建滔集团(00148) - 2023 - 年度财报

Financial Performance - Revenue decreased by 20% to HK$39,712.5 million compared to the previous year, primarily due to declines in laminate and chemical product prices, as well as reduced residential property handovers[14] - Underlying net profit attributable to owners of the company decreased by 41$2,274.3 million, excluding non-recurring items[14] - EBITDA dropped by 35% to HK$6,139.0 million, reflecting a challenging high-cost environment[8] - Profit before tax fell by 57$3,025.2 million, impacted by market conditions and geopolitical conflicts[8] - Basic earnings per share based on underlying net profit decreased by 41% to HK$2.052[8] - Dividend per share for the year decreased by 3$2.2 billion after deducting credit loss provisions of HK$893.9 million for loans to Country Garden Holdings and impairment loss provisions of HK$414.8 million for unsold residential properties in East China[15] - Group's turnover decreased by 20% year-on-year to HK$39.7125 billion, with basic net profit attributable to shareholders (excluding non-recurring items) down 41$2.2743 billion[16] - Laminates Division achieved annual sales volume of 100 million sheets, a 3% increase from 2022, but segment revenue decreased by 14% to HK$17.1827 billion due to declining selling prices[20][23] - PCBs Division's EBITDA increased by 17$2.0277 billion despite a 12% decrease in segment revenue to HK$11.6478 billion, driven by lower raw material costs and improved production efficiency[21][24] - Chemicals Division's segment revenue decreased by 19$11.1989 billion, with EBITDA down 68% to HK$896.4 million due to lower selling prices of chemical products[22][24] - Property Division's revenue from property sales decreased by 74$1.2817 billion, while rental income increased by 14% to HK$1.4705 billion, leading to a 56$2.7522 billion[26][28] - Laminates Division's EBITDA decreased by 20% to HK$2.486 billion due to intense market competition and declining gross profit margins[20][23] - Property Division's EBITDA decreased by 62$1.1613 billion, impacted by reduced property sales and increased rental income[26][28] - Group net current assets decreased to HK$25,252.7 million in 2023 from HK$28,108.6 million in 2022, with a current ratio of 2.33 (2022: 2.64)[29] - Net working capital cycle increased to 65 days in 2023 from 50 days in 2022, driven by higher inventory turnover days (43 days vs. 35 days) and trade receivables turnover days (60 days vs. 50 days)[29] - Group's net gearing ratio rose to 29% in 2023 from 20% in 2022, with short-term to long-term bank borrowings ratio at 36%:64% (2022: 27%:73%)[30][32] - The company invested HK$4,200 million in new production capacity and HK$840 million in property construction during the period[30][32] - Successfully secured a HK$7 billion 5-year sustainability-linked loan facility, oversubscribed by major international and local banks[30][32] - Trade and bills payable turnover days increased to 38 days in 2023 from 35 days in 2022[29] - Financial guarantees provided for property buyers decreased to HK$322,266,000 in 2023 from HK$556,851,000 in 2022[35] - The Group held HK$11,987 million in securities investments as of 31 December 2023, representing approximately 12% of total assets, up from HK$7,171 million (7$862 million as of 31 December 2023, with a total investment cost of approximately HK$2,982 million[95] - Interest income from bond investments decreased by approximately 54$39 million in 2023 compared to HK$84 million in 2022[95] - The Group holds bonds with fixed coupon rates of 6.5$39,815,000 as of 31 December 2023, with an accumulated fair value loss of HK$747,914,000[93] - The Group's investment in Group B Notes had a fair value of HK$49,130,000 as of 31 December 2023, with an accumulated fair value loss of HK$977,442,000[94] - The Group's investment in Group C Notes had a fair value of HK$27,412,000 as of 31 December 2023, with an accumulated fair value loss of HK$441,728,000[94] - The Group recognized an impairment loss of HK$2,283,000 during the reporting period, with an accumulated impairment loss of HK$1,581,283,000[94] - Impairment losses recognized in the period amounted to HKD 2,283,000, with cumulative impairment losses totaling HKD 1,581,283,000[96] - The bond investment portfolio had a fair value of approximately HKD 862 million as of December 31, 2023, with a corresponding investment cost of HKD 2,982 million[96] - Interest income from bond investments decreased by 54$2,283,000 under the ECL model for the year, with accumulated ECL of HK$1,581,283,000 on GRFP debt instruments[105] - GRFP's net debt to total equity ratio increased to 262$491,349,000, with a gain on fair value changes of HK$310,844,000[108] - The Company repurchased 500,000 shares on the Stock Exchange for an aggregate consideration of HK$11,926,075 before expenses during the year ended 31 December 2023[118] - The company repurchased 500,000 shares at a total cost of HKD 11,926,075 during the year ended December 31, 2023, with the highest price paid per share being HKD 24.60 and the lowest being HKD 22.95[120] - The company's distributable reserves as of December 31, 2023, included retained profits of HKD 109,158,000, a significant increase from HKD 55,653,000 in 2022[122] - The total retained profits and share premium of the company amounted to HKD 6,728,675,000 as of December 31, 2023, compared to HKD 6,686,612,000 in 2022[122] - Interim dividend of HK16 cents per