Financial Performance - The company recorded revenue of approximately RMB 744 million for the year ended December 31, 2021, representing an increase of about 22.8% compared to the previous year[9]. - Gross profit for the year was approximately RMB 179 million, reflecting a growth of about 29.7% year-on-year[9]. - The company's revenue for the year ended December 31, 2021, was approximately RMB 744.14 million, an increase of about 22.8% compared to RMB 606.0 million for the year ended December 31, 2020[17]. - The gross profit increased by approximately 29.7% to RMB 179.0 million for the year ended December 31, 2021, compared to RMB 138.0 million for the previous year, resulting in a gross margin increase from 22.7% to 24.1%[24]. - The company reported a net loss of RMB 1.4 million for the year ended December 31, 2021, a significant reduction from a loss of RMB 14.1 million for the year ended December 31, 2020[32]. Cost Management - The company plans to continue implementing cost control measures and expanding its customer base and product offerings to enhance overall competitiveness and market share[10]. - Distribution and selling expenses decreased from approximately RMB 43.0 million for the year ended December 31, 2020, to approximately RMB 39.0 million for the year ended December 31, 2021[26]. - Administrative expenses decreased from approximately RMB 22.7 million for the year ended December 31, 2020, to approximately RMB 20.5 million for the year ended December 31, 2021, due to cost control measures[27]. - The total employee cost for the year ended December 31, 2021, was approximately RMB 21.8 million, a decrease from RMB 25.1 million in 2020[53]. Market Outlook - Future opportunities and challenges for the company will be influenced by the overall development of the Chinese apparel accessories market and rising labor and material costs[10]. - The management team believes that the shortening of clothing season cycles and multifunctional labels will remain key growth drivers in the Chinese apparel accessories market[10]. - The company aims to diversify its revenue sources by exploring new business opportunities and different sales channels for apparel products[10]. - The company acknowledges the ongoing challenges in the apparel accessories market due to COVID-19, price competition, and trade tensions between China and the United States[9]. Corporate Governance - The company emphasizes the importance of good corporate governance for long-term success and sustainability, adhering to GEM listing rules and corporate governance codes[118]. - The board consists of eight members, including one non-executive director, three executive directors, and four independent non-executive directors, ensuring a strong independent element[125]. - The company has adopted a board diversity policy to enhance its competitive advantage, focusing on various factors such as gender, age, cultural background, and professional experience[130]. - The company aims to maintain a balanced mix of skills and experiences among board members to support sustainable growth[131]. - The board is responsible for setting overall strategies and monitoring management performance, with delegated authority for management and administration[120]. Risk Management - The company has implemented a three-tier risk management approach to identify, assess, and mitigate risks, with the first line being business departments responsible for monitoring risks[195]. - The company faced risks related to the COVID-19 pandemic, including potential impacts on financial performance due to lockdowns and travel restrictions[55]. - The board believes that there are no uncertainties that may cast significant doubt on the company's ability to continue as a going concern[200]. Investment and Development - The company plans to enhance its production facilities and digital printing technology with an allocation of HKD 7.9 million, fully utilized by December 31, 2021[74]. - Development of RFID technology application in products has a planned allocation of HKD 3.0 million, with HKD 0.5 million utilized and HKD 2.5 million expected to be utilized by December 2022[74]. - The upgrade of the company's information technology systems has a budget of HKD 5.3 million, with HKD 3.4 million utilized and HKD 1.9 million expected to be utilized by December 2022[74]. - The company has allocated HKD 8.0 million for the development of its garment trading business, with only HKD 0.8 million utilized and HKD 7.2 million expected to be utilized by December 2022[74]. Employee Relations - The company expresses gratitude to all employees for their hard work and dedication during the challenging year[10]. - The company employed a total of 220 staff as of December 31, 2021, compared to 219 in 2020[53]. - The company maintained good relationships with customers and suppliers, with no significant complaints reported during the year[65]. Audit and Compliance - The audit committee, established on June 24, 2017, has met four times during the year to review the financial statements for the year ending December 31, 2021[157]. - All directors confirmed compliance with the trading standards set out in the GEM Listing Rules for the year ending December 31, 2021[138]. - The company has established three committees to assist the board in fulfilling its responsibilities, including the audit committee, remuneration committee, and nomination committee[146].
新达控股(08471) - 2021 - 年度财报