Financial Performance - Revenue for 2020 was HKD 20,164 million, representing a 10% increase from HKD 18,403 million in 2019[27]. - Profit attributable to owners for 2020 was HKD 262 million, an 11% increase from HKD 236 million in 2019[27]. - Basic earnings per share for 2020 were HKD 41.85, up 11% from HKD 37.78 in 2019[27]. - The group's revenue increased by 9.6% to HKD 20,164,341,000 for the year ended December 31, 2020, compared to HKD 18,402,901,000 in the previous year[34]. - Shareholders' profit attributable to the company increased by 10.8% to HKD 261,897,000, compared to HKD 236,435,000 in the previous year[34]. - The component team recorded sales revenue of HKD 19.95 billion, an increase of 11% from HKD 18.02 billion in the previous year[37]. - The net profit for the year was HKD 349,883 thousand, compared to HKD 316,997 thousand in 2019, reflecting an increase of approximately 10.3%[155]. - The total comprehensive income for the year was HKD 455,225 thousand, significantly higher than HKD 293,150 thousand in 2019, representing an increase of approximately 55.3%[155]. Dividends and Shareholder Returns - The company maintained a total dividend of HKD 21.00 per share, unchanged from the previous year[27]. - The total dividend for the year is proposed to be HKD 21.00 per share, consistent with the previous year[35]. - The company has adopted a dividend policy prioritizing cash dividends while considering overall business conditions, financial performance, and capital needs[97]. - The company proposed a final dividend of HKD 0.165 per share for shareholders on the register as of May 27, 2021[96]. Market Position and Strategy - The company has served over 100 well-known semiconductor suppliers and more than 10,000 customers in the Greater China region[32]. - The company has been ranked among the top 10 global semiconductor distributors by Gartner since 2018 and is the largest semiconductor distributor in China and Hong Kong[32]. - The group plans to focus on the automotive electronics market, which is expected to be the fastest-growing segment in the semiconductor industry[45]. - The group aims to leverage its strong financial position and local sales teams to maintain a competitive edge in the Greater China region[45]. Operational Highlights - Despite challenges from the global pandemic, the company achieved growth in both revenue and profit in 2020[33]. - The company focuses on electronic supply chain management services, including product design, development, procurement, quality assurance, and logistics management[20]. - The group employed around 450 employees in the Greater China region as of December 31, 2020, ensuring competitive compensation and benefits[52]. Financial Position and Ratios - As of December 31, 2020, the group's current ratio was 117%, slightly down from 118% on December 31, 2019[49]. - The net capital debt ratio decreased to 38% from 53% year-on-year, with net borrowings of approximately HKD 802,125,000 compared to HKD 970,612,000 in 2019[49]. - The accounts receivable turnover period increased to approximately 47 days from 38 days in 2019[49]. - The inventory turnover period and average accounts payable turnover period were approximately 34 days and 54 days, respectively, compared to 18 days and 27 days in 2019[49]. Corporate Governance - The board consists of 5 executive directors and 4 independent non-executive directors, with a total of 12 directors responsible for the company's strategic direction and financial performance[63]. - The company has adopted the standard code of conduct for securities trading by directors, confirming compliance throughout the review year[67]. - The company believes that all independent non-executive directors meet the independence criteria as defined by the listing rules[64]. - The board is responsible for ensuring that the company adheres to high standards of corporate governance, which is deemed essential for business development and shareholder protection[62]. Risk Management - The company faces various risks, including exchange rate risk, interest rate risk, credit risk, and liquidity risk[109]. - The company has established short-term foreign exchange forward contracts to hedge against foreign currency risks related to sales and procurement[51]. Environmental Responsibility - The company is committed to environmental responsibility by using LED lighting and eco-friendly materials[104]. Related Party Transactions - The total value of the group's ongoing related party transactions with Foxconn for the year ended December 31, 2020, includes purchases of electronic products amounting to HKD 1,986,605,000 and sales of electronic products amounting to HKD 1,671,841,000[134]. Audit and Compliance - The independent auditor confirmed that the consolidated financial statements fairly reflect the group's financial position as of December 31, 2020[143]. - The audit committee held two meetings in 2020 to review the group's interim and annual performance, financial reports, compliance procedures, and risk management systems[69]. Employee Compensation - The company continues to prioritize employee performance-based discretionary bonuses linked to financial results[52]. - For the fiscal year ending December 31, 2020, the remuneration for key management personnel ranged from HKD 1,000,000 or below (5 individuals), HKD 1,000,001 to HKD 1,500,000 (3 individuals), and over HKD 1,500,000 (3 individuals)[63].
S.A.S. DRAGON(01184) - 2020 - 年度财报