Financial Performance - Revenue decreased to approximately HKD 755.6 million, down about 27.4% compared to 2020[3] - The company reported a loss attributable to owners of approximately HKD 172.4 million, compared to a profit of HKD 1.4 million in 2020[3] - EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) was HKD 45.2 million, down from HKD 107.1 million in 2020[3] - For the year ended December 31, 2021, total revenue was HKD 755,603,000, a decrease from HKD 1,040,369,000 in 2020, representing a decline of approximately 27.5%[20] - The group reported a loss before tax of HKD 168,418,000 for 2021, compared to a profit before tax of HKD 6,503,000 in 2020[20][25] - The group incurred a loss of HKD 137,150,000 in the manufacturing segment for 2021, compared to a profit of HKD 43,621,000 in 2020[20][22] - The gross profit dropped by 61.6% from HKD 127.9 million in 2020 to HKD 49.1 million in 2021, with the gross margin falling from 12.3% to 6.5%[41] - The company recorded a net loss of HKD 172.4 million in 2021, compared to a profit of HKD 1.4 million in 2020, representing a decrease of HKD 173.8 million[44] Assets and Liabilities - Total assets decreased to HKD 1,953.1 million from HKD 2,192.6 million in 2020[6] - Non-current assets decreased to HKD 1,463.8 million from HKD 1,563.4 million in 2020[6] - Current liabilities decreased to HKD 265.3 million from HKD 373.7 million in 2020[6] - The company’s net asset value decreased to HKD 1,500.0 million from HKD 1,621.1 million in 2020[6] - Trade receivables decreased from HKD 200.1 million in 2020 to HKD 112.7 million in 2021, a reduction of 43.6%[30] - The current assets net value was HKD 225 million, down from HKD 265.8 million as of December 31, 2020, while the current ratio increased to 1.8 from 1.7[45] Impairment and Costs - The company recognized impairment losses of approximately HKD 110 million on property, plant, and equipment due to temporary production line shutdowns[3] - The group recognized impairment losses on property, plant, and equipment amounting to HKD 110,016,000 in 2021, with no such losses recorded in 2020[25] - The cost of inventory recognized as an expense was HKD 706,480,000 in 2021, down from HKD 912,500,000 in 2020, a decrease of about 22.6%[25] - The group’s employee costs were HKD 88,292,000 in 2021, a decrease from HKD 107,200,000 in 2020, representing a reduction of approximately 17.7%[25] - Total finance costs decreased to HKD 8,440,000 in 2021 from HKD 8,813,000 in 2020, reflecting a reduction of approximately 4.2%[23] Cash Flow and Borrowings - Cash net amount (bank balance and cash minus bank borrowings) increased to HKD 19.8 million from HKD 8.9 million in 2020[3] - As of December 31, 2021, the group's bank balances and cash amounted to HKD 246.7 million, a decrease from HKD 291.5 million as of December 31, 2020[45] - The total bank borrowings decreased from HKD 282.6 million as of December 31, 2020, to HKD 226.9 million as of December 31, 2021[45] - The net cash position (bank balances and cash minus total bank borrowings) improved to HKD 19.8 million from HKD 8.9 million as of December 31, 2020[45] Operational Insights - The manufacturing segment generated revenue of HKD 982,751,000 in 2021, down from HKD 1,303,388,000 in 2020, indicating a decrease of about 24.6%[20][22] - The company experienced a 15.7% decline in revenue in the second half of 2021 compared to the first half, and a 51.7% decline compared to the second half of 2020[39] - The upstream business revenue fell by 75.7% due to temporary production suspension, while downstream revenue increased by 8.4%[39] - Other income decreased from HKD 23.1 million in 2020 to HKD 17.9 million in 2021, primarily due to a reduction in scrap sales[41] Future Outlook and Strategy - The company anticipates that the global economy will continue to be affected by COVID-19 variants, but expects stable growth in the Chinese economy, leading to increased demand for corrugated packaging[48] - The company plans to continue coordinating with local governments regarding the licensing of existing coal-fired boilers and to expedite the installation of gas boilers[48] Corporate Governance - The audit committee has reviewed the unaudited financial results for the year ended December 31, 2021, but the audit process has been delayed due to various factors including asset valuation and site audit work in the Philippines[51] - The executive directors of the company are Mr. Xu Senping and Mr. Xu Sentai[63] - The independent non-executive directors include Mr. Chi Minsheng, Mr. Huang Zhuliang, and Ms. Zhou Shuming[63] Employment - The company employed approximately 805 full-time staff as of December 31, 2021, down from 1,050 in 2020[49]
合丰集团(02320) - 2021 Q4 - 年度财报