱(支出)	12	3,054	(4,026)
Profit from continuing operations	來自持續經營業務之溢利		148,965	111,744
Discontinued operation	已終止經營業務
Loss from discontinued operation	來自已終止經營業務之虧損	32	(711)	(3,400)
Profit for the year	本年度溢利		148,254	108,344

The notes on pages 135 to 262 are an integral part of these consolidated financial statements. 中部分。

CONSOLIDATED STATEMENT OF PROFIT OR LOSS

綜合損益表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

				Year ended 31 December 截至十二月三十一日止年度
			2020	2019
			二零二零年	二零一九年
		Notes	HK cents	HK cents
		附註	港仙	港仙
Earnings per share for profit from	本公司擁有人應佔來自持續經
continuing operations attributable	營業務之溢利之每股盈利
to the owners of the Company
– Basic	-基本	15	7.80	5.81
– Diluted	-攤薄	15	6.80	5.36
Earnings per share for profit	本公司擁有人應佔本年度溢利
for the year attributable to the	之每股盈利
owners of the Company
– Basic	-基本	15	7.76	5.63
– Diluted	-攤薄	15	6.77	5.22

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 綜合全面收益表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2020 2019 二零二零年 二零一九年 Notes HK\$'000 HK\$'000 附註 港幣千元 港幣千元 Profit for the year 148,254 108,344 本年度溢利 Other comprehensive income/ 來自持續經營業務之其他全面 (loss) arising from continuing 收益╱(虧損) operations 其後將不會重新分類至損益之 Items that will not be reclassified 項目 to profit or loss Exchange differences arising on 因換算呈列貨幣而產生的匯 translation into 兌差額 presentation currency 104,698 Revaluation of leasehold 租賃土地及樓宇重估 land and buildings 17 (2,009) Recognition of deferred income 租賃土地及樓宇重估之遞延 tax asset on revaluation of 所得稅資產確認 leasehold land and buildings 31 287 4,606 102,976 Other comprehensive income/ 來自已終止經營業務之其他全 (loss) arising from 面收益╱(虧損) discontinued operation 其後將不會重新分類至損益 Item that will not be reclassified 之項目 to profit or loss Exchange differences arising on 因換算呈列貨幣而產生的 translation into 匯兌差額 presentation currency 32 2,542 Total comprehensive income 本年度全面收益總額(扣除 for the year, net of tax 253,772 76,627 稅) Total comprehensive income/(loss) 本年度全面收益╱(虧損)總 for the year arises from: 額來自: – Continuing operations 251,941 81,121 -持續經營業務 – Discontinued operation 32 1,831 -已終止經營業務 253,772 76,627		Year ended 31 December 截至十二月三十一日止年度
(32,485) (2,744) (30,623) (1,094) (4,494)

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION 綜合財務狀況表

AT 31 DECEMBER 2020 於二零二零年十二月三十一日

於十二月三十一日 2020 二零二零年 二零一九年 Notes HK\$'000 HK\$'000 附註 港幣千元 港幣千元 Assets 資產	2019 54,093 1,569 95,627
Non-current assets 非流動資產
Investment properties 16 53,874 投資物業
Property, plant and equipment 17 1,178,174 1,078,262 物業、廠房及設備
Right-of-use assets 18 384 資產使用權
Land use rights 20 146,047 土地使用權
Intangible assets 21 – 無形資產	–
Prepayments for the acquisition of 購買物業、廠房及設備之預付款
property, plant and equipment 24 33,951 10,464
Total non-current assets 1,412,430 1,240,015 非流動資產總額
Current assets 流動資產
Inventories 22 246,638 294,981 存貨
Trade receivables 23 638,916 579,443 應收賬款
Bills receivable 23 871,869 898,284 應收票據
Prepayments, deposits and other 預付款、按金及其他應收款
receivables 24 24,484 29,463
Pledged bank deposits 26(a) 84,308 53,921 已抵押銀行存款
Bank balances and cash 26(b) 93,262 47,811 銀行結存及現金
Total current assets 1,959,477 1,903,903 流動資產總額
Total assets 3,371,907 3,143,918 資產總額
Liabilities 負債
Non-current liabilities 非流動負債
Other payables 259 其他應付款	487
Bank borrowings 29 – 210,241 銀行貸款
Lease liabilities 18 – 租賃負債	404
Deferred income tax liabilities 31 20,339 25,853 遞延所得稅項負債
Total non-current liabilities 20,598 236,985 非流動負債總額

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

綜合財務狀況表

AT 31 DECEMBER 2020 於二零二零年十二月三十一日

				As at 31 December 於十二月三十一日
			2020	2019
			二零二零年	二零一九年
		Notes	HK\$'000	HK\$'000
		附註	港幣千元	港幣千元
Current liabilities	流動負債
Trade and bills payables	應付賬款及票據	27	761,321	707,010
Other payables and accruals	其他應付款及預提費用	27	278,577	169,104
Current income tax liabilities	當期所得稅負債		4,494	3,493
Loan from a related company	來自一間關連公司之貸款	28	–	57,644
Bank borrowings	銀行貸款	29	492,460	400,461
Lease liabilities	租賃負債	18	404	1,205
Financial liability at fair value	按公平值計入損益之金融負債
through profit or loss		30	168,482	152,944
Total current liabilities	流動負債總額		1,705,738	1,491,861
Total liabilities	負債總額		1,726,336	1,728,846
Equity	權益
Share capital	股本	33	1,191,798	1,191,798
Reserves	儲備		453,773	223,274
Total equity	權益總額		1,645,571	1,415,072
Total equity and liabilities	權益與負債總額		3,371,907	3,143,918

The financial statements on pages 124 to 262 were approved by the Board of Directors on 22 March 2021 and were signed on its behalf:

載列於第124頁至262頁之綜合財務報告已於 二零二一年三月二十二日獲董事會批准,並由 以下董事代為簽署:

Su Fanrong Li Jinping 蘇凡荣 李金平 DIRECTOR DIRECTOR 董事 董事

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 綜合權益變動表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

		Share capital 股本 HK\$'000 港幣千元	Capital reserve 資本儲備 HK\$'000 港幣千元 (Note (i)) (附註(i))	Property revaluation reserve 物業重估儲備 HK\$'000 港幣千元	Translation reserve 匯兌儲備 HK\$'000 港幣千元	Share option reserve 購股權儲備 HK\$'000 港幣千元	PRC funds 中國儲備基金 HK\$'000 港幣千元 (Note (ii)) (附註(ii))	reserve Accumulated losses 累計虧損 HK\$'000 港幣千元	Total 合計 HK\$'000 港幣千元
For the year ended 31 December 2020 At 1 January 2020	截至二零二零年 十二月三十一日止年度 於二零二零年一月一日	1,191,798	23,990	149,460	206,815	–	76,556	(233,547)	1,415,072
Comprehensive income Profit for the year Other comprehensive (loss)/income	全面收益 本年度溢利 其他全面(虧損)╱收益	–	–	–	–	–	–	148,254	148,254
Exchange differences arising on translation into presentation currency Revaluation of leasehold	因換算呈列貨幣而產生的 匯兌差額 租賃土地及樓宇重估	–	–	–	107,240	–	–	–	107,240
land and buildings (Note 17) Recognition of deferred income tax asset on revaluation of leasehold	(附註17) 租賃土地及樓宇重估之遞 延所得稅資產確認 (附註31)	–	–	(2,009)	–	–	–	–	(2,009)
land and buildings (Note 31)		–	–	287	–	–	–	–	287
Total comprehensive (loss)/income for the year	本年度全面(虧損)╱ 收益總額	–	–	(1,722)	107,240	–	–	148,254	253,772
Transaction with owners in their capacity as owners:	與身為擁有人之權益 持有人的交易:
Buy-back of shares	股份購回	–	–	–	–	–	–	(4,209)	(4,209)
Dividend paid Transfer to PRC reserve funds (Note (ii))	已付股息 轉撥至中國儲備基金 (附註(ii))	– –	– –	– –	– –	– –	– 5,491	(19,064) (5,491)	(19,064) –
		–	–	–	–	–	5,491	(28,764)	(23,273)
At 31 December 2020	於二零二零年 十二月三十一日	1,191,798	23,990	147,738	314,055	–	82,047	(114,057)	1,645,571

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 綜合權益變動表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

		Share capital 股本 HK\$'000 港幣千元	Capital reserve 資本儲備 HK\$'000 港幣千元 (Note (i)) (附註(i))	Property revaluation reserve 物業重估儲備 HK\$'000 港幣千元	Translation reserve 匯兌儲備 HK\$'000 港幣千元	Share option reserve 購股權儲備 HK\$'000 港幣千元	PRC reserve funds 中國儲備基金 HK\$'000 港幣千元 (Note (ii)) (附註(ii))	Accumulated losses 累計虧損 HK\$'000 港幣千元	Total 合計 HK\$'000 港幣千元
For the year ended 31 December 2019 At 1 January 2019	截至二零一九年 十二月三十一日止年度 於二零一九年一月一日	1,191,798	23,990	147,598	240,394	1,080	71,145	(336,855)	1,339,150
Comprehensive income Profit for the year Other comprehensive (loss)/income Exchange differences arising	全面收益 本年度溢利 其他全面(虧損)╱收益 因換算呈列貨幣而產生的	–	–	–	–	–	–	108,344	108,344
on translation into presentation currency Revaluation of leasehold land and buildings	匯兌差額 租賃土地及樓宇重估 (附註17)	–	–	–	(33,579)	–	–	–	(33,579)
(Note 17) Recognition of deferred income tax asset on revaluation of leasehold	租賃土地及樓宇重估之遞 延所得稅資產確認 (附註31)	–	–	(2,744)	–	–	–	–	(2,744)
land and buildings (Note 31)		–	–	4,606	–	–	–	–	4,606
Total comprehensive income/(loss) for the year	本年度全面收益╱ (虧損)總額	–	–	1,862	(33,579)	–	–	108,344	76,627
Transaction with owners in their capacity as owners:	與身為擁有人之權益 持有人的交易:
Buy-back of shares Lapse of share options	股份購回 購股權失效	– –	– –	– –	– –	– (1,080)	– –	(705) 1,080	(705) –
Transfer to PRC reserve funds (Note (ii))	轉撥至中國儲備基金 (附註(ii))	–	–	–	–	–	5,411	(5,411)	–
		–	–	–	–	(1,080)	5,411	(5,036)	(705)
At 31 December 2019	於二零一九年 十二月三十一日	1,191,798	23,990	149,460	206,815	–	76,556	(233,547)	1,415,072

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 綜合權益變動表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

Notes:

• i The capital reserve represents the benefit of acquiring a shareholder's loan from a previous shareholder upon the acquisition of a subsidiary in previous years.
• ii In accordance with the Articles of Association of the Company's subsidiaries established in the People's Republic of China (the "PRC") and relevant PRC laws and regulations, these subsidiaries are required to transfer at least 10% of their profit after taxation, which is determined in accordance with the PRC accounting rules and regulations, to a statutory reserve fund (including the general reserve fund and enterprise expansion fund, where appropriate). Transfer to this statutory reserve fund is subject to the approval of the respective board of directors, and is discretionary when the balance of such fund has reached 50% of the registered capital of the respective company. Statutory reserve fund can only be used to offset accumulated losses or to increase capital.

附註:

• i 資本儲備表示於以前年度收購一附屬公司時,向 一位前股東購入股東貸款之收益。
• ii 根據於中華人民共和國(「中國」)成立的本公司 之附屬公司之公司章程細則及中國有關法律及規 定,該等附屬公司須按中國會計規則及規定,轉 撥不少於除稅後溢利的10%作為法定儲備基金 (當中包括一般儲備及企業發展基金,如適用), 直至該法定儲備餘額已達到個別公司註冊資本的 50%時可酌情處理。轉撥至此法定儲備基金需經 個別公司董事會之批准。法定儲備基金只可用於 抵銷累計虧損或增加資本。

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS 綜合現金流量表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

			Year ended 31 December 截至十二月三十一日止年度
			2020	2019
			二零二零年	二零一九年
		Notes	HK\$'000	HK\$'000
		附註	港幣千元	港幣千元
Cash flows from operating activities	經營活動產生之現金流量
Cash generated from operations	經營產生之現金	35(a)	498,230	345,967
PRC corporate income tax paid	已付之中國企業所得稅		(2,696)	(3,757)
Net cash generated from operating	來自持續營業務之經營活動而
activities from	產生之現金淨額
continuing operations			495,534	342,210
Net cash (used in)/generated from	來自已終止經營業務之經營活
operating activities from	動而(動用)╱產生之現金淨額
discontinued operation		32	(579)	402
Net cash generated from	經營活動產生之現金淨額
operating activities			494,955	342,612
Cash flows from	投資活動產生之現金流量
investing activities
Placement of pledged	存放已抵押銀行存款
bank deposits			(79,710)	(53,921)
Withdrawal of pledged	提取已抵押銀行存款
bank deposits			54,260	76,911
Purchase of property, plant	購買物業、廠房及設備
and equipment			(97,595)	(38,869)
Purchase of land use rights Prepayments for the acquisition of	購買土地使用權		–	(10,616)
property, plant and equipment	購買物業、廠房及設備之 預付款		(78,193)	(17,484)
Proceeds from disposals of	出售物業、廠房及設備
property, plant and equipment	所得款項	35(a)	5,787	1,581
Interest received	已收利息		1,114	865

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

綜合現金流量表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

			Year ended 31 December 截至十二月三十一日止年度
			2020 二零二零年	2019 二零一九年
		Notes 附註	HK\$'000 港幣千元	HK\$'000 港幣千元
Net cash used in investing	來自持續營業務之投資活動而
activities from continuing operations	產生之現金淨額		(194,337)	(41,533)
Net cash generated from investing	來自已終止經營業務之投資活
activities from discontinued operation	動而產生之現金淨額	32	–	140
Net cash used in	投資活動動用之現金淨額
investing activities			(194,337)	(41,393)
Cash flows from financing activities	融資活動產生之現金流量
Proceeds from bank borrowings	來自銀行貸款之所得款項		489,569	479,616
Proceeds from discounted bills	來自貼現票據之所得款項		266,660	275,060
Repayments of bank borrowings	償還銀行貸款		(535,138)	(743,214)
Repayment of loan from	償還一間關連公司之貸款
a related company			(50,000)	(164,180)
Repayments of discounted bills	償還貼現票據		(371,629)	(267,075)
Interest paid	已付利息		(29,445)	(43,970)
Dividend paid	已付股息		(19,064)	–
Payments of shares repurchase	股份購回款項		(4,209)	(705)
Payments for principal elements of	償還租賃負債之本金部分
lease liabilities			(1,171)	(1,160)
Issuance of convertible bonds	發行可換股債券		–	150,000
Settlement of convertible bonds	償付可換股債券		(6,000)	(3,000)
Net cash used in financing	來自持續營業務之融資活動
activities from	而動用之現金淨額
continuing operations			(260,427)	(318,628)
Net cash used in financing	來自已終止經營業務之融資活
activities from	動而動用之現金淨額
discontinued operation		32	(35)	(37)

The notes on pages 135 to 262 are an integral part of these consolidated financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS

綜合現金流量表

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

				Year ended 31 December 截至十二月三十一日止年度
			2020	2019
			二零二零年	二零一九年
		Notes	HK\$'000	HK\$'000
		附註	港幣千元	港幣千元
Net cash used in	融資活動動用之現金淨額
financing activities			(260,462)	(318,665)
Net increase/(decrease) in cash	現金及現金等值項目之
and cash equivalents	增加╱(減少)淨額		40,156	(17,446)
Cash and cash equivalents at	於年初之現金及現金等值項目
beginning of the year			47,811	66,682
Exchange gain/(loss) on cash	現金及現金等值項目之匯兌
and cash equivalents	收益╱(虧損)		5,295	(1,425)
Cash and cash equivalents at end	於年終之現金及現金等值項目
of the year		26(b)	93,262	47,811

The notes on pages 135 to 262 are an integral part of these consolidated financial statements. 第135頁至262頁的附註乃綜合財務報表的其 中部分。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

1 GENERAL INFORMATION

Shougang Concord Century Holdings Limited (the "Company") is an investment holding company and together with its subsidiaries (collectively referred to as the "Group") are principally engaged in the manufacturing of steel cords.

The Company is a limited company incorporated in Hong Kong. The address of its registered office is Room 1215, 12/F., Honour Industrial Centre, 6 Sun Yip Street, Chai Wan, Hong Kong.

The Company's shares were listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange").

The consolidated financial statements are presented in thousands of Hong Kong dollars (HK\$'000), unless otherwise stated.

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

2.1 Basis of preparation

The consolidated financial statements of the Company have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs") and requirements of the Hong Kong Companies Ordinance ("HKCO") Cap. 622. The consolidated financial statements have been prepared under the historical cost convention, except for leasehold land and buildings, investment properties and financial liability at fair value through profit or loss, which are measured at fair values.

The preparation of consolidated financial statements in conformity with HKFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies.

1 一般資料

首長寶佳集團有限公司(「本公司」)為一 間投資控股公司。本公司及其附屬公司 (統稱「本集團」)主要從事製造鋼簾線。

本公司乃於香港成立之有限公司,其註冊 辦事處地址為香港柴灣新業街6號安力工 業中心12樓1215室。

本公司股份於香港聯合交易所有限公司 (「聯交所」)主板上市。

除另有說明外,本綜合財務報告以港幣千 元(「港幣千元」)呈列。

2 重大會計政策概要

編製此等綜合財務報表時採用之主要會 計政策載列如下。除另有所指外,該等政 策於呈報之所有年度貫徹採用。

2.1 編製基準

本公司之綜合財務報表乃根據香港 財務報告準則(「香港財務報告準 則」)及香港公司條例(「香港公司條 例」(第) 622章)而編製。此等綜合財 務報表按歷史成本常規法編製,惟 按公平值計量之租賃土地及樓宇、 投資物業及按公平值計入損益之金 融負債除外。

為符合香港財務報告準則,編製綜 合財務報表時須作出若干重要之會 計估計,管理層亦須在應用本集團 會計政策之過程中作出判斷。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.1 Basis of preparation (continued) 2.1.1 New and amended standards and interpretations adopted by the Group

The Group has applied the following new and amended standards and interpretations for the first time for the annual reporting period commencing from 1 January 2020:

Amendments to HKFRS 3	Definition of a Business
Amendments to HKAS 1 and HKAS 8	Definition of Material
Amendments to HKFRS 16	COVID-19 Related Rent Concession (Note)
Amendments to HKFRS 7, HKFRS 9 and HKAS 39	Interest Rate Benchmark Reform (Phase 1)

Conceptual Framework for Financial Reporting 2018 Revised Conceptual Framework for Financial Reporting

Note: The Group has elected to early adopt the above standard. The Group did not receive any rent concessions for the year ended 31 December 2020 and there is no impact on the opening balance of equity at 1 January 2020.

The amendments listed above did not have any impact on the amounts recognised in prior periods and are not expected to significantly affect the current or future periods.

2.1 編製基準(續) 2.1.1 本集團採納之新訂及經修訂 準則及詮釋

本集團已於二零二零年一月一 日開始之財政年度首次採納以 下之新訂及經修訂準則及詮 釋:

香港財務報告準則 第3號的修訂 業務的定義 香港會計準則第1號及 香港會計準則 第8號的修訂 重大的定義 香港財務報告準則 第16號的修訂 2019冠狀病毒病 相關租金優惠 (附註) 香港財務報告準則 第7號、香港財務 報告準則第9號 及香港會計準則 第39號的修訂 基準利率改革 (第一階段) 二零一八年財務報告 的概念框架 財務報告之經修訂 概念框架

附註:本集團已選擇提前採用上述 準則。本集團截至二零二零年 十二月三十一日止年度未獲 任何租金優惠,而這對於二零 二零年一月一日的權益期初 餘額沒有影響。

上述修訂對前期入帳金額沒有 任何影響,預計也不會對當期 或未來期間產生重大影響。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.1 Basis of preparation (continued) 2.1.2 Impact of new and amended standards issued but not yet applied by the Group

Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2020 reporting periods and have not been early adopted by the Group.

2.1 編製基準(續) 2.1.2 本集團並未應用以下已頒佈 之新訂及經修訂準則及詮釋 之影響 本集團並未提前採用已發佈 但在截至二零二零年十二月

三十一日止的報告期間尚未生 效的新會計準則及詮釋公告。

Effective for
accounting
periods
beginning
on or after
於下列日期或
之後開始的會計期間生效

Amendments to HKAS 39, HKFRS 4, HKFRS 7, HKFRS 9 and HKFRS 16	Interest Rate Benchmark Reform (Phase 2)	1 January 2021
香港會計準則第39號、香港財務報告 準則第4號、香港財務報告準則 第7號、香港財務報告準則第9號及 香港財務報告準則第16號的修訂	基準利率改革(第二階段)	二零二一年一月一日
Amendments to HKAS 16	Property, Plant and Equipment – Proceeds before Intended Use	1 January 2022
香港會計準則第16號的修訂	物業、廠房及設備 -作擬定用途前的所得款項	二零二二年一月一日
Amendments to HKAS 37	Onerous Contracts – Cost of Fulfilling a Contract	1 January 2022
香港會計準則第37號的修訂	虧損合約-履行合約的成本	二零二二年一月一日
Amendments to HKFRS 3	Reference to the Conceptual Framework	1 January 2022
香港財務報告準則第3號的修訂	引用概念框架	二零二二年一月一日
Annual Improvements Projects	Amendments to HKFRS 1, HKFRS 9, HKFRS 16 and HKAS 41	1 January 2022
年度改進項目	香港財務報告準則第1號、 香港財務報告準則第9號、 香港財務報告準則第16號及 香港會計準則第41號的修訂	二零二二年一月一日

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.1 Basis of preparation (continued)

2.1.2 Impact of new and amended standards issued but not yet applied by the Group (continued)

2.1 編製基準(續) 2.1.2 本集團並未應用以下已頒佈 之新訂及經修訂準則及詮釋 之影響(續)

		Effective for accounting periods beginning on or after 於下列日期或 之後開始的會計期間生效
Amendments to Accounting	Merger Accounting for	1 January 2022
Guideline 5	Common Control Combinations
會計指引5的修訂	共同控制合併下的合併會計	二零二二年一月一日
Amendments to HKAS 1	Classification of Liabilities as Current or Non-current	1 January 2023
香港會計準則第1號的修訂	負債分類為流動或非流動	二零二三年一月一日
HKFRS 17 and amendments to HKFRS 17	Insurance Contracts	1 January 2023
香港財務報告準則第17號及 香港財務報告準則第17號的修訂	保險合約	二零二三年一月一日
Amendments to Hong Kong Interpretation 5	Classification by the Borrower of a Term Loan that Contains a Repayment on Demand Clause	1 January 2023
香港詮釋5的修訂	借款人對包含還款條款的定期 貸款之分類	二零二三年一月一日
Amendments to HKFRS 10 and HKAS 28	Sale or Contribution of Assets between an Investor and its Associate or Joint Venture	To be determined
香港財務報告準則第10號及 香港會計準則第28號的修訂	投資者與其聯營公司或合營公司 之資產出售或注資	待定

Management is in the process of assessing potential impact of the above new standards and amendments that are relevant to the Group upon initial application. According to the preliminary assessment, management does not anticipate any significant impact on the Group's consolidated financial position and consolidated results of operations upon adopting the above new standards and amendments. Management plans to adopt these new standards and amendments to existing standards when they become mandatory.

管理層正在評估於首次應用後 上述與本集團有關的新訂準則 及修訂的潛在影響。根據初步 評估,管理層預期於採納上述 新訂準則及修訂後,不會對本 集團的綜合財務狀況及綜合經 營業績造成任何重大影響。管 理層計劃於該等新訂準則及現 有準則的修訂強制生效時採用 該等準則及修訂。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.2 Principles of consolidation

(a) Subsidiaries

Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases.

The acquisition method of accounting is used to account for business combinations by the Group.

Intercompany transactions balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.

Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of financial position respectively.

2.2 綜合原則 (a) 附屬公司

附屬公司指本集團對其有控制 權的所有實體。本集團對實體 有控制權,是指本集團因參與 該實體的營運而獲得或有權享 有其可變回報,並能夠運用其 指導實體活動的權力影響上述 回報。附屬公司在控制權轉移 至本集團當日悉數綜合入賬。 附屬公司在控制權終止之日起 停止綜合入賬。

本集團的業務合併使用收購會 計法入賬。

集團內公司間交易、結餘及集 團公司間交易的未變現收益均 予以抵銷。未變現虧損亦會對 銷,除非該交易有證據顯示所 轉讓資產出現減值則作別論。 附屬公司的會計政策已按需要 變更,以確保與本集團所採納 政策貫徹一致。

於附屬公司業績及權益的非控 股權益分別於綜合損益表、綜 合全面收益表、綜合權益變動 表及綜合財務狀況表內列示。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.2 Principles of consolidation (continued)

(b) Changes in ownership interests

The Group treats transactions with noncontrolling interests that do not result in a loss of control as transactions with equity owners of the Group. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and noncontrolling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognised in a separate reserve within equity attributable to owners of the Company.

When the Group ceases to consolidate an investment because of a loss of control, any retained interest in the entity is remeasured to its fair value with the change in carrying amount recognised in consolidated statement of profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss or transferred to another category of equity as specified/permitted by applicable HKFRSs.

2.2 綜合原則(續) (b) 擁有權權益變動

本集團將其與非控股權益進行 而不構成喪失控制權的交易視 為與本集團權益持有者間進行 的交易。擁有權權益變動會導 致控股及非控股權益賬面值調 整,以反映各自於附屬公司的 權益。非控股權益調整金額與 已付或已收代價的差額,乃於 本公司擁有人應佔權益內確認 為獨立儲備。

倘本集團因喪失控制權或重大 影響力而停止對一筆投資綜合 入賬或使用權益會計法,於實 體的任何保留權益按公平值重 新計量,有關賬面值變動在綜 合損益表確認。就其後入賬列 作聯營公司、合營企業或金融 資產的保留權益,其公平值為 初始賬面值。此外,先前於其 他全面收益確認與該實體有關 的任何金額,按猶如本集團已 直接出售有關資產或負債的方 式入賬。此可能意味先前在其 他全面收益確認的金額重新分 類至損益或根據適用香港財務 報告準則所訂明╱准許者,轉 撥至另一權益類別。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.3 Business combination

The acquisition method of accounting is used to account for all business combinations, regardless of whether equity instruments or other assets are acquired. The consideration transferred for the acquisition of a subsidiary comprises the:

• fair values of the assets transferred,
• liabilities incurred to the former owners of the acquired business,
• equity interests issued by the Group,
• fair value of any asset or liability resulting from a contingent consideration arrangement, and
• fair value of any pre-existing equity interest in the subsidiary.

Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values at the acquisition date. The Group recognises any noncontrolling interest in the acquired entity on an acquisition-by-acquisition basis either at fair value or at the non-controlling interest's proportionate share of the acquired entity's net identifiable assets.

Acquisition-related costs are expensed as incurred.

The excess of the:

• consideration transferred,
• amount of any non-controlling interest in the acquired entity, and
• acquisition-date fair value of any previous equity interest in the acquired entity.

2.3 業務合併

所有業務合併均以收購會計法入 賬,無論所收購者為權益工具或其 他資產。收購一間附屬公司所轉讓 的代價包括:

• ‧ 所轉讓資產的公平值,
• ‧ 所收購對象先前擁有人產生的 負債,
• ‧ 本集團發行的股權,
• ‧ 或然代價安排產生的任何資產 或負債的公平值,及
• ‧ 任何先前存在的附屬公司股權 的公平值。

除有限例外情況外,於業務合併收 購的可識別資產以及承擔的負債及 或然負債,初步按收購日期的公平 值計量。本集團根據個別收購交易 按公平值或非控股權益應佔被收購 實體可識別資產淨值的比例確認於 被收購實體的任何非控股權益。

收購相關成本於產生時支銷。

超出部份:

• ‧ 所轉讓代價,
• ‧ 於被收購實體的任何非控股權 益金額,及
• ‧ 任何先前於被收購實體的權益 於收購日期的公平值。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.3 Business combination (continued)

over the fair value of the net identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable assets of the business acquired, the difference is recognised directly in consolidated statement of profit or loss as a bargain purchase.

Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity's incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in consolidated statement of profit or loss.

If the business combination is achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquiree is remeasured to fair value at the acquisition date. Any gains or losses arising from such remeasurement are recognised in consolidated statement of profit or loss.

2.3 業務合併(續)

與已收購可識別資產淨值的公平值 的差額按商譽列賬。倘上述金額低 於所收購業務可識別資產淨值的公 平值,有關差額會作為一項廉價購 買直接於綜合損益表確認。

如果遞延現金對價的任何部分的結 算,則把將來應付的款項折現至其 在交換之日的現值。而使用的折現 率是實體的增量借款利率,即在可 比較的條款和條件下可以從獨立金 融機構獲得類似借款的利率。應付 或然代價歸類為權益或金融負債。 歸類為金融負債的金額其後重新計 量至公平值,公平值變動於綜合損 益表確認。

倘業務合併分階段完成,收購方過 往於收購對象所持股權於收購日期 的賬面值重新計量至收購日期的公 平值;該項重新計量所產生的任何 收益或虧損,於綜合損益表確認。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.4 Separate financial statements

Investments in subsidiaries are accounted for at cost less impairment. Cost includes direct attributable costs of investment. The results of subsidiaries are accounted for by the Company on the basis of dividend received and receivable.

