Financial Performance - The company reported a significant increase in revenue, achieving a total of HKD 1.2 billion, representing a 15% year-over-year growth[61]. - The gross profit margin improved to 30%, up from 28% in the previous year, indicating better cost management and pricing strategies[61]. - Profit attributable to equity holders of the Company was HK$89,865,000, a significant recovery from a loss of HK$6,212,000 in the previous year[30]. - Overall gross profit increased by 84% year-on-year to HK$347,217,000, with a gross profit margin growth of 5.7 percentage points to 17.6%[38]. - Earnings per share for the year were HK24.34 cents, compared to a loss per share of HK1.68 cents in 2020[30]. - The increase in turnover was driven by a rebound in overseas orders and a surge in market demand for raw materials as the global economy began to recover from the COVID-19 pandemic[32]. - The Group recorded an audited consolidated turnover of HK$1,971,074,000 for the year ended 30th June 2021, representing a 24.8% increase from HK$1,578,998,000 in 2020[30]. Market Expansion and Strategy - User data showed a 20% increase in active customers, reaching 500,000 users, which reflects the effectiveness of recent marketing campaigns[61]. - The company plans to launch two new product lines in Q2 2024, focusing on eco-friendly materials, aiming to capture a growing market segment[61]. - The company is exploring potential acquisitions to expand its market presence in Southeast Asia, targeting a 5% market share within three years[61]. - Market expansion efforts include entering two new international markets by the end of 2024, with projected revenues of HKD 200 million from these regions[61]. - The Group has a strong focus on market expansion in the Asia Pacific region, particularly in engineering plastic materials[23]. - The Group is expanding overseas markets to mitigate the impact of economic volatility in Mainland China and Hong Kong[62]. Research and Development - Investment in R&D increased by 25%, totaling HKD 50 million, to enhance product innovation and technology development[61]. - The Group plans to enhance its product portfolio and enter high-margin engineering plastic markets to meet increasing customer demands[40]. - The Group will continue to focus on producing high-end sanitary and electronic products while raising production capacity to secure high gross profit margin orders[40]. Corporate Governance - The Company has complied with all applicable code provisions in the Corporate Governance Code throughout the year ended June 30, 2021, except for certain deviations[129]. - The Company emphasizes maintaining sound corporate governance principles and structures as part of its risk management strategy[129]. - The Board has established strategic direction and approved annual budgets and major funding proposals[136]. - The Company has adopted the Model Code regarding directors' securities transactions and confirmed compliance by all Directors during the year[129]. - The Audit Committee comprises three Independent Non-executive Directors and has reviewed the accounting principles and practices adopted by the Group[122]. Risk Management - The Group has established a risk management process that includes risk identification, evaluation, mitigation, monitoring, and reporting[188]. - Significant internal control deficiencies are reported to the Audit Committee and the Board in a timely manner to ensure prompt remediation actions[188]. - The Board reviewed the effectiveness of the Group's risk management and internal control systems and deemed them adequate during the year[190]. Dividends and Shareholder Communication - The Board of Directors recommended a total dividend payment of HK6.0 cents per share for the year, which includes a final dividend of HK1.0 cent and a special dividend of HK3.0 cents[31]. - The Company has adopted a Dividend Policy effective from January 1, 2019, aimed at balancing shareholder interests with prudent capital management[198]. - The Board has established a shareholders communication policy to ensure effective communication with shareholders[195]. - Any final dividends declared must be approved by an ordinary resolution of the shareholders at an annual general meeting[200]. Management and Personnel - The management team includes individuals with advanced degrees in Business Administration and Chemistry from reputable universities[23]. - The Group had approximately 626 full-time employees as of June 30, 2021, with an incentive scheme linked to profit and employee performance[54]. - The Group aims to attract and retain key executives through competitive compensation packages[94]. Financial Position - The Group's cash and cash equivalents as of June 30, 2021, amounted to approximately HK$206,579,000[50]. - The Group's total bank borrowings as of June 30, 2021, were approximately HK$319,708,000, resulting in a gearing ratio of approximately 54.3%[50]. - The Group has available aggregate banking facilities of approximately HK$553,548,000, of which approximately HK$312,141,000 have been utilized[50].
毅兴行(01047) - 2021 - 年度财报