Financial Performance - For the fiscal year ended December 31, 2021, the company reported revenue of HKD 1,385,113,000, representing a 16.6% increase from HKD 1,187,440,000 in 2020[6]. - Gross profit for the same period was HKD 297,101,000, up 23.7% from HKD 240,161,000 in the previous year[6]. - Net profit for the year was HKD 94,419,000, a slight decrease of 1.7% compared to HKD 96,085,000 in 2020[6]. - Basic and diluted earnings per share were HKD 15.7, with a total dividend of HKD 3.5 per share, including a final dividend of HKD 3[6]. - Total assets as of December 31, 2021, were HKD 1,610,090,000, an increase of 30.5% from HKD 1,233,858,000 in 2020[6]. - The company’s total borrowings amounted to HKD 258,234,000, with a debt-to-asset ratio of 0.16[6]. - The net asset value per share was HKD 1.67, with a return on equity of 9.4%[6]. - Revenue from watch bands and fashion accessories surged by 78.0% and 55.6%, reaching HKD 376,687,000 and HKD 79,765,000 respectively[16][19]. - Revenue from mobile phone frames and parts decreased by 12.8% to HKD 567,465,000, down from HKD 650,760,000 in the previous year[17]. - Revenue from smart wearable device frames and parts rose by 31.9% to HKD 361,196,000, compared to HKD 273,801,000 in 2020[18]. - Gross profit increased by 23.7% to HKD 297,101,000, with a gross profit margin of 21.4%, up from 20.2% in the previous year[22]. - Net profit for the year decreased by 1.7% to HKD 94,419,000, with basic earnings per share falling by 1.9% to HKD 0.157[22]. Operational Strategy - The company aims to enhance product quality and customer service to meet market demands[10]. - Future outlook includes potential market expansion and new product development strategies[10]. - The company plans to maintain competitive pricing while ensuring timely delivery of products[10]. - The company plans to complete the construction of a new factory building in phases starting in early 2023, with a total loan of HKD 150,000,000 secured for this project[14]. - The company maintains confidence in the future development of its smart wearable device segment despite ongoing chip shortages expected to continue into 2022[14]. - The company is committed to improving operational efficiency and resource utilization to enhance profitability and achieve sustainable growth[45]. Financial Position and Assets - Total direct material costs were HKD 591,960,000, up from HKD 540,837,000, while direct labor costs rose to HKD 363,624,000 from HKD 298,054,000[29]. - Inventory balance increased by 14.1% to HKD 134,670,000, driven by an increase in work-in-progress[33]. - Trade receivables rose to HKD 358,855,000 from HKD 251,950,000, with a turnover period of 80.5 days[34]. - Trade payables increased to HKD 251,627,000 from HKD 193,759,000, with a turnover period of 74.7 days[35]. - Net current assets were HKD 306,373,000, up from HKD 269,173,000, with cash and bank balances of HKD 207,002,000[38]. - Total bank borrowings increased significantly to HKD 258,234,000 from HKD 72,493,000, with 49.2% at floating rates[39]. - The company's capital expenditure commitments amounted to HKD 30,100,000, up from HKD 21,988,000, primarily related to property and equipment acquisitions[41]. - Cash and cash equivalents at year-end were HKD 207,002 thousand, up from HKD 174,638 thousand in the previous year, showing improved liquidity[186]. - The company’s total equity rose to HKD 1,001,099 thousand, compared to HKD 899,850 thousand in 2020, reflecting a strong capital position[186]. Shareholder Information - As of December 31, 2021, the reserves available for distribution to shareholders were approximately HKD 338,032,000, down from HKD 361,847,000 in 2020[79]. - The board proposed a final dividend of HKD 0.03 per ordinary share for the year ended December 31, 2021, totaling approximately HKD 18,000,000, the same as in 2020[78]. - The group’s largest and five largest customers accounted for approximately 25.7% and 74.5% of total revenue for the year ended December 31, 2021, respectively, compared to 18.1% and 65.2% in 2020[70]. - The company has adopted a dividend policy targeting a payout ratio of at least 40% of the profit attributable to shareholders for each financial year[80]. - The company has a strong ownership structure with significant control held by its directors and their related entities[105]. Governance and Compliance - The board of directors consists of four independent non-executive directors, accounting for one-third of the board[90]. - The company received annual confirmation letters regarding the independence of its directors as per the listing rules[90]. - The company has a non-competition agreement in place with its controlling shareholders, ensuring compliance throughout the year[91]. - The company has adopted corporate governance policies in line with the corporate governance code and has complied with all applicable provisions[129]. - The board consists of ten members, including six executive directors and four independent non-executive directors, ensuring a balanced governance structure[133]. - The independent non-executive directors represent at least one-third of the board, meeting the independence criteria set forth in the listing rules[139]. - The company has implemented a robust internal control system and risk management procedures[136]. - The audit committee assists the board in fulfilling its responsibilities regarding risk management and internal control systems, reviewing their effectiveness at least annually[155]. Risk Management - The financial condition, operating performance, and business outlook of the group may be affected by various identified risks and uncertainties[68]. - The group has maintained a prudent treasury policy, including holding cash in Hong Kong, to manage risks associated with its operations in China[71]. - The risk management and internal control systems are designed to manage risks rather than eliminate them, providing reasonable assurance against significant misstatements or losses[153]. - The board of directors has reviewed the effectiveness of the group's risk management and internal control systems and considers them effective and adequate[158]. Audit and Financial Reporting - The company has appointed Deloitte as its independent auditor for the fiscal year[127]. - The independent auditor's fees for the year ending December 31, 2021, amounted to HKD 1,530,000 for audit services and HKD 330,000 for non-audit services[163]. - The financial statements for the year ending December 31, 2021, have been prepared in accordance with Hong Kong Financial Reporting Standards[165]. - The group has applied the revised Hong Kong Financial Reporting Standards for the first time, effective from January 1, 2021, with no significant impact on the financial statements[195].
盈利时(06838) - 2021 - 年度财报