Financial Performance - In 2021, China Dili Group achieved revenue of RMB 1.74 billion, representing a growth of 20.3% compared to the previous year[7]. - The net profit for 2021 was RMB 250 million, an increase of 23.8% year-on-year[7]. - The group recorded consolidated revenue of approximately RMB 1,744.6 million for the year ended December 31, 2021, representing a 20.3% increase from RMB 1,450.1 million in 2020[22]. - Commission income increased by 2.4% to RMB 959.0 million, up from RMB 936.4 million in the previous year[23]. - Rental income rose by 2.9% to RMB 444.8 million, compared to RMB 432.4 million in 2020[23]. - Agricultural product sales surged by 319.2% to RMB 340.8 million, up from RMB 81.3 million in the prior year[23]. - The company reported a profit of RMB 245,042,000 for the year ended December 31, 2021, compared to RMB 194,207,000 in 2020, representing an increase of approximately 26%[61]. - The company reported a total comprehensive income for the year of RMB 261,965,000, compared to RMB 245,042,000 in 2020, reflecting an increase of approximately 6.9%[145]. - The company reported a net unrealized gain on financial assets measured at fair value of RMB 88,940,000, compared to RMB 55,611,000 in the previous year[139]. - The company recognized a loss of RMB 91,146,000 on the revaluation of investment properties, an increase from RMB 73,481,000 in 2020[139]. Agricultural Product Sales and Logistics - The sales of agricultural products increased by 319.2% in 2021, supported by the establishment of supply chain service centers in key cities[10]. - The group is expanding its agricultural logistics parks, with the Yunnan Plateau International Agricultural Products Logistics Park under construction[9]. - A strategic cooperation agreement was signed with Fuzhou Zhengxiang Group for the planning and management of the Fuzhou Zhengxiang Straits Agricultural Products Logistics Park[9]. - The establishment of the JD-Dili Agricultural Supply Chain Service Center in Shouguang has been completed and is now operational[10]. - The group aims to create an integrated service model for agricultural product circulation, combining online trading and offline fulfillment[10]. - The Hangzhou Dili Logistics Cluster is the largest agricultural wholesale market in Hangzhou, covering an area of approximately 245,017 square meters with an annual transaction volume of about 1.6 million tons[13]. - The Shouguang market is the largest comprehensive agricultural logistics park in Asia, covering an area of approximately 1,123,925 square meters[16]. - The Shenyang market supplies over 90% of the local fruit market and 50% of the fruit supply to the three northeastern provinces and Inner Mongolia[14]. - The Guiyang market has developed into one of the largest agricultural distribution centers in Southwest and Northwest China, with an annual transaction volume of approximately 140,000 tons[15]. - The Heilongjiang logistics cluster includes four markets with a total annual transaction volume of approximately 150,000 tons[15]. Investments and Financial Position - The investment in Million Master Investment Limited amounted to RMB 950 million, with a fair value of RMB 1,068.4 million as of December 31, 2021[17]. - As of December 31, 2021, the group's current assets net value was approximately RMB 1,541.8 million, compared to a net current liability of RMB 967.3 million in 2020, resulting in a current ratio of 1.96[32]. - The total amount raised from the subscription agreement with JD.com was approximately HKD 796.7 million, aimed at future investments and general working capital[35]. - The group plans to utilize the proceeds from the rights issue for expanding market trading halls and leasing areas, with a remaining balance of HKD 74 million to be used by December 31, 2022[37]. - The leverage ratio as of December 31, 2021, was 11.26%, a slight decrease from 11.68% in 2020[41]. - The company has future capital commitments of approximately RMB 268.7 million as of December 31, 2021, compared to RMB 113.9 million in 2020[40]. - As of December 31, 2021, the group had pledged properties and equipment totaling RMB 1,406.5 million as collateral for bank loans, an increase from RMB 1,270.1 million in 2020[39]. Corporate Governance and Compliance - The company has established systems and procedures to ensure compliance with relevant laws and regulations affecting its operations, including internal controls and risk management[53]. - The board of directors consists of 3 executive directors, 3 non-executive directors, and 4 independent non-executive directors, ensuring a diverse governance structure[65]. - The company has adhered to the corporate governance code throughout the year ending December 31, 2021, with the exception of the attendance of the chairman at the annual general meeting[94]. - The independent non-executive directors confirmed their independence in accordance with the Hong Kong Stock Exchange Listing Rules[67]. - The company emphasizes the importance of effective communication with investors to enhance shareholder value and market confidence[119]. - The company has adopted a standard code for directors' securities trading, with all directors confirming compliance for the year ending December 31, 2021[95]. - The company’s governance responsibilities include reviewing compliance with laws and regulations, and monitoring training for directors and management[108]. Risk Management - The group established and maintained an effective risk management and internal control system to safeguard assets and stakeholder interests[115]. - The risk management framework includes risk identification, assessment, monitoring, and review processes, with responsibilities assigned to various levels of staff[118]. - The board and audit committee regularly review significant risks and any changes to them, ensuring the effectiveness of the risk management system[118]. - The internal audit department reviewed the effectiveness of the risk management and internal control systems during the year ended December 31, 2021[118]. Future Outlook and Strategic Initiatives - The company has outlined a positive outlook for the next fiscal year, projecting a revenue growth of 10% to 12% based on market expansion strategies[48]. - New product development initiatives are underway, with plans to launch three new product lines in the next quarter, aiming to capture a larger market share[48]. - The company is focusing on market expansion, targeting an increase in its presence in tier-2 and tier-3 cities, which is expected to contribute an additional 5% to overall revenue growth[48]. - The management team emphasized the importance of enhancing supply chain efficiency, aiming to reduce operational costs by 5% through improved logistics[48]. - The company plans to implement a new customer loyalty program, which is expected to increase repeat purchases by 15% over the next year[48]. Shareholder Information - The board of directors has approved a dividend payout of 0.15 HKD per share, reflecting a commitment to returning value to shareholders[47]. - The largest customer accounted for 2% of total sales, while the top five customers combined represented 8%[57]. - The largest supplier contributed 17% to total purchases, with the top five suppliers together accounting for 60%[57]. - Major shareholders include Dai Yongge with a beneficial interest in 5,526,147,441 shares, representing 62.12% of the company[75]. - Other significant shareholders include Super Smart Investment Limited with 2,011,810,466 shares (22.61%) and New Joy Limited with 3,514,336,975 shares (39.50%)[75]. Financial Reporting and Accounting Policies - The financial statements are prepared in accordance with International Financial Reporting Standards and comply with the Hong Kong Companies Ordinance and the Listing Rules[149]. - The group continuously reviews estimates and assumptions that have a significant impact on the financial statements, with actual results potentially differing from estimates[150]. - The group measures non-controlling interests at either fair value or the proportionate share of the identifiable net assets of the subsidiary at the time of acquisition[154]. - Goodwill is recorded as the excess of the purchase price over the fair value of identifiable net assets acquired, and is subject to annual impairment testing[157]. - The group applies the equity method for investments in associates and joint ventures, recognizing initial costs and subsequent adjustments based on the investee's net asset value changes[155].
中国地利(01387) - 2021 - 年度财报