Financial Performance - For the fiscal year ending December 31, 2021, the company's revenue was approximately HKD 1,181,600,000, representing an increase of about 37.8% compared to the previous year[11]. - The sales volume of sleepwear and loungewear products reached approximately 28,300,000 units, an increase of about 32.7% from 2020[11]. - The company's gross profit for 2021 was approximately HKD 310,500,000, with a gross profit margin of about 26.3%, down from 28.2% in 2020[12]. - The net profit attributable to the company's owners increased by approximately 49.9% to about HKD 158,300,000 for the fiscal year ending December 31, 2021[19]. - Other income for the year was approximately HKD 11,900,000, up from HKD 5,000,000 in the previous year, primarily due to interest and dividend income from marketable securities[15]. Expenses and Liabilities - Selling and distribution expenses were approximately HKD 54,400,000, an increase of about HKD 5,300,000, with a ratio of selling expenses to revenue at about 4.6%[16]. - Administrative expenses increased by approximately 20.0% to about HKD 64,500,000, driven by expansion efforts and preparation for new production bases in Vietnam and Honduras[17]. - Trade and other receivables amounted to approximately HKD 164,500,000, an increase of about HKD 87,000,000, mainly due to increased prepayments for raw materials and subcontractors[20]. - Trade and other payables were approximately HKD 184,800,000, an increase of about HKD 54,300,000, primarily due to increased business activity[20]. - The current liabilities as of December 31, 2021, were approximately HKD 238.3 million, up from HKD 145.5 million on December 31, 2020[24]. Assets and Ratios - As of December 31, 2021, the group's current assets were approximately HKD 593.1 million, an increase from HKD 375.8 million on December 31, 2020[24]. - The current ratio as of December 31, 2021, was approximately 2.49, compared to 2.58 on December 31, 2020[24]. - The group had cash and bank balances of approximately HKD 98.5 million as of December 31, 2021, up from HKD 85.9 million on December 31, 2020[24]. - The debt-to-equity ratio as of December 31, 2021, was approximately 6.8%, compared to zero on December 31, 2020[25]. Production and Expansion - The group is in the process of establishing a production facility in Vietnam, which is expected to double production capacity upon completion[22]. - The group is also exploring the feasibility of setting up a production base in Honduras to diversify social, economic, and political risks[22]. - The group plans to expand its product offerings to include children's clothing, enhancing its design capabilities with new hires from Spain[23]. Dividends and Shareholder Information - The board proposed a final dividend of HKD 0.059 per share, representing a dividend payout ratio of approximately 46.6% of the profit attributable to the owners[10]. - The company declared a final dividend of HKD 0.059 per share, totaling approximately HKD 73,750,000 for the year ended December 31, 2021, compared to HKD 0.036 per share in the previous year[50]. - As of December 31, 2021, the company's distributable reserves amounted to approximately HKD 188,389,000, an increase from HKD 164,334,000 in 2020[64]. Governance and Compliance - The company has complied with the relevant provisions of the Listing Rules regarding connected transactions for the year ended December 31, 2021[77]. - The company has appropriate insurance arrangements for potential legal claims against its directors and senior management[83]. - The board consists of three executive directors and three independent non-executive directors, ensuring a balance of power and authority to protect the interests of shareholders[116]. - The company has established various communication channels with shareholders and investors, encouraging attendance at annual general meetings[144]. Environmental and Social Responsibility - The company is committed to environmental sustainability through water conservation and encouraging the reuse of office supplies[41]. - The company has implemented a comprehensive ESG management system to enhance corporate responsibility and competitiveness[152]. - The company focuses on reducing energy consumption and emissions through various environmental control measures in its operations[159]. - The company is actively pursuing green development initiatives to reduce pollution and environmental risks, aligning with China's carbon neutrality goals[165]. Employee and Training Initiatives - The company employed 1,712 staff members as of December 31, 2021, with a gender distribution of 349 males and 1,363 females[170]. - Employee turnover rates were approximately 3.7% in China and 6.2% in Cambodia[170]. - The average training hours per employee were 4.1 for females and 61 for management staff, with 45.9 hours for frontline employees[173]. - The company donated approximately HKD 219,000 to charity to support underprivileged children during the year[176]. Audit and Financial Reporting - The company is responsible for preparing true and fair consolidated financial statements in accordance with Hong Kong Financial Reporting Standards and the Companies Ordinance[192]. - The audit committee oversees the financial reporting process of the company[193]. - The auditor aims to obtain reasonable assurance that the consolidated financial statements are free from material misstatement due to fraud or error[194]. - The auditor assesses the appropriateness of accounting policies adopted by the directors and the reasonableness of accounting estimates and related disclosures[198].
捷隆控股(01425) - 2021 - 年度财报