Financial Performance - The company's revenue for the year ended December 31, 2021, was HKD 283.4 million, a decrease of 62.7% compared to HKD 760.7 million in 2020[6]. - The gross profit for the year was HKD 16.0 million, down 64.5% from HKD 45.1 million in the previous year, with a gross margin of 5.7% compared to 5.9% in 2020[14]. - The health business generated revenue of approximately HKD 98.1 million, a decline of about 77.9% year-on-year, while the electronic components business contributed HKD 185.3 million, accounting for 65.4% of total revenue[10][12]. - The company recorded a loss attributable to owners of approximately HKD 0.9 million for the year, compared to a loss of HKD 0.8 million in the previous year[16]. - The electronic components business had a gross margin of 7.7%, significantly higher than the health business's gross margin of 1.8%[10]. Asset and Liability Management - Total assets at the end of the year were HKD 738.6 million, slightly up from HKD 735.5 million in 2020, while total liabilities increased to HKD 68.1 million from HKD 62.3 million[6]. - Non-current assets decreased by approximately 73.4% to about HKD 48.1 million as of December 31, 2021, primarily due to the sale of a subsidiary[20]. - Current assets totaled approximately HKD 690.5 million, an increase from HKD 554.8 million in 2020, while current liabilities rose to about HKD 68.1 million from HKD 61.6 million[20]. - The current ratio improved to approximately 10.1 times as of December 31, 2021, compared to 9.0 times in 2020[20]. - Inventory value increased by approximately 39.4% to HKD 455.1 million from HKD 326.4 million in 2020[20]. Strategic Initiatives - The company plans to continue monitoring market conditions and diversify its product range and customer base to maintain a competitive advantage[9]. - The company aims to maximize shareholder profits by focusing on the electronic components business, which has shown better profitability compared to the health business[8]. - The company plans to continue exploring opportunities to diversify its product portfolio and expand revenue sources in the future[18]. - The company emphasized that the divestiture allows for a more focused investment in core business areas, enhancing asset returns amid a sluggish real estate market[32]. Corporate Governance - The company has a strong management team with over 30 years of experience in finance and accounting, led by the Chief Financial Officer who is a senior member of multiple accounting associations[45]. - The company has implemented a robust internal control system to enhance corporate governance and protect shareholder interests[55]. - The board consists of a total of ten directors, including four non-executive directors, three executive directors, and three independent non-executive directors, ensuring a balanced decision-making process[58]. - The company is committed to adhering to the corporate governance code as outlined in the listing rules, demonstrating its dedication to accountability and transparency[55]. - The audit committee's main responsibilities include providing independent opinions on the effectiveness of the group's financial reporting procedures and internal controls[74]. Shareholder Information - The total reserves available for distribution to shareholders as of December 31, 2021, amounted to approximately HKD 546,407,000, a slight decrease from HKD 550,976,000 in 2020[119]. - The company did not recommend any dividend payment for the year, consistent with the previous year[116]. - The company has adopted a dividend policy on January 1, 2021, allowing shareholders to share in profits while retaining sufficient reserves for future development[96]. Environmental Responsibility - The company plans to continue enhancing resource efficiency and applying green technologies to minimize environmental impact[165]. - The company reported direct carbon emissions of 13.49 tons and indirect emissions of 24.41 tons for the year, compared to 7.57 tons and 34.5 tons respectively in the previous year[188]. - The company aims to reduce carbon emissions by encouraging the use of teleconferencing and minimizing business travel in the coming years[189]. - The company has established a collection area for recyclable materials, including paper, plastic, and metal, to enhance waste recycling efforts[190]. - The company is committed to complying with all relevant environmental laws and regulations applicable to its business operations[185]. Risk Management - The main risks and uncertainties faced by the group include credit risk, currency risk, and liquidity risk as of December 31, 2021[172]. - The group has implemented appropriate internal controls and quality control measures to ensure compliance with the Sale of Goods Ordinance in Hong Kong[169]. - The company has not experienced any violations of laws and regulations that had a significant impact on the group during the year[170].
前海健康(00911) - 2021 - 年度财报