ASMPT(HK:00522)2020-04-02 09:39Financial Performance - The group's revenue for the fiscal year 2019 was HKD 15.88 billion, a decrease of 18.8% compared to HKD 19.55 billion in 2018[10]. - Profit for the fiscal year 2019 was HKD 622.4 million, down 71.9% from HKD 2.21 billion in 2018[11]. - The earnings per share for 2019 was HKD 1.52, compared to HKD 5.47 in 2018[11]. - The order intake for the year was USD 2.02 billion, a decrease of 21.5% from the previous year[11]. - The company achieved a gross margin of 34.8% for the year, which is a decrease of 326 basis points compared to the previous year[22]. - In the second half of 2019, revenue increased by 18.3% compared to the first half, and profit rose by 149.1%[23]. - The total new orders amounted to USD 2.02 billion, representing a decline of 21.5% year-on-year[22]. - The company reported a profit before tax of HKD 975,734 thousand, a significant decline of 67.2% compared to HKD 2,973,156 thousand in 2018[156]. - Net profit for the year was HKD 622,378 thousand, down 71.8% from HKD 2,211,728 thousand in 2018[157]. - Total comprehensive income for the year was HKD 453,067 thousand, down 76.7% from HKD 1,941,901 thousand in 2018[157]. Cash and Liquidity - The cash and bank deposits at the end of 2019 amounted to HKD 2.33 billion, up from HKD 2.25 billion in 2018[14]. - The current ratio as of December 31, 2019, was 3.02, up from 1.95 in 2018, indicating improved liquidity[45]. - The company’s cash and cash equivalents at year-end increased to HKD 2,317,543 from HKD 2,240,022 in 2018, an increase of 3.5%[163]. - The company redeemed all outstanding convertible bonds amounting to HKD 2.25 billion and arranged a HKD 2.5 billion floating-rate syndicated loan for this purpose[45]. Dividends - The company plans to maintain a progressive dividend policy, proposing a final dividend of HKD 0.70 per share for 2019[13]. - The total dividend for 2019 was HKD 2.00 per share, down from HKD 2.70 per share in 2018, with a payout ratio of 132%[46]. - The company plans to pay a final dividend of HKD 0.70 per share, down from HKD 1.40 in 2018, resulting in a total annual dividend of HKD 2.00 per share for 2019[21]. Operational Highlights - ASM Pacific Technology Limited reported a revenue of HKD 15.88 billion (USD 2.03 billion) for the fiscal year 2019, a decrease of 18.8% from HKD 19.55 billion (USD 2.49 billion) in the previous year[20]. - The company has expanded its production network in Malaysia, with the new facility expected to double local production capacity[20]. - ASMPT has signed an agreement with the Jiujiang government to build a factory in the Jiujiang Economic and Technological Development Zone to meet the growing demand for supply chain localization in China[20]. - The company has successfully implemented measures to focus on high-growth markets and adjust operations to reduce costs amid challenging economic conditions[23]. Market and Customer Insights - The group's revenue from the top five customers accounted for 15.3% in 2019, down from 18.0% in 2018, with 80% of revenue coming from 200 customers[28]. - The advanced packaging segment contributed to revenue growth, driven by strong demand in China and the 5G infrastructure development, resulting in double-digit growth[30]. - The automotive segment remained the second-largest application market despite a slowdown in the automotive industry[28]. - The group expects improved demand levels in major markets, particularly in China, due to local production trends supported by government policies[30]. Research and Development - ASMPT's Hong Kong R&D center is the largest among its ten global R&D centers, with over 50% of its 1,300 employees engaged in R&D activities[20]. - The company has a strong focus on research and development in Epitaxy and Thermal ALD product lines, which are critical for semiconductor manufacturing[70]. - The company aims to leverage its technological expertise to drive innovation in semiconductor manufacturing processes[70]. Environmental and Social Responsibility - The company achieved a 22% reduction in total electricity consumption in its Singapore operations, saving 923 million watt-hours annually, with a payback period of less than one year[137]. - The environmental management systems at major business locations in China, Germany, the UK, Singapore, and Malaysia are certified annually under ISO 14001[137]. - The group contributed approximately 25,000 hours of volunteer service to community initiatives in 2019, participating in over 160 corporate social responsibility activities[142]. - The company has identified four pillars for contributing to the United Nations Sustainable Development Goals: employee development, community support, value creation through innovation, and environmental impact management[137]. Governance and Management - The board consists of nine directors, with one female member, ensuring diversity in expertise and background[91]. - The company has adopted a nomination policy to ensure the board possesses the necessary skills and experience to meet business needs[99]. - The management team is committed to maintaining high standards of corporate governance and financial oversight[69]. - The company has established a formal and transparent procedure for determining the remuneration policy for executive directors[114]. Financial Reporting and Compliance - The company’s financial performance summary and future business development discussions are available in the annual report, highlighting key performance indicators[59]. - The internal audit department operates independently and regularly audits the effectiveness of financial, operational, and compliance controls[119]. - The company has established a shareholder communication policy to provide timely and accessible information regarding its financial performance and strategic goals[130]. - The group recognizes revenue upon the transfer of control of goods or services to customers, in accordance with HKFRS 15[189].