Financial Performance - The company recorded revenue of approximately HKD 44,611,000 for the year ended December 31, 2021, a decrease of about 16.61% compared to HKD 53,500,000 in 2020[9]. - The loss attributable to the owners of the company was approximately HKD 53,787,000, a reduction of about 20.96% from HKD 68,051,000 in the previous year[9]. - The gross profit margin increased significantly from 32.48% in 2020 to 36.55% in 2021[9]. - The total comprehensive loss for the year was HKD 58,483,000, compared to HKD 74,153,000 in 2020, showing a decrease of 21.1%[187]. - The net loss for the year was HKD 53,644,000, a decrease from HKD 68,163,000 in 2020, representing a 21.3% improvement[187]. - The operating loss for 2021 was HKD 28,122,000, an improvement from a loss of HKD 35,647,000 in 2020, indicating a reduction in operational losses[187]. - The financing costs decreased to HKD 25,390,000 from HKD 32,516,000, reflecting a 21.7% reduction year-over-year[187]. - The basic and diluted loss per share improved to HKD 28.23 from HKD 37.28, indicating a 24.5% reduction in loss per share[189]. - The company reported a loss before tax of HKD 53,512,000, an improvement from a loss of HKD 68,163,000 in the previous year, reflecting a reduction of approximately 21.5%[197]. Assets and Liabilities - The total assets of the group were approximately HKD 50,741,000 as of December 31, 2021, down from HKD 75,570,000 in 2020, indicating a decline of approximately 32.9%[19]. - The group had current liabilities and total liabilities of approximately HKD 469,743,000 and HKD 565,077,000, respectively, indicating significant uncertainty regarding the group's ability to continue as a going concern[170]. - The total liabilities increased from HKD 537,681,000 to HKD 565,077,000, an increase of approximately 5.1%[193]. - The current ratio as of December 31, 2021, was 0.09, a decrease from 0.13 in 2020, reflecting a worsening liquidity position[19]. - The debt-to-asset ratio increased significantly to 419.06% in 2021 from 268.85% in 2020, indicating a higher level of financial leverage[19]. - The group had no receivables pledged as collateral for bank loans as of December 31, 2021, compared to HKD 8,456,000 in 2020[20]. - Cash and cash equivalents at year-end decreased from HKD 1,194,000 to HKD 1,108,000, a decline of about 7.2%[200]. - Trade and other receivables and contract assets amounted to approximately HKD 23,689,000 and HKD 5,092,000 respectively as of December 31, 2021, both significant figures in the financial statements[177]. - Total assets decreased from HKD 70,963,000 to HKD 47,243,000, a decline of approximately 33.7% year-over-year[192]. Corporate Governance - The company has adopted the corporate governance code as per the Stock Exchange Listing Rules Appendix 14, ensuring compliance with all code provisions during the year[42]. - The board emphasizes the importance of effective corporate governance to enhance shareholder value and maintain rights of shareholders and stakeholders[42]. - The company is committed to high standards of corporate governance, continuously reviewing its governance practices to meet regulatory requirements and shareholder expectations[42]. - The board consists of independent non-executive directors with extensive experience in finance and management, contributing to effective oversight[35][36]. - The company has a strong management team with over 30 years of experience in various industries, including environmental protection and engineering[38][39]. - The company has received annual confirmations of independence from all independent non-executive directors as required by listing rules[47]. - The company aims for board diversity, considering factors such as gender, age, cultural background, and professional experience[55]. - The nomination committee is responsible for reviewing the board's structure and recommending changes as necessary[62]. - The company has established a policy for board member diversity to support sustainable development and strategic goals[53]. Operational Developments - The company signed 10 new wastewater treatment projects and completed the engineering delivery of 8 projects during the year[10]. - The company obtained 14 utility model patents and applied for 9 new patents, including 3 invention patents, during the year[10]. - Future focus will be on expanding the wastewater treatment business and enhancing brand and market pipeline construction[13]. - The company plans to leverage the newly acquired Cambodia Zhongsheng Biological Research Co., Ltd. as a platform for growth in cell storage and cold chain logistics[14]. - The company aims to optimize resource allocation and align with the national 14th Five-Year Plan to drive economic development and shareholder value[15]. Employee and Compensation - The workforce decreased to 58 employees from 70 in the previous year, with a review of compensation policies conducted annually[16]. - The remuneration committee consists of three independent non-executive directors, focusing on the compensation policies and structures for executive directors and senior management[69]. - The company has established a formal and transparent procedure for determining the remuneration of senior management[91]. Shareholder Information - The largest customer accounted for 27.70% of total sales, while the top five customers together represented 73.44% of total sales for the fiscal year[107]. - The largest supplier contributed 35.86% to total purchases, with the top five suppliers accounting for 73.13% of total purchases[107]. - No dividends were recommended for the year ended December 31, 2021, consistent with the previous year[109]. - The company has no distributable reserves available for distribution to owners as of December 31, 2021[113]. - Major shareholder Jun Tu International Holdings Limited holds 50,725,000 shares, accounting for 23.16% of the company's issued share capital[134]. - Zhang Zihong holds 36,500,000 shares, representing 16.67% of the company's issued share capital[134]. Compliance and Risk Management - The group has complied with relevant laws and regulations without any serious violations during the year[149]. - The group has no contingent liabilities as of December 31, 2021[147]. - The company has no insurance arrangements for potential legal actions against its directors, believing the risk is manageable[101]. - The company has implemented a comprehensive internal control system to safeguard shareholder investments and company assets[73].
中国环保科技(00646) - 2021 - 年度财报