Financial Performance - Revenue for the year ended December 31, 2021, was HK$22,543,455, representing a 1.7% increase from HK$22,171,710 in 2020[5] - Gross profit increased by 27.5% to HK$2,612,976 compared to HK$2,048,801 in the previous year[5] - Profit for the year attributable to owners of the Company surged by 174.3% to HK$1,377,998 from HK$502,287 in 2020[5] - EBITDA for 2021 was HK$3,340,140, reflecting a 34.6% increase from HK$2,481,149 in 2020[5] - Basic earnings per share (EPS) rose to 41.89 HK cents, up 174.3% from 15.27 HK cents in 2020[5] - The Group's revenue for 2021 was HK$22.54 billion, representing an increase of approximately 1.7% compared to 2020[17] - Profit attributable to owners of the Company rose by approximately 174.3% to HK$1,378 million in 2021 compared to 2020[17] - Revenue for 2021 increased by 1.7% to approximately HK$22.54 billion, driven by a 16% growth in non-smartphone related products, offsetting a 9% decline in smartphone related products[26] - Gross profit margin improved to approximately 11.6% in 2021 from 9.2% in 2020, while net profit margin increased to 6.1% from 2.3%[28] Dividends - The final dividend proposed is 5 HK cents per share, compared to nil in 2020, pending shareholder approval[6] - The total dividend payout ratio for the year was about 24%, with a final dividend of 5 HK cents per share recommended for the year ended December 31, 2021[95] - The interim dividends in aggregate of 5 HK cents per share were paid in 2021, based on 3,289,229,398 ordinary shares in issue[95] - The directors recommend a final dividend of HK5 cents per share, amounting to approximately HK$164,461,000, based on the number of ordinary shares in issue[110] Revenue Breakdown - In 2021, 76% of revenue came from LCD products, while electronic consumer products accounted for 24%[10] - The geographical revenue breakdown shows that 73% of turnover was from China, with South Korea at 4% and Europe at 4%[9] - The LCD business, including touch products, accounted for about 76% of total revenue in 2021, up from 64% in 2020[29] - External sales of LCD products were approximately HK$17.18 billion, while electronic consumer products generated about HK$5.36 billion in revenue[40] Acquisitions and Investments - The Group increased its equity interest in Truly Opto-Electronics Limited from 78.8% to 98.9%, enhancing its manufacturing capabilities in touch panel products[18] - The Group acquired additional equity interests in Truly (Huizhou) Smart Display Limited, increasing ownership from 59.7% to 76.5%, with positive operational performance expected[20] - The Group acquired approximately 16.77% interest in Truly Huizhou for RMB450 million (approximately HK$550.35 million), which has been accounted for as a business acquisition[58] - The acquisition of approximately 16.77% equity in Truly Huizhou was completed for RMB 450 million (approximately HK$ 550.35 million), making it an indirect non-wholly owned subsidiary[62] - The Group acquired an additional 20.1% equity interest in Truly Opto for approximately RMB606.46 million (approximately HK$752.13 million), increasing its effective interest from 78.8% to 98.9%[83] Assets and Liabilities - The total assets of the Group increased to HK$29.73 billion in 2021, up from HK$26.54 billion in 2020[13] - The net assets of the Group reached HK$11.66 billion in 2021, compared to HK$10.48 billion in 2020[13] - The total liabilities of the Group were HK$18.07 billion in 2021, an increase from HK$16.06 billion in 2020[13] - As of December 31, 2021, the outstanding net borrowings were approximately HK$5,136 million, reflecting a 4.6% increase or HK$227 million compared to December 31, 2020[77] - The Group's net current liabilities as of December 31, 2021, were approximately HK$5,938 million, up from approximately HK$3,303 million as of December 31, 2020, resulting in a current ratio decrease from 0.77 to 0.65[78] Management and Future Outlook - The management remains optimistic about future growth driven by market expansion and new product development initiatives[10] - The management remains confident in achieving performance improvement in 2022 through continued investment in human resources and technology[22] - The management is confident that the Group's revenue and profit attributable to the owners of the Company will grow in 2022[49] Corporate Governance - The Board is committed to maintaining high standards of corporate governance and has complied with all applicable code provisions throughout the year, except for a major deviation regarding the roles of the Chairman and Chief Executive[149][150] - The Audit Committee has reviewed the annual results for the year ended December 31, 2021[138] - The Company has established a remuneration policy for directors and senior management, which is reviewed annually[175] - The Board conducted reviews of the effectiveness of the internal control system throughout the year, covering operational, financial, risk management, and compliance controls[189] Research and Development - Research and development expenditure was approximately HK$811 million in 2021, slightly down from HK$876 million in 2020[29] Legal and Compliance - A wholly owned subsidiary faced a legal claim of approximately US$23.9 million (equivalent to approximately HK$186.4 million) for alleged defective goods, which was settled in 2021[93] - The legal proceedings related to the defective goods claim were discontinued upon the approval by the Court of First Instance in July 2021[92]
信利国际(00732) - 2021 - 年度财报