Impairment testing of the investments in subsidiaries is required upon receiving a dividend from these investments if the dividend exceeds the total comprehensive income of the subsidiary in the period the dividend is declared or if the carrying amount of the investment in the separate financial statements exceeds the carrying amount in the consolidated financial statements of the investee's net assets including goodwill.

2.5 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker ("CODM"), who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Company's managing director that make strategic decisions.

2.6 Foreign currency translation

(a) Functional and presentation currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates (the "functional currency"). The consolidated financial statements are presented in Hong Kong dollars ("HK\$"), which is the Group's presentation currency. The functional currency of the Company is Renminbi ("RMB").

2.4 獨立財務報表

於附屬公司的投資按成本值扣除減 值列賬。成本包括直接應佔投資成 本。附屬公司的業績乃由本公司按 已收及應收股息入賬。

倘股息超出附屬公司宣派股息期間 全面收益總額,或倘獨立財務報表 中投資賬面值超出綜合財務報表所 示投資對象資產淨值(包括商譽)的 賬面值,則須於自該投資收取股息 時,對該等附屬公司的投資進行減 值測試。

2.5 分部報告

經營分部乃以與向主要經營決策者 提交內部報告一致的方式呈報。主 要經營決策者(「主要經營決策者」) 負責分配資源及評估經營分部的表 現,已被確認為作出策略決策的董 事總經理。

2.6 外幣換算

(a) 功能及呈報貨幣 本集團旗下各實體之財務報表 所列項目均採用有關實體營業 所在主要經濟環境通用之貨幣 (「功能貨幣」)為計算單位。綜 合財務報表以港元(「港元」) 呈報,港元為本集團之呈報貨 幣。人民幣(「人民幣」)為本公 司之功能貨幣。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.6 Foreign currency translation (continued) (b) Transactions and balances

2.6 外幣換算(續)

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at the year-end exchange rates of monetary assets and liabilities denominated in foreign currencies at year-end exchange rates are recognised in the consolidated statement of profit or loss.

Foreign exchange gains and losses that relate to borrowings and financial liability at fair value through profit or loss are presented in the consolidated statement of profit or loss, within "finance costs, net". All other foreign exchange gains and losses are presented in the consolidated statement of profit or loss on a net basis.

Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair values are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognised in the consolidated statement of profit or loss as part of the fair value gain or loss.

(b) 交易及結餘

外幣交易按交易當日適用之匯 率或重新計量項目之估值換算 為功能貨幣。因結算交易及按 年末匯率換算以外幣列值的貨 幣資產及負債產生的外匯收益 及虧損均於綜合損益表確認。

與借貸及按公平值計入損益之 金融負債有關之外匯收益及 虧損於綜合損益表之「財務成 本,淨額」內呈列。所有其他外 匯收益及虧損於綜合損益表之 內按淨額呈列。

按公平值計量並以外幣計值之 非貨幣項目使用釐定公平值當 日之匯率換算。按公平值列賬 之匯兌差額呈報為公平值損益 之一部分。例如,非金融資產 及負債,如經損益表以公平值 計量且其變化計入損益的持有 之股權於綜合損益表中確認為 公平值收益或虧損之一部份。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

• 2.6 Foreign currency translation (continued)
• (c) Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

• (i) assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that end of the reporting period;
• (ii) income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions); and
• (iii) all resulting currency translation differences are recognised in other comprehensive income.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities, and of borrowings, are recognised in other comprehensive income. When a foreign operation is sold or any borrowings forming part of the net investment are repaid, the associated exchange differences are reclassified to the consolidated statement of profit or loss, as part of the gain or loss on sale.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.

2.6 外幣換算(續) (c) 集團公司

功能貨幣與呈報貨幣不相同 的海外業務(全部均非高通脹 經濟的貨幣)的業績及財務狀 況,按以下方式換算為呈報貨 幣:

• (i) 每財務狀況表期末所呈 列資產及負債,均按報告 期末的收市匯率換算;
• (ii) 各收益表之收入及支 出,按平均匯率換算,惟 此平均值並非該等交易 日期當時匯率具累積效 果之合理約數除外。在此 情況下,收入及開支於交 易日期換算;及
• (iii) 所得出之所有匯兌差額 會在其他全面收益中確 認。

於編製綜合賬目時,換算海外 實體任何投資淨額以及借款產 生之匯兌差額均於其他全面收 益確認。當出售海外業務或償 還構成該投資淨額部分之任何 借款,相關匯兌差額於綜合損 益表重新歸類為出售之部分收 益或虧損。

收購海外實體產生之商譽及公 平值調整視為該海外實體之資 產及負債,按收巿匯率換算。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.7 Property, plant and equipment

Leasehold land and buildings are recognised at fair value based on periodic valuation by external independent valuers, less subsequent depreciation. All other property, plant and equipment are stated at historical cost less depreciation and impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the consolidated statement of profit or loss during the financial period in which they are incurred.

Increases in the carrying amounts arising on revaluation of leasehold land and buildings are recognised, net of tax, in other comprehensive income and accumulated in property revaluation reserve in shareholders' equity. To the extent that the increase reverses a decrease previously recognised in the consolidated statement of profit or loss, the increase is first recognised in the consolidated statement of profit or loss. Decreases that reverse previous increases of the same asset are first recognised in other comprehensive income to the extent of the remaining surplus attributable to the asset; all other decreases are charged to the consolidated statement of profit or loss.

Depreciation of property, plant and equipment is calculated using the straight-line method to allocate cost or revalued amounts net of their residual values at the following rates per annum:

2.7 物業、廠房及設備

租賃土地及樓宇按外部獨立估值師 的定期估值公平值確認,減去後續 折舊。所有其他物業、廠房及設備 按歷史成本減折舊及減值虧損入 賬。歷史成本包括收購此等項目直 接應佔開支。

當與項目有關的未來經濟利益可 能流入本集團,以及項目成本能可 靠計算時,其後成本才會計入資產 的賬面值或確認為獨立資產(如適 用)。已替換部份的賬面值被終止確 認。所有其他維修及保養費於產生 的財政期間計入綜合損益表。

租賃土地及樓宇所產生的重估增值 均確認為(扣除稅項)其他全面收益 及於股東權益的物業重估儲備中累 計。惟若其沖銷先前同一資產已於 綜合損益表確認之重估減值,則該 增值按先前所扣除之減值計入綜合 損益表。重估減值先沖銷先前同一 資產已於其他全面收益確認之重估 增值,並超出先前重估該物業重估 儲備之結餘時計入盈虧;所有其他 減少額均計入綜合損益表。每年, 根據資產重估賬面金額計算之折舊 差額計入綜合損益表。

物業、廠房及設備之折舊以直線法 於其估計可用年期內分配其成本至 剩餘價值。所採用年率如下:

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.7 Property, plant and equipment (continued)

Leasehold land and buildings 2%-4%, or over the term of the leases, whichever is shorter Leasehold improvements 18%-20%, or over the term of the leases, whichever is shorter Plant and machinery 4%-20% Furniture fixture and equipment 9%-20% Motor vehicles 11%-20%

The assets' residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

An asset's carrying amount is written down immediately to its recoverable amount if the asset's carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount. These are included in the consolidated statement of profit or loss. When revalued assets are sold, it is the Group's policy to transfer any amounts included in property revaluation reserve in respect of those assets to accumulated losses.

Construction-in-progress represents buildings and plant and machinery under construction and pending installation, and is stated at cost less impairment losses. Costs comprises direct construction costs, the cost of plant and machinery and applicable borrowing costs incurred during the construction period. No provision for depreciation is made on constructionin-progress until such time as the relevant assets are completed and ready for intended use. When the assets concerned are brought into use, the costs are transferred to other property, plant and equipment and depreciated in accordance with the policy as stated above.

2.7 物業、廠房及設備(續)

租賃土地及	2%-4%,或按租賃年
樓宇	期(以較低者為準)
租賃物業	18%-20%,或按租賃
裝修	年期(以較低者
	為準)
廠房及機器	4%-20%
辦公室傢俱	9%-20%
及設備
汽車	11%-20%

資產之剩餘價值及可用年期會於各 報告期末審閱及調整(如適用)。

倘資產賬面值超過其估計可收回金 額,則其賬面值將即時撇減至其可 收回金額。

出售收益及虧損透過比較所得款項 與有關資產賬面值釐定並包括在綜 合損益表中。出售重估資產時,本 集團的政策是將有關該等資產的物 業重估儲備所包括的任何金額轉撥 至累計虧損。

在建工程指在建或待安裝的樓宇、 廠房及機器,並按成本值扣除減值 虧 損 列 賬。成 本 包 括 直 接 建 造 成 本、廠房及機械成本及建造期間產 生的適用借貸成本。在相關資產完 工並且可以使用前,不計入在建工 程 的 折 舊。當 有 關 資 產 投 入 使 用 時,成本轉移到其他物業、廠房和 設備,並按照上述政策折舊。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.8 Investment properties

Investment properties are held for long-term rental yields and are not occupied by the Group. Investment property is initially measured at cost, including related transaction costs and where applicable borrowing costs. Subsequently, they are carried at fair value. Changes in fair values are presented in the consolidated statement of profit or loss.

2.9 Goodwill

Goodwill on acquisitions of subsidiaries is included in intangible assets. Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal management purposes, being the operating segments.

2.8 投資物業

投資物業為長期租金收益而持有, 並非由本集團佔用。投資物業初步 按成本計量,包括相關交易成本及 適用的借貸成本。隨後,它們以公 平值列賬。公平值變動於綜合損益 表呈列。

2.9 商譽

收購附屬公司之商譽計入無形資 產。商譽不予攤銷,惟每年進行減 值測試,或當有事件或情況改變顯 示資產有可能減值時作出更頻密的 減值測試,並按成本見累計減值虧 損列賬。出售實體之收益或虧損包 括與出售實體相關商譽之賬面值。

商譽乃分配至各現金產生單位,以 進行減值測試。現金產生單位或現 金產生單位組別預期將從產生商譽 的業務合併中獲益,方會獲得分配 商譽。按監察商譽以作內部管理用 途的最低層面(即經營分類)識別單 位或單位組別。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.10 Impairment of non-financial assets

Goodwill that have an indefinite useful life are not subject to amortisation and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Assets that are subject to amortisation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Nonfinancial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

2.11 Discontinued operation

A discontinued operation is a component of the entity that has been disposed of or is classified as held for sale and that represents a separate major line of business or geographical area of operations, is part of a single co-ordinated plan to dispose of such a line of business or area of operations, or is a subsidiary acquired exclusively with a view to resale. The result of discontinued operation is presented separately in the consolidated statement of profit or loss.

2.10 非金融資產之減值

商譽沒有確定可使用年期而毋須攤 銷並會每年進行減值測試,或於有 事件或情況改變顯示可能出現減值 時更頻繁地進行減值測試。倘有事 件或情況改變顯示賬面值可能無 法收回時,我們將檢討資產的減值 情況。減值虧損按資產賬面值超過 其可收回金額的差額確認。可收回 金額為資產公平值減出售成本或使 用價值(以較高者為準)。評估減值 時,資產按可獨立識別現金流入的 最低分類組合(現金產生單位)分 類,其所產生的現金流入基本上獨 立於其他資產或資產組別。倘非金 融資產(商譽除外)出現減值,則會 於各報告日檢討可否撥回減值。

2.11 已終止經營業務

已終止經營業務為已出售或分類為 持作出售及代表一項按業務或地區 劃分的獨立主要業務的實體的組成 部份,為出售按業務或地區劃分的 該業務的單一統籌計劃的一部份, 或是一家專為轉售目的而收購的附 屬公司。已終止經營業務的業績於 綜合損益表中單獨呈列。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2.12 Investments and other financial assets

(a) Classification

The Group classifies its financial assets in the following measurement categories:

• those to be measured subsequently at fair value, and
• those to be measured at amortised cost.

The classification depends on the entity's business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will be recorded in the consolidated statement of profit or loss.

The Group reclassifies debt investments when and only when its business model for managing those assets changes.

(b) Recognition and derecognition

Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognised when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership.

2 重大會計政策概要(續)

2.12 投資和其他金融資產 (a) 分類

本集團將其金融資產分類為以 下計量類別:

• ‧ 隨後以公平值計量,和
• ‧ 隨後以攤銷成本計量。

分類取決於公司管理金融資產 的業務模式和現金流量的合同 條款。

就按公平值計量的資產而言, 收益及虧損將記錄於綜合損益 表。

當且僅當其管理這些資產的業 務模式發生變化時,本集團才 會對債務投資進行重新分類。

(b) 確認及終止確認

以日常方式買賣之金融資產於 交易日確認,交易日為本集團 承諾購買或出售資產之日。倘 收取投資現金流量之權利屆滿 或轉移且本集團已將所有權絕 大部分風險及所有回報轉移, 則終止確認金融資產。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.12 Investments and other financial assets (continued)

2.12 投資和其他金融資產(續)

(c) 計量

就所有並非按公平值計入損益 之金融資產而言,投資初步按 公平值加直接歸屬於收購該金 融資產交易成本確認。以公平 值計量且其變動計入損益的金 融資產的交易成本計入綜合損 益表。

債務工具的隨後計量取決於本 集團管理資產的業務模式及資 產的現金流量特徵。本集團將 其所有債務工具分類為攤銷成 本。

為收取合同現金流而持有的資 產,如果這些現金流僅代表本 金和利息的支付,則按攤銷成 本計量。這些金融資產的利息 收入採用實際利率法計入財務 收入,終止確認產生的任何收 益或虧損直接於綜合損益表確 認。減值虧損於綜合損益表中 以獨立項目列示。

(c) Measurement

At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the consolidated statement of profit or loss.

Debt instruments

Subsequent measurement of debt instruments depends on the Group's business model for managing the asset and the cash flow characteristics of the asset. The Group classifies all of its debt instruments at amortised cost.

Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortised cost. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognised directly in the consolidated statement of profit or loss. Impairment losses are presented as separate line item in the consolidated statement of profit or loss.

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

The Group assesses on a forward-looking basis the expected credit losses associated with its debt instruments carried at amortised cost. The impairment methodology applied depends on whether there has been a

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

(d) Impairment

2 重大會計政策概要(續)

2.12 Investments and other financial assets (continued)

significant increase in credit risk.

2.12 投資和其他金融資產(續)

(d) 減值

本集團按預期基準評估與按攤 銷成本列賬的債務工具相關的 預期信貸虧損。所採用的減值 方法取決於信貸風險是否顯著 增加。

For trade receivables, the Group applies the simplified approach permitted by HKFRS 9, which requires expected lifetime losses to be recognised from initial recognition of the receivables, see Note 3.1(b)(ii) for further details.

2.13 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the consolidated statement of financial position when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the company or the counterparty.

就應收賬款及應收票據而言, 本集團採用香港財務報告準則 第9號所容許的簡化方法,該 方法規定預期全期虧損將於初 步確認應收款項時確認,進一 步資料見附註3.1(b)(ii)。

2.13 金融工具抵銷

倘若存在法定可執行的權利以抵銷 所確認金額及擬按淨額基準結算或 變現資產及同時結算負債,則金融 資產與負債相互抵銷,而淨額於綜 合財務狀況表內呈報。法定可執行 權利必須不得依賴未來事件而定, 而在一般業務過程中以及倘本公司 或對手方一旦出現違約、無償債能 力或破產時,這也必須具有約束力。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.14 Inventories

Raw materials, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale.

2.15 Trade receivables, bills receivable and other receivables

Trade receivables and bills receivable are amounts due from customers for goods sold or services performed in the ordinary course of business.

If collection of trade receivables, bills receivable and other receivables is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

Trade receivables, bills receivable and other receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The Group holds the trade receivables, bills receivable and other receivables with the objective of collecting the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method.

2.14 存貨

原材料、在製品和製成品以成本值 及可變現淨值兩者中較低者列賬, 成本包括直接材料、直接人工和適 當比例的可變和固定間接費用,後 者根據正常運營能力進行分配。成 本根據加權平均成本分配給各個庫 存項目。購買庫存的成本在扣除回 扣和折扣後確定。可變現淨值為日 常業務過程中的估計售價減去估計 完工成本及進行銷售所需的估計成 本。

2.15 應收賬款、應收票據及其他應收 款

應收賬款及應收票據乃於日常業務 過程中就銷售商品或提供服務而應 收客戶之款項。

倘應收賬款、應收票據及其他應收 款預計將在一年或以內收回(或在 業務正常經營週期內之較長期間), 則分類為流動資產。否則,在非流 動資產中列報。

應收賬款及應收票據初步按無條 件代價金額確認,除非其包含重大 融資成份以公平值確認。本集團持 有應收賬款、應收票據及其他應收 款,目的是收取合約現金流量,因 此,其後採用實際利率法按攤餘成 本計量。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.16 Cash and cash equivalents

For the purpose of presentation in the consolidated statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

2.17 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Where any group company purchases the Company's equity instruments, for example as the result of a share buy-back or a share-based payment plan, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners of the Company as treasury shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the owners of the Company.

2.18 Trade and bills payables and other payables

Trade and bills payables and other payables represent liabilities for goods and services provided to the Group prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and bills and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

2.16 現金及現金等值項目

為了在綜合現金流量表中列報,現 金及現金等價物包括庫存現金、金 融機構通知存款、原有期限為三個 月或以下且可隨時轉換為已知金額 並且價值變動的風險很小的其他短 期,高流動性投資。

2.17 股本

普通股分類為權益。發行新股份或 購股權直接有關之增量成本於權益 列示為自所得款項扣除稅項之扣減。

當任何集團公司購買本公司的權益 工具,例如由於股票回購或以股份 為基礎支付計劃,則應支付的對價 (包括任何直接有關之增量成本(扣 除所得稅))將從股東應佔權益中 扣除直到公司股票被註銷或重新發 行為止,作為公司的庫存分配給公 司股東。倘該等普通股其後重新發 行,則所收取的代價(扣除任何直接 有關之增量成本及相關所得稅影響 後)均計入本公司擁有人應佔權益。

2.18 應付賬款及票據及其他應付款

應付賬款和票據以及其他應付款是 在財政年度末之前向集團提供的 商品和服務的未償債務。該金額是 無抵押的,通常在確認後30天內支 付。應付賬款及票據及其他應付款 在流動負債中列報,除非於報告期 後十二個月內未到期付款。應付賬 款及票據及其他應付款初步按公平 值確認,其後利用實際利率法按攤 銷成本計量。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.19 Borrowings

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in the consolidated statement of profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.

Borrowings are removed from the consolidated statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in the consolidated statement of profit or loss as "finance costs, net".

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

2.19 借貸

借貸初步以公平值(經扣除所產生 的交易成本)確認。借貸隨後按攤銷 成本計量。所得款項(經扣除交易成 本)與贖回金額之間的任何差額,乃 於借貸期間在綜合損益表內以實際 利率法確認。在貸款融資將可能部 分或全部被提取的情況下,就設立 貸款融資而支付的費用乃確認為貸 款交易成本。在此情況下,該費用 將被遞延,直至提取貸款時為止。 在並無證據表明其將可能部分或全 部被提取的情況下,該費用會作為 流動資金服務的預付款項被撥充資 本,並於其相關融資期間內予以攤 銷。

當合約中規定的責任獲解除、取消 或屆滿時,會將借貸從綜合財務狀 況表中移除。已消除或轉移至另一 方的金融負債的賬面值與已付代價 (包括所轉讓的非現金資產或所承 擔的負債)之間的差額,乃於綜合損 益表內確認為「財務成本,淨額」。

除非本集團有無條件權利,將償付 負債遞延至報告期後至少12個月, 否則借貸會被分類為流動負債。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.20 Borrowing costs

General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying assets are assets that necessarily take a substantial period of time to get ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

Other borrowing costs are expensed in the period in which they are incurred.

2.21 Financial liability at fair value through profit or loss

The Group has convertible bonds which are classified entirely as liabilities because they were issued in a currency other than the functional currency of the Company. As the instrument contains an embedded derivative, it has been designated as at fair value through profit or loss on initial recognition and as such the embedded conversion feature is not separated. All transaction costs related to financial instruments designated as at fair value through profit or loss are expensed as incurred.

Subsequent to initial recognition, the convertible bonds are carried at fair value with changes in fair value recognised in the consolidated statement of profit or loss, except for the gains or losses arising from the Group's own credit risk which are presented in other comprehensive income with no subsequent reclassification to the consolidated statement of profit or loss.

2 重大會計政策概要(續)

2.20 借貸成本

直接歸屬於購買,建造或生產合格 資產的一般和特定借貸成本在完成 和準備資產用於其預定用途或銷售 所需的時間段內資本化。合格資產 是必須花費相當長的一段時間才能 為其預期用途或銷售做好準備的資 產。

而將該借貸用於合資格資產前所作 短期投資賺取之投資收入,乃自可 用作資本化之借貸成本中扣除。

其他借貸成本於產生期間計入費用。

2.21 按公平值計入損益之金融負債

由於本集團持有可換股債券以本公 司功能貨幣以外的貨幣發行,因此 全部被分類為負債。由於該工具包 含嵌入式衍生工具,因此已在初步 確認時指定為按公平值計入損益, 嵌入式轉換功能未被分離。與指定 為按公平值計入損益的金融工具相 關的所有交易成本均於產生期間計 入費用。

初步確認後,可換股債券以公平值 列賬,並在綜合損益表中確認公平 值的變動,本集團因自身信貸風險 產生的收益或虧損除外,這些收益 或虧損於其他全面收益中呈列,而 其後並無重新分類至綜合損益表。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.22 Current and deferred income tax

The income tax expense or credit for the period is the tax payable or recoverable on the current period's taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

(a) Current income tax

The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty.

2.22 當期及遞延所得稅

本期間的所得稅費用或減免是按當 期應納稅所得額計算的應納稅所得 額,是根據各個司法管轄區的適用 所得稅率,按遞延稅項資產及負債 因暫時性差異和未使用稅項虧損的 變動調整。

(a) 當期所得稅

當期所得稅支出根據本公司及 其附屬公司營運及產生應課稅 收入的國家於結算日已頒佈 或實質頒佈的稅務法例計算。 管理層就適用稅務法例詮釋所 規限的情況定期評估報稅表狀 況,並考慮稅務機構是否有可 能接受不確定的稅收待遇。本 集團根據最可能的金額或預期 價值計量其稅收結餘,具體取 決於哪種方法可以更好地預測 不確定性的解決方法。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.22 Current and deferred income tax (continued)

2.22 當期及遞延所得稅(續)

(b) 遞延所得稅

遞延所得稅乃就資產與負債之 稅基及資產與負債於綜合財 務報表中賬面值兩者之暫時 差額,以負債法悉數撥備。然 而,倘遞延稅項負債乃產生自 商譽之初始確認,則不會確認 遞延稅項負債。倘遞延所得稅 乃產生自於初步確認交易(業 務合併除外)資產或負債而得 之商譽,且當時之交易並無影 響會計或應課稅溢利或虧損, 則亦不會予以確認。遞延所得 稅乃以於結算日已訂明或實質 訂明之稅率(及法例)釐定,並 預期於變現相關遞延所得稅資 產或償還遞延所得稅負債時適 用。

就公平值模式計量投資物業之 遞延稅項負債,投資物業之賬 面值乃假定為透過銷售全部收 回。

遞延稅項資產僅在未來很可能 有應課稅利潤用作抵銷該等 暫時差額及虧損,方會予以確 認。

(b) Deferred income tax

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

The deferred tax liability in relation to investment property that is measured at fair value is determined assuming the property will be recovered entirely through sale.

Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.22 Current and deferred income tax (continued)

2.22 當期及遞延所得稅(續)

(b) 遞延所得稅(續)

倘本集團能夠控制撥回暫時差 額之時間,且該等差額可能不 會於可見將來撥回,則不會就 海外業務之投資賬面值與稅基 之間之暫時差額確認遞延稅項 負債及資產。

倘有法定可執行權利將當期稅 項資產與負債相互抵銷而遞延 稅項結餘涉及同一稅務機構, 則遞延稅項資產與負債可予相 互抵銷。倘有關實體有法定可 執行權利可抵銷及有意按淨值 基準結算,或有意同時變現資 產及結算負債,則當期稅項資 產及負債可相互抵銷。

當期及遞延稅項於綜合損益表 內確認,惟倘其與在其他全面 收益中或直接於權益中確認之 項目相關,則當期及遞延稅項 亦分別於其他全面收益或直接 於權益中確認。

(b) Deferred income tax (continued)

Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of the temporary differences and it is probable that the differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Current and deferred tax is recognised in the consolidated statement of profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

(a) Short-term obligations

2.23 Employee benefits

Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the consolidated statement of financial position.

(b) Post-employment obligations

The Group operates a defined contribution Mandatory Provident Fund retirement benefits scheme (the "Pension Scheme") set up pursuant to the Mandatory Provident Fund Schemes Ordinance, for all of its employees in Hong Kong. Contributions are made based on a percentage of the employees' basic salaries and are charged to the consolidated statement of profit or loss as they become payable in accordance with the rules of the Pension Scheme. The assets of the Pension Scheme are held separately from those of the Group in an independently administrated fund. The Group's employer contributions vest fully with the employees when contributed to the Pension Scheme, except for the Group's employer voluntary contributions, which are refunded to the Group when the employee leaves employment prior to vesting fully in the contributions, in accordance with the rules of the Pension Scheme.

2.23 僱員福利

(a) 短期責任

工資和薪金的負債,包括非貨 幣福利、年假和累積病假,預 計將在僱員提供相關服務期間 結束後的12個月內全部結清, 並確認為僱員服務截至報告 期末並按負債結算時預期支付 的金額計量。負債於綜合財務 狀況表呈列為現時僱員福利責 任。

(b) 退休金責任

本集團為其所有香港僱員運作 一個根據強制性公積金計劃條 例設立之定額供款強制性公 積金退休福利計劃(「退休計 劃」)。供款按僱員基本薪金之 某個百分比計算,並於根據退 休計劃規則應支付供款時在綜 合損益表扣除。退休計劃之資 產與本集團資產分開持有,並 由獨立管理基金保管。本集團 之僱主供款在向退休計劃作出 供款時悉數歸屬僱員,惟本集 團作出之僱主自願供款,會按 照退休計劃之規則在僱員於有 關供款全數歸屬前離職時退回 本集團。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.23 Employee benefits (continued)

2 重大會計政策概要(續)

(b) Post-employment obligations (continued)

The Group has no further payment obligations once the contributions have been paid. The contributions are recognised as an employee benefit expense when they are due and are reduced by contributions forfeited by those employees who leave the scheme prior to vesting fully in the contributions. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.

In addition, pursuant to the government regulations in the People's Republic of China (the "PRC"), the Group is required to contribute an amount to certain retirement benefit schemes based on approximately 5% to 21% of the wages for the year of those employees in the PRC. The local municipal government undertakes to assume the retirement benefits obligations of those employees of the Group. Contributions to these retirement benefits schemes are charged to the consolidated statement of profit or loss as incurred.

(c) Profit-sharing and bonus plans

The Group recognises a liability and an expense for bonuses and profit-sharing based on a formula that takes into consideration the profit attributable to the Company's shareholders after certain adjustments. The Group recognises a provision where contractually obliged or where there is a past practice that has created a constructive obligation.

2.23 僱員福利(續) (b) 退休金責任(續)

本集團於支付供款後即無其他 付款責任。供款於到期時確認 為僱員福利支出,並扣減僱員 於供款全數歸屬前離職而被沒 收之供款。預付供款於退回現 金或扣減未來供款時確認為資 產。

此 外,根 據 中 華 人 民 共 和 國 (「中國」)政府之規例,本集團 須按中國僱員該年度之工資約 5%至21%就若干退休福利計 劃作出供款,由當地市政府承 擔該等本集團僱員之退休福利 責任。就該等退休福利計劃作 出之供款於產生時計入綜合損 益表。

(c) 溢利分享及花紅計劃

本集團按照特定計算方法就花 紅及溢利分享確認負債及開 支,該計算方法於作出若干調 整後已計入本公司股東應佔溢 利。當出現合約責任或過往慣 例引致推定責任時,本集團即 確認撥備。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.24 Share-based payments

The Group operates an equity-settled sharebased compensation plan, under which the entity receives services from employees as consideration for share options of the Group. The fair value of the employee services received in exchange for the grant of options is recognised as an expense with a corresponding increase in equity. The total amount to be expensed is determined by reference to the fair value of the options granted:

• including any market performance conditions;
• excluding the impact of any service and nonmarket performance vesting conditions (for example, remaining an employee of the entity over a specified time period); and
• including the impact of any non-vesting conditions.

The total expense is recognised over the vesting period which is the period over which all of the specified vesting conditions are to be satisfied. At the end of each reporting period, the Group revises its estimates of the number of options that are expected to vest based on the nonmarketing performance and service conditions. It recognises the impact of the revision to original estimates, if any, in the consolidated statement of profit or loss, with a corresponding adjustment to equity.

When the options are exercised, the Company issues new shares. The proceeds received net of any directly attributable transaction costs are credited to share capital (nominal value) and share premium.

