Financial Performance - Revenue for the year ended December 31, 2021, was $2,341,432 thousand, representing a 17.9% increase from $1,985,332 thousand in 2020[35] - Gross profit for 2021 was $447,610 thousand, up from $385,866 thousand in 2020, resulting in a gross margin of 19.1%[35] - Net profit for the year was $163,291 thousand, a significant increase of 51.1% compared to $108,085 thousand in 2020, leading to a net profit margin of 7.0%[35] - The company's revenue for the year ended December 31, 2021, increased significantly to $2,341 million, up from $1,985 million in 2020, representing a growth of approximately 18%[44] - The net profit for the year ended December 31, 2021, was $163 million, a substantial increase of 51% compared to $108 million in 2020, resulting in a net profit margin of 7.0%[44] - The gross profit margin remained stable at 19.1% for 2021, compared to 19.4% in 2020[44] - The company maintained a positive operating cash flow of $190 million for the year, compared to $324 million in 2020[58] - The company reported a distributable reserve of approximately $598 million as of December 31, 2021, compared to $605 million in 2020, indicating a decrease of about 1.16%[99] Acquisitions and Investments - The company acquired a fabric factory in Vietnam, marking a significant milestone in its vertical integration strategy[38] - The company completed the acquisition of New Technology Knitting in June 2021 for approximately $10.8 million, enhancing its technical support for performance knitwear[44] - In September 2021, the company acquired 100% of a fabric factory in Vietnam for $30.8 million, marking a significant milestone in its vertical integration strategy[46] - The company has established new production facilities in Vietnam and Bangladesh, with an investment of $686 million and $876 million respectively for leisure and sportswear, and denim and intimate apparel[62] - The company has completed the acquisition of a 71.9% stake in Fashion Fit for approximately $10.8 million, focusing on the development and production of flat-knit shoe upper products[63] - The acquisition allows Crystal Textiles to leverage New Technology Knitting's knitting technology to enhance its performance knitwear business and product innovation[123] Capital Expenditures - Capital expenditures for the year totaled $90 million, primarily supporting expansion projects in Vietnam and Cambodia, with total capital investments reaching $132 million compared to $54 million in 2020[46] - Capital expenditures for 2021 were $90 million, up from $54 million in 2020, indicating a focus on expanding production capacity[58] - The company utilized $259 million for capital expenditures related to capacity expansion since its IPO[61] - Capital investments for the upcoming year are expected to exceed those of 2021, reflecting the company's commitment to expanding its multi-country manufacturing platform[70] Corporate Governance - The board welcomed two new directors in 2021, enhancing the diversity and effectiveness of the board[40] - The board consists of 11 members, including 6 executive directors, 1 non-executive director, and 4 independent non-executive directors[72] - The company has a strong governance structure with independent non-executive directors serving on various committees, including audit, remuneration, and corporate development[86] - The board includes members with diverse expertise in finance, accounting, and corporate governance, enhancing the company's strategic decision-making capabilities[84] - The company emphasizes the importance of strong leadership and governance in driving its business objectives and long-term growth[86] Sustainability and Environmental Initiatives - The company aims to achieve net-zero emissions by 2050 and has set a mid-term target to reduce total greenhouse gas emissions by 35% by 2030[38] - The company has implemented several environmental policies to regulate its performance and comply with relevant laws and regulations[93] - The group adhered to the "comply or explain" provisions of the Environmental, Social and Governance (ESG) reporting guidelines throughout 2021[141] Employee and Diversity Initiatives - Employee costs accounted for 24.8% of revenue in the fiscal year ending December 31, 2021, a slight decrease from 25.0% in the previous year[69] - As of December 31, 2021, the company employed approximately 77,000 people, with 30.8% being male and 69.2% female, indicating a strong gender diversity in the workforce[152] - The board of directors includes one female member, achieving a gender diversity ratio of 7.69% in the board and senior management[152] - The employee gender diversity by region shows that Vietnam has 71% female employees, while China has 62% and Cambodia has 81%[153] - The company emphasizes maintaining gender diversity in its succession planning to ensure a pool of potential successors[152] Risk Management - The company faced significant risks in cybersecurity, with a noted decrease in cyber attacks compared to 2020, and no major damages reported[164] - The Audit Committee emphasized the importance of human resource risks, particularly in succession planning for senior management positions, and initiated a tailored succession plan[166] - Related party transactions were monitored to ensure compliance with board-approved limits, with no breaches reported for 2021[171] Board Committees and Meetings - The company has established four committees: audit committee, remuneration committee, nomination committee, and corporate development committee, to assist in fulfilling its responsibilities[157] - The audit committee held five meetings during the year, with all members attending virtually due to the impact of COVID-19[158] - The Compensation Committee held two meetings in 2021, with full attendance from all members[173] - The Nomination Committee was formed to review board composition, diversity, succession, and efficiency, holding two meetings in 2021 with full attendance[178] - The Corporate Development Committee, consisting of nine members, held one meeting in 2021 with full attendance[184] Related Party Transactions - The group disclosed related party transactions that constitute non-exempt continuing connected transactions under the Listing Rules[111] - The total amount of related party transactions for rental properties amounted to $2,328,000, with a maximum annual limit of $3,132,000[112] - The general service agreement with New Technology Knitting generated revenue of $393,000, with a maximum limit of $1,000,000[115] - The subcontracting service agreement with New Technology Knitting generated revenue of $2,254,000, with a maximum limit of $4,000,000[115] - The rental agreements with related parties were confirmed to reflect current market rental values[113]
晶苑国际(02232) - 2021 - 年度财报