Financial Performance - The total revenue for the year 2020 was HKD 2,924.6 million, with a compound annual growth rate (CAGR) of 3.5% from 2016 to 2020[16]. - The company's revenue for the year ended December 31, 2020, was HKD 2,924.6 million, a decrease of 19.7% compared to HKD 3,640.2 million in 2019[37]. - The adjusted profit attributable to shareholders was HKD 313.4 million, down 45.6% from HKD 575.7 million in the previous year[37]. - The company reported a loss attributable to shareholders of HKD 148.2 million, primarily due to impairment losses on goodwill and other assets amounting to HKD 444.2 million[37]. - Free cash flow for the year was HKD 364.0 million, equivalent to 114.7% of the adjusted profit[37]. - The EBITDA for the year was HKD 356.7 million, a decline of 67.1% from HKD 1,082.8 million in 2019[34]. - The group's gross profit margin decreased to 26.2% from 31.1% in the previous year, a decline of 4.9%[54]. - The group reported a net loss attributable to shareholders of HKD 144.3 million, a decrease of 126.8% compared to a profit of HKD 539.0 million in 2019[52]. - The operating loss for the year was HKD 32.0 million, a decline of 104.6% from an operating profit of HKD 696.5 million in 2019[54]. Revenue Breakdown - The investment casting segment accounted for 44.7% of the group's revenue for the year ended December 31, 2020[21]. - Precision machining contributed 31.7% to the group's revenue for the year ended December 31, 2020[21]. - Sand casting represented 14.9% of the group's revenue for the year ended December 31, 2020[23]. - Surface treatment services accounted for 8.7% of the group's revenue for the year ended December 31, 2020[23]. - Revenue from the investment casting segment was HKD 1,307.0 million, down 22.3% year-on-year due to the impact of the pandemic on the aerospace market[39]. - Revenue from precision machining decreased by 17.2% to HKD 926.6 million, with significant recovery in the second half of the year[39]. - Revenue from the automotive sector decreased by 14.9% to HKD 1,394.2 million, with passenger vehicles down 21.1% and commercial vehicles down 2.1%[43]. - Revenue from the aerospace and medical sectors dropped significantly by 39.4% to HKD 272.1 million, with aerospace sales down 47.6%[43]. - Revenue from the Americas fell by 27.1% to HKD 1,160.5 million, while European revenue decreased by 22.2% to HKD 932.1 million[45]. - Revenue from the Chinese market increased by 1.5% to HKD 780.8 million, contrasting with declines in other regions[44]. Operational Highlights - The company operates 19 production facilities globally, with 14 currently operational and 5 under construction[20]. - The workforce includes over 6,100 employees, among which over 600 are engineers from around the world[18]. - The company serves over 1,000 customers from more than 30 countries and regions[18]. - The group operates four factories in China, one in Germany, and one in the Czech Republic for investment casting production[21]. - The group manufactures precision machining components in two factories in Turkey, one in China, and one in Mexico[21]. - The majority of surface treatment customers are from the Chinese passenger vehicle market, with a smaller portion from the Chinese aviation market[23]. - The group has an order backlog of HKD 2,623 million as of February 28, 2021, providing strong support for future business growth[50]. Strategic Initiatives - The company plans to develop new energy vehicle components in Turkey and Mexico, with production expected to start next year[46]. - The company is exploring new projects related to new energy vehicles to capitalize on market trends[46]. - The group plans to complete the first phase of its Mexico production facility, which is expected to generate over USD 150 million in annual revenue at full capacity[54]. - The group is implementing a "dual-source production" strategy to mitigate potential supply chain and tariff risks associated with geopolitical factors[50]. - The group continues to pursue a strategy of "global layout" and "local manufacturing" to strengthen its competitiveness in the North American market[50]. Corporate Governance - The company emphasizes high corporate governance standards to enhance shareholder value and ensure transparency and accountability[104]. - The company’s board consists of five executive directors and three independent non-executive directors, ensuring a strong level of independence[104]. - The audit committee is responsible for reviewing the company's financial controls, internal controls, and risk management systems[118]. - The board emphasizes the importance of corporate governance and seeks to enhance efficiency and profitability[106]. - The company has established a formal and transparent nomination policy for selecting and appointing new directors[112]. - The company has established a sustainable development committee to promote sustainability among internal and external stakeholders[125]. Shareholder Engagement - The company actively engages with shareholders and potential investors through various communication channels, including analyst briefings and investor meetings[98]. - The company maintained a dividend payout ratio of 25.0% over the past five years, reflecting its commitment to sustainable shareholder value creation[95]. - The company has a dividend policy to distribute no less than 25% of the distributable profits attributable to equity shareholders annually, subject to various factors[167]. - The company allows shareholders holding at least 10% of voting shares to request a special general meeting within two months of the request[144]. - The company has established a fair and transparent process for shareholders to exercise their rights and communicate effectively with the company[143]. Employee and Management Information - The total employee cost for the year ended December 31, 2020, was HKD 790.4 million, a decrease from HKD 965.0 million in 2019[88]. - The total remuneration for executive directors and senior management for the year ended December 31, 2020, amounted to HKD 13,865,000[128]. - The five highest-paid individuals in the group received total compensation of HKD 14,326,000 for the year ended December 31, 2020[131]. - The company has independent non-executive directors with extensive experience in finance, accounting, and investment management, enhancing corporate governance[154]. - The company’s board members participated in appropriate continuous professional development activities, ensuring compliance with the requirement of at least 15 hours of training[134]. Market and Industry Trends - Demand for high-emission standard parts for commercial vehicles is anticipated to rise due to stricter emission policies globally[46]. - The industrial sector faced challenges due to pandemic-related restrictions, but there was a rebound in hydraulic equipment sales in China during the second half of the year[46]. - Overall, the company experienced a decline in all end markets due to the adverse effects of the COVID-19 pandemic[42]. Financial Management - The group has adopted a prudent financial management approach to allocate sufficient financial resources to its subsidiaries at the lowest financial cost[87]. - The total working capital decreased to 914.2 million HKD as of December 31, 2020, from 1,010.1 million HKD in the previous year[67]. - The effective tax rate increased due to a 13.5 million HKD tax burden from foreign exchange gains and an 11.7 million HKD withholding tax provision for undistributed profits[66]. - The company has not encountered any significant difficulties or liquidity issues due to foreign exchange fluctuations as of December 31, 2020[87].
鹰普精密(01286) - 2020 - 年度财报