Financial Performance - The Group's turnover for 2021 was HK$5.4 billion, reflecting an increase of approximately 15% compared to last year[11]. - Profit attributable to shareholders was HK$72 million, representing a decrease of 28.8% compared to last year[11]. - The Industrial Products Trading and Distribution Division achieved record sales of HK$3.1 billion, an increase of approximately 40% compared to last year[13]. - The Division's operating profit for 2021 was HK$191.1 million, representing an increase of 50% compared to last year[13]. - The OEM Manufacturing Division's turnover decreased by approximately 8% to HK$2.3 billion for 2021[15]. - The Division's operating loss was HK$54.3 million for 2021, compared to an operating profit of HK$20.2 million last year[15]. - The company's turnover for the year ended 31 December 2021 was HK$5,411,914, representing an increase from HK$4,716,172 in 2020, which is a growth of approximately 14.7%[50]. - Profit attributable to owners of the company for 2021 was HK$72,013, a decrease from HK$101,185 in 2020, reflecting a decline of about 29%[50]. - Total assets as of 31 December 2021 amounted to HK$3,745,760, up from HK$3,285,131 in 2020, indicating an increase of approximately 14%[50]. - Total liabilities for the year ended 31 December 2021 were HK$1,889,900, compared to HK$1,488,813 in 2020, which is an increase of around 27%[50]. - Equity attributable to owners of the company as of 31 December 2021 was HK$1,759,870, an increase from HK$1,711,498 in 2020, showing a growth of about 2.8%[50]. - Operating profit margin declined from 3.0% to 2.4%[43]. - Net profit margin decreased from 2.5% to 1.8%[43]. - Return on equity fell from 6.5% to 5.2%[43]. - Earnings per share dropped by 28.8% from 13.87 to 9.87 Hong Kong cents[43]. - Current ratio decreased from 1.9 to 1.7 times[43]. - Borrowings to total equity increased from 22.6% to 33.1%[46]. - The Group anticipates a worsening overall financial performance in the current year due to ongoing challenges[37]. - Demand for industrial products is expected to decrease, impacting the Trading and Distribution Division[34]. - The Group's operations are significantly affected by global supply chain disruptions and logistical bottlenecks[37]. Employee and Management - As of December 31, 2021, the Group had a total of 4,513 employees, with 224 based in Hong Kong and 3,873 in the PRC[21]. - The remuneration packages of the Group's employees are regularly reviewed and may include share options and discretionary bonuses based on performance[21]. - Employee benefit expenses to revenue decreased from 13.3% to 12.9%[43]. - The management team has extensive experience in the electronics and manufacturing industries, which supports the company's strategic initiatives and operational efficiency[58]. - The leadership team includes individuals with extensive experience in both local and international markets, which may facilitate strategic partnerships and growth opportunities[62][64]. - Dr. Leung Kam Fong, who has extensive experience in healthcare and Chinese medicine, joined the Group in 2007 and has been pivotal in developing modern Chinese Medicine Specialist Clinics[70]. - The company has seen significant leadership changes, with several directors having extensive backgrounds in various industries, enhancing strategic direction and governance[68][72]. - Ms. Lau has 30 years of experience in human resources and administration, currently serving as the General Manager of Human Resources & Administration Department[84]. - Mr. Wong has been with the Group since 1980 and is currently the executive director of WKK Technology Limited, focusing on marketing OEM services[88]. - Mr. Tang has over 20 years of manufacturing experience in the computer and consumer electronics industries, currently serving as General Manager of Manufacturing Operations in PRC Plant[89]. - Mr. Wong has over 30 years of manufacturing experience in material management and holds a Bachelor of Science in Computer Information System and an EMBA[90]. - The Group's subsidiaries are listed in multiple regions, including Taiwan, which may provide opportunities for cross-border business growth[64]. Strategic Initiatives - The company has been focusing on expanding its market presence and enhancing its product offerings, particularly in the healthcare and Chinese medicine sectors through its subsidiary 3 Kings Medical[59]. - The company is exploring new technologies and product developments to drive future growth and maintain competitive advantage in the market[59]. - The financial performance indicates a need for strategic adjustments to improve profitability while continuing to invest in growth opportunities[50]. - The company remains committed to enhancing shareholder value through prudent financial management and strategic investments in key growth areas[50]. - The company is actively involved in the marketing and sales strategy formulation through its subsidiaries, aiming for business expansion in the healthcare sector[62][64]. - The Group's focus on modernizing Chinese medicine practices aligns with current healthcare trends, potentially increasing market share in this sector[70]. - The company emphasizes the importance of marketing management and cultural business, as demonstrated by the involvement of independent directors with strong backgrounds in these areas[68]. Corporate Governance - The company is committed to maintaining high standards of corporate governance practices[195]. - The Company has maintained directors' liability insurance throughout the financial year to provide appropriate coverage for its Directors and subsidiaries[199]. - The Company has complied with the public float requirements of the Listing Rules for the financial year ending December 31, 2021[199]. - The Company considers all Independent Non-Executive Directors to be independent as per the annual confirmation received[147]. - There are no service contracts with the Group that require compensation upon termination within one year for the Directors standing for re-election at the upcoming annual general meeting[200]. Shareholder Information - The Company reported an interim dividend of HK$0.02 for the six months ended 30 June 2021, compared to nil in 2020[130]. - A final dividend of HK$0.03 per share is proposed for the year ended 31 December 2021, down from HK$0.06 in 2020[132]. - The Company's distributable reserves as of the balance sheet date amounted to HK$77,283,000, down from HK$109,815,000 in 2020[138]. - 36% of turnover and 37% of purchases during the year were attributable to the Group's five largest customers and suppliers respectively[138]. - The total interests of directors and their associates in the company’s shares and debentures were disclosed as of December 31, 2021, with no additional interests reported[159]. - The company aims to motivate eligible participants through the New Scheme to enhance performance and efficiency for long-term growth[161]. - The company has a history of share option schemes, with the previous scheme expiring in 2015 and the new scheme adopted in 2016[160]. - The new share option scheme allows a maximum of 1% of shares in issue to be granted to each participant in any 12-month period unless approved by shareholders[167]. - The exercise price for options must be at least the highest of the closing price on the date of grant, the average closing price for the five business days prior, or the nominal value of a share[167]. - The new scheme will expire at the close of business on June 21, 2026[170].
WKK INTL (HOLD)(00532) - 2021 - 年度财报