Financial Performance - The company's revenue for the fiscal year ended December 31, 2021, was approximately HKD 397.33 million, an increase of about 6.73% compared to the previous year[8]. - The operating profit for 2021 was approximately HKD 22.80 million, recovering from an operating loss of approximately HKD 11.27 million in the previous year[8]. - The profit attributable to equity shareholders for 2021 was approximately HKD 45.94 million, including a revaluation surplus of investment properties of approximately HKD 44.19 million, compared to a loss of HKD 110.37 million in the previous year[8]. - Rental income from investment properties for the fiscal year was approximately HKD 50.70 million, an increase of about 14.42% compared to the previous year[17]. - The revenue from toys and model trains for the fiscal year was approximately HKD 346.63 million, an increase of about 5.69% compared to the previous year[15]. - The group turned a profit in the fiscal year ending December 31, 2021, after previously incurring losses, despite ongoing economic challenges[42]. - The profit attributable to equity shareholders before dividends was approximately HKD 45,942,000, compared to a loss of HKD 110,366,000 in 2020[121]. - No final dividend was recommended for the year ended December 31, 2021, remaining at HKD 0, consistent with 2020[122]. Business Strategy and Operations - The company plans to diversify its business and implement various measures to improve efficiency and strengthen cost control[14]. - The company aims to continue exploring new sales opportunities and producing high-quality products at competitive prices[16]. - The revitalization plan for the Kai Tak Building has been approved by the Hong Kong government, expected to enhance revenue sources and profitability by the end of 2022[42]. - The group’s main business includes manufacturing and trading plastic, electronic, and stuffed toys, as well as property investment and holding[113]. - The company has not experienced any significant events affecting its operations since the end of the fiscal year[117]. Financial Position and Liabilities - As of December 31, 2021, the group's net current liabilities were approximately HKD 82.98 million, an increase from HKD 34.98 million in 2020[35]. - The total bank borrowings amounted to approximately HKD 375.79 million as of December 31, 2021, compared to HKD 324.35 million in 2020, indicating a rise in financial leverage[35]. - The debt-to-equity ratio calculated from total bank borrowings was approximately 16.56% as of December 31, 2021, up from 14.71% in 2020[35]. - The group's net asset value was approximately HKD 1.96757 billion as of December 31, 2021, compared to HKD 1.88683 billion in 2020, showing growth in asset value[37]. Governance and Compliance - The board consists of four executive directors, one non-executive director, and four independent non-executive directors, ensuring a strong independent element in governance[49]. - All directors have confirmed compliance with the established standard code for securities trading throughout the year[46]. - The board meets at least four times a year, with additional meetings as necessary, to oversee the company's strategy and performance[58]. - The company has established three committees: the remuneration committee, audit committee, and nomination committee, to oversee specific aspects of governance[63]. - All independent non-executive directors have confirmed their independence annually, meeting the standards set by the listing rules[51]. - The company has updated the insurance for directors and senior management to provide adequate protection[56]. - The board is responsible for reviewing and approving the company's mid-term and annual performance, as well as monitoring risk management and internal control systems[57]. Risk Management and Internal Controls - The company has established a risk management and internal control system to provide reasonable assurance against material misstatements or losses, with an internal auditor reviewing its effectiveness[96]. - The board of directors believes that the existing risk management and internal control systems are effective and sufficient for the group's operations[97]. - The Audit Committee monitored the integrity of the group's financial statements and compliance with relevant regulations[72]. - The Audit Committee reviewed the effectiveness of internal audit functions and ensured adequate resources for risk management and internal controls[75]. Shareholder Information - The company aims to maximize shareholder value when determining dividend rates, considering factors such as operating performance and cash flow[104]. - The company has a commitment to maintaining high transparency in communications with shareholders and investors[107]. - The company has issued 950,587,991 shares with a par value of HKD 0.10 each as of December 31, 2021[108]. - The total equity held by Mr. Ding Wu Shou amounts to 549,968,695 shares, representing 57.86% of the issued share capital[156]. - Major shareholder Forest Crimson Limited holds 209,671,000 shares, representing 22.06% of the total issued share capital[172]. Employee and Workforce Management - The group employed 955 full-time employees as of December 31, 2021, down from 1,012 in 2020, reflecting a reduction in workforce[41]. - Employee costs for the year were approximately HKD 165.83 million, an increase from HKD 158.26 million in 2020, indicating rising labor expenses[41]. ESG and Sustainability - The company has established a sustainability approach focused on fair pricing, excellent service, and quality products for all customers[189]. - The group has implemented a comprehensive internal management system to manage environmental, social, and governance (ESG) aspects, including product quality and responsible supply chain management[191]. - The board is fully responsible for overseeing the group's ESG management, including monitoring the effectiveness of ESG strategies and risk management[196]. - The ESG committee is established to systematically oversee ESG matters and is responsible for assessing and deciding on related risks and opportunities, including climate-related risks[196]. - The group emphasizes the identification, assessment, and management of ESG-related risks, conducting annual assessments to identify potential impacts on business operations[198].
开达集团(00180) - 2021 - 年度财报