Financial Performance - In 2021, the company reported revenue of $93.0 million, an increase of 10.5% compared to $84.1 million in 2020[8] - The gross profit for 2021 was $5.9 million, down from $8.1 million in 2020, indicating a decline of 27.2%[8] - The company experienced an operating loss of $6.6 million in 2021, compared to an operating loss of $4.9 million in 2020[8] - The net loss for the year ended December 31, 2021, was $5.6 million, an improvement from a net loss of $7.3 million the previous year[24] - The net loss decreased by 23.3% from $7.3 million for the year ended December 31, 2020, to a net loss of $5.6 million for the year ended December 31, 2021, with a net loss ratio reduction from 8.7% to 6.0%[40] - The group’s operating loss increased by 34.7% from $4.9 million for the year ended December 31, 2020, to a loss of $6.6 million for the year ended December 31, 2021[35] Assets and Liabilities - Total assets increased to $113.7 million in 2021 from $107.2 million in 2020, reflecting a growth of 4.7%[8] - Total liabilities rose to $61.1 million in 2021, up from $49.7 million in 2020, marking an increase of 23.0%[8] - The net asset value decreased to $52.6 million in 2021 from $57.5 million in 2020, a decline of 8.5%[8] - As of December 31, 2021, the group's current assets amounted to $105.9 million, up from $99.3 million as of December 31, 2020, while current liabilities increased to $60.4 million from $49.0 million[41] Sales and Market Performance - The company faced a 8.1% decline in motorcycle sales in Vietnam, with total sales of 2,492,372 units in 2021[17] - The total sales volume in Vietnam for the year ended December 31, 2021, was approximately 28.1 thousand units, a decrease of 38.9% compared to the previous year[19] - Domestic sales in Vietnam contributed approximately 27.4% of total revenue, down from 44.9% the previous year, with domestic sales decreasing by 32.4% to $25.5 million[26] - Export sales increased by 45.5% to $67.5 million for the year ended December 31, 2021, compared to $46.4 million the previous year[26] Cost and Expenses - Selling costs increased by 14.7% to $87.2 million, resulting in a selling cost ratio of 93.7%, up from 90.4% the previous year[27] - Distribution expenses rose by 10.6% to $5.2 million, primarily due to increased international shipping and packaging costs[32] - Administrative and other operating expenses decreased by 11.4% to $7.0 million, representing 7.6% of total revenue[34] Corporate Governance - The company has established a nomination committee as of January 19, 2022, to comply with corporate governance codes[67] - The company has a balanced composition of executive and non-executive directors, ensuring effective oversight of business operations[69] - The company’s Chairman and CEO roles are held by different individuals, promoting a balance of power within the board[80] - The company confirmed the independence of all current independent non-executive directors as per the listing rules[82] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, with defined responsibilities[83] Risk Management - The company confirmed that its risk management and internal control systems were effective and sufficient as of December 31, 2021[104] - The board is responsible for evaluating the nature and extent of risks the company is willing to accept to achieve its strategic business objectives[104] - The company management is tasked with establishing, executing, reviewing, and assessing a robust internal control system as part of its risk management framework[105] Future Plans and Investments - The group plans to launch several new or revamped motorcycle models in the Vietnamese and ASEAN markets in 2022, including scooters, national vehicles, and electric vehicles[53] - The group aims to enhance product diversification and profitability by increasing the proportion of high-margin products and reducing low-margin items[54] - The company is investing in new technology development, allocating approximately $2 million for R&D initiatives[130] - The company is considering strategic acquisitions to enhance its market position, with a budget of $5 million earmarked for potential deals[130] Shareholder Relations - The board emphasizes the importance of clear and timely communication with shareholders and investors to build confidence and attract new investments[118] - The company maintains high transparency to ensure accurate and timely information is available to investors through various reports and announcements[118] - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[120] Compliance and Legal Matters - The company has no significant legal or regulatory violations affecting its business as of December 31, 2021[156] - The company has complied with the disclosure requirements of the Listing Rules regarding continuing connected transactions[179] Charitable Contributions - The group made charitable contributions totaling approximately $69,400 during the year ended December 31, 2021[155]
越南制造加工出口(00422) - 2021 - 年度财报