Financial Performance - Revenue increased by 3.9% to HKD 413,079,000 in 2021, despite challenges from the COVID-19 pandemic and rising freight costs[8] - The company incurred a loss of HKD 5,762,000 from continuing operations in 2021, compared to a profit of HKD 3,029,000 in 2020[8] - The total contract value achieved in the year was HKD 120,500,000, representing a year-on-year growth of 61.4% compared to 2020[25] - TTSA recorded a revenue increase of 4.35% to HKD 184,824,000, with a net profit of HKD 4,521,000, compared to a net loss of HKD 25,200,000 in the previous year[28] - The group achieved a total contract value of HKD 420,000,000, a 7.2% increase from 2020, with revenue rising by 3.91% to HKD 413,079,000[33] - Gross profit decreased by 2.98% to HKD 97,549,000, resulting in a gross margin of 23.62%, down 1.67 percentage points from the previous year[33] - The group recorded a loss of HKD 8,431,000 for the year, compared to a profit of HKD 3,728,000 in 2020, largely due to weak gross margins and increased shipping costs[35] Market Performance - Business in mainland China grew by over 60% in 2021, driven by customer demand for reliable high-performance software-defined WAN and data network infrastructure[10] - Revenue from mainland China grew by 64.61% year-on-year, contributing to a total contract value of HKD 420 million, an increase of 7.2% compared to 2020[19] - Total contract value in Macau decreased by 3.4% to approximately HKD 251 million due to the impact of the pandemic[20] - Contracts obtained from the Macau government and other key vertical markets amounted to HKD 204 million, representing a year-on-year growth of 7.4%[23] - Contracts in the gaming sector dropped over 30% year-on-year, totaling approximately HKD 48 million, which is only 20% of the value obtained in 2019[22] - In Hong Kong, the total contract value for data network and software-defined wide area network infrastructure decreased by 15.3% to approximately HKD 48 million[24] Strategic Initiatives - The company plans to reduce its stake in the Taisun Group due to its net debt situation and integrate the Zhuhai business into the subsidiary in Hengqin[9] - The company is focusing on enhancing operational efficiency and cost-effectiveness through business streamlining[9] - Investment in the subsidiary Wanxun was increased to take on more responsibilities, including support for establishing a subsidiary in Hengqin[9] - The company continues to seek the latest technologies for future IT applications, particularly those currently unfeasible due to infrastructure limitations[6] - The company is actively testing high-performance 400G Ethernet in collaboration with a network provider, aiming for the next major Ethernet speed for data center interconnectivity[10] Corporate Governance - The board proposed a final dividend of HKD 0.01 per share, marking the eighth consecutive year of dividend payments[8] - The company continues to focus on maintaining a prudent financial principle while providing innovative solutions and excellent service[18] - The company aims to be a trusted partner for customers and suppliers, emphasizing the importance of environmental, social, and governance factors[18] - The board emphasized the importance of corporate governance, noting compliance with the code of conduct throughout the year[70] - Management indicated that quarterly updates will be provided to the board to ensure timely decision-making and oversight[70] - The board of directors held five meetings during the year[74] - All independent non-executive directors confirmed their independence according to the GEM Listing Rules[108] - The remuneration committee held one meeting during the year to evaluate the performance of executive directors and recommend bonuses[116] - The nomination committee also held one meeting during the year to identify and recommend suitable candidates for the board[117] - The company has adopted the GEM Listing Rules regarding the conduct of securities transactions by directors[72] - The company approved interim and final dividends during the year[78] - The company confirmed no violations of trading standards by directors[73] - The company has established corporate governance policies and responsibilities for the board[111] Environmental and Social Responsibility - The company aims to integrate environmental, social, and governance elements into its business strategies for sustainable growth[143] - The company generated approximately 130 tons of CO2 emissions annually from its largest office in Macau, while the Hong Kong office produced about 50 tons[154] - The company aims to maintain its CO2 emissions at current levels, focusing on energy consumption during office hours[163] - The packaging material weight for each device ranges from 0.7 kg to 4 kg, with total waste generated annually being less than 30 tons[161] - The company has implemented a waste management strategy that includes the responsible disposal of solid waste and the donation of surplus materials to charities[153] - The company does not produce any hazardous waste, and therefore, related performance indicators are not applicable[159] - The company emphasizes the importance of resource usage, particularly in terms of electricity, water, and fuel consumption in its offices[166] - The company has a fleet of approximately ten vehicles, which are regularly inspected to ensure compliance with environmental regulations[150] - The company supports the "Three Rs" waste hierarchy: Reduce, Reuse, and Recycle, to minimize waste generation[149] - The company has not set specific targets for reducing packaging materials, as it relies on suppliers for packaging design[165] - The company continuously monitors regulatory developments to ensure compliance with environmental standards[154] Workforce and Employee Relations - The total workforce of the company as of December 31, 2021, is 155 employees, with 119 males and 36 females[182] - The employee turnover rate for the year is 14.63%, with a breakdown of 14.90% for males and 13.70% for females[182] - The company employs 154 full-time staff and 1 contract employee, with 14 employees under 30 years old, 90 between 30 and 50, and 51 over 50[182] - The company has implemented policies to mitigate risks associated with extreme weather, including close monitoring of weather forecasts and communication with suppliers and customers[173] - The company encourages employees to practice energy-saving measures, such as turning off lights and equipment when not in use[171] - The company provides competitive employment benefits, including discretionary bonuses, housing allowances, and medical insurance[179] - The company has a strong commitment to diversity and non-discrimination in its hiring practices[176] - The company has not experienced any climate-related incidents that could impact its operations[173] - The company emphasizes internal recruitment for new positions before considering external candidates[179] - The company has maintained a record of zero work-related fatalities over the past three years, including the current year[191] - There have been no lost workdays due to work-related injuries reported[191] - The company emphasizes the importance of employee training and development to adapt to emerging technologies and meet changing customer demands[192] - Internal and on-the-job training programs are implemented to enhance employee skills and knowledge across various support teams[193] - The company has established long-term training and development strategies to ensure workforce sustainability[194] - Gender distribution within the company shows 32.77% male employees and 5.56% female employees[199][200]
爱达利网络(08033) - 2021 - 年度财报