Financial Performance - The company's revenue increased by 13.3% to approximately RMB 137.0 million for the year ended December 31, 2021, compared to RMB 120.9 million in 2020[10]. - Gross profit rose by 14.5% to approximately RMB 22.9 million, with a stable gross margin of about 16.7%[10]. - The company recorded a loss of approximately RMB 3.7 million for the year, primarily due to increased R&D expenses to maintain competitiveness[10]. - Revenue from plastic component manufacturing surged by 47.8% to approximately RMB 53.5 million, driven by increased sales to the company's largest customer[15]. - Revenue from stamping component manufacturing increased by 1.6% to approximately RMB 32.5 million, remaining stable[14]. - Revenue from spray-painted outer component processing decreased by 14.3% to approximately RMB 13.8 million, attributed to reduced sales of washing machine and refrigerator components[16]. - Revenue from spray-plastic outer component processing grew by 1.9% to approximately RMB 37.2 million, indicating stable sales[17]. - Revenue increased by approximately 14.5% from RMB 120.85 million in 2020 to RMB 136.98 million in 2021, with a gross profit of RMB 22.93 million and a stable gross margin of 16.7%[19]. - Other income decreased by 25.0% from RMB 2.0 million in 2020 to RMB 1.5 million in 2021, primarily due to a reduction in net sales of molds and leftover products[20]. - Selling and distribution expenses rose by 35.6% from RMB 4.5 million in 2020 to RMB 6.1 million in 2021, mainly due to increased costs for sales and marketing personnel[21]. - Administrative expenses increased by 21.9% from RMB 16.0 million in 2020 to RMB 19.5 million in 2021, primarily due to higher R&D costs[22]. - Financial costs increased by 24.0% from RMB 2.5 million in 2020 to RMB 3.1 million in 2021, mainly due to increased interest on other borrowings[23]. - The company recorded a loss attributable to owners of approximately RMB 3.7 million in 2021, compared to a loss of RMB 1.1 million in 2020, primarily due to increased R&D costs[25]. Business Strategy and Operations - The company plans to explore new business opportunities to diversify its operations in 2022[11]. - Cost control measures are expected to lower procurement costs for common raw materials and improve production efficiency[12]. - The company aims to enhance customer service by refining on-site tracking and response times[12]. - The company plans to expand its market share in the white goods steel and plastic components industry in China, extending the timeline for the use of funds until June 30, 2023[34]. - The company plans to enhance the production capacity of stamping components through the acquisition of automated rolling production lines and stamping machines, with an expenditure of HKD 4.1 million, expected to be completed by June 2023[36]. - An additional HKD 4.2 million is allocated for acquiring a new processing line to increase the capacity for plastic-coated peripheral components, also expected to be completed by June 2023[36]. - The company has earmarked HKD 2.7 million for acquiring a new processing line to boost the capacity for spray-painted components, with completion anticipated by June 2023[36]. - The company has bank loans totaling RMB 3,000,000 at an interest rate of 3.65% for purchasing raw materials, and RMB 2,000,000 at an interest rate of 4.00% for general working capital[108]. Customer and Supplier Relationships - For the fiscal year ending December 31, 2021, the company reported revenue from a major customer of approximately RMB 57.6 million, accounting for 42.0% of total revenue[65]. - The company has a significant reliance on one customer, with revenues from this customer increasing from RMB 30.0 million in 2019 to RMB 57.6 million in 2021[65]. - Approximately 90.7% of total revenue for the fiscal year ending December 31, 2021, came from the company's top five customers[68]. - The group's procurement from its largest and five largest suppliers accounted for approximately 16.6% and 47.8% of total procurement, respectively[69]. - The company maintained stable relationships with approximately 14 major suppliers, down from 16 in 2020, ensuring timely delivery and reduced transportation costs[198]. - The company maintains relationships with approximately three different suppliers for each major raw material[199]. - Suppliers are evaluated based on factors such as technical strength, product quality, and pricing[199]. - The company assesses suppliers' compliance with environmental and social standards, including prohibiting child labor and ensuring safe working conditions[199]. Environmental, Social, and Governance (ESG) Initiatives - The board is responsible for overseeing the company's environmental, social, and governance (ESG) issues and progress[133]. - The company has set short-term and long-term sustainable development goals, including emission reduction targets[134]. - The company emphasizes the importance of sustainable development as a long-term strategic priority[133]. - The group has obtained ISO 14001:2015 environmental