Financial Performance - Revenue growth rate for the year was 29.2%[16] - The company's revenue for the year ended December 31, 2021, was HKD 3,777.7 million, an increase of 29.2% compared to HKD 2,924.6 million in 2020[33] - The profit attributable to shareholders was HKD 382.8 million, a significant increase of 358.3% from a loss of HKD 148.2 million in the previous year[33] - Adjusted profit attributable to shareholders rose by 34.7% to HKD 422.2 million from HKD 313.4 million in 2020[33] - Basic earnings per share increased to HKD 0.203 from a loss of HKD 0.079, representing a growth of 357.0%[33] - EBITDA for the year was HKD 910.0 million, up 155.1% from HKD 356.7 million in 2020[33] - Gross profit rose by 33.2% to HKD 1,022.4 million, with a gross margin of 27.1%, up from 26.2% in the previous year[54][58] - Operating profit surged to HKD 493.0 million, a significant increase of 1,640.6% from a loss of HKD 32.0 million in 2020[54] - Adjusted profit before tax was HKD 468.6 million, compared to a loss of HKD 52.8 million in the prior year, reflecting a 987.5% increase[54][55] Revenue Breakdown - The investment in the precision casting segment accounted for 41.2% of the total revenue for the year ended December 31, 2021[21] - The precision machining segment contributed 35.4% to the total revenue for the year ended December 31, 2021[21] - The sand casting segment represented 15.3% of the total revenue for the year ended December 31, 2021[22] - Surface treatment services accounted for 8.1% of the total revenue for the year ended December 31, 2021[23] - Over half of the precision castings were sold to the Americas, followed by Europe and Asia (including China) in 2021[21] - Approximately half of the precision machining products were sold to Europe, with about one-third to the Americas and the remainder to Asia (including China) in 2021[21] - The majority of surface treatment customers were from the Chinese passenger vehicle market in 2021[23] Market Presence and Operations - The company employs over 7,100 staff, including approximately 700 engineers from around the world[17] - The company has established a global footprint with 19 production facilities across China, Turkey, Germany, the Czech Republic, and Mexico, of which 15 are operational and 4 are under construction[20] - The company serves over 1,000 customers from more than 30 countries and regions[17] - The company has nine sales offices and storage capabilities in China, the USA, Luxembourg, Germany, Turkey, and Mexico[20] - The company aims to become a global leader in providing high-precision, high-complexity, and performance-critical components and solutions[3] - The company has established long-term strategic partnerships with multiple globally recognized industry leaders[13] Challenges and Strategic Initiatives - The company faced challenges due to the ongoing COVID-19 pandemic, impacting demand in various markets, but strong demand from U.S. customers helped maintain sales momentum in the second half of the year[39] - The company is expanding its manufacturing capabilities in Mexico, with five factories nearing completion and starting production, contributing to the positive financial outlook[38] - The company established the "Eagle Precision Aviation Technology Division" in July 2021[30] - The merger of two German factories under BFG Group was completed in December 2021, renaming it BFG Feinguss GmbH[30] Sustainability and Corporate Governance - The company’s comprehensive energy consumption per unit of revenue decreased by 2.2% year-on-year, while greenhouse gas emissions per unit of revenue reduced by 1.9%[50] - The company plans to enhance its R&D capabilities to provide more diversified customized products and services, aiming for sustainable profit growth[51] - The company received over HKD 400 million in green loans from DBS Bank and Citibank to support energy investments in 2021[98] - The company has established an "Aerospace Technology Division" in July 2021 to better serve the aerospace and medical markets[49] - The company plans to release an independent ESG report detailing its sustainable development performance, following guidelines from the Hong Kong Stock Exchange[98] Shareholder Returns and Dividends - The company declared a total dividend of HKD 0.101 per share for the year, a 140.5% increase from HKD 0.042 per share in the previous year[38] - The company maintained a policy to distribute no less than 25% of the attributable profit to shareholders as dividends, subject to operational needs and future business expansion plans[162] - The company declared an interim dividend of HKD 0.029 per share, totaling HKD 54.6 million, paid on September 10, 2021[161] - A second interim dividend of HKD 0.072 per share, approximately HKD 135.6 million, is expected to be paid on April 8, 2022[161] Management and Employee Insights - The company has established an investor relations department to facilitate communication with analysts, institutional investors, and shareholders, providing necessary operational and strategic information[143] - The management team emphasized the importance of sustainability initiatives, aiming for a 40% reduction in carbon emissions by 2025[150] - The company has introduced two new product lines, which are anticipated to contribute an additional $50 million in revenue annually[149] - The management team collectively brings over 100 years of experience in industrial engineering and business development, enhancing the company's strategic capabilities[155] Financial Position and Debt - Total debt increased by 80.9% to HKD 1,544.9 million from HKD 853.8 million in 2020[33] - Net debt surged by 283.6% to HKD 965.9 million from HKD 251.8 million in the previous year[33] - The debt-to-equity ratio as of December 31, 2021, was 22.1%, up from 6.2% the previous year, driven by increased working capital and capital expenditures for the Mexican factory[76] - Total borrowings increased by HKD 691.1 million to HKD 1,544.9 million as of December 31, 2021, compared to HKD 853.8 million the previous year[74] Audit and Compliance - The audit committee held four meetings during the year, with all members present at each meeting[113] - The audit committee is responsible for reviewing the company's financial controls, internal controls, and risk management systems[113] - The independent non-executive directors have confirmed their independence according to the listing rules[104] - The company maintained an effective internal control and enterprise risk management system throughout the year, ensuring compliance with relevant laws and regulations[136]
鹰普精密(01286) - 2021 - 年度财报