Financial Performance - Revenue for 2021 reached HK$21,950.4 million, with 64% from ferrous metals and 33% from non-ferrous metals[14] - Gross profit for the year was HK$1,888.5 million, reflecting a significant contribution from metal recycling operations[14] - The profit for the year was HK$1,117.5 million, compared to a loss of HK$577.3 million in 2020[15] - The Group's total tonnage and revenue for the fiscal year 2021 were 4.33 million tonnes and HK$21,950.4 million, representing increases of 0.8% and 64.2% compared to 2020[47] - Gross profit for the year rose by 99.5% compared to 2020, with the gross profit margin increasing from 7.1% in 2020 to 8.6% in 2021[47] - Profit before interest and tax (EBIT) improved significantly, reaching HK$1,117.5 million compared to a loss of HK$577.3 million in 2020, marking a 293.6% increase[63] - The profit for the year turned positive at HK$692.0 million, a 180.1% increase from a loss of HK$864.2 million in 2020[63] - Basic earnings per share improved to HK$0.44 from a loss per share of HK$0.53 in the previous financial year[75] Operational Highlights - The total tonnage processed in 2021 was 4,327,171 tonnes, a slight increase from 4,292,449 tonnes in 2020[16] - The company achieved a total recovery rate of approximately 97% for end-of-life vehicles, exceeding the EU directive target of 95%[19] - The company operates 80 yards in Germany, covering a wide range of collection, sorting, and processing services[26] - Chiho recorded significant growth in both top-line and bottom-line performance for the fiscal year 2021[40] - The rebound of global industrial activities led to strong demand for ferrous and non-ferrous metals, benefiting Chiho directly[41] - The European segment revenue surged by 78.8% to HK$19,150.0 million from HK$10,708.9 million in the previous year[63] - The Asian segment revenue grew by 24.6% to HK$2,130.8 million from HK$1,710.5 million in 2020[63] - The North American segment revenue decreased by 6.8% to HK$1,012.4 million from HK$1,086.1 million in the previous year[63] Investments and Future Plans - Investments in new recycling facilities for end-of-life vehicles and electric vehicle batteries are expected to commence operations in 2022[22] - Heavy investments were made in operations in China, focusing on establishing new recycling facilities for industrial and electric vehicle batteries[43] - The new industrial recycling facility in Binzhou, China, is expected to bring long-term revenue growth[43] - The company plans to recycle approximately 60,000 EV batteries annually, leveraging new facilities in Binzhou and Taizhou[54] - A new ELV and EV battery recycling facility is planned in Taizhou, China, designed to process up to 50,000 ELVs and 10,000 tonnes of EV batteries per year[50] Financial Ratios and Management - The current ratio improved to 16.7% in 2021 from 23.3% in 2020, indicating better liquidity management[16] - The gearing ratio increased to 1.13 in 2021 from 1.03 in 2020, reflecting a rise in financial leverage[16] - Total external borrowings as of December 31, 2021, were HK$1,661.9 million, down from HK$2,298.4 million in 2020[77] - The Group's financial resources remain steady, with cash and bank balances amounting to HK$924.7 million as of December 31, 2021[75] - The improvement in gross profit margin is attributed to margin management during rising scrap prices and a focus on high-margin businesses[73] Corporate Governance and Leadership - The Company aims to increase transparency with investors and shareholders to strengthen corporate governance[121] - The board continues to engage regularly with investors to keep them informed of corporate and business developments[121] - The Company is focused on expanding its strategic and investment committees to enhance decision-making processes[135] - The Company aims to leverage the extensive experience of its directors in mergers and acquisitions to drive future growth[138] - The Company has undergone significant leadership changes, with multiple executives resigning from key positions within a short timeframe[165] Risk Management - The Group's risk management strategy aims to mitigate market risks including commodity price risk, foreign currency risk, interest rate risk, credit risk, and liquidity risk[110] - The Group's commodity price risk hedging policy has been updated to adapt to changing operating conditions[110] - The Board closely monitors foreign currency borrowings due to the volatility of exchange rates[110] Employee and Workforce - As of December 31, 2021, the Group had a workforce of 2,866 employees, an increase from 2,832 employees in 2020[112] - The Group's total staff costs for the year were approximately HK$1,111.0 million, compared to HK$1,065.6 million in 2020, reflecting an increase of about 4.3%[113] - The remuneration of employees is determined based on market standards, individual performance, and contributions to the Group[113]
齐合环保(00976) - 2021 - 年度财报