2.24 以股份為基礎支付

• 本集團推行一項按股本結算、以股 份為基礎支付酬金的計劃,據此, 實體從其僱員獲得服務作為換取本 集團權益工具(購股權)的代價。為 換取授出購股權而獲得僱員服務的 公平值乃確認為開支,並相應增加 權益。列作開支的總金額,乃參照 已授出的購股權的公平值釐定:
• ‧ 包括任何市場表現情況;
• ‧ 不包括任何服務及非市場表現 歸屬條件(例如有關人士於一 段特定期間內是否仍為該實體 的僱員)的影響;及
• ‧ 包括任何非歸屬條件的影響。

總開支於歸屬期內確認,其為將全 部特定歸屬條件將滿足的期間。於 各報告期間結算日,本集團會修訂 其對根據非市場表現及服務條件預 期將歸屬的購股權數目的估計。其 於綜合損益表確認對原來估計作出 修訂的影響(如有),並在權益作出 相應調整。

於購股權獲行使時,本公司發行新 股份。已收所得款項於減去所有直 接應佔交易成本後撥入股本(面值) 及股份溢價。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.25 Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

2.26 Revenue recognition

Revenue is recognised when or as the control of the good or service is transferred to the customer. Depending on the terms of the contract and the laws that apply to the contract, control of the good or service may be transferred over time or at a point in time.

2.25 撥備

當本集團因過往事件承擔現有法律 或推定責任,而解除責任很有可能 導致資源流出,且金額能夠可靠計 算的情況下,便會確認撥備。

倘承擔若干類似責任,於釐定解除 責任是否導致資源流出時,將以整 類責任類別為考慮。即使同類責任 當中任何一項導致資源流出可能性 甚低,亦會確認撥備。

撥備按管理層於報告期末結算現時 責任所需支出之最佳估計的現值計 量,用於確定現值之貼現率是稅前 利率,該利率反映當時市場對金錢 時間值和有關責任固有風險的評 估。隨著時間過去而增加的撥備確 認為利息開支。

2.26 收入確認

當商品或服務的控制權轉移給客戶 時確認收入。根據合同條款和適用 於合同的法律,商品或服務的控制 可以隨時間或在某個時間點進行轉 移。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.26 Revenue recognition (continued)

Control of the good or service is transferred over time if the Group's performance:

• provides all of the benefits received and consumed simultaneously by the customer;
• creates or enhances an asset that the customer controls as the Group performs; or
• does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date.

If control of the goods or services transfers over time, revenue is recognised over the period of the contract by reference to the progress towards complete satisfaction of that performance obligation. Otherwise, revenue is recognised at a point in time when the customer obtains control of the goods or service.

The Group manufactures and sells steel cords. Revenue is recognised when the control of the products are transferred to the customers at a point in time, when products are delivered to the customers, and there is no unfulfilled obligation that could affect the customers' acceptance of the products. Delivery occurs when the products have been shipped to the specified location, the risks of obsolescence and loss have been transferred to the customers, and either the customers have accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Group has objective evidence that all criteria for acceptance have been satisfied. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

2 重大會計政策概要(續)

2.26 收入確認(續)

商品或服務的控制隨時間進行轉移 如果集團的執行:

• ‧ 提供所有好處同時收到客戶的 付費;
• ‧ 集團執行創建或增強客戶控制 的資產;或
• ‧ 不會創建具本集團其他用途的 資產及集團擁有可執行的支付 權利,以履行迄今為止已完成 的執行。

如果對貨物或服務的控制隨著時間 的推移而轉移,收入在合同期內通 過參考完全履行該履約責任的進度 確認。否則,收入在客戶獲得對貨 物或服務的控制的時間點被確認。

本集團製造及銷售鋼簾線。當產品 的所有權轉移給客戶,產品交付給 客戶,客戶對銷售產品管道和價格 有完全的處理權,並且本集團沒有 未履行的義務而會影響客戶對產品 的接受程度時即可確認收入。當產 品已運至指定地點時,報廢和損失 的風險已轉移給客戶及客戶已按照 銷售合同接受產品,驗收規定已失 效,或本集團有客觀證據表明所有 驗收標準均已滿足。應收賬款在貨 物交付時是無條件的確認,因為在 付款到期之前只需要經過一段時間。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2.27 Earnings per share

2 重大會計政策概要(續)

(i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the company, excluding any costs of servicing equity other than ordinary shares
• by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the year.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after-income tax effect of interest and other financing costs associated with dilutive potential ordinary shares, and
• the weighted average number of additional ordinary shares that would have been outstanding assuming the conversion of all dilutive potential ordinary shares.

2.28 Interest income

Interest income is recognised on a time-proportion basis using the effective interest method.

2.29 Leases

Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for use by the Group.

2.27 每股盈利

(i) 每股基本盈利

每股基本盈利之計算方法為:

• ‧ 歸屬於本公司擁有人之 溢利,不包括普通股以外 之任何支付權益成本
• ‧ 除以於財政年度內已發 行普通股之加權平均 數,並就年內發行之普通 股之紅利元素作出調整。

(ii) 每股攤薄盈利

每股攤薄盈利調整釐定每股基 本盈利時所使用之數字,以計 及:

• ‧ 與潛在攤薄普通股有關 之利息及其他融資成本 之除所得稅後影響,及
• ‧ 假設所有潛在攤薄普通 股獲轉換,則將為已發行 之額外普通股加權平均 數。

2.28 利息收入

利息收入以實際利率法按時間比例 確認。

2.29 租約

本集團在租賃資產可供其使用的當 日將租賃確認為資產使用權和相應 的負債。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.29 Leases (continued)

Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices. However, for leases of real estate for which the Group is a lessee, it has elected not to separate lease and non-lease components and instead accounts for these as a single lease component.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the fixed payments (including in-substance fixed payments), less any lease incentives receivable.

Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.

2.29 租約(續)

合約可能同時包含租賃和非租賃部 分。本集團根據相對獨立價格將合 同中的代價分配給租賃和非租賃部 分。但是,對於本集團作為承租人 的房地產租賃,選擇不將租賃和非 租賃部分分開,而是將其作為一個 單獨的租賃部分進行會計處理。

租賃期限應在每項租賃的基礎上進 行商談,並可能包含不同的條款和 條件。租賃協議不應包含出租人持 有的租賃資產的擔保利息之外的任 何契約。租賃資產不得用作借款擔 保。

租賃產生的資產和負債按現值進 行初始計量。租賃負債包括固定付 款額的淨現值(包括實質固定付款 額),扣除任何應收的租賃激勵。

當本集團合理確定將行使續租選擇 權時,租賃付款額也納入負債的計 量中。

租賃付款額按租賃內含利率折現。 本集團的租賃內含利率通常無法直 接確定,在此情況下,應採用承租 人的增量借款利率,即承租人在類 似經濟環境下獲得與資產使用權價 值接近的資產,在類似期間以類似 抵押條件借入資金而必須支付的利 率。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2 重大會計政策概要(續)

2.29 Leases (continued)

To determine the incremental borrowing rate, the Group:

• where possible, uses recent third-party financing received by the individual lessee as a starting point, adjusted to reflect changes in financing conditions since third party financing was received;
• uses a build-up approach that starts with a risk-free interest rate adjusted for credit risk for leases held by the landlord, which does not have recent third party financing; and
• makes adjustments specific to the lease, e.g. term, country, currency and security.

If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the group entities use that rate as a starting point to determine the incremental borrowing rate.

Lease payments are allocated between principal and finance costs. The finance costs are charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

2.29 租約(續)

為確定增量借款利率,本集團應:

• ‧ 在可能的情況下,以承租人最 近收到的融資為起點,並進行 調整以反映融資條件自融資後 的變化;
• ‧ 對於近期未獲得融資持有的租 賃,採用以無風險利率為起點 的累加法,並按照租賃的信用 風險進行調整;及
• ‧ 針對租賃做出特定調整,如租 賃期、國家、貨幣及抵押。

如果承租人可以使用可觀察到的攤 銷貸款利率(通過最近的融資或市 場數據),其租賃情況與租賃的付款 情況相似,則集團實體將以該利率 為起點來確定增量借款利率。

租賃付款額在本金和財務成本之間 進行分攤。財務成本在租賃期內計 入損益,以按照固定的週期性利率 對各期間負債餘額計算利息。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.29 Leases (continued)

2 重大會計政策概要(續)

Right-of-use assets are measured at cost comprising the following:

• the amount of the initial measurement of lease liability;
• any lease payments made at or before the commencement date less any lease incentives received;
• any initial direct costs; and
• restoration costs.

Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis. If the Group is reasonably certain to exercise a purchase option, the right-of-use asset is depreciated over the underlying asset's useful life. While the Group revalues its leasehold land and buildings that are presented within property, plant and equipment, it has chosen not to do so for the right-of-use buildings held by the Group.

Payments associated with leases of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Low-value assets comprise office equipment.

Lease income from operating leases where the Group is a lessor is recognised in income on a straight-line basis over the lease term (Note 16). Initial direct costs incurred in obtaining an operating lease are added to the carrying amount of the underlying asset and recognised as expense over the lease term on the same basis as lease income. The respective leased assets are included in the consolidated statement of financial position based on their nature. The Group did not need to make any adjustments to the accounting for assets held as lessor as a result of adopting the new leasing standard.

2.29 租約(續)

資產使用權按成本計量,包括:

• ‧ 租賃負債的初始計量金額;
• ‧ 在租賃期開始日或之前支付的 租賃付款額扣除收到的租賃激 勵;
• ‧ 初始直接費用;以及
• ‧ 復原成本。

資產使用權一般在資產的使用壽命 與租賃期兩者孰短的期間內按直線 法計提折舊。如本集團合理確定會 行使購買權,則在標的資產的使用 壽命期間內對資產使用權計提折 舊。本集團對列報為不動產、廠房 及設備的租賃土地和樓宇的價值進 行重估,但未選擇重估所持有的使 用權建築物的價值。

與低價值資產租賃相關的付款按直 線法於損益內確認為費用。低價值 資產包括辦公設備。

本集團作為出租人收到的經營租賃 收入在租賃期內按直線法確認為收 入(附註16)。為獲取經營租賃所發 生的初始直接費用計入標的資產的 帳面金額,並在租賃期內按照與租 賃收入相同的基礎確認為費用。租 賃資產按其性質在資產負債表中列 示。本集團採用了新的租賃準則, 因而無需對作為出租人持有的資產 的會計處理做出任何調整。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

2.30 Dividend distribution

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

2.31 Government grants

Grants from the government are recognised in "other income" in the consolidated statement of profit or loss at their fair value where there is a reasonable assurance that the grant will be received and the Group will comply with all attached conditions.

2.32 Research and development costs

Research costs and development costs are expensed as incurred. Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

3 FINANCIAL RISK MANAGEMENT 3.1 Financial risk factors

The Group's activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Group's financial performance.

2 重大會計政策概要(續)

2.30 股息分派

對於宣佈的任何經適當授權,不再 由實體酌情決定並在報告期結束時 或之前,但未在報告期末分發的股 息金額作撥備。

2.31 政府補貼

倘有合理保證可收到政府補貼而本 集團亦將會遵行所有附帶條件時, 該政府補貼將會按公平值於綜合損 益表「其他收入」確認。

2.32 研發費用

研發開支於產生時計入費用。過往 確認為費用之研發成本不會於往後 期間確認為資產。

3 財務風險管理

3.1 財務風險因素

本集團的活動使本集團承受多種財 務風險:市場風險(包括貨幣風險、 公平值利率風險、現金流利率風險 及價格風險)、信貸風險及流動資金 風險。本集團的整體風險管理計劃 針對金融市場的不可預測性,力求 將對本集團財務表現所造成的潛在 不利影響降至最低。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

• 3.1 Financial risk factors (continued)
• (a) Market risk
  • (i) Foreign exchange risk

The Group's foreign currency transactions are mainly denominated in RMB, HK\$, United States dollar ("US\$") and Euro ("EUR"). The majority of assets and liabilities are denominated in RMB, HK\$, US\$ and EUR, and there are no significant assets and liabilities denominated in other currencies. The Group is subject to foreign exchange rate risk arising from commercial transactions and recognised assets and liabilities denominating in a currency other than RMB and HK\$ which are the functional currencies of the major operating companies within the Group.

The exchange rate of RMB to HK\$ is subject to the rules and regulations of foreign exchange control promulgated by the PRC government. The Group manages its foreign currency risk by closely monitoring the movement of the foreign currency rates.

Under the Linked Exchange Rate System in Hong Kong, HK\$ is pegged to US\$, management therefore considers that there is no significant foreign exchange risk with respect to US\$ (2019: same).

3 財務風險管理(續) 3.1 財務風險因素(續) (a) 市場風險

(i) 外匯風險 本集團的外幣交易主要 以 人 民 幣、港 元、美 元 (「美元」)及 歐 元(「 歐

元」)計值。本集團的大部 分資產和負債主要以人 民幣、港元、美元及歐元 計值,並無重大資產及負 債以其他貨幣計值。本集 團面對並非以人民幣及 港元(本集團旗下主要營 運公司的功能貨幣)計值 的未來商業交易及已確 認資產及負債所產生的 外匯風險。

人民幣兌港元的匯率須 遵守中國政府頒佈的外 匯管制規則及規例。本集 團透過密切監控外幣匯 率的變動來管控其外幣 風險。

根據香港聯繫匯率體 制,因港元與美元掛鈎, 所以管理層認為與美元 有關的外匯風險並不重 大(二零一九年:相同)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued) (a) Market risk (continued)

3 財務風險管理(續) 3.1 財務風險因素(續)

(a) 市場風險(續)

(i) 外匯風險(續)

• (i) Foreign exchange risk (continued)

As at 31 December 2020, if HK\$ had weakened/strengthened by 5% against RMB with all other variables held constant, post-tax profit for the year of the Group would have been HK\$3,122,000 lower/higher (2019: HK\$11,077,000 lower/higher), mainly as a result of the foreign exchange difference on translation of HK\$/RMB denominated bank balances and cash, trade receivables, other receivables, trade payables, other payables and accruals, financial liability at fair value through profit or loss and the current account with group companies.

於二零二零年十二月 三十一日,倘港元兌人 民幣貶值╱升值5%, 而所有其他可變因素維 持不變,本集團年內除 稅後溢利將減少╱增加 港 幣3,122,000元(二零 一九年:減少╱增加港 幣11,077,000元 ),主要 由於換算以港元╱人民 幣為單位的銀行結存及 現金、應收賬款、其他應 收款、應付賬款、其他應 付款及預提費用、按公平 值計入損益之金融負債 及集團公司往來賬目產 生外匯差異所致。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued)

3 財務風險管理(續)

• (a) Market risk (continued)
• (i) Foreign exchange risk (continued)

As at 31 December 2020, if US\$ had weakened/strengthened by 5% against RMB with all other variables held constant, post-tax profit for the year of the Group would have been HK\$5,238,000 higher/lower (2019: HK\$6,769,000 higher/lower), mainly as a result of the foreign exchange difference on translation of US\$ denominated bank balances and cash, trade receivables, other receivables, trade payables, other payables and accruals and the current account with group companies.

As at 31 December 2020, if EUR had weakened/strengthened by 5% against RMB with all other variables held constant, post-tax profit for the year of the Group would have been HK\$1,108,000 higher/lower (2019: HK\$901,000 lower/higher), mainly as a result of the foreign exchange difference on translation of EUR denominated bank balances and cash, trade receivables, other receivables, trade payables, other payables and accruals and bank borrowings.

3.1 財務風險因素(續) (a) 市場風險(續) (i) 外匯風險(續) 於二零二零年十二月

三十一日,倘美元兌人 民幣貶值╱升值5%, 而所有其他可變因素維 持不變,本集團年內除 稅後溢利將增加╱減少 港 幣5,238,000元(二零 一九年:增加╱減少港 幣6,769,000元),主要由 於換算以美元為單位的 銀行結存及現金、應收賬 款、其他應收款、應付賬 款、其他應付款及預提費 用及集團公司往來賬目 產生外匯差異所致。

於二零二零年十二月 三十一日,倘歐元兌人 民幣貶值╱升值5%, 而所有其他可變因素維 持不變,本集團年內除 稅後溢利將增加╱減少 港 幣1,108,000元(二零 一九年:減少╱增加港 幣901,000元 ),主要由 於換算以歐元為單位的 銀行結存及現金、應收賬 款、其他應收款、應付賬 款、其他應付款及預提費 及銀行貸款用產生外匯 差異所致。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued)

(a) Market risk (continued) (ii) Price risk

The Group is exposed to commodity price risk in relation to its steel products which is largely dependent on the market price of the relevant commodity. The Group closely monitors the price of its products in order to determine its pricing strategies.

(iii) Cash flow and fair value interest rate risk

The Group is exposed to fair value interest rate risk in relation to lease liabilities, bank borrowings and financial liability at fair value through profit or loss. The Group is also exposed to cash flow interest rate risk in relation to variable-rate bank balances.

The Group has not used financial derivatives to hedge against the interest rate risk. However, from time to time, if interest rate fluctuates significantly, appropriate measures would be taken to manage interest risk exposure.

As at 31 December 2020, if interest rate on financial liability at fair value through profit or loss had been 100 basis points lower/higher with all other variables held constant, post-tax profit for the year of the Group would have been approximately HK\$2,989,000 (2019: HK\$2,109,000) lower/higher.

Other than financial liability at fair value through profit or loss, the Group is not exposed to significant cash flow and fair value interest rate risk.

3 財務風險管理(續) 3.1 財務風險因素(續) (a) 市場風險(續) (ii) 價格風險

本集團面臨與其鋼鐵產 品有關的商品價格風 險,而這主要取決於相關 商品的市場價格。本集團 密切監察其產品價格,以 釐定其定價策略。

(iii) 現金流及公平值利率風

本集團因租賃負債、銀行 貸款及按公平值計入損 益之金融負債而承受公 平值利率風險,本集團亦 因浮息銀行結餘承受現 金流利率風險。

本集團並無使用金融衍 生工具對沖利率風險,但 是,有時如果利率波動很 大,將會採取適當的措施 管理利息風險。

於二零二零年十二月 三十一日,如按公平值計 入損益之金融負債的利 率減少╱增加100個利率 基點而所有其他變數維 持不變,則本集團年內除 稅後溢利將減少╱增加 港 幣2,989,000元(二零 一九年:2,109,000元)。

除按公平值計入損益之 金融負債外,本集團不會 承受重大的現金流和公 平值利率風險。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued)

(b) Credit risk

Credit risk arises from trade receivables, bills receivable, deposits and other receivables, pledged bank deposits and bank balances.

The carrying amounts of trade receivables (Note 23), bills receivable (Note 23), deposits and other receivables (Note 24), pledged bank deposits (Note 26(a)) and bank balances (Note 26(b)) represent the Group's maximum exposure to credit risk in relation to financial assets.

(i) Risk management

To manage this risk, deposits of the Group are mainly placed with stateowned financial institutions and reputable banks. The Group has policies in place to ensure that sales are made to reputable and creditworthy customers with an appropriate financial strength, credit history and an appropriate percentage of down payments. It also has other monitoring procedures to ensure that follow-up action is taken to recover overdue debts.

In addition, the Group reviews regularly the authorisation of credit limits to individual customers and recoverable amount of each individual trade receivables to ensure that adequate impairment losses are made for irrecoverable amounts.

3 財務風險管理(續) 3.1 財務風險因素(續)

(b) 信貸風險

信貸風險由來應收賬款、應收 票據、按金及其他應收款、已 抵押銀行存款及銀行結存中產 生。

應收賬款(附註23)、應收票據 (附註23)、按金及其他應收款 (附註24)、已抵押銀行存款 (附註26(a))及銀行結存及現金 (附註26(b))之賬面淨值乃本集 團所面對有關金融資產的最大 信貸風險。

(i) 風險管控

為管控該風險,本集團的 存款主要存入國有金融 機構及有良好信譽的銀 行。本集團已制定政策以 確保銷售予擁有相當財 政實力、信用歷史及支付 適當百分比首期付款的 信譽良好客戶,亦制定其 他監控程式以確保採取 跟進措施收回逾期債務。

此外,本集團定期審核個 人客戶的信用限額授權 及每項個別應收賬款的 可收回金額,以確保已就 不可收回款項計提充分 的減值虧損。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued) 3.1 Financial risk factors (continued)

(b) Credit risk (continued)

(i) Risk management (continued)

Sales of goods to the customers geographically located in PRC constituted 77.0% (2019: 74.8%) of the Group's revenue for the year ended 31 December 2020. They accounted for approximately 81.6% (2019: 85.4%) of the gross trade receivable balances as at 31 December 2020. Collections of outstanding receivable balances are closely monitored on an ongoing basis to minimise such credit risk.

(ii) Impairment of financial assets

Trade and bills receivables for sales of goods of the Group and from the provision of services are subject to the expected credit loss model.

Trade receivables and bills receivable

The Group applies the HKFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and bills receivable.

3 財務風險管理(續) 3.1 財務風險因素(續) (b) 信貸風險(續)

(i) 風險管控(續)

截至二零二零年十二月 三十一日止年度銷售的 貨物予中國客戶佔本集 團營業額77.0%(二零 一 九 年:74.8%)。於二 零一九年十二月三十一 日,其約佔應收賬款賬面 總額的81.6%(二零一九 年:85.4%)。持續密切 監控尚未償還應收結餘 的收回情況,務求將信貸 風險降至最低。

(ii) 金融資產減值

本集團存貨銷售及服務 提供的應收賬款及應收 票據須遵守預期信貸虧 損模式。

本集團採用香港財務報 告準則第9號簡化法計量 預期信貸虧損,並就所有 應收款項及應收票據使 用終身預期虧損撥備。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued) (b) Credit risk (continued)

(ii) Impairment of financial assets (continued)

For bills receivable, bills are issued by counterparties at reputable banks and the credit risk is considered to be low. Those counterparties do not have defaults in the past. Therefore, expected credit loss rate is assessed to be close to zero and no provision was made as at each of the end of reporting period.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and aging profile.

Management considers that full provision would be made for balances with known financial difficulties or those not responding to collection activities, while the expected credit loss rates of the remaining balances are determined based on historical credit losses experienced over the past 3 years and adjusted to reflect current and forwardlooking information including macroeconomic factors affecting the ability of the customers to settle the receivables.

Impairment losses on receivables are presented as "net impairment losses on financial assets" in the consolidated statement of profit or loss. When a receivable is uncollectible, it is written off against the allowance account for receivables. Subsequent recoveries of amounts previously written off are credited against the same line item.

3 財務風險管理(續) 3.1 財務風險因素(續) (b) 信貸風險(續) (ii) 金融資產減值(續)

對於應收票據,開票由知 名銀行的交易對手和信 貸風險被認為是低的。 那些對手在過去沒有違 約。因此,預期信用損失 率估計接近零,在期末沒 有進行撥備。

為了衡量預期的信用損 失,已根據共同的信貸風 險特徵和賬齡概況對應 收賬款進行了分組。

管理層認為,將為已知財 務困難的餘額或不回應 收款活動的餘額作全額 計提準備金,而剩餘餘額 的預期信用損失率是根 據過去三年中發生的歷 史信用損失確定的,並進 行了調整以反映當前及 前瞻性信息包括影響客 戶償付應收賬款能力的 宏觀經濟因素。

應收款項減值損失於綜 合損益表呈列為「金融資 產減值損失淨額」。當應 收款項無法收回時,將從 應收款項的備抵賬戶中 沖銷。之前已註銷的金額 的後續回收將記入同一 行項目。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued)

• (b) Credit risk (continued)
• (ii) Impairment of financial assets (continued)

The following table presents the gross carrying amount and the provision for impairment losses in respect of trade receivables:

3 財務風險管理(續) 3.1 財務風險因素(續) (b) 信貸風險(續) (ii) 金融資產減值(續)

下表呈列應收款項的賬 面總值與減值損失撥備:

		Lifetime expected credit loss rate 全期預計 信貸虧損率	Gross carrying amount 賬面總值 HK\$'000 港幣千元	Lifetime expected credit loss 全期預計 信貸虧損 HK\$'000 港幣千元	Net carrying amount 賬面淨值 HK\$'000 港幣千元
As at 31 December 2020	於二零二零年
	十二月三十一日
Aging category	賬齡組別
Within 1 year Over 1 year	一年內 超過一年	0.03% 100%	639,133 28,741	(217) (28,741)	638,916 –
			667,874	(28,958)	638,916
		Lifetime
		expected	Gross	Lifetime	Net
		credit	carrying	expected	carrying
		loss rate	amount	credit loss	amount
		全期預計		全期預計
		信貸虧損率	賬面總值	信貸虧損	賬面淨值
			HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元
As at 31 December 2019	於二零一九年 十二月三十一日
Aging category	賬齡組別
Within 1 year	一年內	0.01%	579,502	(59)	579,443
Over 1 year	超過一年	100%	21,315	(21,315)	–
			600,817	(21,374)	579,443

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3.1 Financial risk factors (continued) (b) Credit risk (continued)

3 財務風險管理(續)

(ii) Impairment of financial assets (continued) Deposits and other receivables, pledged bank deposits and bank balances

For deposits and other receivables, management makes periodic individual assessments on the recoverability of deposits and other receivables based on historical settlement records, past experience as well as forward looking factors. There has no recent history of default in relation to these counterparties. The expected credit loss is close to zero.

For pledged bank deposits and bank balances, there has no recent history of default in relation to those financial institutions and reputable banks. The expected credit loss is close to zero.

3.1 財務風險因素(續) (b) 信貸風險(續) (ii) 金融資產減值(續)

按金和其他應收款、已 抵押的銀行存款和銀行

對於按金和其他應收 款,管理層就按金和其 他應收款按歷史回收記 錄、過去經驗以及前瞻性 因素進行定期個人性評 估。這些的交易對手是沒 有違約的最近歷史。預期 信用損失接近零。

對於已抵押的銀行存款 和銀行結存,那些財務機 構和信譽良好的銀行是 沒有違約的最近歷史。這 預期信用損失接近零。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued) 3.1 Financial risk factors (continued)

(c) Liquidity risk

With prudent liquidity risk management, the Group aims to maintain sufficient cash and cash equivalents and ensure the availability of funding through an adequate amount of available financing, including long-term and short-term bank borrowings. Due to the dynamic nature of the underlying businesses, the Group's finance department maintains flexibility in funding by maintaining adequate amount of cash and cash equivalents and flexibility in funding through having available sources of financing.

Surplus cash held by the operating entities over and above the balance required for working capital management are transferred to interest-bearing bank deposits with appropriate maturities to manage its overall liquidity position. As at 31 December 2020, the Group maintained cash and cash equivalents of approximately HK\$93,262,000 (2019: HK\$47,811,000) that are expected to be readily available and sufficient to meet the cash outflows of its financial liabilities, hence, management considers that Group's exposure to liquidity risk is not significant.

As at 31 December 2020, the Group's total available banking facilities, amounted to approximately HK\$492,651,000 (2019: HK\$612,295,000), of which approximately HK\$492,460,000 (2019: HK\$610,702,000) has been utilised.

The table below analyses the Group's financial liabilities into relevant maturity groupings based on their contractual maturities for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying values as the impact of discounting is not significant.

3 財務風險管理(續) 3.1 財務風險因素(續) (c) 流動資金風險

透過審慎的流動資金風險管 理,本集團致力維持充足的現 金及現金等價值,及透過充足 融資金額(包括長期及短期銀 行借貸)取得資金。由於相關 業務的多變性質,本集團的融 資部門透過維持充足的現金及 現金等價值;及透過可動用融 資來源維持資金的靈活性。

經營實體所持有的現金超過 營運資金管理所需的餘額時, 會被撥入具有適當期限的計 息銀行存款以控制整體流 動 資 金 狀 況。於 二 零 二 零 年 十 二 月 三 十 一 日,本 集 團 持 有現金及現金等價值約港幣 93,262,000元(二零一九年: 港 幣47,811,000元 ),預期隨 時可動用並足夠滿足金融負債 的現金流出。因此,管理層認 為,本集團所承受的流動資金 風險並不重大。

於二零一九年十二月三十一 日,本 集 團 之 可 用 銀 行 融 資 總額約為港幣492,651,000 元( 二 零 一 九 年: 港 幣 612,295,000元),其中已動用 約港幣492,460,000元(二零 一九年:港幣610,702,000元)。

下表根據結算日餘下期間至合 約到期日的分析,將本集團的 非衍生金融負債分為有關到期 日組別。下表所披露的金額為 合約未貼現現金流量。由於折 現的影響不大,故於十二個月 內到期的結餘相等於其賬面 值。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued)

3 財務風險管理(續)

3.1 Financial risk factors (continued) (c) Liquidity risk (continued)

3.1 財務風險因素(續) (c) 流動資金風險(續)

		Weighted average effective interest rate 加權平均數 實際利率 % 百分比 (Note) (附註)	Less than 3 months 少於三個月 HK\$'000 港幣千元	4-6 months 四至六個月 HK\$'000 港幣千元	7-12 months 七至十二個月 HK\$'000 港幣千元	1 year 超過一年 HK\$'000 港幣千元	Total contractual Over undiscounted cash flows 總計未貼現 現金流量 HK\$'000 港幣千元
As at 31 December 2020	於二零二零年
	十二月三十一日
Trade, bills and other payables 應付賬款、應付票據及其他
Bank borrowings	應付賬款 銀行貸款	–	911,283	92,641	–	–	1,003,924
– fixed rate	-固定利率	4.01	115,598	133,056	255,975	–	504,629
Financial liability at fair value	按公平值計入損益之
through profit or loss Lease liabilities	金融負債 租賃負債	4.00 5.36	3,000 307	– 102	3,000 –	153,000 –	159,000 409
			1,030,188	225,799	258,975	153,000	1,667,962
As at 31 December 2019	於二零一九年
	十二月三十一日
Trade, bills and other payables 應付賬款、應付票據及其他
Loan from a related company	應付賬款	– 4.50	760,575 –	85,561 58,769	– –	– –	846,136 58,769
Bank borrowings	來自一間關連公司之貸款 銀行貸款
– fixed rate	-固定利率	4.24	198,718	137,173	79,455	210,760	626,106
Financial liability at fair value	按公平值計入損益之
through profit or loss	金融負債	4.00	3,000	–	3,000	159,000	165,000
Lease liabilities	租賃負債	5.36	316	316	629	409	1,670
			962,609	281,819	83,084	370,169	1,697,681

Note: The weighted average effective interest rates are based on the rates of the borrowings at the end of the reporting period.

