Financial Performance - Revenue for 2021 was HK$3,193 million, an increase from HK$2,902 million in 2020, representing a growth of approximately 10%[27]. - Profit attributable to equity shareholders for 2021 was HK$365 million, up from HK$250 million in 2020, marking a growth of 46%[27]. - Basic earnings per share increased to 18.3 HK cents in 2021 from 12.6 HK cents in 2020, reflecting a rise of 45%[28]. - Dividends per share for 2021 were 11.5 HK cents, compared to 9.0 HK cents in 2020, indicating a 28% increase[29]. - The gross profit margin improved to 22.4%, up from 18.2%, reflecting a 23% increase[46]. - The operating profit for the year was HK$533 million, a 40% increase from HK$381 million in the previous year[46]. - The real estate business recorded a revenue of HK$399 million, a 47% increase from HK$272 million in the previous year[51]. - The operating profit of the real estate business surged 67% to HK$230 million from HK$138 million in the previous year[51]. - The industrial business revenue increased by approximately 6% to HK$2,793 million from HK$2,630 million in the previous year[47]. - The net profit for the year 2020/21 was HK$365 million, up from HK$250 million in 2019/20, indicating a growth of 46%[134]. - The gross profit margin improved to 22.4% in 2020/21, compared to 18.2% in 2019/20, reflecting a positive trend in profitability[134]. Dividends and Shareholder Returns - The final dividend for the financial year 2020/21 is expected to be paid on September 15, 2021[11]. - A final dividend of HK7.0 cents per share has been recommended for distribution to shareholders[83]. - The company has maintained an unbroken 25 years' record of dividend payments, with a policy to distribute 30% or more of its profits attributable to shareholders as dividends[125]. - The company’s dividend payout ratio for 2020/21 was 60%, consistent with its policy of distributing a significant portion of profits[125]. Strategic Initiatives and Market Expansion - The company is focusing on a "go global" strategy to enhance capabilities and establish a long-term foundation in the ASEAN market[4]. - Investment in a new production complex is planned to expand business into the Mainland China market with a "Bringing In" strategy[4]. - The company aims to maintain a well-balanced and diversified business and customer base through ongoing change and reform[4]. - The company continues to prioritize innovation and competitive edge in the Mainland China market[4]. - The Group plans to expand its market share in server chassis by extending production bases overseas, starting with automated production lines in Thailand[64]. - The electric vehicle market is anticipated to grow rapidly, with the Group participating in orders related to electric vehicle charging piles, laying the foundation for its business in this area[88]. - The Group is actively seeking cooperation with other property developers for urban renewal projects in Guangdong, aiming to capitalize on the development potential of the Greater Bay Area[95]. Corporate Governance and Management - The Board of Directors consists of nine members, including Mr. Ho Cheuk Fai as Chairman and CEO, and has collective responsibility for the Group's leadership and governance[159]. - The Company is committed to enhancing shareholder value and providing superior products and services, with the Board responsible for formulating overall objectives and strategies[163]. - The Company has taken sufficient measures to avoid conflicts of interest in the nomination process, with relevant Directors abstaining from voting on their own reappointments[157]. - The Company’s governance practices comply with the Corporate Governance Code, with measures in place to ensure good corporate governance[154]. - The Board is responsible for approving annual results, interim and quarterly results, and declaring dividends[163]. - The Company has adopted a board diversity policy to achieve balanced diversity at the Board, considering various criteria such as gender, age, and cultural background[195]. - The Board reviewed its structure, size, and composition, concluding that it is well balanced and diversified with the necessary skills and experience for the Group's business[197]. Operational Developments - The company established additional automated production lines in Thailand to diversify its production base[18]. - A new production complex named "Karrie Craftsmanship Building" is under construction in Dongguan, China, with a gross floor area of approximately 44,500 sq.m, expected to be completed in phases by 2022[61]. - The Group invested in upgrading automation technology, including the application of 3D printing and the introduction of an intelligent inspection system to enhance product quality[56]. - The Thailand Plant is expected to commence production by the end of 2021, leveraging tax concessions and free investment policies to diversify the customer base and product portfolio[91]. Financial Position and Capital Expenditure - The Group's net interest-bearing borrowings as of March 31, 2021, were approximately HK$500,438,000, with a net interest-bearing borrowings ratio of 35%, down from 56% the previous year, indicating a healthier financial position[100]. - The non-current assets to total equity ratio as of March 31, 2021, was 63%, down from 76% the previous year, reflecting stable support from total equity[104]. - The initial estimate of the capital expenditure budget for the financial year 2021/22 is approximately HK$172,090,000, primarily for factory construction and machinery acquisition[105]. - The total interest-bearing bank borrowings amount to approximately HK$917,466,000, with cash and bank deposits of about HK$144,978,000, indicating sufficient resources to meet operational and capital expenditure needs[110]. Employee and Social Responsibility - The average number of employees during the year was approximately 3,350, a decrease from 3,500 in the corresponding period last year, reflecting stable recruitment conditions[116]. - The Group has adopted a performance-based bonus system, resulting in higher bonuses for employees with outstanding performance compared to the previous system[122]. - The Group is committed to sustainable operation and corporate social responsibility, focusing on environmental protection and community care[70]. - The Group has established a "Cooperative Home" program to encourage and finance local talent in purchasing flats, aimed at talent retention in a competitive labor market[118].
嘉利国际(01050) - 2021 - 年度财报