Financial Performance - Revenue for the year ended December 31, 2020, was HK$22,171,710, a decrease of 1.6% from HK$22,532,499 in 2019[7] - Gross profit increased by 12.2% to HK$2,048,801 compared to HK$1,825,411 in the previous year[7] - Profit for the year attributable to owners of the Company was HK$502,287, down 10.7% from HK$562,456 in 2019[7] - EBITDA for the year was HK$2,481,149, reflecting an increase of 8.4% from HK$2,288,349 in 2019[7] - Basic earnings per share (EPS) decreased to 15.27 HK cents, down 10.7% from 17.10 HK cents in 2019[7] - The Group's revenue for 2020 was HK$22.2 billion, a decrease of approximately 1.6% compared to 2019, with smartphone-related products declining by 9.7% year-on-year[23] - Profit attributable to owners of the Company decreased by approximately 10.7% to approximately HK$502.3 million in 2020, impacted by a one-off provision of approximately HK$282 million for receivables[25] - The Group's profit before tax for the year was HK$738,692[51] - The gross profit margin increased to approximately 9.2% in 2020, up from 8.1% in 2019, while the net profit margin decreased to 2.3% from 2.5%[38] - Other income increased by approximately 6.1% or HK$9 million to approximately HK$155 million, primarily due to compensation income received in 2020[67] Revenue Breakdown - Revenue breakdown shows 36% from electronic consumer products and 64% from LCD products in 2020[12] - The geographical revenue distribution indicates 80% from China, 6% from Europe, and 3% from Hong Kong in 2020[11] - The LCD business, including touch products, accounted for about 64% of the Group's revenue in 2020, while other businesses accounted for 36%[41] - External sales for LCD products were HK$14,247,960, while consumer products generated HK$7,923,750, totaling HK$22,171,710 in consolidated revenue[51] - The revenue from external customers in the PRC was HK$17,748,804, an increase from HK$15,631,008 in 2019[55] Operational Developments - The fifth generation TFT-LCD production plant in Shanwei entered mass production in Q1 2020, contributing to reduced production costs for TFT-LCD screens[30] - Another fifth generation TFT-LCD production plant in Sichuan commenced full-scale trial operation in late 2020 and is expected to enter mass production in 2021[30] - The non-smartphone related products business, particularly in industrial, medical, and IoT sectors, continued to grow by 11.6% year-on-year in 2020[23] - The Group invested approximately HK$876 million in research and development in 2020, compared to HK$809 million in 2019[39] - The Group acquired plant and machinery amounting to HK$275,407,000 and furniture, fixtures, and equipment amounting to HK$49,109,000 to expand manufacturing capacity in Shan Wei City, Guangdong Province, and Meishan City, Sichuan Province[131] Dividends and Shareholder Returns - The company does not recommend the payment of a final dividend for the year ended December 31, 2020[8] - No interim or final dividends were declared or paid for the year ended December 31, 2020[37] - The total dividend payout ratio for the year ended 31 December 2020 was zero, with no final or interim dividends declared[112] - The Company has not declared any dividends for the fiscal year, indicating a focus on reinvestment and growth strategies[131] Legal Matters - A wholly owned subsidiary faced a legal claim for approximately US$23.9 million (equivalent to approximately HK$186.4 million) regarding alleged defective goods[109] - A settlement agreement was reached in December 2020, requiring the subsidiary to deliver products under pre-agreed terms, with claims deemed settled upon completion[110] - The company received three civil lawsuits claiming patent infringement, with total damages sought amounting to RMB 150 million[107] - The legal proceedings related to the patent infringement claims were dismissed, resulting in no compensation payable by the group[107] Management and Governance - The Group's management team includes experienced professionals with extensive backgrounds in finance and accounting, enhancing corporate governance[127] - The Company has established a Remuneration Committee and a Nomination Committee in accordance with the relevant requirements of the Code[174] - The Audit Committee comprises independent non-executive directors and meets at least four times a year[171] - The Board is responsible for the Company's corporate governance and financial performance[186] Financial Position - Total assets for the Group as of December 31, 2020, were HK$26.5 billion, with total liabilities amounting to HK$16.1 billion[17] - The Group's net current liabilities improved to approximately HK$3,303 million as of December 31, 2020, from HK$3,840 million in 2019, with the current ratio increasing to 0.77 times[95] - The Group's gearing ratio decreased to approximately 52% as of December 31, 2020, down from 70% at the end of 2019[96] - As of December 31, 2020, the company's distributable reserves amounted to HK$1,679,033,000, an increase from HK$1,637,774,000 in 2019, reflecting a growth of approximately 2.56%[132] Employee and Corporate Social Responsibility - Total staff costs for 2020 were approximately HK$1.66 billion, with around 16,000 employees in the PRC and about 100 in Hong Kong[102] - The Group made charitable and other donations amounting to HK$225,000 during the year[183]
信利国际(00732) - 2020 - 年度财报