3.2 Capital management

The Group regards its shareholders' equity as capital. The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the cost of capital.

附註:加權平均實際利率乃根據報 告期末的借款利率計算。

3.2 資本管理

本集團將其股東權益視為資本。本 集團管理資本的目的為保障本集團 繼續以持續經營方式為股東提供 回報以及為其他利益相關者帶來利 益,並且維持最佳資本結構以減少 資金成本。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued) 3.2 Capital management (continued)

In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

The Group monitors capital on the basis of gearing ratio. This ratio is calculated as total interest bearing borrowings of the Group (including loan from a related company, bank borrowings and financial liability at fair value through profit or loss) less bank balances and cash (including pledged bank deposits) divided by total equity, as shown in the consolidated statement of financial position.

The gearing ratio was as follows:

3 財務風險管理(續) 3.2 資本管理(續)

為維持或調整資本結構,本集團可 調整向股東支付股息的金額、將資 本退還予股東、發行新股份或出售 資產以減少債項。

本集團以負債比率作為監控資本之 基準。該比率按本集團之計息貸款 總額(包括來自一間關連公司之貸 款、銀行貸款及按公平值計入損益 之金融負債)減銀行結存及現金(包 括已抵押銀行存款)除以權益總額 計算,如綜合財務狀況表所示。

負債比率如下:

As at 31 December

		於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Loan from a related company	來自一間關連公司之貸款
(Note 28)	(附註28)	–	57,644
Bank borrowings (Note 29)	銀行貸款(附註29)	492,460	610,702
Financial liability at fair value through	按公平值計入損益之金融負
profit or loss (Note 30)	債(附註30)	168,482	152,944
Less: Pledged bank deposits	減:已抵押銀行存款
(Note 26(a))	(附註26(a))	(84,308)	(53,921)
Bank balances and cash (Note 26(b))	銀行結存及現金(附註26(b))	(93,262)	(47,811)
Net debt	借貸淨額	483,372	719,558
Total equity	權益總額	1,645,571	1,415,072
Gearing ratio	負債比率	29.4%	50.8%

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

3 FINANCIAL RISK MANAGEMENT (continued) 3.3 Fair value estimation

The carrying amounts of the Group's financial assets including trade receivables, bills receivable, deposits and other receivables, pledged bank deposits and bank balances and cash; and financial liabilities including trade and bills payables, other payables and accruals, loan from a related company and bank borrowings approximate their fair values due to their short maturities. The fair value estimations of investment properties, financial liability at fair value through profit or loss and property, plant and equipment measured at revalued amount have been disclosed in Note 16, 30 and 17 respectively.

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal to the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

(a) Income taxes and deferred taxation

Significant judgement is required in determining the provision for income tax. There are many transactions and calculations for which the ultimate determination is uncertain. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such difference will impact the current tax and deferred tax assets and liabilities in the period in which such determination is made.

3 財務風險管理(續) 3.3 公平值估計

本集團金融資產的賬面值,包括應 收賬款、應收票據、按金及其他應 收款、已抵押銀行存款及銀行結存 及現金;及金融負債,包括應付賬 款及應付票據、其他應付款及預提 費用、來自一間關連公司之貸款及 銀行貸款,由於其到期日短,估計 其公平值相若。投資物業、按公平 值計入損益之金融負債及物業、廠 房及設備的公平價值估計已分別在 附註16、30和17中披露。

4 重大會計估計和判斷

用於編製綜合財務報表之估計及判斷,乃 基於過往經驗及其他因素,包括預期日後 在有關情況下相信合理出現之事件而作 出。

本集團作出有關未來之估計及假設。顧名 思義,所作會計估計甚少與有關之實際結 果相同。下文討論之估計及假設可能會對 下一個財政年度資產與負債之賬面值造 成重大影響。

(a) 所得稅及遞延稅項

對所得稅釐定撥備時,需要作出重 要的判斷。許多交易及計算的最終 釐定無法確定。當最終的稅款結果 與最初記賬金額不同時,有關差額 將影響釐定期間的當期稅項和遞延 稅項資產及負債。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)

• 4 重大會計估計和判斷(續)
• (a) Income taxes and deferred taxation (continued)

Deferred tax assets relating to certain temporary differences and tax losses are recognised when management considers it is probable that future taxable profit will be available against which the temporary differences or tax losses can be utilised. The outcome of their actual utilisation may be different.

(b) Impairment assessments of property, plant and equipment and land use rights

Property, plant and equipment and land use rights are reviewed for impairment whenever events or change in circumstances indicate that the carrying amounts may not be recoverable. The recoverable amounts have been determined based on the higher of value-in-use calculations or fair value less costs to sell calculations.

The calculations require the use of judgements and estimates. Management's judgement is required in the area of asset impairment particularly in assessing: (i) whether an event has occurred that may indicate that the related asset values may not be recoverable; (ii) whether the carrying amount of an asset can be supported by the recoverable amount, being the higher of fair value less costs to sell and net present value of future cash flows which are estimated based upon the continued use of the asset in the business; and (iii) the appropriate key assumptions to be applied in preparing cash flow projections including whether these cash flow projections are discounted using an appropriate rate. Changing the assumptions selected by management in assessing impairment, including the rate of annual increment for the steel cord price or the discount rates assumptions in the cash flow projections, could affect the net present value used in the impairment test and as a result affect the Group's financial position and results of operations.

(a) 所得稅及遞延稅項(續)

當管理層認為將來很有可能有應課 稅溢利以扺銷暫時性差額或可使用 稅務虧損時,有關若干暫時性差額 及稅務虧損的遞延稅項資產予以確 認。實際使用的結果可能不同。

(b) 物業、廠房及設備及土地使用權 減值評估

當任何事件或情況變化顯示賬面值 可能無法收回時,物業、廠房及設 備及土地使用權會進行減值檢討。 可收回金額乃根據使用價值計算或 公平值減銷售成本之較高者釐定。

計算需要使用判斷和估計。資產減 值部分需要管理層的判斷進行,特 別是在評估時:(i)是否發生了可能 表明相關資產價值無法收回的事 件;(ii)資產的賬面值是否可以由可 收回金額支援,即公平值減去出售 成本與未來現金流量淨現值之間的 較高者,而該等現金流量乃根據業 務持續使用該資產而估計;及(iii)在 編制現金流量預測時應採用的適當 關鍵假設,包括這些現金流量預測 是否以適當的利率貼現。管理層在 評估減值時更改所選擇的假設,包 括現金流量預測中的鋼簾線價格年 增長率或貼現率的假設,可能會影 響減值測試中使用的淨現值,從而 影響本集團的財務狀況和營運業績。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)

4 重大會計估計和判斷(續)

(c) Impairment of trade receivables

The Group makes provision for impairment loss on trade receivables based on assumptions about risk of default and expected loss rates. The Group uses judgement in making these assumptions and selecting the inputs to the expected credit losses allowance calculation, based on the Group's past history, existing market conditions as well as forward-looking estimates at the end of each reporting period.

(d) Provision for inventories

Inventories are carried at the lower of cost and net realisable value. The cost of inventories is written down to net realisable value when there is an objective evidence that the cost of inventories may not be recoverable. The cost of inventories may not be recoverable if those inventories are aged and damaged, if they have become wholly or partially obsolete, or if their selling prices have declined. The cost of inventories may also not be recoverable if the estimated costs to be incurred to make the sales have increased.

The amount written off in the consolidated statement of profit or loss is the difference between the carrying value and net realisable value of the inventories. In determining whether the inventories can be recoverable, significant judgement is required. In making this judgement, the Group evaluates, among other factors, the duration and extent by all means to which the amount will be recovered. During the year, certain inventories written down in prior years have been subsequently sold at prices higher than their then net realisable value. Provision regarding these inventories have been reversed.

(c) 應收款項減值

本集團根據對違約風險和預期損失 率的假設,對應收賬款計提減值損 失撥備。本集團根據本集團過往歷 史,現有市況及每個報告期末的前 瞻性估計,使用判斷作出該等假設 及選擇預期信貸虧損撥備計算的輸 入數據。

(d) 存貨撥備

存貨乃按成本及可變現淨值兩者 之間較低者入賬。倘有客觀證據顯 示存貨成本或不能收回,則將存貨 成本撇減至可變現淨值。倘存貨損 壞、全部或部份陳舊或售價下跌, 則可能不能收回存貨成本。倘進行 銷售將予產生的估計成本增加,亦 可能導致不能收回存貨成本。

於綜合損益表撇銷的金額為存貨的 賬面值與可變現淨值之間的差額。 於釐定可收回的存貨成本時須作出 重大判斷。於作出有關判斷時,本 集團會評估(其中包括)以任何方式 收回金額的時間及情況。年內,過 往年度撇減的若干存貨以高於它們 的可變現淨值出售,該存貨撥備因 此被撥回。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

4 CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (continued)

• 4 重大會計估計和判斷(續)
• (e) Fair value of investment properties and property, plant and equipment measured at revalued amount

The fair values of investment properties and property, plant and equipment measured at revalued amount are determined by using various valuation techniques. Details of the judgements and assumptions have been disclosed in Notes 16 and 17.

(f) Fair value of a financial liability at fair value through profit or loss

The fair value of a financial liability at fair value through profit or loss is determined by using valuation technique. Details of the judgements and assumptions have been disclosed in Note 30.

5 REVENUE

The Group is principally engaged in the manufacturing of steel cords. Revenue recognised during the year are as follows:

(e) 投資物業及物業、廠房及設備的 公平值按重估金額計量

按重估金額計量的投資物業及物 業、廠房及設備的公平值乃使用多 種估值技術釐定。有關判斷及假設 的詳情已於附註16及17披露。

(f) 按公平值計入損益之金融負債 的公平值

按公平值計入損益之金融負債的公 平值是通過使用各種估值技術確定 的。有關判斷及假設的詳情已於附 註30中披露。

5 營業額

本集團主要從事鋼簾線製造。本年度確認 的營業額如下:

		Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Continuing operations	持續經營業務
Sales of goods – Manufacturing of	貨品銷售-製造鋼簾線
steel cords Rental income	租金收入	2,040,059 1,494	2,139,930 1,450
		2,041,553	2,141,380

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION

The Company's managing director, being the CODM, examines the Group's performance and allocates resources from a product perspective. For the year ended 31 December 2020, the CODM has identified the Group's operating and reportable segment under HKFRS 8 Operating Segments to be steel cord segment, comprising the manufacturing of steel cords business.

In September 2019, the Group discontinued the processing and trading of copper and brass products business in the PRC (Note 32).

Segment results represent the profit or loss of each segment without allocation of changes in fair value of investment properties and financial liability at fair value through profit or loss, certain foreign exchange gains or losses, central administration costs, the emoluments of directors of the Company, interest income on bank deposits, finance costs and rental and other income. This is the measure reported to the CODM for the purposes of resource allocation and performance assessment.

6 分部資料

本公司之董事總經理,作為主要營運決策 者從產品的角度審查集團的業績並分配 資源。截至二零二零年十二月三十一日止 年度,主要營運決策者根據香港財務報告 準則第8號經營分部確認本集團之經營及 應呈報分部具體為鋼簾線分部乃包括製 造鋼簾線業務。

在二零一九年九月,本集團已終止經營於 中國的銅及黃銅材料的加工及貿易業務 (附註32)。

分部業績指各分部之損益,並不包括分配 投資物業及按公平值計入損益之金融負 債之公平值變動、若干外幣匯兌收益或虧 損、中央行政成本、本公司董事酬金、銀 行存款之利息收入、財務成本和租金及其 他收入。此乃呈報予主要營運決策者作為 資源分配和表現評估之計量。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION (continued)

(a) Segment revenues and results

6 分部資料(續)

The following is an analysis of the Group's revenue and results by operating and reportable segment:

For the year ended 31 December 2020

(a) 分部營業額及業績 以下為本集團按經營及應呈報分部 之營業額及業績之分析:

截至二零二零年十二月三十一日止 年度

		Steel cord 鋼簾線 HK\$'000 港幣千元
Sales of goods	貨品銷售
Segment revenue from external	分部營業額來自外部客戶
customers		2,040,059
Segment results	分部業績	205,989
Unallocated amounts	未分配金額
Rental income	租金收入	1,494
Other income	其他收入	702
Other losses, net and foreign exchange	其他虧損,淨額及外幣匯兌虧損,
losses, net	淨額	(20,254)
Changes in fair value of	投資物業公平值之變動
investment properties		(2,062)
Expenses	費用	(22,470)
Finance costs, net	財務成本,淨額	(17,488)
Profit before income tax	除所得稅前溢利	145,911
Income tax credit	所得稅抵免	3,054
Profit from continuing operations	來自持續經營業務之溢利	148,965
Loss from discontinued operation	來自已終止經營業務之虧損	(711)
Profit for the year	本年度溢利	148,254

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION (continued)

• 6 分部資料(續)
• (a) Segment revenues and results (continued) For the year ended 31 December 2019
• (a) 分部營業額及業績(續) 截至二零一九年十二月三十一日止 年度

Steel cord 鋼簾線 HK\$'000

		港幣千元
Sales of goods	貨品銷售
Segment revenue from external	分部營業額來自外部客戶
customers		2,139,930
Segment results	分部業績	204,719
Unallocated amounts	未分配金額
Rental income	租金收入	1,450
Other losses, net and foreign exchange	其他虧損,淨額及外幣匯兌收益,
gains, net	淨額	(2,269)
Changes in fair value of	投資物業公平值之變動
investment properties		(718)
Expenses	費用	(22,708)
Finance costs, net	財務成本,淨額	(64,704)
Profit before income tax	除所得稅前溢利	115,770
Income tax expense	所得稅支出	(4,026)
Profit from continuing operations	來自持續經營業務之溢利	111,744
Loss from discontinued operation	來自已終止經營業務之虧損	(3,400)
Profit for the year	本年度溢利	108,344

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION (continued)

6 分部資料(續)

(b) Segment assets and liabilities The following is an analysis of the Group's assets and liabilities by operating and reportable segment:

(b) 分部資產及負債 以下為本集團按經營及應呈報分部 之資產及負債之分析:

Segment assets

分部資產

			As at 31 December 於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Steel cord	鋼簾線	3,122,555	2,967,813
Total segment assets	分部資產總額	3,122,555	2,967,813
Bank balances and cash	銀行結存及現金	93,262	47,811
Pledged bank deposits	已抵押銀行存款	84,308	53,921
Unallocated assets	未分配資產	71,756	74,191
Discontinued operation	已終止經營業務	26	182
Total assets	資產總額	3,371,907	3,143,918

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION (continued)

6 分部資料(續)

(b) Segment assets and liabilities (continued) Segment liabilities

(b) 分部資產及負債(續) 分部負債

As at 31 December

		於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Steel cord	鋼簾線	1,051,183	893,191
Total segment liabilities	分部負債總額	1,051,183	893,191
Loan from a related company	來自一間關連公司之貸款	–	57,644
Bank borrowings	銀行貸款	492,460	610,702
Financial liability at fair value	按公平值計入損益之金融負債
through profit or loss		168,482	152,944
Unallocated liabilities	未分配負債	14,170	14,272
Discontinued operation	已終止經營業務	41	93
Total liabilities	負債總額	1,726,336	1,728,846

For the purpose of monitoring segment performances and allocating resources between segments:

• all assets are allocated to operating segment other than certain property, plant and equipment, investment properties, right-ofuse assets, certain prepayments, deposits and other receivables, pledged bank deposits and bank balances and cash.
• all liabilities are allocated to operating segment other than certain current income tax liabilities, bank borrowings, loan from a related company, lease liabilities, financial liability at fair value through profit or loss, certain deferred income tax liabilities and certain payables and accruals.

就監管分部表現及調配各分部資源 之用途而言:

• 除若干物業、廠房及設備、投 資物業、資產使用權、若干預 付款、按金及其他應收款、已 抵押銀行存款及銀行結存及現 金外,所有資產已被分配到經 營分部。
• 除 當 期 所 得 稅 負 債、銀 行 貸 款、來 自 一 間 關 連 公 司 之 貸 款、租賃負債、按公平值計入 損益之金融負債、若干遞延所 得稅負債及若干應付款及預提 費用外,所有負債已被分配到 經營分部。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION (continued)

6 分部資料(續)

• (c) Other segment information
• For the year ended 31 December 2020
• (c) 其他分部資料 截至二零二零年十二月三十一日止 年度

		Steel cord 鋼簾線 HK\$'000 港幣千元
Amounts included in the measure of segment assets or segment	包括於計量分部資產或分部損益之 金額:
profit or loss:
Capital expenditures	資本開支	149,900
Depreciation of property, plant	物業、廠房及設備之折舊
and equipment		87,197
Depreciation of right-of-use assets	資產使用權之折舊	1,152
Amortisation of land use rights	預付租賃款項之攤銷	2,578
Net impairment losses on financial assets	金融資產減值損失淨額	6,274
Reversal of impairment losses on land	土地使用權之減值損失撥回
use rights		(46,867)
Reversal of provision for inventories, net	存貨撥備撥回,淨額	(56)
Losses on disposal of property, plant	出售物業、廠房及設備之虧損,
and equipment, net	淨額	20,443
Amount regularly provided to CODM	定期提供予主要營運決策者但不包
but not included in the measure of	括於計量分部損益之金額:
segment profit or loss:
Income tax credit	所得稅抵免	3,112

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION (continued)

• 6 分部資料(續)
• (c) Other segment information (continued) For the year ended 31 December 2019
• (c) 其他分部資料(續) 截至二零一九年十二月三十一日止 年度

		Steel cord 鋼簾線 HK\$'000 港幣千元
Amounts included in the measure of	包括於計量分部資產或分部損益之
segment assets or segment	金額:
profit or loss:
Capital expenditures	資本開支	55,811
Depreciation of property, plant	物業、廠房及設備之折舊
and equipment		99,557
Depreciation of right-of-use assets	資產使用權之折舊	1,199
Amortisation of land use rights	預付租賃款項之攤銷	1,929
Net impairment losses on financial assets	金融資產減值損失淨額	1,059
Reversal of impairment losses on land	土地使用權之減值損失撥回
use rights		(17,456)
Provision for inventories, net	存貨撥備,淨額	9,096
Losses on disposal of property, plant	出售物業、廠房及設備之虧損,淨
and equipment, net	額	995
Amount regularly provided to CODM	定期提供予主要營運決策者但不包
but not included in the measure of	括於計量分部損益之金額:
segment profit or loss:
Income tax expense	所得稅支出	4,128

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

6 SEGMENT INFORMATION (continued)

(d) Geographical information

The Group's operations, non-current assets and substantially all of the customers are located in the PRC (including Hong Kong) which is the country of domicile of the relevant entities of the Group. Accordingly, no further analysis of revenue from external customers and non-current assets by geographical location is presented.

Revenue from customers contributing over 10% of the total revenue of the Group is as follows:

6 分部資料(續) (d) 地區資料

本集團之營運、非流動資產及絕大 部份客戶均位於本集團相關實體的 所在國家,中國(包括香港)。因此, 並無呈列來自外界客戶之營業額及 非流動資產以地區分類的進一步分 析。

來自佔本集團總營業額逾10%之客 戶的營業額如下:

Year ended 31 December

截至十二月三十一日止年度 2020 2019 二零二零年 二零一九年 HK\$'000 HK\$'000 港幣千元 港幣千元 Continuing operations 持續經營業務 Customer A 客戶A 265,021 334,290 Customer B 客戶B 215,612 260,579

7 OTHER INCOME

7 其他收入

		Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年 HK\$'000	2019 二零一九年 HK\$'000
		港幣千元	港幣千元
Continuing operations	持續經營業務
Government grants (Note)	政府補貼(附註)	6,660	13,190
Sales of scrap materials	銷售廢舊物料	2,849	3,701
		9,509	16,891

Note: The government grants mainly represented refund of social security contributions by the local governments in the PRC and approved subsidies from Employment Support Scheme under the Anti-epidemic Fund of the Hong Kong Government (2019: refund of social security contributions and subsidies for business development by the local governments in the PRC).

附註:政府補貼主要指中國地方政府的退還社會 保障金及香港政府的防疫抗疫基金下保就 業計劃之批准資助(二零一九年:中國地方 政府的退還社會保障金及業務發展資助)。

綜合財務報告附註

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

8 OTHER LOSSES, NET 8 其他虧損,淨額

		Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Continuing operations	持續經營業務
Net fair value (losses)/gains on derivatives held for trading	持作買賣之衍生工具之 公平值淨(虧損)╱收益	(706)	2,228
Fair value loss on financial liability at fair value through profit or loss	按公平值計入損益之 金融負債之公平值虧損
(Note 30)	(附註30)	(21,538)	(5,944)
Loss on disposals of property,	出售物業、廠房及設備之
plant and equipment, net	虧損,淨額	(20,443)	(995)
Impairment losses on property,	物業、廠房及設備之
plant and equipment (Note 17) Others	減值損失(附註17) 其他	(16,234) (456)	(9,745) 1,277
		(59,377)	(13,179)

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

9 EXPENSES BY NATURE

9 按性質劃分的費用

Expenses included in cost of sales, distribution and selling expenses, administrative expenses and research and development expenses are analysed as follows:

包括銷售成本、分銷及銷售費用、行政費 用及研發費用之費用分析如下:

		Year ended 31 December
			截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Continuing operations	持續經營業務
Cost of inventories sold (including	已銷售的存貨成本(包括存貨
net reversal of provision for/	淨撥備撥回╱撥備)(附註22)
provision for inventories) (Note 22)		1,635,008	1,744,208
Employee benefit expense (including	僱員福利開支(包括董事酬金)
directors' emoluments) (Note 10)	(附註10)	210,377	217,242
Depreciation of property, plant	物業、廠房及設備之折舊
and equipment		88,588	100,860
Depreciation of right-of-use assets	資產使用權之折舊(附註18)
(Note 18)		1,152	1,199
Amortisation of land use rights	土地使用權之攤銷(附註20)
(Note 20)		2,578	1,929
Auditor's remuneration	審計師的酬金
– Audit services	-審計服務	1,537	1,537
– Non-audit services	-非審計服務	398	674

綜合財務報告附註

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

10 EMPLOYEE BENEFIT EXPENSE

10 僱員福利開支

		Year ended 31 December 截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Continuing operations	持續經營業務
Wages, salaries, allowances and	薪金、工資、津貼及其他福利
other benefits		194,846	197,239
Pension costs – defined	退休金成本-定額供款計劃
contributed plans		232	234
Pension costs – social security in	退休金成本-於中國的
the PRC	社會保障金	15,299	19,769
		210,377	217,242

Five highest paid individuals

The five individuals whose emoluments were the highest in the Group for the year ended 31 December 2020 included two (2019: two) directors whose emoluments are reflected in the analysis shown in Note 39. The emoluments payable to the remaining three (2019: three) individuals during the year are as follows:

最高五位薪酬之僱員

截至二零二零年十二月三十一日止年 度,本集團薪酬最高的五名個人包括兩名 (二零一九年:兩名)董事,其酬金已反映 於附註39所示的分析中。年內應付餘下 三名(二零一九年:三名)僱員的薪酬如 下:

		Year ended 31 December 截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Continuing operations	持續經營業務
Salaries, allowances and	薪金、工資、津貼及其他福利
other benefits		3,557	3,395
Discretionary bonuses	酌情花紅	1,047	917
Pension costs – defined	退休金成本-定額供款計劃
contribution plans		99	151
		4,703	4,463

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

10 EMPLOYEE BENEFIT EXPENSE (continued)

10 僱員福利開支(續)

Five highest paid individuals (continued) The emoluments fell within the following bands:

最高五位薪酬之僱員(續) 酬金範圍如下:

		Number of individuals 僱員人數
		2020 二零二零年	2019 二零一九年
持續經營業務
酬金範圍
港幣1,000,001元至 港幣1,500,000元		1	2
港幣1,500,001元至
			1
		3	3
	港幣2,000,000元		2

Two (2019: two) executive directors of the Company, constitute senior management of the Company, their emoluments were within the following bands:

兩名(二零一九年:兩名)本公司執行董 事,構成本公司高級管理人員,其酬金屬 於以下範圍:

Number of individuals

		僱員人數
		2020 二零二零年	2019 二零一九年
Continuing operations Emolument bands	持續經營業務 酬金範圍
HK\$1,500,001 to HK\$2,000,000	港幣1,500,001元至 港幣2,000,000元	1	–
HK\$2,000,001 to HK\$2,500,000	港幣2,000,001元至 港幣2,500,000元	1	2
		2	2

For the year ended 31 December 2020, no emoluments were paid by the Group to any of the directors or other members of the five highest paid individuals as an inducement to join, upon joining the Group, leave the Group or as compensation for loss of office (2019: same).

截至二零二零年十二月三十一日止年 度,本集團概無向任何最高五位薪酬之僱 員的董事或其他成員支付酬金,以作為吸 引彼等加入或於加入本集團時之獎金或 作為離職補償(二零一九年:相同)。

綜合財務報告附註

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

11 FINANCE COSTS, NET 11 財務成本,淨額

		Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Continuing operations	持續經營業務
Finance income	財務收入
Interest income on bank deposits	銀行存款利息收入	1,114	865
Foreign exchange gain on financial	按公平值計入損益之
liability at fair value through profit	金融負債之外幣匯兌收益
or loss		9,705	–
Total finance income	財務收入總額	10,819	865
Finance costs	財務成本
Interest expenses on	銀行貸款之利息支出
bank borrowings		(24,273)	(37,667)
Interest expenses on loan from	來自一間關連公司貸款之
a related company	利息支出	(670)	(8,261)
Interest expenses on lease liabilities	租賃負債之利息支出(附註18)
(Note 18)		(55)	(115)
Amortisation of loan transaction	貸款交易成本之攤銷
costs Foreign exchange losses on		(1,593)	(1,994)
borrowings and financial liability	貸款及按公平值計入損益之 金融負債之外幣匯兌虧損
at fair value through profit or loss		(1,716)	(17,532)
Total finance costs	財務成本總額	(28,307)	(65,569)
Finance costs, net	財務成本,淨額	(17,488)	(64,704)

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

12 INCOME TAX (CREDIT)/EXPENSE

12 所得稅(抵免)╱支出

		Year ended 31 December 截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Current income tax:	當期所得稅:
– China corporate income tax	-中國企業所得稅	7,551	4,003
Overprovision in prior years	以前年度超額撥備	(4,235)	(1,294)
Total current income tax	當期所得稅總額	3,316	2,709
Deferred income tax (Note 31)	遞延所得稅(附註31)	(6,370)	1,317
Income tax (credit)/expense	所得稅(抵免)╱支出	(3,054)	4,026
Income tax (credit)/expense is	所得稅(抵免)╱支出歸因於:
attributable to:
– Continuing operations	-持續經營業務	(3,054)	4,026
– Discontinued operation (Note 32)	-已終止經營業務(附註32)	–	–
		(3,054)	4,026

No provision for Hong Kong profits tax for the year ended 31 December 2020 as there is no assessable profit subject to Hong Kong profits tax (2019: same).

Pursuant to the Corporate Income Tax Law of the PRC effective from 1 January 2008 (the "CIT Law"), companies in the PRC are subject to income tax of 25% unless preferential rate is applicable.

The applicable CIT tax rate for Jiaxing Eastern Steel Cord Co., Ltd. ("JESC") and Tengzhou Eastern Steel Cord Co., Ltd. ("TESC") were 15% for the year (2019: 15%), as they are qualified as High and New Technology Enterprise ("HNTE").

