Company Overview - C&T has provided IT solutions and services to over 10,000 companies, including the Hong Kong SAR Government, enhancing public services and trade document processing[4] - The electronic tendering system supports procurements worth billions of dollars, showcasing C&T's capability in handling large-scale projects[4] - The customer care and billing system facilitates water supplies to more than 2 million households in Hong Kong, demonstrating the company's extensive reach[4] - C&T's flagship HRM software processes payroll for millions of employee accounts monthly, indicating its significant market presence[4] - C&T's software products and services are widely adopted across multiple industries, enhancing operational efficiency for clients[4] Financial Performance - The Group's overall revenue increased by HK$9.2 million, or 3.6%, to HK$265.5 million for the year ended December 31, 2021, compared to HK$256.3 million in 2020[19] - Revenue from the Group's Application Services business grew by 8.7%, while Solutions and Integration Services revenue decreased by 5.1% due to a global shortage of software developers[19] - The Group's gross profit margin improved slightly to 57.4% in 2021, up from 56.5% in 2020, with absolute gross profit increasing by HK$7.6 million, or 5.3%, to HK$152.4 million[19] - Consolidated net profit attributable to shareholders decreased by 10.4% to HK$53.8 million in 2021, down from HK$60.1 million in 2020[19] - Basic earnings per share dropped to 21.76 HK cents in 2021, compared to 24.31 HK cents in 2020[19] - The total non-operating income fell by HK$12.3 million, or 68.7%, to HK$5.6 million in 2021, primarily due to the absence of government subsidies[19] - The Group's full-year dividend aggregated 17 HK cents in 2021, consistent with the previous year[22] - The Group declared a final dividend of 11 HK cents per ordinary share for the year ended December 31, 2021, down from 12 HK cents in 2020[22] Business Development and Strategy - The company emphasizes recruiting high-caliber professionals skilled in web-based development, cloud services, and cybersecurity to maintain competitive advantages[6] - The Group's enterprise software business achieved stable growth, with the Enterprise Procurement Management Software (EPMS) business increasing profit contributions[25] - The Group's application software business recorded high single-digit revenue growth and double-digit profit contribution growth[27] - The Group's flagship EPMS product, ProSmart, secured contracts with major clients, enhancing recurring SaaS and maintenance revenues[29] - The management is focused on product research and development, exploring acquisition opportunities, and expanding business in the Greater Bay Area post-pandemic[44] Challenges and Risks - The new wave of the Pandemic may cause potential new customers to defer their investment decisions or reduce their investment budget[24] - The global shortage of software developers impacted the Group's ability to hire timely replacements, deferring some project delivery schedules[35] - The ongoing pandemic and competition for IT talents have significantly inflated staff costs, impacting profitability[43] Corporate Governance - The Company emphasizes high standards of corporate governance, focusing on integrity, transparency, and accountability[126] - The Board believes that good corporate governance is essential for the Company's success and shareholder value enhancement[126] - The Company has complied with the Corporate Governance Code provisions during the reporting year, with noted deviations[127] - The roles of chairman and CEO are separated, with Mr. Poon Ka Chi serving as Deputy CEO since August 2018[129] - The Board will continue to review the effectiveness of the corporate governance structure and consider necessary changes[130] Board Composition and Diversity - The Board of Directors consists of four executive directors and three independent non-executive directors, with independent directors constituting more than one-third of the Board[136] - The Company recognizes the benefits of diversity in achieving strategic objectives and sustainable development[150] - The Board Diversity Policy emphasizes the importance of diverse backgrounds in decision-making, considering factors such as gender, age, and professional experience[150] - The Nomination Committee aims to find individuals with high integrity and a solid record of accomplishment, considering diversity in gender, age, ethnicity, and professional experience[139] Audit and Remuneration Committees - The Audit Committee was established in accordance with Listing Rule 3.21 to review and supervise the financial reporting process, risk management, and internal controls of the Group[95] - The Remuneration Committee was established on September 22, 2004, and consists of three INEDs and two executive directors[186] - The Audit Committee monitored the integrity of the Company's financial statements and reviewed significant financial reporting judgments[184] - The Remuneration Committee determined the remuneration packages of individual executive directors and senior management[191]
科联系统(00046) - 2021 - 年度财报