Financial Performance - The Group's turnover decreased from approximately HK$766.0 million in 2018 to approximately HK$650.4 million in 2019, representing a decrease of approximately 15.1%[14] - Gross profit was approximately HK$148.4 million in 2019, representing a decrease of approximately 17.0% from 2018[14] - Profit attributable to ordinary equity holders of the Company was approximately HK$55.9 million in 2019, representing a decrease of approximately 4.3% from 2018[14] - Profit before tax for 2019 was HK$68,056,000, down from HK$81,550,000 in 2018, reflecting a decline of 16.6%[27] - Basic and diluted earnings per share for 2019 were both HK23.3 cents, compared to HK24.3 cents in 2018, indicating a decrease of 4.1%[27] - The total assets as of December 31, 2019, were HK$847,150,000, down from HK$939,135,000 in 2018, representing a decline of 9.8%[28] - The company's net debts (excluding cash and bank balances) were HK$(76,631,000) in 2019, compared to HK$12,041,000 in 2018, indicating a significant increase in net debt[28] - EBITDA for 2019 amounted to approximately HK$103.6 million, down from approximately HK$117.4 million in the previous year[72] - The total employee benefit expense for the year ended December 31, 2019, was approximately HK$103.1 million, down from approximately HK$117.1 million in 2018[90] Market Conditions - The decline in net profit was primarily due to the instability of the global economy, resulting in a decrease in sales orders and a reduction in sales prices[14] - The PCB industry continues to face uncertainties, including the impact of COVID-19 and geopolitical tensions affecting global economic development[17] - The economic development is adversely affected by factors such as the "America First" policy and Brexit[17] - Despite stabilized prices of PCB raw materials in 2019, supply chain disruptions in early 2020 due to COVID-19 led to rising prices of precious metals[21] - An upward trend in the price of raw materials is expected in 2020, coupled with fierce competition and irrational pricing, further weakening profitability[21] - The PCB market is expected to grow significantly due to increasing demand from sectors such as automotive electronics, communication equipment, and medical devices, driven by advancements in technology and the rise of new applications like 5G[56][58]. Business Operations - The Group has been engaged in the manufacturing and sales of PCBs for 30 years, witnessing various industrial transformations[16] - The Group's business operations have generally grown to a certain scale despite market fluctuations[16] - The Group's diversification of product mix and market coverage has reduced reliance on a single product and market, allowing for better adaptation to demand changes[64] - The Group plans to establish a new production base in the Greater Bay Area to support long-term development, relocating bulk production capacity from the current site in Shenzhen[69] - The Group is exploring cooperation opportunities related to urban renewal projects in the current production area in Pingshan District[69] Corporate Governance - The company has complied with the Corporate Governance Code provisions from January 1, 2019, to the date of the annual report, except for code provision A.2.1[123] - The Board currently comprises seven Directors, including three executive Directors, one non-executive Director, and three independent non-executive Directors[131] - The company has adopted a code of conduct for securities transactions by Directors, with no known non-compliance during the year ended December 31, 2019[130] - The company is committed to ongoing enhancements of corporate governance principles and practices to balance the interests of shareholders, customers, and employees[125] - The roles of chairman and chief executive officer are currently held by the same individual, which the Board believes ensures consistent leadership and effective strategic planning[124] Management Team - Mr. Chan Wing Yin, aged 70, is the chairman, executive director, and CEO, with over 30 years of experience in PCB production and sales[100] - The Group's management team includes experienced professionals with backgrounds in finance, manufacturing, and project management[115] - The management team is committed to corporate strategic planning and overall business development, ensuring sustained growth and market presence[104] - The Group's focus on PCB manufacturing has allowed it to accumulate significant industry knowledge and experience since its inception in 1992[100] Risk Management - The Group's risk management system includes identification, evaluation, and management phases to address business-related risks, with no significant risks identified in 2019[195] - The internal control system aligns with the COSO 2013 framework, focusing on operational efficiency, reliability of financial reporting, and compliance with laws[195] - The Board oversees management's performance in risk management and internal control on an ongoing basis[195] Employee and Operational Efficiency - The Group's liquidity position was maintained throughout 2019, with ongoing credit assessments to reduce exposure to credit risk[86] - The Group recorded a decrease in finance costs by approximately HK$2.0 million, or 24.7%, to approximately HK$6.1 million for the year ended December 31, 2019 from approximately HK$8.1 million for the year ended 31 December 2018[82] - The Group's current assets as at 31 December 2019 were approximately HK$437.5 million, including cash and cash equivalents totaling approximately HK$160.9 million[84] - The Group is committed to enhancing production automation and intelligent production to optimize costs and improve quality in response to Industry 4.0 trends[68]
恩达集团控股(01480) - 2019 - 年度财报