Financial Performance - The total value of contracts signed in 2021 was HKD 887,485,000, an increase of 35.1% compared to HKD 657,013,000 in 2020[10] - The sales revenue for 2021 was HKD 707,752,000, up 14.5% from HKD 617,937,000 in 2020[10] - The gross profit for 2021 was HKD 100,918,000, an increase of 8.6% from HKD 92,934,000 in 2020, with a gross margin of 14.3% compared to 15.0% in 2020[10] - Other income and gains totaled HKD 10,221,000 in 2021, a decrease of 56.7% from HKD 23,599,000 in 2020[11] - The operating loss for the trading business in 2021 was HKD 9,332,000, compared to an operating profit of HKD 9,175,000 in 2020[19] - The company reported a loss attributable to owners of HKD 38,984,000 in 2021, compared to a profit of HKD 4,451,000 in 2020[18] - The basic loss per share for 2021 was HKD 0.1694, compared to a basic earnings per share of HKD 0.0193 in 2020[20] - The administrative expenses for 2021 were HKD 96,607,000, an increase of 5.7% from HKD 91,423,000 in 2020[13] - The income tax expense for 2021 was HKD 4,625,000, an increase of 11.9% from HKD 4,132,000 in 2020[16] - The total comprehensive income attributable to the owners of the company for 2021 was HKD 19,330,000, a decrease of 40.1% from HKD 32,248,000 in 2020, primarily due to losses recorded in 2021[21] Dividends - The company proposed a final dividend of HKD 0.025 per ordinary share, totaling HKD 5,752,000, which, combined with a special dividend paid in September 2021, results in a total dividend of HKD 0.050 per share for the year, down from HKD 0.060 in 2020[22] - The company’s dividend policy does not set a predetermined payout ratio, and dividends are subject to the board's discretion based on various financial factors[141] Orders and Inventory - The order value for the group in 2021 was HKD 887,485,000, representing a 35.1% increase from HKD 657,013,000 in 2020, despite global supply chain issues affecting delivery times[24] - As of February 2022, the value of uncompleted orders was HKD 830,509,000, a significant increase of 268.6% from HKD 225,334,000 in February 2021[25] - Inventory as of December 31, 2021, was HKD 111,908,000, an increase from HKD 76,798,000 in 2020, with inventory turnover days rising to 67 days from 53 days[31] Financing and Debt - The net financing expenses for 2021 were HKD 2,973,000, down 35.1% from HKD 4,576,000 in 2020[14] - The net debt-to-equity ratio as of December 31, 2021, was approximately 26.4%, up from 12.5% in 2020, reflecting increased borrowing levels[32] - The total asset value pledged for bank financing was approximately HKD 259,520,000 as of December 31, 2021, down from HKD 274,183,000 on December 31, 2020[41] Operational Outlook - The company plans to strengthen its sales team in 2022, focusing on the automotive manufacturing sector to capture new customer segments[28] - The company maintains a cautiously optimistic outlook for 2022, despite uncertainties in the global political and economic landscape[29] - The group plans to implement a gradual business development plan to enhance future sales revenue[35] Market and Competition - The company faces intense competition in the Chinese production equipment and tools market, dealing with pricing competition and challenges in customer acquisition costs and contract payment terms[63] - The group is heavily reliant on the Chinese market, and any adverse changes in this market could severely impact performance[3] - The group is developing markets in Taiwan and Indonesia to diversify risks associated with over-reliance on China[3] Employee and Governance - The group employed 250 staff as of December 31, 2021, a decrease from 262 staff in 2020, with a competitive compensation scheme in place[42] - The company has complied with the corporate governance code as of December 31, 2021, except for specific provisions[104] - The board consists of six members, with a significant representation of independent directors to enhance governance[140] - The company has established a mandatory provident fund plan for Hong Kong employees, with both employer and employee contributions at 5% of total salary, capped at HKD 1,500 per month[110] Risk Management - The company has established risk management systems and processes to identify and manage significant risks that could adversely affect its performance[60] - The Board is responsible for overseeing the company's risk management and internal control systems, ensuring they are effective in identifying and mitigating risks[156] Environmental and Social Responsibility - The group has implemented various green office measures to promote environmental awareness and reduce waste[7] - The company is committed to protecting human rights and complying with all relevant labor laws, with zero tolerance for forced labor or child labor[193] Safety and Training - The company reported zero occupational accidents and no reported occupational diseases in 2021, maintaining a safe working environment[181] - The company has established a comprehensive safety training program for new employees and those in high-risk environments[181]
力丰(集团)(00387) - 2021 - 年度财报