Financial Performance - Total revenue for the fiscal year ending March 31, 2023, was $3,646 million, a 6% increase year-over-year, with an 11% increase in underlying revenue excluding currency fluctuations and acquisitions[2] - Gross profit was $716 million, up 2% compared to the previous year[2] - Adjusted EBITDA, excluding non-cash foreign exchange movements and restructuring costs, decreased by 10% to $220 million, representing 6.0% of revenue (compared to 7.1% in FY21/22)[2] - Net profit attributable to shareholders was $158 million, an 8% increase year-over-year[2] - Free cash flow from operations was $215 million, compared to a cash outflow of $132 million in the previous year[2] - The company's EBITDA for the fiscal year 22/23 was $232 million, compared to $222 million in the previous year[6] - Adjusted EBITDA, excluding non-cash foreign exchange movements and restructuring costs, was $220 million, representing 6.0% of revenue (down from 7.1% last year)[6] - Net profit attributable to shareholders increased by 8% to $158 million, or $0.1733 per share on a fully diluted basis[6] - The company generated $215 million in free cash flow from operations, primarily due to reduced working capital and capital expenditures[6] - Revenue increased by $200.0 million or 6% to $3,646.1 million in FY22/23 compared to FY21/22[12] - Gross profit margin decreased to 19.6% in FY22/23 from 20.4% in FY21/22[10] - Adjusted EBITA decreased to $220.1 million in FY22/23 from $243.8 million in FY21/22, with a margin of 6.0% compared to 7.1%[10] - Net profit attributable to shareholders increased to $157.8 million in FY22/23 from $146.4 million in FY21/22[10] - Free cash flow from operations improved to $214.8 million in FY22/23 from a negative $132.4 million in FY21/22[10] - Net profit for FY22/23 was $146.4 million, with a reported net profit of $157.8 million after tax impacts[28] - Unrealized gains on other financial assets and liabilities netted a loss of $6.7 million[28] - Unrealized foreign exchange losses on monetary assets and liabilities netted a gain of $10.5 million[28] - Restructuring and related costs amounted to $1.4 million[28] - Net profit excluding non-cash foreign exchange changes and restructuring costs was $147.9 million, representing 4.1% of revenue[28] - Sales volume, price adjustments, and cost-saving measures contributed to a $40.0 million increase in net profit, partially offset by rising raw material and operational costs[31] - Foreign exchange fluctuations had a negative impact of $38.0 million on net profit, primarily due to the depreciation of the Euro[31] - Gross margin decreased from 20.4% in FY21/22 to 19.6% in FY22/23, with an adjusted gross margin of 20.1% excluding foreign exchange impacts[31] Revenue by Business Segment - The Automotive Products Group achieved revenue of $2,914 million, a 16% increase excluding foreign exchange impacts and a prior-year acquisition, outperforming the global light vehicle production growth estimate of 9%[4] - The Industrial and Commercial Products Group reported revenue of $732 million, accounting for 20% of the company's total revenue, with a 7% decline excluding foreign exchange impacts and a prior-year acquisition[4] - Automotive product group revenue increased by $269.4 million or 10% to $2,913.7 million in FY22/23[13] - Industrial and commercial product group revenue decreased by $69.4 million or 9% to $732.4 million in FY22/23[13] - Automotive product group revenue increased by 16% YoY, excluding FX impact and the acquisition of Zimmermann, compared to a 9% increase in global light vehicle production[17] - Asia revenue for the automotive product group grew by 13%, driven by new business wins, increased sales, and growth in China's new energy vehicle market[17] - Europe revenue for the automotive product group rose by 17%, supported by expanded production on recently acquired customer platforms[17] - Americas revenue for the automotive product group increased by 19%, benefiting from normalized production plans post-semiconductor shortages and higher sales from new business wins[17] - Industrial and commercial product group revenue declined by 7% YoY, excluding FX impact and acquisitions, due to reduced demand for home-related products and inflationary pressures[20] - Asia revenue for the industrial and commercial product group fell by 26%, impacted by reduced demand for small home appliances and entertainment products in Europe and the Americas[21] - Europe revenue for the industrial and commercial product group decreased by 2%, with growth in beverage equipment and semiconductor-related products offset by declines in home-related products[21] - Americas revenue for the industrial and commercial product group grew by 9%, driven by increased demand in ventilation, automation, and medical equipment markets[23] - The acquisition of Pendix GmbH contributed $4.6 million to the industrial and commercial product group's revenue in FY22/23[22] Cash Flow and Financial Position - Cash reserves stood at $409 million as of March 31, 