Financial Performance - Greenheart Group reported a significant net loss of HKD 59,231,000 for the fiscal year 2021, an increase from HKD 36,127,000 in 2020, primarily due to changes in non-cash items [25]. - The group's revenue decreased by 1.8% or HKD 5,732,000 to HKD 320,521,000, with contributions from New Zealand and Suriname divisions being HKD 283,758,000 and HKD 36,763,000 respectively [38]. - The group reported a loss of HKD 59,231,000 for the fiscal year 2021, compared to a loss of HKD 36,127,000 in 2020 [157]. - The group's earnings before interest, tax, depreciation, and amortization (EBITDA) fell by 25.7% to HKD 77,473,000, impacted by reduced fair value gains from New Zealand forestry assets [53]. - The gross profit for the year was HKD 27,677,000, an increase of HKD 18,656,000 compared to the previous year, with a gross margin of 8.6% [40]. - The group did not recommend any dividend for the fiscal year 2021, consistent with the previous year [154]. Revenue and Sales - Total revenue for the New Zealand division was HKD 283,758,000, a slight decrease of HKD 9,533,000 or 3.3% year-on-year [26]. - The Suriname division experienced a revenue growth of 11.5% year-on-year, despite a 26.2% decrease in adjusted EBITDA to HKD 12,544,000 [28]. - The average export sales price for New Zealand radiata pine increased by 16.1% due to high prices in the first half of the year, despite a sharp decline in the second half [26]. - The average export sales price increased by 16.1%, while sales volume decreased by 17.6% [38]. - Sales from the top five customers accounted for 86.9% of total revenue, with the largest customer contributing 60.2% [169]. Assets and Liabilities - Total assets as of December 31, 2021, were HKD 1,110,112,000, down from HKD 1,209,343,000 in 2020, representing a decrease of 8.2% [157]. - Total liabilities decreased to HKD 593,432,000 in 2021 from HKD 633,579,000 in 2020, a reduction of 6.3% [157]. - Current assets and current liabilities as of December 31, 2021, were HKD 202,530,000 and HKD 101,510,000, respectively, with cash and bank balances at HKD 92,916,000 [58]. Operational Challenges - The New Zealand division sold approximately 340,000 cubic meters of radiata pine, a decrease of 17.6% compared to 2020, attributed to the real estate crisis and power shortages in China [26]. - The company faced challenges in the Suriname division due to supply chain disruptions and increased shipping costs, impacting timely deliveries [28]. - The company’s Suriname operations faced challenges due to continuous heavy rainfall for eight months, impacting business performance, although there have been improvements in timber prices and production efficiency [62]. - The future performance of the Suriname business will depend on market demand sustainability, weather conditions, and alleviation of logistics bottlenecks [62]. Strategic Initiatives - The company is actively exploring new development areas in carbon-related forestry business in response to global trends towards carbon neutrality [32]. - The acquisition of greenfield sites with carbon credit revenue potential is a priority for the company, with land prices increasing by 175% in a competitive market, and carbon prices expected to rise by $48 to $78 per unit within the next twelve months [62]. - The company plans to redesign processing facilities in the capital to focus on more downstream products, which is expected to be a key driver for performance improvement [62]. - The company is considering strategic acquisitions to enhance its product offerings and market presence, with potential targets identified [86]. Governance and Compliance - The management team emphasized the importance of maintaining high corporate governance standards, adhering to all relevant regulations [88]. - The board of directors has reviewed and approved the strategic plan for the upcoming year, focusing on operational efficiency and shareholder value [89]. - The company has adopted a diversity policy for the board, aiming for gender balance by December 31, 2024 [108]. - The company has a policy in place to review and monitor the effectiveness of its nomination and diversity policies regularly [108]. - The company believes its risk management and internal control systems are effective for the year [128]. Financial Instruments and Risk Management - The group has not used any financial instruments for hedging and will continue to monitor foreign exchange risks closely [59]. - The group faces various major risks including interest rate risk, foreign currency risk, credit risk, and liquidity risk, which are detailed in the financial statements [149]. - The company maintains transparency and communication with shareholders through interim and annual reports [132]. Employee and Administrative Matters - The total number of employees as of December 31, 2021, was 168, down from 183 in the previous year, with employee costs amounting to approximately HKD 32,705,000, a decrease from HKD 42,148,000 in the prior year [69]. - Administrative expenses decreased by 4.3% or HKD 2,166,000 to HKD 47,767,000, primarily due to a reduction in employee costs and legal fees [49]. - The company encourages continuous professional development for directors, ensuring they remain informed and relevant in their contributions [97]. Audit and Financial Reporting - The audit committee held four meetings during the year, with external auditors attending three of them [118]. - The company paid HKD 2,480,000 for audit fees and HKD 209,000 for non-audit services, primarily for tax compliance [123]. - The board confirmed that the financial statements fairly reflect the group's affairs and adopted Hong Kong Financial Reporting Standards [123].
绿心集团(00094) - 2021 - 年度财报