Financial Performance - For the year ended December 31, 2021, the group's revenue was approximately HKD 281.8 million, stable compared to HKD 278.9 million for the year ended December 31, 2020[10]. - The gross profit for the year ended December 31, 2021, was approximately HKD 54.2 million, a significant improvement from a gross loss of approximately HKD 4.4 million for the year ended December 31, 2020[10]. - The net loss for the year ended December 31, 2021, was approximately HKD 83.1 million, reduced from a net loss of approximately HKD 100.8 million for the year ended December 31, 2020[10]. - The company sold part of its Hong Kong property for HKD 13.5 million to improve cash flow and reduce the debt-to-asset ratio[40]. - The company recorded a net loss of approximately HKD 83.1 million for the year ended December 31, 2021, an improvement from a net loss of HKD 100.8 million in 2020, primarily due to an increase in gross profit[52]. - As of December 31, 2021, the company's current liabilities exceeded current assets by approximately HKD 72.6 million, compared to a net current asset of approximately HKD 7.3 million in 2020[54]. - The company's total bank borrowings, overdrafts, and lease liabilities amounted to approximately HKD 161.3 million as of December 31, 2021, down from approximately HKD 200.2 million in 2020[54]. - The company had cash and cash equivalents of approximately HKD 2.0 million as of December 31, 2021, compared to HKD 9.1 million in 2020[62]. - Capital expenditures for the year ended December 31, 2021, totaled approximately HKD 197.4 million, a decrease from HKD 221.0 million in 2020[59]. - The company had no significant investments or major acquisitions or disposals of subsidiaries, associates, or joint ventures during the year ended December 31, 2021[60]. Corporate Governance - The board of directors did not recommend the payment of a final dividend for the year ended December 31, 2021, consistent with the previous year[10]. - The board includes independent non-executive directors with extensive experience in finance and corporate governance, enhancing the group's oversight capabilities[27][28][30][31]. - The company has not appointed any directors in public listed companies in the three years preceding the report date, indicating a focus on internal management[22][25][26]. - The company is committed to maintaining strong corporate governance practices, as evidenced by the qualifications of its board members[27][28]. - The chairman and CEO roles are held by the same individual, Mr. Lin, which the board believes is in the best interest of the company[75]. - The board held four meetings during the reporting period, with all directors attending all meetings[85]. - The company has appointed three independent non-executive directors, ensuring independent judgment within the board[86]. - The audit committee held four meetings during the reporting period, with all members attending all meetings[98]. - The company has established a risk management committee to assist the board in overseeing compliance with relevant laws and regulations[106]. - The board confirmed its responsibility for the effectiveness of the risk management and internal control systems, which aim to manage rather than eliminate risks[110]. Management and Strategy - The company plans to implement cost control measures to maintain its business amid ongoing economic uncertainties due to COVID-19 and rising paper costs[14]. - Future strategies include improving equipment and increasing automation, expanding the customer base, and enhancing sales and marketing coverage[14]. - The company expresses cautious optimism for improved performance in 2022 due to vaccination efforts and global cooperation against the pandemic[17]. - The group aims to expand its operations in the printing industry, leveraging the management's extensive experience and established relationships in the market[23]. - The financial management team is well-qualified, with members holding advanced degrees and professional certifications in accounting and finance[26][30]. - The company has a history of strategic management and operational oversight, which is critical for navigating market challenges and opportunities[21][23]. Environmental and Social Responsibility - The company is committed to promoting sustainable development and social responsibility, which is crucial for creating long-term value for stakeholders[125]. - The environmental, social, and governance report was prepared in accordance with the GEM Listing Rules, providing insights into the company's business activities[126]. - The impact of COVID-19 on the company's production and business activities during the 2021 financial year was acknowledged[126]. - The company has established various channels for stakeholders to express their opinions on sustainable development performance and future strategies[126]. - The total greenhouse gas emissions for the fiscal year 2021 amounted to 8,576.53 tons of CO2 equivalent, a slight increase from 6,396.18 tons in 2020, with direct emissions decreasing from 36.65 tons to 26.83 tons[134]. - The company achieved a 9.82% reduction in the total amount of purchased paper materials, decreasing from 10,753.09 tons in 2020 to 9,697.17 tons in 2021[139]. - The total waste collected in the Shenzhen factory for fiscal year 2021 was 3,094.12 tons, representing a 45.09% increase from 2,132.50 tons in 2020[141]. - The company produced 3.80 tons of hazardous waste in fiscal year 2021, which is a 12.76% increase from 3.37 tons in 2020[145]. - The Shenzhen factory's wastewater testing results for fiscal year 2021 showed compliance with environmental and safety standards, with a pH value of 7.300 and chemical oxygen demand of 8.50 mg/L[138]. - The company installed environmental air filters in the Shenzhen factory to reduce VOC emissions, which include benzene, toluene, and xylene[130]. Employee Management - The company employed 480 staff as of December 31, 2021, down from 669 in 2020, with total employee costs of approximately HKD 71.1 million for the year[66]. - The total number of employees at the end of FY2021 was 480, a decrease of 12.09% from 546 in FY2020[166]. - The average number of employees during FY2021 was 518, down 18.04% from 632 in FY2020[166]. - Employee costs for FY2021 totaled HKD 71,185,963, a decrease of 8.74% from HKD 78,003,457 in FY2020[170]. - The turnover rate for employees with less than 2 years of service was 60.39% in FY2021, compared to 64.66% in FY2020[171]. - The total number of resignations in FY2021 was 154, a decrease of 42.11% from 266 in FY2020[172]. - The company aims to maintain a turnover rate of employees with over 2 years of service below 10%[177]. - The company emphasizes competitive compensation to attract and retain employees[169]. - The company provides various training programs to enhance employee skills and knowledge[179]. - Total number of employees participating in training courses decreased from 3,873 in FY2020 to 2,372 in FY2021, a reduction of approximately 38.7%[180]. Safety and Health - Reported injuries and accidents increased from 23 in FY2020 to 28 in FY2021, an increase of 21.74%[194]. - Lost workdays decreased from 235 days in FY2020 to 182 days in FY2021, a reduction of 22.55%[194]. - The company implemented new health prevention measures in response to COVID-19, including temperature checks and mandatory mask-wearing since February 2020[191]. - The Shenzhen factory achieved certification for safety production standards, confirming compliance with social responsibility, health, and safety requirements[193]. - The company emphasizes the importance of a safe working environment and has established health and safety training programs for all new employees[195]. Supply Chain Management - The supply chain management strategy focuses on selecting reliable suppliers with quality raw materials to ensure sustainable operations[198]. - In FY2021, the main materials purchased by the company were paper materials, accounting for 67.20% of total procurement, up from 52.66% in FY2020[199]. - All new suppliers must undergo a comprehensive audit to meet procurement standards before being approved[199]. - The company primarily sources its suppliers from local industries in China and Hong Kong[199]. - Selecting local suppliers helps reduce transportation requirements, promotes environmental sustainability, and shortens delivery times[199].
万里印刷(08385) - 2021 - 年度财报