Annual Report 2021

08 HOP FUNG GROUP HOLDINGS LIMITED • Annual Report 2021 MANAGEMENT DISCUSSION AND ANALYSIS (CONTINUED) 管理層討論及分析（續） FINANCIAL REVIEW Operating results The Group recorded a decrease in revenue of HK$284.8 million in 2021, representing a fall of 27.4% from HK$1,040.4 million in 2020 to HK$755.6 million in 2021. The drop in revenue was mainly attributed to the decline in sales volume resulting from the temporary suspension of production of Green Forest (QingXin) Paper Industrial Limited, a wholly-owned subsidiary of the Company. Co s t o f s a l e s i nc r ea s ed f r om HK$912.5 mi l l i on i n 2020 t o HK$1,127.1 million in 2021. Impairment loss on property, plant and equipment attributable to the temporary suspension of the upstream production, amounting to HK$420.6 million was included in cost of sales (2020: nil). Excluded the effect of the impairment loss, the extent of the decline in cost of sales was less than that in revenue due to the increase in the average cost of raw materials outweighed the increase in average selling price. Because of the impairment loss recognised this year, gross profit declined from HK$127.9 million in 2020 to gross loss of HK$371.5 million in 2021, representing a 390.5% decrease. Gross profit margin dropped from 12.3% to -49.2%. Eliminated this effect, gross profit of 6.5% resulted in 2021. Other income decreased from HK$23.1 million in 2020 to HK$17.9 million in 2021. Such decrease was mainly attributed to less scrap sales and less tax refund from the Chinese Government. Other gains and losses rose from HK$4.1 million in 2020 to HK$12.8 million in 2021, primarily due to exchange gain resulting from appreciation of Renminbi and gain on liquidation of a subsidiary. Selling and distribution costs reduced 18.1% from HK$38.1 million in 2020 to HK$31.2 million in 2021. The decrease was in line with the decrease in revenue. Administrative expenses fell 3.2% from HK$80.1 million in 2020 to HK$77.5 million in 2021. No significant change was recorded. Other expenses increased from HK$21.4 million in 2020 to HK$22.9 million in 2021. No significant change was recorded. Finance costs decreased from HK$8.8 million in 2020 to HK$8.4 million in 2021. The decrease was owing to lower borrowing level in 2021. 財務回顧 經營業績 本 集 團 於 二 零 二 一 年 錄 得 之 收 益 減 少 2 8 4 , 8 0 0 , 0 0 0 港 元，由 二 零 二 零 年 之 1,040,400,000 港元減少 27.4% 至二零二一年 之 755,600,000 港元。收益減少主要由於本 公司全資附屬公司森葉（清新）紙業有限公 司暫停生產導致銷量下跌所致。 銷售成本由二零二零年之 912,500,000 港元 增加至二零二一年之 1,127,100,000 港元。 由於上游業務暫時停產導致銷售成本中錄得 物業、廠房及設備之減值虧損 420,600,000 港元（二零二零年：無）。撇除減值虧損之影 響，由於原材料平均成本上漲超過平均售價 上升，銷售成本之跌幅少於收益之跌幅。 由於本年度確認減值虧損，毛利由二零二零 年之 127,900,000 港元減至二零二一年之毛 損 371,500,000 港元，下跌 390.5% 。毛利率 由 12.3% 下跌至 -49.2% 。撇除此項影響，於 二零二一年之毛利為 6.5% 。 其他收入由二零二零年之 23,100,000 港元減 少至二零二一年之 17,900,000 港元。有關減 少主要由於廢品銷售減少及中國政府之退稅 減少。 其他收益及虧損由二零二零年之 4,100,000 港元增加至二零二一年之 12,800,000 港元， 主要是由於人民幣升值產生匯兌收益及一家 附屬公司清盤之收益。 銷售及分銷成本由二零二零年之 38,100,000 港元減少 18.1% 至二零二一年之 31,200,000 港元。有關減少與收益減幅一致。 行政開支由二零二零年之 80,100,000 港元減 少 3.2% 至二零二一年之 77,500,000 港元，並 無錄得重大變動。 其他開支由二零二零年之 21,400,000 港元增 加至二零二一年之 22,900,000 港元，並無錄 得重大變動。 財務成本由二零二零年之 8,800,000 港元減 少至二零二一年之 8,400,000 港元，主要由 於二零二一年之借貸水平較低所致。