Financial Performance - The company's revenue for the year ended December 31, 2021, was $7,308,000, an increase of 118% compared to $3,352,000 in 2020[20] - The pre-tax loss for the year was $1,162,000, a decrease of $1,482,000 from a pre-tax profit of $320,000 in 2020[20] - The net loss after tax was $957,000, compared to a net loss of $625,000 in the previous year[20] - The basic loss per share for the year was 0.13 cents, compared to 0.08 cents in 2020[20] - The gross profit margin for the year was 31.8%[20] Liquidity and Financial Position - The company maintained a current ratio of 2.3, up from 1.8 in 2020, with total current assets of $12,587,000[22] - Cash and cash equivalents at year-end were $8,780,000, down from $9,754,000 in 2020[22] - The company had no bank borrowings as of December 31, 2021[22] Operational Developments - The company successfully leased several idle factories in China, contributing to stable cash flow[18] - The company will continue to explore new tenants and negotiate leases to develop new revenue sources[18] Corporate Governance - The board of directors held four meetings during the year, all of which were regular meetings[38] - The company has complied with the listing rules by appointing at least three independent non-executive directors, with at least one possessing appropriate professional qualifications or relevant financial management expertise[32] - The chairman and the managing director roles are held by different individuals, ensuring a clear division of responsibilities[52] - The company has established procedures for directors to seek independent professional advice at the company's expense when necessary[51] - All directors are provided with insurance coverage regarding legal proceedings they may face[51] - The company has a clear process for ensuring that all directors are adequately informed and receive timely and complete information[58] - The chairman is responsible for leading the board and ensuring its effective operation and accountability[53] - The board has mechanisms in place to allow directors to propose matters for discussion at board meetings[40] - The company has confirmed the independence of its independent non-executive directors in accordance with the listing rules[48] - The board meetings' minutes are sufficiently detailed to record the matters discussed and decisions made[49] - The board of directors has established a diversity policy that emphasizes diversity in thought, experience, skills, knowledge, perspectives, and gender[112] - The nomination committee consists of three independent non-executive directors, chaired by Mr. Liu Zhonggang[93] - The company has implemented a formal and transparent process for the appointment of new directors, ensuring orderly succession planning[90] - Independent non-executive directors have designated terms and are subject to re-election[91] - The board composition is regularly reviewed to ensure a balanced mix of skills, experience, and independence[87] - The company has effective communication channels with shareholders, ensuring their views are conveyed to the board[76] - The board is responsible for evaluating the independence of independent non-executive directors, especially those serving over nine years[91] - The company has disclosed the names and roles of all directors in its communications, ensuring transparency[88] - The nomination committee has a clear written mandate defining its powers and responsibilities[100] - The company provides sufficient resources to the nomination committee to fulfill its duties, including access to independent professional advice[104] - The board held a total of 4 meetings, with all executive directors attending all sessions[115] - Independent non-executive directors attended 100% of their respective committee meetings, demonstrating strong engagement[115] - All directors participated in ongoing professional development to enhance their knowledge and skills[133] - The company has adopted written guidelines for securities trading that comply with the standards set for employees[121] - All directors disclosed their positions in public companies and organizations annually, ensuring transparency[133] - The company provided training to all directors, covering regulatory updates and relevant business operations[133] - Independent non-executive directors actively contributed independent and constructive opinions during board meetings[141] - Management is responsible for providing timely and sufficient information to the board for informed decision-making[146] - The company ensures that board meeting agendas and related documents are sent to all directors at least three days prior to meetings[145] - The board has established independent access for each director to senior management for effective communication[146] Compensation and Performance Evaluation - The compensation committee consists of three independent non-executive directors, chaired by Mr. Lai Chen Yang[152] - The company has reviewed the compensation of all directors annually, ensuring transparency and adherence to guidelines[153] - The salary range for senior management members is disclosed, with 7 individuals earning between $1 and $100,000[156] - The board is responsible for evaluating the company's performance, situation, and prospects in a balanced and clear manner[157] - Management provides detailed reports and explanations to the board for informed assessments of financial and other data[157] Risk Management and Internal Control - The company has established a risk management and internal control system to ensure compliance and safeguard assets[162] - The board conducts annual reviews of the effectiveness of the internal control system, covering all significant monitoring aspects[167] - The company ensures that resources, staff qualifications, and training in accounting and financial reporting are adequate[167] - The compensation committee has been provided with sufficient resources to fulfill its responsibilities[155] - The company has published its authority and functions of the compensation committee on the stock exchange and its website[155] - The company engaged independent professional organizations to assist the board and audit committee in continuously monitoring the group's risk management and internal control systems[175] - The audit committee held a total of 2 meetings during the year to review financial performance and compliance procedures[177] - The audit committee's scope of authority has been revised to cover responsibilities as stipulated in the code provisions[189] - The company will provide the necessary assistance requested by the audit committee, with related costs borne by the company[196] - The board and audit committee had no disagreements regarding the appointment or dismissal of external auditors during the year[194] - The board has clearly defined the responsibilities and accountability of both the board and management[199] - The company has disclosed the detailed terms and conditions of the director's appointment[200] - The board's responsibilities include setting the company's strategic development and policies, establishing management objectives, monitoring management performance, and overseeing customer relationships[198]
创信国际(00676) - 2021 - 年度财报