ASMPT(HK:00522)2021-04-01 09:14Financial Performance - ASM Pacific Technology Limited reported revenue of HKD 14,700,250, an increase from HKD 14,030,169 in the previous year, representing a growth of approximately 4.7%[7] - The gross profit for the year was HKD 5,138,881, compared to HKD 5,336,759 in 2019, indicating a decrease of about 3.7%[7] - The company achieved a profit before tax of HKD 826,080, down from HKD 1,028,997 in the previous year, reflecting a decline of approximately 19.7%[7] - The net profit attributable to shareholders was HKD 636,612, compared to HKD 697,287 in 2019, a decrease of about 8.7%[7] - Basic earnings per share from continuing operations was HKD 1.54, down from HKD 1.71 in the previous year, representing a decline of approximately 9.9%[7] - ASMPT's total revenue, including discontinued operations, was HKD 16,887,244, compared to HKD 15,883,042 in the previous year, marking an increase of approximately 6.3%[7] - The company reported a total comprehensive income of HKD 1,630,503 for the year, compared to HKD 622,378 in the previous year, indicating significant growth[7] - The company reported a revenue of HKD 16.89 billion (USD 2.18 billion) for the fiscal year ending December 31, 2020, representing a 6.3% increase from HKD 15.88 billion (USD 2.03 billion) in the previous year[18] - The net profit for the year was HKD 1.63 billion, a significant increase of 162.0% compared to HKD 620 million in the prior year, with basic earnings per share rising to HKD 3.97 from HKD 1.52[18] Research and Development - ASMPT continues to invest in research and development to enhance its product offerings and maintain its competitive edge in the semiconductor and electronics manufacturing sectors[8] - The company continues to invest heavily in research and development to drive innovation and maintain a competitive edge in the electronic manufacturing sector[14] - The company emphasized the importance of digital transformation across industries, which is expected to drive strong demand for semiconductors, benefiting the company[15] - The company has established a comprehensive product portfolio and extensive technical expertise in advanced packaging (AP) and hybrid integration (HI) to meet stringent customer requirements[55] Strategic Initiatives - The company has retained 44.44% ownership in the newly formed joint venture, Advanced Packaging Materials International Limited (AAMI), which is expected to enhance the growth of its materials division[13] - The company has strategically invested in SKT Max in China to strengthen its core competitiveness in manufacturing execution software, a key growth area[12] - The company plans to streamline and enhance its product portfolio to increase market share in the mid and high-end segments of the embedding equipment market[16] - The company is actively pursuing market expansion opportunities and potential acquisitions to strengthen its position in the semiconductor industry[82] Financial Health - The company achieved a record high in cash and bank deposits totaling HKD 4.46 billion, providing a significant buffer against economic uncertainties[14] - The company held cash and bank deposits of HKD 4.46 billion and loans of HKD 3.05 billion, resulting in a net cash position of HKD 1.41 billion[31] - The company’s total assets increased to HKD 17,828,129 in 2020 from HKD 16,413,288 in 2019, marking an increase of 8.6%[164] - Cash and cash equivalents rose significantly to HKD 4,450,564, up from HKD 2,317,543 in 2019, an increase of 92.0%[164] Market Trends - The automotive market is expected to be a major driver of continuous growth for the company, with a projected CAGR of 21% for sensors, ADAS computing systems, and automotive lens modules, reaching a market size of $22.4 billion by 2025[57] - The ongoing deployment of 5G infrastructure is driving demand for applications in AR/VR, autonomous vehicles, IoT, and AI, which will increase the importance of the company's core products and services[56] - The semiconductor industry is projected to experience broad growth of 8% in 2021, driven by accelerated digital transformation trends[62] Corporate Governance - The company is committed to continuously improving its corporate governance practices to protect shareholder interests and enhance company value[98] - The board has established various committees to oversee its governance responsibilities effectively[103] - The company has adopted a diversity policy to enhance performance quality, considering various factors such as skills, regional and industry experience, and gender[102] - The board consists of nine directors, with two being female, ensuring diversity in gender, culture, education, and professional experience[99] Employee Engagement - ASM Pacific Technology Limited's global workforce includes approximately 11,600 permanent employees, increasing to 13,300 when including temporary and contracted staff, with about 25% being women[144] - The company has established a talent committee to lead and implement its talent strategy, focusing on leadership development and collaboration with educational institutions[145] - The company has implemented a systematic approach to employee training and development, highlighting its commitment to nurturing talent[145] Sustainability and Corporate Social Responsibility - ASMPT's environmental management systems at major locations have received ISO 14001 certification, emphasizing energy efficiency and pollution prevention[143] - The company aims to align its business operations with four United Nations Sustainable Development Goals (UN SDGs), contributing meaningfully to sustainability[142] - The group contributed approximately 12,747 hours of volunteer service in 2020, a decrease of nearly 50% compared to 2019, due to the global pandemic[149] Risk Management - The company is responsible for preparing financial statements in accordance with the Hong Kong Financial Reporting Standards and the Companies Ordinance[158] - The board is responsible for assessing the nature and extent of risks the group is willing to accept to achieve strategic objectives, ensuring the establishment and maintenance of an effective risk management system[127] - The risk management framework is based on a "three lines of defense" model, providing a structured approach to managing strategic, operational, financial, and compliance risks[128]