Business Strategy and Performance - The company diversified its business strategy into the food and beverage sector to mitigate the impact of COVID-19 on its existing processed food supply business[9]. - The company established a joint venture with Rongshi Global Holdings Limited, owning 55% and 45% respectively, to participate in the food and beverage industry in Hong Kong[11]. - A new joint venture was formed with Tianjiao Limited, where the company holds a 60% stake, to operate its first restaurant in Hong Kong, with initial funding of HKD 3 million[12]. - The company anticipates a better performance in 2022 as it expects recovery from the COVID-19 pandemic, with significant growth in its restaurant business[9]. - The company is optimistic about the gradual recovery of the food and beverage industry post-COVID-19, aided by vaccination efforts[9]. - The company reported that its business has emerged from the low point caused by the pandemic, indicating a positive trend in performance[9]. - The company aims to enhance its business performance and results in the coming years, reflecting a commitment to growth and recovery[9]. - The company’s management has expressed gratitude for shareholder support during challenging times, emphasizing a focus on improved business outcomes[9]. Financial Performance - The group recorded revenue of approximately HKD 86.0 million for the year ended December 31, 2021, representing a 12.0% increase from approximately HKD 76.8 million in the previous year[20]. - Revenue from food processing and trading was approximately HKD 59.4 million, while revenue from restaurant operations was approximately HKD 26.6 million, up from HKD 11.1 million in the previous year[20]. - The group incurred a loss before tax of approximately HKD 25.6 million for the year, compared to a loss of approximately HKD 6.7 million in the previous year[21]. - Employee benefit expenses increased to approximately HKD 24.3 million from approximately HKD 18.2 million in the previous year due to an increase in restaurant staff[23]. - The group's net current assets were approximately HKD 20.5 million as of December 31, 2021, down from HKD 34.5 million in the previous year[27]. - The debt-to-equity ratio was approximately 3.0% as of December 31, 2021, compared to 2.9% in the previous year[28]. - The group reported a loss for the year ended December 31, 2021, with financial details available in the financial statements on pages 50 to 129[61]. - As of December 31, 2021, the company's distributable reserves amounted to approximately HKD 73,155,000, down from HKD 91,108,000 in 2020[63]. - The company did not recommend any final dividend for the year ended December 31, 2021[62]. Investments and Acquisitions - The group has utilized HKD 22.0 million for the acquisition of new premises and HKD 8.8 million for renovations for refrigeration equipment as planned[17]. - The group has acquired two properties and completed renovation works, exceeding the initial goal of acquiring one new factory[19]. - The company completed the sale of two properties for a total consideration of HKD 45,516,400, with individual prices of HKD 27,645,000 and HKD 17,871,400 for the respective units[39]. - Approximately HKD 22.4 million from the sale proceeds was used to repay bank borrowings, while HKD 17.5 million was allocated for settling import procurement deposits, and HKD 3.9 million was invested in expanding joint venture operations[40]. - There were no significant acquisitions, disposals, or major investments during the year ended December 31, 2021[70]. Corporate Governance - The board consists of three executive directors, three non-executive directors, and three independent non-executive directors[133]. - The audit committee held four meetings during the year ending December 31, 2021, with full attendance from all members[151]. - The external auditor, Ernst & Young, charged HKD 1,200,000 for audit services and HKD 140,000 for non-audit services for the year ending December 31, 2021[152]. - The remuneration committee held one meeting during the year ending December 31, 2021, with all members present[154]. - The board is responsible for approving and monitoring the overall strategy and policies of the group[137]. - The company has arranged appropriate liability insurance for its directors and senior officers[143]. - The board members were provided with timely and sufficient information to perform their duties effectively[145]. - The company’s directors are required to retire and seek re-election at least once every three years[131]. - The board authorized executive directors and senior management to handle daily operations, while certain significant matters still require board approval[139]. - The company’s governance report indicates no significant financial, business, familial, or other relationships among board members[134]. - The company has adopted a remuneration policy for directors based on experience, responsibilities, workload, and time commitment, with annual adjustments made by the remuneration committee and board[156]. - The Nomination Committee was established on June 5, 2017, and is responsible for recommending candidates to fill board vacancies and assessing the independence of non-executive directors[157]. - The board has implemented a diversity policy for its members, considering factors such as gender, age, cultural background, and professional experience during the selection process[160]. - The board is responsible for internal controls and risk management, ensuring that the internal control system is effective and sufficient, with annual reviews conducted[161]. - The internal audit department, composed of qualified professionals, evaluates the risk management and internal control systems annually, reporting findings to the board[162]. Environmental and Social Responsibility - The total fuel consumption of the company's truck fleet during the reporting period was 32,641 liters[178]. - The total greenhouse gas emissions from mobile source fuel (road transport) amounted to 85,297 kg of CO2[181]. - The company's annual electricity consumption was 1,218,826 kWh, resulting in 768,674.97 kg of CO2 emissions from energy indirect emissions[182]. - The company produced a total of 9,021 cubic meters of potable water and wastewater during the reporting period[184]. - The company generated 5,259.94 kg of CO2 from office paper waste and 24,936 kg from factory paper waste[186]. - The company has implemented measures to reduce emissions, such as minimizing office lighting and air conditioning during lunch hours[188]. - The company is committed to using energy-efficient lighting and appliances, opting for products rated as level one under the Hong Kong Electrical and Mechanical Services Department's mandatory energy efficiency labeling scheme[191]. - The company has a systematic approach to phasing out less environmentally friendly trucks and considers fuel efficiency when selecting new vehicles[177]. - The company emphasizes stakeholder engagement and feedback to improve its environmental, social, and governance practices[174]. - The group has implemented occupational health and safety policies, providing regular training to enhance employee awareness of operational safety[196]. - The group strictly prohibits child labor and forced labor, ensuring compliance with the Employment Ordinance and other applicable regulations[196]. - The group evaluates suppliers based on environmental and social performance, ensuring stable product supply and quality[197]. - The production facilities are designed according to HACCP principles to ensure strict adherence to food safety policies[197]. - The group has established anti-corruption guidelines and a code of conduct, prohibiting employees from accepting benefits from suppliers or customers[197]. - The group encourages employee participation in community and charitable services, receiving the Caring Company Logo for its efforts[198].
运兴泰集团(08362) - 2021 - 年度财报