Financial Performance - The company reported an increase in revenue due to the easing of COVID-19 restrictions, leading to a rise in customer orders and an overall improvement in the supply chain environment[9]. - The sales price of PCB products increased, contributing to the revenue growth[9]. - The company's revenue for the year ended December 31, 2021, was approximately HK$375.4 million, an increase of 58.0% compared to HK$237.6 million in 2020[84]. - The gross profit margin for 2021 was 5.7%, up from 2.1% in 2020[84]. - The loss attributable to shareholders decreased to approximately HK$3.9 million in 2021, compared to HK$74.4 million in 2020[84]. - Revenue from single-sided PCB products was HK$66.3 million, representing a growth of 11.5% from HK$59.4 million in 2020[78]. - Revenue from double-sided PCB products increased by 59.6% to HK$229.5 million, up from HK$143.8 million in 2020[78]. - Revenue from multi-layer PCB products surged by 103.1% to HK$69.8 million, compared to HK$34.4 million in 2020[78]. - The group reported a loss of approximately HKD 6,649,000 for the fiscal year ending December 31, 2021[46]. - Current liabilities exceeded current assets by approximately HKD 232,129,000 as of December 31, 2021[46]. - The group has bank borrowings of HKD 156,310,000 classified as current liabilities, despite repayment dates being over 12 months after the reporting period[47]. - The company expects to have sufficient working capital to meet current operational needs and reasonably anticipates continued operations on a going concern basis[47]. Corporate Governance - The company has adopted various self-regulatory policies and procedures to ensure transparency and accountability in its operations[14]. - The board consists of 11 members, including 5 executive directors, 2 non-executive directors, and 4 independent non-executive directors, reflecting the necessary skills and experience for effective leadership[16]. - The company has a diversity policy for board members to enhance efficiency and governance, considering factors such as gender, age, and professional experience[18]. - The company has complied with the corporate governance code since the appointment of its CEO and chairman in 2020[27]. - The company emphasizes the importance of independent judgment from non-executive and independent directors in board meetings[32]. - The board is responsible for providing sufficient information to its members to make informed decisions[34]. - The company has a clear policy for evaluating the performance of directors and senior management, which is linked to their remuneration[38]. - The company ensures that directors receive ongoing training and updates on regulatory developments to fulfill their responsibilities[29]. - The company has arranged appropriate liability insurance for its directors, which is reviewed annually[33]. - The company held 7 board meetings during the year, with attendance rates for executive directors ranging from 6/7 to 7/7[19]. - The company conducted its annual general meeting on June 30, 2021, with all directors present at a 100% attendance rate[22]. - The remuneration committee held 2 meetings during the year, with all members attending both meetings[38]. - The Nomination Committee held 2 meetings during the year, with all members attending both[41]. - The Compliance Committee convened 1 meeting during the year, with full attendance from all members[43]. - The Audit Committee reviewed the audited financial statements for the year ending December 31, 2021, confirming compliance with applicable accounting standards and regulations[51]. - The audit committee held 2 meetings during the year to discuss financial reports and compliance procedures[52]. - The audit committee reviewed the full-year performance for the fiscal year ending December 31, 2021[55]. Operational Strategy - The company implemented cost-saving measures and strategic pricing policies to attract more sales orders from existing and potential customers[9]. - The board and management team will continue to take measures to improve existing business and explore opportunities to create value for the company and its shareholders[10]. - The company has taken all feasible measures to address future challenges, including cost control and business development initiatives[9]. - The company plans to develop a new production facility adjacent to existing factories, covering a total area of 120,513.22 square meters[82]. - The company aims to focus on high-value-added PCB products, particularly copper-based PCBs for clean environmental applications[83]. - The company has entered into a subscription agreement for 286,000,000 shares at HKD 0.10 per share, raising approximately HKD 28.6 million[116]. - The subscription proceeds will be used for debt repayment and operational expenses, with HKD 24.4 million allocated for debt repayment and HKD 4 million for operational capital[116]. - The group will continue to seek debt