Financial Performance - The company's revenue for the year ended December 31, 2018, increased to HKD 25,273.9 million, representing a 30% growth compared to HKD 19,461.9 million in 2017[6]. - The profit attributable to shareholders for 2018 was HKD 313.1 million, a 3% increase from HKD 303.0 million in the previous year[6]. - Basic earnings per share rose to 50.03 HKD cents, up 3% from 48.50 HKD cents in 2017[6]. - The gross profit for the year was HKD 923.9 million, a 14% increase from HKD 809.6 million in 2017, with a gross margin of 3.7%[12]. - The group recorded a record sales revenue of HKD 24.99 billion in 2018, an increase of 30% from HKD 19.17 billion in the previous year[14]. - The global smartphone market saw a total shipment of 1.4 billion units in 2018, a decline of 4% compared to 2017, while the group achieved significant revenue growth in the mobile phone segment[15]. - The company reported a decrease in distribution and selling expenses to HKD 100,400 thousand from HKD 110,894 thousand, a reduction of approximately 9.5%[110]. - Administrative expenses increased to HKD 307,568 thousand from HKD 273,501 thousand, representing an increase of about 12.5%[110]. - The company's profit before tax for 2018 was HKD 459,987,000, an increase of 8.3% from HKD 424,291,000 in 2017[123]. - The company reported a significant increase in investment properties, which rose to HKD 738,270,000 in 2018 from HKD 580,660,000 in 2017, a growth of 27.14%[112]. Dividends and Shareholder Returns - The board proposed a final dividend of 16 HKD cents per share, bringing the total dividend for the year to 21 HKD cents, up from 20 HKD cents in 2017[13]. - The board proposed a final dividend of HKD 0.16 per share to shareholders listed on June 26, 2019[57]. - The company has adopted a dividend policy prioritizing cash distributions to shareholders, subject to board discretion and shareholder approval[58]. - The company declared dividends amounting to HKD 101,832,000 for the year[115]. - The company declared dividends amounting to HKD 126,419,000 for the year[121]. Corporate Governance - The board consists of four executive directors and four independent non-executive directors, with the chairman being Mr. Yim Yu-lin[33]. - The company is committed to high-level corporate governance, adhering to the applicable code provisions of the Corporate Governance Code as of December 31, 2018[32]. - The board is responsible for monitoring the group's operational and financial performance, ensuring accountability to shareholders[33]. - The company has received annual confirmations of independence from all four independent non-executive directors as per the Listing Rules[34]. - The board consists of eight directors, with four being independent non-executive directors, promoting critical review and control of management processes[44]. - The board has achieved measurable diversity goals, with at least one-third of members being independent non-executive directors and at least one member possessing accounting or other professional qualifications[45]. - The board held four meetings during the year, with all directors attending at least 75% of the meetings[47]. - The company emphasizes the importance of corporate strategy formulation and internal controls to ensure sustainable development[33]. Operational Efficiency and Market Presence - The company expanded its sales network and improved operational efficiency, contributing to strong performance in its components team[12]. - The company serves over 100 well-known semiconductor suppliers and more than 10,000 customers across various sectors[3]. - The company has over 20 sales offices in China, Hong Kong, Taiwan, and Japan, enhancing its market presence[3]. - The group successfully signed bulk procurement agreements with a leading luxury hotel group managing over 100 hotels globally, expanding its footprint beyond Greater China[17]. - The group launched a series of new products, including a 120-inch 4K display and a new generation of washing machines, which received positive market feedback[18]. Risk Management and Compliance - The group’s current ratio improved to 110% as of December 31, 2018, compared to 104% in the previous year, while the net capital debt ratio decreased to 121% from 175%[22]. - The risk management and internal control systems were reviewed and deemed effective, with no significant issues reported in financial, operational, or compliance controls[49]. - The company has established a management structure to protect assets and ensure compliance with relevant laws and regulations[48]. - The board is responsible for reviewing and monitoring the company's compliance with legal and regulatory requirements[45]. - The company faces foreign exchange risks due to sales and purchases in foreign currencies, primarily USD and RMB, and has established forward contracts to hedge these risks[69]. Employee and Management Structure - The group employed approximately 650 employees in Greater China as of December 31, 2018, ensuring competitive compensation and benefits[24]. - The management team regularly reviews overall business performance and coordinates resources for financial and operational decisions[34]. - The executive directors and senior management have over 20 years of experience in the electronics industry, contributing to operational and management expertise[31]. - The company has a diverse management team with educational backgrounds in business administration, law, and engineering, enhancing its operational capabilities[31]. Financial Position and Assets - Non-current assets increased to HKD 1,603,557,000 in 2018 from HKD 1,323,448,000 in 2017, marking a growth of 21.14%[112]. - The company's net asset value increased to HKD 1,690,343,000 in 2018 from HKD 1,453,855,000 in 2017, reflecting a growth of 16.24%[113]. - The group’s total assets reached HKD 1,690,343,000, an increase from HKD 1,534,005,000 in the previous year[118]. - The group reported a non-current asset value of HKD 61,027,000 for financial assets measured at fair value through profit or loss as of January 1, 2018[150]. - The group recognized contract liabilities of HKD 22,931,000 as part of the adjustments made to the financial statements[150]. Accounting Policies and Standards - The group has adopted Hong Kong Financial Reporting Standard 15, which replaces HKAS 18 and HKAS 11, with cumulative effects recognized on January 1, 2018[129]. - The group has also applied HKFRS 9, which introduces new requirements for the classification and measurement of financial assets and liabilities[137]. - The application of HKFRS 16 may lead to changes in measurement, presentation, and disclosure, with the group opting for a practical expedient method[157]. - The financial statements are prepared based on historical cost, except for certain properties and financial instruments measured at revalued amounts or fair value[158]. - The group will recognize the cumulative impact of the initial application of HKFRS 16 on retained earnings without restating comparative information[157]. Environmental Responsibility - The company emphasizes environmental responsibility by implementing energy-efficient practices and using eco-friendly materials[66].
S.A.S. DRAGON(01184) - 2018 - 年度财报