Financial Performance - The audited revenue for the year ended December 31, 2021, was HKD 124,920,000, an increase of 6.63% compared to the unaudited revenue of HKD 117,155,000[6]. - The gross profit for the audited year was HKD 49,276,000, reflecting a significant increase of 19.22% from the unaudited gross profit of HKD 41,326,000[6]. - The net loss attributable to the owners of the company was HKD 258,312,000, which is a slight increase of 1.49% compared to the unaudited loss of HKD 256,398,000[7]. - The basic and diluted loss per share for the audited results was HKD 11.34, compared to HKD 11.73 in the unaudited results, indicating a decrease of 3.33%[8]. - The total revenue for the year ended December 31, 2021, was HKD 124.92 million, an increase from HKD 118.56 million in 2020, but a decline from HKD 154.35 million in 2019[28]. - The gross profit for 2021 was HKD 49.28 million, significantly higher than HKD 27.52 million in 2020, but lower than HKD 61.49 million in 2019[28]. - The net loss for the year was HKD 280.91 million, an improvement from a loss of HKD 623.92 million in 2020[28]. - The total comprehensive loss for the year was HKD 273,477,000, a decrease from HKD 363,219,000 in 2020, reflecting a 24.7% improvement[192]. - The total comprehensive income for the year ended December 31, 2021, was a loss of HKD 280,911,000, compared to a loss of HKD 623,918,000 in 2020, showing an improvement in overall financial performance[196]. Assets and Liabilities - Total assets as of December 31, 2021, were HKD 573,206,000, down from HKD 610,490,000 in the unaudited report, representing a decrease of 6.11%[12]. - The total liabilities were HKD 430,442,000, which is a decrease of 5.91% from the unaudited total liabilities of HKD 457,486,000[12]. - Total assets decreased to HKD 573,206,000 in 2021 from HKD 747,470,000 in 2020, indicating a decline of 23.3%[193]. - Current liabilities decreased to HKD 430,442,000 in 2021 from HKD 526,923,000 in 2020, a reduction of 18.3%[193]. - Total equity decreased from HKD 107,016,000 to HKD 100,228,000, a decline of HKD 6,788,000[13]. - The company's total reserves decreased by HKD 4,333,000, from HKD 1,774,605,000 to HKD 1,770,272,000[13]. - The accumulated losses increased by HKD 22,058,000, from HKD (1,989,166,000) to HKD (2,011,224,000)[13]. - The debt ratio (total liabilities to total assets) as of December 31, 2021, was approximately 82.5%, an increase from 77.5% in 2020[57]. Income and Expenses - The company reported a significant increase in other income, with audited figures showing HKD 21,827,000 compared to HKD 20,493,000 unaudited, an increase of 6.50%[6]. - The company experienced a decrease in administrative expenses, with audited expenses at HKD 211,348,000 compared to HKD 201,704,000 unaudited, an increase of 4.67%[6]. - Other income for 2021 was HKD 21,827,000, up from HKD 13,520,000 in 2020, representing a growth of 61.5%[191]. - The company recognized a financial asset impairment loss of HKD 61,257,000 in 2021, compared to HKD 26,332,000 in 2020, indicating increased financial challenges[191]. Business Strategy and Market Focus - The company is focusing on expanding its ecological tourism business, which is part of its diversified development strategy[30]. - The company is actively involved in the development of new products and technologies within its operational sectors[72]. - The company aims to achieve a sales target of HKD 100 million by December 2022 through the expansion of its online flagship store for forest foods[50]. - The company is focusing on diversifying its business strategy to address future challenges and competition, particularly in the ecological tourism and natural health food sectors[49]. - The company is committed to building a responsible and sustainable development ecosystem for public welfare lotteries in China[52]. Corporate Governance and Management - The board of directors consists of seven members, including four executive directors and three independent non-executive directors, overseeing the group's strategic development and financial performance[144]. - The company emphasizes strong corporate governance as a key element in enhancing stakeholder confidence and improving group performance[142]. - The audit committee is composed of three independent non-executive directors, ensuring a balance of expertise in business, accounting, and financial management[150]. - The independent non-executive directors are required to retire and seek reappointment at least every three years[149]. - The company has adopted a nomination policy to ensure qualified candidates are proposed for board membership[155]. Risks and Compliance - The company faces risks if the control agreements are deemed non-compliant with Chinese laws, which could adversely affect its business and financial performance[130]. - The company is closely monitoring market risks associated with the ongoing pandemic and geopolitical tensions, aiming to minimize their impact on business operations[49]. - The independent auditor expressed a qualified opinion due to insufficient audit evidence regarding the business rationale and commercial substance of certain loan transactions[173]. - The company has taken measures to mitigate risks associated with its control agreements, ensuring compliance with Chinese laws and regulations[134]. Shareholder Information - Major shareholder Liu Ting held 1,100,655,686 shares, representing 35.64% of the issued share capital[104]. - The top five customers accounted for approximately 84% of the group's revenue, with the largest customer contributing about 35%[80]. - The top five suppliers represented about 50% of the group's procurement, with the largest supplier accounting for approximately 18%[81]. - The company completed a rights issue on June 10, 2021, issuing 2,058,961,466 shares at a subscription price of HKD 0.10 per share, raising approximately HKD 2.2075 billion before expenses[110]. Operational Developments - The company has established strategic cooperation agreements with Jinlv Group and China Communications Construction Group to leverage strengths in project planning and management[42]. - The group secured a procurement project for 3,000 terminals for Guangdong welfare lottery, with an additional procurement project worth approximately RMB 18 million in March 2022[38]. - The group has developed a comprehensive smart retail solution for the lottery industry, incorporating smart terminals, smart store management, and big data services[41].
中国生态旅游(01371) - 2021 Q4 - 年度财报