ordinary share amounting to HK$177,330,000 and a special interim dividend of HK50 cents per ordinary share amounting to HK$554,155,000 were declared during the year[81] - Final dividend of HK36 cents per ordinary share amounting to HK$398,992,000 is recommended for payment on 18 June 2024[81] Business Divisions Performance - The Printed Circuit Boards (PCBs) Division achieved near-full utilization rates despite low industry utilization rates, leading to increased segment earnings[13] - The Property Division experienced steady growth in rental income, driven by higher occupancy rates and contributions from Two London Wall Place[13] - The company made allowances for credit loss of HK$893.9 million related to a loan to Country Garden Holdings Company Limited[13] - Impairment loss for unsold residential properties in eastern China amounted to HK$414.8 million, net of deferred tax[13] - PCBs Division benefited from lower costs of core raw materials and increased automation, leading to improved efficiency and cost savings[21][24] - The Group has invested HK$480 million in distributed solar photovoltaic power projects, generating 100 million kWh of green electricity annually, saving 27,000 tons of standard coal, reducing CO2 emissions by 60,000 tons, and saving HK$90 million in electricity expenses as of 31 December 2023[39] - By 31 December 2024, the Group expects to invest approximately HK$900 million in solar projects, generating 200 million kWh of green electricity annually, saving 54,000 tons of standard coal, reducing CO2 emissions by 120,000 tons, and saving HK$180 million in electricity expenses[39] - The Group has invested HK$130 million in thermal energy recovery equipment, reducing 44,000 tons of CO2 emissions annually, saving 18,000 tons of standard coal, and saving HK$140 million in expenses annually, totaling over HK$300 million in savings[39] - The Hebei acetic acid project captures 200,000 tons of CO2 annually for production, saving 81,000 tons of standard coal, aligning with the Group's green corporate pledge[39] - The Laminates Division has developed low dielectric constant/low thermal expansion coefficient products for AI computing applications, currently undergoing comprehensive testing with customers[41] - The Group plans to expand its laminates monthly capacities in Thailand by 400,000 sheets in 2024 to meet development demands[41] - Raw material prices for laminates production, except for copper, have reached extremely low levels, which is expected to improve the Group's gross profit margin in 2024[41] - The Group anticipates that years of research and development will gradually yield positive results, with a focus on high-quality standards and cost controls[41] - The PCB division plans to add 200,000 square feet of monthly capacity for multi-layered PCBs in Thailand in 2024 to increase industry penetration[42] - The company expects the copper-clad laminate market to stabilize and rebound due to rising export orders, rapid growth in new energy vehicles and related products, and the widespread application of AI and big data technologies[43] - The PCB division is increasing investment in high-aspect-ratio electroplating technology, advanced back-drilling technology, heavy copper PCBs manufacturing capability, and ultra-high-speed materials to embrace the explosive development of AI[44] - The Chemicals Division commissioned a 450,000-tonne phenol acetone project in Daya Bay, Huizhou, Guangdong Province in the second half of 2023 and a 240,000-tonne Bisphenol A project in the first half of 2024[46] - The company plans to build an 800,000-tonne acetic acid project in Xingtai City, Hebei Province, adopting advanced carbon capture technology developed by Tsinghua University[46] - The Property Division estimates rental income to exceed HK$1,400 million for the full year of 2024[47] - The company's copper-clad laminate division plans to increase monthly production capacity by 400,000 sheets in Thailand in 2024 to align with the company's development pace[43] - The PCB division is focusing on developing high-value-added products with higher technical content, such as high aspect ratio and high precision alignment[42] - The company's inventory prices for raw materials, except for copper, have reached extremely low levels, which is expected to improve gross margins in 2024[43] - The Chemicals Division is leveraging innovation and technology to promote enterprise-wide transformation towards a high-quality, green, and low-carbon trajectory[48] Corporate Governance and Leadership - Mr. Cheung Kwok Wing, aged 68, is the chairman and co-founder of the Group, responsible for overall strategic planning and setting the general direction and goals for the Group[54] - Mr. Chang Wing Yiu, aged 57, is the managing director of the Group, responsible for the Group's phenol/acetone plants in Yangzhou, Jiangsu province and Huizhou, Guangdong province[54] - Mr. Cheung Kwong Kwan, aged 59, is an executive director and president of South China Chemical Department, responsible for the Group's chemical business operations and property developments in southern China[55] - Mr. Ho Yin Sang, aged 69, is responsible for the Group's chemical business operations in Hebei province and the rental business of properties in southern China[56] - Mr. Cheung Ka Shing, aged 36, is responsible for the property development business of the Group in eastern China[56] - Ms. Ho Kin Fan, aged 45, is responsible for the