2023, with a net debt-to-capital ratio of 16%[2] - The company proposed a final dividend of 34 HK cents (4.36 US cents) per share, bringing the total dividend for the year to a 50% increase compared to the previous year[2] - The company recommended a final dividend of 34 HK cents per share, bringing the total annual dividend to 51 HK cents per share, equivalent to 6.54 US cents per share[6] - Total debt to capital ratio remained stable at 16% as of March 31, 2023[10] - Enterprise value to adjusted EBITDA ratio decreased to 2.5 in FY22/23 from 3.0 in FY21/22[10] - Interest coverage ratio decreased to 9.8 in FY22/23 from 11.9 in FY21/22[10] - Inventory decreased by $58.5 million to $589.0 million, with inventory days reduced from 75 to 66 days[35] - Accounts receivable decreased by $26.3 million to $808.2 million, with receivable days reduced from 69 to 64 days[35] - Free cash flow for FY22/23 was $214.8 million, a significant improvement from a free cash outflow of $132.4 million in FY21/22[39] - Operating working capital improved by $27.5 million due to management actions to control working capital needs[39] - Capital expenditures decreased by $89.8 million to $226.6 million as the company focused on improving asset utilization and stricter capital allocation[39] - The company acquired an 80% stake in Pendix for $20.3 million and the remaining 20% non-controlling interest in Halla Stackpole for $50.8 million[40] - Net debt decreased by $80.1 million to $65.3 million as of March 31, 2023[46] - Available unused credit facilities totaled $759.0 million as of March 31, 2023[44] - The company maintained stable investment-grade credit ratings from Moody's (Baa1) and S&P (BBB)[43] - Cash and cash equivalents increased by $63.3 million to $408.7 million as of March 31, 2023[44] - Income tax paid decreased by $12.1 million to $29.3 million due to lower taxable profits in the prior year[39] - The company invested $1.5 million in the joint venture Lean AI during FY22/23[40] - Loans decreased by $16.8 million to $474.0 million as of March 31, 2023, with a $69.0 million credit facility from HSBC for refinancing[49] - Total debt to capital ratio remained stable at 16% as of March 31, 2023, with total debt to adjusted EBITDA ratio at 1.3x[51] - Enterprise value to adjusted EBITDA ratio decreased from 3.0x in 2022 to 2.5x in 2023[51] - Interest coverage ratio was 9.8x as of March 31, 2023, compared to 11.9x in 2022[51] - Final dividend for FY22/23 proposed at 34 HK cents per share, equivalent to $39.9 million, with a scrip dividend option[52] - Interim dividend for FY22/23 was 17 HK cents per share, equivalent to $19.8 million, with $14.6 million settled via new shares and $5.2 million in cash[52] - Foreign exchange contracts' fair value decreased by $11.1 million to $216.2 million as of March 31, 2023, due to reduced RMB contract gains[56] - Lease liabilities decreased by $34.1 million to $93.4 million as of March 31, 2023, with a $25.1 million reduction from lease payments and terminations[49] - The company maintains a prudent debt level and fully complies with financial covenants, including net debt to EBITDA and EBITDA to interest expense ratios[51] - Foreign exchange risk is managed through forward and structured foreign exchange contracts with maturities ranging from 1 to 66 months[55] - The company's ordinary and structured forward contracts for selling euros and buying dollars increased the financial assets reflecting cumulative fair value gains by $19.1 million to $133.1 million as of March 31, 2023, compared to $114.0 million on March 31, 2022[58] - Structured euro contracts decreased financial assets reflecting cumulative fair value gains by $7.2 million to $30.2 million as of March 31, 2023, compared to $37.4 million on March 31, 2022[58] - The total financial assets reflecting cumulative fair value gains from euro contracts increased by $11.9 million to $163.3 million as of March 31, 2023, compared to $151.4 million on March 31, 2022[58] - Ordinary forward contracts for RMB decreased financial assets reflecting cumulative fair value gains by $44.5 million to $44.9 million as of March 31, 2023, compared to $89.4 million on March 31, 2022[59] - Estimated future cash flow benefits from ordinary forward and cross-currency interest rate swap contracts are $222 million as of March 31, 2023, compared to $326 million on March 31, 2022[62] - Estimated future cash flow benefits from structured foreign exchange contracts are $33 million as of March 31, 2023, compared to $45 million on March 31, 2022[62] - Copper material spot price decreased by 14% to $8,935 per ton as of March 31, 2023, compared to $10,337 on March 31, 2022[63] - Aluminum material spot price decreased by 33% to $2,337 per ton as of March 31, 2023, compared to $3,503 on March 31, 2022[63] - The fair value net of commodity contracts decreased by $42.7 million, primarily due to declining commodity prices and contract consumption[64] - The total fair value net of commodity contracts decreased to $19.3 million as of March 31, 