Company Overview - Kinergy Corporation Ltd. specializes in manufacturing semiconductor back-end equipment, providing electronic manufacturing services and original design manufacturing solutions [6]. - The company operates two main divisions: Electronic Manufacturing Services and Original Design Manufacturing, focusing on low-volume, high-mix production [8]. - Kinergy's Original Design Manufacturing division includes automation equipment and precision tool components primarily for the semiconductor industry [8]. - The company has manufacturing and service facilities in Singapore, China, and the Philippines, with marketing offices in Japan and Malaysia [12]. Quality and Recognition - The company has achieved ISO 9001:2015 certification for its quality management system, ensuring compliance with customer and regulatory requirements [12]. - Kinergy has been recognized as a winner of the Enterprise 50 Awards three times, highlighting its competitive position in the market [12]. - Kinergy's automation equipment is designed for semiconductor processing, enhancing production efficiency and quality [10]. - The company emphasizes cost-effective and timely delivery of high-quality products through continuous improvement initiatives [12]. Financial Performance - In 2018, the company reported a revenue of SGD 122.8 million, a decrease of 4.4% compared to SGD 128.9 million in 2017 [18]. - The gross profit for 2018 was SGD 21.4 million, representing a gross margin of 17.4% [18]. - The net profit for the year increased by 8.7% to SGD 8.7 million, compared to SGD 8.0 million in 2017 [32]. - Total assets as of December 31, 2018, were SGD 114.3 million, up from SGD 99.3 million in 2017, indicating a growth of 15.1% [19]. - The company successfully completed its IPO on July 18, 2018, raising a total of SGD 46.5 million [31]. - Cash position improved significantly, increasing over threefold to SGD 43.7 million compared to the previous year [31]. Production Capacity and Future Outlook - The company completed the construction of a new factory in Nantong, China, enhancing its production capacity [32]. - Future outlook remains optimistic due to favorable policies such as "Made in China 2025" and the "13th Five-Year Plan for National Science and Technology Innovation" [33]. - The company aims to leverage its design capabilities to create new business opportunities and enhance customer value [32]. - The company anticipates continued growth in the semiconductor industry driven by applications in automotive, communications, data, artificial intelligence, and the Internet of Things [41]. Cash Flow and Investments - The net cash flow from operating activities for the year ended December 31, 2018, was approximately SGD 10.5 million, reflecting a significant increase from SGD 3.8 million in 2017 [63]. - The net cash flow from investing activities for the year ended December 31, 2018, was approximately SGD 6.9 million, primarily due to proceeds from the sale of property, plant, and equipment amounting to SGD 4.9 million and investment securities of SGD 6.8 million [64]. - The net cash flow from financing activities for the year ended December 31, 2018, was approximately SGD 12.8 million, mainly from proceeds of SGD 46.5 million from issuing new shares, offset by expenses of SGD 5.3 million and dividends paid of SGD 28.4 million [65]. - The total cash and cash equivalents increased by SGD 30.2 million to SGD 43.7 million as of December 31, 2018, compared to SGD 13.7 million at the beginning of the year [60]. Corporate Governance - The company was listed on the Hong Kong Stock Exchange on July 18, 2018, and has since adhered to the corporate governance code as per the listing rules [149]. - The board of directors consists of nine members, including three independent non-executive directors, ensuring compliance with independence criteria [156][157]. - The company has implemented appropriate insurance arrangements for directors against potential legal actions since August 2018 [151]. - The company is committed to maintaining transparency and accountability to shareholders through robust corporate governance practices [150]. Management and Board Expertise - The company has a strong board with diverse expertise in finance, management, and technology development, enhancing its strategic decision-making capabilities [105]. - The management team is committed to maintaining high standards of corporate governance and financial oversight [106]. - The company emphasizes the importance of independent non-executive directors in providing independent judgment and oversight [183]. Strategic Initiatives - The company is focused on expanding its market presence and developing new technologies to drive future growth [109]. - The company plans to invest $50 million in new manufacturing facilities to increase production capacity by 40% [116]. - A strategic acquisition of a smaller tech firm was completed, valued at $200 million, aimed at enhancing R&D capabilities [116]. Employee and Operational Insights - The company employed 532 staff members as of December 31, 2018, with employee benefit expenses amounting to approximately SGD 18.2 million for the year [84]. - The board of directors is responsible for formulating the company's strategic policies and overseeing operations, including approving interim and annual performance and dividend policies [165].
精技集团(03302) - 2018 - 年度财报