Production and Capacity - Kingdom produced 20,756 tonnes of linen yarn in 2021, up from 16,704 tonnes in 2020, maintaining over 40% of China's total pure linen yarn export for 19 consecutive years[15]. - The Kingdom Ethiopia factory commenced production in the second half of 2021, targeting an annual capacity of 5,000 tonnes of linen yarn[17]. - The Group's production capacity for linen and industrial hemp yarn is currently 22,000 tonnes, with high utilization rates across its four production bases in China[61]. - The new production facility in Ethiopia has boosted the Group's annual production capacity by 5,000 tonnes, with production commencing in the second half of 2021[65]. - The Group's annual production capacity in China is now 22,000 tonnes, with utilization rates close to 100% across all four production bases[72]. Financial Performance - The Group's revenue surged by approximately 70.2% year-on-year to RMB 1,799,690,000 in 2021, compared to RMB 1,057,426,000 in 2020[40]. - Gross profit increased by approximately 216.4% year-on-year to RMB 339,528,000, with an overall gross margin rising to 18.9% in 2021 from 10.1% in 2020[40]. - Profit for the year was RMB 90,500,000, a significant recovery from a net loss of RMB 12,678,000 in 2020[40]. - The Group's total revenue for the year reached RMB1,799,690,000, representing a year-on-year increase of 70.2%[51]. - Domestic sales in China increased by approximately 41.3% to RMB673,137,000, accounting for approximately 37.4% of the Group's total revenue[48]. - Revenue from overseas sales amounted to RMB1,126,553,000, representing approximately 62.6% of the Group's total revenue[43]. - The Group recorded a net profit of approximately RMB90,500,000 for the Year, compared to a net loss of approximately RMB12,678,000 for the year ended 31 December 2020[87]. Export and Market Position - The Group exported 14,138 tonnes of pure linen yarn in 2021, a 85.5% increase from 7,640 tonnes in 2020, maintaining over 40% of China's total pure linen yarn exports[39]. - The Group has been the largest pure linen yarn exporter in China for 19 consecutive years[39]. - The top five exporting countries accounted for 80.5% of the Group's total export revenue during the year, up from 76.2% in 2020[45]. - Sales to the EU and non-EU markets grew by 86.1% and 102.4%, respectively, indicating strong international demand[75]. Sustainability and Innovation - Kingdom is committed to achieving carbon neutrality and is collaborating with CottonConnect to develop the REEL Linen Code of Conduct for sustainable practices[19]. - The company aims to promote industrial hemp yarn as an environmentally friendly product alongside its linen offerings[19]. - The trend towards environment-friendliness and the use of natural fibers is growing, with many fashion brands committing to sustainable materials, which will benefit linen yarn[127]. - The Group aims to explore the production of linen fabric and expand the use of hemp yarn to extend its product offerings[129]. - Kingdom is collaborating with CottonConnect to develop the REEL Linen Code of Conduct, promoting sustainability in the linen supply chain[127]. Corporate Governance and Management - The company has a diverse board with members having significant experience in finance, textiles, and corporate governance[146][150][151]. - The management team has been in place since 2003, indicating stability and continuity in leadership[140][141][144][145]. - The board composition reflects a mix of executive, non-executive, and independent directors, ensuring a balanced governance structure[146][150][151]. - The Group's independent non-executive director, Mr. Yan Jianmiao, has extensive experience in international economics and has held various academic and directorial positions[154]. - The Group's chief financial officer, Mr. Chan Yan Kwan Andy, has over 20 years of experience in accounting and finance, previously serving in senior financial roles[157]. Employee Relations and Compensation - The Group is committed to establishing a close relationship with employees, providing a fair workplace, competitive remuneration, and ongoing training and development resources[175]. - The remuneration policy for employees is based on qualifications, experience, responsibilities, and market rates, ensuring competitive compensation[122]. - The Group provides both internal and external training programs for its employees to enhance their skills[122]. - The Directors' remuneration is determined based on the Group's operating results and individual performance, reflecting a performance-driven approach[122]. Risks and Challenges - The principal risks include demand for linen yarn, protectionism, possible punitive tariffs on products made in China, and execution risk of the new expansion project in Ethiopia[174]. - The Group faces risks including demand fluctuations for linen yarn, trade protectionism in various countries, and potential punitive tariffs on Chinese products[177]. Financial Position and Liquidity - The liquidity ratio improved to approximately 113.3%, up from 109.3% in 2020[99]. - Total equity increased to approximately RMB1,350,616,000, compared to RMB1,239,635,000 in 2020[99]. - The gross debt gearing ratio decreased to approximately 65.6%, down from 81.9% in 2020[100]. - The Group's net current assets as of December 31, 2021, were approximately RMB 178,810,000, an increase from RMB 124,115,000 in 2020[103]. - Total cash and deposits amounted to approximately RMB 293,943,000 as of December 31, 2021, compared to RMB 199,771,000 in 2020, with cash and cash equivalents at RMB 249,213,000[103].
金达控股(00528) - 2021 - 年度财报