Financial Performance - The Group's revenue increased by approximately RMB 107.4 million, from RMB 246.5 million in 2020 to RMB 353.9 million in 2021, attributed to the recovery of the Chinese economy post-COVID-19 and the expansion of a new factory in Chongqing City[15]. - The Group's profit for the year decreased by approximately 12.7% to approximately RMB 10.1 million, compared to RMB 11.5 million in 2020[16]. - The impact of COVID-19 in 2020 led to a significant drop in revenue and profit, but the situation improved in 2021 as restrictions eased[14]. - The Group's performance reflects the broader recovery trends in the Chinese economy following the control of the COVID-19 outbreak[15]. - The Group's revenue for the year ended 31 December 2021 was approximately RMB353.9 million, an increase of 43.6% from RMB246.5 million in 2020[28]. - Gross profit for the Group was approximately RMB54.0 million, representing an increase of approximately 7.1% compared to RMB50.4 million in 2020[36]. - The overall gross profit margin decreased from approximately 20.4% in 2020 to approximately 15.3% for the Reporting Period[36]. - Profit for the year decreased by approximately 12.7% from approximately RMB11.5 million in 2020 to approximately RMB10.1 million for the Reporting Period[56]. Revenue Sources - Revenue from PCBAs for telecommunication devices increased by approximately 38.5% to approximately RMB183.5 million for the Reporting Period, driven by new orders from a new factory in Chongqing[30]. - Revenue from PCBAs for IoT products rose by approximately 47.4% to approximately RMB142.3 million, attributed to increased orders from a main customer in line with the rapid development of the IoT industry[32]. - The Group is actively diversifying its customer and product base to broaden revenue sources and mitigate business risks amid the ongoing impact of COVID-19[20]. Operational Challenges - The operating environment remained challenging due to logistics and supply chain bottlenecks, energy crises, and raw material shortages affecting the manufacturing sector[14]. - The Group continues to face challenges related to the delivery of goods in a cost-effective and timely manner due to ongoing supply chain issues[14]. - The Group's operational strategies include enhancing logistics and supply chain management to mitigate ongoing challenges[14]. Cost and Expenses - Selling and distribution expenses amounted to approximately RMB 3.4 million, an increase of approximately 35.9% compared to RMB 2.5 million in 2020[46]. - Administrative expenses increased by approximately 16.8% to approximately RMB42.3 million for the Reporting Period, compared to RMB36.2 million in 2020[51]. - The increase in gross profit for telecommunication devices was primarily due to lower sales prices offered to major customers and increased costs from labor shortages[41]. Assets and Liabilities - Net current assets as of 31 December 2021 were approximately RMB138.2 million, down from approximately RMB153.9 million in 2020[59]. - The current ratio decreased from approximately 3.1 as of 31 December 2020 to 3.0 as of 31 December 2021[59]. - Bank and other borrowings amounted to approximately RMB12.6 million as of 31 December 2021, down from approximately RMB13.9 million in 2020[60]. - The gearing ratio increased to approximately 8.5% as of 31 December 2021, compared to 7.0% as of 31 December 2020[62]. Governance and Management - The company emphasizes high corporate governance standards to enhance performance, transparency, and accountability[141]. - The Company has adopted and complied with the Corporate Governance Code, except for the deviation where the roles of chairman and chief executive officer are not separated, with Mr. Li holding both positions[142]. - The Board comprises five executive Directors, one non-executive Director, and three independent non-executive Directors, with independent Directors representing one third of the Board[156]. - The Company assesses the independence of each independent non-executive Director annually, confirming their independence according to Rule 3.13 of the Listing Rules[154]. - The Company ensures that all Board appointments are based on meritocracy and the contributions candidates can bring[171]. Strategic Initiatives - The Group plans to continue investing in in-house capabilities and keeping abreast of technological advancements to secure more business opportunities[20]. - The company emphasizes the importance of strategic planning and operational management in its growth strategy[121]. - The leadership team includes members with advanced degrees in engineering, science, and business administration[120]. Human Resources - Total employee remuneration for the reporting period was approximately RMB88.8 million, up from RMB62.8 million in 2020, with 891 employees as of December 31, 2021[65]. - The company has a strong emphasis on human resources management to support its growth and operational needs[108]. Committees and Meetings - The Company has established three committees: Audit, Remuneration, and Nomination, to oversee various aspects of its affairs[184]. - The Audit Committee confirmed that the annual report is complete and accurate, complying with the Listing Rules, with no disagreements regarding the selection and appointment of external auditors[194]. - The Remuneration Committee held one meeting during the Reporting Period to review and recommend remuneration policies for Directors and senior management for the years ended December 31, 2020, and December 31, 2021[196].
信恳智能(01967) - 2021 - 年度财报