Financial Performance - For the year ended December 31, 2021, the Group recorded revenue of RMB992,962,000, a year-on-year decrease of 18.6% from RMB1,219,856,000 in 2020[6]. - The high-end consuming accessories business generated revenue of RMB550,933,000, representing a year-on-year increase of 28.7% compared to RMB428,048,000 in 2020[6]. - International commodity trading revenue surged to RMB327,061,000, marking a year-on-year increase of 185.3% from RMB114,641,000 in 2020[6]. - Watch retail and trading sales decreased to RMB114,968,000, reflecting a year-on-year decline of 83.0% from RMB677,167,000 in 2020[6]. - The Group achieved a net profit of RMB20,210,000, a significant recovery from a loss of RMB386,524,000 in 2020[6]. - The Group's gross profit amounted to approximately RMB113,867,000, representing a year-on-year increase of 176.8%[37]. - Gross profit margin was approximately 11.5%, representing a year-on-year increase of 24 percentage points[37]. - Profit attributable to equity shareholders amounted to RMB26,282,000, representing a year-on-year increase of 106.9%[37]. - The Group's financial report for 2021 reflects a fair view of the company's financial position as of December 31, 2021[149]. Business Strategy and Focus - The Group's business focus during the year was on high-end consumer accessories manufacturing and international commodity trading[44]. - The Group will focus on manufacturing high-end accessories for renowned watches and deepen cooperation with brands and international counterparts[22]. - The Group aims to expand its business into high-end lifestyle products such as jewellery, cosmetics, and mobile phones, as well as enhance commercial space beautification services[22]. - The Group's strategy includes exploring new profit models and achieving breakthroughs in corporate development[22]. - The Group plans to adapt to market changes by strengthening industrial management and prioritizing quality and innovation for growth[22]. - The Group aims to establish a solid foundation for future growth through prudent commodity trading activities in 2022[23]. Market Conditions and Risks - The ongoing COVID-19 pandemic continues to create uncertainty in the global economy, increasing downward pressure on China's economy[9]. - The fundamentals for long-term economic improvement in Mainland China remain unchanged, with a trend for medium-to-high economic growth expected to continue[9]. - The Group's operations are subject to various risks, including strategy risk, commodity risk, and operation risk, which could impact financial performance and business direction[26]. - The reliance on brand suppliers poses a commodity risk, and the Group maintains good relationships with multiple suppliers to mitigate this risk[26]. - The Group will closely monitor international market conditions, price trends, and customer demands to reduce potential adverse impacts on operating results[26]. Corporate Governance - The Company has maintained high-standard corporate governance practices to ensure transparency and safeguard long-term development[128]. - The Board comprises three executive directors, one non-executive director, and three independent non-executive directors, ensuring independence and objectivity in decision-making[131]. - The independent non-executive directors possess expertise in accounting, economics, law, computing control, and business administration, representing shareholder interests effectively[131]. - The Company has established both remuneration and nomination committees in compliance with the Listing Rules, ensuring proper governance and oversight[153][156]. - The Company emphasizes the importance of candidates being able to dedicate sufficient time to fulfill their duties as Directors[157]. Human Resources and Employee Relations - The Group had a total of 1,597 employees as of December 31, 2021, an increase from 1,460 employees in 2020, reflecting a growth of approximately 9.4%[86]. - The Group offers a competitive remuneration package and various incentives, including pension plans and housing allowances, to enhance employee satisfaction[88]. - The remuneration for Directors and employees is determined based on their experience, responsibilities, workload, and years of service[71]. - The Group's human resource assurance system fosters a harmonious work environment among employees from diverse backgrounds[89]. - The Company emphasizes ongoing training for employees, covering management, sales skills, and service awareness to enhance overall capabilities[86]. Environmental, Social, and Governance (ESG) Initiatives - The Group's Board oversees environmental, social, and governance (ESG) strategies and performance, which are essential for long-term success[176]. - An ESG Committee has been established to formulate development strategies and monitor related risks[176]. - The Group focuses on providing quality and safe products, ensuring mutual benefits for customers, employees, and society[177]. - Hengdeli emphasizes the importance of corporate governance and risk management in its operations[189]. - The Group has committed to environmental protection and community contributions through various social activities[191]. Shareholder Relations and Communication - The Company has maintained close communications with shareholders, analysts, and fund managers through various channels, including one-on-one meetings, roadshows, and press conferences, to enhance transparency and provide timely information[169]. - The Company believes in the importance of effective communication with investors to enhance their understanding of the sales of exquisite watches and the Group's development strategy[169]. - The Company will continue to maintain a close relationship with its investors to enhance their understanding and confidence in the Group[169].
亨得利(03389) - 2021 - 年度财报