Financial Performance - Total revenue increased by approximately 32.0% from about HKD 127.2 million in FY20 to about HKD 167.9 million in FY21, primarily due to increased sales in the book products segment in the US and Hong Kong[24]. - Net profit decreased by approximately 89.7%, from about HKD 16.0 million in FY20 to about HKD 1.6 million in FY21, attributed to rising labor and paper costs, and a shift to more competitive pricing strategies[24]. - The book products segment accounted for approximately 92.9% of total revenue, reaching about HKD 155.9 million in FY21, up from about HKD 105.7 million in FY20[24]. - Gross margin decreased from approximately 36.1% in FY20 to about 15.8% in FY21, primarily due to increased labor costs, paper costs, and a pricing strategy aimed at gaining market share[31]. - Other income fell by 35.0% from approximately HKD 0.7 million in FY20 to about HKD 0.5 million in FY21, mainly due to a reduction in government subsidies[32]. - Distribution costs rose by approximately 35.3% from about HKD 7.0 million in FY20 to approximately HKD 9.5 million in FY21, driven by increased transportation and freight costs due to higher sales volume[35]. - Administrative expenses increased by approximately 15.0% from about HKD 13.1 million in FY20 to approximately HKD 15.0 million in FY21, mainly due to higher office, maintenance, and depreciation costs[36]. - Net profit for FY21 was approximately HKD 1.6 million, a significant decrease from approximately HKD 16.0 million in FY20[41]. - Cash and bank balances decreased by approximately 36.1% from about HKD 50.8 million as of December 31, 2020, to approximately HKD 32.5 million as of December 31, 2021[47]. - Current assets decreased by approximately 4.9% to about HKD 89.8 million as of December 31, 2021, from approximately HKD 94.4 million as of December 31, 2020[48]. - Capital expenditure for FY21 was approximately HKD 8.1 million, up from HKD 4.3 million in FY20[53]. - The company did not make any significant acquisitions or disposals of subsidiaries, associates, or joint ventures in FY21[61]. - The group reported earnings per share of HKD 0.16 for the fiscal year 2021, a decrease from HKD 1.60 in 2020[75]. Employee and Workforce - The total number of employees in the group as of December 31, 2021, was 334, an increase from 326 in 2020[62]. - Employee costs for the fiscal year 2021 amounted to approximately HKD 53.9 million, compared to about HKD 24.5 million in the fiscal year 2020, reflecting a significant increase[62]. - The number of employees at the Heyuan factory as of December 31, 2021, was 322, up from 315 in 2020[63]. - Employee turnover rate for the reporting period was 24%, with male turnover at 20% and female turnover at 28%[129]. - The turnover rate for employees under 25 years old was 43%, while for those aged 30-50 it was 16%[129]. - The workforce consisted of 334 full-time employees, with a gender distribution of 44% male and 56% female[126]. - The employee training completion rate by gender is 55% male and 45% female[136]. - Average training hours per employee are 0.66 for males and 0.74 for females[136]. - The average training hours for junior employees is 0.85, for intermediate employees is 0.49, and for management is 0.87[136]. - The company recorded 9 work-related injuries during the reporting period, with no fatalities, resulting in a total of 139 lost workdays[132]. - The company has implemented safety measures and training programs, achieving ISO 45001 certification for occupational health and safety[132]. Environmental, Social, and Governance (ESG) - The company emphasizes the importance of prudent environmental and social management for sustainable economic growth[85]. - The board of directors is responsible for overseeing the company's ESG-related risks and opportunities, and has established dedicated committees for managing ESG matters across business segments[85]. - The ESG working group, composed of senior management, assists the board in executing ESG strategies and monitoring performance, reporting biannually to the board[85]. - The company has conducted a comprehensive review of its existing policies and practices in preparing the ESG report, covering operations in its factory in Heyuan, Guangdong, and its Hong Kong office[81]. - The report outlines the company's commitment to balancing profitability with environmental and social impacts, engaging with stakeholders to meet their expectations[81]. - The company has identified significant ESG issues that may impact its operations and financial performance, including those related to its offices and factories in Hong Kong and China[95]. - The company aims to continuously improve its ESG strategies and maintain close communication with stakeholders to enhance product and service quality[90]. - The ESG report is prepared in accordance with global, local, and industry standards, including the Hong Kong Stock Exchange's guidelines[83]. - The company achieved a reduction in nitrogen oxide emissions from 21,222.30 grams in 2020 to 15,390.15 grams in 2021, representing a decrease of approximately 27%[101]. - Sulfur oxide emissions decreased from 277.54 grams in 2020 to 97.02 grams in 2021, a reduction of about 65%[101]. - The total greenhouse gas emissions