Financial Performance - The Group's revenue increased to approximately HK$132.22 million for the year ended December 31, 2021, representing a year-on-year increase of approximately 30.74% compared to HK$101.13 million in 2020[16]. - Gross profit for the Group rose to approximately HK$49.00 million in 2021, an increase of approximately HK$6.73 million from HK$42.27 million in 2020, although the gross profit margin decreased from approximately 41.80% to 37.06%[16]. - The Group recorded a loss of approximately HK$143.69 million for the year ended December 31, 2021, compared to a loss of approximately HK$106.15 million in 2020[16]. - Revenue in 2021 increased by approximately HK$31,088,000, representing a growth of approximately 30.74% compared to 2020, rising from HK$101,129,000 to HK$132,217,000[30]. - Gross profit for 2021 increased by approximately HK$6,735,000, or 15.93%, from approximately HK$42,267,000 in 2020 to approximately HK$49,002,000 in 2021[30]. - Gross profit margin decreased by approximately 4.74%, from 41.80% in 2020 to 37.06% in 2021[30]. Revenue Breakdown - Revenue from electronics product sales significantly increased to approximately HK$89.97 million, representing an upsurge of approximately 63.57% compared to the previous year[16]. - Income from manufacturing electronics products accounted for approximately 68.05% of total revenue in 2021, up from 54.39% in 2020[38]. - Revenue from nursery education services decreased by 61.73% to approximately HK$672,000 compared to HK$1,756,000 in 2020[44]. - Revenue from money lending services decreased by 12.31% to approximately HK$22,005,000 compared to HK$25,095,000 in 2020[45]. - Revenue from regulated financial services decreased by 13.83% to approximately HK$6,930,000 compared to HK$8,042,000 in 2020[58]. Assets and Liabilities - Total assets as of December 31, 2021, were HK$1,255.42 million, a decrease from HK$1,360.94 million in 2020[13]. - Total liabilities increased to HK$828.27 million in 2021 from HK$802.36 million in 2020[13]. - Net assets decreased to HK$427.15 million in 2021, down from HK$558.58 million in 2020[13]. - Equity attributable to owners of the Company was HK$415.96 million in 2021, compared to HK$547.60 million in 2020[13]. Impairment and Losses - The Group's impairment losses on financial assets were HK$85.20 million in 2021, compared to HK$63.53 million in 2020[9]. - The impairment loss on assets related to regulated financial services amounted to HK$4,810,000, and impairment loss on interest in an associate was HK$3,415,000[32]. - The base rate of the probability of default for loan receivables increased by 10% in 2021 compared to 2020, leading to additional impairment losses of approximately HK$22,000,000 and HK$57,000,000[36]. Business Environment and Outlook - The current business environment is challenging due to the resurgence of COVID-19 infections and the downturn in China's property market, impacting the Group's operations[20]. - The Group remains cautiously optimistic about business recovery, anticipating government policies to support economic recovery[20]. Cash Flow and Financial Health - As of December 31, 2021, the Group had cash and cash equivalents of approximately HK$5,686,000, a decrease of 51.0% from HK$11,598,000 in 2020[62]. - The Group's interest-bearing borrowings were approximately HK$498,584,000, slightly down from HK$498,952,000 in 2020, with a gearing ratio of 1.15 compared to 0.87 in 2020[63]. - The liquidity ratio (current assets to current liabilities) was 1.32, down from 1.73 in 2020, indicating a decrease in short-term financial health[64]. - The Group's net asset value decreased to HK$427,150,000 from HK$558,580,000 in 2020, reflecting a decline of 23.5%[64]. Staff and Operational Costs - Total staff costs for 2021 were approximately HK$35,943,000, an increase of 19.7% from HK$29,983,000 in 2020, with the employee count rising to approximately 300 from 250[72]. Dividend Policy - The Directors do not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[90]. - The Company adopted a dividend policy on January 21, 2019, which considers financial results and prospects when declaring dividends[91]. - The Company has no predetermined dividend distribution ratio, and the declaration and payment of dividends are at the Board's discretion[95]. Share Capital and Options - As of December 31, 2021, the total number of shares in issue is 2,032,571,385 shares[134]. - The total number of shares available for issue under the Share Option Scheme is 203,257,138 shares, approximately 10% of the issued shares of the Company[186]. - No share options were granted under the Share Option Scheme as of December 31, 2021[172]. - The scheme will remain valid and effective until June 5, 2027, after which no further options will be granted[192]. Corporate Governance - All independent non-executive Directors have confirmed their independence as per the Listing Rules[124][127]. - The Company has taken out insurance against liabilities and costs associated with defending any proceedings that may be brought against Directors[169]. - The auditor Confucius International CPA Limited was appointed on December 15, 2021, to fill the casual vacancy[199].
先机企业集团(00176) - 2021 - 年度财报