Financial Performance - The Group's turnover for the year ended December 31, 2021, amounted to approximately HK$418.2 million, representing an increase of 22.4% from the previous year[17]. - Overall gross profit for the year was approximately HK$106.7 million, reflecting a slight increase of 0.9% compared to the previous year[17]. - Profit attributable to owners of the Company was approximately HK$63.3 million, down from HK$66.9 million in 2020[17]. - Basic earnings per share for the year were HK23.71 cents, compared to HK25.06 cents in 2020[18]. - The gross profit margin decreased due to the appreciation of Renminbi, rising material prices, and the absence of social security contribution waivers from the Chinese government[19]. - The overall gross profit margin decreased by 5.5% to 25.5% in 2021, influenced by rising material prices and the absence of social security contribution waivers[25]. - Profit before finance costs decreased by HK$5.1 million to approximately HK$73.0 million for the year[33]. - Profit after tax for the year was approximately HK$63.3 million[33]. Revenue and Geographical Segmentation - Revenue from Japan and other Asian countries accounted for 63.1% of total revenue in 2021, up from 62.2% in 2020[12]. - The Group's revenue by geographical segment showed a 7.6% contribution from Mainland China in 2021, down from 8.7% in 2020[12]. - The turnover for the precision parts and components segment increased by 22.4% to approximately HK$418.2 million compared to 2020[24]. Financial Position and Equity - The Group's equity increased to HK$394.7 million in 2021, compared to HK$350.4 million in 2020[12]. - Property, plant, and equipment amounted to HK$211.5 million, slightly up from HK$209.3 million in the previous year[12]. - The Group's cash and bank balances totaled approximately HK$94.4 million at the end of the reporting period[33]. - The gearing ratio improved to 3.0% as at 31 December 2021, down from 5.4% in 2020[36]. - The Group's debt ratio was 3.0% as of December 31, 2021, down from 5.4% in 2020[42]. - The total borrowings from banks amounted to approximately HK$18.8 million as of 31 December 2021[33]. Management and Governance - The Board held four regular meetings and one annual general meeting during the year ended December 31, 2021[62]. - The Company has complied with all provisions of the Corporate Governance Code throughout the year, except for the separation of the roles of Chairman and CEO[48]. - The Group's management is responsible for daily operations, while the Board focuses on strategic policies and financial performance[57]. - The roles of chairman and chief executive officer are not separate and are performed by Mr. Lai Pei Wor, which the Board believes will enable prompt and efficient decision-making[70]. - The Company has established Board committees to delegate various responsibilities as outlined in their terms of reference[55]. Remuneration and Board Diversity - The Remuneration Committee held one meeting during the year, with all members attending[98]. - Two senior management members received remuneration between HK$1,000,001 and HK$1,500,000, while one member received between HK$2,000,001 and HK$2,500,000[104]. - The company is committed to reviewing the structure, size, and diversity of the Board at least annually to align with corporate strategy[113]. - The Company emphasizes the importance of a diverse Board to maintain a competitive advantage, considering factors such as age, gender, skills, and experience in its composition[116]. - The Nomination Committee is responsible for reviewing the Board's composition and making recommendations for new director appointments, focusing on gender balance and diversity objectives[118]. Audit and Compliance - The Company paid HK$880,000 for audit services and HK$41,000 for non-audit services, totaling HK$921,000 for the year[143]. - The Audit Committee held three meetings during the year, with all members attending 100% of the meetings[146]. - The Board conducted a review of the effectiveness and adequacy of the Group's risk management and internal control systems, finding them effective and adequate[157]. - The internal audit function is performed by a dedicated team that reports directly to the Audit Committee and the Board, ensuring compliance with policies and procedures[164]. - The Company ensures compliance with relevant laws and regulations through its internal control systems[157]. Shareholder Communication - The board emphasized the importance of shareholder communication and engagement, ensuring that all inquiries are addressed promptly[190]. - The company has established a Shareholders' Communication Policy to effectively manage shareholder concerns and feedback[190]. - All resolutions at shareholder meetings will be conducted by poll, with results published on the company's website and the Stock Exchange[190].
坚宝国际(00675) - 2021 - 年度财报