2019-04-02 04:02Financial Performance - The company reported a revenue increase of 15.8% to $7,021 million in 2018, marking the ninth consecutive year of record sales[11]. - Net profit rose by 17.4% to $552 million, with basic earnings per share increasing by 17.5% to 30.16 cents[12]. - The gross profit margin improved for the tenth consecutive year, rising from 36.7% in 2017 to 37.2% in 2018[13]. - Operating profit before interest and tax increased by 17.0% to $607 million, with an operating profit margin growth of 10 basis points to 8.7%[13]. - The group's total revenue for the year reached $7 billion, a 15.8% increase from $6.1 billion in 2017[125]. - Shareholders' profit increased to $552 million, up 17.4% from $470 million in 2017, with basic earnings per share rising from 25.66 cents to 30.16 cents[125]. - Total operating expenses for the year were $2,014,000,000, compared to $1,712,000,000 in 2017, representing 28.7% of revenue (2017: 28.2%)[128]. - The electric tools business accounted for 85.6% of total sales, with global sales reaching $6 billion, a 17.0% increase compared to the same period in 2017[100]. Business Growth and Market Expansion - Milwaukee tools business experienced a remarkable sales increase of 28.2%, contributing significantly to overall growth[6]. - The RYOBI ONE+ business recorded double-digit sales growth, reflecting strong market demand[6]. - The floor care and equipment segment showed significant improvement with a sales increase of 9.3%[6]. - The company is actively expanding its business into new markets, including South Korea, Malaysia, and Latin America, promoting the benefits of rechargeable tools for safety and productivity[22]. - The company has established a strong business foundation in the U.S. and is building vibrant marketing networks in key regions, including Canada, Australia, New Zealand, Western Europe, and Eastern Europe[22]. - The company is focused on expanding into high-growth potential markets outside the United States[129]. Product Innovation and Development - The company has strategically invested heavily in R&D to develop innovative products, transforming user experiences in home and construction settings[15]. - The company introduced new rechargeable products, driving strong internal growth and achieving record performance[6]. - The Milwaukee power tools segment has shown strong growth, focusing on advanced cordless tools and accessories for professional tradespeople[19]. - The RYOBI ONE+ product line has established the largest cordless DIY system globally, enhancing market penetration and user convenience[20]. - The introduction of the ONEPWR platform allows for interchangeable lithium battery systems across various cleaning products, laying a solid foundation for future growth[20]. - The company maintains a rigorous product development process to ensure high-quality, innovative products are launched to the market[21]. - The company is focused on innovative rechargeable technology and new product solutions for DIY enthusiasts, professionals, and industrial users[28]. Sustainability and Corporate Governance - The company is committed to sustainable development and reducing environmental impact as part of its corporate governance[17]. - The company is committed to maintaining leadership in environmental, social, and governance (ESG) standards, aiming to exceed expectations in these areas[24]. - The company established an ESG working committee to oversee sustainable development strategies and monitor performance against objectives[130]. - The company has developed a comprehensive governance framework to enhance its sustainable development strategy and stakeholder confidence[176]. - The company is committed to ensuring compliance with all relevant environmental laws and regulations, which significantly impact its operations and performance[184]. Leadership and Human Resources - The leadership team is recognized as one of the best in the industry, driving the company's performance and competitive advantage through clear goals and a proactive approach[23]. - The company has invested in recruiting top graduates from over 75 universities globally, planning to hire more than 780 graduates in 2019 to support its leadership development program[24]. - The leadership development program has already produced 12 senior executives at the vice president level, with more expected to rise through the ranks[24]. - The company emphasizes rigorous selection processes to identify high-potential talent, which is considered a core competitive advantage[24]. - The company employed 23,279 staff as of December 31, 2018, compared to 22,033 in 2017[129]. Shareholder Engagement and Financial Management - The company proposed a final dividend of HKD 0.50 per share (approximately USD 0.0644), totaling around USD 117.666 million for the year ended December 31, 2018[130]. - The total dividend for the year 2018 amounted to HKD 0.88 per share (approximately USD 0.1133), compared to HKD 0.675 per share (approximately USD 0.0869) in 2017[130]. - The company repurchased a total of 8,600,000 shares in 2018, with an expenditure of USD 38.608 million accounted for retained earnings[130]. - The share repurchase aimed to enhance the company's net asset value per share and earnings per share, benefiting all shareholders[130]. - The company has established a shareholder communication policy to ensure equal opportunities for all shareholders and potential investors to access public information[164]. Risk Management and Compliance - The company has established a comprehensive risk management system to identify and address relevant risks[129]. - The company conducts biannual compliance audits across all business units to ensure adherence to local laws and regulations[180]. - The company reported 17 cases through its compliance hotline in 2018, with 16 complaints from employees and one from a supplier, all addressed promptly[182]. - The company aims to maintain effective communication and ongoing dialogue with shareholders and investors, particularly through financial reports and annual general meetings[164]. Environmental Impact and Initiatives - The company aims to reduce packaging materials and water resource consumption in its operations and supply chain[186]. - The company is committed to exploring and adopting less polluting renewable energy sources to reduce greenhouse gas emissions[192]. - The company has set environmental management goals to effectively measure and enhance performance across its operations[186]. - The company has established strategic partnerships with NGOs to enhance community engagement and social impact[179].