Financial Performance - The group's revenue for the year ended December 31, 2021, reached HKD 35,298 million, a 75% increase from HKD 20,164 million in 2020[7] - The profit attributable to shareholders for the same period was HKD 713 million, representing a 172% increase compared to HKD 262 million in the previous year[7] - The basic earnings per share rose to HKD 113.96, up 172% from HKD 41.85 in 2020[7] - The gross profit for the year was HKD 1,587 million, an increase of 82.1% from HKD 871 million in 2020, with a gross margin of 4.5%[13] - In 2021, the company recorded sales revenue of HKD 35.14 billion, an increase of 76% compared to HKD 19.95 billion in the previous year[15] - Total revenue for the year ended December 31, 2021, was HKD 35,297,778, an increase of 75.0% from HKD 20,164,341 in 2020[117] - Net profit for the year was HKD 925,134, up 164.5% from HKD 349,883 in 2020[117] - Total comprehensive income for the year was HKD 944,944, compared to HKD 455,225 in 2020, marking a rise of 107.5%[118] Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.30 per share, bringing the total dividend for the year to HKD 0.45, a 114% increase from HKD 0.21 in 2020[14] - The company has adopted a dividend policy prioritizing cash dividends and sharing profits with shareholders, subject to board discretion and shareholder approval[63] - The company proposed a final dividend of HKD 0.30 per share for shareholders listed on the register as of May 30, 2022[62] Customer and Market Position - The company serves over 10,000 customers, including more than 100 well-known semiconductor suppliers[1] - The group ranked as the 9th largest semiconductor distributor globally and the largest in China and Hong Kong by revenue according to Gartner[1] - The company achieved significant revenue growth in the mobile phone segment by providing competitive products to major Chinese smartphone manufacturers[17] Financial Health and Ratios - The company's current ratio improved to 126% as of December 31, 2021, compared to 117% in the previous year[26] - The net capital debt ratio decreased to 21% from 38% year-on-year, with net borrowings of approximately HKD 596.66 million[26] - Operating cash inflow for 2021 was HKD 348.3 million, compared to HKD 332.0 million in 2020[27] - The company's distributable reserves as of December 31, 2021, amounted to HKD 225,446,000, a decrease from HKD 400,950,000 in 2020[68] Governance and Management - The group has a strong management team with over 20 years of experience in the electronics industry, including key executives responsible for overall administration and sales[36] - The group has a diverse board of directors, including independent non-executive directors with extensive experience in finance and accounting[35] - The board consists of 5 executive directors, 1 non-executive director, and 4 independent non-executive directors, with a total of 11 directors[38] - The company adhered to the corporate governance code as per the Hong Kong Stock Exchange rules for the year ending December 31, 2021, with specific deviations noted[37] Risk Management - The company faced various risks, including exchange rate risk, interest rate risk, credit risk, and liquidity risk, which are monitored closely[75] - The group has established foreign exchange forward contracts to hedge against foreign currency risks associated with sales, procurement, and bank deposits primarily in USD and RMB[28] Charitable Contributions - The company actively contributed HKD 1.5 million to charitable organizations in Hong Kong and China in 2021[23] - The company made charitable donations of approximately HKD 1,507,000 during the year[104] Inventory and Assets - The carrying amount of inventory as of December 31, 2021, was HKD 2,654,073,000, with a provision for obsolete and slow-moving inventory of HKD 132,155,000[108] - Total assets increased to HKD 7,836,642,000 in 2021 from HKD 5,692,336,000 in 2020, representing a growth of approximately 37.6%[119] - Inventory rose significantly to HKD 2,654,073,000 in 2021, up from HKD 1,801,012,000 in 2020, marking an increase of about 47.4%[119] Financial Reporting and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2021[105] - The company is committed to high levels of corporate governance as a key to business development and shareholder protection[37] - The group’s financial statements include appropriate disclosures as required by the Listing Rules and the Hong Kong Companies Ordinance[142] Future Outlook - The company plans to focus on the long-term demand for complex electronic components supporting 5G and data centers as a key growth market[22] - The group anticipates that the application of new and revised Hong Kong Financial Reporting Standards will not have a significant impact on the consolidated financial statements in the foreseeable future[140]
S.A.S. DRAGON(01184) - 2021 - 年度财报