截至二零二零年十二月三十一日止年 度,本集團並無任何須繳付香港利得稅的 應課稅溢利,因此無香港利得稅之撥備 (二零一九年:相同)。

根據自二零零八年一月一日生效之中國 企業所得稅法(「企業所得稅法」),除非優 惠稅率適用,否則於中國的公司須繳納 25%的所得稅。

本年度嘉興東方鋼簾線有限公司(「嘉興 東方」)及滕州東方鋼簾線有限公司(「滕 州東方」)的適用企業所得稅稅率為15% (二零一九年:15%),因具備高新技術企 業(「高新技術企業」)之資格。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

12 INCOME TAX (CREDIT)/EXPENSE (continued)

12 所得稅(抵免)╱支出(續)

The taxation on the Group's profit before income tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities in the respective jurisdictions as follows:

本集團除所得稅前溢利的稅項與採用適 用於各個司法權區的合併實體溢利的加 權平均稅率計算的理論金額的差額如下:

		Year ended 31 December 截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Profit from continuing operations	來自持續經營業務之
before income tax	除所得稅前溢利	145,911	115,770
Loss from discontinued operation	來自已終止經營業務之
before income tax	除所得稅前虧損	(711)	(3,400)
Profit before income tax	除所得稅前溢利	145,200	112,370
Tax calculated at domestics tax	按國內稅率計算的適用於各國
rates applicable to profits in the	溢利的稅額(附註(i))
respective countries (Note (i))		20,635	12,989
Expenses not deductible	不可抵扣稅項之費用
for taxation purposes		18,957	9,265
Income not subject to taxation	不計入稅項之收入	(15,379)	(4,086)
Tax losses for which no deferred	未確認遞延所得稅的稅務虧損
income tax was recognised		3,319	3,424
Utilisation of previously	使用以往未確認的稅務虧損
unrecognised tax losses		(16,352)	(13,502)
Recognition of tax losses previously	確認以往未確認的稅務虧損
not recognised		(6,085)	–
Tax incentives for research and	在中國成立附屬公司的研發開支
development expenses available	稅務優惠(附註(ii))
for a subsidiary incorporated in
the PRC (Note (ii))		(6,516)	(6,008)
Withholding tax on dividends	股息之預提稅項	2,554	2,417
Withholding tax on interest income	利息收入之預提稅項(附註(iii))
(Note (iii))		48	821
Overprovision in prior years	以前年度的超額準備金	(4,235)	(1,294)
		(3,054)	4,026

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

12 INCOME TAX (CREDIT)/EXPENSE (continued) Notes:

• i The weighted average applicable tax rate was 14.2% for the year ended 31 December 2020 (2019: 11.6%). The change is carried by a change in the profitability mix of the Group's subsidiaries in the respective countries.
• ii The Group obtained an incentive from the PRC tax authority relating to the research and development expenses of a subsidiary in the PRC. Under such tax incentive rule, the Group may claim an additional tax deduction up to 75% (2019: 75%) of the relevant research and development expenses incurred in a year approved by the PRC tax authority.
• iii The withholding tax rates on interest income earned from entities in the PRC was 7% (2019: 7%).

13 SUBSIDIARIES

The following is a list of principal subsidiaries:

12 所得稅(抵免)╱支出(續) 附註:

• i 截至二零二零年十二月三十一日止年度, 加權平均適用稅率為14.2%(二零一九年: 11.6%)。變動乃由於本集團於各國的附屬 公司盈利能力組合出現變化所致。
• ii 本集團向中國稅務機關取得有關中國附屬 公司研發開支的優惠。根據該稅務優惠條 款,本集團可向中國稅務機關申請的當年 發生的相關研發費用的75%(二零一九年: 75%)的額外稅收減免。
• iii 賺取自中國實體之利息收入的預提稅稅率 為7%(二零一九年:7%)。

13 附屬公司

主要附屬公司之詳情如下:

Name of subsidiaries 附屬公司名稱	Place of incorporation and kind of legal entity 成立地點 及法定實體形式	Particulars of issued share capital/ registered capital 已發行股本╱ 註冊股本的詳情	Attributable equity interest of the Group 本集團應佔股權 百分比		Principal activities and place of operations 主要業務 及經營地點
			2020 二零二零年	2019 二零一九年
Bigland Investment Limited 大龍投資有限公司	Hong Kong, limited company 香港,有限公司	HK\$2 (2 ordinary shares) 港幣2元 (普通股2股)	100% 100%	100% 100%	Property investment in the PRC 於中國從事物業投資
Eastern Century Metal Products Limited	Hong Kong, limited company	HK\$1,000,000 (1,000,000 ordinary shares)	100%	100%	Investment holding in the Hong Kong
寶佳金屬製品有限公司	香港,有限公司	港幣1,000,000元 (普通股1,000,000股)	100%	100%	於香港從事投資控股
Everwinner Investments Limited	Hong Kong, limited company	HK\$1,000,000 (1,000,000 ordinary shares)	100%	100%	Investment holding in the Hong Kong
永宏利投資有限公司	香港,有限公司	港幣1,000,000元 (普通股1,000,000股)	100%	100%	於香港從事投資控股

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

13 SUBSIDIARIES (continued)

13 附屬公司(續)

Name of subsidiaries 附屬公司名稱	Place of incorporation and kind of legal entity 成立地點 及法定實體形式	Particulars of issued share capital/ registered capital 已發行股本╱ 註冊股本的詳情	Attributable equity interest of the Group 本集團應佔股權 百分比		Principal activities and place of operations 主要業務 及經營地點
			2020 二零二零年	2019 二零一九年
Fair Win Development Limited	Hong Kong, limited company	HK\$500,000 (500,000 ordinary	100%	100%	Property investment in the PRC
輝榮發展有限公司	香港,有限公司	shares) 港幣500,000元 (普通股500,000股)	100%	100%	於中國從事物業投資
Heroland Investment	Hong Kong, limited	HK\$2	100%	100%	Property investment
Limited 天雄投資有限公司	company 香港,有限公司	(2 ordinary shares) 港幣2元 (普通股2股)	100%	100%	in the Hong Kong 於香港從事物業投資
Jiaxing Eastern Steel Cord Co., Ltd.#	PRC, limited liability company	Registered capital of US\$70,000,000	100%	100%	Manufacturing of steel cords in the PRC
嘉興東方鋼簾線有限公司#	中國,有限責任公司	註冊股本70,000,000美元	100%	100%	於中國從事製造鋼 簾線
Tengzhou Eastern Steel Cord Co., Ltd.# (Note (a))	PRC, limited liability company	Registered capital of US\$109,000,000 (2019: US\$94,000,000)	100%	100%	Manufacturing of steel cords in the PRC
滕州東方鋼簾線有限公司# (附註(a))	中國,有限責任公司	註冊股本109,000,000 美元(二零一九年: 94,000,000美元)	100%	100%	於中國從事製造鋼 簾線
Shougang Concord Century (Shanghai) Management Co., Ltd.#^	PRC, limited liability company	Registered capital of US\$7,000,000	100%*	100%*	Provision of management services in
首長寶佳(上海)管理有限公司#	中國,有限責任公司	註冊股本7,000,000美元	100%*	100%*	the PRC 於中國從事提供管理 服務
# A wholly foreign owned enterprise			#	全外資企業
* Directly held by the Company			*	本公司直接持有
^ For identification purpose only			^ 僅供識別

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

13 SUBSIDIARIES (continued)

Notes:

(a) The paid up capital of Tengzhou Eastern Steel Cord Co., Ltd. increased from US\$94,000,000 to US\$109,000,000 during the year ended 31 December 2020.

The above table lists the subsidiaries of the Company which, in the opinion of the directors of the Company, principally affected the results for the year or formed a substantial portion of the net assets of the Group. To give details of other subsidiaries would, in the opinion of the directors of the Company, result in particulars of excessive length.

None of the subsidiaries had any loan capital and issued any debt securities subsisting at the end of the year or at any time during the year (2019: same).

14 DIVIDENDS

On 24 March 2020, the Board has recommended the payment of a final dividend of HK1 cent per fully paid ordinary share, with total amount of approximately HK\$19,064,000 for the year ended 31 December 2019. The dividend was paid in June 2020.

On 22 March 2021, the Board has recommended the payment of a final dividend of HK1.5 cents per fully paid ordinary share, with total amount of approximately HK\$28,485,000 for the year ended 31 December 2020. The final dividend is subject to the shareholders' approval at the forthcoming annual general meeting. The final dividend proposed after 31 December 2020 has not been recognised as a liability as at 31 December 2020.

13 附屬公司(續) 附註:

(a) 滕州東方鋼簾線有限公司的繳足股本截 至二零二零年十二月三十一日止年度由 94,000,000美元增加至109,000,000美元。

本公司董事認為,上表列出本公司之附屬 公司乃主要影響本年度業績,或構成本集 團資產淨值之重要部份之附屬公司。本公 司董事認為詳列其他附屬公司之資料將 會導致篇幅過份冗長。

各附屬公司於年末時或於本年度內任何 時間概無任何債務資本或已發行任何債 務證券(二零一九年:相同)。

14 股息

董事會於二零二零年三月二十四日建議 派發截至二零一九年十二月三十一日止 年度之末期股息每股繳足股本的普通股 港幣1仙,總額約為港幣19,064,000元, 並已於二零二零年六月支付。

董事會於二零二一年三月二十二日建議 派發截至二零二零年十二月三十一日止 年度之末期股息每股繳足股本的普通股 港 幣1.5仙,總 額 約 為 港 幣28,485,000 元。末期股息需在即將舉行的股東周年大 會上經股東批核。於二零二零年十二月 三十一日後擬派的末期股息不會計入於 二零二零年十二月三十一日的負債。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

15 EARNINGS PER SHARE

(a) Basic

15 每股盈利 (a) 基本

Basic earnings per share is calculated by dividing the profit for the year attributable to the owners of the Company by the weighted average number of ordinary shares in issue during the year.

每股基本盈利乃按本公司持有人應 佔本年度溢利除年內已發行普通股 加權平均數計算。

			Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年	2019 二零一九年
Profit/(loss) attributable to the	本公司擁有人應佔本年度
owners of the Company used in calculating basic earnings per	溢利╱(虧損)用於計算每股 基本盈利:
share:
– Continuing operations	-持續經營業務(港幣千元)
(HK\$'000) – Discontinued operation	-已終止經營業務(港幣千元)	148,965	111,744
(HK\$'000)		(711)	(3,400)
		148,254	108,344
Weighted average number of	已發行普通股加權平均數
ordinary shares in issue (shares)	(股份)	1,908,733,015	1,922,900,556
From continuing operations attributable to the owners	本公司擁有人應佔來自持續 經營業務(港仙)
of the Company (HK cents)		7.80	5.81
From discontinued operation	來自已終止經營業務(港仙)
(HK cents)		(0.04)	(0.18)
Basic earnings per share	本公司擁有人應佔每股基本
attributable to the owners	盈利(港仙)
of the Company (HK cents)		7.76	5.63

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

15 EARNINGS PER SHARE (continued)

(b) Diluted

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all potentially dilutive ordinary shares. The Company has one category (2019: two categories) of potentially dilutive ordinary shares: convertible bonds (Note 30) (2019: convertible bonds and share options). For the convertible bonds, calculations are done to determine the number of shares that could have been acquired at fair value (determined as the average market share price of the Company's shares for the year) based on the monetary value of the subscription rights attached to outstanding convertible bonds.

For the year ended 31 December 2020, convertible bonds issued are considered to be potential ordinary shares and have been included in the determination of diluted earnings per share from their date of issue. The convertible bonds have not been included in the determination of basic earnings per share (2019: same).

15 每股盈利(續)

(b) 攤薄

每股攤薄盈利乃透過調整已發行普 通股加權平均數以假設轉換所有潛 在攤薄普通股而計算。本公司有一 類(二零一九年:兩類)潛在攤薄普 通股:可換股債券(附註30(二零 ) 一九年:可換股債券及購股權)。 就可換股債券而言,按尚未行使可 換股債券所附認購權的貨幣價值計 算,以釐定可按公平值(定為本公司 股份在本年度的平均市價)購買的 股份數目。

截至二零二零年十二月三十一日止 年度,發行的可換股債券被認為是 潛在的普通股,並已包含在自發行 之日起確定每股攤薄盈利中。可換 股債券未計入每股基本盈利的確定 中(二零一九年:相同)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

15 EARNINGS PER SHARE (continued)

(b) Diluted (continued)

15 每股盈利(續) (b) 攤薄(續)

Year ended 31 December 截至十二月三十一日止年度 2020 2019 二零二零年 二零一九年 Profit/(loss) attributable to the owners of the Company used in calculating basic earnings per share: 本公司擁有人應佔本年度 溢利╱(虧損)用於計算每股 基本盈利: – Continuing operations (HK\$'000) -持續經營業務(港幣千元) 148,965 111,744 – Discontinued operation (HK\$'000) -已終止經營業務 (港幣千元) (711) (3,400) 148,254 108,344 Profit adjustment for convertible bonds (HK\$'000) 因可換股債券而調整溢利 (港幣千元) 11,833 12,999 160,087 121,343 Weighted average number of ordinary shares in issue (shares) 已發行普通股加權平均數 (股份) 1,908,733,015 1,922,900,556 Adjustment for convertible bonds (shares) 因可換股債券而調整(股份) 454,545,454 403,486,924 Weighted average number of ordinary shares for diluted earnings per share (shares) 每股攤薄盈利之普通股加權 平均數(股份) 2,363,278,469 2,326,387,480 From continuing operations attributable to the owners of the Company (HK cents) 本公司擁有人應佔來自持續 經營業務(港仙) 6.80 5.36 From discontinued operation (HK cents) 來自已終止經營業務(港仙) (0.03) (0.14) Diluted earnings per share attributable to the owners of the Company (HK cents) 本公司擁有人應佔每股攤薄 盈利(港仙) 6.77 5.22

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

16 INVESTMENT PROPERTIES

16 投資物業

The movement of the net book amount for investment properties is as follows:

投資物業的賬面淨額變動如下:

		Leasehold land and buildings 租賃土地和 樓宇 HK\$'000
		港幣千元
At 1 January 2019	於二零一九年一月一日	55,449
Changes in fair value recognised in profit or loss (Note)	已於損益內確認之公平值變動(附註)	(718)
Exchange differences	匯兌差額	(638)
At 31 December 2019	於二零一九年十二月三十一日	54,093
At 1 January 2020	於二零二零年一月一日	54,093
Changes in fair value recognised in	已於損益內確認之公平值變動(附註)
profit or loss (Note)		(2,062)
Exchange differences	匯兌差額	1,843
At 31 December 2020	於二零二零年十二月三十一日	53,874

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

16 INVESTMENT PROPERTIES (continued) Note:

16 投資物業(續) 附註:

Fair value measurements using significant unobservable inputs (level 3)

The investment properties of the Group represent industrial property units located in Hong Kong and residential property unit located in the PRC with following details:

使用重大的無法觀察輸入數據進行公平值計量 (第三級)

本集團的投資物業指位於香港的工業物業單位及 位於中國的住宅物業單位,詳情如下:

		As at 31 December 於十二月三十一日
	2020	2019
	二零二零年 HK\$'000 港幣千元	二零一九年 HK\$'000 港幣千元
Industrial property units located in Hong Kong 位於香港的工業物業單位 Residential property units located in the PRC 位於中國的住宅物業單位	22,400 31,474	24,800 29,293
	53,874	54,093

The fair values as at 31 December 2020 and 2019 were assessed by the independent and professionally qualified valuer, Vigers Appraisal and Consulting Limited ("Vigers").

本集團之投資物業於二零二零年及二零一九年 十二月三十一日之公平值乃根據獨立且具有專業 資格的估值師威格斯資產評估顧問有限公司(「威 格斯」)。

格。 The valuations were determined using the direct comparison approach. Sales price of comparable properties in close proximity are adjusted for differences in key attributes such as property size. The most significant input into this valuation approach is price per square foot/square meter.

估值確定採用直接比較法。根據房產大小等關鍵 屬性的差異調整近似可比的房產銷售價格。這種 估值方法最重要的輸入是每平方尺╱平方米的價

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

16 INVESTMENT PROPERTIES (continued) Note: (continued)

16 投資物業(續) 附註:(續)

Fair value measurements using significant unobservable inputs (level 3) (continued)

(a) Industrial property units located in Hong Kong The key unobservable inputs used in the valuation of the industrial property units located in Hong Kong are:

使用重大的無法觀察輸入數據進行公平值計量 (第三級)(續)

As at 31 December

(a) 位於香港的工業物業單位 位於香港的工業物業單位估值所使用的主 要無法觀察輸入數據如下:

			於十二月三十一日
Valuation technique 估值方法	Unobservable inputs 無法觀察輸入數據	2020 二零二零年	2019 二零一九年
Direct comparison approach	Adjusted market price per	HK\$5,200	HK\$5,800
直接比較法	square foot 每平方尺調整後的市場價格	港幣5,200元	港幣5,800元
As at 31 December 2020, if the adjusted market price per square foot decreased by 5%, the impact on profit or loss would be HK\$1,120,000 (2019: HK\$1,240,000) lower. The lower the adjusted market price per square foot, the lower the fair value.		於二零二零年十二月三十一日,如果調整 後的每平方尺市場價格下跌5%,則對損 益的影響將為減少港幣1,120,000元(二零 一九年:港幣1,240,000元)。調整後的每 平方尺市場價格越低,公平值越低。
Residential property units located in the PRC The key unobservable inputs used in the valuation of the residential property units located in the PRC are:	(b)	位於中國的住宅物業單位 位於中國的住宅物業單位估值所使用的主 要無法觀察輸入數據如下:
			As at 31 December 於十二月三十一日
Valuation technique 估值方法	Unobservable inputs 無法觀察輸入數據	2020 二零二零年	2019 二零一九年
Direct comparison approach	Adjusted market price per square meter	Ranged from HK\$41,000 to	Ranged from HK\$39,000 to
直接比較法	每平方尺調整後的市場價格	HK\$63,000 範圍由 港幣41,000元至	HK\$61,000 範圍由 港幣39,000元至
		港幣63,000元	港幣61,000元

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

Fair value measurements using significant unobservable inputs

(b) Residential property units located in the PRC (continued) As at 31 December 2020, if the adjusted market price per square meter decreased by 5%, the impact on profit or loss would be HK\$1,574,000 (2019: HK\$1,465,000) lower. The lower the adjusted market price per square meter, the lower

During the year ended 31 December 2020, there were no transfers of investment properties between fair value hierarchy classifications during the year (2019: same).

At 31 December 2020, the Group had no unprovided contractual obligations for future repairs and maintenance (2019: same).

The following amounts have been recognised in the consolidated

16 INVESTMENT PROPERTIES (continued) Note: (continued)

(level 3) (continued)

the fair value.

statement of profit or loss:

16 投資物業(續) 附註:(續)

使用重大的無法觀察輸入數據進行公平值計量 (第三級)(續)

(b) 位於中國的住宅物業單位(續) 於二零二零年十二月三十一日,如果每平 方米的單位重置成本減少5%,則對損益的 影響將為港幣1,574,000元(二零一九年: 港幣1,465,000元)減少。每平方米的單位 更換成本越低,公平值越低。

截至二零二零年十二月三十一日止年度, 年內投資物業公平值層級分類之間並無轉 撥(二零一九年:相同)。

於二零二零年十二月三十一日,本集團並無任何 未經授權的合約責任以供日後維修及保養(二零 一九年:相同)。

以下金額已於綜合損益表確認:

		Year ended 31 December
		截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Continuing operations	持續經營業務
Rental income	租金收入	1,494	1,450
Direct operating expenses arising from	於本年度產生租金收入的投資物業之
investment properties that generated rental	直接經營費用
income		(104)	(8)
Changes in fair values recognised in the	已於綜合損益表確認之公平值變動
consolidated statement of profit or loss		(2,062)	(718)

The period of leases whereby the Group leases out its investment properties under operating leases ranged from two to six years (2019: same).

本集團根據經營租賃出租其投資物業的 租賃期為二至六年(二零一九年:相同)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

17 PROPERTY, PLANT AND EQUIPMENT 17 物業、廠房及設備

					Furniture,
		Leasehold			fixtures		Construction
		land and	Leasehold	Plant and	and	Motor	in
		buildings	improvements	machinery	equipment	vehicles	progress	Total
		租賃土地及	租賃物業	廠房及	傢俬、裝置及
		樓宇	裝修	機器	設備	汽車	在建工程	合計
		HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元
At 1 January 2019	於二零一九年一月一日
Cost or fair value	成本或公平值	342,772	3,825	2,344,202	31,417	15,888	3,318	2,741,422
Accumulated depreciation and impairment loss	累計折舊及減值	–	(2,511)	(1,534,853)	(25,331)	(12,394)	–	(1,575,089)
Net book amount	賬面淨值	342,772	1,314	809,349	6,086	3,494	3,318	1,166,333
Year ended 31 December 2019 截至二零一九年
	十二月三十一日止年度
Opening net book amount	期初賬面淨值	342,772	1,314	809,349	6,086	3,494	3,318	1,166,333
Additions	添置	–	28	580	240	1,825	53,956	56,629
Disposals	出售	–	–	(2,237)	(248)	(91)	–	(2,576)
Transfers	轉撥	–	–	19,250	8	–	(19,258)	–
Depreciation	折舊	(9,728)	(636)	(89,140)	(947)	(437)	–	(100,888)
Revaluation (Note)	重估(附註)	(2,744)	–	–	–	–	–	(2,744)
Impairment loss (Note 8)	減值(附註8)	–	–	(9,745)	–	–	–	(9,745)
Exchange differences	匯兌差額	(6,992)	247	(20,785)	(89)	(337)	(791)	(28,747)
Closing net book amount	期末賬面淨值	323,308	953	707,272	5,050	4,454	37,225	1,078,262

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

17 PROPERTY, PLANT AND EQUIPMENT

17 物業、廠房及設備(續)

(continued)

			Furniture,
		Leasehold			fixtures		Construction
		land and buildings 租賃土地及	Leasehold improvements 租賃物業	Plant and machinery 廠房及	and equipment 傢俬、裝置及	Motor vehicles	in progress	Total
		樓宇	裝修	機器	設備	汽車	在建工程	合計
		HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元	HK\$'000 港幣千元
At 31 December 2019	於二零一九年十二月三十一日
Cost or fair value	成本或公平值	323,308	3,788	2,284,230	28,646	15,957	37,225	2,693,154
Accumulated depreciation and impairment loss	累計折舊及減值	–	(2,835)	(1,576,958)	(23,596)	(11,503)	–	(1,614,892)
Net book amount	賬面淨值	323,308	953	707,272	5,050	4,454	37,225	1,078,262
Year ended 31 December 2020 截至二零二零年
Opening net book amount	十二月三十一日止年度 期初賬面淨值	323,308	953	707,272	5,050	4,454	37,225	1,078,262
Additions	添置	217	–	8,653	1,253	2,366	137,656	150,145
Disposals	出售	–	–	(26,199)	(142)	(9)	–	(26,350)
Transfers	轉撥	59,026	–	69,276	126	–	(128,428)	–
Depreciation	折舊	(9,824)	(380)	(76,449)	(889)	(1,067)	–	(88,609)
Revaluation (Note)	重估(附註)	(2,009)	–	–	–	–	–	(2,009)
Impairment loss (Note 8)	減值(附註8)	–	–	(15,554)	(216)	–	(464)	(16,234)
Exchange differences	匯兌差額	22,828	10	56,261	329	339	3,202	82,969
Closing net book amount	期末賬面淨值	393,546	583	723,260	5,511	6,083	49,191	1,178,174
At 31 December 2020
Cost or fair value	於二零二零年十二月三十一日 成本或公平值	393,546	3,973	2,260,155	30,971	19,213	49,681	2,757,539
Accumulated depreciation and	累計折舊及減值
impairment loss		–	(3,390)	(1,536,895)	(25,460)	(13,130)	(490)	(1,579,365)
Net book amount	賬面淨值	393,546	583	723,260	5,511	6,083	49,191	1,178,174

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

17 PROPERTY, PLANT AND EQUIPMENT

(continued) Note:

Fair value measurements using significant unobservable inputs (level 3)

The leasehold land and buildings of the Group represent industrial property units located in Hong Kong, commercial property unit located in the PRC and industrial property units located in the PRC with following details:

17 物業、廠房及設備(續)

附註:

使用重大的無法觀察輸入數據進行公平值計量 (第三級)

本集團的租賃土地及樓宇為位於香港的工業物業 單位,位於中國的商業物業單位及位於中國的工 業物業單位,詳情如下:

		As at 31 December 於十二月三十一日
	2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Industrial property units located in Hong Kong Commercial property unit located in the PRC Industrial property units located in the PRC	15,600 位於香港之工業物業單位 950 位於中國之商業物業單位 376,996 位於中國之工業物業單位	17,300 893 305,115
	393,546	323,308

The leasehold land and buildings of the Group are carried at revalued amount. If the leasehold land and buildings had not been revalued, they would have been included in these consolidated financial statements at historical cost less accumulated depreciation with carrying amount of HK\$295,215,000 as at 31 December 2020 (2019: HK\$227,752,000).

本集團的租賃土地及樓宇按重估價值列賬。倘 租賃土地及樓宇尚未重估,則其於二零二零年 十二月三十一日按歷史成本減累計折舊之賬面 值為港幣295,215,000元( 二 零 一 九 年: 港 幣 227,752,000元)計入綜合財務報表。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

17 PROPERTY, PLANT AND EQUIPMENT

(continued)

Note: (continued)

Fair value measurements using significant unobservable inputs (level 3) (continued)

The revalued amount as at 31 December 2020 and 2019 were assessed by the independent and professionally qualified valuer, Vigers. The valuations were determined using either:

• Direct comparison approach: Sales price of comparable properties in close proximity are adjusted for differences in key attributes such as property size. The most significant input into this valuation approach is price per square foot/ square meter; or
• Depreciated replacement cost approach: Current cost of replacement/reproduction of the properties. The most significant input into this valuation approach is replacement cost per square foot/square meter.

Quantitative information about fair value measurements using significant unobservable inputs (level 3):

(a) Industrial property units located in Hong Kong The key unobservable inputs used in the valuation of the industrial property units located in Hong Kong are:

17 物業、廠房及設備(續)

附註:(續)

使用重大的無法觀察輸入數據進行公平值計量 (第三級)(續)

於二零二零年及二零一九年十二月三十一日的重 估金額由獨立且具有專業資格的估值師威格斯評 估。估值採用以下任一方法釐定:

• 直接比較法:於鄰近地區可比較物業之銷 售價格會就主要屬性(例如物業面積)之差 異作出調整。此估值方法之最重大輸入值 為每平方尺╱平方米的價格;或
• 已折舊重置成本法:當前物業重置成本╱ 再製造成本。此估值方法之最重大輸入值 為每平方尺╱平方米的的重置成本。

有關使用重大的無法觀察輸入數據之公平值計量 (第三級)的定量資料:

(a) 位於香港之工業物業單位 位於香港的工業物業單位估值所使用的主 要無法觀察輸入數據如下:

As at 31 December

		於十二月三十一日
Valuation technique 估值方法	Unobservable inputs 無法觀察輸入數據	2020 二零二零年	2019 二零一九年
Market comparable approach	Adjusted market price per square foot	HK\$5,500	HK\$6,100
市場比較方法	經調整每平方尺市場價格	港幣5,500元	港幣6,100元

As at 31 December 2020, if the adjusted market price per square foot decreased by 5%, the impact on other comprehensive income would be HK\$780,000 (2019: HK\$865,000) lower. The lower the adjusted market price per square foot, the lower the fair value.

於二零二零年十二月三十一日,如經調整 每平方尺市場價格下降5%,對其他全面 收益的影響將為港幣780,000元(二零一九 年:港幣865,000元)減少。調整後的每平 方尺市場價格越低,公平值越低。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

17 PROPERTY, PLANT AND EQUIPMENT

(continued)

Note: (continued)

17 物業、廠房及設備(續)

附註:(續)

Fair value measurements using significant unobservable inputs (level 3) (continued)

(b) Commercial property unit located in the PRC The key unobservable inputs used in the valuation of the commercial property unit in the PRC are:

使用重大的無法觀察輸入數據進行公平值計量 (第三級)(續)

• (b) 位於中國之商業物業單位
• 位於中國的商業物業單位估值所使用的主 要無法觀察輸入數據如下:

			As at 31 December 於十二月三十一日
Valuation technique 估值方法	Unobservable inputs 無法觀察輸入數據	2020 二零二零年	2019 二零一九年
Market comparable approach	Adjusted market price per square meter	HK\$21,400	HK\$20,100
市場比較方法	經調整每平方尺市場價格	港幣21,400元	港幣20,100元

As at 31 December 2020, if the adjusted market price per square meter decreased by 5%, the impact on other comprehensive income would be HK\$48,000 (2019: HK\$45,000) lower. The lower the adjusted market price per square meter, the lower the fair value.

於二零二零年十二月三十一日,如經調整每平方 米市場價格下降5%,對其他綜合收益的影響將 為港幣48,000元(二零一九年:港幣45,000元)減 少。調整後的每平方米市場價格越低,公平值越 低。

(c) Industrial property units located in the PRC The key unobservable inputs used in the valuation of the industrial property units in the PRC are:

(c) 位於中國之工業物業單位 位於中國的工業物業單位估值所使用的主 要無法觀察輸入數據如下:

		As at 31 December
		於十二月三十一日
Valuation technique	Unobservable inputs	2020	2019
估值方法	無法觀察輸入數據	二零二零年	二零一九年
Depreciated replacement cost approach	Unit replacement cost per	Ranged from	Ranged from
	square meter	HK\$1,100 to	HK\$1,100 to
		HK\$2,300	HK\$1,300
已折舊重置成本方法	每平方米單位重置成本	範圍由	範圍由
		港幣1,100元至	港幣1,100元至
		港幣2,300元	港幣1,300元
	Adopted depreciation rate	Ranged from	Ranged from
		26% to 100%	52% to 90%
	已採用之折舊率	範圍由	範圍由
		26%至100%	52%至90%

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

17 PROPERTY, PLANT AND EQUIPMENT

(continued)

Note: (continued)

Fair value measurements using significant unobservable inputs (level 3) (continued)

(c) Industrial property units located in the PRC (continued) As at 31 December 2020, if the unit replacement cost per square meter decreased by 5%, the impact on other comprehensive income would be HK\$18,850,000 (2019: HK\$15,256,000) lower. The lower the unit replacement cost per square meter, the lower the fair value.

There were no transfers of leasehold land and buildings between fair value hierarchy classifications during the year (2019: same).

As at 31 December 2020, leasehold land and buildings located in the PRC amounting to HK\$197,935,000 (2019: HK\$189,388,000) are pledged to secure bank borrowings as set out in Note 25.

