Financial Performance - The Group's revenue for the year ended December 31, 2021, increased to approximately HK$73.4 million, representing a growth of approximately 63.1% compared to HK$45.0 million in 2020[18]. - The Group's net loss for the year ended December 31, 2021, rose to approximately HK$27.2 million, an increase of approximately 74.7% from HK$15.6 million in 2020[18]. - The increase in net loss was primarily due to an increase in impairment losses on goodwill of approximately HK$12.1 million and an increase in administrative expenses of approximately HK$9.4 million[18]. - Revenue from the manufacturing and trading of threads increased to approximately HK$54.5 million, up approximately 21.2% from HK$45.0 million in 2020, driven by increased sales in the PRC and overseas markets[36]. - The Group recorded a loss before income tax of approximately HK$27.2 million for the year ended December 31, 2021, an increase of 74.7% from approximately HK$15.6 million in 2020[62]. - Total comprehensive expenses attributable to the owners of the parent increased to approximately HK$25.7 million for the year ended December 31, 2021, up 123.7% from approximately HK$11.5 million in 2020[64]. - The basic and diluted loss per share for the year ended December 31, 2021, was approximately HK7.43 cents, an increase of approximately 19.5% compared to HK6.22 cents in 2020[70]. Revenue Segmentation - The Group's revenue from the interior design and decoration segment for the year ended December 31, 2021, was HK$18.1 million, reflecting the acquisition of Diamond Motto Limited[41]. - The equine services segment generated revenue of approximately HK$0.8 million, marking the establishment of this new business line during the year[40]. - The manufacturing and trading of threads accounted for 74.3% of total revenue in 2021, while interior design and decoration contributed 24.6%[35]. Administrative and Operational Costs - Administrative expenses increased by approximately HK$9.4 million, contributing to the overall rise in net loss for the year[22]. - Selling and distribution expenses increased to approximately HK$7.0 million for the year ended December 31, 2021, up from approximately HK$5.7 million in 2020, due to higher transportation and labor costs[55]. - Administrative expenses rose to approximately HK$23.4 million for the year ended December 31, 2021, representing a 67.5% increase from approximately HK$13.9 million in 2020[56]. Acquisitions and Business Expansion - The Group completed the acquisition of 100% equity interest in Diamond Motto Limited on February 9, 2021, to diversify its business focus into interior design and decoration services[24]. - The Group completed the acquisition of DML Group in February 2021, which provides interior design and decoration services, aiming to diversify its business portfolio[159]. - The Group has expanded its stallion portfolio in Australia, acquiring shares in notable horses, including Extreme Choice and Farnan, to capitalize on the booming bloodstock industry[25]. - The Group has established a sales office in Zhejiang province, which is currently in full operation[140]. Financial Position and Liquidity - The Group's cash and bank balances amounted to approximately HK$27.3 million as of December 31, 2021, compared to approximately HK$11.9 million as of December 31, 2020[73]. - The Group's net current assets increased from approximately HK$35.5 million as of December 31, 2020, to approximately HK$58.4 million as of December 31, 2021[74]. - The current ratio slightly decreased from approximately 3.8 as of December 31, 2020, to approximately 3.1 as of December 31, 2021[74]. - The Group's gearing ratio improved from approximately 4.9% as of December 31, 2020, to approximately 0.9% as of December 31, 2021[78]. Share Capital and Fundraising Activities - The Company entered into subscription agreements on June 29, 2021, to issue 6,700,000 new shares at a subscription price of HK$0.60 per share[86]. - As of December 31, 2021, the Company's issued share capital amounted to approximately HK$20.5 million, divided into 409,141,860 shares[87]. - The company completed a rights issue on June 12, 2020, issuing 400,000,000 new shares at a subscription price of HK$0.043 per share, raising approximately HK$14.6 million net proceeds[141]. - The company has engaged in multiple capital raising activities, reflecting a strategy to strengthen its financial position and support growth initiatives[147][152]. Management and Governance - Mr. Chan Yiu Tung has over 20 years of experience in tax and business advisory services, having served as an executive director at Ernst & Young and as a partner at Grant Thornton[171]. - Mr. Leung King Yue has over 20 years of experience in the financial services sector, primarily in compliance and asset management, and previously served as an executive director at DT Capital Limited[176]. - Mr. Ma Pok Man Josiah has over 15 years of experience in the horse racing and breeding industry and over 20 years in the construction industry, holding various engineering qualifications[180]. - Mr. Sung Alfred Lee Ming has over 30 years of experience in accounting and assurances and serves as the chairman of the audit committee[189]. Corporate Social Responsibility and Compliance - The Group has established an ESG report preparation team to integrate social responsibility into its strategy and decision-making[124]. - The Group maintained business integrity and dedication to environmental protection throughout the year ended December 31, 2021[125]. - The Company has complied with all relevant laws, rules, and regulations that significantly impact its operations in Hong Kong and the PRC[120].
维港育马(08377) - 2021 - 年度财报