Good morning, ladies and gentlemen. On behalf of Comba Telecom Systems Holdings Limited, I would like to welcome all of you joining the 2020 annual results investor presentation web conference. In today's meeting, there will be a presentation followed by a Q&A section. In Q&A section, if anyone wishes to ask questions, please click on the raise hand button located at the bottom of the screen. [Non-English content] Today, we have four senior management joining us from Hong Kong and Guangzhou. [Non-English content] From Hong Kong, may I introduce. [Non-English content] The Chairman, Mr. Fok Tung Ling. [Non-English content] The Executive Director and Group CFO, Mr. Ken Chang. [Non-English content] From Guangzhou, may I introduce. [Non-English content] The Executive Director and President of the Group, Mr. Xu Huijun. [Non-English content] The Executive Director and Senior Vice President of the Group, Ms. Huo Xinru. [Non-English content] Now, may I invite Mr. Ken Chang, Executive Director and Group CFO, to present the financial highlights in 2020. [Non-English content] Mr. Chang, please. Thank you. Good morning, everyone. I'm here to present the financial result for Comba in 2020. Due to the COVID pandemic and the slowdown in telco CapEx, the overall revenue has declined, particularly on antenna. Outside antenna, we actually have a growth in the revenue. Overall revenue is down by 12.5%, and result in HKD 5.05 billion in 2020. Gross profit decreased by HKD 331 million. Gross profit margin decreased by 2.1 point to 28.6%. The margin, or the gross profit down is because due to the product mix change and an increase in cost such as transportation and custom tax. The tax is down by about HKD 38 million- HKD 23 million. The net loss is HKD 194 million. It's a swing from a profit in 2019, and this is due to two major reasons. First of all, the antenna revenue is down, and the R&D expenses is up. Let me explain the cost structure of the group in 2020. First of all, the finance cost. The bank loan decreased by HKD 376 million, and as a result, the overall finance cost has been down, and also thanks to a more balance of a short-term and long-term loan. In general, also the interest rate has declined, so the overall finance cost has declined by 33%. Income tax. Because of the better tax planning and also a benefit of deferred tax asset, our income tax has decreased by 62.8%. Other expenses. Because the increase of the ETL fixed asset depreciation started in the beginning of 2020. That increased the depreciation cost by about HKD 34 million. As a result, the other expenses increased by HKD 6.3 million. Admin expenses. Overall, the operating efficiency has improved despite we have an exchange loss of about HKD 23 million. Selling expenses. We have been enhancing our sales operating efficiency, overall we saved about HKD 17 million, in which the expense is down by about 3%. R&D expenses. We have been continuing increasing the R&D expenses, particularly targeted on the 5G technology. We are very optimistic about the prospect of the 5G application scenarios and models we believe are very promising. We keep on investing for the future and as a result, the R&D expenses increased by about HKD 124 million or by about 35.8%. If we look at our balance sheet, we actually have a stronger balance sheet or stronger financial position compared with the past. Our net cash has increased by HKD 144 million to close to HKD 500 million at the end of 2020. Our cash position in 2020 is about HKD 1.7 billion. Total asset increased by 1.3%. Total liability decreased by 6.9%. Net asset increased by 18.7% to HKD 4.1 billion. NAV per share is HKD 1.49. In general, the turnover day have increased. Inventory turnover day, AR turnover day, AP turnover day have increased because of the denormalized effect. Cash conversion cycle remain healthy at around 11 days. The gross gearing ratio has been down by 3.5 points to 12.2%. Debt-to-asset ratio down by 5.3%- 59.8%. Because of the losses, our ROE is negative. This chart shows you the gearing ratio trend over the last five years. Currently, our gearing ratio stood at 12.2%, which has been down over the last few years, and particularly since the peak in the beginning of 2018. It's around 18.9%. It's a dramatic drop from that. Currently, our interest-bearing debt or the bank loan standing at about HKD 1.38 billion, which is about HKD 376 million down compared with a year ago. Let us look at revenue breakdown by customers. As mentioned, because of the slowdown in telco CapEx and because of the COVID pandemic, we see the three operators' revenue has been down in general. If we look at our fourth biggest customer, which is China Tower, is up very strongly by about 51%. Also thanks to the network system side of the business. International customers and OEM or the core equipment manufacturers has been up by 12.9% despite the global COVID pandemic effect. Particularly, we want to highlight the core equipment vendors, which account roughly half of the international revenue, was up 26.1% year- on- year. Other business is up by 14.3%. Our Laos operator ETL, which account roughly about 3.3% of revenue, is up 7.2%. Let us look at the revenue breakdown by business. Basically, antenna has decreased by about 35.8%. Besides antenna business, if we talk about network system, services, wireless transmission, all the businesses has been up. Antenna business, because of the slowdown in telco CapEx, which has been down by 35.8%. Network system, we see continuing strong demand. We see it has about a 14% increase. Particularly, we also want to highlight that in the wireless transmission business, which account for about 5.2% of revenue, is up very strongly by about 52%. Overall, to sum up on the financial side. Our financial position remains strong, categorized by low gearing ratio, higher net asset. The businesses outside antenna has remained strong. We believe the 5G opportunities there for us remain very bright, and we are in a strong confidence that we can do better despite the setback in 2020. With that, I will turn the time to Mr. Xu, our President of the Group. Thank you. [Non-English content] May I now invite Mr. Xu Huijun, Executive Director and President of the Group, to present industry development and company outlook. [Non-English content]
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