Company Overview - Perennial International Limited was founded in 1989 and has established itself as a significant player in the electrical and electronic products sector[9]. - The company manufactures and trades quality wire harnesses, power cords, and plastic resins, primarily serving markets in America, Europe, Australia, Mainland China, Japan, and Southeast Asia[9]. - As of December 31, 2021, Perennial International Limited employed 920 full-time staff globally[9]. - The Group's key values are quality, prudence, and integrity, emphasizing the importance of its employees as the most valuable asset[9]. Financial Performance - The Group's revenue increased by 32% to HK$373.5 million in 2021, up from HK$282.3 million in 2020[12]. - Profit for the year was HK$13.7 million, compared to a loss of HK$19.2 million in 2020, resulting in earnings per share of HK$0.069[10]. - The gross margin improved from 18.7% in 2020 to 21.4% in 2021, reflecting operational efficiency amid supply chain challenges[12]. - The net profit margin was 3.7% in 2021, a significant recovery from a negative net profit margin of 6.8% in 2020[12]. - The company's revenue for the year ended December 31, 2021, was HK$373,472,000, an increase from HK$282,342,000 in 2020, representing a growth of 32.3%[87]. - The profit for the year was HK$13,689,000, a significant recovery from a loss of HK$19,231,000 in the previous year[87]. - Total comprehensive income for 2021 was HK$19,778,000, compared to a loss of HK$13,244,000 in 2020[161]. Assets and Liabilities - Total assets increased to HK$727,733,000 from HK$685,978,000 in 2020, reflecting a growth of 6.3%[87]. - Total liabilities rose to HK$158,675,000 from HK$136,698,000, indicating an increase of 16.0%[87]. - The total equity of the company was HK$569,058,000, up from HK$549,280,000 in 2020, marking a growth of 3.4%[87]. - Inventory increased by 37.7% to HK$161.5 million in 2021, compared to HK$117.4 million in 2020, due to proactive material purchasing[12]. - Bank borrowings increased from HK$45.7 million in 2020 to HK$74.4 million as of December 31, 2021, primarily to finance inventory and trade receivables[13]. Market and Sales - Sales of power cords accounted for 58% of revenue, while wire harnesses contributed 33% and cables, wires, and plastic resins made up the remaining 9%[12]. - Major markets included America (56% of total sales), Mainland China (21%), and Hong Kong (13%), with the remaining 10% from other regions[25]. Corporate Governance - The Board consists of eight members and held four meetings during the year ended December 31, 2021[33]. - The Company has arranged for appropriate liability insurance for the Directors and senior management, reviewed annually[35]. - The role of the Chairman is separate from that of the Chief Executive Officer, with clearly established responsibilities[36]. - The Audit Committee is responsible for reviewing the Group's financial and accounting policies, recommending external auditor appointments, and discussing audit scope and concerns[46]. - The Company confirms the independence of all Independent Non-Executive Directors as per the Listing Rules[41]. Risk Management - The Group has established a robust risk management framework, with the Board determining the nature and extent of risks to achieve strategic objectives[59]. - The Audit Committee conducted an annual review of the effectiveness of the company's risk management system, concluding that it is effective and adequate[65]. - The risk management process includes identifying major risks and developing mitigation plans to manage them to acceptable levels[64]. Investments and Expenditures - Capital expenditure for the year was approximately HK$9.2 million, indicating ongoing investment in growth[21]. - The company made investments totaling HK$9,190,000 in property, plant, and equipment during 2021, down from HK$16,416,000 in 2020, suggesting a more cautious investment approach[176]. Shareholder Information - The company recommended a final dividend of HK$0.02 per ordinary share, subject to shareholder approval at the upcoming annual general meeting[93]. - Shareholders holding at least one-tenth of the paid-up capital can requisition a special general meeting for specific business matters[69]. - The company ensures equitable treatment of all shareholders and upholds their rights in accordance with its Bye-laws[69]. Accounting Policies - The consolidated financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance, ensuring accurate and fair representation[149]. - The Group's accounting policies have been consistently applied to all years presented[1]. - The Group adopted new and amended standards for the financial year beginning on or after January 1, 2021, including amendments to HKFRS 16 and HKFRS 9[2]. Audit and Compliance - The consolidated financial statements were audited by PricewaterhouseCoopers, who will retire at the upcoming annual general meeting[133]. - The auditor's objective is to obtain reasonable assurance that the consolidated financial statements are free from material misstatement, whether due to fraud or error[151]. - The Audit Committee oversees the financial reporting process, ensuring compliance and addressing any significant deficiencies in internal control identified during the audit[150][155].
恒都集团(00725) - 2021 - 年度财报