Financial Performance - The company recorded revenue of approximately HKD 135,100,000 for the year, representing a year-on-year decrease of 8.4% due to delays or cancellations of existing IPO projects [24]. - Profit attributable to the owners of the company was approximately HKD 8,600,000, a year-on-year decrease of about 53.0%, attributed to the absence of government subsidies and one-time relocation expenses [24]. - The company's total revenue for the year was approximately HKD 135.1 million, a decrease of about 8.4% from the previous year's revenue of HKD 147.5 million [42]. - Net profit for the year was approximately HKD 8.6 million, a decrease of about 53.0% from HKD 18.3 million in the previous year [51]. - The company's gross profit increased by 3.9% to approximately HKD 72.2 million, with a gross profit margin of 53.5%, an increase of 6.4 percentage points [52]. - The net profit margin decreased to 6.4%, down by 6.0 percentage points compared to the prior year [10]. Assets and Liabilities - Total assets decreased to HKD 210,373,000, a decline of 19.3% from HKD 260,531,000 in the previous year [18]. - Net assets fell to HKD 139,461,000, down 32.8% from HKD 207,633,000 year-on-year [18]. - Cash and cash equivalents decreased to HKD 127,565,000, a reduction of 31.6% from HKD 186,487,000 in the previous year [18]. - The current ratio decreased to 3.3, down 29.8% from 4.7 in the previous year [18]. - The asset-liability ratio increased to 0.3 from 0.05 in the previous year, attributed to an increase in lease liabilities [53]. Revenue Breakdown - Printing services generated revenue of approximately HKD 89 million, down about 7.3% from HKD 96 million in the previous year, accounting for approximately 65.9% of total revenue [32]. - Translation services revenue was approximately HKD 35.8 million, a decrease of about 8.9% from HKD 39.3 million, representing about 26.5% of total revenue [38]. - Media release services revenue was approximately HKD 10.3 million, down about 15.6% from HKD 12.2 million, contributing approximately 7.6% to total revenue [39]. Expenses - The company's service costs decreased by approximately 19.4% to HKD 62.9 million, primarily due to the acquisition of a translation service company [43]. - Sales and distribution expenses increased by approximately 7.8% to HKD 13.8 million, mainly due to the resumption of sales activities post-COVID-19 vaccination [47]. - Administrative expenses rose by approximately 12.6% to HKD 41.9 million, driven by one-time costs related to office relocation and personal protective equipment for employees and clients [48]. Dividends - The company plans to pay a final dividend of HKD 0.20 per share, considering its financial condition and performance [24]. - The board proposed a final dividend of HKD 0.20 per share for the year ended December 31, 2021, totaling HKD 51.2 million, down from HKD 76.8 million in the previous year [58]. Corporate Governance - The management team emphasized the importance of maintaining strong corporate governance to enhance shareholder value [105]. - The board of directors has established several committees to oversee financial and operational strategies, ensuring compliance with regulatory standards [108]. - The company has adopted new corporate governance codes effective from January 1, 2022, to further strengthen its governance framework [107]. - The board has adopted a diversity policy to ensure a balanced mix of skills, experience, and perspectives among its members [131]. - The roles of chairman and CEO are separated to maintain a balance of power and authority within the company [133]. Internal Controls and Compliance - The company adheres to the internal control principles based on the Committee of Sponsoring Organisations of the Treadway Commission, focusing on internal environment, risk assessment, control activities, information and communication, and internal supervision [79]. - The company has implemented a series of internal control policies aimed at ensuring efficient operations and reliable financial reporting [179]. - The company has engaged an external professional firm to perform internal audit functions and review the effectiveness of its risk management and internal control systems [180]. - The company has complied with all applicable laws and regulations in its business operations during the year [83]. Employee and Investment Information - The total employee cost for the year was approximately HKD 53.6 million, a decrease from HKD 54.7 million in the prior year, with 122 employees as of December 31, 2021 [60]. - The group held a total of approximately HKD 1.4 million in equity investments as of December 31, 2021, significantly down from HKD 22.7 million in the previous year [67]. - The group sold most of its equity investment portfolio during the year to reduce risk due to market volatility [68]. - The company plans to invest its funds in a diversified portfolio of investment products, including listed securities, to safeguard the value of its funds and achieve capital appreciation [88]. Meetings and Attendance - The company held its annual general meeting on April 23, 2021, with full attendance from all directors [127]. - All independent non-executive directors participated in board meetings, with attendance recorded at 100% for all four meetings held during the year [123]. - The Compensation Committee held two meetings in 2021 to evaluate the performance of directors and senior management, and to review their discretionary bonuses [153]. - All members of the Compensation Committee attended both meetings, with Mr. Li, Mr. Leung, and Mr. Huang each having a 100% attendance rate [155]. - The Nomination Committee held one meeting in 2021 to review the board structure, size, and diversity, and to assess the independence of non-executive directors [159]. Future Outlook - The company provided guidance for the next fiscal year, projecting revenue growth of B% and an expected EBITDA margin of C% [100]. - New product launches are anticipated to contribute an additional D million in revenue, with a focus on innovative technology solutions [100]. - The company is expanding its market presence in E regions, aiming for a market share increase of F% by the end of the next fiscal year [100]. - Recent acquisitions are expected to enhance operational capabilities and are projected to add G million in annual revenue [100]. - The company has invested H million in R&D for new technologies, aiming to improve product efficiency and customer satisfaction [100].
REF HOLDINGS(01631) - 2021 - 年度财报