Financial Performance - Revenue for FY2020 was HK$17,301.2 million, a decrease of 6% from HK$18,384.0 million in FY2019[9] - Profit before tax for FY2020 was HK$3,635.8 million, an increase of 7% compared to HK$3,408.2 million in FY2019[9] - Underlying net profit for FY2020 was HK$2,776.0 million, up 11% from HK$2,493.3 million in FY2019[9] - Reported net profit for FY2020 was HK$2,802.9 million, a 17% increase from HK$2,402.2 million in FY2019[9] - Earnings per share based on underlying net profit for FY2020 was HK$0.898, an increase of 11% from HK$0.809 in FY2019[9] - Full-year dividend per share for FY2020 was HK$2.50, a significant increase of 213% from HK$0.80 in FY2019[9] Business Segments Performance - The Group's full-year turnover decreased by 6% to HK$17,301.2 million compared to 2019, primarily due to lower sales in the Property Division[17] - The underlying net profit increased by 11% to HK$2,776.0 million, driven by strong performance in the Laminates Division[17] - The Laminates Division's revenue rose by 1% to HK$16,367.8 million, with EBITDA increasing by 43% to HK$3,869.6 million[18] - The Property Division's revenue declined by 53% to HK$796.2 million, with EBITDA down 60% to HK$371.8 million[19] Market Outlook - The electronics industry showed resilience during the pandemic, with increased demand for computers and home electronic appliances[15] - The electronics industry is expected to continue prospering in 2021, with pent-up demand in overseas markets being released[31] - The Group anticipates a new growth cycle in the laminates industry driven by the introduction of 5G and upgrades in smart appliances[32] - The management expects strong business growth momentum to persist throughout 2021[31] Liquidity and Financial Position - The company reported a net cash position of HK$3,756.1 million, indicating a strong liquidity position[9] - The Group's net current assets as of December 31, 2020, were approximately HK$6,278.5 million, down from HK$9,386.0 million in 2019[22] - The net working capital cycle increased to 107 days as of December 31, 2020, from 88 days in 2019[22] - The Group's net cash position was HK$3,756.1 million as of December 31, 2020, with a net gearing ratio of 0%[22] Investments and Expansion Plans - The Group invested HK$1,126 million in new production facilities and HK$132 million in its property business during 2020[22] - The Group plans to add 800,000 sheets of monthly laminates capacity in Shaoguan City, Guangdong Province, and establish new facilities to add 350 tonnes of copper foil monthly[32] Corporate Governance - The Company adopted good corporate governance principles and complied with the Corporate Governance Code throughout the year ended December 31, 2020[120] - The Board consists of 11 members, including 4 independent non-executive Directors, ensuring a balance of skills and experience for effective decision-making[177] - The Company has received annual confirmations of independence from each independent non-executive Director as required under Rule 3.13 of the Listing Rules[178] - The Company emphasizes compliance with legal and regulatory requirements as part of its governance practices[173] Risk Management - The Group has identified key risks and uncertainties that may materially affect its business operations and financial condition[60] - The Group has established a comprehensive risk management and internal control system, reviewed at least annually, to ensure effective oversight of operations[199] - The risk management framework includes a defined organizational structure with clear responsibilities and authority for each department, ensuring accountability in daily operations[199] Employee Relations - The Company maintains strong relationships with employees, customers, and suppliers to foster long-term business benefits[68] - The Group regularly reviews its policies on employee remuneration and benefits to ensure alignment with market standards[68] - The workforce decreased to approximately 9,500 employees as of December 31, 2020, from 10,200 in 2019[25] Connected Transactions - The agreements with Hallgain are classified as continuing connected transactions under Chapter 14A of the Listing Rules due to Hallgain being a substantial shareholder[126] - The Group entered into a materials purchase framework agreement with KHL for the purchase of chemicals, with proposed annual caps of HK$800 million, HK$880 million, and HK$968 million for the years ending December 31, 2020, 2021, and 2022 respectively[130] - The transactions with KHL are classified as continuing connected transactions under Chapter 14A of the Listing Rules, ensuring compliance with regulatory standards[130][134] Internal Controls and Auditing - The Group has established an internal audit department to review financial, operational, risk management, compliance control, and internal control, ensuring the safeguarding of shareholders' investments and the Company's assets[197] - The Audit Committee is responsible for reviewing the external auditor's evaluation of the internal accounting controls and the scope and results of internal audit procedures[198] - The internal audit function reports directly to the Audit Committee to ensure proper execution of internal control procedures[197]
建滔积层板(01888) - 2020 - 年度财报