Financial Performance - The company's revenue for 2021 increased by 5.2% year-on-year to approximately RMB 1,597.1 million[21] - The operating profit (EBIT) decreased by 10.7% to approximately RMB 170.8 million, with an EBIT margin of 10.7%[21] - The net profit attributable to the company was approximately RMB 115.4 million, a decrease of 19.1% compared to the previous year[22] - The gross profit margin for 2021 was 28.7%, down from 33.6% in 2020, reflecting a decrease of 4.9 percentage points[11] - The EBITDA for the year was approximately RMB 238.3 million, a decrease of 4.8% from RMB 250.3 million in 2020[11] - The company reported a net profit margin of 6.8%, down from 9.6% in the previous year, a decrease of 2.8 percentage points[11] - The gross profit decreased by approximately RMB 52.1 million to about RMB 458.9 million, a year-on-year decline of 10.2%[36] - The net profit for 2021 was approximately RMB 108.3 million, a decrease of 25.4% or about RMB 37.0 million compared to RMB 145.3 million in 2020[37] - The company recorded a financial cost of RMB 30,972,000, up from RMB 22,232,000 in 2020, representing an increase of about 39.4%[192] - The earnings per share for the year was RMB 0.115, down from RMB 0.142 in 2020, indicating a decrease of approximately 19%[192] Market Position and Strategy - The company maintained a market share increase in the segments of crispy and sandwich biscuits, which accounted for approximately 67.8% of total revenue[21] - The company aims to achieve revenue growth, increased profit margins, strong cash flow, and enhanced shareholder returns in the coming years[31] - The company plans to explore acquisition opportunities to accelerate its strategic goals and expand its product portfolio into new growth areas[31] - The company recognizes the importance of product innovation, quality, brand awareness, and effective marketing in a competitive market[24] - The company is focused on expanding its core candy brands to capture new snacking occasions amid increasing competition from other snack products[24] - The company anticipates that the rapid recovery of the Chinese economy and increased consumer spending will drive sales growth in the coming years[31] Cost Management and Operational Efficiency - The company is actively managing cost inflation issues related to raw materials through long-term contracts, efficient supply chain actions, and operational efficiency improvements[23] - The company aims to maintain and improve product quality while expanding its distributor network to meet consumer demand[34] - The company is implementing strategies to manage potential disruptions and has developed plans to address destructive events[143] Cash Flow and Financial Health - The net cash flow from operating activities was approximately RMB 101.7 million, significantly lower than RMB 279.8 million in the previous year[22] - Bank balances and cash decreased to approximately RMB 383.7 million as of December 31, 2021, from RMB 490.2 million in 2020[57] - Total bank borrowings increased by approximately RMB 211.1 million or 68.3% to RMB 520.1 million as of December 31, 2021[57] - The net decrease in cash and cash equivalents was RMB 106,572 thousand, compared to an increase of RMB 57,943 thousand in the previous year[195] - The overall financial performance indicates a need for strategic adjustments to improve cash flow from operations moving forward[195] Governance and Compliance - The company has adopted the corporate governance code as per the Hong Kong Stock Exchange listing rules and has complied with the code provisions since the listing date, with some deviations noted[71] - The board consists of three independent non-executive directors, meeting the requirement of at least one-third of the board[79] - The company has established three main board committees: Audit Committee, Nomination Committee, and Remuneration Committee to support governance operations[75] - The company emphasizes the importance of diversity in the board composition to ensure a wide range of perspectives and effective decision-making[108] - The company has established a whistleblower policy to handle allegations effectively[95] Risk Management - The company successfully navigated challenges posed by the COVID-19 pandemic, demonstrating the effectiveness of its risk management approach[137] - The company faces operational challenges due to the impact of the COVID-19 pandemic, which may lead to significant fluctuations in demand for its products[139] - Financial risks are specifically reviewed by the audit committee, ensuring thorough oversight[138] - The company’s risk management framework allows for clear ownership of risk identification and management at the business level[136] Shareholder Relations and Dividends - The proposed final dividend per share is HKD 0.05, unchanged from the previous year[11] - The board proposed a final dividend of HKD 0.05 per share, bringing the total dividend for the year to HKD 0.15 per share, a 200% increase from last year's HKD 0.05 per share[30] - The company ensures timely communication with shareholders and investors through roadshows, one-on-one meetings, conference calls, and investor meetings[128] Product Development and Innovation - Research and development expenditure in 2021 was approximately RMB 64.7 million, an increase of 8.1% year-on-year, representing about 4.1% of total revenue[38] - The company is focused on sustainable innovation in its product categories to attract consumer interest[141] - The company is committed to maintaining high standards of product quality and safety to protect its reputation[144]
嘉士利集团(01285) - 2021 - 年度财报