Financial Performance - For the year ended December 31, 2021, the Group's revenue was approximately HK$928.79 million, an increase of 8.11% from HK$859.10 million in 2020[16] - The Group reported a net loss of approximately HK$177.29 million for the year, compared to a profit of HK$5.46 million in 2020, resulting in a loss per share of HK2.75 cents[16] - Gross profit for the Group was approximately HK$161.08 million, up from HK$143.67 million in 2020[16] - The Group achieved revenue of approximately HK$928.79 million for the year ended December 31, 2021, representing an increase of 8.11% compared to HK$859.1 million in 2020[20] - The gross profit for the Group was approximately HK$161.08 million, up from HK$143.67 million in 2020[20] - The Group reported a net loss of approximately HK$177.29 million, a significant decline from a net profit of HK$5.46 million in 2020, primarily due to increased administrative expenses and impairment losses[20] Revenue Breakdown - The trading of food products business recorded revenue of approximately HK$399.54 million, accounting for 43.02% of total revenue, down from 50.31% in 2020[23] - The rental business generated revenue of approximately HK$271.66 million, representing 29.25% of total revenue, with a gross profit of approximately HK$98.24 million[25] - The financial leasing business recorded revenue of HK$20.47 million, accounting for 2.20% of total revenue, with a gross profit of approximately HK$17.69 million[26] - The mineral products business achieved revenue of approximately HK$237.11 million, accounting for 25.53% of total revenue, with a gross profit of approximately HK$36.02 million[32] Cost Management and Strategy - The Group plans to control costs and focus on organic growth and acquisitions when suitable opportunities arise[17] - The Group plans to continue cost control and focus on internal expansion and acquisitions to strengthen its business[20] - Management is implementing cost control measures to improve operating results and cash flows[193] Debt and Financial Position - Total indebtedness at year-end was HK$1,224.56 million, down from HK$1,317.17 million in 2020[12] - Shareholders' equity decreased to HK$1,128.68 million from HK$1,285.20 million in 2020[12] - The average capital employed decreased to HK$1,836.99 million from HK$1,953.71 million in 2020[12] - The Group's total bank and other borrowings amounted to approximately HK$521.00 million, an increase from HK$393.02 million in 2020[48] - The gearing ratio as of December 31, 2021, was 41.39%, up from 33.58% in 2020[51] - The Group's debt-to-equity ratio was 41.39%, an increase from 33.58% as of December 31, 2020[54] - Outstanding bank and other borrowings, excluding defaulted bonds, amounted to approximately HK$224,449,000 as of December 31, 2021, due for repayment or renewal within the next twelve months[189] Legal and Compliance Issues - The Company faced a winding up petition for an amount of HK$21,140,987 filed by Mr. Qiu Zhen, which was disclosed in announcements dated 15 August 2019 and 22 August 2019[73] - The Company successfully settled a claim from JIANG SHENGLI for HK$15,700,000, with a Settlement Agreement signed on 25 March 2021[80] - The Company received a writ of summons for damages amounting to HK$6,069,000 from former Director Mr. Qu regarding the refusal to issue shares upon the exercise of share options[73] - The Company reached a full and final settlement regarding the winding up proceedings, with details disclosed in an announcement dated 8 March 2021[76] - The Group defaulted on repayments of secured bonds amounting to HK$109,000,000 and interest of approximately HK$32,700,000[189] - The Group also defaulted on unsecured bonds totaling HK$127,600,000 with interest of approximately HK$14,982,000, including a claim of approximately HK$5,252,000 from a bondholder[189] Corporate Governance - The board of directors consists of five executive directors, one non-executive director, and three independent non-executive directors as of December 31, 2021[101] - The company complied with all provisions of the Corporate Governance Code during the year ended December 31, 2021, except where otherwise stated[95] - The Company has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee to oversee various aspects of its affairs[124] - The Company has adopted a formal and transparent procedure for developing remuneration policy for all directors and senior management[128] - The Nomination Committee is responsible for reviewing the structure and composition of the Board and assessing the independence of independent non-executive directors[131] Employee and Compensation - As of December 31, 2021, the group had approximately 178 employees, with total staff costs amounting to approximately HK$14.66 million[88] - The company has adopted a share option scheme to provide incentives for employee contributions and to aid in recruitment and retention[88] - The company’s employee compensation remains competitive, determined based on market levels and individual qualifications[90] - The company has experienced a significant increase in employee costs, reflecting its commitment to maintaining competitive compensation levels[90] Future Outlook and Plans - The Group aims to diversify its business mix and will focus on self-development and investments in similar businesses[17] - The Group is exploring options for further financing, including equity financing and issuance of new convertible bonds[193] - The directors believe the Group will have sufficient working capital for current requirements and can continue as a going concern[194] - An action plan has been devised to ensure sufficient cash resources for future working capital and financing needs[198]
中国北大荒(00039) - 2021 - 年度财报