Company Overview - The Group has over 20 years of experience in providing customized interconnect solutions, with manufacturing facilities located in Shanghai, Suzhou, and Huizhou, PRC[5]. - The Group's product offerings include a wide variety of copper and optical fiber cable assemblies and networking cables, tailored to individual customer specifications[5]. - The Group serves established PRC and international customers across various market sectors, including telecommunications and medical equipment[5]. Strategic Goals - The Group aims to become a Tier-1 supplier in the 5G telecommunications, data communication, healthcare, transport, and industrial sectors[8]. - The Group's strategic focus includes expanding its market presence and enhancing product offerings in high-performance interconnect products[8]. - The Group's vision is to be recognized as a "Preferred Supplier" capable of delivering world-class quality products and services consistently[7]. Financial Performance - Revenue for the year ended 31 March 2021 was HK2,780.2 million in 2020[12]. - Adjusted total profit for the year was HK173.6 million in the previous year[12]. - Basic earnings per share (adjusted) rose to 12.5 Hong Kong cents, up 33.0% from 9.4 Hong Kong cents in 2020[12]. - Cash generated from operations decreased significantly by 68.5% to HK601.9 million[12]. - The gross profit margin improved to 19.3%, up 1.3 percentage points from 18.0% in the previous year[12]. - The net profit margin (adjusted) increased to 7.7%, a rise of 1.5 percentage points from 6.2%[12]. - The return on shareholders' funds surged to 26.6%, an increase of 13.3 percentage points from 13.3%[12]. Acquisitions and Growth - The acquisition of Linkz Cables Limited was completed on 30 June 2020, aimed at expanding the income base and leveraging opportunities in 5G technology[14]. - The acquisition of the Target Group, a leading networking cables manufacturer in China, was completed on June 30, 2020, significantly enlarging the Group's revenue base and diversifying its customer base[24]. - The Group's acquisition of the Target Group allowed for an increased product mix and accelerated development of new products such as high-speed and hybrid cables[36]. Market Demand and Trends - The demand for medical cables is expected to remain strong due to ongoing COVID-19 impacts, positively affecting the Group's financial performance[16]. - The Group anticipates continued growth in the medical equipment sector, driven by ongoing demand for medical cables[54]. - Orders for new 5G products in the telecommunication sector have gradually increased, improving profit margins[36]. Research and Development - The company is focusing on enhancing research and development capabilities to broaden its product mix and maintain sustainable growth[14]. - The Group continues to enhance its research and development capabilities to optimize its product portfolio and capitalize on opportunities presented by 5G technology[23]. - Research and development expenses increased by HK88.4 million in FY2021, with R&D expenses as a percentage of revenue rising from 2.5% to 2.9%[38]. Corporate Governance - The Group is committed to maintaining high standards of corporate governance and compliance, as outlined in its governance reports[4]. - The Company has adopted the Model Code for securities transactions by Directors, with full compliance reported[165]. - The Company emphasizes good corporate governance as essential for effective management and enhancing shareholder value[163]. Environmental and Sustainability Initiatives - The Group is committed to becoming a benchmark enterprise in "green manufacturing" and digital production, contributing to the construction of 5G+ smart factories in the region[26][28]. - The company has implemented various environmental and sustainability measures, such as using LED lighting and heat recovery systems in its facilities[86]. - The Group is committed to reducing carbon emissions and has implemented various sustainability initiatives, such as using LED lighting and adopting heat recovery systems[83]. Stakeholder Engagement - The company emphasizes stakeholder engagement as a crucial tool for identifying significant environmental, social, and governance (ESG) issues, which aids in developing effective policies for sustainable growth[199]. - Engagement methods with customers include emails, direct dialogues, customer visits, and annual business reviews, ensuring effective communication and support[200]. - The Group's internal stakeholders include employees and management, while external stakeholders encompass customers, suppliers, and community groups[198]. Employee and Management Overview - The Group's final dividend is proposed at HK27.6 million, consistent with the previous year's dividend[107]. - The total employee benefit expenses for FY2021 were approximately HK340.4 million in the previous financial year[78]. - The executive team includes experienced individuals, such as the CEO with extensive experience in the electronics industry since the 1980s[89]. Risk Management - The Company has established risk management procedures aimed at providing reasonable assurance against material errors, losses, or fraud[190]. - Risk identification and assessment are performed or updated annually, with results documented in the Risk Registry for Board and Management reviews[190]. - The Group has a policy on the disclosure of inside information to prevent breaches of statutory disclosure requirements[191].
汇聚科技(01729) - 2021 - 年度财报