Financial Performance - Total revenue for the year ended December 31, 2021, decreased to approximately RMB 20.8 million, a decline of about 32.7% compared to the previous year[5] - The net loss attributable to shareholders for the year was approximately RMB 40.6 million, compared to RMB 45.3 million for the previous year[5] - Revenue from the duty-free business increased by approximately 38.4% to about RMB 18.1 million, up from RMB 13.1 million in the previous year[7] - The hotel business generated revenue of RMB 1.04 million, with a gross margin of 5.0%, down from RMB 4.52 million the previous year[10] - The company will not declare a final dividend for the year ended December 31, 2021, due to the net loss recorded[5] - Sales and distribution expenses decreased by approximately RMB 5.2 million for the year ended December 31, 2021, due to reduced marketing expenses related to outbound travel products[13] - Other income and net gains decreased, primarily due to a foreign exchange loss of approximately RMB 4.1 million, attributed to the suspension of outbound travel activities[14] - Administrative and other expenses increased by approximately RMB 7.2 million, mainly due to losses from lease modifications in 2021[15] Business Strategy and Development - The company plans to continue investing in the duty-free business and expand its product design and manufacturing capabilities[9] - The company has launched its own brand "HDL Mask" in both domestic and Japanese markets starting in 2021[7] - The company plans to utilize net proceeds from its IPO for various purposes, including acquiring hotel assets in Kyoto, Japan, with an expected cost of RMB 17.6 million[22] - The company plans to expand its market presence in Southeast Asia, targeting a 30% increase in market share over the next two years[49] - New product launches are expected to contribute an additional $50 million in revenue in the upcoming fiscal year[45] - The company is investing $20 million in research and development for new technologies aimed at enhancing customer experience[46] - A strategic acquisition is in progress, which is projected to increase the company's annual revenue by 10%[48] - The management team has set a performance guidance of 20% revenue growth for the next fiscal year[44] - The company has successfully reduced operational costs by 12% through efficiency improvements[49] - User retention rates improved to 85%, up from 75% in the previous year[38] - The company is exploring partnerships with local businesses to enhance service offerings and drive growth[49] Corporate Governance - The company has maintained strict corporate governance principles, adhering to all applicable provisions of the corporate governance code as per the listing rules[54] - The board consists of four executive directors and four independent non-executive directors, ensuring a diverse range of industry and professional expertise[60] - The chairman and CEO roles are distinct, with the chairman leading the board and ensuring effective governance practices[61] - All independent non-executive directors have confirmed their independence according to the relevant guidelines, ensuring compliance with listing rules[62] - The company has adopted a standard code for securities trading by directors and relevant employees, with no reported violations[56] - Each director is required to retire and seek re-election at least once every three years, promoting accountability[64] - The company has a structured approach to onboarding new directors, providing them with necessary information and guidelines[65] - The board regularly reviews the contributions of its members to ensure adequate time commitment to their responsibilities[58] - The company has a dedicated sales manager overseeing online sales and marketing strategies, indicating a focus on digital expansion[51] - The company has a secretary with over 20 years of experience in compliance and corporate governance, enhancing its regulatory oversight[52] - The board of directors is collectively responsible for guiding and supervising the company's affairs, ensuring effective internal controls and risk management systems[66] - The audit committee, composed of three independent non-executive directors, reviews financial information and internal control systems, ensuring compliance with accounting principles[71] - The remuneration committee has reviewed the compensation packages for directors and senior management for the year ending December 31, 2021[73] - The nomination committee has held two meetings to assess the independence of non-executive directors and review the board diversity policy[74] - The company has adopted a board diversity policy, emphasizing the importance of diversity in maintaining competitive advantage[76] - The nomination committee is committed to reviewing the board's structure and composition annually to ensure a balanced and diverse board[76] - All directors are encouraged to participate in ongoing professional development to enhance their knowledge and skills[69] - The company provides training and updates on regulatory developments to ensure compliance and strengthen governance awareness among directors[69] - The audit committee has reviewed the group's interim and annual performance for the year ending December 31, 2021[71] - The board retains decision-making authority on significant matters, including policies, strategies, and major transactions[67] - The company has adopted a dividend policy aimed at balancing shareholder expectations and prudent capital management, with no preset dividend payout ratio[83] - The board of directors has committed to holding at least four meetings annually, approximately once every quarter, to discuss financial performance, business operations, and strategic development[87] - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[92] - The risk management and internal control systems are designed to manage, rather than eliminate, risks that could impede business objectives[94] - The company has established a nomination policy to ensure a balanced skill set, experience, and diverse perspectives within the board[81] - The board has a regular attendance record, with all executive directors attending 100% of board meetings held during the year[87] - The company emphasizes the importance of independent non-executive directors in maintaining board independence and effectiveness[81] - The audit committee assists the board in overseeing the effectiveness of risk management and internal control systems[93] - The company has no historical dividend distribution guarantees for future payouts, as any proposed dividends must be approved by shareholders[83] - The board is committed to maintaining ongoing dialogue with shareholders, particularly during annual general meetings[91] - The company has engaged an external professional firm to conduct an annual review of its risk management and internal control systems, with no significant internal control deficiencies found[97] - The external auditor's fee for the audit services provided to the company for the year ending December 31, 2021, was RMB 826,000[104] - The board of directors is responsible for the preparation of the financial statements for the year ending December 31, 2021[98] - The company has implemented a disclosure policy to ensure the proper handling of confidential information and compliance with market regulations[102] - The company