Financial Performance - The Group's turnover for 2019 was HK$5.3 billion, reflecting a slight decrease of less than 1% compared to 2018[10]. - Profit attributable to shareholders for 2019 was HK$64.4 million, down from HK$82 million in 2018[10]. - The turnover of the Industrial Products Trading and Distribution Division was HK$1.9 billion, a decrease of approximately 11% compared to last year[12]. - Operating profit for the Industrial Products Trading and Distribution Division was HK$32.4 million, representing a reduction of approximately 69% compared to last year[12]. - The OEM Manufacturing Division's turnover increased by approximately 7% to HK$3.3 billion compared to last year[14]. - Operating profits for the OEM Manufacturing Division increased to HK$80 million from HK$31 million for last year[14]. - The trading of printed circuit board related products contributed the largest part of the Industrial Products Division's profit but suffered a reduction of approximately 22% in operating profits[12]. - A subsidiary in Taiwan recorded an increase of approximately 32% in operating profits compared to last year[12]. - Operations in the PRC suffered operating losses due to a significant drop in demand for industrial products as a result of the ongoing US-China trade war[12]. - Earnings per share decreased to 8.83 Hong Kong cents, down 21.4% from 11.23 Hong Kong cents[38]. - Total turnover for the year was HK$5,296 million, slightly up from HK$5,258 million[43]. - Profit attributable to owners of the Company was HK$64,383 thousand, a decrease from HK$82,106 thousand in the previous year[44]. - Total assets amounted to HK$3,374,282 thousand, down from HK$3,535,908 thousand[44]. - Total liabilities decreased to HK$1,709,645 thousand from HK$1,863,743 thousand[44]. - Equity attributable to owners of the Company was HK$1,594,211 thousand, a slight decrease from HK$1,602,277 thousand[44]. Financial Health - As of December 31, 2019, the Group's consolidated net borrowings amounted to HK$203 million, with total equity at HK$1,665 million, resulting in a net gearing ratio of 12.2%[1]. - The Group's net debts to total equity ratio improved to 12.2% in 2019 from 33.3% in 2018, reflecting better financial health[35]. - The Group's borrowings to total equity ratio decreased to 41.6% in 2019 from 52.4% in 2018, indicating a reduction in leverage[35]. - The Group has committed bank and other financing facilities totaling HK$2,473 million, of which HK$799 million was drawn down as of December 31, 2019[1]. Profitability Metrics - Operating profit margin declined to 2.3% in 2019 from 2.6% in 2018, and net profit margin decreased to 1.3% from 1.7%[35]. - Return on equity fell to 4.1% in 2019, down from 5.3% in 2018, indicating a decrease in profitability[35]. - The Group anticipates that both the Industrial Products Trading and Distribution Division and the OEM Manufacturing Division will not remain profitable in the coming year due to a significant drop in demand for industrial products[32]. Market Strategy and Outlook - The company is focusing on expanding its market presence and developing new products[38]. - Future outlook includes potential mergers and acquisitions to enhance growth strategies[38]. - The company is investing in new technologies to improve operational efficiency[38]. - The company is expanding its market presence in the Asia-Pacific region, targeting a growth rate of FF% in that market segment[5]. - Recent acquisitions are anticipated to enhance the company's product offerings and increase market share by GG%[6]. - The company is investing $HH million in research and development to drive innovation in its product line[7]. - The company plans to implement new marketing strategies aimed at increasing customer engagement and retention by JJ%[9]. - Overall, the company remains optimistic about future growth, with a strategic focus on sustainability and digital transformation[10]. Corporate Governance - The company is committed to maintaining high standards of corporate governance practices[191]. - The Company has maintained directors' liability insurance throughout the financial year to provide appropriate coverage for its Directors and subsidiaries[196]. - The consolidated financial statements for the year have been audited by PricewaterhouseCoopers, who are eligible for reappointment at the forthcoming annual general meeting[198]. - The Company aims to comply with all code provisions of the Corporate Governance Code as set out in Appendix 14 of the Listing Rules[199]. - Throughout the year ended 31 December 2019, the Company complied with most of the Code Provisions, with certain deviations explained in the report[200]. Shareholder Information - The Group's interim dividend for 2019 was HK$0.01 per share, down from HK$0.015 in 2018[115]. - The Board of Directors does not recommend a final dividend for the year ended December 31, 2019, compared to HK$0.05 per share in 2018[116]. - The Group's reserves available for distribution to shareholders amounted to HK$97,867,000 as of the balance sheet date, down from HK$139,062,000 in 2018[120]. - Charitable donations made by the Group during the year totaled approximately HK$1,578,000[125]. - 47% of turnover and 33% of purchases were attributable to the Group's five largest customers and suppliers, respectively[126]. - The largest customer and supplier accounted for 21% and 9% of turnover and purchases, respectively[126]. Leadership and Management - The Group's executive director, Wong Kwok-Wai, has over 40 years of experience in the semiconductor and OEM production sectors, indicating strong leadership in these areas[85]. - The Group's general manager of manufacturing operations in the PRC, Tang Kang, has over 20 years of experience in manufacturing, which enhances operational efficiency[87]. - The Group's general manager of WKK Electronic Equipment Limited, Lee Wai-Kong, has been responsible for marketing electronic products in Hong Kong and the PRC since 1989, showcasing a long-standing market presence[92]. - The Group's general manager of WKK PCB Trading Limited, Lui Kwok-Chak, has extensive experience in PCB manufacturing, which is crucial for product quality and innovation[93]. - The Group's general manager of Dongguan Nissin Plastic Products Co., Ltd., Hung Tacho, has over 30 years of experience in R&D and manufacturing, which supports product development initiatives[91]. - The Group's leadership team includes members with advanced degrees and professional qualifications, enhancing the company's strategic decision-making capabilities[84]. - The Group's emphasis on human resources and administration is led by Chung Yiu Ming, who has over 30 years of experience, ensuring effective management practices[82]. - The Group's commitment to product development is reflected in its leadership's extensive experience in engineering and manufacturing, which is vital for innovation[90]. - The Group's strategic focus on the semiconductor market is supported by its experienced management team, which is essential for maintaining competitive advantage[86]. Environmental and Social Responsibility - The Group has established a green council to lead and organize various environmental protection activities and programs[1]. - The Group's environmental policies and compliance with relevant laws are discussed in the Chairman's Statement and the Environmental, Social and Governance Report[114].
WKK INTL (HOLD)(00532) - 2019 - 年度财报