隽泰控股(00630) - 2021 - 年度财报

FINANCIAL HIGHLIGHTS In FY2021, total revenue grew 33.6% to HKD 71.9 million, driven by medical products, while annual loss significantly narrowed by 48.3% to HKD 18.1 million FINANCIAL AND OPERATING RESULTS HIGHLIGHTS In FY2021, total revenue grew 33.6% to HKD 71.9 million, primarily due to increased medical product income, with annual loss significantly narrowing by 48.3% to HKD 18.1 million 2021 Financial Year Key Financial and Operating Indicators | Indicator | 2021 | 2020 | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Operating Results (HKD thousands) | | | | | Revenue | 71,891 | 53,768 | +33.6% | | Annual Loss | (18,108) | (34,969) | +48.3% (Loss narrowed) | | Financial Position (HKD thousands) | | | | | Equity attributable to owners of the Company | 114,824 | 132,093 | -13.1% | | Total Assets | 184,777 | 212,756 | -13.1% | | Net Assets | 114,824 | 132,093 | -13.1% | | Key Ratios | | | | | Loss per Share (HK cents) | (0.75) | (1.7) | +55.9% (Loss narrowed) | | Current Ratio | 2.3 | 3.8 | -39.5% | | Total Debt to Total Assets Ratio | 0.4 | 0.4 | Stable | | Return on Total Assets (%) | (9.8) | (16.4) | Improved 6.6 percentage points | | Return on Sales (%) | (25.2) | (65.0) | Improved 39.8 percentage points | CHAIRMAN'S STATEMENT The Chairman's Statement provides an overview of the Group's performance and strategic outlook amidst economic uncertainties Performance Overview and Business Review Despite economic uncertainties, the Group achieved 33.6% revenue growth in 2021, primarily from medical products, offset by a decline in construction services - 2021 total revenue increased by 33.6% to HKD 71.9 million, primarily driven by growth in medical product revenue, offsetting a decrease in building construction service revenue[24][26] - Building contract works business faced challenges from industry slowdown and increased competition, leading to reduced revenue, lower profit margins, and increased operating losses[28][30] - Money lending and securities investment businesses both achieved segment profits in 2021, contributing stable income to the Group[29][31] Prospects The Group plans to leverage its diversified business portfolio, optimize capital allocation, and explore new opportunities for sustainable growth in 2022 - The Group will maintain its diversified business portfolio, formulating, evaluating, and revising existing business strategies to address market challenges and mitigate any adverse impacts[36][37] - The company will focus on effective working capital management, cost control to maintain liquidity, and leveraging a lean organizational structure to enhance operational efficiency[36][37] - The Group will continue to actively explore potential profitable businesses and investment opportunities, optimizing its business portfolio to maximize shareholder value and achieve sustainable growth[38] MANAGEMENT DISCUSSION AND ANALYSIS This section provides a detailed analysis of the Group's financial performance and operational review across its diverse business segments for the year Results Analysis In FY2021, total revenue increased by 33.6% to HKD 71.9 million, gross profit slightly rose, and loss attributable to owners significantly narrowed by 48.3% 2021 Financial Year Performance Summary | Item | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Total Revenue | 71,900 | 53,800 | +33.6% | | Gross Profit | 14,100 | 13,300 | +6.0% | | Gross Profit Margin | 19.6% | 24.7% | -5.1 percentage points | | Distribution and Administrative Expenses | 15,500 | 22,600 | -31.4% | | Loss Attributable to Owners of the Company | 18,100 | 35,000 | -48.3% (Loss narrowed) | Business Review The Group's business segments showed varied performance in 2021, with strong growth in medical products and securities investment, while others declined Medical Products Medical product revenue surged 119.8% to HKD 56.7 million due to increased demand, though segment profit decreased due to higher sales commissions Medical Products Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 56,700 | 25,800 | +119.8% | | Segment Profit | 500 | 1,100 | -54.5% | Plastic Products Plastic product revenue declined 63.6% to HKD 0.4 million as most products reached end-of-life, resulting in a segment loss of HKD 0.21 million