management system certification during the reporting period[149]. - The group aims to reduce resource consumption, including reducing emissions of waste gases, greenhouse gases, and wastewater[152]. - The group complies with all relevant environmental laws and regulations in China, with no confirmed violations during the reporting period[151]. - The group emphasizes the importance of transparency to build investor confidence, highlighting sustainable achievements in the report[146]. - The group has established an Environmental Health and Safety Working Group to oversee environmental policies and report to the board semi-annually[140]. - The group identifies and assesses environmental, social, and governance risks, including business ethics and climate change risks[142]. - The group focuses on stakeholder communication to understand concerns and create a friendly work environment[140]. - The group integrates sustainable development concepts into daily operations to mitigate environmental impacts[149]. - The group has implemented various measures to reduce pollution and resource consumption in its manufacturing processes[149]. Employee and Workforce Management - The total employee cost and related expenses for the year ended December 31, 2021, were approximately RMB 26.0 million, an increase from RMB 22.8 million in 2020[40]. - As of December 31, 2021, the group employed 260 full-time employees, down from 291 in 2020[40]. - The employee count as of December 31, 2021, was 260, a decrease from 291 in 2020, with a turnover rate of 30.8% in 2021 compared to 35.7% in 2020[182][183]. - The proportion of male employees decreased from 44% in 2020 to 42% in 2021, while female employees increased from 56% to 58%[182]. - Employee training and awareness programs are in place to promote environmental consciousness and compliance with labor laws[181]. - The company reported zero work-related fatalities and significant injuries during the reporting period[187]. - The number of work-related injuries decreased from 26 in 2020 to 14 in 2021, with lost workdays due to injuries increasing from 52 to 144[188]. - Employee training participation rates were 69% for male employees and 63% for female employees in 2021, down from 85% and 113% respectively in 2020[193]. - Average training hours per employee decreased for males from 1.68 hours in 2020 to 0.63 hours in 2021, and for females from 1.26 hours to 0.67 hours[195]. Compliance and Governance - The company has been actively managing its financial governance and corporate secretarial matters since the appointment of its CFO in March 2018[52]. - The group did not experience any customer or supplier loss during the year ended December 31, 2021, and received no complaints[70]. - The group maintained compliance with relevant laws and regulations during the year ended December 31, 2021[72]. - The independent auditor for the group’s consolidated financial statements is KPMG, who will be re-elected at the upcoming annual general meeting[130]. - The company confirmed the independence of its independent non-executive directors according to GEM listing rules[88]. - The company has confirmed that all parties to the non-competition agreement have complied with its terms since the year ended December 31, 2021[99]. - The independent non-executive directors reviewed compliance with the non-competition agreement and found no violations by any parties[101]. - The company has not made any changes to the terms of the non-competition agreement since its listing date[101]. - The company has fully exempted ongoing related party transactions from independent shareholder approval and annual review requirements under GEM Listing Rules[104]. - The company has not engaged in any related party transactions that require independent shareholder approval, annual review, or disclosure under GEM Listing Rules Chapter 20[106]. Waste Management and Resource Consumption - The total hazardous waste generated in 2021 was 8.85 tons, an increase of 32.8% from 6.67 tons in 2020[174]. - The total non-hazardous waste remained constant at 0.02 tons in both 2021 and 2020, resulting in a total waste generation of 8.87 tons in 2021 compared to 6.79 tons in 2020[174]. - The company aims to control waste emissions to below 0.13 tons for every 100,000 products produced[172]. - Paper packaging material usage decreased significantly from 86.04 tons in 2020 to 4.46 tons in 2021 due to reduced spray painting and order volumes[176]. - The company aims to maintain a "green factory" initiative to enhance resource efficiency and reduce environmental impact[163]. - The company has established a hazardous waste storage facility to temporarily hold solid hazardous waste generated during production[172]. - The hazardous waste disposal is managed by a qualified third-party organization, ensuring compliance with environmental regulations[172]. - The company has implemented measures to ensure wastewater discharge meets local standards, with a target and actual wastewater emission control of 1.3 tons per 100,000 products[156].
宝申控股(08151) - 2021 - 年度财报