Financial Performance - For the year ended December 31, 2021, the group's revenue was HKD 513,230,000, a decrease of approximately 2.9% compared to HKD 528,495,000 in the previous year[9] - The cement business generated revenue of HKD 310,302,000, down approximately 7.3% year-on-year[9] - The property investment business reported revenue of HKD 149,324,000, a decrease of about 0.6% compared to the previous year[9] - The hotel business saw revenue increase by approximately 29.7%, reaching HKD 41,004,000 compared to the previous year[9] - The group recorded a net profit attributable to shareholders of HKD 84,669,000, an increase of approximately 37.6% from HKD 61,511,000 in the previous year[9] - Basic earnings per share were HKD 0.168, compared to HKD 0.122 in 2020[9] Impact of COVID-19 - The group's operations were significantly impacted by the COVID-19 pandemic, particularly in the third quarter of 2021, leading to a near halt in economic activity in Vietnam[7] - The group adapted its hotel strategy to attract local residents, successfully turning a previous loss into profit for the hotel business[7] - The global economic environment remains volatile, posing challenges for the group's operations in 2022[8] Cement Business Challenges - The cement plant in Vietnam faced significant challenges in 2021, with cement and clinker sales volume decreasing to 893,000 tons, down approximately 7.8% from 969,000 tons in the previous year[12] - The after-tax profit for the cement business was HKD 4,813,000, a decrease of about 34.4% compared to HKD 7,332,000 in the previous year[12] - The construction and engineering projects in Vietnam faced significant delays due to strict pandemic measures, impacting local cement demand[12] - The logistics costs and prices of raw materials, including coal, surged, with coal prices rising to USD 250 per ton, more than tripling from USD 80 per ton in the previous year[12] Government Policies and Economic Outlook - The Vietnamese government's shift to a coexistence strategy with the virus is expected to positively impact the group's cement plant and trade center operations[8] - The Vietnamese government lifted all entry restrictions on March 15, 2022, which is expected to positively impact the economy and cement demand[12] - The government has implemented a series of stimulus measures, including reducing the value-added tax on cement from 10% to 8%, which will significantly improve the operating environment for the cement plant[12] Property and Investment - The overall rental income from leasing properties in Hong Kong and mainland China remained stable in 2021, with a fair value increase of investment properties amounting to approximately HKD 32,868,000, up from HKD 9,052,000 in 2020[16] - The group acquired a commercial and residential property in Hong Kong for HKD 183,800,000, which includes approximately 2,000 square feet of commercial space and 16,000 square feet of residential space[22] - The group plans to redevelop the acquired property, increasing the floor area to 21,600 square feet, which is expected to contribute to future profitability and cash flow[22] Environmental Management - The company conducts quarterly environmental measurements in accordance with Vietnamese environmental legislation[53] - The company adheres to various Vietnamese environmental standards for air quality and emissions[54] - The company is focused on controlling environmental issues related to emissions, dust, noise, and water[53] - The company employs environmental monitoring firms to ensure compliance with regulations[53] - The company plans to continue its efforts in environmental management and compliance with national standards[54] Employee Management and Safety - The cement plant provided training to all 889 employees, focusing on updated industrial safety practices and technical knowledge relevant to their departments[84] - The cement plant has a safety team that supervises workplace safety and provides safety training[77] - The hotel division emphasizes gender equality, encouraging female participation in management and operations[72] - All employees are covered by social insurance, medical insurance, and unemployment insurance as per Vietnamese law[71] Corporate Governance - The company emphasizes high standards of corporate governance, adhering to the Hong Kong Stock Exchange's corporate governance code[100] - The board of directors consists of eight members, including the chairperson and five executive directors, with independent non-executive directors serving a one-year term subject to re-election[104] - The audit committee, composed entirely of independent non-executive directors, held two meetings in 2021, with all members present[115] - The company has established three main board committees: the audit committee, the remuneration committee, and the nomination committee[114] Financial Reporting and Audit - The independent auditor's report confirms that the consolidated financial statements reflect a true and fair view of the group's financial position as of December 31, 2021[184] - The board is responsible for preparing true and fair consolidated financial statements according to Hong Kong Financial Reporting Standards and the Companies Ordinance[196] - The audit committee assists the board in fulfilling its responsibilities and oversees the financial reporting process of the group[197] Shareholder Information - The company has a significant shareholder structure, with Luks Family (PTC) Limited holding 272,824,862 shares, representing 54.29% of the issued share capital[177] - The company declared an interim dividend of HKD 0.03 per share on October 8, 2021, and proposed a final dividend of HKD 0.03 per share for shareholders listed on June 10, 2022[141] - The company’s available distributable reserves as of December 31, 2021, were approximately HKD 687,054,000, with HKD 15,077,000 proposed as the final dividend for the year[149]
陆氏集团(越南)(00366) - 2021 - 年度财报