Financial Performance - For the fiscal year 2021, Huisen Group achieved revenue of RMB 5.14 billion, representing a growth of approximately 31.9% compared to the fiscal year 2020[15]. - The net profit for the fiscal year 2021 exceeded RMB 800 million, marking an increase of about 64.2% year-over-year[15]. - Sales from new products launched in the fiscal year 2021 reached approximately RMB 950 million, accounting for 18.5% of total revenue[15]. - Revenue from the United States accounted for approximately 67.3% of total sales, making it the largest market for the company[15]. - Revenue growth from Singapore, mainland China, Malaysia, Vietnam, and Canada was approximately 34.9%, 13.8%, 33.4%, 44.7%, and 74.2% respectively[16]. - The group's revenue for the fiscal year 2021 was approximately RMB 5,139 million, representing a year-on-year increase of about 31.9% from RMB 3,896 million in 2020[30]. - Net profit increased by approximately 64.2% compared to the fiscal year 2020, primarily due to rising average selling prices and overall sales growth, which improved the overall gross margin[30]. - The total revenue for the fiscal year 2021 was RMB 5,139,157 thousand, a 31.9% increase compared to RMB 3,895,548 thousand in the fiscal year 2020[34]. - Sales in the U.S. accounted for 67.3% of total revenue in fiscal year 2021, with a year-on-year growth of approximately 32.3%[37]. - The five largest customers contributed a total revenue of RMB 4,461,130 thousand in fiscal year 2021, which is about 86.8% of total revenue, reflecting a growth of approximately 33.4% compared to the previous year[40]. Product and Market Development - ODM product sales accounted for over 82% of the group's revenue in the fiscal year 2021, up from approximately 80% in the previous year, marking four consecutive years of growth in this segment[27]. - The revenue from panel furniture increased by approximately 33.9% in the fiscal year 2021, reaching RMB 4,829,553 thousand, driven by significant demand growth in the European and American markets[32]. - The revenue from upholstered furniture was approximately RMB 155,134 thousand, representing a growth of about 19.4% in the fiscal year 2021, primarily due to increased customer demand[33]. - The company anticipates continued growth in furniture consumption driven by rising vaccination rates and economic development in various countries, particularly in developed regions like Europe, the US, Japan, and South Korea[71]. - The company plans to strengthen management and expand its international retail customer base in the fiscal year 2022, focusing on its core competitive advantages[72]. Operational Efficiency and Investments - The group ceased production of outdoor leisure furniture in the fiscal year 2021, reallocating resources to increase the efficiency of production facilities for panel and soft furniture[23]. - The group plans to continue enhancing production efficiency by upgrading machinery and equipment in existing factories while accelerating the construction of the new Longnan factory[23]. - Huisen Group plans to enhance research and development and production capabilities as part of its investment projects[17]. - The group established a strategic cooperation agreement with Jiangxi University of Science and Technology to enhance research and development in smart furniture, including the establishment of a "Smart Furniture Research Institute"[28]. - The group acquired land use rights for approximately 233,736 square meters in Longnan City for the construction of a new manufacturing plant focused on panel and soft furniture production, at a cost of RMB 20,802,600[28]. Financial Management and Liquidity - The net cash generated from operating activities was RMB 875.613 million, representing a 34.5% increase from RMB 650.890 million in 2020[52]. - As of December 31, 2021, the bank balance and cash amounted to approximately RMB 3,137 million, up from RMB 2,648 million in 2020[52]. - The company's short-term borrowings were approximately RMB 366 million as of December 31, 2021, compared to RMB 323 million in 2020[54]. - The trade receivables (net of impairment) increased to approximately RMB 1,291.17 million as of December 31, 2021, from RMB 1,186.09 million in 2020[58]. - The company's liquidity ratio was approximately 5.5 as of December 31, 2021, compared to 5.1 in 2020[54]. - The capital debt ratio was approximately 10.5% as of December 31, 2021, down from 14.6% in 2020[54]. Corporate Governance - The board does not recommend a final dividend for the fiscal year 2021, compared to a final dividend of HKD 0.079 per share (approximately RMB 0.07) for the fiscal year 2020[67]. - The board has complied with listing rules by appointing at least three independent non-executive directors, constituting at least one-third of the board[95]. - The company emphasizes the importance of corporate governance and has established various committees to oversee different aspects of governance[123]. - The company has adopted a board diversity policy that emphasizes the importance of diverse perspectives in maintaining competitive advantage[127]. - The independent non-executive directors ensure high standards of regulatory reporting and balance board power for effective independent judgment[102]. Future Outlook and Strategic Plans - The company is preparing for the fiscal year 2022 with expectations of continued growth in consumer demand for furniture due to increased disposable income and vaccination rates[17]. - Future outlook includes potential market expansion and the introduction of new products and technologies to meet consumer demands[176]. - The management team is actively involved in monitoring market trends and adjusting strategies accordingly to maintain competitive advantage[176]. - The leadership team is dedicated to fostering innovation and improving product offerings to drive future growth[176]. Use of Proceeds from Global Offering - The net proceeds from the global offering amounted to approximately HKD 1,280.69 million after deducting underwriting commissions and other expenses[197]. - As of December 31, 2021, the actual amount utilized from the net proceeds was HKD 246 million, leaving HKD 1,156 million unutilized[197]. - 45.4% of the net proceeds (approximately HKD 636 million) is allocated for establishing a new production workshop for panel furniture and soft furniture[197]. - The company plans to enhance its product design and R&D capabilities with an allocation of HKD 93 million, which is 6.6% of the net proceeds[197]. - General working capital and other corporate purposes received an allocation of HKD 140 million, representing 10.0% of the net proceeds[197].
汇森股份(02127) - 2021 - 年度财报