Plastic Products Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 400 | 1,100 | -63.6% | | Segment Result | (210) | 85 | Turned from profit to loss | Building Contract Works Business Building contract works revenue sharply decreased by 74.8% to HKD 4.1 million due to fewer new projects, but segment loss narrowed from cost reductions Building Contract Works Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | Year-on-Year Change | | :--- | :--- | :--- | :--- | | Revenue | 4,100 | 16,300 | -74.8% | | Gross Profit | 200 | 1,700 | -88.2% | | Gross Profit Margin | 4.9% | 10.4% | -5.5 percentage points | | Segment Loss | (7,600) | (10,700) | Loss narrowed | Money Lending Money lending interest income slightly increased to HKD 10.7 million, turning a segment loss into a profit of HKD 1 million, with HKD 130.6 million in outstanding loans Money Lending Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | | :--- | :--- | :--- | | Loan Interest Income | 10,700 | 10,600 | | Segment Profit/(Loss) | 1,000 | (12,100) | | Outstanding Loan Principal and Interest | 130,600 | 135,500 | | Expected Credit Loss Provision | 30,400 | 26,300 | Securities Investment Securities investment segment profit significantly increased to HKD 15.5 million, driven by unrealized gains from fair value changes of Hong Kong-listed equity securities Securities Investment Business Performance | Indicator | 2021 (HKD thousands) | 2020 (HKD thousands) | | :--- | :--- | :--- | | Unrealized Gains | 15,500 | 1,100 | | Segment Profit | 15,500 | 1,000 | Major Investments Held for Trading as of December 31, 2021 | Company Name/Stock Code | Percentage of Shares Held | Fair Value Gain/(Loss) for the Year Ended December 31, 2021 (HKD thousands) | Fair Value as of December 31, 2021 (HKD thousands) | Percentage of Group's Total Assets | | :--- | :--- | :--- | :--- | :--- | | China Wallet Payment Group Limited (802) | 1.7% | (612) | 5,457 | 3.0% | | Wellong Technology Holdings Limited (8021) | 1.4% | 4,100 | 9,958 | 5.4% | | Others | - | 11,991 | 27,177 | 14.7% | | Total | - | 15,479 | 42,592 | 23.1% | Financial Review As of year-end 2021, the Group's net assets decreased by 17.3% to HKD 114.8 million, with no financial institution borrowings and extended bond maturity - As of December 31, 2021, the Group's consolidated net assets were HKD 114.8 million, a 17.3% decrease from HKD 132.1 million in the prior year[70] - The Group had no borrowings from financial institutions, with bonds payable of HKD 33.7 million originally due in January 2022, now extended to January 2027[81] Key Financial Ratios | Indicator | December 31, 2021 | December 31, 2020 | | :--- | :--- | :--- | | Gearing Ratio | 25.8% | 22.7% | | Current Ratio | 2.3 | 3.8 | CORPORATE GOVERNANCE REPORT This report details the Group's corporate governance practices, including board structure, committees, and internal control systems, ensuring compliance and transparency Board of Directors The Board, comprising two executive and three independent non-executive directors, held two meetings and maintained compliance with listing rules - The Board of Directors comprises two executive directors (Mr. Zhang Hengxin, Mr. Jia Minghui) and three independent non-executive directors (Mr. Chan Chi Keung, Mr. Au Yeung Ming Yin, Mr. Kwok Chun Fai)[108] - During the reporting year, the Board held two meetings, and the Chairman met with the independent non-executive directors once without other directors present[111] Chairman and Chief Executive The roles of Chairman and Chief Executive are combined under Mr. Zhang Hengxin, a deviation from governance code, deemed beneficial for strong leadership - The company deviates from Corporate Governance Code Provision A.2.1, with the roles of Chairman and Chief Executive (held by the Managing Director) combined under Mr. Zhang Hengxin[148][149] - The Board believes this arrangement is in the best interests of shareholders, providing strong leadership to reposition the company and enhance shareholder value[149] Board Committees The company maintains remuneration, nomination, audit, and investment committees, predominantly composed of independent non-executive directors, fulfilling their oversight duties - The Remuneration Committee, composed of three directors with a majority of