Financial Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 2,273,399,000, an increase from HKD 2,064,882,000 in 2020[10]. - The profit attributable to the owners of the company for the same period was approximately HKD 227,841,000, compared to HKD 181,081,000 in 2020[10]. - Basic earnings per share for the year were HKD 0.3607, up from HKD 0.2867 in the previous year[10]. - The group's revenue for the year ended December 31, 2021, increased by 10.1% compared to the previous year[21]. - The group's profit after tax increased by 25.8% to HKD 227,841,000 for the year ended December 31, 2021, compared to HKD 181,081,000 in 2020[21]. - The cost of materials and consumables used to generate revenue increased by 8.0%, while the percentage of these costs in relation to revenue decreased to 36.1% from 36.9% in 2020[21]. - The actual tax rate increased to 27.8% from 18.0% in 2020, primarily due to prior year adjustments and increased recognition of deferred tax assets[21]. - Cash and bank deposits amounted to approximately HKD 833,586,000 as of December 31, 2021, down from HKD 918,623,000 in the previous year[22]. - The group maintained a total equity of approximately HKD 2,271,272,000 as of December 31, 2021, slightly down from HKD 2,274,394,000 a year earlier[22]. Market Outlook - The group anticipates continued pressure on the Chinese consumer products market, with a slowdown expected due to a cooling real estate market and reduced demand for home appliances[11]. - The outlook for the global economy remains uncertain, influenced by geopolitical tensions and supply chain disruptions[11]. - The demand for new technology electronic products is expected to remain positive, despite challenges in the electric vehicle sector due to standardization and charging infrastructure issues[11]. Operational Strategy - The group plans to adjust product prices in response to fluctuating raw material and steel prices due to inflationary pressures[13]. - The group is focusing on the development of core businesses and improving internal production and management to achieve stable growth and healthy returns[13]. - The impact of the COVID-19 pandemic remains a concern, with potential disruptions to operations due to outbreaks in mainland China[13]. - The group will integrate marketing strategies and networks to strengthen its competitive advantage in response to global market trends[11]. Corporate Governance - The company has established a Nomination Committee consisting of four independent non-executive directors, which held four meetings in the fiscal year ending December 31, 2021, with full attendance from all members[45][46]. - The Nomination Committee confirmed that the board members possess diverse skills, professional knowledge, experience, and qualifications, ensuring the board is capable of fulfilling its responsibilities[46]. - The company’s board diversity policy emphasizes the importance of diversity in enhancing overall performance, considering factors such as gender, age, cultural and educational background, and professional experience[64]. - The company’s independent non-executive directors actively participate in board meetings, providing independent judgment on strategy, policy, and company performance[41]. - The company has a structured process for evaluating the independence of all independent non-executive directors, ensuring compliance with the independence standards set forth in the listing rules[47]. - The Nomination Committee is responsible for reviewing the board's structure, size, and diversity, making recommendations for any changes to the board[45]. - The company’s board has distinct roles for the Chairman and the Managing Director, with the Chairman leading the board and the Managing Director implementing the board-approved strategies[40]. - The company has a policy for annual self-assessment of the board members to ensure effective governance[55]. - The Nomination Committee will review the nomination policy periodically to ensure its effectiveness and propose any necessary amendments to the board[63]. - The company maintains a clear framework for the powers and responsibilities of its committees, including the Audit, Nomination, and Remuneration Committees, which report their findings to the board after each meeting[42]. Audit and Risk Management - The Audit Committee held four meetings during the fiscal year ending December 31, 2021, reviewing quarterly performance and internal audit results[74]. - The Audit Committee recommended the approval of the consolidated financial statements for the year ending December 31, 2020, and the interim results for the six months ending June 30, 2021[76]. - The Audit Committee evaluated the effectiveness of the group's risk management and internal control systems, reporting findings to the board[80]. - The company confirmed that there are no significant uncertainties that could severely impact its ability to continue as a going concern[90]. - The company’s board of directors is responsible for preparing financial statements that reflect the group's true and fair state of affairs[90]. - The board confirmed its responsibility for overseeing the group's risk management and internal control systems, with annual reviews conducted by the risk management and internal control review task force[91]. - The internal audit department regularly reports to the board and audit committee on the effectiveness of internal controls, identifying any significant weaknesses or failures in procedures[94]. - The audit committee and board found no significant issues that would materially affect the group's financial condition or operational performance, deeming the risk management