Financial Performance - Revenue for the year ended December 31, 2018, was HK$19,762,442, a decrease of 4.7% from HK$20,733,418 in 2017[6] - Gross profit decreased by 7.6% to HK$1,885,553 from HK$2,040,167 in the previous year[6] - Profit for the year attributable to owners of the Company increased by 17.8% to HK$74,190 from HK$62,987 in 2017[6] - EBITDA for the year was HK$1,758,630, reflecting an increase of 8.4% compared to HK$1,622,903 in 2017[6] - Basic earnings per share (EPS) rose by 10.8% to 2.36 HK cents from 2.13 HK cents in the previous year[6] - The Group's revenue in 2018 decreased by approximately HK$971 million or 4.7% compared to 2017, totaling around HK$20.7 billion[20] - The decline in revenue was primarily due to a 15.6% year-on-year drop in domestic mobile phone shipments in China and the depreciation of the Renminbi[20] - The Group's gross profit margin and profit attributable to the owners of the Company were adversely affected by the depreciation of the Renminbi[22] - The total revenue from external customers in 2018 was HK$19,762,442, a decrease from HK$20,733,418 in 2017[51] - The Group's gross profit for the year was approximately HK$1,886 million, with a gross profit margin of approximately 9.5%, down from 9.8% in 2017[63][64] Dividends - No final dividend was proposed for the year ended December 31, 2018, compared to a final dividend of 1 HK cent in 2017[7] - The company did not pay an interim dividend for the year, marking a 100% decrease from the previous year's interim dividend of 1 HK cent[6] - The total dividend payout ratio for the year was zero, with no final or interim dividends proposed[116] - No interim or final dividends were declared for the year ended December 31, 2018[139][142] Market and Operational Strategies - The directors indicated a focus on improving profitability despite a decline in revenue and gross profit margins[6] - The company is exploring new market expansion strategies to enhance revenue streams moving forward[6] - Future product development and technological advancements are prioritized to maintain competitive advantage in the market[6] - The Group's LCD business, including touch products, accounted for about 61% of total revenue in 2018, with a significant decline in sales for smartphone-related touch products[41] - Non-smartphone related revenue increased in 2018, driven by significant sales growth in compact camera modules, which contributed to 39% of the Group's revenue[42][41] - The Group anticipates revenue growth in 2019 despite challenges in the smartphone industry and ongoing Sino-US trade frictions, with opportunities arising from the 5G concept[30][32] Research and Development - The Group invested approximately HK$666 million in research and development in 2018, a decrease from HK$812 million in 2017, while continuing to register numerous patents related to manufacturing processes[43] - The company is actively involved in research and development, with a focus on enhancing product offerings and technological advancements[123] Financial Position and Liabilities - As of December 31, 2018, the Group's net current liabilities were approximately HK$4,927 million, an increase from HK$893 million as of December 31, 2017, resulting in a current ratio decrease from 0.93 to 0.69[96] - The Group's outstanding borrowings, net of restricted bank deposits, cash, and bank balances, were approximately HK$6,821 million as of December 31, 2018, representing an 18.5% increase compared to HK$5,756 million as of December 31, 2017[93] - The Group's gearing ratio based on total interest-bearing debts, net of restricted bank deposits, cash, and bank balances, increased to approximately 89% from 73% as of December 31, 2017[97] - The Group's major associate, Truly Huizhou, incurred more operating losses in 2018, contributing to an increase in share of losses of associates by approximately 19.4% or HK$72 million[71] Management and Governance - The management team has extensive experience in the electronics industry, with the Chairman and Managing Director having over 40 years of experience[118] - The Chief Financial Officer has over 20 years of experience in auditing, accounting, and financing, indicating strong financial management capabilities[120] - The company is dedicated to maintaining high standards of corporate governance, with independent directors overseeing audit and remuneration committees[129][132] - The Board is responsible for the Company's corporate governance and is accountable for its activities, strategies, and financial performance[198] Legal and Compliance - The company is currently involved in three civil complaints alleging patent infringement, with potential liabilities totaling RMB150 million[109] - The directors believe that the case has legal grounds for defense and do not expect to incur losses related to the civil complaints[112] - The Company complied with all applicable code provisions of the Corporate Governance Code throughout the year, except for a major deviation regarding the separation of roles[184]
信利国际(00732) - 2018 - 年度财报