Financial Performance - The company's revenue for the year ended December 31, 2021, was HKD 247,671,000, a decrease of 40.8% from HKD 417,862,000 in 2020[13] - Gross profit for the same period was HKD 54,323,000, down 39.5% from HKD 89,586,000 in 2020[13] - Operating profit before interest, tax, depreciation, and amortization was HKD 13,393,000, a decline of 77.9% compared to HKD 60,543,000 in the previous year[13] - The net profit attributable to owners of the company from continuing operations was HKD 21,650,000, down 22.4% from HKD 27,872,000 in 2020[19] - The earnings per share from continuing operations for 2021 was HKD 1.26, down from HKD 1.62 in 2020[19] - The profit attributable to the owners from continuing operations for the year ended December 31, 2021, was HKD 21.65 million, compared to HKD 27.87 million in 2020, reflecting a decrease of approximately 22%[29] - The company's revenue reported a decline, achieving HKD 352 million for the year 2021, compared to HKD 417.9 million in 2020[23] - The group's revenue from ongoing operations for the year ended December 31, 2021, was HKD 247.671 million, a decrease of 40.7% from HKD 417.862 million in 2020[56] - The company's profit attributable to the company's owners decreased by HKD 6,220,000 or approximately 22.3% to HKD 21,650,000 for the year ended December 31, 2021, compared to HKD 27,870,000 in 2020[80] - The basic and diluted earnings per share for the year ended December 31, 2021, were HKD 1.26, a decrease of 22.2% from HKD 1.62 in 2020[80] Operational Highlights - The company reported a total of 593,009 TEUs (Twenty-foot Equivalent Units) in container throughput for 2021, a decrease from 612,028 TEUs in 2020[21] - The total container throughput at Wuhan Yangluo Port for the year ended December 31, 2021, was 720,021 TEUs, an increase of 12.1% from 642,131 TEUs in 2020[62] - The market share for the company in 2021 was 38%, down from 44% in 2020[22] - The market share of the group decreased to approximately 39.1% from 43.6% in 2020, mainly due to ongoing competition from neighboring ports[67] - The company has successfully opened a new direct shipping route from Yangluo Port to Busan Port in South Korea, marking the first direct shipping line to South Korea from the central region of China[30] - The company has established three international shipping routes, enhancing its logistics capabilities and contributing to the "Belt and Road" initiative and the dual circulation strategy[30] Strategic Initiatives - The company plans to expand its logistics base in Central China, leveraging the Yangtze River Golden Waterway[4] - The company aims to provide comprehensive port services, multimodal logistics distribution, and infrastructure construction, focusing on building a leading logistics ecosystem in the region[32] - The company has developed port-related services, including bonded warehouses and customs clearance, to diversify its revenue sources[38] - The company has established a new logistics supply chain solution connecting Zhoushan to Yangluo Port, facilitating trade with the Chengyu region[29] - The company is optimistic about the future of its port business in Wuhan, aiming for a container throughput of 5 million TEU by 2025[89] Financial Position - The company incurred a net financing cost of HKD 23,869,000, reduced from HKD 35,041,000 in the previous year[13] - The total outstanding interest-bearing borrowings as of December 31, 2021, amounted to HKD 350,980,000, down from HKD 456,490,000 in 2020[91] - The total cash and cash equivalents as of December 31, 2021, were HKD 31,130,000, compared to HKD 38,180,000 in 2020[91] - The net asset value as of December 31, 2021, was HKD 949,180,000, an increase from HKD 922,310,000 in 2020[91] - The group's net current liabilities decreased to HKD 292,830,000 from HKD 384,150,000 in 2020, with current assets at HKD 150,080,000 compared to HKD 250,480,000 in 2020, resulting in a current ratio of 0.3, down from 0.4 in 2020[92] Governance and Compliance - The board consists of three executive directors, two non-executive directors, and three independent non-executive directors, providing a diverse governance structure[125] - The company has adopted the corporate governance code as per the listing rules, and has complied with all provisions during the fiscal year ending December 31, 2021[141] - The board consists of eight members, including three executive directors and three independent non-executive directors, ensuring a balanced governance structure[142] - The company has established appropriate insurance to protect directors and senior officers against potential liabilities arising from company activities[149] - The board has confirmed the effectiveness and adequacy of the internal control and risk management systems, with no significant failures reported[180] Human Resources - The total remuneration paid to employees, including retirement contributions, reached HKD 76,690,000 for the year ended December 31, 2021, compared to HKD 57,060,000 in 2020[104] - As of December 31, 2021, the total number of employees was 389, a decrease from 476 in the previous year, indicating a reduction in workforce[123] - The group is focused on retaining talent amid competitive labor conditions, offering attractive compensation to meet business objectives[111] Risks and Challenges - The group identified operational risks including equipment failures and adverse weather conditions that could disrupt operations and lead to revenue losses[107] - The company faces operational risks in supply chain management due to intense competition and the potential inability to attract and retain customers[117] - Credit risk exists due to the time lag between payments to suppliers and collections from customers, which may adversely affect cash flow and financial condition[118] - Inventory risk arises from potential order cancellations by customers, leading to excess inventory that could negatively impact financial performance[119] - The company must maintain sufficient working capital levels to support its business model, and failure to do so could significantly affect operations and financial results[120] Environmental, Social, and Governance (ESG) - The reporting period for the environmental, social, and governance (ESG) report covers January 1, 2021, to December 31, 2021[200] - The ESG report aims to address stakeholders' concerns regarding the company's sustainable development and improve data collection and reporting systems[199] - The environmental key performance indicators include operations from nine subsidiaries contributing significantly to profits, located in the Hubei province of China[200]
中国通商集团(01719) - 2021 - 年度财报