17 物業、廠房及設備(續)

附註:(續)

使用重大的無法觀察輸入數據進行公平值計量 (第三級)(續)

(c) 位於中國之工業物業單位(續) 於二零二零年十二月三十一日,如每平方 米單位重置成本下降5%,對其他綜合收益 的影響將為港幣18,850,000元(二零一九 年:港幣15,256,000元)減少。每平方米單 位重置成本越低,公平值越低。

年內,租賃土地及樓宇的公平值層級分類 並無轉換(二零一九年:相同)。

於二零二零年十二月三十一日,位於中國 的租賃土地及樓宇共值港幣197,935,000 元(二零一九年:港幣189,388,000元)已 抵押作為銀行貸款之抵押,詳情見附註25。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

18 RIGHT-OF-USE ASSETS/LEASE LIABILITIES

18 資產使用權╱租賃負債

(a) 綜合財務狀況表內確認的金額

(a) Amounts recognised in the consolidated statement of financial position

The consolidated statement of financial position shows the following amounts relating to the leases in respect of office premises:

綜合財務狀況表列示的下列金額與 辦公室物業之租賃有關:

		As at 31 December 於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Right-of-use assets	資產使用權
Offices premises	辦公室物業	384	1,569
Lease liabilities	租賃負債
Non-current	非流動	–	404
Current	流動	404	1,205
		404	1,609

No additions to the right-of-use assets during the year ended 31 December 2020 (2019: same).

截至二零二零年十二月三十一日止 年度,資產使用權並無增加(二零 一九年:相同)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

18 資產使用權及租賃負債(續) (b) 綜合損益表內確認的金額 綜合損益表列示的下列金額與辦公 室物業之租賃有關: 18 RIGHT-OF-USE ASSETS AND LEASE LIABILITIES (continued) (b) Amounts recognised in the consolidated statement of profit or loss The consolidated statement of profit or loss shows the following amounts relating to the leases in respect of office premises: Year ended 31 December 截至十二月三十一日止年度 2020 2019 二零二零年 二零一九年 HK\$'000 HK\$'000 港幣千元 港幣千元 Continuing operations 持續經營業務 Depreciation of right-of-use assets (Note 9) 資產使用權的折舊費用 (附註9) 1,152 1,199 Interest expense on lease liabilities (Note 11) 租賃負債的利息費用(附註11) 55 115

The total cash outflow for leases during the year ended 31 December 2020 is HK\$1,216,000 (2019: HK\$1,312,000).

(c) The Group's leasing activities and how these are accounted for

The Group leases various offices. Rental contracts are typically made for fixed periods of 2 to 3 years (2019: 1 to 3 years).

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose any covenants other than the security interests in the leased assets that are held by the lessor. Leased assets may not be used as security for borrowing purposes.

截至二零二零年十二月三十一日止年 度因租賃發生的現金流出合計為港 幣1,216,000元( 二 零 一 九 年: 港 幣 1,312,000元。

(c) 本集團的租賃活動及其會計處 理

本集團出租多處辦公室。租賃合同 通常是二至三年之固定期限(二零 一九年:一至三年)。

租賃期限應在每項租賃的基礎上進 行商談,並可能包含不同的條款和 條件。租賃協議不應包含出租人持 有的租賃資產的擔保利息之外的任 何契約。租賃資產不得用作借款擔 保。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

19 FINANCIAL INSTRUMENTS BY CATEGORY 19 金融工具分類

		As at 31 December 於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Financial assets at amortised cost: 按攤銷成本計算的金融資產:
Trade receivables	應收賬款	638,916	579,443
Bills receivable	應收票據	871,869	898,284
Deposits and other receivables	按金及其他應收款	3,031	3,038
Pledged bank deposits	已抵押銀行存款	84,308	53,921
Bank balances and cash	銀行結存及現金	93,262	47,811
		1,691,386	1,582,497

As at 31 December

		於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Financial liabilities at amortised cost:	按攤銷成本計算的金融負債:
Trade and bills payables	應付賬款及票據	761,321	707,010
Other payables and accruals	其他應付款及預提費用	242,603	139,125
Loan from a related company	來自一間關連公司之貸款	–	57,644
Bank borrowings	銀行貸款	492,460	610,702
Lease liabilities	租賃負債	404	1,609
		1,496,788	1,516,090
Financial liability at fair value through profit or loss:	按公平值計入損益之金融負債:
Convertible bonds	可換股債券	168,482	152,944
		1,665,270	1,669,034

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

20 LAND USE RIGHTS

20 土地使用權

The Group's interests in leasehold land and land use rights represent the prepaid lease payments under operating leases.

本集團於租賃土地和土地使用權的權益 指經營租約下的預付租賃款項。

			Prepaid
		Land use	lease
		rights	payments
			預付
		土地使用權	租賃款項
		HK\$'000	HK\$'000
		港幣千元	港幣千元
At 1 January 2019	於二零一九年一月一日	–	70,897
Reclassification on adoption	採納香港財務報告準則第16號
of HKFRS 16	重新分類	70,897	(70,897)
Additions	添置	10,616	–
Amortisation (Note 9)	攤銷(附註9)	(1,929)	–
Reversal of impairment losses (Note)	減值損失撥回(附註)	17,456	–
Exchange differences	匯兌差額	(1,413)	–
At 31 December 2019	於二零一九年十二月三十一日	95,627	–
At 1 January 2020	於二零二零年一月一日	95,627	–
Amortisation (Note 9)	攤銷(附註9)	(2,578)	–
Reversal of impairment losses (Note)	減值損失撥回(附註)	46,867	–
Exchange differences	匯兌差額	6,131	–
At 31 December 2020	於二零二零年十二月三十一日	146,047	–

Prepaid lease payments of HK\$70,897,000 have been reclassified to land use rights, being a part of the right-of-use assets of the Group as at 1 January 2019 upon the adoption of HKFRS 16. During the year, amortisation expense of HK\$2,578,000 (2019: HK\$1,929,000) has been included in costs of sales.

於二零一九年一月一日採納香港財務 報告準則第16號後,預付租賃款項港幣 70,897,000元已被重新分類至土地使用 權,成為本集團之資產使用權的一部分。 於 本 年 度,攤 銷 費 用 港 幣2,578,000元 (二零一九年:港幣1,929,000元)已計入 銷售成本。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

20 LAND USE RIGHTS (continued)

Note: In 2017, an impairment was made for the carrying amount of the land use rights for the three parcels of land amounted to HK\$72,500,000 after TESC received a notice regarding the rescission of confirmation letter in respect of successful bidding of state-owned land for construction from Tengzhou City Natural Resources Bureau (formerly known as Tengzhou Municipal State-owned Land Resources Bureau regarding the Lands in the state of being idle.

In August 2019, Tengzhou City Natural Resources Bureau issued the land use right certificates to the Group. The Group obtained the construction project planning permit on the total planned construction area of 46,614 square meters in late October 2019 for TESC Phase II Project. The Group commenced the construction work in November 2019 and made a reversal of impairment losses on land use rights of HK\$17,456,000 accordingly.

In October 2020, the Group has obtained the construction project planning permit on the remaining area of 118,545 square meters and made a reversal of impairment losses on land use rights of HK\$46,867,000, representing the carrying amount that would have been determined had no impairment losses been recognised in previous years.

As at 31 December 2020, land use rights amounting to HK\$62,175,000 (2019: HK\$59,591,000) are pledged to secure bank borrowings as set out in Note 25.

21 INTANGIBLE ASSETS Goodwill

Goodwill is allocated to one of the CGUs of the Group, comprising a subsidiary in the steel cord segment, JESC. The recoverable amount of a CGU is determined based on the value-in-use calculation.

Goodwill allocated to the CGU had been fully impaired as at 31 December 2020 (2019: same).

20 土地使用權(續)

附註:於二零一七年,滕州東方收到滕州市自然 資源局(前稱滕州市國土資源局)就該等正 值閒置的土地發出的解除《國有建設用地 掛牌出讓成交確認書》通知書後,就三幅 土地的土地使用權賬面值作出減值報港幣 72,500,000元。

於二零一九年八月,滕州市自然資源局發 出土地使用權證予本集團。本集團於二零 一九年十月下旬滕州東方二期項目取得了 總規劃建設面積為46,614平方米之建設工 程規劃許可證。在二零一九年十一月開始 建設工程,並相應撥回土地使用權減值損 失港幣17,456,000元。

於二零二零年十月,本集團已取得剩餘 面 積118,545平方米的建設工程規劃許 可證,並撥回土地使用權減值損失港幣 46,867,000元,為過往年度未確認減值損 失時本應確定的賬面值。

於二零二零年十二月三十一日,金額合 共港幣62,175,000元(二零一九年:港幣 59,591,000元)之土地使用權已抵押以作 銀行貸款的擔保,詳情載列於附註25。

21 無形資產 商譽

商譽已被分配至一現金產生單位,當中包 括鋼簾線分部中的一間附屬公司-嘉興 東方。現金產生單位的可收回金額乃根據 使用價值計算釐定。

於二零二零年十二月三十一日配予現金 產生單位的商譽已全數減值(二零一九 年:相同)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

22 INVENTORIES

22 存貨

		As at 31 December 於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Raw materials	原材料	118,351	104,954
Work in progress	在製品	59,388	58,719
Finished goods	製成品	82,888	144,508
Less: provision for inventories, net	減:存貨撥備,淨額	(13,989)	(13,200)
		246,638	294,981

The cost of inventories included in cost of sales during the year amounted to HK\$1,635,008,000 (2019: HK\$1,744,208,000), which included net reversal of provision for inventories of HK\$56,000 (2019: net provision for inventories of HK\$9,096,000).

年內銷售成本中的存貨成本為港幣 1,635,008,000元( 二 零 一 九 年: 港 幣 1,744,208,000元),其中包括存貨淨撥備 撥回港幣56,000元(二零一九年:存貨淨 撥備港幣9,096,000元)。

23 TRADE RECEIVABLES/BILLS RECEIVABLE

23 應收賬款╱應收票據

		As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Trade receivables (Note (a)) Less: provision for impairment losses on trade receivables	應收賬款(附註(a)) 減: 應收賬款減值損失撥備 (附註(c))	667,874	600,817
(Note (c))		(28,958)	(21,374)
Bills receivable (Note (b))	應收票據(附註(b))	638,916 871,869	579,443 898,284
		1,510,785	1,477,727

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

23 TRADE RECEIVABLES/BILLS RECEIVABLE

23 應收賬款╱應收票據(續)

(continued)

The carrying amounts of the trade receivables and bills receivable are denominated in the following currencies:

應收款項及應收票據的賬面值以下列貨 幣計值:

		As at 31 December 於十二月三十一日
		2020	2019
		二零二零年 HK\$'000	二零一九年 HK\$'000
		港幣千元	港幣千元
RMB	人民幣	1,386,211	1,387,151
US\$	美元	81,162	66,083
EUR	歐元	40,587	21,223
Others	其他貨幣	2,825	3,270
		1,510,785	1,477,727

(a) Trade receivables

(a) 應收賬款

The Group's credit terms to trade debtors range from 30 to 90 days. The aging analysis of the trade receivables primarily based on invoice date was as follows:

本集團一般授予其貿易客戶30日至 90日的信貸賬期。應收賬款主要根 據發票日期編制之賬齡分析呈列如 下:

		As at 31 December 於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Up to 90 days	上至90日	482,983	407,713
91 to 180 days	91至180日	129,328	156,211
Over 180 days	多於180日	55,563	36,893
		667,874	600,817

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

23 TRADE RECEIVABLES/BILLS RECEIVABLE (continued)

23 應收賬款╱應收票據(續)

(b) Bills receivable

(b) 應收票據

The aging analysis of the bills receivable primarily based on invoice date was as follows:

應收票據主要根據發票日期編制之 賬齡分析呈列如下:

			As at 31 December 於十二月三十一日
		2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Up to 90 days 91 to 180 days	上至90日 91至180日	142,861 374,399	103,376 320,396
Over 180 days	多於180日	354,609 871,869	474,512 898,284

As at 31 December 2020, the Group's bills receivable mature within one year (2019: same).

(i) Transferred receivables

The carrying amounts of the bills receivables include receivables which are transferred to banks or suppliers by discounting or endorsing those receivables on a full recourse basis. Under these arrangements, the Group has not transferred the significant risks and rewards relating to these receivables. The Group therefore continues to recognise the transferred assets in their entirety in its consolidated statement of financial position and measuring them at amortised cost.

於二零二零年十二月三十一日,本 集團的應收票據之到期日均在一年 之內(二零一九年:相同)。

(i) 應收款之轉讓

以下為本集團於報告期末按全 面追索基準貼現予銀行或背書 予供應商之應收票據。由於本 集團並未轉讓有關該等應收票 據之重大風險及回報,因此將 繼續確認該等應收票據之全部 賬面值及相關負債。該等財務 資產按已攤銷成本於本集團之 綜合財務狀況表內列賬。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

The relevant carrying amounts are as follows:

23 TRADE RECEIVABLES/BILLS RECEIVABLE

(b) Bills receivable (continued)

23 應收賬款╱應收票據(續)

(continued)

• (b) 應收票據(續)
• (i) Transferred receivables (continued)

(i) 應收款之轉讓(續) 有關賬面值如下:

		As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Bills receivable discounted to banks with full recourse	按全面追索基準已貼現予 銀行之應收票據
Transferred bills receivable Associated secured borrowings	轉讓應收票據 相關已抵押貸款	66,139 (66,139)	166,455 (166,455)
Bills receivable endorsed to	按全面追索基準已背書予
suppliers with full recourse	銀行之應收票據
Transferred bills receivable Associated trade payables	轉讓應收票據 相關應付賬款	643,976 (486,377)	565,186 (464,412)
Associated other payables	相關其他應付款	(111,190)	(71,714)
Associated prepayments	相關預付款	(46,409)	(29,060)

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

TRADE RECEIVABLES/BILLS RECEIVABLE (continued)		23	應收賬款╱應收票據(續)
(c) Provision for impairment losses on trade receivables		(c)	應收賬款減值損失撥備
The movement on the provision for impairment losses on trade receivables is as follows:		下:	應收賬款減值損失撥備的變動如
			As at 31 December 於十二月三十一日
			2020	2019
			二零二零年 HK\$'000	二零一九年 HK\$'000
			港幣千元	港幣千元
At beginning of the year	年初		21,374	20,124
Net impairment losses/(reversal of impairment losses) on trade receivables for the year	本年度應收賬款減值 損失淨額╱(減值損失撥回)
– Continuing operations	-持續經營業務		6,274	1,059
– Discontinued operation	-已終止經營業務(附註32)
(Note 32)			(67)	521
Exchange differences	匯兌差額		1,377	(330)
At end of the year	年末		28,958	21,374

The maximum exposure to credit risk at the reporting date is the carrying values of each class of receivables mentioned above. The Group did not hold any collateral as security for these receivables as at 31 December 2020 (2019: same).

於報告日期,最大信貸風險為上述 各類應收款項的賬面值。於二零二 零年十二月三十一日,本集團並無 持有任何抵押品作為該等應收款項 的抵押品(二零一九年:相同)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

24 PREPAYMENTS, DEPOSITS AND OTHER RECEIVABLES

24 預付款、按金及其他應收款

			As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Current portion	流動部分
Prepayments	預付款	21,453	26,425
Deposits	按金	645	615
Other receivables	其他應收款	2,386	2,423
		24,484	29,463
Non-current portion	非流動部分
Prepayments for the acquisition of property, plant and equipment	購買物業、廠房及設備之 預付款	33,951	10,464
		58,435	39,927

The carrying amounts of the prepayments, deposits and other receivables are denominated in the following currencies:

預付款、按金及其他應收款的賬面值以下 列貨幣計值:

			As at 31 December 於十二月三十一日
		2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
RMB US\$	人民幣 美元	57,534	38,656 4 5
EUR Others	歐元 其他貨幣	892	5 10 1,256
		58,435	39,927

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

25 ASSETS PLEDGED AS SECURITY

25 抵押資產

• The carrying amounts of assets pledged as security for bills payable (Note 27) and bank borrowings (Note 29) are:
• (i) leasehold land and buildings: HK\$197,935,000 (2019: HK\$189,388,000) (Note 17);
• (ii) pledged bank deposits: HK\$84,308,000 (2019: HK\$53,921,000) (Note 26); and
• (iii) land use rights: HK\$62,175,000 (2019: HK\$59,951,000) (Note 20).

26 PLEDGED BANK DEPOSITS/BANK BALANCES AND CASH

(a) Pledged bank deposits

• 已予抵押作為若干應付票據(附註27)及 銀行貸款(附註29)的保證之資產賬面值 為;
• (i) 租 賃 土 地 及 樓 宇: 港 幣 197,935,000元(二零一九年:港幣 189,388,000元)(附註17);
• (ii) 已抵押銀行存款:港幣84,308,000 元(二零一九年:港幣53,921,000 元)(附註26);及
• (iii) 土地使用權:港幣62,175,000元(二 零一九年:港幣59,951,000元)(附 註20)。

26 已抵押銀行存款╱銀行結存及現金

(a) 已抵押銀行存款

As at 31 December 於十二月三十一日
2020	2019
二零二零年	二零一九年
HK\$'000	HK\$'000
港幣千元	港幣千元

Pledged bank deposits	已抵押銀行存款	84,308	53,921

Pledged bank deposits represents bank deposits of the Group which were pledged to secure credit facilities on bills payable granted to subsidiaries of the Company for the purchase of raw materials. The carrying amounts of the Group's pledged deposits were denominated in RMB.

As at 31 December 2020, the effective interest rate on pledged bank deposits was 1.11% per annum (2019: 0.97% per annum).

已抵押銀行存款指本集團的銀行存 款已抵押以就本公司之附屬公司就 購買原材料之應付票據取得信貸額 度。本集團已抵押存款的賬面值以 人民幣計值。

於二零二零年十二月三十一日, 已抵押銀行存款的實際年利率為 1.11%(二零一九年:0.97%)。

綜合財務報告附註

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

26 PLEDGED BANK DEPOSITS/BANK BALANCES AND CASH (continued)

As at 31 December

			於十二月三十一日
			2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Bank balances and cash	銀行結存及現金		93,262	47,811
	The carrying amounts of bank balance and cash 銀行結存及現金的賬面值以下列貨 were denominated in the following currencies: 幣計值:
			As at 31 December 於十二月三十一日
			2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元

RMB	人民幣	49,425	30,209
HKD	港幣	3,157	16,161
US\$	美元	28,555	1,347
EUR	歐元	8,018	93
Others	其他貨幣	4,107	1
		93,262	47,811

As at 31 December 2020, funds of the Group amounting to HK\$68,423,000 (2019: HK\$31,455,000) were deposited in bank accounts opened with banks in the PRC where the remittance of funds is subject to foreign exchange control.

The maximum exposure to credit risk of the Group as at 31 December 2020 were HK\$93,180,000 (2019: HK\$47,743,000).

As at 31 December 2020, the effective interest rate on bank balances ranged from 0.01% to 1.15% per annum (2019: 0.01% to 1.15% per annum).

於二零二零年十二月三十一日,本 集團為數港幣68,423,000元(二零 一九年:港幣31,455,000元)存放 在中國境內銀行開立的銀行賬戶, 而有關資金的付匯受到外匯管制。

於二零二零年十二月三十一日, 本集團的最大信貸風險為港幣 93,180,000元(二零一九年:港幣 47,743,000元)。

於二零二零年十二月三十一日, 銀行結存實際年利率於0.01%至 1.15%( 二 零 一 九 年:0.01%至 1.15%)。

²⁶ 已抵押銀行存款╱銀行結存及現金 (續)

⁽b) Bank balance and cash

⁽b) 銀行結存及現金

綜合財務報告附註

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

27 TRADE AND BILLS PAYABLES/OTHER PAYABLES AND ACCRUALS

27 應付賬款及票據╱其他應付款及預 提費用

		As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Trade payables (Note (a))	應付賬款(附註(a))	598,401	569,666
Bills payable (Note (b))	應付票據(附註(b))	162,920	137,344
		761,321	707,010
Other payables and	其他應付款及預提費用-流動
accruals – current
Contract liabilities (Note (c))	合約負債(附註(c))	2,156	1,586
Accrued wages and salaries	預提工資及薪金	23,448	22,921
Other tax payables	其他應付稅項	10,370	5,472
Other accruals	其他預提	4,239	3,653
Other payables (including payables	其他應付款(包括物業、廠房及
for property, plant and equipment)	設備之應付款)	238,364	135,472
		278,577	169,104
		1,039,898	876,114

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

27 TRADE AND BILLS PAYABLES/OTHER PAYABLES AND ACCRUALS (continued)

27 應付賬款及票據╱其他應付款及預 提費用(續)

The carrying amounts of the Group's trade payables, bills payables and other payables and accruals are denominated in the following currencies:

本集團的應付賬款、應付票據及其他應付 款及預提費用的賬面值以下列貨幣計值:

		As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
HKD	港幣	4,964	5,689
RMB	人民幣	1,013,840	851,148
US\$	美元	19,850	15,929
EUR	歐元	754	400
Others	其他貨幣	490	2,948

1,039,898 876,114

(a) Trade payables

The Group's credit period granted by the suppliers is 30 days. The aging analysis of the trade payables primarily based on invoice date was as follows:

(a) 應付賬款

供應商一般授予本集團30日的信貸 賬期。應付賬款主要根據發票日期 編制之賬齡分析呈列如下:

		As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Up to 30 days	上至30日	350,820	135,320
31 to 90 days	31至90日	93,568	193,141
91 to 180 days	91至180日	113,003	203,667
181 to 365 days	181至365日	35,646	36,221
Over 365 days	多於365日	5,364	1,317
		598,401	569,666

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

The aging analysis of the bills payable primarily

based on invoice date was as follows:

27 TRADE AND BILLS PAYABLES/OTHER PAYABLES AND ACCRUALS (continued)

27 應付賬款及票據╱其他應付款及預 提費用(續)

(b) 應付票據

(b) Bills payable

應付票據主要根據發票日期編制之 賬齡分析呈列如下:

			As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Up to 30 days 31 to 90 days	上至30日 31至90日	23,763 46,516	34,607 50,827
91 to 180 days	91至180日	92,641	51,910
		162,920	137,344

The bills payable of the Group are secured by pledged bank deposits as disclosed in Note 25.

(c) Contract liabilities

As at 31 December 2020, the contract liabilities for the advanced payments received from the customers included in the other payables and accruals amounted to HK\$2,156,000 (2019: HK\$1,586,000).

The Group applied the practical expedient and does not disclose the information relating to the remaining performance obligations that have original expected durations of one year or less.

Revenue recognised during the year ended 31 December 2020 that was included in the contract liabilities balance at the beginning of the year amounted to HK\$1,586,000 (2019: HK\$125,000). The Group expects to deliver the goods to satisfy the remaining performance obligations of these contract liabilities within one year or less.

本集團之應付票據以已抵押銀行存 款(於附註25披露)作擔保。

(c) 合約負債

於二零二零年十二月三十一日,合 約負債之預收客戶款項於其他應付 款及預提費用共計港幣2,156,000 元( 二 零 一 九 年: 港 幣1,586,000 元)。

本集團採取了切實可行的方案,未 披露與原始預期期限為一年或一年 以下的剩餘履行義務有關的資訊。

截至二零二零年十二月三十一日止 年度確認的收入,包括在年初的合 約 負 債 中,共 計 港 幣1,586,000元 (二零一九年:港幣125,000元)。本 集團預計在一年或更短時間內交付 貨物,以履行上述合約負債的剩餘 履約責任。

綜合財務報告附註

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

28 LOAN FROM A RELATED COMPANY

28 來自一間關連公司之貸款

於二零一九年十二月三十一日,該金額代表來自 首鋼控股(香港)有限公司(「首控香港」)之一間全 資附屬公司-首鋼(香港)財務有限公司的貸款及 應付利息。本公司是首控香港的聯營公司。該貸 款為無抵押,以4.5%之年利率計算利息及於一 年內償還。截至二零二零年十二月三十一日止年

		As at 31 December 於十二月三十一日
		2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Loan from Shougang (Hong Kong) Finance Company Limited (Note)	來自首鋼(香港)財務有限公司之 貸款(附註)	–	57,644

Note:

附註:

As at 31 December 2019, the amount represented the loan from and interest payable to Shougang (Hong Kong) Finance Company Limited, a wholly owned subsidiary of Shougang Holding (Hong Kong) Limited ("Shougang HK"). The Company is an associate of Shougang HK. The loan was unsecured, bore interest at 4.5% per annum and repayable within one year. The loan has been settled in full during the year ended 31 December 2020.

29 BANK BORROWINGS

29 銀行貸款

度,該筆貸款已全額償還。

			As at 31 December 於十二月三十一日
		2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Bank loans Less: loan transaction costs	銀行貸款 減:貸款交易成本	426,321 –	445,840 (1,593)
Discounted bills with recourse	附追索權的已貼現票據	426,321	444,247
(Note 23(b)(i))	(附註23(b)(i))	66,139	166,455
		492,460	610,702
Non-current portion Current portion	非流動部分 流動部分	– 492,460	210,241 400,461
		492,460	610,702
Secured Unsecured	已抵押 無抵押	140,321 352,139	194,363 416,339
		492,460	610,702

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

29 BANK BORROWINGS (continued)

29 銀行貸款(續)

The Group's bank borrowings were repayable as follows:

本集團的銀行貸款款項償還如下:

As at 31 December

			於十二月三十一日
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Within 1 year	一年內	492,460	400,461
Between 1 and 2 years	一至二年間	–	210,241
		492,460	610,702

The carrying amounts of the bank borrowings approximate their fair values.

As at 31 December 2020, the carrying amount of fixed rate borrowings is HK\$492,460,000 (2019: HK\$610,702,000).

During the year ended 31 December 2020, bank borrowings of HK\$74,182,000 (2019: HK\$27,908,000) are secured by leasehold land and buildings and land use rights as disclosed in Note 25.

As at 31 December 2020, total undrawn facilities amounted to HK\$191,000 (2019: HK\$1,593,000).

The range of effective interest rates (which are also equal to contractual interest rates) on bank borrowings are as follows:

銀行借款的賬面值與其公平值相若。

於二零二零年十二月三十一日,固定利率 貸款之賬面值為港幣492,460,000元(二 零一九年:港幣610,702,000元)。

截至二零二零年十二月三十一日止年 度,本集團的銀行借款港幣74,182,000 元(二零一九年:港幣27,908,000元)是 用租賃土地及樓宇及以土地使用權作為 抵押並於附註25披露。

於二零二零年十二月三十一日,未提取融 資總額為港幣191,000元(二零一九年: 港幣1,593,000元)。

銀行貸款之實際利率(亦相等於訂約利 率)的範圍如下:

		As at 31 December 於十二月三十一日
	2020 二零二零年	2019 二零一九年
Effective interest rate per annum: 實際年利率: Fixed rate borrowings 固定利率貸款	1.05% to 5.00% 1.05%至5.00%	2.55% to 5.44% 2.55%至5.44%

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

29 BANK BORROWINGS (continued)

29 銀行貸款(續)

The carrying amounts of the Group's bank borrowings are denominated in the following currencies:

本集團銀行貸款的賬面值以下列貨幣計 值:

		As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
EUR	歐元	74,182	–
RMB	人民幣	418,278	610,702
		492,460	610,702

30 FINANCIAL LIABILITY AT FAIR VALUE THROUGH PROFIT OR LOSS

On 11 February 2019 (the "Issuance Date"), the Company issued convertible bonds in the principal amount of HK\$150,000,000 (the "Convertible Bonds") to Jingxi Holdings Limited ("Jingxi Holdings"), a whollyowned subsidiary of Shougang Group Co., Ltd. ("Shougang Group", which is the substantial shareholder with significant influence of the Company). The consideration for the Convertible Bonds was HK\$150,000,000. The Convertible Bonds are interest bearing at a coupon rate of 4% per annum.

The holder of the Convertible Bonds has:

• (i) the option to demand the Company to redeem the Convertible Bonds on 11 February 2022 (the "Original Maturity Date") at 100% of the principal amount outstanding plus any accrued and unpaid interest;
• (ii) the option to convert the Convertible Bonds into ordinary shares of the Company at a conversion price derived on certain conditions at the date of conversion falling 6 months from the Issuance Date and up to the maturity date of the Convertible Bonds; and

30 按公平值計入損益之金融負債

於二零一九年二月十一日(「發行日」),本 公司向京西控股有限公司(「京西控股」) (首鋼集團有限公司(「首鋼集團」,本公司 之主要股東)的全資附屬公司)發行本金 額為港幣150,000,000元的可換股債券 (「可換股債券」)。可換股債券的代價為 港幣150,000,000元。可換股債券按每年 4%的票面利率計息。

可換股債券持有人擁有:

• (i) 於二零二二年二月十一日(「原始到 期日」)要求本公司按100%尚未償 還本金額另加任何應計未付利息贖 回可換股債券的選擇;
• (ii) 按換股價(根據自可換股債券發行 日六個月起至到期日止的轉換日的 若干條件)將可換股債券轉換為本 公司普通股的選擇;及

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

30 FINANCIAL LIABILITY AT FAIR VALUE THROUGH PROFIT OR LOSS (continued)

• 30 按公平值計入損益之金融負債(續)
• (iii) 延長原始到期日兩次,每次一年至 二零二四年二月十一日止的選擇。

可換股債券,連同上述選擇,被指定為按 公平值計入損益之金融負債。

可換股債券初步按公平值確認為按公平 值計入損益之金融負債。於二零二零年 十二月三十一日,可換股債券的公平值由 獨立及具專業資格的估值師漢華評值有 限公司進行估值(二零一九年:相同)。該 估值的釐定採用布萊克‧斯科爾斯模型 與三叉法(二零一九年:相同)。

本年度按公平值計入損益之金融負債的 變動如下:

Year ended 31 December

			截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
At beginning of the year	年初	152,944	–
Issuance of convertible bonds	發行可換股債券	–	150,000
Settlement	償付	(6,000)	(3,000)
Fair value loss recognised in	已於損益內確認之
profit or loss (Note 8)	公平值虧損(附註8)	21,538	5,944
At end of the year	年末	168,482	152,944

(iii) the option to extend the Original Maturity Date twice by one year each to the date falling on 11 February 2024.

