CHINA RAREEARTH-中国稀土(00769) - 2021 - 年度财报

Financial Performance - The revenue for the year ended December 31, 2021, was HK $1,212 million, representing an increase from HK$ 1,112 million in 2020, which is a growth of 9%[19] - The net assets as of December 31, 2021, were HK $2,890 million, up from HK$ 2,785 million in 2020, indicating a growth of 3.8%[21] - The company reported a profit of HK $24 million for the year 2021, compared to HK$ 20 million in 2020, marking a 20% increase in profitability[19] - For the year ended December 31, 2021, the Group recorded revenue of approximately HK $1,212,471,000, an increase of about 9% compared to HK$ 1,112,317,000 in 2020[34] - The Group's net profit was approximately HK $25,436,000, an increase of about 23% from HK$ 20,608,000 in 2020[36] Revenue Breakdown - Rare Earth Products accounted for 99% of total revenue in 2021, while Refractory Products contributed 1%[26] - Revenue from rare earth products rose by about 6% to approximately HK $858,249,000, accounting for about 71% of total revenue[36] - Revenue from refractory products increased by about 17% to HK$ 354,222,000, accounting for about 29% of total revenue[36] - The refractory materials segment recorded revenue of approximately HK $354,222,000, an increase of about 17% compared to the previous year, with a gross profit margin of 15%[44][47]. - The Group sold approximately 34,800 tonnes of refractory materials, representing an increase of approximately 25% year-on-year, although the average selling prices decreased by about 15%[49]. Market Outlook and Strategy - The company plans to expand its market presence in Japan and Europe, which are key regions for growth[30] - The management has indicated a positive outlook for 2022, expecting continued revenue growth driven by increased demand for rare earth products[30] - The rare earth products market outlook is optimistic due to increased demand for new energy and clean energy products[35] - The Group plans to monitor market supply and demand changes, particularly in light of geopolitical uncertainties affecting rare earth supply and prices[53][55]. Operational Efficiency and Sustainability - The company is focusing on the development of new technologies in rare earth processing to enhance product quality and efficiency[30] - The gross profit margin for 2021 was maintained at a healthy level, reflecting effective cost management strategies[30] - The Group's rare earth business model has transformed to focus on trading and processing high-end products, limiting the impact of environmental regulations[39] - The Group is committed to sustainable practices in its operations, aligning with global environmental standards[30] - The Group plans to invest in upgrading environmental protection equipment and optimizing daily production processes to align with increasing ecological conservation standards set by the Chinese government[59] Financial Position and Assets - As of December 31, 2021, the Group held cash and bank deposits totaling approximately HK$ 1,819,833,000, a slight increase from approximately HK $1,740,255,000 at the end of 2020, mainly due to the appreciation of Renminbi during the year[60] - Accounts receivable before impairment loss increased by approximately 18% to approximately HK$ 583,157,000 at the end of 2021, with about 85% aged less than six months, indicating limited risk of bad debts[62] - The Group's net current assets amounted to approximately HK$2,575,215,000 as of December 31, 2021, similar to the level at the end of 2020, with total liabilities to total assets ratio remaining at approximately 5%[63] Corporate Governance - The Company has adopted its own code of corporate governance based on the principles of the Corporate Governance Code and has complied with it throughout the year ended December 31, 2021[97] - The Board currently comprises seven members, including four executive directors and three independent non-executive directors[108] - The Company has ensured compliance with the Listing Rules regarding the minimum number of independent non-executive directors throughout the year ended December 31, 2021[126] - The Board has established three committees: Audit, Remuneration, and Nomination, each with defined terms of reference[147] - Continuous professional development for directors is provided to enhance their skills and knowledge in accordance with regulatory requirements[119] Director and Management Information - The Group's overall business development policies are formulated by Ms. Qian Yuanying, who has over 30 years of experience in the rare earth and refractory materials industries[79] - Mr. Jiang Quanlong, with over 30 years of industry experience, is responsible for internal and external coordination and business relationship development[80] - Mr. Jiang Dawei has been the CEO since 2017, overseeing the overall management and marketing of the Group's business[81] - The Company Secretary is responsible for maintaining minutes of all Board and committee meetings, ensuring transparency and accountability[123] - The independent non-executive directors possess expertise in financial management and related business areas, providing strategic advice to the Company[126]