Financial Performance - Revenue for the year ended December 31, 2019, was $4,372,382 thousand, representing an increase from $4,005,635 thousand in 2018, a growth of 9.2%[6] - Gross profit for 2019 was $754,195 thousand, with a gross margin of 17.2%, slightly down from 17.7% in 2018[6] - Operating profit decreased to $275,170 thousand in 2019, resulting in an operating margin of 6.3%, down from 7.7% in the previous year[6] - Profit attributable to owners of the company was $235,414 thousand, a marginal increase from $233,946 thousand in 2018, reflecting a profit margin of 5.4%[6] - In 2019, the company's revenue reached $4,372 million, representing a growth of 9.2% compared to 2018, while net profit increased by 0.3% to $233.3 million[16] - Total comprehensive income for the year was $199,308 thousand, significantly higher than $141,066 thousand in 2018, representing an increase of about 41.2%[183] - The company reported a financial loss of $7,496 thousand in 2019, compared to a financial income of $2,917 thousand in 2018, reflecting a significant change in financial performance[181] - The company experienced a foreign exchange loss of $37,511 thousand in 2019, an improvement from a loss of $90,080 thousand in 2018[183] Assets and Liabilities - Total assets as of December 31, 2019, were $4,407,029 thousand, compared to $4,309,744 thousand in 2018, indicating a growth of 2.3%[7] - Current assets were $2,741,909 thousand, while current liabilities were $1,662,178 thousand, resulting in a current ratio of 1.65[7] - Total liabilities decreased from $2,362,416 thousand in 2018 to $2,329,682 thousand in 2019, a reduction of about 1.39%[185] - The company’s total liabilities increased to $1,666,774 thousand in 2019 from $1,547,829 thousand in 2018[190] - Cash and cash equivalents decreased from $1,065 million in 2018 to $892 million in 2019, while short-term bank deposits increased from $6 million to $118 million[34] Market Performance - The automotive, industrial, and medical end markets saw a revenue increase of 62.3% in 2019 compared to 2018, driven by strategic investments in interconnect solutions[16] - The smart home end market revenue surged by 622.0% in 2019 compared to 2018, significantly boosted by the merger with Belkin International[17] - The smart accessories market revenue grew by 83.7% in 2019 compared to 2018, reflecting the company's focus on innovative product offerings[18] - Mobile devices remained the largest revenue contributor, with a 1.6% increase in revenue in 2019, despite some declines due to changes in smartphone standards[16] - The communication infrastructure end market experienced a revenue decline of 5.8% in 2019 compared to 2018, impacted by inventory reductions and trade conflicts[16] - The computer and consumer electronics end market saw a revenue decrease of 14.9% in 2019, attributed to product structure changes and intensified market competition[16] Research and Development - Research and development expenses increased by 10.0% from $227 million in 2018 to $250 million in 2019, primarily due to investments in 400G optical communication products and automotive applications[30] - The company plans to continue expanding its R&D investments in automotive applications and explore strategic partnerships for interconnect solutions[16] - The company is actively engaged in research and development of new products and technologies to enhance its competitive edge[190] Corporate Governance - The board consists of three executive directors and four independent non-executive directors, ensuring compliance with listing rules regarding independent director appointments[126] - The company has established three board committees: Audit Committee, Remuneration Committee, and Nomination Committee, to oversee specific areas of governance[126] - The company has confirmed the independence of all independent non-executive directors throughout the reporting period[73] - The audit committee consists of three independent non-executive directors, responsible for overseeing the appointment and remuneration of external auditors[140] Strategic Initiatives - The company completed the integration of Belkin International Inc., enhancing its position in the smart accessories and smart home markets[12] - The company is focusing on expanding its presence in the 5G, automotive electronics, smart accessories, and smart home markets[11] - The company aims to leverage vertical integration and collaboration with Belkin to enhance its market position in consumer electronics[14] Employee and Management - Employee count increased from 40,500 as of December 31, 2018, to approximately 47,163 as of December 31, 2019, with total employee benefits expenses rising to $622 million in 2019 from $604 million in 2018[48] - The company has established a remuneration committee to review the remuneration policy based on operational performance and market practices[75] - The company encourages all directors to participate in professional development to enhance their knowledge and skills[129] Inventory and Supply Chain - The average inventory turnover days increased to 68 days in 2019 from 65 days in 2018, indicating a slight decrease in inventory efficiency[8] - Inventory increased from $650 million as of December 31, 2018, to $703 million as of December 31, 2019, primarily due to the expansion in Vietnam and early preparation for the 2020 Spring Festival[39] Financial Reporting and Compliance - The financial statements have been prepared in accordance with International Financial Reporting Standards and reflect the group's financial position accurately as of December 31, 2019[170] - The audit identified key audit matters, including inventory impairment and goodwill impairment assessments, which are significant to the financial statements[173] - The company has implemented key control procedures related to inventory valuation and impairment assessments[174] Shareholder Relations - Effective communication with shareholders is prioritized, with timely updates provided on the investor relations website to enhance investor understanding of the company's performance and strategies[163] - Shareholders have the right to propose resolutions at annual general meetings, with voting procedures detailed in the circular sent to shareholders[164]
FIT HON TENG(06088) - 2019 - 年度财报