Financial Performance - The group's revenue for the year ended December 31, 2021, was approximately HKD 815.1 million, with a net profit of about HKD 106.2 million[12]. - For the year ended December 31, 2021, the group's revenue was approximately HKD 815.1 million, an increase of about HKD 259.2 million or 46.6% compared to HKD 555.9 million in the same period of 2020[23]. - The gross profit for the year ended December 31, 2021, was approximately HKD 269.9 million, an increase of about HKD 63.3 million or 30.6% from HKD 206.6 million in 2020[24]. - The net profit for the year ended December 31, 2021, was approximately HKD 106.2 million, an increase of about HKD 15.8 million or 17.5% compared to HKD 90.4 million in 2020[33]. - The gross profit margin decreased to approximately 33.1% for the year ended December 31, 2021, down from 37.2% in 2020, primarily due to a 37.0% increase in wax costs[25][26]. - The total assets as of December 31, 2021, were approximately HKD 483.0 million, an increase from HKD 353.7 million in 2020[37]. - The total borrowings as of December 31, 2021, amounted to approximately HKD 62.6 million, up from HKD 29.7 million in 2020[37]. - The current ratio as of December 31, 2021, was approximately 2.7 times, compared to 2.4 times as of December 31, 2020[37]. Sales and Market Trends - Sales of scented candles increased by approximately HKD 230.2 million or 67.8% compared to the same period in 2020, reflecting a growing preference in the US market for scented and colored candles[14]. - Sales of daily-use candles also saw growth, increasing by approximately HKD 48.3 million or 49.2% compared to the same period in 2020[15]. - The company aims to provide mid-to-high-end candle products in overseas markets, primarily targeting the US and UK markets[14]. - The company has established contracts with sales representatives since 2018 to capture the rapid growth of candle products, particularly in the US market[15]. - The company is confident in its future business development due to the increasing demand for scented candles[14]. Operational and Administrative Expenses - The group incurred selling and distribution expenses of approximately HKD 37.1 million for the year ended December 31, 2021, an increase of about HKD 8.8 million or 31.1% from HKD 28.3 million in 2020[29]. - Administrative expenses for the year ended December 31, 2021, were approximately HKD 96.6 million, an increase of about HKD 31.5 million or 48.4% from HKD 65.1 million in 2020[30]. - Financing costs for the year ended December 31, 2021, were approximately HKD 4.9 million, an increase of about HKD 0.9 million or 22.5% from HKD 4.0 million in 2020[31]. Corporate Governance - The board consists of two executive directors and three independent non-executive directors, maintaining a balanced composition[71]. - The company has adopted a diversity policy for the board, considering factors such as gender, age, cultural background, and professional experience in director appointments[79]. - The nomination committee is responsible for reviewing the structure and composition of the board and assessing the independence of independent non-executive directors[79]. - The company has established a legal liability insurance plan for directors, which is reviewed at least annually to ensure adequate protection[77]. - The board is committed to maintaining high standards of corporate governance and compliance with increasingly complex regulatory requirements[69]. - The company has complied with all applicable provisions of the corporate governance code during the relevant period[70]. Shareholder Communication and Engagement - The board has established a shareholder communication policy to ensure timely access to public information, including financial reports[127]. - Shareholders holding at least 10% of the paid-up capital can request a special general meeting within two months of submission[129]. - Shareholders can send inquiries to the board in writing or via email for information regarding the company[130]. - The company encourages active participation from shareholders and investors through its website for the latest updates[127]. Risk Management and Internal Control - The board conducted a review of the effectiveness of the internal control and risk management systems for the year ended December 31, 2021, covering financial, operational, compliance procedures, and risk management functions[122]. - The company has not established an internal audit department as the board believes there is no immediate need, but will consider establishing one if necessary[122]. - The group engaged external professional consultants to conduct an independent internal control review for the year ended December 31, 2021[122]. - The board is committed to enhancing corporate governance standards and maintaining an effective internal control system to safeguard the group's assets and protect shareholder interests[123]. Environmental and Social Responsibility - The company is committed to enhancing environmental protection and minimizing its operational impact on the environment[180]. - The group made donations amounting to HKD 195,000 during the year, compared to HKD 147,000 in 2020[174]. - The company has complied with all relevant laws and regulations during the year ended December 31, 2021, with no significant violations reported[182]. Future Plans and Investments - The group plans to invest more resources in product development and implement proactive marketing strategies to address future challenges[54]. - The group completed the construction of a new production facility in Vietnam with a total construction cost of approximately VND 106.55 billion (approximately HKD 36.5 million) by December 31, 2021[51].
凯富善集团控股(08512) - 2021 - 年度财报