Financial Performance - Revenue for the year 2021 was HKD 18,676 million, an increase from HKD 16,512 million in 2020, representing a growth of 13.1%[14] - Gross profit for 2021 was HKD 6,596 million, with a gross margin of 35.3%, down from 37.7% in 2020[14] - Operating profit decreased to HKD 2,043 million in 2021, with an operating margin of 10.9%, compared to 14.9% in 2020[14] - EBITDA for 2021 was HKD 3,292 million, with an EBITDA margin of 17.6%, down from 21.8% in the previous year[14] - Basic earnings per share for 2021 were HKD 1.365, a decrease from HKD 1.565 in 2020[14] - Net profit decreased by 12.6% to HKD 1,638 million, resulting in a net profit margin of 8.8%[39] - Total revenue for the year increased by 13.1% to HKD 18,676 million[25] - Total revenue for the year ended December 31, 2021, was HKD 18,675,739,458, an increase from HKD 16,511,676,772 in 2020, representing a growth of approximately 13.1%[187] - Profit attributable to equity holders of the company was HKD 1,638,364,572, down from HKD 1,874,329,244 in 2020, a decrease of approximately 12.6%[187] Dividends - The company declared a total dividend of HKD 0.50 per share for 2021, up from HKD 0.47 per share in 2020[14] - The board proposed a final dividend of HKD 0.40 per share, bringing the total dividend for the year to HKD 0.50 per share[39] - The proposed final dividend is HKD 0.40 per share, totaling HKD 480,506,149, subject to shareholder approval[60] - The board proposed a final dividend of HKD 0.40 per share for the year ended December 31, 2021, totaling HKD 480,506,149, an increase from HKD 0.37 per share in 2020[132] Market and Product Strategy - The company is focusing on high-end product diversification and expanding into personal care markets to capture new consumer trends[19] - The company aims to enhance market penetration through collaboration with major e-commerce platforms[25] - The company is focusing on the elderly care product market, anticipating it to become a new profit growth point[28] - The high-end female hygiene product "Libresse" is gaining market share, particularly in mainland China[27] - The company continues to expand its Southeast Asia business through its R&D and production base in Malaysia[25] - The online sales strategy includes entering new platforms like Douyin and Kuaishou to capture emerging consumer trends[25] - The company plans to expand its paper production capacity to 1,390,000 tons by the end of the year, enhancing high-end consumer paper production[30] - The group aims to expand its market share in personal care business in mainland China and Southeast Asia[56] Operational Efficiency - The inventory turnover period increased to 55 days in 2021, compared to 49 days in 2020[14] - The current ratio improved to 1.3 in 2021, up from 1.1 in 2020[14] - The net debt to EBITDA ratio remained stable at 1.2 times for both years[14] - The company received a HKD 300 million sustainable development performance-linked loan, recognizing its achievements in environmental, social, and governance (ESG) performance[32] - The establishment of a regional headquarters in Malaysia is expected to enhance operational efficiency and support long-term development in emerging markets[31] Sustainability and Environmental Initiatives - The sustainable development blueprint covers eight areas, including energy management and green supply chain[25] - The company has established a five-year sustainable development roadmap covering eight major areas, including energy management and carbon emissions[120] - The energy efficiency for the year 2021 was reported at 0.21 tons of standard coal consumed per HKD 10,000 in sales[120] - The group’s total carbon emissions amounted to 1,220,493 tons, with a carbon emission intensity of 0.65 tons per HKD 10,000 in sales[53] - The management team emphasized the importance of sustainability initiatives, aiming for a 30% reduction in carbon emissions by 2025[65] - The company emphasizes compliance with environmental laws and regulations, alongside other significant legal requirements[121] Governance and Management - The board of directors consists of 12 members, ensuring a diverse range of expertise and governance oversight[79] - The company has adhered to high standards of corporate governance, complying with all relevant regulations and guidelines[78] - The management team includes experienced professionals with extensive backgrounds in production, finance, and marketing, enhancing the company's strategic capabilities[75] - The company has implemented a comprehensive internal control system to maintain operational efficiency and compliance[80] - The board meets regularly, approximately quarterly, to review strategies and ensure alignment with shareholder interests[80] - The company is committed to transparency and accountability to its shareholders, reinforcing its governance framework[78] Financial Position - Total assets increased to HKD 24,180,971,290 in 2021, up from HKD 23,121,601,600 in 2020, representing a growth of approximately 4.6%[183] - Total equity increased to HKD 13,018,661,883 in 2021, up from HKD 11,667,357,034 in 2020, indicating a growth of approximately 11.6%[183] - Total liabilities decreased to HKD 11,162,309,407 in 2021 from HKD 11,454,244,566 in 2020, representing a reduction of about 2.5%[184] - Cash and cash equivalents increased significantly to HKD 1,025,327,689 in 2021 from HKD 749,399,329 in 2020, marking a growth of approximately 37%[183] - The company reported a significant increase in other reserves to HKD 8,439,573,727 in 2021 from HKD 7,119,034,916 in 2020, representing a growth of approximately 18.5%[183] Related Party Transactions - The company has established a continuous related party transaction framework with Essity Group and Asaleo Care, which will be monitored for compliance with listing rules[142] - The independent non-executive directors confirmed that the ongoing related party transactions were conducted in the ordinary course of business and on fair terms[144] - The company’s auditor issued an unqualified opinion regarding the ongoing related party transactions disclosed in the annual report[145] - Total transactions under the Asaleo Care product supply agreement amounted to HKD 42,969,803 against an annual cap of HKD 100,000,000, representing 42.97% of the cap[144] - Transactions under the Vinda procurement master agreement totaled HKD 185,128,598, which is 74.05% of the annual limit of HKD 250,000,000[144] - The Essity procurement master agreement had transactions amounting to HKD 166,242,833, accounting for 55.41% of the annual cap of HKD 300,000,000[144] Risk Management - The company is exposed to various financial risks, including market risks related to foreign exchange and interest rates[124] - The company’s risk management plan focuses on minimizing potential adverse impacts on financial performance due to market unpredictability, managed by a central finance department[127] - The risk register records potential risks and mitigation actions, which are monitored closely as part of daily operations[110] - The Risk Management Committee is responsible for advising on significant decisions affecting the group's risk profile[100] Audit and Compliance - The Audit Committee reviewed the effectiveness of internal controls and risk assessment processes during the year[98] - The internal audit department reports quarterly to the audit committee, assessing the effectiveness of the internal control system and addressing any identified deficiencies[110] - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards, reflecting the best estimates and judgments of the board and management[107] - The company confirmed no significant uncertainties affecting its ability to continue as a going concern as of December 31, 2021[107]
维达国际(03331) - 2021 - 年度财报