Financial Performance - The company recorded revenue of approximately HKD 49,192,000 for the year ended December 31, 2021, representing a significant increase of 23.7% or approximately HKD 9,421,000 compared to HKD 39,771,000 for the previous year[11]. - Gross profit for the year was approximately HKD 9,820,000, with a gross margin decrease from 30.0% in 2020 to 20.0% in 2021, primarily due to additional production costs during the factory relocation[11]. - The company reported a loss before tax of approximately HKD 20,987,000 for the year, slightly improved from a loss of HKD 21,758,000 in the previous year[11]. - Other income decreased by 51.7%, from approximately HKD 2,772,000 in 2020 to approximately HKD 1,338,000 in 2021, mainly due to the absence of government subsidies received in the previous year[11]. - The company reported a net loss attributable to owners of approximately HKD 20,987,000, with a loss per share of HKD 0.055, compared to HKD 0.057 in the previous year[13]. - Revenue for the year ended December 31, 2021, was HKD 49,192,000, an increase of 23.5% from HKD 39,771,000 in 2020[196]. - Gross profit decreased to HKD 9,820,000 from HKD 11,934,000, representing a decline of 17.7%[196]. - The net loss attributable to shareholders for the year was HKD 20,987,000, compared to a loss of HKD 21,758,000 in 2020[196]. Cost and Expenses - Sales and distribution costs increased significantly by approximately HKD 3,217,000 to about HKD 7,575,000, driven by revenue growth and rising global transportation costs[12]. - The company recorded a loss of approximately HKD 5,787,000 in the leather retail segment, an improvement from a loss of HKD 7,286,000 in the previous year[20]. Assets and Liabilities - Current ratio decreased to 0.43 from 0.75 in the previous year, indicating a decline in short-term financial health[7]. - Market capitalization decreased to approximately HKD 271,720,000 from HKD 367,396,000 in the previous year[7]. - Total assets as of December 31, 2021, were approximately HKD 41,186,000, an increase from HKD 32,092,000 in the previous year[26]. - As of December 31, 2021, the company's current liabilities and asset deficit were approximately HKD 33,259,000 and HKD 30,535,000, respectively[99]. - Current liabilities increased significantly to HKD 58,292,000 from HKD 37,854,000, an increase of 54.0%[199]. - Cash and cash equivalents decreased to HKD 1,469,000 from HKD 2,280,000, a decline of 35.5%[199]. Revenue Sources - The leather production and retail business accounted for approximately 93.5% of total revenue in 2021, up from 92.4% in 2020[15]. - Revenue from the United States increased to HKD 29,888,000, accounting for 65.0% of total revenue, compared to HKD 22,707,000 and 61.8% in the previous year[17]. - Retail revenue from Hong Kong decreased by approximately 21.9% to HKD 2,366,000, down from HKD 3,028,000 in the previous year[20]. Corporate Governance - The board of directors consists of three executive directors and three independent non-executive directors, with no significant relationships among them[51]. - The company aims to enhance corporate governance standards to protect shareholder interests[48]. - The audit committee has been established to review and supervise the group's financial reporting processes and risk management systems[171]. - The company has adopted a standard code of conduct for securities trading by directors, confirming compliance for the year ended December 31, 2021[50]. - The company has established appropriate insurance for legal actions against its directors and senior officers for the year ended December 31, 2021[61]. - The company has complied with the corporate governance code, except for deviations related to internal audit functions[168]. Risk Management - The company has implemented a risk management and internal control system, which is reviewed annually by the audit committee[72]. - The company has been monitoring foreign exchange risks and will consider measures for significant risks as needed[33]. - An independent annual review of the risk management system has been conducted by an external consultant, which has been approved by the board and audit committee[109]. Future Plans - The company plans to focus on designing and launching a new series of leather products in 2022 to attract younger consumers[21]. - The company has obtained a license for industrial hemp cultivation and is in the initial stages of developing hemp textile products[23]. Financial Uncertainty - The company faces significant uncertainty regarding its ability to continue as a going concern due to its financial situation[100]. - The financial statements do not reflect any adjustments that would arise from the inability to secure financing, indicating significant uncertainty regarding the company's ability to continue as a going concern[105]. - The audit committee has reviewed the management's action plan in response to the inability to express an opinion on the financial statements and supports the management's views on the company's going concern capability[106].
中联发展控股(00264) - 2021 - 年度财报