Financial Performance - Total revenue for the year ended December 31, 2021, increased by 27.0% to HKD 4,799,800,000 compared to HKD 3,779,600,000 in 2020[14] - Gross profit for 2021 was HKD 614,700,000, with a gross margin of 12.8%, down from HKD 660,600,000 and 17.4% in 2020[14] - Profit attributable to equity holders for 2021 was HKD 193,600,000, a decrease from HKD 272,800,000 in 2020[14] - Cash and cash equivalents, along with bank deposits, amounted to HKD 601,200,000 as of December 31, 2021, down from HKD 665,400,000 in 2020[14] - The board recommended a final dividend of HKD 0.10 per ordinary share, consistent with the previous year[14] - The company reported a mid-term dividend of 0.02 HKD per share and a proposed final dividend of 0.10 HKD per share for the year ending December 31, 2021[46] - The total reserves available for distribution to equity shareholders as of December 31, 2021, were 1,155,713,000 HKD, an increase from 1,078,780,000 HKD in 2020[56] Revenue Breakdown - The plastic model division saw a sales increase of 34.3% to HKD 2,663,600,000, accounting for 55.5% of total revenue[15] - The plush toy division's revenue rose to HKD 1,407,200,000, representing a 19.0% increase and 29.3% of total revenue[17] - The waterproof cover division contributed HKD 471,900,000 in revenue, an 18.9% year-on-year increase, making up 9.8% of total revenue[18] - The injection molding products division's revenue increased by 19.1% to HKD 257,000,000, accounting for 5.4% of total revenue[18] - North America remains the largest market, contributing 70.8% of total revenue, followed by Japan at 10.2% and Europe at 8.1%[19] Operational Developments - The company plans to build a new factory in Vietnam expected to commence operations in June 2022, along with three new factories in China to increase production capacity[10] - The company has diversified its product offerings to include non-seasonal products to boost sales during off-peak periods[8] - The company acquired a waterproof cover business in 2021, contributing to stable revenue growth[8] - The company aims to strengthen supplier relationships to ensure stable raw material sourcing and reduce costs through bulk purchasing[10] - The group operates 23 factories with an average utilization rate of 81.0%, with 19 located in Vietnam[20] - In 2022, the company plans to expand capacity by opening a new plastic model factory and three plush toy factories in China[22] Employee and Workforce Information - The group employed 25,841 staff as of December 31, 2021, an increase from 23,928 the previous year[23] - Employee turnover rate for the year was 14.1%, with a total of 21,933 employees across ten subsidiaries in Vietnam and China as of December 31, 2021[175] - A total of 1,730,703 training hours were provided to employees across ten subsidiaries in 2021[183] - The total number of employees is 21,933, with a gender distribution of 2,200 males and 19,733 females[193] - Total training hours amounted to 1,730,703, with 100% of male and female employees receiving training[194] Corporate Governance - The board emphasizes the importance of good corporate governance for the company's ongoing success, focusing on board quality, robust internal controls, transparency, and accountability[86] - The board consists of four executive directors and three independent non-executive directors, ensuring a diverse and qualified leadership team[87] - All independent non-executive directors confirmed their independence in accordance with listing rules[80] - The audit committee reviewed the accounting policies and financial reporting matters for the year ending December 31, 2021[81] - The company has established committees, including the audit, remuneration, and nomination committees, primarily composed of independent non-executive directors[97] Risk Management and Compliance - The company confirmed that there are no significant uncertainties affecting its ability to continue as a going concern, and the financial statements were prepared on a going concern basis[104] - The board confirmed its responsibility for assessing the nature and extent of risks the group is willing to take to achieve its strategic objectives, ensuring effective risk management and internal control systems are in place[119] - The company has established a risk management working group to continuously review the effectiveness of its risk management and internal control systems[119] - The audit committee assists the board in monitoring financial, operational, compliance, and risk management functions, reviewing the effectiveness of the internal control systems[119] Environmental, Social, and Governance (ESG) Initiatives - The company aims to enhance environmental, social, and governance responsibilities to create greater value for stakeholders[34] - The environmental, social, and governance (ESG) report covers the period from January 1, 2021, to December 31, 2021, focusing on the production of plush toys and related products[131] - The company has implemented measures to reduce energy consumption, including reducing lighting in non-working areas and replacing existing pumps with more energy-efficient models[151] - The company has achieved compliance with various social compliance standards, including ICTI2 Care Program and Disney International Labor Standards, addressing industry-related environmental, social, and governance issues[137] - The company continues to engage stakeholders in assessing the importance of environmental, social, and governance issues, highlighting child labor, health and safety, and employee welfare as critical areas[137] Community Engagement and Contributions - Charitable donations made by the group amounted to 1,724,000 HKD for the year ending December 31, 2021, compared to 700,000 HKD in 2020[55] - Total community investment reached HKD 1,723,746 in 2021, including donations to local fire departments and direct contributions to communities in need[194] Health and Safety Measures - The company provided free masks to employees and implemented strict health measures in response to COVID-19[190] - The company has implemented occupational health and safety measures, with monitoring methods in place[200] - There were no work-related fatalities reported in 2019 and 2020[200]
德林国际(01126) - 2021 - 年度财报