Financial Performance - The company's revenue increased by approximately HKD 43.6 million or 66.8% to about HKD 108.9 million for the year ended December 31, 2021, compared to approximately HKD 65.3 million in 2020[9]. - The net profit for the year ended December 31, 2021, was approximately HKD 12,804,000, compared to a net loss of approximately HKD 1,617,000 for the previous year[16]. - The company's revenue increased from approximately HKD 65,285,000 in 2020 to approximately HKD 108,948,000 in 2021, representing a growth of 66.9%[16]. - Revenue from recruitment services was approximately HKD 79,122,000, accounting for about 72.6% of total revenue, a significant increase from approximately HKD 41,357,000 or 63.4% in the previous year[31]. - Employee costs for the year ended December 31, 2021, were approximately HKD 77,698,000, accounting for about 71.3% of revenue, a decrease from 87.6% in the previous year[38]. - The company recovered from a net loss of approximately HKD 7,368,000 for the year ended December 31, 2020, to a net profit of approximately HKD 12,952,000 for the year ended December 31, 2021[42]. Revenue Sources - Revenue from recruitment services in Hong Kong rose by approximately HKD 26.8 million or 76.6% to about HKD 61.8 million for the year ended December 31, 2021, up from approximately HKD 35 million in 2020[9]. - Recruitment service revenue in mainland China surged by 171.9% to approximately HKD 17.4 million in 2021, compared to about HKD 6.4 million in 2020[9]. - Revenue from the company's outsourcing services in Hong Kong increased by 26.5%, from approximately HKD 21,176,000 in 2020 to approximately HKD 26,786,000 in 2021[20]. - Revenue from mainland China grew significantly by 171.9%, from approximately HKD 6,383,000 in 2020 to approximately HKD 17,355,000 in 2021[21]. - Revenue from dispatch and payroll services increased by approximately HKD 5,898,000 or 24.6% to about HKD 29,826,000, representing about 27.4% of total revenue[33]. Business Strategy and Outlook - The company aims to capitalize on the strong growth in mainland China and expand its business beyond the Greater Bay Area in 2022[11]. - The company will seek business opportunities in human resources-related services to maximize synergy among internal teams[11]. - The company plans to maintain a cautiously optimistic approach in 2022, considering the ongoing impact of COVID-19 variants[11]. - The company is optimistic about its performance in 2022, despite potential challenges from the Omicron variant, and expects to continue benefiting from the growth in mainland China[24]. - The company aims to enhance its team quality and brand recognition through structured training and marketing efforts[25]. Operational Costs and Expenses - Internal staff costs increased by approximately HKD 14.7 million or 41.6% to about HKD 50 million for the year ended December 31, 2021, from approximately HKD 35.3 million in 2020[10]. - Other expenses and losses rose by approximately HKD 1,333,000 to about HKD 16,226,000, mainly due to business expansion costs in Hong Kong and mainland China[39]. - Internal employee costs increased by approximately HKD 14,762,000 or 41.8%, primarily due to business expansion in mainland China and Hong Kong[38]. Corporate Governance and Compliance - The company has adopted a share option scheme since September 13, 2018, with no options granted, exercised, canceled, or lapsed since its adoption[104]. - The company has maintained at least 25% of its issued shares as sufficient public float as of December 31, 2021[137]. - The company adhered to the GEM Listing Rules and Corporate Governance Code, with no significant deviations reported for the year ending December 31, 2021[149]. - The independent non-executive directors confirmed their independence according to GEM Listing Rules, ensuring compliance with the independence guidelines[154]. - The company has implemented appropriate insurance arrangements for potential legal claims against directors and senior management[158]. Risk Management - The company acknowledges significant operational risks, including reliance on key management personnel and potential labor shortages impacting financial performance[85]. - The company has identified and assessed significant risks based on management's experience in the business environment, with a focus on liquidity, fraud, financial reporting, operational, and compliance risks[181]. - As of December 31, 2021, the company did not have an internal audit function but has engaged an external professional firm for annual reviews of its risk management and internal control systems[181]. Shareholder Information - The company did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[44]. - The company’s distributable reserves as of December 31, 2021, amounted to approximately HKD 2,327,000, an increase from HKD 2,200,000 in 2020[96]. - The company made charitable donations totaling HKD 140,000 for the year ended December 31, 2021, compared to HKD 2,000 in the previous year[94]. Liquidity and Financial Position - The company maintained a strong liquidity position and prudently managed cash flow[27]. - As of December 31, 2021, the company had cash and bank balances of approximately HKD 42,767,000, an increase from approximately HKD 32,567,000 in the previous year[45]. - The current ratio as of December 31, 2021, was approximately 3.4 times, down from approximately 5.0 times in 2020[45]. - The debt-to-equity ratio increased to 22.3% as of December 31, 2021, compared to 4.1% in 2020, primarily due to the utilization of bank overdraft facilities[46].
高奥士国际(08042) - 2021 - 年度财报