Financial Performance - The total revenue for the year ended December 31, 2021, was RMB 430,989,000, representing an increase of 3.9% from RMB 418,160,000 in 2020[9]. - Gross profit before tax for 2021 was RMB 77,475,000, down from RMB 98,180,000 in 2020, indicating a decrease of 21.0%[9]. - The net loss for the year was RMB 11,850,000, compared to a profit of RMB 16,260,000 in the previous year[9]. - The total comprehensive loss for the year was RMB 12,278,000, contrasting with a comprehensive income of RMB 8,164,000 in 2020[9]. - The group recorded a revenue of approximately RMB 431.0 million for the year, representing an increase of about 3.1% compared to RMB 418.2 million in 2020[19]. - The group reported a loss of approximately RMB 14.3 million for the year, compared to a profit of RMB 8.9 million in 2020[28]. - The group's revenue for the year was approximately RMB 431.0 million, an increase of about RMB 12.8 million or approximately 3.1% compared to RMB 418.2 million in the previous year[35]. Revenue Breakdown - Revenue from fabric products was RMB 119,733,000, accounting for 27.8% of total revenue, up from 21.4% in 2020[13]. - Revenue from lingerie products was RMB 311,256,000, making up 72.2% of total revenue, down from 78.6% in 2020[13]. - Revenue from the Chinese market was RMB 250,961,000, representing 58.2% of total revenue, an increase from 38.0% in 2020[16]. - Revenue from the Japanese market was RMB 162,267,000, accounting for 37.6% of total revenue, down from 57.7% in 2020[16]. - Sales of knitted fabrics amounted to approximately RMB 119.7 million, representing 27.8% of total revenue, up from 21.4% in the previous year[36]. - Sales of lingerie products were approximately RMB 311.3 million, accounting for 72.2% of total revenue, down from 78.6% in the previous year[37]. Cost and Expenses - The cost of sales increased by approximately 10.5% to about RMB 353.5 million, up from RMB 320.0 million in the previous year[41]. - Gross profit decreased by approximately RMB 20.7 million or about 21.1% to approximately RMB 77.5 million, with a gross margin of 18.0%, down from 23.5% in the previous year[42]. - Other income and gains were approximately RMB 6.6 million, down from RMB 7.1 million in the previous year, primarily due to a reduction in government grants[44]. - Selling and distribution expenses increased by approximately RMB 2.2 million to about RMB 14.6 million, compared to RMB 12.4 million in the previous year[46]. - Administrative expenses increased to approximately RMB 75.5 million, up from RMB 71.4 million in 2020, primarily due to increased employee costs[47]. - Employee costs rose from approximately RMB 111.5 million in 2020 to RMB 137.0 million in the review year, mainly due to increased retirement benefits and pension expenses[47]. Assets and Liabilities - The total assets as of December 31, 2021, were RMB 477,816,000, slightly up from RMB 476,962,000 in 2020[9]. - Cash and cash equivalents at the end of 2021 were RMB 161,408,000, an increase from RMB 140,599,000 in 2020[9]. - Inventory increased to approximately RMB 88.2 million from RMB 59.1 million in 2020, mainly due to higher average unit costs of new materials and increased stock for upcoming sales orders[54]. - Trade receivables decreased to approximately RMB 34.7 million from RMB 51.6 million in 2020, with an average turnover period of about 37 days, down from 40 days in 2020[56]. - The group maintained a capital debt ratio of approximately 21.6% as of December 31, 2021, consistent with the previous year[58]. - The group's bank loans amounted to approximately RMB 87.7 million and RMB 10.3 million as of December 31, 2021, secured by properties and right-of-use assets[65]. Market and Economic Conditions - The group expects continued improvement in macroeconomic conditions and a gradual recovery in product demand as vaccination rates increase globally[21]. - The global economic growth forecast has been adjusted down to 4.4% due to inflation and supply-side disruptions, posing risks to the group's business[70]. - China's total import and export volume reached RMB 39.1 trillion in 2021, with a year-on-year growth of 21.4%[20]. - The textile and apparel export value was USD 322.71 billion, marking a 9% increase year-on-year, achieving a historical high[20]. - The textile industry in China achieved an export value of USD 314.47 billion, an increase of 8.4% year-on-year, with clothing exports reaching USD 170.26 billion, up 24%[27]. Governance and Management - The group aims to maintain a prudent and stable business strategy while exploring investment opportunities outside its core business[23]. - The group's ultimate controlling shareholder successfully restructured in 2021, which is expected to improve overall financing capabilities[71]. - The board did not recommend a final dividend for the year under review[68]. - There were no significant acquisitions or disposals during the year[69]. Environmental, Social, and Governance (ESG) Initiatives - The company focuses on sustainable development and has implemented policies and practices to address environmental, social, and governance (ESG) issues in 2021[105]. - The report emphasizes stakeholder engagement and responses to their expectations and concerns regarding sustainability[105]. - The company is committed to monitoring its performance to provide comprehensive disclosures on its ESG efforts[107]. - The company established an Environment, Social, and Governance (ESG) working group to assist the board in managing ESG issues[118]. - The ESG working group is responsible for formulating and reviewing the company's ESG management policies and strategies, as well as monitoring the progress of related goals[128]. - The company aims to enhance risk management related to ESG issues in the future[129]. Employee and Workplace Practices - The employee turnover rate is 26%, with 1,503 employees reported[177]. - The company employs 596 male and 492 female employees, with a total of 1,906 employees[177]. - The company emphasizes equal employment opportunities and prohibits discrimination based on various factors[168]. - The company provides various employee benefits, including medical insurance and paid leave[173]. - The company has established a production safety committee to manage occupational health and safety matters[179]. - The group has not experienced any work-related fatalities in the past three years, with 322 days lost due to work-related injuries during the reporting period[185]. Quality Control and Product Responsibility - The company emphasizes the importance of product quality as a key competitive advantage in the market[146]. - The company has established strict quality control policies and procedures to ensure compliance with legal and customer standards[149]. - The company conducts various tests on its products, including physical, chemical, and microbiological tests, to assess health and safety[150]. - The company has a procedure for handling defective materials, including returns and repairs[150]. - The company recognizes the need for close and long-term relationships with suppliers to maintain product quality[144].
广泰国际控股(00844) - 2021 - 年度财报