Financial Performance - The company reported a revenue growth of 16.7% and a net profit attributable to shareholders growth of 54.5% in 2021[8]. - Total revenue increased by approximately 16.7% from HKD 487.6 million in FY2020 to HKD 569.0 million in FY2021[15]. - Profit attributable to shareholders rose to approximately HKD 17.3 million in FY2021, compared to HKD 11.2 million in FY2020[14]. - Gross profit increased by approximately 18.5% from HKD 64.7 million in FY2020 to HKD 76.7 million in FY2021, with a slight increase in gross margin from 13.3% to 13.5%[18]. - Net profit for the year was HKD 18,113,000, reflecting a growth of 50.55% from HKD 12,020,000 in 2020[193]. - Basic earnings per share for 2021 were HKD 2.89, compared to HKD 1.86 in 2020, marking a 55.38% increase[193]. - The company achieved a net other comprehensive income of HKD 17,907,000, up from HKD 11,456,000 in 2020, representing a 56.67% increase[193]. Revenue Sources - The contribution of freight forwarding revenue decreased from 70% a few years ago to 51.8% in 2021, while logistics services increased to 16.8% and e-commerce trade and fulfillment rose to 31.3%[8]. - Revenue from sea freight forwarding services increased by approximately HKD 34.3 million, while e-commerce fulfillment services revenue rose by approximately HKD 77.4 million in FY2021[15]. - The logistics service segment generated revenue of HKD 95.8 million in FY2021, down from HKD 105.3 million in FY2020[17]. Cost and Expenses - Sales costs increased by approximately 16.4% from HKD 422.9 million in FY2020 to HKD 492.2 million in FY2021, primarily due to increased sea freight costs of approximately HKD 31.2 million and e-commerce fulfillment service costs of approximately HKD 77.1 million[18]. - Administrative expenses increased by approximately 38.3% from HKD 42.3 million in FY2020 to HKD 58.5 million in FY2021, primarily due to higher senior management costs and IT-related expenses[22]. - The company reported a decrease in trade receivables impairment losses to HKD 2,175,000 from HKD 11,320,000, indicating improved credit quality[193]. Investments and Development - The company is developing promising projects in emerging technologies, including the Tianyi Shen Water System and cold chain logistics[9]. - The company has invested in proprietary conversion and packaging facilities for the 8035 Tianyi disinfectant water, which was launched in Spring 2022, contributing to revenue generation[33]. - The company is actively procuring technology for cold chain logistics solutions, responding to high demand for temperature-controlled storage and transportation[33]. Governance and Compliance - The company has adopted the principles and code provisions of the Corporate Governance Code as per GEM Listing Rules Appendix 15, ensuring proper regulation of its operations and decision-making processes[57]. - The company did not comply with code provision C.2.1, as the roles of Chairman and CEO were held by the same individual until April 6, 2022, when they were separated[58]. - The company has established an Audit Committee, Nomination Committee, and Remuneration Committee to enhance governance and oversight[57]. - The board composition includes eight directors: four executive directors, one non-executive director, and three independent non-executive directors, ensuring a balance of skills and experience[64]. Shareholder and Market Information - The company has set up multiple channels for communication with shareholders and investors, including annual reports and a dedicated website[98]. - The company maintained the minimum public float required under GEM listing rules throughout the fiscal year 2021[123]. - The company has a share option plan with a validity period of ten years from the date of adoption[138]. Risk Management - The company emphasizes risk management practices to mitigate operational and financial risks, including customer retention and maintaining stable supplier relationships[110]. - The company is closely monitoring the impact of the COVID-19 pandemic on its financial performance, citing potential risks such as tightened preventive measures and supply chain challenges[173]. Financial Position - As of December 31, 2021, the current ratio improved to 0.68 from 0.64 in the previous year, with cash and bank balances increasing to approximately HKD 14.9 million from HKD 8.2 million[25]. - The debt-to-equity ratio decreased to approximately 175.1% as of December 31, 2021, down from 249.3% in 2020, indicating improved financial stability[25]. - The group reported a net current liability of approximately HKD 80,904,000 as of December 31, 2021, indicating significant uncertainty regarding the company's ability to continue as a going concern[178]. Employee and Operational Capacity - The company employed 188 full-time employees as of December 31, 2021, an increase from 172 in the previous year, reflecting growth in operational capacity[36]. - The remuneration policy for employees and executives is based on performance, qualifications, and market levels, with annual reviews conducted by the remuneration committee[159].
骏高控股(08035) - 2021 - 年度财报