建滔集团(00148) - 2019 - 年度财报

Financial Performance - The Group's revenue decreased by 11% to HK$41,160.9 million in FY 2019 compared to HK$45,994.4 million in FY 2018[11]. - Underlying net profit (excluding non-recurring items) was HK$3,415.8 million, down by 26% from HK$4,603.1 million in the previous year[11]. - Reported net profit fell by 49% to HK$3,094.4 million from HK$6,075.8 million in FY 2018[11]. - Basic earnings per share based on underlying net profit decreased by 27% to HK$3.146 from HK$4.313[11]. - The Group's revenue for the fiscal year ended December 31, 2019, decreased by 11% to HK$41,160.9 million, while the basic net profit (excluding non-recurring items) fell by 26% to HK$3,415.8 million[18]. Dividends - The Board proposed a final dividend of HK60 cents per share and a special final dividend of HK50 cents per share, subject to shareholder approval[17]. - The Board recommended a final dividend of HK$0.60 and a special final dividend of HK$0.50 per ordinary share, amounting to HK$662,795,000 and HK$552,329,000 respectively[88]. - An interim dividend of HK$0.28 per ordinary share was paid, totaling HK$303,206,000 during the year[88]. Sector Performance - The electronics sector showed recovery in the second half of 2019, driven by investments in 5G telecommunications and growth in automobile and home appliance consumption[16]. - The laminates division maintained its global leading position through an active sales strategy despite market challenges[16]. - The chemicals and property divisions reported declines in segment results due to lower average selling prices and reduced sales bookings, respectively[16]. - The laminates division's turnover declined by 5% to HK$16,351.5 million, with EBITDA down 21% to HK$2,790.4 million due to lower average selling prices compared to 2018[21]. - The PCB division recorded a 1% decrease in turnover to HK$9,623.2 million, while EBITDA increased by 4% to HK$1,096.0 million, driven by a higher proportion of high value-adding products[22]. - The chemicals division's turnover dropped by 17% to HK$13,427.8 million, with EBITDA down 36% to HK$1,364.0 million, impacted by declining average selling prices[23]. - The property division experienced a 30% decrease in turnover to HK$3,293.0 million, with EBITDA down 10% to HK$1,947.7 million, primarily due to housing control measures in mainland China[26]. Financial Position - Net asset value per share increased by 4% to HK$45.4 from HK$43.7[11]. - Net gearing improved to 31% from 37% year-on-year[11]. - The Group's net current assets as of December 31, 2019, were approximately HK$22,757.5 million, down from HK$25,502.1 million in 2018, with a current ratio of 2.04[28]. - The net working capital cycle increased from 42 days in 2018 to 54 days in 2019, with inventory turnover days at 34 days and trade receivables turnover days at 60 days[28]. - The Group's net debt ratio decreased to approximately 31% as of December 31, 2019, down from 37% in 2018[31]. - The proportion of short-term to long-term borrowings was 32% to 68% as of December 31, 2019, compared to 26% to 74% in 2018[31]. Investments and Capacity - The Group invested approximately HK$2.5 billion in new production capacity and HK$3.4 billion in property construction expenses during the year[30]. - The Group has resumed work at all Mainland plants, with most returning to normal production levels[41]. - The first phase of new capacity for glass epoxy laminates in Shaoguan will have a monthly capacity of 400,000 sheets and is set to enter trial production in the first half of 2020[42]. - The Kau To project in Shatin, Hong Kong is expected to be completed and delivered in the first half of this year, contributing to sales revenue[46]. - The commercial property connected to the High Speed Rail Station in Kunshan, Jiangsu Province is nearing completion, with leasing commitments from core tenants, which will enhance rental income growth[46]. Strategic Focus - The Group is focused on cash flow management, aiming to lower its gearing ratio and build a robust balance sheet for substantial growth[46]. - The Group aims to achieve significant growth by leveraging its vertically integrated supply chain cost advantages[46]. - The Group is dedicated to securing existing sales channels and exploring new avenues to cope with market fluctuations[46]. - The management team emphasizes high efficiency and operational maturity to maintain an industry-leading position[46]. - The chemical sector will optimize resource utilization and enhance environmental protection, with new production lines for caustic soda and epoxy chloropropane in Hengyang, Hunan Province expected to contribute throughout the year[47]. - Domestic economic resilience is anticipated to boost demand for chemical products as infrastructure investments recover post-pandemic[47]. Governance and Management - The company has a strong board of independent non-executive directors, enhancing governance and oversight[64]. - The management team includes individuals with diverse backgrounds and expertise, contributing to strategic planning and operational efficiency[60]. - The financial management is overseen by Mr. Chan Mau Sang, who has been with the company since 1996 and serves as the Chief Financial Officer in China[60]. - The board's composition reflects a commitment to corporate governance and accountability, with members holding various leadership roles in community and professional organizations[61]. Risks and Compliance - The Group faces significant risks including product defects, customer contract variability, and intense industry competition, which may adversely affect its operations and financial condition[71][74][78]. - Recent global market fluctuations and economic conditions, particularly the slowdown in the PRC economy and the impact of COVID-19, could lead to reduced demand for the Group's products[80]. - The Group is committed to environmental sustainability and complies with relevant laws and regulations regarding environmental protection[81]. - The Group has obtained all necessary approvals and permits for its business operations, with no material breaches of laws and regulations reported for the year ended December 31, 2019[82]. - The Group has implemented internal controls and monitoring measures to ensure compliance with various laws and regulations[85]. Shareholder Information - The Company’s directors are eligible for re-election at the forthcoming annual general meeting, ensuring continuity in leadership[130]. - The Company’s share premium and special surplus account are also available for distribution to shareholders, contingent on the ability to pay debts as they fall due[128]. - The total issued share capital of the Company remains stable, with no significant changes reported in the year[134]. - The company maintained a register of substantial shareholders, which included interests disclosed by certain directors[173]. Connected Transactions - The company continues to engage in connected transactions with substantial shareholders, ensuring compliance with regulatory requirements[180]. - The annual caps for the KHL/Hallgain Purchase Framework Agreement for the years ending December 31, 2020, 2021, and 2022 are HK$610 million, HK$640 million, and HK$672 million, respectively[195]. - The KHL/Hallgain Purchase Framework Agreement was established to purchase materials for PCB production, including copper balls and drill bits, for a term of three years starting January 1, 2020[195]. - The KLHL/Hallgain Supply Framework Agreement was in effect from January 1, 2017, to December 31, 2019, for the supply of copper and laminates, with quantities to be determined by individual orders[195].