independent non-executive directors, held one meeting during the year to review and recommend remuneration packages for executive directors and senior management[160][161] - The Nomination Committee, comprising three directors with a majority of independent non-executive directors, held one meeting during the year to review the Board's structure, size, and diversity, and assess the independence of independent non-executive directors[171][173] - The Audit Committee, composed of three independent non-executive directors, held two meetings during the year to review annual and interim financial statements, risk management, and internal control systems[176][178] Risk Management and Internal Control The Board oversees the Group's risk management and internal control systems, which were reviewed by an independent consultant and deemed effective for FY2021 - The Board is responsible for the effectiveness of the Group's risk management and internal control systems, with management responsible for their design, implementation, and monitoring[199] - The company does not have an internal audit function but appointed an independent internal control consultant for review, deeming it more cost-effective[217] - Following the annual review, the Board concluded that the Group's risk management and internal control systems were effective and adequate for the FY2021[222] DIRECTORS' REPORT This report outlines the company's principal activities, business review, and directors' and substantial shareholders' interests in shares and related securities Principal Activities and Business Review The company operates as an investment holding company with diverse subsidiaries in medical products, plastics, construction, money lending, and securities investment - The company is an investment holding company, with its principal subsidiaries' businesses detailed in Note 33 to the consolidated financial statements[258] - The Directors do not recommend the payment of a dividend for the year ended December 31, 2021[258] Directors' and Chief Executive's Interests in Shares, Related Shares and Debentures Three directors each hold 18.62 million share options, representing 0.77% of issued share capital, with no options granted, exercised, or lapsed during the year Directors' Long Positions in Shares and Related Shares of the Company (as of December 31, 2021) | Director Name | Capacity | Number of Related Shares Held | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Zhang Hengxin | Beneficial Owner | 18,620,000 | 0.77% | | Jia Minghui | Beneficial Owner | 18,620,000 | 0.77% | | Au Yeung Ming Yin | Beneficial Owner | 18,620,000 | 0.77% | - The aforementioned related shares are share options granted by the company on May 4, 2020, with an exercise price of HKD 0.087 per share[277] - As of year-end 2021, share options involving 372.4 million shares were granted and remained unexercised under the share option scheme, with no options granted, exercised, or lapsed during the year[289][290] Substantial Shareholders' Interests in Shares and Related Shares As of December 31, 2021, Mr. Gong Hongwei was the only substantial shareholder, beneficially owning 126.43 million ordinary shares, or 5.23% of issued capital Substantial Shareholders' Shareholdings (as of December 31, 2021) | Shareholder Name | Capacity/Nature of Interest | Number of Issued Ordinary Shares | Approximate Percentage of Issued Share Capital | | :--- | :--- | :--- | :--- | | Gong Hongwei | Beneficial Owner | 126,430,000 | 5.23% | Major Customers and Suppliers The Group exhibits high concentration risk with its top customer accounting for 11% of revenue and top five suppliers for 98% of total purchases - The largest customer accounted for approximately 11% of the Group's consolidated revenue, with the top five customers collectively accounting for approximately 50%[310] - The largest supplier accounted for approximately 47% of the Group's total purchases, with the top five suppliers collectively accounting for approximately 98%[311] INDEPENDENT AUDITOR'S REPORT The Independent Auditor's Report provides an opinion on the consolidated financial statements and highlights key audit matters for the reporting period Auditor's Opinion The auditor issued an unmodified opinion, affirming the consolidated financial