Financial Performance - Revenue from continuing operations increased by 32.0% to HK$2,694,810,000 in 2021 from HK$2,041,553,000 in 2020[23] - Gross profit from continuing operations rose by 5.1% to HK$414,547,000 in 2021 compared to HK$394,322,000 in 2020[23] - Profit for the year decreased by 45.4% to HK$80,879,000 in 2021 from HK$148,254,000 in 2020[23] - Basic earnings per share dropped by 45.1% to 4.26 HK cents in 2021 from 7.76 HK cents in 2020[23] - Total equity increased by 5.3% to HK$1,732,946,000 in 2021 from HK$1,645,571,000 in 2020[23] - Net asset value per share improved by 4.6% to 0.91 HK$ in 2021 from 0.87 HK$ in 2020[23] - The Group's net profit for the year decreased by 45.4% to HK$80,879,000 from HK$148,254,000 in the previous year[87] - The gross profit margin fell to 15.4% due to significant increases in raw material prices and ocean freight rates that could not be passed on to customers in time[74] Dividends and Shareholder Information - Proposed final dividend per share remained unchanged at 1.5 HK cents[23] - The final dividend for 2021 is set at HK1.5 cents per share, with an interim dividend of nil[26] - The payment date for the 2021 final dividend is scheduled for 29 July 2022[26] - The total number of issued shares was 1,898,652,556 as of December 31, 2021, with a net asset value of HK$1,732,946,000, reflecting a 5.3% increase from the previous year[133] Operational Capacity and Market Position - The company aims to achieve an annual manufacturing capacity exceeding 300,000 tonnes of high-quality steel cords[9] - Shougang Century aims to become one of the three major manufacturers in the steel cord industry in China[9] - The steel cord/wire production capacity at TESC expanded to an annual capacity of 160,000 tonnes during the year[72] - TESC's annual production capacity of steel cords has increased to 160,000 tonnes, contributing to a total Group capacity of 240,000 tonnes as of December 31, 2021[157] Sales and Market Trends - The Group's total sales volumes grew by 10.6% year-on-year in 2021, with export sales of steel cords increasing by 76.1%[71] - The anticipated growth in demand for replacement tyres is driven by rising car ownership and increased production of electric vehicles, which is expected to expand the domestic steel cord market[78] - The increasing production of electric vehicles, driven by China's energy-saving and emission-reduction regulations, is boosting demand for supporting tires, which will accelerate the market expansion for radial tire steel cord[174] Challenges and Economic Environment - The Group faced challenges from rising raw material prices, increased freight costs, inflation pressure, and energy prices in the second half of 2021[72] - The COVID-19 epidemic caused economic and social disruptions, impacting the Group's operations[71] - The Group's performance was influenced by the complex international environment and domestic COVID-19 epidemic[71] Corporate Governance and Board Structure - The company considers all independent non-executive directors, including Mr. Yip, to be independent throughout the year under review[196] - The roles of chairman and managing director are performed by Mr. Su Fanrong, which deviates from Code Provision A.2.1, but the board believes this arrangement allows for prompt decision-making[200] - The board will review the management structure periodically to assess the need for separating the roles of chairman and managing director[200] - The board maintains sufficient checks and balances to ensure decisions are made in the interests of the company and its shareholders[200] Research and Development - Research and development expenses grew by 45.2% to HK$103,676,000, all incurred by the steel cord segment[119] Financial Management - The Group's treasury policies focus on managing liquidity and monitoring financial risks to ensure adequate financial resources for business growth[130] - The net interest-bearing borrowings decreased from HK$483,372,000 at December 31, 2020, to HK$418,332,000 at December 31, 2021[141] - The gearing ratio decreased from 29.4% at December 31, 2020, to 24.1% at December 31, 2021[145] Future Plans and Sustainability - The company aims to achieve green, low-carbon, and sustainable development by reducing carbon emissions through energy conservation, clean energy use, and the development of low-carbon products and new technologies[174] - In 2022, the company plans to explore other businesses specifically, believing this will create synergies with its core steel cord and wire manufacturing business and drive growth under the "14th Five-Year Plan"[174]
首佳科技(00103) - 2021 - 年度财报