Financial Performance - The Group reported a 13% increase in revenue to HK$20,645.8 million for FY2018, compared to HK$18,338.0 million in FY2017[9]. - Underlying net profit decreased by 15% to HK$3,190.1 million, down from HK$3,735.0 million in the previous year[9]. - The average selling price (ASP) increased during 2018, although the overall demand for laminates weakened[22]. - Laminates sales showed a modest decline with an average monthly shipment volume of 9.64 million square meters[22]. - The laminates division's segment revenue rose 2% to HK$16,747.3 million, while EBITDA declined 30% to HK$3,378.9 million[22]. - The property division's segment revenue increased significantly by 104% to HK$3,644.0 million, with EBITDA growth of 221% to HK$1,535.1 million[23]. - The Group's overall profitability has continuously outperformed its peers despite market challenges[15]. - The Company capitalized on its vertical laminates supply chain and effective cost control to sustain revenue growth[15]. Liquidity and Financial Position - Net gearing stood at 11%, with net cash of HK$1,062.1 million[9]. - As of December 31, 2018, the Group's net current assets were approximately HK$9,555.4 million, with a current ratio of 2.59, indicating a robust liquidity position[25]. - The Group's cash and cash equivalents amounted to approximately HK$3,803 million, with HK$8,192 million in available bank facilities, of which 71% had been utilized[25]. - The total bank borrowings amounted to approximately HK$5,843 million, with a short-term to long-term borrowing ratio of 18%:82%[25]. - The net working capital cycle decreased to 63 days from 74 days year-over-year, with inventory turnover days at 41 days and trade receivables turnover days at 59 days[25]. Investment and Expansion Plans - The Group plans to invest HK$860 million in new production capacity and HK$540 million in its property business during 2018[26]. - The introduction of consumption stimulus policies in China and investments in the 5G mobile network industrial chain are expected to drive a rebound in laminates demand in 2019[28]. - The Group has initiated expansion programs in Guangdong Province and Thailand to meet the growing demand for high-end laminates in the 5G era[29]. - The demand for copper-clad laminate products is expected to rebound due to the activation of the 5G network industry chain and domestic consumption stimulus policies[32]. - The group plans to increase production capacity in Guangdong Province, specifically in Lianzhou and Qingyuan, to enhance vertical integration[32]. - New production capacity for copper-clad laminates will be phased in this year in Jiangmen and Shaoguan, Guangdong, and Thailand, aiming to meet the demand for high-end products in the 5G era[32]. Corporate Governance and Board Composition - The Company has complied with the Corporate Governance Code throughout the year, except for the deviation regarding the appointment terms of non-executive Directors[141]. - The Group's governance practices are detailed in the Corporate Governance Report within the annual report[141]. - The Board currently consists of 12 members, including four independent non-executive Directors, ensuring compliance with Listing Rules[193]. - The Company has received annual confirmations of independence from each independent non-executive Director as required under Rule 3.13 of the Listing Rules[194]. - The Board is responsible for overseeing corporate governance policies and practices, including compliance with legal and regulatory requirements[188]. Shareholder Returns and Dividends - The Board proposed a final dividend of HK35.0 cents per share, subject to Shareholders' approval[20]. - An interim dividend of HK17.5 cents per share was paid, and a final dividend of HK35.0 cents per share is recommended for shareholders[82]. - The Company has a dividend policy aimed at allowing shareholders to participate in profits while retaining reserves for future growth[83]. - The Board will review the dividend policy as appropriate, considering financial results, distributable reserves, and future development plans[83]. Risks and Challenges - The Group has identified key risks that may materially affect its business operations, financial condition, and results, including the inability to expand production capacity[67]. - The Group's ability to obtain financing for its expansion plan will depend on its financial condition and external factors, with no assurance of obtaining adequate funds on acceptable terms[73]. - Recent global market fluctuations and economic conditions, particularly a slowdown in the PRC economy, could lead to reduced demand for the Group's products[73]. Employee Relations and Policies - The Company maintains strong relationships with employees, customers, and suppliers, recognizing employees as valuable assets and regularly reviewing remuneration policies[76]. - The Group's emolument policy for employees is based on merit, qualifications, and competence, as set by the Remuneration Committee[160]. - The share option scheme has been adopted as an incentive for Directors and eligible employees[160].
建滔积层板(01888) - 2018 - 年度财报