Economic Performance - The global GDP was estimated to increase by 5.9% in 2021, compared to a decrease of 3.1% in 2020, indicating a strong economic recovery[11] - The GDP of advanced economies was estimated to increase by 5.0% and emerging markets by 6.5% in 2021, with the U.S. and China experiencing GDP growth of 5.7% and 8.1% respectively[18] - The IMF revised the projected global GDP growth for 2022 down by 0.5 percentage points to 4.4%, compared to an estimated 5.9% growth in 2021[126] - China's GDP growth is projected to slow from 8.1% in 2021 to 5.5% in 2022 due to pandemic-related disruptions and declining real estate investment[126] Company Performance - The overall Group's revenue increased by approximately 37.2% in 2021, reaching a historical high[22] - The company observed a strong rebound in market demands for consumer goods, particularly in sportswear and health products, driven by increased health consciousness among the public[11] - The company’s performance in the sportswear and fabric business segments has shown continuous growth, supported by the rising consumer demand[11] - Sales revenue of the sportswear and apparel fabric materials segment rose to approximately HK$2,438.9 million, representing a year-on-year growth of approximately 43.8%[22] - The elastic webbing segment recorded a year-on-year growth of approximately 44.2% in 2021[22] - For the year ended December 31, 2021, revenue amounted to approximately HK$4,792.7 million, representing an increase of approximately HK$1,298.4 million, or approximately 37.2%, from approximately HK$3,494.3 million for the year ended December 31, 2020[41] - Revenue from sales of elastic fabric amounted to approximately HK$3,622.7 million, representing an increase of approximately HK$961.8 million, or approximately 36.1%, compared to the previous year[46] - Sales revenue from the sportswear and apparel segment increased from approximately HK$1,696.0 million for the year ended December 31, 2020, to approximately HK$2,438.9 million for the year ended December 31, 2021, representing a year-on-year increase of approximately 43.8%[46] - Revenue from lingerie fabric materials increased from approximately HK$965.0 million for the year ended December 31, 2020, to approximately HK$1,183.8 million for the year ended December 31, 2021, representing a year-on-year increase of approximately 22.7%[47] - The Group recorded a net profit of approximately HK$401.3 million for the year ended 31 December 2021, representing an increase of approximately 61.0% compared to approximately HK$249.2 million for the year ended 31 December 2020[66] - The net profit margin for the year ended 31 December 2021 was approximately 8.4%, an increase of approximately 1.3 percentage points compared to the previous year[66] Cost and Expenses - The company faced cost pressures in 2021 due to nearly doubling fossil fuel prices and rising costs of oil by-products and chemical raw materials[36] - The overall production costs increased due to inflation and rising staff costs across different manufacturing locations[36] - The Group's cost of sales for the year ended 31 December 2021 amounted to approximately HK$3,680.8 million, representing an increase of approximately HK$1,029.9 million, or approximately 38.9%, compared to the year ended 31 December 2020[56] - The increase in cost of sales was primarily due to the increase in overall sales volume and rising prices of most commodities, including main raw materials[56] - The Group was able to partly digest increased costs through better economies of scale and cooperative discussions with customers on product price adjustments[56] Cash Flow and Financial Position - Net cash generated from operating activities decreased from approximately HK$754.2 million in 2020 to approximately HK$522.7 million in 2021[100] - Net cash used in investing activities increased to approximately HK$414.3 million in 2021 from approximately HK$212.7 million in 2020[100] - Net cash used in financing activities rose to approximately HK$363.9 million in 2021, compared to approximately HK$47.8 million in 2020[100] - The Group's net debt position was approximately HK$976.1 million as of December 31, 2021, down from approximately HK$1,107.4 million as of December 31, 2020[102] - The net gearing ratio improved to 28.9% as of December 31, 2021, from 36.7% as of December 31, 2020[102] Dividends and Shareholder Returns - The Board intends to maintain a long-term dividend payout ratio of not less than 20% of the Group's distributable profit for the year[123] - A final dividend of HK11.8 cents per ordinary share was declared for the year ended December 31, 2021, compared to HK7.4 cents for the previous year[123] - An interim dividend of HK7.5 cents per share was paid on November 30, 2021[123] - As of December 31, 2021, the company's distributable reserves amounted to approximately HK$713.7 million, with a proposed final dividend of approximately HK$122.7 million for the year[156] Operational Efficiency - The manufacturing site in Vietnam achieved a year-on-year revenue growth of approximately 26.9% in 2021 despite the Pandemic[32] - Operations in Sri Lanka observed a year-on-year revenue growth of approximately 98.5% in 2021, reflecting improved efficiencies and economies of scale[33] - Selling and distribution expenses represented approximately 4.2% of total revenue for the year ended 31 December 2021, down from 4.5% in 2020, reflecting economies of scale[79] - Administrative expenses accounted for approximately 7.0% of total revenue in 2021, a decrease from 7.3% in 2020, also due to economies of scale[80] - Research and development costs were approximately 2.1% of total revenue for the year ended 31 December 2021, down from 2.3% in 2020[81] Employee and Management - The Group employed a total of 8,957 full-time employees as of December 31, 2021, an increase from 7,825 in the previous year due to overseas expansion[117] - The Group has implemented a competitive remuneration package and performance appraisal system to reward and recognize employees[151] - The Company has implemented an additional performance incentive plan, allowing for monthly bonuses of up to 10% of basic salary for employees meeting key performance indicators[174] Environmental and Social Responsibility - The Group's environmental policies include compliance with applicable laws and regulations, and it has taken steps to minimize adverse environmental effects[143] - The Group's sewage treatment plants ensure that processed sewage meets chemical standards before discharge[143] - The Group's operating scale has expanded, leading to proportional increases in resource use, gas emissions, and waste disposal, all of which were under control during the review year[146] - The group made charitable and other donations amounting to approximately HK$2,762,000 during the year ended December 31, 2021[160] Risk Management and Future Outlook - The Group emphasizes the importance of risk management to navigate the changing market landscape due to geopolitical tensions and COVID-19[129] - The overall economic outlook remains positive despite challenges, with the Group confident in maintaining its leading position in the lingerie material market[129] - The Group plans to explore capacity expansion both domestically and overseas to meet growing customer demands[130] - The Group will implement relevant measures to address factors affecting profitability as it expands its operations[130]
超盈国际控股(02111) - 2021 - 年度财报