Financial Performance - The Group's turnover for 2020 was HK$4.7 billion, reflecting a decrease of approximately 10% compared to 2019[9]. - Profit attributable to shareholders for 2020 was HK$101.2 million, an increase from HK$64.4 million in 2019[9]. - The Industrial Products Trading and Distribution Division's turnover was HK$2.2 billion, representing an increase of approximately 14% compared to last year[12]. - The OEM Manufacturing Division's turnover decreased by approximately 25% to HK$2.5 billion for 2020[15]. - Turnover for the year ended 31 December 2020 was HK$4,716,172, a decrease from HK$5,258,296 in 2019, representing a decline of approximately 10.3%[47]. - Profit attributable to owners of the Company for 2020 was HK$101,185, an increase of 57.2% compared to HK$64,383 in 2019[47]. - Total assets as of 31 December 2020 amounted to HK$3,285,131, down from HK$3,374,282 in 2019, reflecting a decrease of about 2.6%[47]. - Total liabilities decreased to HK$1,488,813 in 2020 from HK$1,709,645 in 2019, a reduction of about 13.0%[47]. - The Company’s financial performance indicates resilience despite the challenges faced in 2020, with a significant recovery in profit margins[47]. Profitability Metrics - Operating profit margin increased to 3.0% in 2020 from 2.3% in 2019, a change of +0.7 percentage points[41]. - Net profit margin improved to 2.5% in 2020, up from 1.3% in 2019, representing a +1.2 percentage point increase[41]. - Return on equity rose to 6.5% in 2020, an increase of +2.4 percentage points compared to 4.1% in 2019[41]. - Earnings per share increased by 57.1% to 13.87 Hong Kong cents in 2020, up from 8.83 Hong Kong cents in 2019[44]. Cash and Equity Position - The Group's consolidated net cash as of December 31, 2020, amounted to HK$232 million, with total equity of HK$1,796 million, resulting in a nil gearing ratio[16]. - Net debts to total equity ratio was 2% in 2020, down from 12.2% in 2019[44]. - Borrowings to total equity ratio decreased to 3% in 2020 from 22.6% in 2019, a reduction of -19.0 percentage points[44]. - Current ratio improved to 1.9 times in 2020, up from 1.7 times in 2019, an increase of +0.2[44]. - Equity attributable to owners of the Company increased to HK$1,711,498 in 2020 from HK$1,594,211 in 2019, marking an increase of approximately 7.4%[47]. Future Outlook - The Group expects a slowdown in demand for industrial products in the current year following unexpectedly high demand in the second half of 2020[35]. - The Group's OEM Manufacturing Division is anticipated to perform better than last year, given the current level of orders on hand[36]. Corporate Governance and Management - Vinci Wong has been the director and general manager of 3 Kings Medical since December 1, 2010, focusing on healthcare and Chinese medicine[56]. - Victor Chang has been with the Group since 2004 and is responsible for sales and marketing strategy at WKK Distribution Limited[59]. - Hamed Hassan El-Abd has been a director since May 2001 and is currently the Chairman of the Product Development Committee at WKK Distribution Limited[62]. - Andrew Hsu has over 35 years of experience in high technology equipment trading and has been a director since January 2009[63]. - Philip Tse has been a director since March 1990 and is the Chairman of both the Audit Committee and the Remuneration Committee[67]. - The leadership team includes family connections, with Vinci Wong being the son of Executive Director Senta Wong and brother-in-law to Victor Chang[56][59]. Shareholder Information - The Board of Directors recommends a final dividend of HK$0.06 per share for the year ended 31 December 2020, compared to no dividend in 2019[124]. - The Group's reserves available for distribution to shareholders amounted to HK$109,815,000 as of the balance sheet date, an increase from HK$97,867,000 in 2019[130]. - 40% of the company's turnover and 33% of purchases were attributed to its five largest customers and suppliers, respectively[139]. - The largest customer and supplier accounted for 15% and 10% of turnover and purchases, respectively[139]. Environmental and Social Responsibility - The Group is committed to sustainable development and has established a green council for environmental protection activities[21]. - The Group's environmental policies and compliance with relevant laws are discussed in the Environmental, Social and Governance Report[121]. - The group made charitable donations totaling approximately HK$1,351,000 during the year[138]. Share Option Scheme - The new Share Option Scheme was adopted on June 22, 2016, to motivate eligible participants and retain talent for long-term growth[169]. - The maximum number of shares issuable under the options to each participant in any 12-month period must not exceed 1% of the shares in issue unless approved by shareholders[175]. - The New Scheme aims to incentivize eligible participants to enhance performance and efficiency for the benefit of the group[173]. - As of December 31, 2020, the total outstanding share options amounted to 68,700,000, after accounting for 1,450,000 options that were cancelled or lapsed during the year[181].
WKK INTL (HOLD)(00532) - 2020 - 年度财报