Financial Performance - The group recorded revenue of approximately RMB 262.6 million for the year ended December 31, 2021, representing a year-on-year increase of approximately 12.6% compared to RMB 233.2 million in 2020[10]. - Profit attributable to the owners of the company for the year was approximately RMB 35.2 million, up from approximately RMB 20.8 million in 2020[11]. - The increase in revenue was primarily driven by heightened demand for takeaway services due to the COVID-19 outbreak[10]. - Revenue for the year 2021 was RMB 262,637,000, representing a 12.7% increase from RMB 233,181,000 in 2020[19]. - Profit before tax for 2021 was RMB 47,868,000, up 47.0% from RMB 32,546,000 in 2020[21]. - Net profit for the year 2021 was RMB 35,231,000, an increase of 69.7% compared to RMB 20,760,000 in 2020[21]. - The company reported a gross profit of RMB 75,948,000 for 2021, which is an increase from RMB 69,166,000 in 2020[21]. - The gross profit increased to approximately RMB 75.9 million for the year ended December 31, 2021, up by about RMB 6.7 million or 9.8% from RMB 69.2 million in the previous year[34]. - The sales cost rose to approximately RMB 186.7 million, an increase of about 13.8% from RMB 164.0 million in the previous year, aligning with the revenue growth and increased expenses[31]. - The overall gross margin slightly decreased to approximately 28.9% for the year ended December 31, 2021, from 29.7% in the previous year due to increased depreciation expenses from new machinery[34]. Assets and Liabilities - Total assets as of December 31, 2021, amounted to RMB 200,753,000, a significant increase from RMB 163,689,000 in 2020[25]. - Total liabilities increased to RMB 35,314,000 in 2021 from RMB 33,611,000 in 2020[25]. - The company's equity attributable to owners rose to RMB 165,439,000 in 2021, compared to RMB 130,078,000 in 2020, reflecting a growth of 27.2%[25]. - The net value of current assets increased from approximately RMB 83.4 million as of December 31, 2020, to approximately RMB 120.6 million as of December 31, 2021, primarily due to an increase in trade and other receivables by approximately RMB 4.7 million and cash and cash equivalents by approximately RMB 35.2 million[45]. - The current ratio significantly improved from approximately 3.8 times as of December 31, 2020, to approximately 4.7 times as of December 31, 2021[46]. - As of December 31, 2021, the group's bank balance and cash amounted to approximately RMB 107.6 million, an increase from approximately RMB 72.4 million in 2020, mainly from net cash generated from operating activities[47]. - The group had no borrowings as of December 31, 2021, and lease liabilities were approximately RMB 3.4 million, down from RMB 4.4 million in 2020[48]. Investment and Expansion Plans - The company has entered into an equity purchase agreement to acquire 100% of June Pictures & Media Limited for a total consideration of RMB 20,571,430[13]. - The investment in June Pictures & Media Limited is expected to generate substantial income and expand the company's business scope[13]. - The company plans to invest in film projects, capitalizing on the improving regulatory environment and rising public entertainment demand in China, with a total consideration of RMB 20,571,430 for acquiring June Pictures & Media Limited[29]. - The company aims to expand its market share by utilizing the net proceeds from its listing on GEM on July 13, 2020[159]. - The group plans to invest in film projects, acquiring June Pictures & Media Limited for a total consideration of RMB 20,571,430[160]. Corporate Governance - The company has maintained compliance with the corporate governance code throughout the fiscal year ending December 31, 2021[79]. - The board of directors is responsible for formulating the overall strategy and monitoring management performance[81]. - The company has adopted the GEM Listing Rules as its corporate governance framework, enhancing accountability and performance[78]. - The company has independent non-executive directors with extensive experience in accounting and law, contributing to governance and oversight[73][75]. - The board consists of six directors, including three executive directors and three independent non-executive directors, ensuring a balance of skills and experience[84]. - The company emphasizes the importance of training and continuous professional development for directors and senior management[82]. - The board is committed to high standards of corporate governance to promote growth and protect shareholder interests[78]. - The company has established policies to review and monitor compliance with legal and regulatory requirements[82]. - The company has established four committees: Audit Committee, Remuneration Committee, Nomination Committee, and Risk Management Committee, each with defined terms of reference[98]. - The Audit Committee recommended the reappointment of the external auditor, Crowe Horwath (Hong Kong) CPA Limited, for the fiscal year ending December 31, 2022, subject to shareholder approval at the upcoming annual general meeting[103]. Shareholding Structure - As of December 31, 2021, the directors and senior management hold a total of 301,500,000 shares, representing 50.25% of the company's equity[191]. - Prize Investment Limited is the beneficial owner of 301,500,000 shares, accounting for 50.25% of the total shares[195]. - Merit Winner Limited holds 67,500,000 shares, which is 11.25% of the company's equity[195]. - Sun Kong Investments (BVI) Limited owns 54,000,000 shares, representing 9.00% of the total shares[195]. - The total number of shares held by major shareholders and directors is disclosed in compliance with the Securities and Futures Ordinance[198]. - The shareholding structure indicates significant control by a few major shareholders, with the top three holding over 70% of the equity[195]. - The company is compliant with the regulatory requirements for disclosing shareholdings of directors and major shareholders[198]. - The report highlights the interconnected ownership among directors and their spouses, affecting the overall shareholding percentages[196][197]. - The company maintains transparency in its governance by regularly updating the register of interests as required by law[198]. Future Plans and Use of Proceeds - The total net proceeds from the share issuance were approximately RMB 22.8 million, which was lower than the estimated net proceeds of approximately RMB 32.8 million stated in the prospectus[56]. - Approximately RMB 18.1 million of the net proceeds was used to acquire new machinery to expand production capacity, representing 79.3% of the total net proceeds[58]. - As of December 31, 2021, the actual use of net proceeds included RMB 1.4 million for establishing a second production facility, with an expected completion by the end of 2022[57]. - The actual use of proceeds from the listing until December 31, 2021, was approximately RMB 22.3 million, indicating faster business expansion than planned[62]. - Approximately RMB 2.5 million was invested to enhance research and development capabilities[62]. - Approximately RMB 0.3 million was used to expand the sales and marketing team[62]. - The remaining unutilized net proceeds of approximately RMB 0.5 million will be used according to the plan stated in the prospectus[62]. Compliance and Risk Management - The group has outsourced its internal audit function to an independent internal audit firm to ensure effective risk management[149]. - The company has established a Risk Management Committee on June 19, 2020, to identify and assess existing and potential risks in its operations[123]. - The Risk Management Committee held one meeting during the year ended December 31, 2021, to discuss risks related to the group's overseas export business[128]. - The company has established a nomination procedure to identify suitable candidates for the board, considering various factors including qualifications, skills, and experience[118]. - The company has not entered into any management or administrative management contracts related to its main business as of December 31, 2021[184].
易和国际控股(08659) - 2021 - 年度财报