Company Overview - CircuTech International Holdings Limited is incorporated in the Cayman Islands and listed on the GEM of the Hong Kong Stock Exchange, which is designed for small and mid-sized companies[1][3]. - The company acknowledges the higher investment risks associated with companies listed on GEM compared to those on the Main Board[2][4]. - The registered office is located in Grand Cayman, Cayman Islands, with a principal place of business in Hong Kong[13]. - The principal bankers for the company include Hang Seng Bank Limited and Citibank N.A.[13]. - The company’s stock code is 8051, indicating its listing on the GEM[13]. - The audit is conducted by BDO Limited, a registered public interest entity auditor[13]. Financial Performance - The Group recorded revenue of approximately HK$349.9 million for the year ended December 31, 2021, representing a decrease of approximately 6.2% compared to the previous year[21]. - Revenue from sales and distribution of IT products accounted for approximately 98.6% of total revenue, decreasing from HK$372,643,000 in 2020 to HK$345,129,000 in 2021[30]. - Revenue from repairs and service support increased significantly from approximately HK$0.3 million in 2020 to approximately HK$4.7 million in 2021, driven by expanded service support for electronic products[32]. - The Group's revenue for the year ended December 31, 2021, was approximately HK$349,870,000, a decrease from HK$372,959,000 in 2020[31]. - Gross profit decreased by approximately HK$5,356,000 to approximately HK$25,548,000 for the year ended December 31, 2021, with a gross profit margin declining from approximately 8.3% to approximately 7.3%[53]. - Net profit attributable to the Shareholders decreased by approximately HK$6,765,000 to approximately HK$2,232,000, resulting in a net profit margin of approximately 0.6% for the year[53]. - Administrative expenses decreased by approximately 15.6% to approximately HK$14,870,000 due to reduced professional fees and foreign exchange gains[53]. - The Group's total revenue for the year ended 31 December 2021 was approximately HK$349,870,000, a decrease of about 6.2% compared to approximately HK$372,959,000 for the year ended 31 December 2020[51]. Business Strategy and Development - The Group plans to focus resources on developing its repairs and service support segment, including setting up repair centers for renowned IT brands[22]. - The Group is exploring investment opportunities in the "Circular Economy" business segment, including after-sales services and recycling of third-party IT products[22]. - The Group developed an online trade-in platform, which has seen steady growth in trade-in volume, partially offsetting revenue declines from refurbished and end-of-life products[24]. - A new repair center commenced operations, providing end-to-end repair services, including reverse logistics and customer delivery[26]. - The Group aims to improve efficiency and achieve higher profit margins by continuously reviewing and re-evaluating its business model[24]. - The Group's management expertise and affiliation with Foxconn Technology Group provide competitive advantages in the global distribution market[24]. Market Performance - The United States market contributed approximately 31.6% of total revenue in 2021, surpassing Hong Kong's contribution of approximately 30.3%[37]. - The Taiwan market's contribution to total revenue increased to approximately 20.9% in 2021, up from 4.4% in 2020[37]. - The Group launched several new products, including MP Automatic License Plate Recognition Camera and new AI cameras, to enhance its product portfolio and market competitiveness[40]. Risk Management - The Group's insurance coverage may be insufficient to cover all operational risks, which could adversely affect its financial performance[48]. - The Group will closely monitor the impacts of COVID-19 on its financial position and operating results[51]. - The Group is exposed to foreign exchange risk primarily with respect to USD and Euro, with no foreign currency derivative financial instruments entered into for the year ended 31 December 2021[69]. - The management has a policy to manage foreign exchange risk by performing regular reviews of the Group's net foreign exchange exposures[69]. Corporate Governance - The Board of Directors consists of 8 members, including 4 executive directors, 1 non-executive director, and 3 independent non-executive directors[146]. - The Company has complied with the required code provisions set out in the Corporate Governance Code contained in Appendix 15 to the GEM Listing Rules during the year ended December 31, 2021[169]. - The Company aims to achieve board diversity based on measurable criteria, including gender, age, and professional qualifications[150]. - The Company has established good corporate governance practices to enhance accountability and protect shareholder rights[169]. - The Audit Committee consists of independent non-executive Directors and meets four times a year, with two meetings held without the presence of executive Directors[175]. Human Resources - The Group employed 20 full-time employees in Hong Kong and 15 in the People's Republic of China and overseas as of December 31, 2021[61]. - The Group's employee costs amounted to approximately HK$13,408,000 for the year ended December 31, 2021, compared to HK$13,719,000 in 2020[61]. Shareholder Information - The Company does not have a fixed dividend policy and did not recommend the payment of a dividend for the year ended December 31, 2021[55]. - The distributable reserves of the Company at December 31, 2021, totaled HK$108,417,000, down from HK$111,263,000 in 2020[100]. - As of December 31, 2021, Foxconn (Far East) Limited holds 11,853,524 shares, representing approximately 50.58% of the issued share capital of the Company[114]. Internal Control and Compliance - The Company has adopted written terms of reference for its committees in compliance with the Corporate Governance Code as set out in the GEM Listing Rules[174][180]. - The Board is responsible for the implementation and review of the internal control system, ensuring its effectiveness and efficiency[184]. - The Group has established a series of internal control policies aimed at achieving effective operations and reliable financial reporting[184]. - The Company has established procedures for handling and disseminating inside information, adhering to GEM Listing Rules[195].
讯智海(08051) - 2021 - 年度财报