Financial Performance - The total revenue for the year ended December 31, 2021, was approximately HKD 4,053,908,000, representing a 36% increase compared to the previous year[35]. - The profit attributable to shareholders for the year was approximately HKD 197,584,000, an increase of 111% year-on-year[37]. - The growth in revenue was driven by average growth in the two core businesses, metal products and construction materials, along with rising commodity prices, including steel[36]. - The gross profit margin was under pressure due to rapidly rising raw material costs[37]. - The group's revenue for the year was approximately HKD 1,618,359,000, an increase of 22% compared to the previous year[41]. - The group's interest and tax pre-profit was approximately HKD 122,228,000, a decrease of 12% compared to the previous year[41]. - The construction materials business generated revenue of approximately HKD 2,441,607,000, an increase of 46% year-on-year[44]. - The interest and tax pre-profit for the construction materials business was approximately HKD 67,223,000, an increase of 47% year-on-year[44]. - The company reported retained earnings of HKD 117,465,000 as of December 31, 2021, compared to HKD 107,333,000 in the previous year, reflecting an increase of approximately 10.55%[195]. - The total distributable reserves available to shareholders as of December 31, 2021, amounted to HKD 183,356,000, up from HKD 173,224,000 in the previous year[195]. Challenges and Market Conditions - The company faced challenges during the year due to the COVID-19 pandemic, supply chain disruptions, and significant fluctuations in commodity prices, particularly in the second half of the year[37]. - The group anticipates that the business environment will remain unstable in 2022, with ongoing challenges and uncertainties[51]. Corporate Governance - The company has appointed Ms. Peng Yunping as the CEO since January 1, 2022, ensuring compliance with the corporate governance code regarding the separation of roles between the chairman and CEO[60]. - The board of directors consists of four executive directors and three independent non-executive directors, with Mr. Peng Dezhong serving as the chairman[62]. - The company has established a nomination committee as of December 30, 2021, to comply with the corporate governance code[60]. - The company has maintained compliance with the standards set forth in the Securities Trading Code for directors during the fiscal year ending December 31, 2021[61]. - The company has a strong focus on maintaining good corporate governance practices as outlined in the Hong Kong Stock Exchange listing rules[60]. - The company has a comprehensive insurance policy for all directors and senior management to cover their responsibilities[65]. - The company has adopted a board diversity policy to enhance the benefits of diversity in board appointments[75]. - The company encourages directors to participate in external courses to enhance their knowledge of their roles and responsibilities[66]. - The board has adopted a nomination policy outlining the selection criteria and nomination procedures for new and reappointed directors, focusing on educational background, professional qualifications, industry experience, character, and integrity[81]. Risk Management - The risk management and internal control systems are integrated into daily operations, with the board overseeing the risk management process and evaluating potential risks[86]. - The company has established policies and procedures in various risk areas, including financial, operational, and strategic risks, to prevent unauthorized asset use and ensure reliable financial reporting[86]. - The board believes that the risk management and internal control systems are effective and sufficient, with no significant concerns affecting shareholders identified[89]. Employee and Workforce - The total number of employees in the group is 1,345, with 89% being male[104]. - The employee turnover rate for the reporting period was 28%, up from 21% in 2020, indicating a significant increase in workforce instability[124]. - The workforce is predominantly male, with 1,260 males (84%) and 245 females (16%)[134]. - The group operates primarily in Mainland China (1,237 employees) and Hong Kong (268 employees)[137]. - The managerial level comprises 109 employees, while supervisory and general staff levels include 81 and 1,315 employees, respectively[135]. - During the reporting period, 1,345 employees (89%) received training, totaling approximately 31,000 hours, with an average training time of 23 hours per employee[146]. - The group recorded 3,292 lost workdays due to work injuries, with no severe injuries or fatalities reported during the year[144]. Environmental, Social, and Governance (ESG) - Four major areas identified for environmental, social, and governance (ESG) focus are occupational health and safety, environment, social, and governance[109]. - The company aims to enhance its sustainable development performance through responsible stakeholder engagement[98]. - The report is prepared in accordance with the guidelines set by the Hong Kong Stock Exchange[101]. - Total direct and indirect carbon emissions for the fiscal year 2021 amounted to 1,910 tons of CO2 equivalent, an increase of 1.38% compared to 2020[115]. - The total amount of chemical waste generated was 0.8 tons, maintaining the same level as in 2020, while non-hazardous waste totaled 9,396 tons, a decrease of 14.31% from 2020[117]. - The company aims to reduce carbon emissions and improve operational efficiency as part of its commitment to sustainable growth[115]. - The company has implemented measures to manage hazardous and non-hazardous waste sustainably, aiming to minimize environmental impact[117]. - The company emphasizes the importance of water conservation and has implemented water management plans to reduce usage and improve drainage quality[123]. - The company adheres to labor rights and human rights, with no reported violations regarding child or forced labor during the reporting period[156]. Dividends and Shareholder Returns - The company paid an interim dividend of HKD 0.02 per share, totaling approximately HKD 11,488,000[192]. - The proposed final dividend is HKD 0.03 per share and a special dividend of HKD 0.05 per share, amounting to approximately HKD 45,950,000[192].
高力集团(01118) - 2021 - 年度财报