The Convertible Bonds, together with the abovementioned options, were designated as a financial liability at fair value through profit or loss.

The Convertible Bonds are initially recognised at the fair value as financial liability at fair value through profit or loss. The fair value of the Convertible Bonds as at 31 December 2020 was valued by the independent and professionally qualified valuer, Greater China Appraisal Limited (2019: same). The valuation was determined using Black-Scholes model with Trinominal Tree method (2019: same).

The movements of the financial liability at fair value through profit or loss during the year are as below:

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

30 FINANCIAL LIABILITY AT FAIR VALUE THROUGH PROFIT OR LOSS (continued) Note:

30 按公平值計入損益之金融負債(續)

附註:

Fair value measurements using significant unobservable inputs (level 3)

The key unobservable inputs used in the valuation of the financial liability at fair value through profit or loss are:

使用重大的無法觀察輸入數據進行公平值計量 (第三級) 採用主要無法觀察輸入數據評估按公平值計入損

益之金融負債為:

		Year ended 31 December	截至十二月三十日止年度
Valuation technique 估值方法	Unobservable inputs 無法觀察輸入數據	2020 二零二零年	2019 二零一九年
Black-Scholes model with Trinominal Tree method 布萊克‧斯科爾斯模型與三叉法	Dividend yield 股息收益率	4.50%	0%
	Volatility 波動率	46.10%	50.51%

If the dividend yield shifted upward by 1%, the impact on profit would be HK\$973,000 higher (2019: HK\$1,982,000 higher). The higher the dividend yield, the lower the fair value.

If the volatility shifted upward by 5%, the impact on profit would be HK\$3,235,000 lower (2019: HK\$3,601,000 lower). The higher the volatility, the higher the fair value.

31 DEFERRED INCOME TAX

Deferred income tax liabilities recognised in the consolidated statement of financial position and their movements during the year are as follows:

倘股息收益率上升1%,其影響將增加損益港幣 973,000元( 二 零 一 九 年: 增 加 港 幣1,982,000 元。股息收益率越高,公平值會低。

倘波動率上升5%,其影響將減少損益約港幣 3,235,000元(二零一九年:減少港幣3,601,000 元)。波動率越高,公平值會高。

31 遞延所得稅項

本年度於綜合財務狀況表中確認的遞延 所得稅負債及其變動情況如下:

		Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
At beginning of the year (Credited)/charged to profit or loss	年初 (計入)╱扣減損益	25,853 (6,370)	29,617 1,317
Credited to other comprehensive income	計入其他全面收益	(287)	(4,606)
Exchange differences	匯兌差額	1,143	(475)
At end of the year	年末	20,339	25,853

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

31 DEFERRED INCOME TAX (continued)

Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset tax recoverable against current income tax liabilities and when the deferred income taxes relate to the same fiscal authority.

The movement in deferred income tax assets and liabilities during the year is as follows:

Deferred income tax assets

31 遞延所得稅項(續)

遞延所得稅資產及負債在有關法定強制 執行權力抵消當期所得稅負債的可收回 稅款以及遞延所得稅與同一財政當局有 關時,予以抵消。

遞延所得稅資產及負債於本年度之變動 如下:

遞延所得稅資產

			Provision for
		Decelerated	impairment loss on	Provision		Total
		tax	trade	for		deferred tax
		depreciation	receivables	inventories	Tax losses	assets
			應收賬款
			減值損失			遞延稅項
		減速稅務折舊	撥備	存貨撥備	稅務虧損	資產總額
		HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000
		港幣千元	港幣千元	港幣千元	港幣千元	港幣千元
At 1 January 2019	於二零一九年一月一日	(15,210)	(24)	(1,225)	(2,132)	(18,591)
(Credited)/charged to profit or loss(計入)╱扣減損益		(281)	9	(1,001)	149	(1,124)
Exchange differences	匯兌差額	289	1	11	–	301
At 31 December 2019	於二零一九年十二月三十一日	(15,202)	(14)	(2,215)	(1,983)	(19,414)
At 1 January 2020	於二零二零年一月一日	(15,202)	(14)	(2,215)	(1,983)	(19,414)
Charged/(credited) to profit or loss扣減╱(計入)損益		497	(1,146)	191	(6,003)	(6,461)
Exchange differences	匯兌差額	(708)	(4)	(131)	(17)	(860)
At 31 December 2020	於二零二零年十二月三十一日	(15,413)	(1,164)	(2,155)	(8,003)	(26,735)

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

31 DEFERRED INCOME TAX (continued) Deferred income tax liabilities

31 遞延所得稅項(續) 遞延所得稅負債

			Withholding
			tax on
			distributable
			profit of	Total
		Revaluation	subsidiaries	deferred tax
		of properties	in the PRC	liabilities
			於中國附屬公司
			之可分配利潤	遞延稅項
		物業重估	之預提稅項	負債總額
		HK\$'000	HK\$'000	HK\$'000
		港幣千元	港幣千元	港幣千元
At 1 January 2019	於二零一九年一月一日	39,679	8,529	48,208
Charged to profit or loss	扣減損益	24	2,417	2,441
Credited to other	計入其他全面收益
comprehensive income		(4,606)	–	(4,606)
Exchange differences	匯兌差額	(776)	–	(776)
At 31 December 2019	於二零一九年
	十二月三十一日	34,321	10,946	45,267
At 1 January 2020	於二零二零年一月一日	34,321	10,946	45,267
Charged to profit or loss	扣減損益	5	86	91
Credited to other	計入其他全面收益
comprehensive income		(287)	–	(287)
Exchange differences	匯兌差額	2,003	–	2,003
At 31 December 2020	於二零二零年
	十二月三十一日	36,042	11,032	47,074

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

31 DEFERRED INCOME TAX (continued)

As at 31 December 2020, the Group has estimated unused tax losses of HK\$40,677,000 (2019: HK\$101,678,000) which shall expire in three to five years (2019: four to six years) and estimated unused tax losses of HK\$318,770,000 (2019: HK\$299,377,000) are available indefinitely for offsetting against future taxable profits of the companies in which the losses arise.

As at 31 December 2020, the Group has deductible temporary differences of HK\$190,248,000 (2019: HK\$215,125,000) which no deferred tax asset has been recognised, as it is not probable that taxable profit will be available against which the deductible temporary difference can be utilised.

32 DISCONTINUED OPERATION

In September 2019, the Group discontinued the processing and trading of copper and brass products business in the PRC. Accordingly, the financial results of the discontinued business are presented in the consolidated statement of profit or loss and consolidated statement of comprehensive income as discontinued operation in accordance with HKFRS 5 "Non-current Assets Held for Sales and Discontinued Operation" issued by the HKICPA. The financial performance presented is for the years ended 31 December 2020 and 2019.

31 遞延所得稅項(續)

於二零二零年十二月三十一日,本集團有 估計未動用稅項虧損為港幣40,677,000 元( 二 零 一 九 年: 港 幣101,678,000 元),有效期為三至五年(二零一九年: 四至六年),並估算未動用稅項虧損港 幣318,770,000元( 二 零 一 九 年: 港 幣 299,377,000元)可無限期用於抵銷相對 於其中的有產生虧損之公司的未來應稅 利潤。

於二零二零年十二月三十一日,本集團 有港幣190,248,000元(二零一九年:港 幣215,125,000元 )的可扣減短暫性差 異,因未能確定有否應課稅溢利可予以扣 減,故並無確認為遞延稅項資產。

32 已終止經營業務

在二零一九年九月,本集團已終止經營 於中國的銅及黃銅材料的加工及貿易業 務。據此,已終止經營業務之財務結果根 據香港會計師公會頒布的香港財務報告 準則第5號「持有待售之非流動資產及已 終止經營業務」按已終止經營業務呈列於 綜合損益表及綜合全面收益表中。所呈列 財務表現為截至二零二零年及二零一九 年十二月三十一日止年度。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

32 DISCONTINUED OPERATION (continued) 32 已終止經營業務(續)

		Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Other (losses)/gains, net Expenses Reversal of impairment losses/(net impairment losses) on financial	其他(虧損)╱收益,淨額 費用 金融資產減值損失 撥回╱(減值損失淨額)	(120) (659)	2 (3,018)
assets (Note 23(c)) Finance income, net	(附註23(c)) 財務收入,淨額	67 1	(521) 137
Loss before income tax Income tax expense (Note 12)	除所得稅前虧損 所得稅支出(附註12)	(711) –	(3,400) –
Loss from discontinued operation	來自已終止經營業務之虧損	(711)	(3,400)
Other comprehensive income/(loss) 其他全面收益╱(虧損) Exchange differences arising on translation into presentation currency	因換算呈列貨幣而產生的匯兌差額	2,542	(1,094)
Total comprehensive income/(loss) from discontinued operation	來自已終止經營業務之 全面收益╱(虧損)總額	1,831	(4,494)
Net cash (used in)/generated from operating activities Net cash generated from investing	經營活動(動用)╱產生 之現金淨額 投資活動產生之現金淨額	(579)	402
activities Net cash used in financing activities	融資活動動用之現金淨額	– (35)	140 (37)
Net (decrease)/increase in cash and cash equivalents	現金及現金等值項目 之(減少)╱增加淨額	(614)	505

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

33 SHARE CAPITAL

33 股本

	Number of
		shares
		股份數目
		Thousand	HK\$'000
		千股	港幣千元
Issued and fully paid:	已發行及繳足股本:
At 1 January 2019,	於二零一九年一月一日、
31 December 2019 and	二零一九年十二月三十一日及
1 January 2020	二零二零年一月一日	1,922,901	1,191,798
Cancellation of shares	註銷股份	(23,876)	–
At 31 December 2020	於二零二零年十二月三十一日	1,899,025	1,191,798

Share buy-back

During the year ended 31 December 2020, the Company re-purchased 20,086,000 (2019: 3,790,000) ordinary shares on-market in order to achieve an increase in the consolidated net asset value and/or earnings per share. Together with the shares repurchased during the year ended 31 December 2019, a total of 23,876,000 shares were cancelled during the year ended 31 December 2020. The buy-back and cancellation were approved by shareholders at last year's annual general meeting, and the payment was made out of the Company's distributable profits with no reduction of capital in compliance with HKCO.

The shares were acquired at an average price of HK\$0.209 (2019: HK\$0.186) per share, with prices ranging from HK\$0.196 to HK\$0.240 (2019: HK\$0.176 to HK\$0.202). The total amount of HK\$4,209,000 (2019: HK\$705,000) paid to acquire the shares has been deducted from retained earnings within shareholders' equity.

回購股份

截至二零二零年十二月三十一日止年 度,本公司在市場上回購了20,086,000 股普通股( 二 零 一 九 年:3,790,000), 以增加每股綜合資產淨值及╱或每股盈 利。連同截至二零一九年十二月三十一日 止年度回購的股份,截至二零二零年十二 月三十一日止年度共註銷了23,876,000 股股份。回購及註銷股份是在去年的股東 周年大會上獲得股東批准,款項從本公司 的可分配利潤中扣除,而當中沒有減少資 本,符合香港公司條例。

回購股份的平均價格為每股港幣0.209元 (二零一九年:港幣0.186元),價格範圍 為港幣0.196元至港幣0.240元(二零一九 年:港幣0.176元至港幣0.202元)。回購 股份所支付的總額為港幣4,209,000元 (二零一九年:港幣705,000元),已從股 東權益中的保留溢利中扣除。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

34 COMMITMENTS

(a) Capital commitments

34 承擔 (a) 資本承擔

	As at 31 December 於十二月三十一日
	2020 二零二零年 HK\$'000	2019 二零一九年 HK\$'000
	港幣千元	港幣千元
Commitments in respect of the 購買物業、廠房及設備之承擔 acquisition of property, plant and equipment
– contracted for but not -已訂約但尚未
provided in the consolidated 於綜合財務報告作出撥備 financial statements	223,163	143,513

(b) Operating lease commitments The Group as lessor

At the end of the reporting period, the Group had contracted with tenants for the following future minimum lease payments:

(b) 經營租賃承擔 本集團作為出租者

於報告期末,本集團與租戶約定之 未來最低應收租金總額如下:

	As at 31 December 於十二月三十一日
	2020 二零二零年 HK\$'000 港幣千元	2019 二零一九年 HK\$'000 港幣千元
Within one year 一年內 In the second to fifth year 第二至第五年內	1,279	1,530
inclusive	533 1,812	1,747 3,277

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

35 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS

35 綜合現金流量表附註

• (a) Reconciliation of profit before income tax to cash flows used in operating activities
• (a) 將除所得稅前溢利調整為經營 活動動用現金

		Year ended 31 December 截至十二月三十一日止年度
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Cash flows from operating activities	經營活動產生之現金流量
Continuing operations	持續經營業務
Profit before tax	除稅前溢利	145,911	115,770
Adjustments for:	經調整:
Net impairment loss on	應收賬款減值損失淨額
trade receivables		6,274	1,059
(Reversal of provision for)/	存貨(撥備撥回)╱撥備,淨額
provision for inventories, net		(56)	9,096
Amortisation of land use rights	土地使用權之攤銷	2,578	1,929
Changes in fair value of investment properties	投資物業公平值之變動	2,062	718
Change in fair value of a	按公平值計入損益之
financial liability at fair value	金融負債公平值之變動
through profit or loss		21,538	5,944
Depreciation of property, plant	物業、廠房及設備之折舊
and equipment		88,588	100,860
Depreciation of right	資產使用權的折舊費用
of-use assets		1,152	1,199
Impairment losses on property,	物業、廠房及設備之減值損失
plant and equipment		16,234	9,745
Reversal of impairment losses	土地使用權之減值損失撥回
on land use rights Losses on disposal of property,		(46,867)	(17,456)
plant and equipment, net	出售物業、廠房及設備之 虧損,淨額	20,443	995
Finance costs	財務成本	28,307	65,569
Finance income	財務收入	(10,819)	(865)

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

35 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

(continued)

(a) Reconciliation of profit before income tax to cash flows used in operating activities

⁽a) 將除所得稅前溢利調整為經營 活動動用現金(續)

			Year ended 31 December 截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Operating cash flows before	流動資金變動前之
movements in working capital	經營現金流量	275,345	294,563
Changes in working capital:	營運資金變動:
Inventories	存貨	63,711	9,190
Trade receivables	應收賬款	(27,460)	93,911
Bills receivable	應收票據	75,566	3,249
Prepayments, deposits and other	預付款、按金及其他應收款
receivables		6,740	(2,150)
Trade and bills payables	應付賬款及票據	8,350	(92,181)
Other payables and accruals	其他應付款及預提費用	95,978	39,385
Cash generated from operations	經營產生之現金	498,230	345,967

³⁵ 綜合現金流量表附註(續)

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

35 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

(a) Reconciliation of profit before income tax to cash flows used in operating activities (continued)

In the consolidated statement of cash flows, proceeds from disposal of property, plant and equipment:

35 綜合現金流量表附註(續)

(a) 將除所得稅前溢利調整為經營 活動動用現金(續)

於綜合現金流量表中,出售物業、 廠房及設備之所得款項如下:

			Year ended 31 December 截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Continuing operations	持續經營業務
Net book amount	賬面淨值	26,230	2,576
Losses on disposals of property,	出售物業、廠房及設備之虧損
plant and equipment		(20,443)	(995)
Proceeds from disposals of	出售物業、廠房及設備之
property, plant and equipment	所得款項	5,787	1,581

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

35 NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

• 35 綜合現金流量表附註(續)
• (b) Reconciliation of liabilities arising from financing activities

The table below details changes in the Group's liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group's consolidated statement of cash flows as cash flows from financing activities.

(b) 由融資活動產生的負債之對賬

下表詳列本集團由融資活動產生的 負債之變動,包括現金及非現金變 動。由融資活動產生的負債指該等 現金流已或未來現金流將會於本集 團綜合現金流量表被分類融資活動 產生現金流的負債。

		Bank borrowings 銀行貸款 HK\$'000 港幣千元	Interest payables classified under other payables 歸類於其他 應付款項下 的應付利息 HK\$'000 港幣千元	Discounted bills with recourse 附追索權的 已貼現票據 HK\$'000 港幣千元	Loan from a related company 來自一間 關連公司 之貸款 HK\$'000 港幣千元	Financial liability at fair value through profit or loss 按公平值 計入損益之 金融負債 HK\$'000 港幣千元	Lease liabilities 租賃負債 HK\$'000 港幣千元	Total 合計 HK\$'000 港幣千元
		(Note 29) (附註29)		(Note 29) (附註29)	(Note 28) (附註28)	(Note 30) (附註30)	(Note 18) (附註18)
At 1 January 2019 Cash inflow Cash outflow Exchange differences Non-cash movement	於二零一九年一月一日 現金流入 現金流出 匯兌差額 非現金流動	712,294 479,616 (743,214) (5,992) 1,543	7,904 – (37,640) (200) 31,134	162,157 275,060 (267,075) (3,687) –	226,358 – (170,395) 763 918	– 150,000 (3,000) – 5,944	2,803 – (1,312) – 118	1,111,516 904,676 (1,222,636) (9,116) 39,657
At 31 December 2019	於二零一九年 十二月三十一日	444,247	1,198	166,455	57,644	152,944	1,609	824,097
At 1 January 2020 Cash inflow Cash outflow Exchange differences Non-cash movement	於二零二零年一月一日 現金流入 現金流出 匯兌差額 非現金流動	444,247 489,569 (535,138) 26,050 1,593	1,198 – (21,078) 36 20,232	166,455 266,660 (371,629) 4,653 –	57,644 – (58,313) (1) 670	152,944 – (6,000) – 21,538	1,609 – (1,260) – 55	824,097 756,229 (993,418) 30,738 44,088
At 31 December 2020	於二零二零年 十二月三十一日	426,321	388	66,139	–	168,482	404	661,734

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

36 SHARE-BASED PAYMENT TRANSACTIONS

(a) The Company's share option scheme

A share option scheme (the "2002 Scheme") was adopted by the shareholders of the Company at the annual general meeting held on 7 June 2002. Under the 2002 Scheme, the board of directors (the "Board") of the Company shall, subject to and in accordance with the provisions of the 2002 Scheme and the Listing Rules, grant share options to any eligible participant to subscribe for shares in the capital of the Company. A new share option scheme (the "2012 Scheme") was adopted and the 2002 Scheme was terminated by the shareholders of the Company at the annual general meeting held on 25 May 2012.

The 2012 Scheme became effective on 29 May 2012 upon the Listing Committee of the Stock Exchange granting approval of the listing of, and permission to deal in, any shares falling to be issued and allotted upon the exercise of the share options granted.

The share options which have been granted and remained outstanding under the 2002 Scheme remain valid and exercisable in accordance with their terms of issue.

The Company operates the 2002 Scheme (subsequently replaced by the 2012 Scheme) for the purpose of providing incentives and rewards to eligible participants for their contributions to the Group or potential contribution to the Group. Eligible participants of the 2002 Scheme include any director (including executive and nonexecutive), executive, officer, employee or shareholder of the Company or any of the subsidiaries or any of the associates or any of the joint ventures and any supplier, customer, consultant, adviser, agent, partner or business associate who will contribute or has contributed to the Group.

36 以股份支付支出之交易

• (a) 本公司之購股權計劃
• 本公司股東於二零零二年六月七日 舉行之股東周年大會上採納了購股 權計劃(「二零零二計劃」)。根據二 零零二計劃,本公司董事會(「董事 會」)可根據及按照二零零二計劃 的條款及上市規則授予任何合資格 人士購股權以認購本公司之股份。 本公司股東並於二零一二年五月 二十五日舉行之股東周年大會上採 納了新購股權計劃(「二零一二計 劃」)及終止了二零零二計劃。

繼聯交所上市委員會批准授出之購 股權獲行使而將予發行及分配之任 何股份上市及買賣,二零一二計劃 於二零一二年五月二十九日起生效。

根據二零零二計劃項下已授出但尚 未行使的購股權仍然有效,並可根 據其發行條款予以行使。

本公司設立二零零二計劃(其後被 二零一二計劃取代)旨在鼓勵及獎 勵合資格人士對本集團所作出之貢 獻或可能作出之貢獻。二零零二計 劃之合資格人士包括本公司或其任 何附屬公司或其任何聯營公司或其 任何共同控制企業之任何董事(包 括執行及非執行)、行政人員、高級 職員、僱員或股東及任何供應商、 客戶、諮詢人、顧問、代理人、合夥 人或業務關連人士,該等將會或已 向本集團作出貢獻之人士。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

36 SHARE-BASED PAYMENT TRANSACTIONS (continued)

36 以股份支付支出之交易(續)

(a) The Company's share option scheme (continued)

(a) 本公司之購股權計劃(續)

Qualifying grantees of the 2012 Scheme include any director (including executive, non-executive and independent non-executive), executive, officer, employee, shareholder of the Company or any of the subsidiaries or any of the associated companies or any of the joint ventures and any supplier, customer, consultant, adviser, agent, partner or business associate, who will contribute or has contributed to the development and growth of the Group. Unless otherwise cancelled or amended, the 2012 Scheme will remain in force for a period of ten years from 29 May 2012.

The maximum number of unexercised share options currently permitted to be granted under the 2012 Scheme is 189,902,455 shares which represented 10% of the total number of issued shares of the Company as at the date of this annual report. The maximum number of shares issuable under the share options to each qualifying grantee in the 2012 Scheme within any 12-month period is limited to 1% of the total number of shares of the Company in issue under the 2012 Scheme. Any further grant of share options in excess of this limit is subject to shareholders' approval in a general meeting.

The offer of a grant of share options under the 2012 Scheme may be accepted within 60 days from the date of the offer, upon payment of a nominal consideration of HK\$1 by the grantee. An option may be exercised under the 2002 Scheme and 2012 Scheme at any time within 10 years from the date of grant of the options or may be determined by the Board at its absolute discretion. The minimum period for which an option must be held before it can be exercised will be determined by the Board at its discretion.

二零一二計劃之合資格承授人包括 本公司或其任何附屬公司或其任何 聯營公司或其任何共同控制企業之 任何董事(包括執行、非執行及獨立 非執行)、行政人員、高級職員、僱 員或股東及任何供應商、客戶、諮 詢人、顧問、代理人、合夥人或業務 關連人士,該等將會或已向本集團 發展及增長作出貢獻之人士。除非 被註銷或修改以外,二零一二計劃 由二零一二年五月二十九日起計十 年內有效。

根 據 二 零 一 二 計 劃,現 時 容 許 發 行之尚未行使購股權總數上限為 189,902,455股,代表本公司於本年 報獲批准日期之已發行股份總數目 的10%。根據二零一二計劃,每名 合資格承授人於任何十二個月期間 內獲授予的購股權時所涉及發行的 股份總數目,不得超過本公司已發 行股份總數目的1%。任何超逾此上 限之購股權之授予須得到股東於股 東大會上之批准。

根據二零一二計劃獲授予購股權人 士可於獲授予購股權日期起計六十 日內接納,並須支付港幣1元之象 徵式代價。根據二零零二計劃及二 零一二計劃,購股權可於購股權授 出日期起計十年內或董事會全權酌 情決定購股權可予行使之期限內行 使。董事會可酌情決定購股權可獲 行使前必須持有之最短期限。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

36 SHARE-BASED PAYMENT TRANSACTIONS (continued)

36 以股份支付支出之交易(續)

(a) The Company's share option scheme (continued)

The exercise price per share in relation to an option under the 2002 Scheme and 2012 Scheme shall be a price to be determined by the Board and shall be no less than the highest of (a) the official closing price of the shares of the Company as stated in the daily quotation sheets issued by the Stock Exchange on the date on which the option is offered to an eligible participant/a qualifying grantee, which must be a business day; or (b) the official average closing price of the shares of the Company as stated in the daily quotation sheets issued by the Stock Exchange for the 5 business days immediately preceding the date of offer of option to an eligible participant/a qualifying grantee.

Pursuant to the 2002 Scheme and 2012 Scheme, share options held by any eligible participant/ qualifying grantee will lapse automatically upon their termination of employment but the Board is empowered to extend the exercise period of the concerned share options at its discretion. Relevant exercise period of share options held by the eligible participant whose employment terminated during the previous years was extended and approved by the Board. Such change does not constitute modification of the 2002 Scheme.

Share options do not confer rights on the holders to dividends or to vote at shareholders' meeting.

(a) 本公司之購股權計劃(續)

有關二零零二計劃及二零一二計劃 購股權之股份之每股行使價將由董 事會釐訂,及並不得低於下列兩項 中最高(a)於向合資格人士╱合資格 承授人授出購股權當日(必須為營 業日)的收市價,即於聯交所刊發 之報告所載本公司股份之官方收市 價;或(b)緊接向合資格人士╱合資 格承授人授出購股權日期前五個營 業日於聯交所刊發之報告所載本公 司股份之平均官方收市價。

根據二零零二計劃及二零一二計 劃,任何合資格人士╱合資格承授 人當終止僱傭合約,其持有之購股 權將自動失效,但董事會有權延長 該購股權的行使期限。有關任何合 資格人士於過往年度終止僱傭合約 時持有之購股權期限已被董事會延 長及批准。該修改並不會構成二零 零二計劃之修改。

購股權之持有人並不授予收取股息 或於股東大會上投票之權利。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

36 以股份支付支出之交易(續) (a) 本公司之購股權計劃(續) 36 SHARE-BASED PAYMENT TRANSACTIONS (continued) (a) The Company's share option scheme

二零零二計劃

截至二零一九年十二月三十一日止 年度,根據二零零二計劃,亦無授 出之購股權已被行使或註銷,惟有 4,000,000股 購 股 權 失 效。於 二 零 一九年十二月三十一日,沒有未行 使的購股權。

下表披露合資格人士關於二零零二 計劃持有本公司購股權資料及其截 至二零一九年十二月三十一日止年 度之持股變動:

		Number of share options for 2019 二零一九年購股權數目
Grantees	At 1.1.2019 於二零一九年	Lapsed during the year	At 31.12.2019 於二零一九年	Date of grant	Exercise period	Exercise Price per share
獲授予購股權人士	一月一日	年內失效	十二月三十一日	授出日期 (Note a) (附註a)	行使期間	每股行使價 HK\$ 港幣
Employees other than directors of the Company	1,200,000	(1,200,000) (Note b) (附註b)	–	13.7.2009	13.7.2009 – 12.7.2019	0.680
僱員(本公司董事除外)	1,200,000	(1,200,000) (Note b) (附註b)	–	13.7.2009	1.1.2010 – 12.7.2019	0.680
	1,600,000	(1,600,000) (Note b) (附註b)	–	13.7.2009	1.1.2011-12.7.2019	0.680
	4,000,000	(4,000,000)	–
Exercisable at year end 於年底可行使			–
Weighted average exercise price 加權平均行使價	0.680	0.680	–

(continued) 2002 Scheme

During the year ended 31 December 2019, no share options granted under the 2002 Scheme had been exercised or cancelled while 4,000,000 share options have lapsed. No share options were outstanding as at 31 December 2019.

The following table discloses details of the Company's share options granted under 2002 Scheme held by eligible participants and movements in such holdings in relation thereto during the year ended 31 December 2019:

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

36 SHARE-BASED PAYMENT TRANSACTIONS (continued)

• (a) The Company's share option scheme (continued) Notes:
• a The vesting period of the share options is from the date of grant to the beginning of the exercise period.
• b A total of aggregate 4,000,000 share options lapsed due to expiry of the exercise period.

2012 Scheme

No share options were granted, exercised, cancelled or lapsed under the 2012 Scheme during the years ended 31 December 2019 and 2020.

37 RELATED PARTY TRANSACTIONS

The Company's substantial shareholder with significant influence is Shougang HK, which is a wholly owned subsidiary of Shougang Group Co., Ltd., a state-owned enterprise under the direct supervision of the Beijing State-owned Assets Supervision and Administration Commission. Shougang Group Co., Ltd., together with its associates (as defined in the Listing Rules) other than the Group, will hereinafter be referred to as the "Shougang Group". Accordingly, the Group is significantly influenced by Shougang Group, which is part of a larger group of companies ultimately controlled by the PRC government.

Apart from the transactions with Shougang Group, the Group also conducts businesses with other PRC government-related entities in the ordinary course of business.

