Financial Performance - The total revenue for 2021 was HKD 992.9 million, a slight decrease from HKD 997.1 million in 2020[25]. - The net profit for 2021 was HKD 267.0 million, compared to HKD 251.7 million in 2020, reflecting an increase of 6.5%[29]. - The diluted earnings per share for 2021 was HKD 0.156, up from HKD 0.14 in 2020, representing a growth of 11.4%[31]. - The gross profit for 2021 was HKD 44.0 million, compared to HKD 21.4 million in 2020, indicating a significant increase[32]. - The company recorded total sales revenue of HKD 1,163.1 million in 2021, a 32.6% increase from HKD 877.2 million in 2020, driven by strong demand for hydrophilic colloid products[37]. - Net profit for the year increased to HKD 103.9 million, up 36.9% from HKD 67.0 million in 2020, attributed to a 27.2% increase in sales volume and a 1.4 percentage point rise in gross margin[37]. - The company's agar products are ranked first in sales value in both the domestic and global markets, while carrageenan products are ranked first in China[5]. - Agar product sales amounted to HKD 291.4 million, a 20.6% increase from HKD 241.5 million in 2020; carrageenan sales reached HKD 685.7 million, up 33.1% from HKD 515.2 million[38]. Assets and Liabilities - The total assets as of December 31, 2021, were HKD 933.3 million, down from HKD 1,212 million in 2020[28]. - The group's sales cost for the year ended December 31, 2021, was HKD 892.7 million, a 30.1% increase from HKD 686.3 million in 2020, primarily due to rising raw material and labor costs[57]. - The net cash and bank balance as of December 31, 2021, was HKD 133.8 million, down from HKD 171.8 million in 2020, reflecting a decrease of HKD 38.0 million[67]. - The group's total bank borrowings amounted to HKD 594.4 million, with HKD 500.2 million due within one year[69]. - The net current assets increased to HKD 322.4 million from HKD 271.8 million in 2020, primarily due to increases in inventory and trade receivables[68]. Investments and Acquisitions - The company completed the acquisition of 82% of Hongtai Shun International Trading Co., which holds 99.83% of PT Hongxin Algae International, enhancing its production capacity in Indonesia[15]. - The company completed a share acquisition agreement to increase its stake in Green Qi Trading (Shanghai) Co., making it a wholly-owned subsidiary[43]. - The company plans to acquire 35% and 4% equity stakes in its non-wholly owned subsidiary, Green Qi (Shanghai), for a total consideration of RMB 1.42 million and RMB 163,000 respectively[92]. - The company will sell its 51% stake in Shengxi (Shanghai) for a cash consideration of HKD 12.7 million, resulting in Shengxi (Shanghai) no longer being a subsidiary[92]. - The company has completed the acquisition of a majority stake in Hongxin, a company in Indonesia, to enhance operational efficiency and access to seaweed resources[55]. Research and Development - The number of R&D personnel increased to 65 in 2021, up from 59 in 2020, highlighting a focus on innovation[7]. - The company is focusing on product research and development, particularly in high-value baking products and health foods, to drive future growth[55]. - The company plans to diversify its end products and applications, which is expected to be a key driver for future expansion[52]. Market Performance - Domestic sales accounted for 47.9% of total sales in 2021, while overseas sales made up 52.1%, with respective growth rates of 37.4% and 28.4%[39]. - The company expects further growth in overseas sales as global COVID-19 restrictions ease and international trade exhibitions resume[39]. - The company anticipates a recovery in global food demand as COVID-19 restrictions are expected to be lifted, benefiting its position as a leading food ingredient supplier[48]. Shareholder Returns - A final cash dividend of HKD 0.025 per share was proposed, totaling HKD 20.5 million, reflecting the company's commitment to shareholder returns[42]. - The company reported a final dividend of HKD 0.025 per share, totaling HKD 20.5 million for the year ended December 31, 2021, compared to HKD 20.4 million in 2020[119]. Corporate Governance - The board consists of eight directors, including four executive directors, one non-executive director, and three independent non-executive directors[187]. - The independent non-executive directors have confirmed their independence and do not hold any business or financial interests in the company[189]. - The company has adopted the corporate governance code and has complied with its principles throughout the year, with a minor deviation explained in the report[185]. - The audit committee is responsible for reviewing financial statements and overseeing risk management policies, consisting of three independent non-executive directors[180]. Employee Relations - The company has maintained strong relationships with employees, customers, and suppliers, ensuring no significant disputes occurred during the year[125]. - As of December 31, 2021, the total employee cost, including director remuneration, was HKD 119.2 million, up from HKD 91.2 million in 2020[78]. - The company has established a compensation policy based on employee performance, qualifications, and capabilities, with stock option plans adopted for eligible individuals[161]. Environmental and Regulatory Compliance - The company reported no environmental violations or exceedances for the year ending December 31, 2021, and is committed to reducing overall emissions[126]. - The company has complied with all relevant laws and regulations, with no significant violations reported during the review period[127]. Future Outlook - The company maintains a cautiously optimistic outlook for 2022, despite ongoing uncertainties related to COVID-19[55]. - The company plans to accelerate investment in the second phase of Hongxin's capacity expansion to meet growing product demand[40].
绿新生物科技(01084) - 2021 - 年度财报