has established a shareholder communication policy to address shareholder concerns effectively[112] - The board and audit committee believe that the risk management and internal control systems are effective and adequate[97] - The company has not made any changes to its memorandum and articles of association since its listing[111] - The company has a sufficient number of qualified personnel in its accounting and financial reporting team, with adequate training provided[97] - The company has adopted a dividend policy in accordance with corporate governance codes[113] Environmental, Social, and Governance (ESG) Initiatives - The company is committed to sustainable development and corporate social responsibility, focusing on community and stakeholder engagement[115] - The company has established a core governance framework to align environmental, social, and governance (ESG) initiatives with strategic growth, emphasizing sustainable development commitments[118] - The ESG working group, comprising core members from various departments, is responsible for monitoring and evaluating the company's ESG performance and compliance with relevant laws and regulations[121] - The ESG report covers significant aspects of the company's operations in China and Japan, including its offices in Hangzhou, Wenzhou, Lian, Shanghai, and hotels in Shizuoka and Tokyo[122] - The company actively engages with stakeholders, including employees, investors, and suppliers, to gather feedback and enhance stakeholder participation in its long-term prosperity[128] - The company is committed to environmental protection and has implemented policies for energy conservation, pollution prevention, and waste reduction, with a focus on carbon reduction and water conservation[132] - No significant violations of air and greenhouse gas emissions regulations were reported during the year, indicating compliance with relevant environmental laws[133] - The company plans to set quantitative targets for environmental performance in the next fiscal year, considering the impact of the COVID-19 pandemic on data stability[132] - The ESG report is prepared in accordance with the Hong Kong Stock Exchange's guidelines, ensuring consistency and transparency in reporting[123] - The company recognizes the importance of good ESG performance for sustainable business development and community well-being[129] - The ESG working group regularly reports to the board to assess and identify ESG risks and opportunities, ensuring effective internal control mechanisms[121] - The total greenhouse gas emissions decreased by 80% from 959 tons CO2e in 2020 to 191 tons CO2e in 2021[140] - Direct greenhouse gas emissions from fuel consumption dropped by 91%, from 342 tons CO2e in 2020 to 30 tons CO2e in 2021[140] - Indirect greenhouse gas emissions from electricity purchases decreased by 48%, from 302 tons CO2e in 2020 to 158 tons CO2e in 2021[140] - Total energy consumption reduced by 79%, from 2,090 MWh in 2020 to 431 MWh in 2021[157] - Direct energy consumption fell by 92%, from 1,507 MWh in 2020 to 123 MWh in 2021[157] - Water usage decreased by 88%, from 21,046 cubic meters in 2020 to 2,583 cubic meters in 2021[164] - The total amount of non-hazardous waste generated was 1,015 kg in 2021, with a waste intensity of 13 kg per employee[149] - The company plans to implement energy-saving measures, including installing light sensors and replacing incandescent bulbs with LED lights[155] - The company encourages employees to use public transport and conduct meetings via phone to reduce fuel consumption[138] - The company has upgraded its data collection system to improve waste disposal reporting in line with environmental guidelines[148] Human Resources and Employee Welfare - The company had a total of 77 employees as of December 31, 2021, down from 115 in 2020, representing a decrease of approximately 33%[176] - The employee turnover rate for the year was approximately 43%, with a notable 87% turnover rate for employees aged over 50[176] - The company has implemented various measures to improve indoor air quality, including regular cleaning of air devices and ensuring ventilation systems are effective[168] - The company recognizes the potential impacts of climate change on its operations and has established risk management policies to identify and mitigate climate-related risks[169] - The company is monitoring changes in regulations and market trends related to climate change to avoid increased costs and reputational risks[172] - The company has set goals to gradually reduce energy consumption and greenhouse gas emissions in line with global carbon neutrality objectives[172] - The company employs a non-discriminatory and diverse hiring policy, ensuring equal opportunities for all employees regardless of gender, ethnicity, or other factors[178] - The company provides a comprehensive benefits package, including paid leave and performance-based bonuses, to motivate employees[179] - The company emphasizes the importance of employee well-being by organizing activities to promote work-life balance and strengthen family connections[180] - The group achieved a total employee training rate of 74%, with a total training duration of 1,131 hours in the fiscal year[185] - Male employees accounted for 47% of the trained workforce, with an average training duration of 14.41 hours, while female employees represented 53% with an average of 14.95 hours[185] - Senior management training participation was 9%, with an average training duration of 13 hours, while general employees had a participation rate of 78% and an average of 15.24 hours[185] - The group has not reported any work-related injuries or fatalities in the past three years, maintaining a zero-loss day record due to work injuries[182] - The group collaborates with 126 suppliers, with 85 located in China and 41 in Japan, prioritizing local suppliers to reduce carbon emissions[189] - The group has established compliance procedures to ensure adherence to applicable laws, including the Japanese Food Sanitation Act, with no significant violations reported in the fiscal year[190] - The group emphasizes the importance of quality service and products, having received multiple awards for excellence in service over the past years[192] - The group has implemented a comprehensive occupational health and safety mechanism across all subsidiaries, ensuring regular training and safety drills[182] - The group has a robust employee performance evaluation system that influences compensation and position adjustments based on annual assessments[183] - The group has a zero-tolerance policy for child labor and forced labor, with no reported violations in the fiscal year[186] - The company has not received any complaints regarding its products and services during the year[194] - The "Tuyi" brand has established itself as a mature brand in the outbound tourism product and service sector over ten years of operation[194] - The company adheres to various laws and regulations related to advertising and consumer rights protection, ensuring the authenticity of content[196] - There were no recorded training sessions for anti-corruption due to health and safety concerns during the COVID-19 pandemic[197] - The company is not aware of any significant issues related to non-compliance with bribery, extortion, fraud, or money laundering laws during the year[198]
途屹控股(01701) - 2021 - 年度财报