Financial Performance - The Group's revenue for the year ended December 31, 2021, was approximately HKD 961.1 million, a decrease of about 4.8% compared to HKD 1,009.1 million in 2020[13]. - The Group reported a loss of approximately HKD 4.6 million for the year, compared to a loss of about HKD 20.1 million in 2020[13]. - The basic loss per share for the year was approximately HKD 0.27, compared to HKD 0.76 in 2020[13]. - The Group's revenue for the year ended December 31, 2021, was approximately HK$961.1 million, a decrease of approximately 4.8% compared to HK$1,009.1 million in 2020[14]. - The Group reported a net loss of approximately HK$4.6 million for the year, significantly reduced from a loss of approximately HK$20.1 million in 2020, marking an improvement of approximately HK$15.5 million[14]. - The basic loss per share for the year was approximately HK0.27 cent, compared to approximately HK0.76 cent in 2020[14]. - The Group's revenue and gross profit for the year were approximately HK$961.1 million and HK$482.9 million, respectively, reflecting decreases of approximately 4.8% and 13.1% from the previous year[32]. - The gross profit for the same period was approximately HK$482.9 million, down 13.1% from HK$555.7 million in 2020[34]. - The net loss for the year was approximately HK$4.6 million, an improvement of approximately HK$15.5 million compared to a net loss of HK$20.1 million in 2020[34]. - Basic loss per share decreased to approximately HK0.27 cent from approximately HK0.76 cent in 2020[34]. Business Segments - The pharmaceutical business has established medium and long-term development plans focusing on new product R&D, new cooperation models, and expansion into new regions and channels[20]. - The fitness business is expected to benefit from the gradual control of the COVID-19 pandemic, with an anticipated increase in gym attendance as restrictions are loosened in 2022[24][25]. - The Group plans to focus resources on business recovery and reducing membership loss while attracting new and former members in the fitness sector[25]. - The Group's previous cement business was sold in December 2020, and the financial results for 2021 do not include any contributions from this segment[31]. - In 2021, Tongfang Pharmaceutical's revenue was RMB 329.6 million, a decrease of 3.0% from RMB 339.9 million in 2020[54]. - The gross profit for Tongfang Pharmaceutical was RMB 294.9 million, down 5.7% from RMB 312.6 million in 2020[54]. - Shaanxi Life Care recorded revenue of RMB66.6 million in 2021, representing a growth of 22.4% from RMB54.4 million in 2020; gross profit increased by 34.1% to RMB31.1 million from RMB23.2 million[60]. - Chongqing Kangle's revenue decreased by 48.4% to RMB145.2 million in 2021 from RMB281.2 million in 2020; gross profit also fell by 69.8% to RMB47.8 million from RMB158.3 million[68]. - SPF achieved revenue growth of 50.5% in 2021, reaching RMB132.3 million compared to RMB87.9 million in 2020; gross profit surged by 93.6% to RMB70.1 million from RMB36.2 million[72]. Operational Challenges - The decline in revenue and gross profit was primarily due to reduced demand for Chloroquine Phosphate, impacting Chongqing Kangle's performance[39]. - The fitness business segment experienced a decrease in gross profit due to the suspension of operations in Singapore and Taiwan for approximately 10 weeks and 9 weeks, respectively, due to COVID-19[39]. - Tongfang Pharmaceutical faced supply chain disruptions due to COVID-19, impacting sales but managed to adjust its strategy and focus on other major products[56]. - The decrease in revenue was primarily due to a reduction in royalty fee income of approximately HK$15.7 million from Taiwan, affected by COVID-19 pandemic[85]. - The fitness business in Singapore had approximately 19,000 active members, with a higher churn rate during the year due to the pandemic[86]. Financial Position - As of 31 December 2021, the Group maintained bank balances and cash reserves of approximately HK$174.2 million, an increase from approximately HK$165.8 million in 2020[103]. - The Group had outstanding borrowings repayable within one year of approximately HK$226.7 million as of 31 December 2021[104]. - 82.9% of the Group's outstanding borrowings were denominated in Renminbi (RMB) and 17.1% in Singapore