from vehicle fuel combustion dropped from 44.557 tons of CO2 in 2020 to 15.576 tons in 2021, a decrease of approximately 65%[102]. - Carbon emissions from purchased electricity decreased from 8,046.42 tons in 2020 to 7,457.03 tons in 2021, a reduction of approximately 7%[106]. - The total hazardous waste generated increased from 9.61 tons in 2020 to 43.16 tons in 2021, an increase of approximately 348%[111]. - The total amount of packaging materials used rose from 948.25 tons in 2020 to 1,468.72 tons in 2021, an increase of about 55%[113]. - The company aims to reduce electricity consumption by 10% over the next three years, targeting a more environmentally friendly working environment[106]. - The hazardous waste density increased from 0.00036 tons per square meter in 2020 to 0.00160 tons per square meter in 2021[111]. - Water consumption decreased from 181,834.00 cubic meters in 2020 to 166,907.40 cubic meters in 2021, achieving a reduction of approximately 8.5%[118]. - The density of water consumption per square meter improved from 6.68 cubic meters/square meter in 2020 to 6.13 cubic meters/square meter in 2021, a decrease of about 8.5%[118]. - The company aims to maintain or reduce total water consumption to a density of 6.0 cubic meters/square meter in the next reporting year[118]. Corporate Governance - The company has adhered to the corporate governance code during the fiscal year 2021, with exceptions noted regarding the appointment terms of independent non-executive directors and the dual role of the chairman and CEO[181]. - The board is committed to high standards of corporate governance to protect shareholder interests and enhance corporate value[180]. - The board has reviewed the internal control system to ensure its effectiveness and adequacy, focusing on financial, operational, and risk management controls[182]. - The company has implemented anti-corruption policies and measures to prevent bribery, extortion, fraud, and money laundering[172]. - Key performance indicators related to anti-corruption training provided to directors and employees have been established[175]. - The company has focused its community investment efforts on areas such as education, health, and environmental issues[177]. - Resources allocated to community investment initiatives have been documented, emphasizing the company's commitment to social responsibility[178]. - The board has a structured approach to monitor and approve significant transactions and conflicts of interest involving major shareholders or directors[188]. - Continuous professional development programs for directors are encouraged to ensure they remain informed about their responsibilities and regulatory changes[190]. - The company has made appropriate insurance arrangements for legal liabilities faced by its directors and senior officers[187]. - The board consists of three executive directors and three independent non-executive directors, with all directors attending at least one board meeting during the fiscal year 2021[196]. - All independent non-executive directors have confirmed their independence according to listing rules, ensuring compliance with financial reporting standards[197]. - The company encourages continuous professional development for directors, ensuring they stay updated on corporate governance practices[195]. - The board has adopted a diversity policy, reviewing its composition annually to ensure a balance of skills and perspectives[200]. - The company has implemented a policy to reimburse directors for training expenses related to corporate governance and internal controls[195]. - The board members possess diverse backgrounds in management, accounting, finance, marketing, production, and procurement, aligning with the company's business needs[199]. - The company ensures that changes in board composition do not disrupt its operations, maintaining necessary skills and integrity among members[200]. - The board's diversity policy considers various factors, including gender, age, cultural background, and professional experience[200]. - The company has appointed a new chairman for the nomination committee effective December 31, 2021, reflecting changes in board leadership[196]. - All independent non-executive directors attended the annual general meeting held on May 7, 2021, demonstrating their commitment to shareholder engagement[197]. Community Engagement and Social Responsibility - The company donated HKD 80,000 to the Hong Kong Aberdeen District Community Service Centre, which provides welfare and social services to the elderly, children, youth, and families in the South District of Hong Kong[154]. - The company has established a whistleblowing policy to encourage employees to report any suspicious fraudulent activities, ensuring protection against retaliation for good faith reports[150]. - The company strictly prohibits the use of forced labor and child labor, with no incidents reported during the reporting period[139]. - The company has not faced any lawsuits related to intellectual property infringement during the reporting period[149]. - The company provided anti-corruption training for employees during the reporting period, with no known or reported cases of corruption or money laundering[151].
竣球控股(01481) - 2021 - 年度财报