Financial Performance - The company's revenue increased by 21.3% from approximately RMB 1.421 billion in 2020 to approximately RMB 1.724 billion in 2021[11] - Gross profit and profit attributable to the owners of the company were approximately RMB 317.5 million and RMB 202.5 million, respectively[11] - The company reported total revenue of approximately RMB 1.7243 billion for the year ended December 31, 2021, an increase of 21.3% or approximately RMB 303.2 million from the previous year[26] - Profit attributable to owners for the year ended December 31, 2021, was approximately RMB 202.5 million, an increase of 222.5% or about RMB 139.7 million from RMB 62.8 million for the year ended December 31, 2020[38] - Basic earnings per share for the year ended December 31, 2021, were approximately RMB 0.1617, compared to RMB 0.0501 for the year ended December 31, 2020, reflecting an increase due to higher net profit[39] Dividends and Reserves - The board has proposed a final dividend of HKD 0.05 per share for the year ended December 31, 2021[11] - As of December 31, 2021, the company's distributable reserves were approximately RMB 134 million according to the Cayman Islands Companies Law[77] Market and Economic Conditions - China's GDP growth rate for 2021 was approximately 8.1%, the highest among major global economies[10] - The global economic recovery is expected to continue, despite uncertainties from potential COVID-19 variants and geopolitical tensions[12] - The textile market in China experienced robust growth due to improved consumer confidence and increased retail sales, driven by the successful containment of the pandemic[22] - The company is optimistic about the textile market and aims to leverage favorable market conditions to enhance its competitive position[12] Production and Sales - The company's yarn product sales increased by 3.1% to approximately 119,901 tons for the year ended December 31, 2021, compared to 116,242 tons in the previous year[21] - Yarn product revenue rose by 26.4% to approximately RMB 1.6409 billion for the year ended December 31, 2021, up from approximately RMB 1.2979 billion in the previous year[21] - The overall average selling price of yarn products increased by 22.6% to approximately RMB 13,685 per ton for the year ended December 31, 2021, compared to RMB 11,165 per ton in the previous year[26] - The production of polyester short fibers (PSF) increased by 20.1% to approximately 34,117 tons for the year ended December 31, 2021, despite a decrease in sales volume[22] Expenses and Financial Management - Distribution and selling expenses for the year ended December 31, 2021, were approximately RMB 27.1 million, an increase of 2.3% or about RMB 0.6 million from RMB 26.5 million for the year ended December 31, 2020, representing 1.6% of total revenue[33] - Administrative expenses for the year ended December 31, 2021, were approximately RMB 57.5 million, an increase of 16.9% or about RMB 8.3 million from RMB 49.2 million for the year ended December 31, 2020, accounting for 3.3% of total revenue[34] - Financial costs for the year ended December 31, 2021, were approximately RMB 24.7 million, a decrease of 16.0% or about RMB 4.7 million from RMB 29.4 million for the year ended December 31, 2020[35] - Income tax expenses for the year ended December 31, 2021, were approximately RMB 31.0 million, an increase of 134.8% or about RMB 17.8 million from RMB 13.2 million for the year ended December 31, 2020, with an effective tax rate of 13.2%[36] Corporate Governance - The company has established a remuneration committee, nomination committee, and audit committee, ensuring proper governance and oversight[134] - The board consists of one executive director, one non-executive director, and three independent non-executive directors, meeting the listing rules requirements[126] - The independent non-executive directors have confirmed their independence in accordance with the listing rules[130] - The company has complied with the corporate governance code as per the listing rules during the year ended December 31, 2021[123] Risk Management and Compliance - The board believes that the risk management and internal control systems are appropriate and effective, with no significant improvements needed[164] - The group is committed to ensuring compliance with relevant laws and regulations through its risk management and internal control systems[164] - The company closely monitors the impact of the COVID-19 pandemic on its business and adjusts its product mix and sales strategies accordingly[158] Future Plans and Investments - The company is constructing a highly automated workshop with a capacity of 50,000 spindles, which began construction in Q3 2021[11] - The company acquired the remaining minority interests in Jiangxi Xinyuan Special Fiber Co., Ltd. to strengthen its upstream business interests[11] - The company aims to improve production efficiency through increased automation and better product mix and pricing strategies[52] Shareholder Engagement - The company emphasizes the importance of effective communication with shareholders and investors through various channels, including interim reports and annual reports published on the stock exchange and the company's website[165] - Shareholders holding at least 10% of the voting rights can request a special general meeting within two months to address specified matters[167] - The company encourages shareholders to participate in annual general meetings to express their opinions and exercise their voting rights[165]
中国织材控股(03778) - 2021 - 年度财报