dollars (SGD)[104]. - As of December 31, 2021, the total borrowings of the Group were HK$243,802,000, an increase from HK$196,777,000 in 2020, resulting in a gearing ratio of 9.5%, up from 7.7% in the previous year[106]. - The Group's total assets as of December 31, 2021, were HK$2,558,775,000, compared to HK$2,542,284,000 in 2020[106]. - The Group's capital commitments for the acquisition of property, plant, and equipment amounted to HK$118,572,000 in 2021, significantly higher than HK$14,589,000 in 2020[120]. - The Group's bank borrowings were secured by assets totaling HK$144,161,000 as of December 31, 2021, compared to HK$98,474,000 in 2020[116]. Employee and Governance - The Group had 1,305 employees as of December 31, 2021, an increase from 1,221 employees in 2020[122]. - The Group's financial policy aims to minimize financial risk exposure and does not engage in speculative derivative transactions[108]. - The Group closely monitors foreign exchange risks, particularly as operations are mainly in RMB, SGD, USD, and HKD[112]. - The Group's financial management strategy focuses on maintaining competitive remuneration packages to attract and retain high-caliber employees[122]. ESG Initiatives - The Group has established an ESG management framework with clearly defined responsibilities to ensure effective implementation of ESG policies[133]. - The Board is responsible for overseeing the Group's overall ESG risks and reviewing relevant progress and performance[135]. - The Executive Committee and management are tasked with developing and implementing relevant policies and measures in accordance with the ESG strategy set by the Board[135]. - The Group is committed to operating in a manner that is economically, socially, and environmentally sustainable while balancing stakeholder interests[132]. - The Group aims to bring positive impacts to society through its ESG initiatives[132]. - The Group has identified five key ESG issues as critical aspects of its Pharmaceutical and Fitness businesses[163]. - The management is committed to integrating ESG elements into daily operational strategy assessments, considering long-term stakeholder impacts[142]. - The Group's strategy includes compliance with all applicable environmental requirements and continuous improvement towards industry best practices[140]. Environmental Management - The Group aims to reduce emissions and water consumption, focusing on minimizing environmental impact during operations[171]. - The establishment of an energy management system is expected to lower energy consumption per unit product, enhancing economic benefits[164]. - The Group is committed to creating a diverse and inclusive work environment, prioritizing employee safety and well-being[171]. - Regular monitoring of environmental parameters is part of the Group's strategy to minimize environmental impact and comply with climate change policies[173]. - The Group aims to reduce gas emissions and ensure that exhaust gas emissions meet government standards, including the Emission Standard of Air Pollutants for Catering Industry and the Integrated Emission Standard of Air Pollutants[178]. - The solar energy power generation project in Beijing covers over 30,000 square feet and fulfills the daily energy consumption requirement of the plant, with surplus solar power sold to nearby plants[178]. - Tongfang Pharmaceutical has regularly conducted monitoring of exhaust gas emissions and replaced facilities to reduce emissions, including installing electrostatic fume purifiers and low-nitrogen burners[178]. - Chongqing Kangle has implemented energy conservation and emission reduction measures, including purchasing new exhaust gas treatment equipment and upgrading waste gas treatment systems to a level-three deep treatment device[180]. - SPF has achieved a 100% waste gas collection rate from isolated ventilation cages, with purified gas discharged in compliance with emission standards, verified by third-party testing conducted twice a year[180]. - The Group produced a total of 502 tonnes of chemical wastes and 2 tonnes of medical wastes during the reporting period[198]. - Non-hazardous wastes produced amounted to 230 tonnes, with the Fitness Business not contributing significantly to non-hazardous waste emissions[199].
华控康泰(01312) - 2021 - 年度财报