Financial Performance - Revenue for 2021 was $23.978 million, a decrease of 13.9% from $27.855 million in 2020[5] - The company reported a loss attributable to owners of $57.006 million, an increase of 92.6% compared to a loss of $29.601 million in 2020[5] - Total assets decreased by 26.3% to $173.132 million from $234.988 million in 2020[5] - The gross profit for the year was approximately $0.2 million, a significant improvement from a gross loss of about $0.6 million in 2020, attributed to higher margins from new product lines[32] - The total loss for the year was $57.0 million, an increase of approximately 92.6% from a loss of about $29.6 million in 2020, primarily due to financial asset impairment losses[38] - The company reported a net loss of approximately $57.0 million for the year 2021, an increase of about 92.6% compared to a loss of $29.6 million in 2020[145] Assets and Liabilities - Trade receivables fell by 27.3% to $148.303 million from $204.120 million in 2020[5] - The current ratio decreased to 0.8 from 1.1 in 2020, indicating a decline in liquidity[5] - The debt-to-equity ratio increased to 120.0% from 82.5% in 2020, reflecting higher leverage[5] - As of December 31, 2021, the total capital deficit of the group was approximately $24.3 million, compared to total equity of $34.0 million as of December 31, 2020[39] - The net current asset position decreased from approximately $15.0 million as of December 31, 2020, to a net current liability of approximately $40.5 million as of December 31, 2021[46] - The company's debt-to-equity ratio as of December 31, 2021, was 117.2%, an increase from 82.5% on December 31, 2020[58] Operational Changes - The company entered into a partnership with JD.com, a leading e-commerce platform in China, to expand trade operations[10] - The company established new trade partnerships with leading e-commerce platforms and health product manufacturers to diversify its business strategy[18] - The company focused on commodity trading during the year due to disruptions caused by the COVID-19 pandemic, with no mining or production activities conducted[169] Cost Management - Administrative expenses decreased by approximately 28.6% to about $3.0 million from $4.2 million in 2020, mainly due to reduced legal and professional fees[33] - Financing costs were approximately $12.1 million, down 28.8% from $17.0 million in 2020, due to a revised agreement with independent lenders[34] - The company has been actively negotiating with creditors to avoid immediate loan repayments and has successfully withdrawn a winding-up petition from one creditor[145] Corporate Governance - The board consists of three executive directors and two independent non-executive directors as of December 31, 2021[86] - The company has complied with the corporate governance code except for the role of the chairman and CEO being held by the same person, which deviates from the code[91] - The board is committed to maintaining appropriate corporate governance practices to protect shareholder interests[91] Risk Management - The company identified economic recession and political environment risks as medium to high risks affecting its iron ore mining and sales business[121] - The company has established its enterprise risk management framework in 2016, with the board responsible for maintaining effective internal controls[118] - The audit committee has reviewed internal control assessments and risk evaluations, confirming the effectiveness of the internal control system[126] Sustainability and Environmental Impact - The company is committed to integrating sustainable development concepts into its daily operations and continuously seeks opportunities to improve its performance and corporate strategy[169] - The total greenhouse gas emissions for 2021 were 590.75 kg, a significant decrease of 83% compared to 3,485.96 kg in 2020[189] - The company has not generated any hazardous waste during its daily operations, ensuring compliance with relevant environmental laws[184] Employee Management - The company employed 15 employees as of December 31, 2021, compared to 19 employees in 2020[66] - The employee turnover rate for those aged 31 to 50 years was 87% in 2021, significantly higher than 52% in 2020[200] - The company emphasizes equal opportunities for all employees, with a focus on a friendly and peaceful work environment[196]
恩典生命科技(02112) - 2021 - 年度财报