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锦兴国际控股(02307) - 2018 - 年度财报
KAM HING INT'LKAM HING INT'L(HK:02307)2019-04-26 10:28

Financial Performance - Total revenue for the year ended December 31, 2018, was HKD 4,650,958,000, representing a year-on-year increase of 10.9%[9] - EBITDA for the same period was HKD 494,174,000, showing a growth of 7.1% compared to the previous year[9] - Profit attributable to equity holders was HKD 73,182,000, slightly down from HKD 62,835,000 in 2017[9] - The gross profit margin for 2018 was 12.5%, a slight increase from 12.3% in 2017[10] - The overall revenue increased by 10.9% year-on-year, from HKD 4,192,900,000 in 2017 to HKD 4,651,000,000 in 2018[32] - Gross profit rose by 12.3%, from HKD 517,000,000 in 2017 to HKD 580,700,000 in 2018, with a gross margin increase of 0.2 percentage points to 12.5%[32] - The company achieved a profit attributable to ordinary shareholders of HKD 72,800,000, a growth of 12.7% compared to HKD 64,600,000 in 2017[32] - The net profit for the year was HKD 70,294, up 11.5% from HKD 62,914 in 2017[187] - Basic earnings per share for the year was HKD 0.084, compared to HKD 0.074 in the previous year, reflecting a 13.5% increase[187] Market and Business Expansion - Revenue contribution from the domestic market in China grew by 53%, accounting for 27.0% of total revenue[19] - The garment business in Cambodia generated approximately HKD 205,600,000, contributing about 4.4% to total sales[20] - The company plans to expand its production facilities in Vietnam, renting 100,000 square meters of new land for textile production[22] - The company plans to establish a textile factory and warehouse complex on approximately 100,000 square meters of land in Vietnam, with construction expected to start in the second half of 2019[35] - The company aims to increase its market share in China, which is the second-largest market, with the adult clothing market projected to reach RMB 1,592 billion by 2019[24] - The company is focusing on high-end products and reputable customers in the Chinese market to capitalize on the consumption upgrade trend[24] Financial Position and Debt - The debt-to-equity ratio increased to 55.9% in 2018, up from 52.1% in 2017, indicating a rise in financial leverage[10] - Total bank and other borrowings amounted to approximately HKD 2,003,600,000, an increase from HKD 1,794,800,000 in the previous year[44] - The group’s current assets net value decreased to approximately HKD 657,500,000 from HKD 895,000,000, primarily due to reclassification of loan repayments[44] - The group’s cash and cash equivalents were approximately HKD 558,200,000, up from HKD 421,700,000 last year[44] - The group’s financing costs increased by about 20.1% to approximately HKD 71,700,000 due to rising borrowing rates and increased bank loans[41] Corporate Governance - The board proposed a final dividend of HKD 0.015 per share, consistent with the previous year[22] - The board consisted of nine directors, including five executive directors, as of December 31, 2018[65] - The board of directors held four meetings and one annual general meeting during the year ending December 31, 2018, with all executive directors attending 100% of the meetings[68] - The company has complied with listing rules regarding independent non-executive directors, with three such directors making up one-third of the board[72] - The company has established a framework for good corporate governance practices, ensuring smooth information flow within the board[76] - The company has established a risk management system that effectively monitors and controls various operational risks[95] Employee and Supplier Relations - The company maintains competitive compensation and career development opportunities for its employees[123] - The company emphasizes the importance of maintaining good relationships with employees, customers, and suppliers for stable development[122] - The company has developed long-term relationships with suppliers to maintain a stable supply of quality materials[123] Environmental Compliance - The company has adopted strict environmental protection measures to comply with current environmental laws and regulations[119] - There were no significant violations of relevant environmental laws that impacted the company's development and performance during the fiscal year[119] Shareholder Communication - The company has implemented a communication strategy with shareholders, including printed corporate communication documents and regular investor meetings[98] - The company allows shareholders holding at least 10% of the paid-up capital to request a special general meeting within two months of submission[99] - The company has adopted a shareholder communication policy to encourage active communication with shareholders[100] Audit and Financial Reporting - The audit report is intended solely for the shareholders of the company, with no responsibility to any other parties[180] - The company must assess its ability to continue as a going concern and disclose relevant matters accordingly[176] - The board of directors is responsible for preparing true and fair consolidated financial statements in accordance with applicable accounting standards[176] Miscellaneous - The company made charitable donations totaling HKD 1,811,000 during the year[131] - The company has not engaged in any related party transactions that require disclosure under the listing rules[157] - The company has purchased directors' liability insurance to provide appropriate protection for its directors[150]