Economic Performance - In 2021, China's GDP growth was 8.1%, influenced by multiple factors including the COVID-19 pandemic and rising commodity prices[6]. - The motorcycle output in China recorded relatively stronger growth, while automobile output showed no pronounced growth due to chip shortages and high transportation costs[12]. - Despite challenges from the COVID-19 pandemic, overseas revenue increased, particularly in North America[27]. Business Operations - The Group maintained a good business condition despite a lackluster market backdrop, focusing on quality and continuous innovation in the chlortetracycline market[6]. - The Group implemented "Six Sigma" in production processes, enhancing efficiency and product quality while promoting automation[9]. - The engineering machinery sector faced significant challenges, with a decline in sales and intensified market competition, leading to a further shrinkage in market share[12]. - The Group's biochemical business focuses on CTC products, which are antibiotics used to prevent or cure animal diseases[25]. - The Group successfully shifted key CTC customers from feed mills to farms in response to the ban on antibiotics as feed additives[25]. Financial Performance - For the year ended December 31, 2021, the Group's revenue increased by 52.2% to US$142.41 million, compared to US$93.58 million in 2020[21]. - Profit attributable to shareholders of the Company was US$19.56 million; excluding the one-off net gain on factory relocation of US$11.03 million, profit decreased to US$8.53 million from US$16.26 million in 2020[21]. - Basic and diluted earnings per share were both US 7.72 cents, up from US 6.42 cents in 2020; excluding the one-off net gain, earnings per share dropped to US 3.37 cents[21]. - Overall gross profit margin declined from 26.6% in 2020 to 24.4% in 2021 due to rising raw material and energy costs[28]. - The share of profit from the joint venture in the industrial business dropped from $12.35 million in 2020 to $4.03 million in 2021[33]. Revenue and Market Contribution - Revenue contribution from China was 49.5%, the Americas 21.5%, Asia Pacific (excluding China) 19.0%, and other regions 10.0%[26]. - The biochemical business revenue increased by 52.2% to $142.41 million in 2021, compared to $93.58 million in 2020[29]. Corporate Governance - The Company maintained strict corporate governance standards throughout 2021, complying with the Corporate Governance Code as per the Listing Rules[59]. - The Board consists of nine members, including four executive directors, two non-executive directors, and three independent non-executive directors[61]. - The Company adopted a Code of Conduct for Securities Transactions, ensuring compliance with the required standards for dealings in the Company's securities[63]. - The Board oversees the implementation of strategies and reviews operational and financial performance, ensuring a sound risk management system is in place[63]. Risk Management - The Board considers the Group's risk management and internal control systems to be effective and adequate, with sufficient resources, staff qualifications, and training programs[140]. - The Audit Committee conducted an annual review of the effectiveness of the Group's risk management and internal control systems in 2021[143]. - The Group is committed to continuous improvement of its risk management and internal control framework, enhancing integration into business processes[146]. Employee and Community Engagement - The Group actively recruited R&D and sales talent in 2021 to improve human resources structure and overall staff quality[9]. - The Group emphasized social responsibility by conducting charitable events and providing community assistance during the COVID-19 pandemic[9]. - The Company provides various employee benefits, including medical insurance and training, based on performance and market standards[54]. Future Outlook - The outlook for 2022 indicates a challenging year due to uncertainties from new COVID-19 variants and intensified competition in the industrial sector[35]. Board Composition and Diversity - The Company has a diverse board with members holding significant positions in various industries, enhancing its governance and strategic direction[193]. - The Board has adopted a board diversity policy to enhance effectiveness and governance, considering factors such as gender, age, and professional experience in candidate selection[105]. - The Nomination Committee is responsible for identifying and nominating suitably qualified candidates for the Board, ensuring a balance of skills, experience, and diversity[1]. Audit and Financial Oversight - The Audit Committee is responsible for independent oversight of the Group's financial reporting, risk management, and internal control systems[88]. - The total remuneration paid to the external auditor for the year ended December 31, 2021, was US$217,000, which includes US$164,000 for audit services and US$51,000 for review engagements[98].
正大企业国际(03839) - 2021 - 年度财报