Group's PCB plants in Huizhou, Qingyuan, and Dongguan, Guangdong province, with over 12 years' experience in PCB business[56] - Mr. Chen Maosheng, aged 60, is the chief financial controller of the Group in the PRC, responsible for managing the finance and tax matters of the Group in the PRC and the Group's PCB plants in eastern China[56] - Mr. LO Ka Leong, aged 50, is the company secretary and a non-executive director of KLHL, a 73.76% owned subsidiary listed on the main board of the Stock Exchange[62] - Mr. Stanley Chung Wai Cheong, aged 54, has over 27 years of experience in accounting and financial management, and served as the financial controller and company secretary of the Company from 1997 to 2001[61][63] - Mr. CHAN Wing Kee, aged 77, has over 50 years of experience in the textiles and garment manufacturing industry and is an executive director of YGM Trading Limited (stock code: 375)[59] - Dr. CHONG Kin Ki, aged 68, has been a private medical practitioner since 1989 and became a Registered Specialist in General Surgery in 1993[59] - Mr. CHEUNG Ming Man, aged 67, was awarded the Bronze Bauhinia Star in 2010 and was elected as the Hong Kong deputy to the 12th National People's Congress in December 2012[58][60] - The company has adopted and complied with the Corporate Governance Code and Corporate Governance Report as set out in Appendix C1 to the Listing Rules of The Stock Exchange of Hong Kong Limited for the year ended 31 December 2023[183] - The Board held four meetings and one annual general meeting during the year under review, with detailed attendance records provided for each director[185] - The Board is responsible for approving the Group's strategic plan, annual budget, key operational initiatives, major investments, and funding decisions[184] - The company has adopted internal guidelines specifying matters requiring Board approval and ensures that Directors abstain from voting on resolutions where they have a material interest[184] - The Board reviews the Group's financial performance, identifies principal risks, and ensures the implementation of appropriate risk management systems[184] - The company has adopted a code of conduct for securities transactions by directors, which is no less exacting than the Model Code for Securities Transactions by Directors of Listed Issuers[183] - The Board observes recommended best practices from Appendix 14 to the Listing Rules and continuously enhances corporate governance standards[183] - The company's articles of association require Directors to abstain from voting on resolutions where they have a material interest, ensuring objective decision-making[184] - The Board meets regularly, with notices, agendas, and relevant meeting papers distributed to Directors well in advance to facilitate informed decision-making[184] - The company held its annual general meeting on 29 May 2023, with detailed attendance records provided for Directors[185] - The Board plans to hold meetings quarterly, with no less than four meetings scheduled for the coming year[187] - The Board currently comprises eleven members, including seven executive Directors and four independent non-executive Directors[191] - One of the independent non-executive Directors possesses appropriate professional qualifications as required by the Listing Rules[191] - The Chairman and Managing Director roles are segregated and not held by the same individual[187] - The Chairman is responsible for scheduling meetings, preparing agendas, and ensuring the flow of information between Management and the Board[187] - The Managing Director is responsible for overall strategic planning and day-to-day management of the Group[188] - The Company has received annual independence confirmations from each independent non-executive Director as required by the Listing Rules[194] - The Board considers that the independent non-executive Directors remain independent[195] - The Board consists of Directors with expertise in laminates, printed circuit boards, property developments, chemical products, and financial management, ensuring effective decision-making for the company's operations[196] - Directors are required to retire and be eligible for re-appointment at the next general meeting or annual general meeting, with one-third of Directors, including the Chairman, subject to retirement by rotation at each annual general meeting[196] - Newly appointed Directors receive a comprehensive induction and are updated on continuing professional development to ensure they understand the company's operations and their responsibilities under applicable laws[198] - Directors participated in relevant training sessions, seminars, and programs related to business and directors' duties during the year, ensuring compliance with the Corporate Governance Code[200] Shareholder and Equity Information - Mr. Cheung Kwok Wing, the Chairman, held 6,939,405 shares, representing approximately 0.6261% of the company's issued share capital as of December 31, 2023[129] - Mr. Chang Wing Yiu, the Managing Director, held 9,570,228 shares, representing approximately 0.8635% of the company's issued share capital as of December 31, 2023[129] - Mr. Cheung Kwok Wing holds 6,653,905 ordinary shares of the Company, representing a significant portion of his total holdings of 6,939,405 shares[130] - Mr. Chang Wing Yiu holds 8,899,488 ordinary shares of the Company, out of his total holdings of 9,570,228 shares[130] - Mr. Ho Yin Sang holds