Financial Performance - The total revenue for the group was approximately HKD 610.4 million, a decrease of about 8.3% compared to HKD 665.7 million in the previous year[8]. - The profit attributable to the owners of the parent company was approximately HKD 18.1 million, a decrease of about 66.0% from HKD 53.2 million in the previous year[8]. - The group recorded significant growth in online sales, reflecting the ongoing implementation of e-commerce strategies in China[17]. - The automotive beauty and maintenance products division recorded revenue of approximately HKD 523.0 million, a 10.4% increase compared to HKD 473.9 million in 2020, driven by a recovery in demand in the Chinese market[19]. - The personal care products division generated revenue of approximately HKD 87.4 million, a significant decrease of 54.4% from HKD 191.8 million in 2020, primarily due to increased shipping costs and extended docking times affecting overseas sales[20]. - Gross profit decreased to approximately HKD 157.1 million, down 29.7% from HKD 223.5 million in 2020, impacted by reduced overseas sales and increased shipping costs[22]. - Net profit for the period was approximately HKD 18.0 million, a substantial decline of 71.7% from HKD 63.6 million in 2020, due to ongoing pandemic effects and rising raw material costs[26]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.0094 per share, down from HKD 0.0245 per share in the previous year[9]. - The company has adopted a dividend policy prioritizing cash distribution to shareholders, with decisions based on financial performance, operational needs, and capital requirements[88]. Operational Developments - The group plans to establish a new production facility in Thailand, expected to commence operations in the first half of 2022, to mitigate the impact of trade protectionism and improve manufacturing cost efficiency[12]. - The new production facility is expected to enhance the group's competitiveness in Asia and mitigate operational risks associated with stricter regulations in China[40]. - The new facility is scheduled to commence production in the first half of 2022[40]. Cost Management and Efficiency - The group's cost of sales was approximately HKD 453.3 million, accounting for 74.3% of revenue, an increase from 66.4% in 2020, attributed to rising raw material prices and changes in sales methods[21]. - The group aims to enhance its product competitiveness and brand image while strictly controlling costs to improve its OBM business[11]. - The company has achieved a cost reduction of J% through operational efficiencies, positively impacting the overall profit margin[50]. Corporate Governance - The board consists of four executive directors and three independent non-executive directors, ensuring high independence and effective decision-making[53]. - The company has adopted the corporate governance code and has confirmed compliance with the standards for securities trading by directors during the reporting period[48]. - The board has established three committees: Audit Committee, Remuneration Committee, and Nomination Committee, each with specific written terms of reference[63]. - The company emphasizes high standards of corporate governance, effective risk management, and transparency to shareholders[75]. Risk Management - The board is responsible for maintaining a robust risk management and internal control system to achieve long-term sustainable growth[92]. - The company has implemented measures to mitigate financial risks, including enhanced accounting controls and a comprehensive annual budget[95]. - The board has conducted an annual review of the effectiveness of the risk management and internal control systems as of December 31, 2021[100]. Environmental, Social, and Governance (ESG) Practices - The company is committed to environmental, social, and governance (ESG) practices, with the board overseeing related risks and controls[102]. - The group is focused on maintaining compliance with laws and regulations, ensuring production safety, and fulfilling tax obligations[116]. - The company has committed to minimizing the environmental impact of its business activities and maintaining green operations[123]. - The company has established an environmental management system certified by ISO 14001 for aerosol and non-aerosol product production[129]. Employee Management and Training - As of December 31, 2021, the group employed a total of 513 employees, with employee costs approximately HKD 51.2 million, an increase from HKD 48.7 million in 2020[37]. - A total of 490 employees participated in various training programs, accumulating 14,730 hours of training during the reporting period[155]. - The percentage of trained employees reached 99.4% in 2021, with 100% training completion for junior staff[175]. Community Engagement and Contributions - The company donated approximately RMB 0.8 million to support community sustainable development during the reporting period[171]. - The company provided significant contributions to epidemic prevention efforts, ensuring the supply of disinfectants during the COVID-19 pandemic[170]. - The company received a letter of appreciation from the State Council for its contributions to epidemic control in 2020[170].
保宝龙科技(01861) - 2021 - 年度财报