Financial Performance - The group's revenue surged by 691% to approximately HKD 5,251,919,000 in 2021, compared to HKD 664,300,000 in 2020[13]. - The net profit attributable to shareholders for the year was approximately HKD 349,815,000, a turnaround from a net loss of HKD 25,663,000 in 2020[13]. - The group's audited consolidated revenue for the year ended December 31, 2021, was approximately HKD 5,251,919,000, a significant increase of about 691% compared to HKD 664,300,000 in 2020[27]. - The sales cost for the year was approximately HKD 4,805,844,000, accounting for 91.5% of the recorded revenue, down from 94.5% in 2020[28]. - The gross profit was approximately HKD 446,075,000 with a gross profit margin of 8.5%, an increase from 5.5% in 2020[28]. - Administrative expenses decreased by approximately 5.1% to about HKD 34,524,000, representing 0.7% of the group's revenue[29]. - The company reported a consolidated profit attributable to owners of approximately HKD 349,815,000 for the year, a turnaround from a loss of approximately HKD 25,663,000 in 2020, primarily due to increased average tin prices and improved production efficiency[31]. Production and Resources - In 2021, the total production of tin metal from the Renison underground mine was 8,452 tons, a significant increase of approximately 8.4% compared to 7,798 tons in 2020[6]. - The total proven, controlled, and inferred resources at the Renison underground mine amounted to 18,240,000 tons with a tin grade of 1.65% as of December 31, 2021[14]. - The ore reserves decreased by 8.5% to 110,000 tons, while the proven and inferred resources saw a 9.7% increase in confirmed tin ore[14]. - The Renison underground mine produced 8,452 tons of tin metal with an average tin grade of 1.41% during the year[67]. - The Renison Bell Mine has a confirmed resource of 1,397 thousand tons with a tin grade of 1.50%, yielding 20,900 tons of tin metal[69]. - The inferred resource at the Renison Bell Mine is estimated at 2,470 thousand tons with a tin grade of 1.59%, resulting in 39,100 tons of tin metal[69]. - The Renison tailings project involves processing approximately 22,300,000 tons of tailings with an average grade of 0.44% tin and 0.23% copper, containing about 99,000 tons of tin[75]. Market and Demand - The average tin price reached a ten-year high of approximately USD 41,000 per ton in 2021, driven by increased demand from electric vehicles and electronics[12]. - The group anticipates stable sales growth in the medium term, supported by strong downstream demand for tin due to stricter environmental policies in major consuming countries[7]. - The demand for tin is expected to grow due to the rapid development of electric vehicles, smart manufacturing, and 5G electronics[16]. Strategic Plans and Operations - The group plans to continue focusing on exploration activities to fully exploit the resource potential of the mining area and optimize operations to produce more tin metal[6]. - The group plans to continue exploration in the Area 5, Leatherwood Trend, and Huon North locations to enhance high-grade ore resources[16]. - The group aims to enhance operational efficiency and strengthen core competitiveness to create greater value for investors and shareholders[8]. - The company has established a tin supply contract with Yunnan Tin Group to provide stable revenue until January 2025[17]. - The company aims to diversify its business lines to seek more development opportunities and enhance sustainable growth[17]. Legal and Compliance Matters - The company is pursuing legal claims totaling AUD 27,001,217 (approximately HKD 152,870,000) against Mr. Chen for various breaches related to the acquisition of Baisong[77]. - The actual tin production shortfall over three years was approximately 2,348.9 tons, leading to a claim of AUD 5,496,266 (approximately HKD 31,118,000) for underperformance[79]. - The company is involved in multiple legal proceedings, including a lawsuit with claims amounting to AUD 16.3 million related to case number 3132/2016[82]. - The company has not reached a settlement with Mr. Chen, and both parties continue with legal procedures[81]. - The company has attempted mediation with Mr. Chen in December 2021, but he expressed no interest in further discussions at that time[81]. Corporate Governance - The company has adopted all provisions of the Corporate Governance Code as set out in the Listing Rules, maintaining compliance as of December 31, 2021[94]. - The board consists of eight directors, including five executive directors and three independent non-executive directors, ensuring a balanced composition with diverse skills and expertise[97]. - The company has established a governance framework that includes the board and four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Compliance Committee[95]. - The independent non-executive directors have submitted annual confirmations of their independence in accordance with the Listing Rules[98]. - The board held a total of six meetings during the year, with attendance rates for individual directors documented[101]. - The company has arranged for directors and senior management to have directors' and officers' liability insurance, which is reviewed annually[99]. Risk Management - The company has implemented a risk management framework to assess and manage significant risks related to its existing business[135]. - The risk assessment process includes reviewing organizational goals, evaluating risk management concepts, and conducting entity-level risk assessments[135]. - The management confirmed the effectiveness and adequacy of the risk management mechanisms and internal control systems for the fiscal year ending December 31, 2021[141]. Shareholder Information - The company has established a dividend policy that considers financial performance, cash flow, future operations, and overall business conditions[143]. - The company maintained a board composition with at least one-third independent non-executive directors, complying with listing rules[112]. - Major shareholder Cybernaut Green Technology Holdings (Hong Kong) Limited holds approximately 24.89% of the company's issued share capital, equivalent to 1,700,000,000 shares[168]. - The company has not established any preferential rights for existing shareholders regarding the issuance of new shares[196].
绿科科技国际(00195) - 2021 - 年度财报