Business Environment and Strategy - The company anticipates a challenging business environment in the short term due to the ongoing COVID-19 pandemic and geopolitical tensions[5]. - The company is focused on expanding its operations and enhancing R&D and production technologies to maintain its market position[5]. - The company aims to implement cost-effective measures to balance overall performance amidst uncertainties[5]. - The company expresses confidence in generating higher financial returns for shareholders through strategic efforts[5]. - The company acknowledges the need for sustainable development to create greater value for shareholders and stakeholders[5]. Financial Performance - The company recorded an annual profit of HKD 721,000 for the year ended December 31, 2021, a significant increase of HKD 1,504,000 compared to a loss of HKD 783,000 for the year ended December 31, 2020[20]. - Revenue for the year was HKD 73,731,000, representing a decrease of approximately 3.3% from HKD 76,279,000 in the previous year[20]. - The gross profit margin for the year was 38.4%, remaining stable compared to the previous year's margin of 39.1%[22]. - Other income and gains increased by HKD 1,296,000 or 27.5%, totaling HKD 6,001,000 for the year[23]. - Operating expenses for the year were HKD 26,242,000, a slight decrease of 0.6% from HKD 26,395,000 in the previous year[24]. - For the year ended December 31, 2021, the group recorded a tax expense of HKD 2,647,000, a decrease from HKD 3,274,000 in the previous year, primarily due to a tax refund of 25% on taxable income from the previous year[25]. - The company reported a total comprehensive income of HKD 6,337,000 for the year ended December 31, 2021, compared to a loss of HKD 783,000 in the previous year[193]. Revenue Breakdown - Revenue from the construction of tobacco flavoring and blending machinery contributed HKD 37,316,000 or 50.6% of total revenue, down from 71.3% in the previous year[21]. - Sales of the wind delivery system decreased by approximately 17.3% to HKD 14,544,000 from HKD 17,597,000 in the previous year[21]. - Sales of pre-compression packing machinery increased significantly to HKD 15,398,000, accounting for 20.9% of total revenue, due to the completion of two contracts totaling approximately HKD 15,000,000[21]. - The sales mix for the year included 50.6% from the tobacco flavoring and machinery contracts, compared to over 70% in the previous year, indicating a shift in product sales dynamics[28]. Assets and Liabilities - As of December 31, 2021, the group had cash and bank balances of HKD 96,040,000, slightly down from HKD 97,418,000 in the previous year, with a zero debt ratio[31]. - The group’s current assets net value was HKD 92,837,000, an increase from HKD 89,404,000 in the previous year, with current and quick ratios of 1.6 and 1.1 respectively[31]. - Current liabilities rose to HKD 142,948,000 in 2021 from HKD 97,818,000 in 2020, indicating increased short-term obligations[188]. - The company’s total equity increased to HKD 123,198,000 in 2021 from HKD 119,456,000 in 2020, reflecting improved financial health[190]. Shareholder Information - The company’s issued share capital as of December 31, 2021, included 600,000,000 shares held by a controlled corporation, representing 74.6% of the issued share capital[61]. - Major shareholders include LinkBest with 360,000,000 shares (44.8%) and Open Venture with 240,000,000 shares (29.8%), both fully owned by Ms. Liu Li[74]. - Ms. Liu Li holds a total of 600,000,000 shares, representing 74.6% of the company's issued share capital[74]. - The board does not recommend the payment of dividends for the year ended December 31, 2021, consistent with 2020[46]. Employee and Operational Metrics - Employee costs totaled HKD 18,848,000 for the year, up from HKD 15,533,000 in the previous year, with a total of 140 employees as of December 31, 2021[36]. - The workforce consisted of 134 employees in fiscal year 2021, with 17.91% being female[143]. - Employee turnover rate for the fiscal year 2021 was 15.6%, compared to 11.8% in 2020[147]. - The average training hours per employee in 2021 were 1.7 hours for females and 5.1 hours for males, with a training participation rate of 12.5% for females and 14.5% for males[154]. Environmental and Social Responsibility - The company is committed to sustainable development, focusing on creating long-term value for stakeholders and minimizing environmental and social impacts[125]. - The environmental, social, and governance report was prepared in accordance with the Hong Kong Stock Exchange's guidelines for such reports[126]. - In the fiscal year 2021, the company emitted 550.9 tons of CO2e, an increase from 426.2 tons in the fiscal year 2020, primarily due to increased transportation distances for products[135]. - The company has committed to conducting regular environmental audits and monitoring to ensure compliance with safety and environmental regulations[131]. - The company has not faced any claims or fines related to environmental damage during the reporting period[137]. Governance and Compliance - The financial statements for the year ended December 31, 2021, were audited by Deloitte[80]. - The board consists of five directors, including two executive directors and three independent non-executive directors[84]. - Independent non-executive directors account for 50% of the board, ensuring compliance with listing rules regarding independence and financial expertise[95]. - The company has adopted a board diversity policy, considering various factors such as gender, age, and professional experience in director selection[110]. - The company has highlighted the importance of maintaining adequate internal controls and compliance with professional ethical standards in its audit processes[181].
仁恒实业控股(03628) - 2021 - 年度财报