Financial Performance - For the fiscal year 2021, Courage Investment Group Limited reported a revenue increase of 23% to $9,738,000, up from $7,920,000 in 2020[13] - The company achieved a profit attributable to owners of $10,488,000, compared to a loss of $3,470,000 in the previous year, marking a significant turnaround[13] - Basic earnings per share improved to $0.96, compared to a basic loss per share of $0.54 in 2020[13] - Total comprehensive income for the year was $12,122,000, a significant increase from a total comprehensive loss of $3,133,000 in the previous year[37] - The company reported a net profit attributable to shareholders of $10,488,000 for the fiscal year 2021, compared to a loss of $3,470,000 in 2020[37] Shipping Business - The shipping business contributed a profit of $3,938,000, an increase from $1,716,000 in 2020, driven by improved market conditions[13] - The shipping business achieved a revenue growth of 36% to $8,976,000, with profit increasing by 129% to $3,938,000, attributed to the recovery of major economies and increased demand for shipping services[20] - The Baltic Dry Index exceeded 5,600 points in October 2021, reaching a five-year high, indicating a favorable market outlook for shipping rates[14] - The overall market conditions for the shipping industry are expected to remain stable, with cautious optimism for the medium to long-term outlook[14] - The Baltic Dry Index, closely related to market freight rates, fluctuated significantly, reaching a low of approximately 1,300 points in February 2021 and exceeding 5,600 points in October 2021, indicating a favorable market outlook for the shipping business[20] Investment Strategy - Courage Investment Group Limited aims to explore potential investment and acquisition opportunities to enhance long-term benefits for the company[14] - The company plans to continue its strategy of acquiring a second-hand dry bulk carrier, despite significant price increases in the market during the fiscal year[14] - The group plans to continue its strategy of acquiring a second-hand dry bulk carrier, considering the current volatile market conditions for such vessels[22] - The estimated funding required for acquiring a second-hand ultra-flexible vessel ranges from $7,000,000 to $12,000,000, while the current market price for such vessels has increased to approximately $10,000,000 to $18,000,000, reflecting a 40%-50% increase from previous estimates[45] Financial Position - Current assets as of December 31, 2021, were $13,122,000, an increase from $11,740,000 in 2020[38] - The current ratio improved to approximately 2.44 from 1.58 in the previous year, primarily due to the reclassification of debt instruments to current assets[38] - The company's equity attributable to shareholders increased to $61,452,000, up by $11,912,000 from $49,540,000 in 2020[38] - The company's total borrowings were $9,786,000 as of December 31, 2021, down from $15,875,000 in 2020, resulting in a debt-to-equity ratio of approximately 16%[42] Risk Management - The group has identified significant risks, including economic risks related to the COVID-19 pandemic and the ongoing US-China trade disputes, which have caused substantial fluctuations in the Baltic Dry Index[58] - The board is responsible for assessing the company's risk tolerance and overseeing the risk management and internal control systems[153] - The group conducted an annual risk assessment to identify and manage significant strategic, financial, operational, and compliance risks[156] - The internal audit function was reviewed, and no significant weaknesses in internal controls or risk management were identified[157] Corporate Governance - The company has complied with all applicable code provisions of the Corporate Governance Code during the year ended December 31, 2021[123] - The board of directors has undergone changes, with several appointments and resignations noted during the year[93] - The company has adopted a dual leadership structure, separating the roles of the chairman and the CEO[133] - The chairman of the board is currently Mr. Su Ka Lok, while the CEO is Mr. Yuen Chi Lap[134] Employee and Customer Relations - Employee costs for the fiscal year 2021 amounted to $778,000, an increase from $416,000 in 2020, reflecting a growing workforce and rising compensation[54] - The company recognizes the importance of maintaining good relationships with employees, customers, and suppliers to achieve its business goals, with no major disputes reported in the fiscal year 2021[67] - The top five customers accounted for approximately 93.6% of total sales for the year, up from 89.3% in 2020, with the largest customer representing about 36.5%[92] Environmental, Social, and Governance (ESG) - The environmental, social, and governance (ESG) report reviews the company's initiatives and performance in environmental protection and labor practices for the fiscal year ending December 31, 2021[172] - The company aims to reduce total greenhouse gas emissions intensity by 10% by 2026, using the fiscal year 2021 as the baseline[195] - The company has no direct greenhouse gas emissions as it does not own any vehicles and has leased out its three vessels for the entire fiscal year 2021[196] - The company emphasizes the importance of stakeholder engagement and maintains close communication with various stakeholders, including government, shareholders, employees, customers, suppliers, media, and the public[184]
勇利投资(01145) - 2021 - 年度财报