2022-04-26-港交所-环球智能控股_二零二一年年报_174页_8mb

2021 Annual Report Summary

Core Content

This summary provides an overview of Smartac International Holdings Limited (the "Group") for the year ended 31 December 2021, including financial performance, business operations, corporate governance, and strategic developments.

Main Points

Corporate Structure and Leadership

• Executive Directors:

  • Yang Xin Min (Chairman)
  • Ho Chi Kin (Chief Executive Officer, resigned on 23 April 2021)
  • Ke Haiwei (Joint Chief Executive Officer, appointed on 1 July 2021)
  • Wong Wai Wai (Joint Chief Executive Officer, appointed on 1 July 2021)

• Independent Non-Executive Directors:

  • Poon Lai Yin Michael
  • Wang Haoxian (appointed on 30 September 2021)
  • Tsui Francis King Chung (resigned on 29 April 2021)
  • Tang Yat Ming Edward (resigned on 29 April 2021)
  • Peng Bobo (ceased on 30 June 2021)
  • Cheng Faat Ting Gary (resigned on 31 December 2021)

• Audit Committee:

  • Poon Lai Yin Michael (Chairman, appointed on 31 December 2021)
  • Wang Haoxian (appointed on 30 September 2021)
  • Tsui Francis King Chung (resigned on 29 April 2021)
  • Tang Yat Ming Edward (resigned on 29 April 2021)
  • Peng Bobo (ceased on 30 June 2021)
  • Cheng Faat Ting Gary (resigned as Chairman on 31 December 2021)

• Remuneration Committee:

  • Poon Lai Yin Michael (Chairman, appointed on 31 December 2021)
  • Wong Wai Wai (appointed on 27 August 2021)
  • Wang Haoxian (appointed on 30 September 2021)
  • Ho Chi Kin (resigned on 23 April 2021)
  • Tsui Francis King Chung (resigned on 29 April 2021)
  • Tang Yat Ming Edward (resigned on 29 April 2021)
  • Peng Bobo (ceased on 30 June 2021)
  • Cheng Faat Ting Gary (resigned as Chairman on 31 December 2021)

• Nomination Committee:

  • Wang Haoxian (Chairman, appointed on 31 December 2021)
  • Poon Lai Yin Michael
  • Yang Xin Min (appointed on 23 April 2021)
  • Ke Haiwei (appointed on 27 August 2021)
  • Ho Chi Kin (resigned on 23 April 2021)
  • Tsui Francis King Chung (resigned on 29 April 2021)
  • Tang Yat Ming Edward (resigned on 29 April 2021)
  • Cheng Faat Ting Gary (resigned as Chairman on 31 December 2021)

• Company Secretary:

  • Hung Ee Tek (appointed on 8 July 2021)
  • Yeung Wai Ling (resigned on 8 July 2021)

• Authorized Representatives:

  • Yang Xin Min (appointed on 23 April 2021)
  • Hung Ee Tek (appointed on 8 July 2021)
  • Ho Chi Kin (resigned on 23 April 2021)
  • Yeung Wai Ling (resigned on 8 July 2021)

• Auditor:

  • RSM Hong Kong (Certified Public Accountants, Registered Public Interest Entity Auditor)
  • Address: 29th Floor, Lee Garden Two, 28 Yun Ping Road, Causeway Bay, Hong Kong

• Principal Bankers:

  • China Construction Bank (Asia)
  • DBS Bank (Hong Kong) Limited
  • China Merchants Bank
  • Bank of Suzhou
  • Industrial and Commercial Bank of China Limited

Financial Highlights

Five-Year Financial Summary (in RMB '000)

Key Financial Performance (FY2021)

• Revenue: RMB50,083,000, down 73.9% from FY2020.
• Loss for the year: RMB96,366,000.
• EBIT: RMB95,375,000 (negative), down 32.6% from FY2020.
• EBITDA: RMB89,594,000 (negative), down 24.4% from FY2020.
• Gross profit: RMB14,895,000, with a 29.7% gross profit margin, up 18.2 percentage points from FY2020.
• Operating expenses:
  • Selling expenses: RMB23,613,000, down 14.3% from FY2020.
  • Administrative expenses: RMB44,641,000, down 1.0% from FY2020.
  • Other operating expenses: RMB15,668,000, up 56.0% from FY2020, mainly due to inventory allowance.
• Trade receivables allowance: RMB19,678,000, up 20 times from FY2020, due to overdue receivables.
• Bank loans: RMB10,160,000, up from RMB8,000,000 in FY2020.
• Gearing ratio: 8.4% (as of 31 December 2021), up from 5.6% in FY2020.

Business Review

• The Group focuses on three main segments:

  1. O2O Commerce: Provides online and offline commerce solutions, innovative e-tailing solutions, and customized supply chain management.
  2. Electronic Payment Solutions: Offers mobile payment services via WeChat Pay, primarily to retail merchants in Hong Kong.
  3. IT System Development and Support: Delivers social CRM platforms and IT support services to shopping mall operators and property developers in the PRC.

• O2O Commerce Segment:

  • Revenue decreased by 76.2% to RMB44,974,000.
  • The decline was attributed to reduced resource allocation and the impact of the pandemic on consumer confidence and sales performance.

• Electronic Payment Solutions Segment:

  • Revenue increased by 24.9% to RMB2,436,000.
  • This was driven by improved local consumption sentiment and the easing of the pandemic.

• IT Segment:

  • Revenue increased by 241.8% to RMB2,673,000.
  • The rise was due to the gradual recovery of mall traffic and consumer confidence in the PRC.

Strategic Actions

• The Group sold two loss-making subsidiaries:
  • Upfront Success Holding Limited (engaged in general merchandise trading in the PRC and Hong Kong).
  • Smartronic Limited (specializing in health product marketing in the PRC and Hong Kong).
• The Group also transferred inventories from eight public warehouses to a central warehouse to improve operational efficiency.
• The Group has invested in Zhangzhou Keruilin Biotechnology Co., Limited (established in November 2021 and became a wholly-owned subsidiary in February 2022) to expand its presence in the health food market.
• The Group is actively exploring new investment opportunities, including the development of its electronic data platform services and wireless network equipment.

Human Resources

• Employees: 93 (as of 31 December 2021), down from 154 in FY2020.
• Employee benefits expenses: RMB30,085,000 (FY2021), down from RMB32,834,000 in FY2020.
• Share option scheme: Expired on 26 May 2021.

Financial Resources and Liquidity

• Cash and cash equivalents: RMB56,797,000 (as of 31 December 2021), down from RMB60,469,000 in FY2020.
• Bank loans: RMB10,160,000, with approximately RMB733,000 due within one year.
• Pledged assets:
  • Building in the PRC: RMB4,187,000
  • Investment properties in the PRC: RMB56,500,000
  • Right-of-use assets related to leasehold lands in the PRC: RMB1,894,000
  • Personal guarantee from a director of the Company's subsidiaries.

Foreign Exchange Exposure

• The Group's major subsidiaries operate in the PRC and most transactions are denominated in RMB.
• However, some monetary assets and liabilities are in HKD and USD, exposing the Group to exchange rate fluctuations.
• The Group does not use derivative financial instruments but will review and manage risks as necessary.

Prospects

• The Group remains cautiously optimistic about the prospects for 2022.
• It expects the easing of the pandemic and the implementation of a new round of Consumption Voucher Scheme in Hong Kong to improve consumer sentiment and business performance.
• The Group will continue to enhance operational efficiency and reduce costs to maximize shareholder returns.
• The Group is exploring new investment opportunities, particularly in the health food and electronic data platform sectors.