and equity financing to improve its working capital and cash flow situation[91]. - The company plans to invest in a new production line in Jiangxi Province, with the implementation timeline dependent on various factors[115]. - The strategic cooperation agreement with Shenzhen Wenyiyi Industrial Co., Ltd. includes a ten-year cooperation period based on a revenue-sharing model[109]. - The proposed investment in Anxun Group aims to acquire at least 51% of its issued share capital, with a potential cost capped at HKD 30.6 million[110]. Environmental, Social, and Governance (ESG) - The company is committed to sustainable development, focusing on high technology, high quality, high value-added, high efficiency, and high returns while minimizing emissions and energy consumption[123]. - The board is responsible for the company's environmental, social, and governance (ESG) strategies and reports, ensuring effective risk management and internal control systems related to ESG[131]. - The company aims to maximize efficiency while minimizing emissions and energy consumption, continuously innovating and addressing social needs[128]. - The report covers the company's ESG policies and measures, with no changes in the reporting scope compared to the previous year[126]. - The company identifies and assesses the importance of ESG issues related to its operations, which will influence corporate strategy[130]. - The company has established an ESG working group to assist the board in developing and implementing ESG strategies and policies[131]. - The company follows a three-step process to manage and report on sustainability issues, ensuring that the most important topics are prioritized[134]. - The company adheres to strict environmental regulations, with no violations reported in emissions, wastewater discharge, or greenhouse gas emissions during the year[149]. - The company has implemented a comprehensive system to ensure that all emissions comply with regulatory standards, focusing on reducing air pollution and waste generation[148]. - The company has established an ISO14001 certified Environmental Management System (EMS) to manage its environmental impact[148]. - The company has prioritized high energy efficiency and low emissions in its operational processes[150]. - The company has established long-term reduction pathways for both greenhouse gas and wastewater emissions as directional targets[159][163]. - The company conducts quarterly assessments of wastewater discharge and monthly monitoring of chemical oxygen demand and total copper levels[153]. - The company has implemented measures to minimize Scope 3 emissions, including avoiding business air travel and utilizing video conferencing[163]. - The company collaborates with authorized contractors for the collection and disposal of hazardous waste, ensuring compliance with relevant regulations[165]. - The company generated a total of 14,515.9 tons of greenhouse gas emissions (Scope 1 and 2), with a carbon density of 25.4 tons of CO2 equivalent per 10,000 square feet[161]. - The company recorded emissions of 0.8 kg of sulfur oxides, 323.5 kg of nitrogen oxides, and 31.1 kg of particulate matter in the fiscal year[151]. - The total wastewater discharge amounted to 415,233.3 cubic meters in the fiscal year[154]. - The company produced 1,095 tons of hazardous waste, resulting in a hazardous waste density of 1.9 tons per 10,000 square feet[167]. - The company has set future targets for reducing emissions and improving environmental performance through ongoing reviews of existing measures[159]. - The company engages with stakeholders through various channels, including shareholder meetings and regular corporate announcements[147]. - The company actively participates in community investment and environmental protection initiatives[147]. Employee Management - The company employs approximately 428 employees as of December 31, 2021, with 288 males and 140 females[190]. - The workforce consists of 425 full-time employees and 3 part-time employees, primarily aged between 31 to 50 years[190]. - The company emphasizes fair and competitive employee compensation, regularly reviewing its salary policies based on market conditions and individual performance[194]. - The company has established a human resources management procedure to regulate recruitment processes and ensure fair promotion and salary adjustment practices[197]. - The company has not reported any violations of applicable labor laws in all operational regions during the year[193]. - The company aims to create a healthy work-life balance culture, providing various leave options and organizing recreational activities[200]. - The company is focused on employee development and occupational health and safety as key areas of concern[140]. - The company promotes a culture of environmental awareness among employees, encouraging the use of public transportation and sustainable practices[183].
中华银科技(00515) - 2021 - 年度财报