and internal control systems sufficient and effective[102]. - The fees paid to the external auditor for the fiscal year ending December 31, 2021, totaled HKD 3,100,000 for audit services and HKD 568,000 for interim review services[104]. ESG Commitment - The company aims to balance dividend distribution, maintaining sufficient liquidity, and seizing future growth opportunities to create long-term value for shareholders[115]. - The board of directors will consider the company's current financial performance and future financial requirements when recommending or declaring dividends[116]. - The company has established a rigorous ESG governance framework to assist the board in overseeing ESG-related matters[134]. - The ESG governance structure includes the board being ultimately responsible for the overall ESG vision and long-term sustainable development goals[135]. - The company will review its dividend policy periodically to ensure its effectiveness and may update or modify the policy as necessary[121]. - The ESG report is prepared in accordance with the guidelines set forth by the Hong Kong Stock Exchange, ensuring transparency and accountability[126]. - The report covers the company's manufacturing and sales operations in Guangdong and Zhejiang provinces, which are the core operations and main revenue sources[127]. - The company emphasizes ethical and responsible business practices as part of its corporate culture[134]. - The board will approve the overall ESG policies and strategies, as well as review the company's ESG performance[135]. - The company is committed to integrating sustainable development goals into its overall strategic direction[134]. Environmental Performance - The total GHG emissions for the year were 61,250 tons CO2 equivalent, a decrease of 7.2% from 68,758 tons in the previous year[155]. - Direct emissions (Scope 1) from diesel were 384 tons, an increase of 2.9% from 373 tons in the previous year[155]. - Indirect emissions (Scope 2) from purchased electricity were 60,521 tons, a decrease of 11% from 68,011 tons in the previous year[155]. - The GHG emissions per square meter of floor area were 0.19 tons CO2 equivalent, down from 0.21 tons in the previous year[155]. - The board has set strategic goals and indicators for the next three to five years to focus on achieving ESG vision[141]. - The company has established multiple environmental protection policies aimed at reducing emissions and conserving energy[154]. - The company engages with stakeholders through various channels to understand their expectations regarding ESG aspects[143]. - The company has identified and prioritized ESG projects based on their importance to the business and stakeholders[148]. - The company is committed to enhancing ESG risk management and internal controls to safeguard long-term stakeholder interests[141]. - The company’s operations are compliant with all applicable environmental protection laws and regulations in China[154]. - GHG emissions for Scope 1 totaled 712 tons, a decrease from 721 tons in 2020[2]. - Total hazardous waste generated was 207 tons, down from 370 tons in 2020, indicating a reduction of approximately 44%[160]. - Total non-hazardous waste generated was 39,498 tons, compared to 43,261 tons in 2020, reflecting a decrease of about 8%[160]. - Direct energy consumption was 1,969 MWh, a reduction from 2,033 MWh in 2020[167]. - Total energy consumption was 77,434 MWh, down from 79,455 MWh in 2020, representing a decrease of approximately 2.5%[167]. - Total water consumption was 490,418 cubic meters, significantly lower than 582,567 cubic meters in 2020, marking a reduction of about 16%[171]. - Total packaging materials used was 1,582 tons, slightly down from 1,587 tons in 2020[172]. - The company implemented energy-saving measures, including the use of high-efficiency production equipment and promoting recycling awareness among employees[170]. - The company has set annual energy-saving targets and continues to seek energy-saving potential and directions[166]. - The company has established a "Energy Saving Team" to ensure the effectiveness of environmental protection policies and monitor their implementation[166]. - The Chinese factory has implemented energy-saving and emission-reduction measures, including replacing old machinery with new ones, improving efficiency and reducing energy consumption[174]. Employee Management - As of December 31, 2021, the Chinese factory employed a total of 3,007 employees, with 2,601 males and 406 females[183]. - The employee turnover rate for 2021 was 16%, with 564 employees leaving the company, including 482 males (16%) and 82 females (17%)[184]. - Employees received a total of 22,015 hours of training in the Chinese factories during the year[194]. - The average training hours per employee was 7 hours, with 98% of employees receiving training[195]. - Male employees received an average of 7 hours of training (99% participation), while female employees received 10 hours (97% participation)[195]. - Senior management received an average of 2 hours of training (68% participation), while middle management received 9 hours (97% participation)[195]. - The company adheres strictly to labor laws and regulations in China to enforce its labor standards[196]. - The company emphasizes collaboration with suppliers who share its values and maintains a rigorous supplier selection process[197]. - The company has established policies to identify, assess, monitor, and manage environmental and social risks in its supply chain[197]. - The company is committed to reducing potential environmental and social risks that may impact its supply chain[197].
龙记集团(00255) - 2021 - 年度财报