• 36 以股份支付支出之交易(續)
• (a) 本公司之購股權計劃(續)

附註:

• a. 購股權授出日期起至行使期限開始 歸屬。
• b. 合共有4,000,000股購股權由於行使 期間之期滿而失效。

二零一二計劃

截至二零一九年及二零二零年十二 月三十一日止年度,並無購股權根 據二零一二計劃授出、行使、註銷 或失效。

37 關連人士之交易

本公司之主要股東有重要影響的是首控 香港(乃首鋼集團有限公司(北京國有資 產監督管理委員會直接監督之國有企業) 的全資附屬公司)的聯營公司。除本集團 外,首鋼集團有限公司及其聯繫人(根 據上市規則定義)以下將被稱為「首鋼集 團」。因此,本集團受首鋼集團之重大影 響。首鋼集團為中國政府最終控制之一系 列大型企業之一部份。

除與首控香港集團的交易,本集團在日常 業務過程中亦與其他中國政府關連實體 進行業務。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

37 RELATED PARTY TRANSACTIONS (continued)

• 37 關連人士之交易(續)
• (i) Transactions with PRC governmentrelated entities
• (i) 與中國政府關連實體之交易
• (a) Transactions with Shougang Group

(a) 與首鋼集團之交易

		Year ended 31 December 截至十二月三十一日止年度
	2020 二零二零年	2019 二零一九年
	HK\$'000 港幣千元	HK\$'000 港幣千元
Continuing operations 持續經營業務
Consultancy fees paid 支付顧問費	2,760	1,110
Issuance of convertible bonds 發行可換股債券	–	150,000
Settlement of convertible bonds 償付可換股債券	6,000	3,000
Loans repayment 償還貸款	50,000	171,166
Interest expenses on loans 貸款之利息支出	670	8,261

(b) Transactions with other PRC government-related entities

The Group has entered into various transactions, including sales to, purchases from and other operating expenses paid to other PRC government-related entities. In the opinion of the directors of the Company, these transactions are considered as individually insignificant to the operation of the Group during the reporting period.

In addition, the Group has entered into various banking transactions, including deposits placements, borrowings and other general banking facilities, with certain banks and financial institutions which are statecontrolled entities in its ordinary course of business. In view of the nature of those banking transactions, the directors of the Company are of the opinion that separate disclosure would not be meaningful.

(b) 與其他中國政府關連實體之 交易

本集團與其他中國政府關連 實體訂立多項交易,包括銷售 予、採購自及支付其他經營費 用予其他中國政府關連實體。 本公司董事認為,該等交易個 別地被視為對本集團於報告期 內的營運並不顯著。

此外,本集團與屬於國家控制 的若干銀行及財務機構於日常 業務過程中訂立多項交易,包 括存款、借貸及其他一般銀行 融資。鑒於該等銀行交易之性 質,本公司董事認為獨立披露 並無意義。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

37 RELATED PARTY TRANSACTIONS (continued)

• 37 關連人士之交易(續)
• (ii) Transactions with non-PRC governmentrelated entities
• (ii) 與非中國政府關連實體之交易

(a) Transaction with a shareholder

(a) 與一位股東的交易

		Year ended 31 December 截至十二月三十一日止年度
		2020	2019
		二零二零年	二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Continuing operations	持續經營業務
Royalty expenses	專利費用	845	–

(b) Compensation of key management personnel

The key management of the Group comprises all executive directors of the Company, details of their emoluments are disclosed in Notes 10 and 39, and share-based payment transactions are disclosed in Note 36, respectively. The emoluments of the directors of the Company are decided by the remuneration committee of the Company having regard to individual's performance, the Group's performance and profitability, remuneration benchmark in the industry and prevailing market condition.

(b) 主要管理人員之報酬

本集團之主要管理人員包括本 公司所有執行董事,其酬金及 以股份支付支出之交易詳情已 分別於附註10及39與附註36 作出披露。本公司董事之酬金 由本公司之薪酬委員會按照個 人表現,本集團之業績及盈利 狀況,亦以業界指標及當時市 場環境而釐訂。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

38 本公司的財務狀況表及儲備 38 STATEMENT OF FINANCIAL POSITION AND RESERVES OF THE COMPANY

Statement of financial position of the Company

本公司財務狀況表

			As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000	HK\$'000
		港幣千元	港幣千元
Assets	資產
Non-current asset	非流動資產
Interests in subsidiaries	於附屬公司之權益	1,565,718	1,493,646
Current assets Prepayments and other receivables	流動資產 預付款及其他應收款	421	847
Amounts due from subsidiaries	應收附屬公司款項	254,075	168,294
Bank balances and cash	銀行結存及現金	23,122	14,199
Total current assets	流動資產總額	277,618	183,340
Total assets	資產總額	1,843,336	1,676,986
Equity and liabilities	權益及負債
Equity attributable to owners of	歸屬於本公司擁有人權益
the company
Share capital	股本	1,191,798	1,191,798
Reserves	儲備	480,728	254,399
Total equity	權益總額	1,672,526	1,446,197

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

38 STATEMENT OF FINANCIAL POSITION AND RESERVES OF THE COMPANY (continued)

38 本公司的財務狀況表及儲備(續)

Statement of financial position of the Company (continued)

本公司財務狀況表(續)

			As at 31 December 於十二月三十一日
		2020 二零二零年	2019 二零一九年
		HK\$'000 港幣千元	HK\$'000 港幣千元
Current liabilities	流動負債
Other payables and accruals	其他應付款及預提費用	2,328	20,201
Loan from a related company	來自一間關連公司之貸款	–	57,644
Financial liability at fair value	按公平值計入損益之金融負債
through profit or loss	金融負債	168,482	152,944
Total current liabilities	流動負債總額	170,810	230,789
Total equity and liabilities	權益及負債總額	1,843,336	1,676,986

The statement of financial position of the Company was approved by the Board of Directors on 22 March 2021 and was signed on its behalf:

本公司財務狀況表已於二零二一年三月 二十二日獲董事會批准,並由以下董事代 為簽署:

Su Fanrong 蘇凡荣	Li Jinping 李金平
DIRECTOR	DIRECTOR
董事	董事

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

38 STATEMENT OF FINANCIAL POSITION AND RESERVES OF THE COMPANY (continued)

38 本公司的財務狀況表及儲備(續)

Movement in the Company's reserves

本公司儲備的變動

				Share
		Capital	Translation	option	Retained
		reserve	reserve	reserve	profits	Total
		資本儲備	匯兌儲備	購股權儲備	保留溢利	合計
		HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000
		港幣千元	港幣千元	港幣千元	港幣千元	港幣千元
At 1 January 2019	於二零一九年一月一日	23,990	82,418	1,080	80,548	188,036
Comprehensive income	全面收益
Profit for the year	本年度利潤	–	–	–	87,583	87,583
Other comprehensive income	其他全面收益
Exchange difference	因換算呈列貨幣而產生
arising on translation	的匯兌差額
into presentation
currency		–	(20,515)	–	–	(20,515)
Total comprehensive	本年度全面
(loss)/income	(虧損)╱收入總額
for the year		–	(20,515)	–	87,583	67,068
Lapse of share options	購股權失效	–	–	(1,080)	1,080	–
Buy-back of shares	股份回購	–	–	–	(705)	(705)
At 31 December 2019
	於二零一九年 十二月三十一日	23,990	61,903	–	168,506	254,399

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

38 STATEMENT OF FINANCIAL POSITION AND RESERVES OF THE COMPANY (continued)

38 本公司的財務狀況表及儲備(續)

Movement in the Company's reserves (continued)

本公司儲備的變動(續)

		Capital reserve 資本儲備 HK\$'000 港幣千元	Translation reserve 匯兌儲備 HK\$'000 港幣千元	Share option reserve 購股權儲備 HK\$'000 港幣千元	Retained profits 保留溢利 HK\$'000 港幣千元	Total 合計 HK\$'000 港幣千元
At 1 January 2020	於二零二零年一月一日	23,990	61,903	–	168,506	254,399
Comprehensive income Profit for the year Other comprehensive income	全面收益 本年度利潤 其他全面收益	–	–	–	193,276	193,276
Exchange difference arising on translation into presentation currency	因換算呈列貨幣而產生 的匯兌差額	–	56,326	–	–	56,326
Total comprehensive income for the year	本年度全面收入總額	–	56,326	–	193,276	249,602
Buy-back of shares Dividend paid	股份回購 已付股息	– –	– –	– –	(4,209) (19,064)	(4,209) (19,064)
At 31 December 2020	於二零二零年 十二月三十一日	23,990	118,229	–	338,509	480,728

Note: The capital reserve of the Company represents the benefit of acquiring a shareholder's loan from a previous shareholder upon the acquisition of a subsidiary in previous years.

附註:本公司之資本儲備源自於以前年度收購一 間附屬公司時購入一位前股東的股東貸款 之利益。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

39 BENEFITS AND INTERESTS OF DIRECTORS (DISCLOSURES REQUIRED BY SECTION 383 OF THE HONG KONG COMPANIES ORDINANCE (CAP. 622), COMPANIES (DISCLOSURE OF INFORMATION ABOUT BENEFITS OF DIRECTORS) REGULATION (CAP. 622G) AND LISTING RULES)

(a) Directors' emoluments

The emoluments of each director of the Company is set out as below.

For the year ended 31 December 2020:

• 39 董事福利及權益(香港公司條例 (第622章)第383條、公司(披露董 事利益資料)規例(第622G章)及 上市規則規定的披露)
• (a) 董事之酬金 每名董事之酬金載列如下:

截至二零二零年十二月三十一日止 年度:

		Emoluments paid or receivable in respect of a person's services as a director, whether of the Company or its subsidiary undertaking
		Fees 袍金 HK\$'000 港幣千元	Salaries 薪金 HK\$'000 港幣千元	就個人擔任董事(不論是否為本公司或其附屬公司業務)職務已付或應收酬金 Discretionary bonuses 酌情花紅 HK\$'000 港幣千元	Allowances and benefits in kind 津貼及 實物福利 HK\$'000 港幣千元	Employer's contribution to a retirement benefit scheme 僱主的退休 福利計劃供款 HK\$'000 港幣千元	Total 合計 HK\$'000 港幣千元
Executive directors	執行董事
Su Fanrong	蘇凡荣	–	2,642	–	30	18	2,690
Tang Cornor Kwok Kau (Note a)	鄧國求(附註a)	–	1,816	–	8	17	1,841
Li Jinping (Note b)	李金平(附註b)	–	–	–	–	–	–
Ye Qian (Note c)	葉芊(附註c)	–	–	–	–	–	–
Non-executive directors Liao Jun (Note d) Independent non-executive directors	非執行董事 廖駿(附註d) 獨立非執行董事	150	–	–	–	–	150
Yip Kin Man, Raymond	葉健民	240	–	–	–	–	240
Law Yui Lun (Note e)	羅裔麟(附註e)	–	–	–	–	–	–
Lam Yiu Kin	林耀堅	240	–	–	–	–	240
Feng Yaoling (Note f)	馮耀嶺(附註f)	240	–	–	–	–	240
		870	4,458	–	38	35	5,401

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

• 39 BENEFITS AND INTERESTS OF DIRECTORS (DISCLOSURES REQUIRED BY SECTION 383 OF THE HONG KONG COMPANIES ORDINANCE (CAP. 622), COMPANIES (DISCLOSURE OF INFORMATION ABOUT BENEFITS OF DIRECTORS) REGULATION (CAP. 622G) AND LISTING RULES) (continued) (a) Directors' emoluments (continued)
• 39 董事福利及權益(香港公司條例 (第622章)第383條、公司(披露董 事利益資料)規例(第622G章)及 上市規則規定的披露)(續)
• (a) 董事之酬金(續) 截至二零一九年十二月三十一日止 年度:

For the year ended 31 December 2019:

Emoluments paid or receivable in respect of a person's services as a director, whether of the Company or its subsidiary undertaking 就個人擔任董事(不論是否為本公司或其附屬公司業務)職務已付或應收酬金

						Employer's
				Discretionary	Allowances and benefits in	contribution to a retirement
		Fees	Salaries	bonuses	kind	benefit scheme	Total
					津貼及	僱主的退休
		袍金	薪金	酌情花紅	實物福利	福利計劃供款	合計
		HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000	HK\$'000
		港幣千元	港幣千元	港幣千元	港幣千元	港幣千元	港幣千元
Executive directors	執行董事
Su Fanrong	蘇凡荣	–	2,220	–	27	18	2,265
Tang Cornor Kwok Kau (Note a)	鄧國求(附註a)	–	1,982	330	7	18	2,337
Non-executive directors	非執行董事
Ye Qian (Note c)	葉芊(附註c)	–	–	–	–	–	–
Liao Jun (Note d)	廖駿(附註d)	150	–	–	–	–	150
Independent non-executive	獨立非執行董事
directors
Yip Kin Man, Raymond	葉健民	240	–	–	–	–	240
Law Yui Lun (Note e)	羅裔麟(附註e)	240	–	–	–	–	240
Lam Yiu Kin	林耀堅	240	–	–	–	–	240
		870	4,202	330	34	36	5,472

None of the directors received or will receive any emoluments in respect of a person accepting office as a director during the year (2019: Nil).

年內,概無任何董事就接納董事職位而收 取或將收取任何酬金(二零一九年:無)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

• 39 BENEFITS AND INTERESTS OF DIRECTORS (DISCLOSURES REQUIRED BY SECTION 383 OF THE HONG KONG COMPANIES ORDINANCE (CAP. 622), COMPANIES (DISCLOSURE OF INFORMATION ABOUT BENEFITS OF DIRECTORS) REGULATION (CAP. 622G) AND LISTING RULES) (continued)
• (a) Directors' emoluments (continued) Notes:
  • (a) Mr. Tang Cornor Kwok Kau resigned as an executive director on 30 November 2020.
  • (b) Mr. Li Jinping was appointed as an executive director on 1 January 2020.
  • (c) Mr. Ye Qian was appointed as a non-executive director on 28 June 2019 and was re-designated as an executive director on 1 January 2020.
  • (d) Mr. Liao Jun resigned as a non-executive director on 15 January 2021.
  • (e) Mr. Law Yui Lun resigned as an independent nonexecutive director on 1 January 2020.
  • (f) Mr. Feng Yaoling was appointed as an independent non-executive director on 1 January 2020.

(b) Directors' retirement benefits and termination benefits

None of the directors received or will receive any retirement benefits or termination benefits during the year (2019: same).

(c) Consideration provided to or receivable by third parties for making available directors' services

During the year ended 31 December 2020, the Company does not pay consideration to any third parties for making available directors' services (2019: same).

• 39 董事福利及權益(香港公司條例 (第622章)第383條、公司(披露董 事利益資料)規例(第622G章)及 上市規則規定的披露)(續)
• (a) 董事之酬金(續) 附註:
  • (a) 鄧國求先生於二零二零年十一月 三十日辭任執行董事。
  • (b) 李金平先生於二零二零年一月一日 獲委任為執行董事。
  • (c) 葉芊先生於二零一九年六月二十八 日獲委任為非執行董事,及於二零 二零年一月一日獲調任為執行董事。
  • (d) 廖駿先生於二零二一年一月十五日 辭任非執行董事。
  • (e) 羅裔麟先生於二零二零年一月一日 辭任獨立非執行董事。
  • (f) 馮耀嶺先生於二零二零年一月一日 獲委任為獨立非執行董事。
• (b) 董事退休福利及離職福利 年內,概無董事已經或將會收取任 何退休福利或離職福利(二零一九 年:相同)。
• (c) 就獲取董事服務向第三方支付 之代價

截至二零二零年十二月三十一日 止年度,本公司並無就獲取董事服 務而向任何第三方支付代價(二零 一九年:相同)。

FOR THE YEAR ENDED 31 DECEMBER 2020 截至二零二零年十二月三十一日止年度

• 39 BENEFITS AND INTERESTS OF DIRECTORS (DISCLOSURES REQUIRED BY SECTION 383 OF THE HONG KONG COMPANIES ORDINANCE (CAP. 622), COMPANIES (DISCLOSURE OF INFORMATION ABOUT BENEFITS OF DIRECTORS) REGULATION (CAP. 622G) AND LISTING RULES) (continued)
• (d) Information about loans, quasi-loans and other dealings in favour of directors, controlled bodies corporate by and connected entities with such directors As at 31 December 2020, there are no loans, quasi-loans and other dealing arrangements in

favour of directors, controlled bodies corporate by and connected entities with such directors (2019: same).

(e) Directors' material interests in transactions, arrangements or contracts

No transactions, arrangements and contracts in relation to the Company's business to which the Company was a party and in which a director of the Company had a material interest, whether directly or indirectly, subsisted at the end of the year or at any time during the year (2019: same).

40 COMPARATIVE FIGURES

Certain comparative figures have been reclassified in order to conform to current year presentation.

• 39 董事福利及權益(香港公司條例 (第622章)第383條、公司(披露董 事利益資料)規例(第622G章)及 上市規則規定的披露)(續)
• (d) 有關以董事、該等董事之受控制 法團及關連實體為受益人之貸 款、準貸款及其他交易之資料

於二零二零年十二月三十一日,概 無以董事、或該等董事之受控制法 團及關連實體為受益人之貸款、準 貸款及其他交易安排(二零一九年: 相同)。

(e) 董事於交易、安排或合約之重大 權益

本公司概無就其業務訂立本公司為 其中訂約方及本公司董事直接或間 接擁有重大權益而於年終或年內任 何時間仍然存續的重大交易、安排 或合約(二零一九年:相同)。

40 比較數字

若干比較數字已重新分類,以符合本年度 的呈列方式。

SUMMARY OF INVESTMENT PROPERTIES 投資物業摘要

Particulars of the investment properties held by the Group as at 31 December 2020 are as follows:

本集團於二零二零年十二月三十一日持有之投 資物業詳情如下:

	Properties 物業	Use 用途	Group interest 本集團之 權益	Category of lease 租約類別
1.	House 5–18 and carport District 5, Legend Garden Villas No. 89 Capital Airport Road Chaoyang District, Beijing PRC 中國北京巿 朝陽區首都機場路89號 麗京花園別墅第5區 5-18號屋連車位	Residential 住宅	100%	Medium term lease 中期租約
2.	Workshop Nos. 16, 17 and 18 on 12th Floor Honour Industrial Centre No. 6 Sun Yip Street Chai Wan, Hong Kong 香港柴灣新業街6號 安力工業中心12樓 16, 17及18室	Industrial and commercial 工商業	100%	Long term lease 長期租約
3.	Apartment Unit 4-14-5, Level 2 Block 4-8, District 4 Legend Garden Villas No. 89 Capital Airport Road Chaoyang District, Beijing PRC 中國北京市 朝陽區首都機場路89號 麗京花園別墅第4區 第4-8座2樓 4-14-5號室	Residential 住宅	100%	Medium term lease 中期租約
4.	Unit 5E on Level 5 and Car Park No. 39 on level 2 Jinmin Building No. 8 Zunyi Road South Changning District, Shanghai PRC 中國上海巿 長寧區遵義南路8號 錦明大廈 5樓5E室 及2樓車位第39號	Commercial and residential 商業及住宅	100%	Medium term lease 中期租約

In this report, unless the context otherwise requires, the following terms shall have the meaning set out below:

在本報告中,除文義另有所指,下列詞彙具有 如下涵義:

"2002 Scheme"	A share option scheme adopted and terminated by the Shareholders at the annual general meetings held on 7 June 2002 and 25 May 2012 respectively
「二零零二計劃」	股東分別於二零零二年六月七日及二零一二年五月二十五日舉行之股東周年 大會上採納及終止之購股權計劃
"2012 Scheme"	A share option scheme adopted by the Shareholders at the annual general meeting held on 25 May 2012 and became effective on 29 May 2012
「二零一二計劃」	股東於二零一二年五月二十五日舉行之股東周年大會上採納並於二零一二年 五月二十九日起生效之購股權計劃
"Articles" 「章程細則」	the Articles of Association of the Company 本公司組織章程細則
"BeijingWest Industries"	BeijingWest Industries International Limited (Stock Code: 2339), a company incorporated in Cayman Islands with limited liability, the shares of which are listed on the Main Board of the Stock Exchange
「京西重工」	京西重工國際有限公司(股份代號:2339),於開曼群島註冊成立之有限公司, 其股份在聯交所主板上市
"Bekaert"	NV Bekaert SA, a company incorporated under the laws of Belgium, a
「Bekaert」	substantial shareholder (as defined under the SFO) of the Company NV Bekaert SA,根據比利時法律註冊成立之公司,為本公司之主要股東(根 據證券及期貨條例定義)
"Bekaert Combustion"	Bekaert Combustion Technology B.V., a wholly owned subsidiary of Bekaert, is a substantial shareholder (as defined under the SFO) of the Company
「Bekaert Combustion」	Bekaert Combustion Technology B.V.,Bekaert之全資附屬公司,為本公 司之主要股東(根據證券及期貨條例定義)
"Board"	the board of Directors
「董事會」	本公司董事會
"Board Diversity Policy"	Shougang Concord Century Holdings Limited's Board Diversity Policy adopted on 26 August 2013 and revised from time to time thereafter
「董事會成員多元化政策」	首長寶佳集團有限公司之董事會成員多元化政策自二零一三年八月二十六日 採納並於隨後不時修訂
"Casula"	Casula Investments Limited, a subsidiary of Shougang HK
「Casula」	Casula Investments Limited,首控香港之附屬公司

DEFINITIONS 釋義

"Code"	the Corporate Governance Code as set out in Appendix 14 to the Listing Rules
「守則」	上市規則附錄十四所載之《企業管治守則》
"Companies Ordinance" 「公司條例」	the Companies Ordinance (Chapter 622 of the Laws of Hong Kong) 香港法例第622章公司條例
"Company"/"Shougang Century"	Shougang Concord Century Holdings Limited, a company incorporated in Hong Kong with limited liability and the Shares of which are listed on the Main Board of the Stock Exchange
「本公司」╱「首長寶佳」	首長寶佳集團有限公司,一間於香港註冊成立之有限公司及其股份於聯交所 主板上市
"Continuous Disclosure Obligation Policy"	Shougang Concord Century Holdings Limited's Continuous Disclosure Obligation Policy adopted on 28 March 2011 and revised from time to
「持續披露責任政策」	time thereafter 首長寶佳集團有限公司之持續披露責任政策自二零一一年三月二十八日採納 並於隨後不時修訂
"Conversion Price" 「換股價」	HK\$0.33 per Conversion Share (subject to adjustment) 每股換股股份港幣0.33元(可予調整)
"Conversion Rights" 「轉換權」	the rights to convert the Convertible Bonds into Conversion Shares 將可換股債券轉換為換股股份的權利
"Conversion Share(s)"	the Share(s) to be issued by the Company upon the holder(s) of the Convertible Bonds exercising its/their Conversion Rights attached to the Convertible Bonds in accordance with the terms and conditions of the instrument constituting the Convertible Bonds
「換股股份」	本公司於可換股債券持有人根據構成可換股債券工具的條款及條件行使彼或 彼等可換股債券附帶的轉換權後將予發行的股份
"Convertible Bonds"	the 4% unsecured fixed coupon convertible bonds in the aggregate principal amount of HK\$150,000,000 due 2022 (extendable to 2024) issued by the Company to Jingxi Holdings pursuant to the Subscription Agreement
「可換股債券」	本公司根據認購協議發行予京西控股的本金總額為港幣150,000,000元於二 零二二年到期(可延長至二零二四年)的4%無抵押固定票息可換股債券
"Director(s)" 「董事」	the director(s) of the Company 本公司董事
"Employment Ordinance" 「僱傭條例」	the Employment Ordinance (Chapter 57 of the Laws of Hong Kong) 香港法例第57章僱傭條例

DEFINITIONS 釋義

"EUR"	Euros, the lawful currency of the participating states within the European Union
「歐元」	歐元,歐盟成員國的法定貨幣
"Fair Union"	Fair Union Holdings Limited, a wholly owned subsidiary of Shougang HK
「Fair Union」	Fair Union Holdings Limited,首控香港之全資附屬公司
"Group" 「本集團」	the Company and its subsidiaries 本公司及其附屬公司
"HKD/HK\$" 「港幣╱港元」	Hong Kong dollars, the lawful currency of Hong Kong 港幣,香港法定貨幣
"Hong Kong" 「香港」	the Hong Kong Special Administrative Region of the PRC 中國香港特別行政區
"Internal Control Manual"	Shougang Concord Century Holdings Limited's internal management and control manual adopted in 1999 and revised from time to time thereafter
「內部監控指引」	首長寶佳集團有限公司之內部管理及監控指引自一九九九年採納並於隨後不 時修訂
"JESC"	Jiaxing Eastern Steel Cord Co., Ltd., a company incorporated under the laws of the PRC and an indirect wholly owned subsidiary of the Company
「嘉興東方」	嘉興東方鋼簾線有限公司,根據中國法律註冊成立之公司,為本公司之間接 全資附屬公司
"Jingxi Holdings"	Jingxi Holdings Limited, a company incorporated under the laws of Hong Kong with limited liability and a wholly-owned subsidiary of
「京西控股」	Shougang Fund 京西控股有限公司,一間根據香港法例註冊成立的有限公司,為首鋼基金的 全資附屬公司
"Li Ka Shing Foundation"	Li Ka Shing Foundation Limited, a "charitable body" within the meaning of the Inland Revenue Ordinance (Chapter 112 of the Laws of Hong Kong), a substantial shareholder (as defined under the SFO) of the Company
「李嘉誠基金會」	李嘉誠基金會有限公司,為香港法例第112章稅務條例所界定之「慈善團體」, 為本公司之主要股東(根據證券及期貨條例定義)
"Listing Rules" 「上市規則」	the Rules Governing the Listing of Securities on the Stock Exchange 聯交所證券上市規則

"Model Code"	Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Listing Rules
「標準守則」	上市規則附錄十《上市發行人董事進行證券交易的標準守則》
"Policy for Nomination of a Director of the Company"	Shougang Concord Century Holdings Limited's Policy for Nomination of a Director of the Company adopted on 18 December 2018 and
「提名公司董事政策」	revised from time to time thereafter 首長寶佳集團有限公司之提名公司董事政策於二零一八年十二月十八日採納 並於隨後不時修訂
"PRC"	the People's Republic of China, which for the purpose of this report shall exclude Hong Kong, Macau and Taiwan
「中國」	中華人民共和國,就本報告而言,不包括香港、澳門及台灣
"Richson" 「Richson」	Richson Limited, a subsidiary of Shougang HK Richson Limited,首控香港之附屬公司
"RMB" 「人民幣」	Renminbi, the lawful currency of the PRC 人民幣,中國法定貨幣
"SCCHL Code"	Shougang Concord Century Holdings Limited's Model Code for Securities Transactions by Directors and Specified Individuals adopted in 2004 and revised from time to time thereafter
「首長寶佳守則」	首長寶佳集團有限公司之董事及特定人士進行證券交易的標準守則自二零零 四年採納並於隨後不時修訂
"SCCHL Corporate Governance Code" 「首長寶佳企業管治守則」	Shougang Concord Century Holdings Limited's Code on Corporate Governance (revised from time to time) 首長寶佳集團有限公司之企業管治守則(不時修訂)
"SFO"	Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
「證券及期貨條例」	香港法例第571章證券及期貨條例
"Share(s)" 「股份」	ordinary share(s) of the Company 本公司之普通股
"Shareholder(s)" 「股東」	shareholder(s) of the Company 本公司之股東
"Shougang Fund"	Beijing Shougang Fund Co., Ltd., a company established in the PRC with limited liability and a wholly-owned subsidiary of Shougang Group
「首鋼基金」	北京首鋼基金有限公司,一間於中國成立的有限責任公司,為首鋼集團的全 資附屬公司

"Shougang Grand"	Shougang Concord Grand (Group) Limited (Stock Code: 730), a company incorporated in Bermuda with limited liability, the shares of which are
「首長四方」	listed on the Main Board of the Stock Exchange 首長四方(集團)有限公司(股份代號:730),於百慕達註冊成立之有限公司, 其股份在聯交所主板上市
"Shougang Group"	Shougang Group Co., Ltd. (a state-owned enterprise under the direct supervision of the Beijing State-owned Assets Supervision and Administration Commission), a controlling shareholder (as defined under
「首鋼集團」	the SFO) of the Company 首鋼集團有限公司(一間於中國成立的國有企業,受北京國有資產監督管理委 員會直接監督),為本公司一名控股股東(根據證券及期貨條例定義)
"Shougang HK"	Shougang Holding (Hong Kong) Limited, a company incorporated in Hong Kong with limited liability, a substantial shareholder (as defined under the SFO) of the Company
「首控香港」	首鋼控股(香港)有限公司,於香港註冊成立之有限公司,為本公司之主要股 東(根據證券及期貨條例定義)
"Stock Exchange/HKEX" 「聯交所」	The Stock Exchange of Hong Kong Limited 香港聯合交易所有限公司
"Subscription"	the subscription for the Convertible Bonds by Jingxi Holdings pursuant to the terms and subject to the conditions of the Subscription Agreement
「認購事項」	京西控股根據認購協議的條款並受其條件規限認購可換股債券
"Subscription Agreement"	the subscription agreement dated 18 December 2018 entered into between the Company and Jingxi Holdings in relation to the Subscription
「認購協議」	本公司及京西控股就認購事項訂立的日期為二零一八年十二月十八日的認購 協議
"TESC"	Tengzhou Eastern Steel Cord Co., Ltd., a company incorporated under the laws of the PRC and an indirect wholly owned subsidiary of the
「滕州東方」	Company 滕州東方鋼簾線有限公司,根據中國法律註冊成立之公司,為本公司之間接 全資附屬公司
"TESC Phase II Project" 「滕州東方二期項目」	the construction project of production lines 建設生產線的項目
"USD" 「美元」	United States dollars, the lawful currency of the United States of America 美元,美國之法定貨幣
"%" 「%」	per cent. 百分比