Revenue Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 147.6 million, a decrease of about 3.1% compared to the previous year[12]. - The wine trading business recorded significant revenue growth to approximately HKD 145.3 million in 2021, up from HKD 96.6 million in 2020, despite a segment loss of approximately HKD 61.3 million[13]. - The food production business's revenue plummeted to approximately HKD 2.3 million in 2021, a decline of about 95.9% from HKD 55.8 million in 2020, resulting in a loss of approximately HKD 0.8 million[15]. - Total revenue for the group decreased by approximately HKD 4.9 million or 3.1%, from about HKD 152.5 million in 2020 to about HKD 147.6 million in 2021, primarily due to the scaling down of the food production business[23]. - The food business's new brand "Big Brother Roast" contributed only 1.6% to total revenue in 2021[15]. - The wine business achieved significant revenue growth, with sales reaching approximately HKD 145.2 million in 2021, compared to HKD 96.6 million in 2020, despite a segment loss of about HKD 61.3 million[20]. - The food business experienced a drastic decline in revenue, dropping approximately 95.9% from about HKD 55.8 million in 2020 to about HKD 2.3 million in 2021, accounting for only 1.6% of total group revenue[21]. Financial Performance - The group recorded a net loss of approximately HKD 63.2 million in 2021, compared to a loss of about HKD 29.5 million in 2020, driven by increased impairment losses and rising sales costs[31]. - Other income plummeted by approximately HKD 7.1 million or 95.4%, from about HKD 7.4 million in 2020 to about HKD 0.3 million in 2021, largely due to the absence of government subsidies received in the previous year[25]. - Employee benefits expenses significantly decreased by approximately HKD 31.9 million or 90.0%, from about HKD 34.9 million in 2020 to about HKD 3.5 million in 2021, due to workforce reductions in the food production business[26]. - The group’s administrative expenses decreased by approximately HKD 15.1 million or 62.1%, from about HKD 24.4 million in 2020 to about HKD 9.2 million in 2021, reflecting cost-saving measures following the downsizing of the food production business[29]. - The group’s financial costs decreased by approximately HKD 2.6 million or 41.8%, from about HKD 6.3 million in 2020 to about HKD 3.7 million in 2021, primarily due to the repayment of bank notes[30]. - The company reported a loss before tax of HKD 75,265,000, compared to a loss of HKD 32,373,000 in the previous year, indicating a worsening of 132.5%[195]. - The total loss for the year, including discontinued operations, was HKD 63,190,000, compared to HKD 38,048,000 in 2020, an increase of 66.2%[195]. - The company reported a total comprehensive loss of HKD 63,089,000 for the year ended December 31, 2021, compared to HKD 28,322,000 in 2020, representing an increase of 123% in losses[197]. Operational Challenges - The wine trading business faced challenges due to the COVID-19 pandemic, leading to increased competition and a need for cost control measures[13]. - The board is actively monitoring the impact of the Omicron variant on the business environment and will respond accordingly to potential financial and operational impacts[16]. - The company aims to diversify its business portfolio and expand revenue sources to improve operational and financial conditions while enhancing shareholder value[16]. - The board has decided to lease out vineyards and associated facilities to independent third parties to generate stable income amid challenging market conditions[13]. - The company is focused on actively controlling operating costs and seeking potential investment opportunities[16]. - The group faces risks from COVID-19, which has adversely affected the global business environment since January 2020[59]. - The wine industry in Hong Kong is highly competitive, with lower barriers to entry due to the zero import duty policy established in 2008[68]. Shareholder and Governance Matters - The board expressed gratitude to shareholders for their support and acknowledged the contributions of the management and staff during the year[17]. - No interim dividends were declared or paid for the year, mirroring the previous year's results[54]. - The board did not recommend the payment of a final dividend for the year, consistent with the previous year[56]. - The company confirmed compliance with the public float requirements as per GEM listing rules[122]. - All directors adhered to the trading compliance standards throughout the year, with no violations reported[120]. - The company has established a stock option plan, with details available in the financial statements[107]. - Major shareholders include Ms. Huang Wei, who holds 63,835,200 shares, accounting for 10.88% of the company's total shares[111]. - No significant related party transactions were disclosed for the year, except those mentioned in the financial statements[116]. Assets and Liabilities - The company's total assets decreased to HKD 441,645,000 in 2021 from HKD 386,010,000 in 2020, reflecting a decline of 14.4%[198]. - Current liabilities increased significantly to HKD 152,858,000 in 2021 from HKD 87,681,000 in 2020, marking a rise of 74.3%[198]. - The company's net asset value decreased to HKD 299,934,000 in 2021 from HKD 363,023,000 in 2020, a reduction of 17.4%[200]. - The company's goodwill decreased to zero in 2021 from HKD 24,742,000 in 2020, indicating a complete write-off[198]. - The company's total equity attributable to owners decreased to HKD 305,262,000 in 2021 from HKD 368,324,000 in 2020, a decline of 17.1%[200]. Audit and Compliance - The independent auditor's report confirmed that the consolidated financial statements fairly present the group's financial position as of December 31, 2021, in accordance with Hong Kong Financial Reporting Standards[174]. - The audit committee reviewed the financial reports and compliance procedures for the year, ensuring adherence to applicable accounting standards and GEM listing rules[125]. - The total fees paid to the auditor for audit services amounted to HKD 430,000, with no fees for non-audit services reported[157]. - The Audit Committee's responsibilities include overseeing risk management and internal control systems, as well as the integrity of financial statements[148]. - The company has no internal audit department due to its relatively simple structure, with the board fully responsible for assessing risks related to strategic goals[159].
百利达集团控股(08179) - 2021 - 年度财报