Financial Performance - For the year ended December 31, 2021, the Group's revenue reached RMB 26.52 billion, representing a year-on-year increase of 35.5%[4] - The gross profit for the year was RMB 5.85 billion, a significant increase of 116.2% compared to the previous year[4] - Profit attributable to shareholders rose to RMB 2.69 billion, marking a 419.3% increase from the prior year[4] - The annual sales volume of yarns reached over 810,000 tonnes, achieving stable growth compared to last year[16] - Revenue from the sale of garment fabrics increased by 51.7% to RMB 3.61 billion[16] - The gross profit margin for the yarn business rose by 9.9 percentage points to 23.3% compared to the previous year[16] - The Group's revenue for 2021 increased by 35.5% to approximately RMB 26.5 billion, achieving record high figures[22] - Profit attributable to shareholders soared to approximately RMB 2.69 billion, a fourfold increase compared to the previous year[22] - Yarn sales accounted for approximately 76.9% of total revenue, amounting to approximately RMB 20.4 billion, representing a substantial increase of 34.2%[25] - The overall gross profit margin of the Group improved significantly by 8.3 percentage points from 13.8% last year to 22.1% for the year[33] Operational Highlights - The Group has over 5,000 customers globally, with a sales network spanning multiple regions including China, Vietnam, and North America[9] - The sales volume of woven garment fabrics increased from approximately 88 million meters to 137 million meters, with a gross profit margin climbing to 23.1%[29] - The knitted garment fabrics sales volume was approximately 18,000 tonnes, a modest increase of 1,800 tonnes over the previous year, with a gross profit margin of around 16%[30] - The Group plans to invest approximately RMB 2.0 billion in fixed assets in 2022, targeting sales of 880,000 tonnes of yarns, 180 million meters of woven garment fabrics, and 28,000 tonnes of knitted garment fabrics[37] - The Group's internal use of grey fabrics increased, while external sales decreased from approximately 66 million meters to nearly 53.8 million meters, with a gross profit margin of 29.7%[27] Financial Position - Total assets as of December 31, 2021, were RMB 24.44 billion, reflecting a 21.3% increase from the previous year[5] - The Group's net current assets increased by 124.8% to RMB 2.96 billion[5] - The return on equity for the year was 30%, a significant increase from 7% in the previous year[6] - As of December 31, 2021, total bank borrowings increased by RMB 151.9 million to RMB 7,215.0 million, with current borrowings decreasing by RMB 5.8 million to RMB 3,831.7 million[67][70] - The current ratio as of December 31, 2021, was 1.29, and the debt to equity ratio was 0.72, indicating the Group's financial leverage and liquidity position[69] Risk Management - The Group plans to enhance its operational capabilities and adopt risk management measures in response to high raw material prices and exchange rate fluctuations[20] - The Group has hedged about half of its foreign currency exposure through currency option contracts and currency swaps to mitigate foreign exchange risks[72] - The Group's exposure to foreign exchange risk is mainly from borrowings and raw material procurement denominated in US$ or HK$[73] - The Group is subject to operational risks due to the concentration of its business in the textile industry, which is affected by global COVID-19 impacts and uncertainties in export policies towards China[80] - The risk management and internal controls framework aims to enhance long-term shareholder value by identifying and assessing risk exposures[166] Corporate Governance - The Board comprises four executive Directors and three independent non-executive Directors, ensuring a balance of power and independence[110] - The Company has complied with the Corporate Governance Code provisions during the year ended December 31, 2021[110] - The Board meets regularly to discuss overall strategy and financial performance, holding four Board meetings and one general meeting during the year[115] - The company has established various committees, including the Remuneration Committee, Audit Committee, Nomination Committee, and ESG Committee, to ensure effective governance[130] - The Board adopted a Board Diversity Policy on August 5, 2013, aiming for diversity in Board appointments, including gender diversity[159] Human Resources - The Group had a total workforce of 33,639 employees, down from 38,545 employees at the end of 2020, due to the sale of a spinning mill and a majority interest in a jeanswear production plant[75] - The Group is committed to optimizing its human resources structure and providing competitive remuneration packages based on market conditions and employee performance[75] - The Group plans to continue enhancing its training and development programs to foster a skilled and motivated workforce[75] - The Group has implemented performance-based unit counts and expanded staff training to enhance workforce efficiency and capability[106] Environmental and Social Responsibility - The Group has not faced any fines or penalties related to environmental pollution in the past, but future regulatory changes may require substantial expenditures to upgrade environmental protection facilities[109] - The increase in the number of factories has heightened the risk associated with environmental governance, as governments tighten controls over environmental protection[109] - The ESG Committee's major roles include formulating and reviewing policies on environmental protection, corporate governance, and corporate social responsibility[146] - The company aims to ensure compliance with environmental protection, corporate governance, and corporate social responsibility policies[151]
天虹国际集团(02678) - 2021 - 年度财报