Financial Performance - In 2021, Stella International Holdings Limited reported revenue of $1,540,608 thousand, a significant increase from $1,135,880 thousand in 2020, reflecting a growth of approximately 35.6%[27]. - The net profit attributable to shareholders for 2021 was $89,694 thousand, a substantial rise from $1,685 thousand in 2020, indicating a remarkable recovery in profitability[28]. - The company's consolidated revenue increased by 35.6% to $1,540,600,000 for the year ended December 31, 2021, compared to $1,135,900,000 in 2020[43]. - The total shipment volume rose by 28.5% to 55,800,000 pairs in 2021, up from 43,400,000 pairs in 2020[43]. - Gross profit rose by 57.1% to $316,800,000, with a gross margin of 20.6% in 2021, up from 17.8% in 2020[47]. - Operating profit increased to $103,000,000 in 2021, compared to $2,100,000 in 2020, driven by improved operational leverage and production efficiency[48]. - Net profit for the year ended December 31, 2021, was $90,800,000, a significant increase from $1,100,000 in 2020[49]. - The company maintained a net cash position of $127,500,000 as of December 31, 2021, compared to $105,800,000 in 2020[49]. - Cash and cash equivalents as of December 31, 2021, were approximately $135.2 million, up from $108.7 million on December 31, 2020[52]. Production and Capacity Expansion - The company plans to continue expanding production capacity, with a new factory in Solo, Indonesia expected to significantly increase output starting in 2023[34]. - A new factory in Solo, Indonesia, is under construction, which will significantly increase production capacity starting in 2023[50]. - The company is focusing on expanding production in Southeast Asia and optimizing operational performance to enhance profit margins and shareholder returns[41]. Product Development and Market Focus - Stella International is focusing on strengthening its sports and luxury footwear business, aiming to enhance relationships with major clients in these categories[34]. - The sports leisure market presents significant growth potential, particularly in the high-end segment, with ongoing collaborations with luxury brands to develop athletic fashion footwear[34]. - The company has been expanding its product offerings to include leather accessories, leveraging its strong customer base and experience in leather products[11]. - The company aims to enhance its product offerings by focusing on high average selling price and differentiated product designs[41]. - The company is focusing on expanding its high-end fashion customer base and developing new athletic footwear lines as key growth drivers[186]. Dividends and Shareholder Returns - The board declared a final dividend of HK$0.56 per share, in addition to an interim dividend of HK$0.21 per share, totaling an annual dividend of HK$0.77[34]. - The company remains optimistic about sustainable returns for shareholders despite ongoing risks related to supply chain fluctuations and the COVID-19 pandemic[34]. - The company plans to continue focusing on long-term profitability and sustainable growth, particularly in the luxury footwear and sneaker categories[50]. Environmental, Social, and Governance (ESG) Initiatives - The board has delegated ESG governance responsibilities to the Corporate Governance Committee, which meets at least twice a year to discuss ESG matters and report to the board[64]. - The company identified 21 significant ESG issues relevant to its business, with 15 of these deemed highly important based on stakeholder feedback[66]. - The company actively engages with stakeholders, including board members, employees, investors, and customers, to understand their expectations and concerns regarding ESG issues[66]. - The company has established environmental goals to track and monitor its environmental footprint, utilizing past operational data and industry benchmarks[72]. - The company emphasizes compliance with local environmental laws and regulations, with no reported violations during the reporting period[71]. - The company aims to create long-term sustainable growth for shareholders and value for all stakeholders through a robust corporate governance framework[64]. - The company is committed to ethical and responsible business practices, focusing on improving resource efficiency and reducing environmental impact[71]. - The company aims to achieve zero growth in absolute greenhouse gas emissions by 2025, with a target to reduce greenhouse gas emission intensity by 15% from the 2021 baseline[73]. - The company plans to reduce electricity consumption intensity by 15% by 2025, using 2021 as the baseline year[73]. - The company intends to reduce water consumption intensity by 15% by 2025, based on 2021 figures[73]. - The company aims to decrease total waste generation intensity by 10% by 2025, using 2021 as the baseline year[73]. Employee Welfare and Management - The workforce increased to approximately 42,500 employees as of December 31, 2021, compared to about 37,200 employees a year prior[57]. - The company provides various employee benefits including paid annual leave, marriage leave, and maternity leave[93]. - The company has implemented a special program in 2021 to provide free vision tests and glasses for workers in need[93]. - The company emphasizes equal opportunity and non-discrimination in hiring, compensation, and promotion[91]. - The company has zero fatalities due to work-related incidents in 2020 and 2021[110]. - The company provides various support measures for employees, including free shuttle services for those with long commutes to reduce COVID-19 exposure risks[108]. Corporate Governance - The company emphasizes corporate governance by integrating business governance with compliance and risk management[136]. - The corporate governance committee consists of three members, all independent non-executive directors, ensuring strong independent judgment[138]. - The board composition includes a majority of independent non-executive directors, enhancing the board's independent element for effective decision-making[140]. - The company has established a clear division of responsibilities between the chairman and the CEO, with specific duties outlined in writing[153]. - The board has authorized the management to handle daily operations, while retaining decision-making authority on significant matters such as major investments and mergers[156]. - The company has established a framework for ongoing communication with institutional analysts and investors[175]. Risk Management and Internal Controls - The company aims to maintain effective risk management and internal control systems, reviewing their effectiveness at least annually[164]. - The internal audit team reports directly to the audit committee and the chairman, ensuring effective internal controls and compliance with financial reporting requirements[167]. - The audit committee has reviewed the financial reporting system and discussed interim and annual performance during the year[169]. - The company’s risk management and internal control systems have been comprehensively reviewed and assessed positively by third-party professionals[167]. Community Engagement and Charitable Contributions - The company made over $200,000 in charitable donations during the reporting period, in addition to physical donations[129]. - The company encourages employees to support community projects and environmental protection initiatives[129].
九兴控股(01836) - 2021 - 年度财报