statements fairly present the Group's financial position and performance in accordance with HKFRS - The auditor issued an unmodified opinion on the company's 2021 consolidated financial statements, affirming their true and fair presentation of the company's financial position and operating results[364] Key Audit Matters Key audit matters include the impairment assessment of loans receivable and the fair value measurement of unlisted equity instruments, both involving significant management judgment - Key Audit Matter One: Impairment assessment of loans receivable, with a net book value of approximately HKD 100.189 million as of year-end 2021, involving significant management judgment and estimates for expected credit losses[372][374][376] - Key Audit Matter Two: Fair value measurement of unlisted equity instruments, amounting to approximately HKD 21.418 million as of year-end 2021, which is complex and relies on valuation models and significant judgment[381][382] CONSOLIDATED FINANCIAL STATEMENTS This section presents the Group's consolidated financial statements, including the statement of profit or loss, financial position, and cash flows for the reporting period Consolidated Statement of Profit or Loss and Other Comprehensive Income In FY2021, revenue increased to HKD 71.9 million, gross profit rose, and the annual loss significantly narrowed to HKD 18.1 million due to cost control Consolidated Statement of Profit or Loss Summary (For the year ended December 31) | Item (HKD thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Revenue | 71,891 | 53,768 | | Gross Profit | 14,115 | 13,300 | | Loss Before Income Tax | (18,108) | (35,541) | | Loss for the Year Attributable to Owners of the Company | (18,108) | (34,969) | | Total Comprehensive Loss for the Year | (17,269) | (34,137) | | Basic and Diluted Loss per Share (HK cents) | (0.75) | (1.71) | Consolidated Statement of Financial Position As of December 31, 2021, total assets were HKD 184.8 million, total liabilities HKD 69.95 million, and net assets HKD 114.8 million, reflecting a 13.1% decrease Consolidated Statement of Financial Position Summary (As of December 31) | Item (HKD thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Assets | | | | Non-current Assets | 22,776 | 36,128 | | Current Assets | 162,001 | 176,628 | | Total Assets | 184,777 | 212,756 | | Liabilities and Equity | | | | Current Liabilities | 69,514 | 46,991 | | Non-current Liabilities | 439 | 33,672 | | Total Liabilities | 69,953 | 80,663 | | Total Equity | 114,824 | 132,093 | Consolidated Statement of Cash Flows Operating activities generated HKD 5.4 million in net cash, while investing and financing activities resulted in net outflows, leading to a net cash increase of HKD 0.64 million Consolidated Statement of Cash Flows Summary (For the year ended December 31) | Item (HKD thousands) | 2021 | 2020 | | :--- | :--- | :--- | | Net Cash Generated From/(Used In) Operating Activities | 5,399 | (26,942) | | Net Cash Used In Investing Activities | (1,313) | (33,749) | | Net Cash (Used In)/Generated From Financing Activities | (3,443) | 53,610 | | Net Increase/(Decrease) in Cash and Cash Equivalents | 643 | (7,081) | | Cash and Cash Equivalents at Beginning of Year | 4,131 | 12,288 | | Cash and Cash Equivalents at End of Year | 4,721 | 4,131 | FINANCIAL SUMMARY This section provides a five-year financial overview, highlighting trends in revenue, annual loss, total assets, and total equity Five-Year Financial Summary Over the past five years, revenue fluctuated with a rebound in 2021, while the Group consistently reported annual losses, with 2021 being the lowest Five-Year Performance and Balance Sheet Summary (HKD thousands) | For the year ended December 31 | 2021 | 2020 | 2019 | 2018 | 2017 | | :--- | :--- | :--- | :--- | :--- | :--- | | Performance | | | | | | | Revenue | 71,891 | 53,768 | 67,707 | 112,279 | 87,932 | | Loss for the Year Attributable to Owners of the Company | (18,108) | (34,969) | (34,546) | (26,752) | (147,930) | | Assets and Liabilities | | | | | | | Total Assets | 184,777 | 212,756 | 192,817 | 234,093 | 228,211 | | Total Liabilities | 69,953 | 80,663 | 86,530 | 98,258 | 62,528 | | Equity Attributable to Owners of the Company | 114,824 | 132,093 | 106,287 | 135,835 | 165,683 |