Financial Performance - For the year ended December 31, 2021, the company's revenue increased by approximately 15% to about HKD 186,211,000, compared to HKD 162,041,000 in 2020[11] - The toy product segment's revenue rose by approximately 18% to about HKD 179,278,000, accounting for about 96% of total revenue[12] - The company recorded a loss attributable to owners of approximately HKD 6,520,000, an improvement from a loss of HKD 15,801,000 in 2020[11] - The revenue from the novelty and decorative products segment decreased by approximately 30% to about HKD 6,933,000, with a loss of HKD 3,060,000[13] - The gross profit for the toy product segment decreased to approximately HKD 14,513,000, down from HKD 17,358,000 in 2020, due to rising raw material and labor costs[12] Expenses and Costs - Distribution costs decreased by approximately 25% to about HKD 2,313,000, while administrative expenses increased by about 7% to approximately HKD 55,719,000[14] - Financial expenses decreased by approximately 65% to about HKD 924,000, due to reduced interest on amounts payable to subsidiary company directors[17] Assets and Liabilities - As of December 31, 2021, the company's cash and bank balances were approximately HKD 61,383,000, compared to HKD 59,467,000 in 2020[18] - The net asset value per share as of December 31, 2021, was approximately HKD 0.31, down from HKD 0.33 in 2020[19] - As of December 31, 2021, the group held financial assets at fair value through profit or loss amounting to approximately HKD 10,516,000, a decrease from HKD 13,391,000 as of December 31, 2020[21] - The group incurred a loss of approximately HKD 531,000 from the sale of financial assets at fair value through profit or loss for the year ended December 31, 2021, compared to a gain of HKD 37,000 in 2020[21] Corporate Governance - The company has adopted the latest corporate governance code as per the listing rules, enhancing transparency and governance standards[50] - The board is responsible for setting the company's long-term strategy and evaluating management policies' effectiveness[54] - The company emphasizes the importance of effective communication among directors, especially during the pandemic, to ensure informed decision-making[52] - The company has committed to maintaining good corporate governance practices to foster trust with employees, business partners, shareholders, and investors[50] Board Structure and Responsibilities - The board consists of five experienced industry professionals, including the CEO and four independent non-executive directors[55] - Independent non-executive directors accounted for more than half of the board, ensuring high standards of financial reporting and governance[62] - The board has three committees: the remuneration committee, audit committee, and nomination committee, each with specific responsibilities[105] - The board's collective responsibility includes monitoring management performance and ensuring the implementation of regular risk management measures[54] Risk Management and Internal Control - The audit committee is responsible for ensuring effective risk management and internal control systems are in place[150] - The internal control system is designed to achieve operational effectiveness, reliability of financial reporting, and compliance with applicable laws and regulations[165] - The board of directors has concluded that the risk management and internal control systems are effective and appropriate, with sufficient resources and employee qualifications[168] - No significant internal control deficiencies were identified during the annual review process[169] Strategic Initiatives - The group is in discussions regarding a proposed acquisition of over 50% equity in Sozak Oil and Gas JSC, which is engaged in oil and gas exploration in Kazakhstan[26] - The strategic cooperation agreements aim to enter the blockchain and cryptocurrency sectors, although no transactions have been conducted under these agreements as of the report date[27] - The board anticipates that the strategic cooperation agreements will facilitate the group's expansion into blockchain and cryptocurrency businesses[33] Shareholder Communication - The company has adopted a shareholder communication policy to ensure timely and equal access to relevant information[179] - The company held its most recent annual general meeting on June 1, 2021, to discuss and approve various matters, including the re-election of directors and the appointment of external auditors[179] Dividend Policy - The board does not recommend the distribution of a final dividend for the year ended December 31, 2021[34] - For the year ended December 31, 2021, the group did not declare an interim dividend and the board did not recommend a final dividend[188] Employee and Stakeholder Relations - The company emphasizes the importance of maintaining good relationships with suppliers, customers, employees, and other stakeholders to achieve medium to long-term goals[187] - The group employed approximately 690 full-time employees as of December 31, 2021, a slight decrease from 700 in 2020[24]
PERFECTECH INTL(00765) - 2021 - 年度财报