During the year under review, the Group's revenue amounted to HK$992.9 million (2018: HK$997.1 million), profit for the year was HK$93.9 million (2018: HK$93.8 million) and net profit margin slightly increased to 9.5%. The Board has resolved to propose the payment of a final cash dividend of HK5.0 cents per share for the Year.
In 2019, due to the markets being still at a consolidation phase as the Group gave a huge boost to production capacity in 2018, and the slowdown of economic growth in China and Europe, the total sales revenue of carrageenan and agar-agar products, contributing to approximately 90% of the sales revenue of the Group, remained broadly flat.
The Group has continued its strategy to gradually increase the proportion of overseas sales, as it achieved a remarkable increase in the revenue attributable to the Korean and Indonesian markets, resulting in an increase of 44.7% in revenue in the Asian markets (excluding China) for the Year. In 2019, the sales in China and the overseas accounted for 44.2% and 55.8% of its annual sales, respectively (2018: 47.7% and 52.3%).
In the year under review, the Group succeeded in expanding the market for quick-dissolve agar-agar products for use in dairy products through strengthening its product research and development capability and marketing efforts, which drove the sales revenue of quick-dissolve agar-agar products to soar 253.7% in the Year, and making it one of the Group's products that offers highest gross profit margin. Moreover, the Group has expanded the use of its products in the application of pet foods, while the development of konjac gum was gaining momentum, and the markets for gel-type air fresheners and beauty products such as face masks were also further developed. The Group expects the diversity of end products and applications to be key areas for its future expansion.
After the end of the reporting year, the outbreak of the Coronavirus Disease 2019 ("COVID-19") has impacted the Group's production, but the Group managed to meet sales and production needs as it had sufficient stock of raw materials and finished products. Currently, the Group's facilities have already resumed production, and the Group will closely monitor the situation and evaluate its impact on its financial position and operating results.
Mr. CHAN Kam Chung, Executive Director, Chairman and Chief Executive Officer of Green Future Food Hydrocolloid, said, "We are prudently optimistic about the prospects in 2020. The business of manufacturing and technical development of all-natural performance materials nurtures strong ties with customers all along their value chain of product innovation. Further, as our hydrocolloid products are mainly used in the applications of foods and daily necessities, we expect the demand to remain stable with ample potential. Furthermore, we believe that with the continuous launch of new end products to the market, the prospect of hydrocolloid products is promising."
About Green Future Food Hydrocolloid Marine Science Company Limited
Green Future Food Hydrocolloid Marine Science Company Limited is a leading seaweed-based and plant-based hydrocolloid producer in China and global market. Its principal products include agar-agar, carrageenan and konjac products, and their respective blended products, all derived from natural sources like seaweed or other plants. Seaweed- and plant-based hydrocolloid products are commonly used in the food processing, consumer goods and cosmetic industries. In 2018, in terms of sales volume and value, the Group ranked first among all agar-agar producers in China and the world and placed second among carrageenan producers in China.
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