Financial Performance - The company reported a comprehensive loss attributable to shareholders of HKD 19,943,000 for the year ended December 31, 2021, an increase in loss of 624.9% compared to HKD 2,751,000 in 2020[14]. - Revenue for the year was HKD 196,231,000, reflecting a 2.5% increase from HKD 191,404,000 in 2020[11]. - The operating loss for 2021 was HKD (17,692,000), compared to a profit of HKD 2,020,000 in 2020[71]. - The pre-tax loss for 2021 was HKD (19,686,000), worsening from a loss of HKD (2,624,000) in 2020[71]. - The total assets as of December 31, 2021, were HKD 228,284,000, with total liabilities of HKD 53,748,000[73]. - The group reported a cash and cash equivalents balance of HKD 18,942,000, a decrease of 68.9% from HKD 60,939,000 in the previous year[32]. - The group had no interest-bearing loans as of December 31, 2021, compared to HKD 386,000 in interest-bearing loans in 2020[33]. - The group recognized an impairment loss of approximately HKD 4,500,000 in the consolidated income statement for the year ended December 31, 2021, due to operating losses[196]. Sales and Production - The sales volume of cowhide leather decreased by 18.0% to 12,262 thousand square feet from 14,949 thousand square feet in 2020[11]. - The total production of cowhide leather for the year was 11,706,000 square feet, a decrease of 10.4% from last year's 13,058,000 square feet[24]. - The total sales of cowhide leather for the year were 12,262,000 square feet, down 18.0% from last year's 14,949,000 square feet[24]. - Sales of cowhide leather amounted to HKD 171,485,000, a slight increase of 0.4% from HKD 170,736,000 in 2020[26]. Dividends and Shareholder Returns - The company did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with 2020[15]. - The company did not declare an interim dividend during the year and the board does not recommend a final dividend for the year ended December 31, 2021[54]. - The board aims to provide stable and sustainable returns to shareholders, considering factors such as earnings performance, financial condition, investment needs, and future prospects when deciding on dividends[55]. Corporate Governance - The board of directors includes experienced individuals with diverse backgrounds in finance, management, and industry, enhancing the company's governance[49][50][51]. - The company has complied with the corporate governance code during the fiscal year ending December 31, 2021, except for certain disclosures due to travel restrictions[112]. - The independent non-executive directors have confirmed their independence in accordance with the listing rules[122]. - The company is committed to achieving the highest standards of corporate governance to align with business needs and stakeholder interests[112]. - The board has established a comprehensive risk management and internal control system to identify, assess, and manage significant risks faced by the Group[166]. Environmental and Operational Improvements - Environmental improvements were made, including the reconstruction of hazardous waste storage and the addition of waste gas collection facilities to enhance operational efficiency[23]. - The company has increased its investment in environmental improvement projects to comply with stricter environmental regulations[64]. - The company is committed to protecting the environment and ensuring compliance with applicable environmental standards and laws[177]. Strategic Plans and Future Development - The company plans to implement a product strategy, optimize production capacity, and promote innovation to enhance market competitiveness in 2022[18]. - The company aims to strengthen its technical team and advance product development and design to create a complete product system without generating new inventory[18]. - The company has a strategic focus on sustainable growth and market expansion, as indicated by its ongoing investments and operational strategies[56]. Risk Management - The company faced significant market risks due to the ongoing impact of the pandemic, leading to a continuous decline in demand for leather products[63]. - The liquidity risk is heightened due to shrinking market demand and potential difficulties in collecting payments from downstream shoe manufacturers[67]. - The company has implemented a cash flow forecasting model to manage liquidity risks effectively[67]. Shareholder Communication - The company promotes investor relations and communication through regular briefings, announcements, video conferences, and presentations to respond to information requests from investors[175]. - The company has established a shareholder communication policy to ensure shareholders can exercise their rights with informed knowledge[175]. - Shareholders holding at least 5% of the voting rights can request the board to convene a special general meeting within 21 days[172]. Audit and Internal Controls - The Audit Committee held four meetings during the fiscal year ending December 31, 2021, reviewing the full-year results for 2020, mid-year, and quarterly results before submission to the Board[157]. - The Board is responsible for overseeing the preparation of the financial statements for the fiscal year ending December 31, 2021, ensuring they reflect a true and fair view of the Group's affairs[163]. - The internal audit department ensures compliance with policies and procedures, risk management, and the effectiveness of internal control systems, focusing on high-risk areas for audit resources[167].
南粤控股(01058) - 2021 - 年度财报