Financial Performance - The Group recorded total revenues of approximately HK$2,640.1 million for the Year, with profits attributable to owners of the Company amounting to HK$6.7 million, compared to a loss of approximately HK$5.1 million in 2020[9]. - The Group's revenue for the Year was HK$2,640.1 million, representing an increase of 50.3% over that of Year 2020[39]. - Net profit for Year 2021 was HK$16.6 million, a significant increase from HK$0.1 million in Year 2020[46]. - The net profit attributable to the owners of the Company was HK$6.7 million in Year 2021, compared to a net loss of HK$5.1 million in Year 2020[46]. - Gross profit for the year amounted to HK$226.1 million, a 62.6% increase from HK$139.0 million in 2020, with a gross profit margin of 8.6%[44]. - The Group's digital storage products and general components accounted for 75.3% and 24.7% of total revenue, respectively[44]. - Revenue from digital storage products increased by 69.5% to HK$1,988.8 million, up from HK$1,173.7 million in 2020[40]. - General components revenue grew by 11.8% to HK$651.3 million, up from HK$582.3 million in 2020[40]. Market Trends and Demand - The semiconductor device prices rose due to supply chain disruptions and chip shortages caused by the COVID-19 pandemic, yet demand for chips increased, particularly in mobile, IT, and consumer electronics sectors[9]. - Future growth is expected to be driven by emerging fields such as 5G, AR/VR, IoT, AI, and autonomous driving, with overall market demand anticipated to maintain a growth trend in 2022[11]. - The increasing penetration rate of 5G mobiles and the growth in the value of individual semiconductors for 5G smartphones are expected to continuously expand the semiconductor market[13]. - The construction of 5G infrastructures is projected to boost demand for large capacity memories and storage in mobile applications, positively impacting semiconductor sales in the coming years[13]. - The demand for automobile electronics and IoT remains robust, driven by the implementation of 5G communication, which accelerates the popularization of IoT devices and increases the quantity of chips used in single automobiles[14]. - New energy vehicles are projected to achieve an annual growth of over 40% in both output and sales volumes over the next five years, significantly boosting the automobile-level semiconductor market size[15]. - The semiconductor market demand remained robust, driven by the surge in demand for semiconductor parts in emerging fields such as new energy vehicles[39]. - The semiconductor market is expected to benefit from government policies aimed at enhancing the core competence of manufacturing, sustaining strong growth momentum in the industrial electronics market[22]. Strategic Initiatives - The Group made strategic adjustments to product categories and implemented strict cost control measures to improve overall operating efficiency[9]. - The Group's strategy includes maintaining good relationships with main electronics distributors and upstream manufacturers to enrich product categories and drive growth[11]. - The Group plans to implement a diversified product portfolio strategy to expand its customer base and enhance comprehensive strength, aiming for high-quality development and considerable returns to shareholders[22]. - The Group plans to diversify its product offerings, including automotive electronic parts and passive components, to enhance business performance in various markets[69]. - The Group aims to establish a more flexible supply chain and strengthen cooperation with suppliers and customers to better respond to supply chain risks and opportunities[73]. - The Group will implement stricter financial management and refined corporate management to support greater growth and align expected revenue with current market conditions[74]. Corporate Governance - The Board consists of three executive directors and three independent non-executive directors, ensuring a balanced governance structure[80]. - The Group is committed to maintaining high standards of corporate governance and has adopted applicable code provisions[78]. - The Company has a structured approach to corporate governance, including the development and review of policies and practices related to compliance with legal and regulatory requirements[110]. - The Company has provisions for the removal of Directors by ordinary resolution at any general meeting, allowing for flexibility in governance[113]. - The Company Secretary assists in establishing meeting agendas and ensures timely distribution of materials to directors[88]. - The Board regularly reviews its delegation of responsibilities to ensure appropriateness in light of the Company's circumstances[86]. Risk Management - The Group has established a risk management and internal control system to safeguard the interests of the Company and its shareholders, with annual reviews conducted by the Audit Committee[146]. - The Audit Committee conducted a review of the effectiveness of the Group's risk management and internal control systems for the period from November 1, 2020, to October 31, 2021, with no major deficiencies noted[154]. - The Group's risk management and internal control systems are considered adequate and effective, with ongoing reviews expected annually[161]. - The highest category of residual risks is subject to oversight by the Board[155]. - The Group strictly prohibits unauthorized use of confidential or inside information[163]. Employee and Management Information - The Group employed 140 employees as of December 31, 2021, up from 128 employees in the previous year[55]. - The management team includes family members, indicating a strong internal connection within the leadership[24]. - The Group's leadership includes individuals with advanced degrees from prestigious institutions, enhancing their strategic capabilities[27]. - Each Executive Director has a service agreement with a term of three years, while Independent Non-Executive Directors (INEDs) renewed their appointments for a similar term starting from March 16, 2020[104]. Shareholder Engagement - The Company emphasizes ongoing dialogue with shareholders, particularly through Annual General Meetings (AGMs) to address inquiries[171]. - All resolutions at General Meetings are voted on by poll, with results posted on the Stock Exchange and Company websites[167]. - The Company maintains a website (www.apexace.com) for effective communication with shareholders and investors, providing access to financial and relevant information[172].
光丽科技(06036) - 2021 - 年度财报