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大成糖业(03889) - 2021 - 年度财报
GLOBAL SWEETGLOBAL SWEET(HK:03889)2022-05-12 08:45

Financial Performance - The company's revenue for 2021 was HKD 728.1 million, a decrease of 5.3% compared to HKD 769.0 million in 2020[7]. - Gross profit for 2021 was HKD 41.6 million, down 46.6% from HKD 77.9 million in 2020[7]. - The company reported a net loss of HKD 96.3 million for 2021, compared to a loss of HKD 8.7 million in 2020[7]. - The group’s consolidated revenue decreased by 5.3% to approximately HKD 728,100,000 (2020: HKD 769,000,000) due to the ongoing impact of COVID-19 and high corn prices[28]. - The gross profit margin declined by approximately 4.4 percentage points to about 5.7% (2020: 10.1%) as the average selling price of sweetener products did not offset the increase in raw material costs[28]. - Other income and gains decreased by approximately 52.9% to about HKD 145,700,000 (2020: HKD 309,100,000) primarily due to the difference in one-time gains from property acquisition[37]. - The group recorded a net loss attributable to shareholders of approximately HKD 96,300,000 (2020: HKD 8,700,000) due to decreased gross profit and other income[44]. Debt and Restructuring - The company achieved a one-time gain of approximately HKD 128.3 million from a debt restructuring agreement in March 2021, significantly lower than the HKD 289.4 million gain from the previous year[14]. - The company is in ongoing negotiations with creditors to further progress its debt restructuring by the end of 2022[17]. - The management is focused on debt restructuring to improve the company's financial condition amid current market conditions[65]. - The company has engaged in debt restructuring, transferring most bank loans as part of the plan to improve liquidity[157]. Market Conditions and Challenges - The company anticipates continued challenges in the sweetener industry for 2022 due to high corn prices and increased logistics and energy costs[16]. - The company anticipates that the operating environment in 2022 will remain challenging due to high corn prices and the ongoing impact of the COVID-19 pandemic[27]. - The company aims to balance maintaining a relatively stable cash flow while preserving its market share amid changing consumer preferences towards healthier products[27]. - The company is enhancing its product portfolio and developing green products to address market needs and explore new export markets amid intense competition[157]. - The operational environment has been severely impacted by the COVID-19 pandemic, leading the company to streamline operations to ensure liquidity[157]. Production and Efficiency - The company plans to review and improve production processes and technology at its Shanghai facility to enhance efficiency and increase capacity utilization[16]. - The company continues to suspend operations at its sweetener production facilities in Jinzhou and Xinglongshan, consolidating resources to its more efficient Shanghai facility[26]. - Aging production facilities have reduced productivity, prompting upgrades and relocations of production facilities to adapt to market changes[157]. Corporate Governance - The company has maintained compliance with the corporate governance code as per the Stock Exchange Listing Rules, ensuring high standards of governance to protect shareholder interests[79]. - The board consists of five directors, including two executive directors and three independent non-executive directors, with no significant relationships among them[81]. - The company has adopted a rigorous code of conduct for directors' securities transactions, ensuring adherence to the standards set forth in the Listing Rules[79]. - The company has established mechanisms to ensure the independence of the board, allowing for independent opinions and information[83]. - The company has invested resources in selecting and establishing best practice standards for corporate governance[78]. Risk Management - The internal control and risk management system is designed to reasonably safeguard the group's assets and ensure all transactions are authorized by management[146]. - The company employs a "three lines of defense" approach for enterprise risk management, delineating responsibilities for managing operational risks across different levels of the organization[154]. - The audit committee reviews the effectiveness of internal controls and risk management systems at least annually, reporting any significant risk issues to the board[147]. - The company identified and managed significant risks at strategic, operational, and functional levels to balance risk and return while pursuing growth opportunities[155]. Environmental and Social Responsibility - The company is committed to minimizing its environmental footprint while ensuring public safety and health[155]. - The company publishes its Environmental, Social, and Governance (ESG) report annually on its website and the stock exchange[159]. Shareholder Relations - The company aims to achieve at least one female member on the board by December 31, 2024, to enhance board diversity[92]. - The board has adopted a dividend policy aiming to provide stable and sustainable returns to shareholders, targeting a minimum of 15% of annual profit attributable to equity holders as dividends in the foreseeable future[143]. - The actual amount of dividends declared and distributed will be determined at the board's discretion, considering factors such as cash reserves, investment requirements, and cash flow needs[143].