Financial Performance - Revenue for FY2021 reached HK$362.5 million, a 39.8% increase from HK$259.3 million in FY2020[9] - Profit for the year attributable to owners of the Company soared to HK$15.0 million, representing an increase of over 809% compared to HK$1.6 million in FY2020[9] - The Group's revenue for FY2021 exceeded pre-COVID-19 levels, with a year-on-year increase of over 50% in key markets such as China, Vietnam, and Bangladesh[15] - Net profit for FY2021 surged over 809% to approximately HKD 15 million compared to the same period in 2020[15] - The gross profit margin decreased from approximately 50.2% in FY2020 to approximately 43.6% in FY2021, attributed to a 58.4% increase in cost of sales[30] - The cost of sales rose by approximately HK$75.4 million, representing an increase of 58.4%, from approximately HK$129.1 million in FY2020 to approximately HK$204.5 million in FY2021, driven by increased sales volume and procurement prices[48] - The Group's gross profit increased by approximately HK$27.8 million or 21.4%, from approximately HK$130.2 million in FY2020 to approximately HK$158.0 million in FY2021, with the gross profit margin decreasing from approximately 50.2% to 43.6%[48] Assets and Liabilities - Total assets increased to HK$401.0 million, up from HK$361.7 million in FY2020, reflecting a growth of 10.5%[9] - The total liabilities rose to HK$151.4 million, compared to HK$125.6 million in the previous year, indicating a 20.6% increase[9] - The equity attributable to owners of the Company was HK$249.7 million, up from HK$236.1 million in FY2020, marking a growth of 5.1%[9] - As at 31 December 2021, the Group had net assets amounted to approximately HK$249.7 million, an increase from approximately HK$236.1 million as at 31 December 2020[53] - The Group's cash and bank balances decreased to approximately HK$102.1 million as at 31 December 2021 from approximately HK$114.7 million as at 31 December 2020[53] - The Group's interest-bearing bank borrowings decreased from approximately HK$21.2 million as at 31 December 2020 to approximately HK$13.6 million as at 31 December 2021[53] Market Expansion and Strategy - The Group expanded its market presence across over 40 major fashion markets globally, enhancing its sales network[12] - New sales offices were established in Turkey, Guatemala, and Mexico in the second half of 2021 to capture emerging market opportunities[18] - The Group launched its own RFID supply chain solution in 2021, receiving positive market feedback[20] - A new factory was opened in India in the second half of 2021, alongside the operational commencement of a factory in Turkey, enhancing global business expansion[19] - The Group aims to diversify its income sources and mitigate market risks through new business sites and collaborations[21] - The Group's production bases are strategically located in China, Vietnam, and Bangladesh to meet the demand for express delivery from apparel clients[19] Corporate Governance - The Company has complied with all applicable code provisions of the Code of Corporate Governance during the reporting period, except for certain deviations related to the composition of the Nomination Committee[68] - The Board is composed of six Directors, with three executive Directors and three independent non-executive Directors, ensuring a balanced composition for effective management[70] - The Company has adopted the Model Code for Securities Transactions by Directors, ensuring compliance with required standards since the Listing Date (March 12, 2020) with no incidents of non-compliance reported[91] - The Company emphasizes internal control and risk management, with the Board responsible for the effectiveness of the internal control system[99] - The Audit Committee reviews the Group's control environment and risk assessment processes, ensuring effective management of business and control risks[93] Employee and Management - As of December 31, 2021, the Company had a total of 1,050 employees, an increase from 990 employees in 2020[57] - The employee benefit expense for FY2021 was approximately HK$136.9 million, up from approximately HK$98.9 million in FY2020[57] - The management team is committed to driving the Group's growth and operational efficiency through strategic initiatives[131] - The company has a strong management team with members holding significant experience in finance and operations, including Mr. Chew Yong Hock as Sales and Marketing Director since July 2012[145] Shareholder Information - The Board recommended a final dividend of HK$0.25 per ordinary share for FY2021, subject to approval at the 2022 AGM[122] - The Company has adopted a dividend policy allowing for the declaration and distribution of dividends at the Board's discretion, subject to shareholder approval for final dividends[116] - Shareholders can requisition an Extraordinary General Meeting (EGM) if they hold at least 10% of the paid-up capital, and the meeting must be held within two months of the requisition[118] - The Company ensures timely communication with shareholders, providing information through its website and during the Annual General Meeting (AGM)[116] Audit and Financial Reporting - The consolidated financial statements provide a true and fair view of the Group's financial position as of December 31, 2021, in accordance with HKFRSs[179] - The audit included procedures designed to respond to the risks of material misstatement of the consolidated financial statements[180] - The Audit Committee reviewed the financial statements for the year ended December 31, 2021, focusing on business highlights and compliance with accounting standards and Listing Rules requirements[110] - The Group accounted for the impairment on trade receivables using an expected credit loss (ECL) approach, which involved significant judgement and subjective assumptions[182] Sustainability and Innovation - The Group has launched more eco-products made from recyclable materials to align with sustainability goals[35] - The Group's RFID products continued to be the fastest-growing segment, driven by increased retail and inventory management needs[35] - The management team is dedicated to fostering innovation and exploring new technologies to improve operational efficiency and service delivery[145]
常达控股(01433) - 2021 - 年度财报