Zitong Financial App News, Zhifang International Holdings (08521) issued a 2021 results announcement. Compared with the financial performance for the year ended December 31, 2021, revenue for fiscal year 2021 increased by 2.103 million Hong Kong dollars, or 1.7 percent to 123 million Hong Kong dollars, and gross profit margin increased from 23.6 percent to 28.3 percent. The increase in earnings and gross profit margin is due to the steady recovery of China's economy following the global outbreak of the novel coronavirus epidemic (COVID-19) in early 2020 and the Group's improved product pricing in a recovering business environment.
Despite an increase in earnings and gross profit margin for the financial year 2021, the Group recorded a loss of HK $32.503 million for the year, a change from profit to loss compared with a profit of HK $6.111 million for the financial year 2020. The change from profit to loss in financial year 2021 was mainly due to an one-time provision for bad debts of approximately HK $46.3 million for all overdue balances of trade receivables from a customer.
The company believes that China's economy is recovering smoothly since the global outbreak of COVID-19, and the company's management will continue to consolidate the Group's position in the research and development of new functional fabrics and expand to different market segments by strengthening marketing and sales efforts. In the long run, the Group has the advantages to grasp the growing business opportunities and long-term stable growth momentum in the Chinese and overseas functional fabric markets by continuously developing new functional fabrics and upgrading the quality standards of functional fabrics.