Financial Performance - The total revenue for 2021 was HK$864.1 million, a slight increase from HK$860.8 million in 2020, representing a growth of approximately 0.4%[22] - Gross profit for 2021 was HK$312.6 million, with a gross profit margin of 36.2%, compared to HK$284.2 million and a margin of 34.5% in 2020[22] - Profit attributable to owners of the company for 2021 was HK$48.0 million, a significant increase from HK$3.8 million in 2020, marking a growth of over 1,157%[22] - Earnings per share for 2021 was 15.0 HK cents, compared to 1.2 HK cents in 2020, reflecting a substantial improvement[22] - Datronix reported revenue of HK$243.6 million for 2021, a 5.5% increase from HK$230.8 million in 2020[45] - Gross profit for 2021 was HK$85.4 million, with a gross profit margin of 35.1%, compared to 34.6% in 2020[45] - Profit before tax was HK$6.9 million for 2021, with net profit reported at HK$3.8 million, recovering from a net loss of HK$6.9 million in 2020[45] - Operating profit for 2021 was HK$6.9 million, compared to an operating loss of HK$4.1 million in 2020[58] - Profit attributable to owners of the Company was HK$3.8 million in 2021, recovering from a loss of HK$6.9 million in 2020[58] Market Segmentation - The company reported a geographical distribution of products with 86% sold to the US and Europe combined in 2021, up from 84% in 2020[28] - The market segments for 2021 showed that Communication & Networking accounted for 36% of revenue, while Data Processing contributed 25%[27] - The communication segment generated sales of HK$64.6 million in 2021, a decrease of 4% from HK$67.5 million in 2020, contributing 26% of total revenue[48] - The data processing segment saw sales of HK$31.4 million in 2021, a 61% increase from 2020, contributing 13% of the Group's turnover[49] - The industrial application segment reported sales of HK$87.2 million in 2021, a 10% increase from HK$79.2 million in 2020, contributing 36% of total revenue[50] - High Precision and Reliability Segment sales were HK$60.4 million in 2021, down from HK$64.5 million in 2020, contributing 25% of total revenue[51] - Data Processing Segment sales increased by 61% to HK$31.4 million in 2021, contributing 13% of total revenue[52] - Industrial Applications Segment sales rose by 10% to HK$87.2 million in 2021, contributing 36% of total revenue[53] Assets and Liabilities - The net assets of the company as of 2021 were HK$864.1 million, slightly up from HK$860.8 million in 2020[26] - As of December 31, 2021, Datronix had a cash balance of HK$208.2 million and no bank loans[45] - As of December 31, 2021, total equity was approximately HK$878.2 million, up from HK$865.6 million in 2020[59] - Cash and cash equivalents were approximately HK$208.2 million as of December 31, 2021, down from HK$256.7 million in 2020[59] - The Group had no material contingent liabilities as of December 31, 2021[65] Management and Governance - The Group's Vice President and General Manager of U.S. operations, Mr. Bradley D. Turner, has over 33 years of experience in operations management, sales, and engineering of magnetic and passive electronic components[86] - Ms. Mok Sim Wa, the Finance Manager, has over 9 years of experience in auditing, accounting, and taxation matters, and holds a Master's Degree in Business Administration[87] - Mr. Ng Chan Chung, the Operation Manager, has over 30 years of experience in the magnetic component manufacturing industry[88] - The Group's Executive Director, Ms. Siu Nina Margaret, has over 3 years of experience in the U.S. syndication loan market involving major listed companies[76] - The Group's Independent Non-executive Director, Mr. Lee Kit Wah, has been practicing as a certified public accountant in Hong Kong since 1988[82] - The Group's Independent Non-executive Director, Mr. Wong Wah Sang, has over 30 years of experience in the manufacturing industry, including corporate management and market expansion[82] - The Group's Independent Non-executive Director, Mr. Chung Pui Lam, has been serving as a consultant to numerous commercial enterprises and associations[77] - The Group's management team includes individuals with extensive educational backgrounds, including degrees from prestigious universities such as the University of California, Los Angeles, and the University of Toronto[76][82] - The Group has a diverse board of directors with a mix of executive and independent non-executive members, enhancing governance and strategic oversight[81] - The Group's management structure reflects a strong emphasis on finance, operations, and market development, positioning it for future growth[86][87][88] Customer and Supplier Relationships - The company has over 300 customers, primarily in telecommunications, data processing, automotive, and medical equipment sectors[33] - The largest customer accounted for 23% of the Group's total sales, while the five largest customers collectively represented 69% of total sales[97] - The largest supplier contributed 18% to the Group's total purchases, and the five largest suppliers together accounted for 49% of total purchases[97] - The company views its suppliers as strategic partners and values its employees as one of its greatest strengths[125] Corporate Governance and Compliance - The company has confirmed that all connected transactions were entered into in the ordinary course of business and on terms no less favorable than those available to independent third parties[169] - The auditor has confirmed that there were no issues regarding the approval of connected transactions by the Board[169] - The Company has maintained a public float of more than 25% of its issued shares as required under the Listing Rules[185] - The financial statements have been audited by BDO Limited, with a resolution for its reappointment to be proposed at the upcoming Annual General Meeting[186] - The Company has complied with the Corporate Governance Code provisions, except for the non-segregation of the roles of chairman and chief executive officer[193] - The roles of chairman and chief executive officer are held by Mr. Siu Paul Y., which the Board believes provides strong and consistent leadership[194] - The Group strictly complied with applicable laws and regulations that significantly impacted its operations during the year[126] Future Strategies - Future strategies include expanding product offerings and enhancing market presence in high-growth regions[32] - The Group's operations are subject to various risks and uncertainties that may impact business prospects and operating results[121] - The markets served by the Group are cyclical and sensitive to economic conditions, which may cause fluctuations in operating results[121] - The Group's products are sold in highly competitive markets, necessitating strong product development and quality to maintain market position[121] - Future success is significantly dependent on the contributions of the management team and technical personnel[121] Dividends and Share Capital - The directors recommended a final dividend of HK$0.01 per share, totaling HK$3,200,000 for the year ended 31 December 2021[102] - The company reported no change in share capital during the year and did not grant any share options[127] - As of December 31, 2021, the directors held a total of 231,412,000 ordinary shares of HK$0.1 each[143] - The company has no provisions for pre-emptive rights under its Bye-laws and Bermuda laws[159] - The share option scheme adopted in 2001 expired on June 6, 2011, with no new options granted since then[127] Employee and Stakeholder Engagement - The Group provides a defined contribution retirement scheme under the Mandatory Provident Fund Scheme, with both employer and employees contributing 5% of relevant income[175] - The company engaged various stakeholders, including employees, customers, regulators, and business partners, through multiple engagement channels[124] - The Group aims to provide quality service and products to its customers[125]
连达科技控股(00889) - 2021 - 年度财报