2023, compared to $62.0 million on March 31, 2022[65] Strategic Initiatives and Market Positioning - The company is well-positioned to gain market share in the automotive sector due to its investments in new products designed to support the transition to electric vehicles[4] - The company acquired the remaining 20% stake in Halla Stackpole Corporation, a powder metal business with strong market positions in China and South Korea[6] - In October 2022, the company completed the acquisition of an 80% stake in Pendix GmbH, a German company specializing in electric bicycle drive systems[6] - The company expects sales growth for the fiscal year 23/24 to be between 5% and 7%[8] - The company is highly susceptible to global economic and geopolitical environments, trade issues, and industry dynamics, which could impact product demand and financial performance[71] - The company is expanding its global business and seeking growth through acquisitions and joint ventures to mitigate risks from regional economic downturns[71] - The company is investing in cost-effective solutions and improving productivity to maintain competitiveness in core and expanding markets[74] - The company is focusing on innovation and intellectual property development to manage technological competitiveness and become a preferred supplier for customer-driven solutions[75] - The company is diversifying its customer and product portfolio through internal development and acquisitions to reduce dependency on major clients and products[77] - The company is implementing strategic planning and risk assessments aligned with technological development roadmaps, including automation and AI integration[75] - The company is continuously monitoring and expanding its global operations to adapt to political, regulatory, social, and economic changes in developing countries[77] - The company is managing contract risks through industry-standard terms and conditions, ensuring compliance and reducing potential losses[78] - The company is safeguarding its intellectual property through patent applications and enforcement actions against infringement[79] - The company is mitigating supply chain risks by strengthening regional production capabilities and gradually increasing localized supply chains[83] - The company is reducing logistics risks by optimizing international commercial terms for customer shipments and maintaining safety stock within regions[83] - The company is addressing business interruption risks by diversifying operational locations and consolidating production facilities and supply chains[84] - The company is managing human resource risks through talent retention strategies, automation, and digitalization to streamline operations[85] - The company is reducing tax risks by complying with tax laws and seeking professional advice in case of unclear tax regulations[88] - The company is lowering product liability risks by continuously improving engineering and manufacturing processes and conducting safety reviews[90] - The company is addressing energy risks by reducing operational energy intensity and seeking renewable energy sources[91] - The company is mitigating fraud risks through identity verification, proactive supervision, and robust internal controls[92] Sustainability and Environmental Initiatives - The company is committed to reducing carbon emissions, increasing renewable energy usage, and minimizing ecological impact[98] - The company is designing eco-friendly products and conducting carbon footprint assessments to meet sustainability requirements[100] - The company is committed to protecting the environment for future generations, focusing on energy and climate, waste, water resources, and emissions[106] - The company maintains a robust sustainability management system with clear goals, roles, responsibilities, accountability, and processes, overseen by the Board of Directors[108] - The Social Impact and Sustainability Committee, led by an Executive Director, is responsible for developing the company's sustainability culture, strategy, goals, and actions, aligning with stakeholder objectives[109] - The company ensures that all business units and functional departments incorporate sustainability strategies, key performance indicators, and goals into their strategic plans to achieve overall sustainability commitments[109] - The company has achieved a 53% reduction in global warming potential for selected products through material selection and renewable energy use in the design process[114] - The company avoided 383 tons of packaging material consumption by using recyclable packaging for four customers in China from 2020 to present[116] - The company's vertical integration helps reduce environmental impact by providing complete drive subsystems, including motors, switches, gears, and control electronics[110] - The company's products are designed to be energy-efficient, low-noise, and long-lasting, suitable for household appliances like lawn mowers, power tools, and air conditioners[110] - The company uses lifecycle assessment (LCA) and product carbon footprint (PCF) methods to track and reduce environmental impact throughout the product lifecycle[113] - The company's manufacturing facilities and internal testing labs comply with international standards, including ISO 9001, IATF 16949, and ISO 17025[115] - The company has received supplier quality excellence awards in Canada, China, and Europe for consistent performance in quality, delivery, and environmental compliance[115] - The company focuses on reducing consumption, reusing materials, and recycling waste in its manufacturing processes to minimize environmental impact[116] - The company is exploring opportunities to expand the use of recyclable packaging to more customers[116] - The company aims to develop new products with optimized PCF, LCA, and environmental product declarations[114] - 15 operational sites across 10 countries are now using 100% renewable energy, increasing the company's renewable energy usage to 22% (excluding grid-mixed renewables) and 40% (including grid-mixed renewables)[121] - The company installed 6,600 solar panels at its Jiangmen, China facility, expected to generate over 3,700 MWh of renewable energy annually and reduce 2,200 tons of carbon emissions[122] - The company achieved a 21% reduction in Scope 1 and 2 absolute carbon emissions in FY22/23 compared to the FY20/21 baseline[120] - The company has set a new target to reduce operational carbon emissions by 42% by 2030 (Scope 1 and 2) and achieve net-zero emissions globally by 2050[120] - The company achieved zero waste to landfill in FY22/23, with 93% of waste being recycled, mostly from production materials such as steel, copper, and plastics[124][125] - All of the company's production facilities (100%) are ISO 14001:2015 certified, and 11 facilities, including its largest, are ISO 50001:2018 certified for energy management[118] - Water consumption decreased by 7% in FY22/23, with water intensity per revenue dropping by 12% due to water-saving initiatives and recycling projects[126] - VOC emissions were below permitted levels, with measures taken to further reduce emissions, including using lower VOC alternatives and implementing exhaust control systems[127] - The company recycles and reuses epoxy and copper powders from production processes to reduce particulate emissions[127] - The company focuses on reducing greenhouse gas emissions and energy consumption in its production processes to contribute to sustainability[135] Corporate Governance and Ethics - The company emphasizes trust and transparency, adhering to high standards of integrity, openness, and fairness, with strategies and policies addressing corporate governance, ethics, compliance, data protection, and supply chain[106] - The company integrates human rights and labor rights into its business code, promoting diversity and equal opportunities, and ensuring compliance with labor laws and regulations to protect employee well-being[101] - The company's Code of Ethics and Business Conduct guides employees in making ethical decisions and maintaining legal and ethical standards, with no significant non-compliance with laws and regulations reported in the 22/23 fiscal year[168] - The Board of Directors consists of 2 executive directors and 9

Financial Performance - The group's revenue reached $1,770 million, an increase of 6% compared to the same period last year. Excluding the impact of currency fluctuations and acquisitions, revenue grew by 11%[3] - Gross profit was $355 million, representing 20.0% of revenue, down from 21.3% ($357 million) in the same period last year[3] - Adjusted EBITDA was $111 million, compared to $138 million in the same period last year[3] - Net profit attributable to shareholders decreased by 40% to $56 million, or $0.0621 per share, fully diluted[3] - Free cash flow from operations was $80 million, compared to a cash outflow of $56 million in the same period last year[3] - The net profit attributable to shareholders for the first half of the fiscal year 22/23 was $55.9 million, a decrease from $93.2 million in the same period of the previous year[12] - The operating profit for the six months ended September 30, 2022, was USD 69,031 thousand, down from USD 116,926 thousand in the previous year, reflecting a decline of approximately 41%[85] - The profit attributable to shareholders for the six months ended September 30, 2022, was $55,884 thousand, down from $93,179 thousand in the same period of 2021[186] Revenue Segmentation - The automotive products segment accounted for 79% of total revenue, with a fixed exchange rate revenue increase of 16%[5] - Revenue from the Americas automotive products segment increased by 23% at fixed exchange rates, while Europe saw an 8% increase, and Asia (mainly China) increased by 17%[5] - The industrial products segment represented 21% of total revenue, with a fixed exchange rate revenue decline of 5%[6] - The automotive product segment's revenue reached $1,472.2 million, reflecting a 16% increase from $1,268.7 million in the previous year, while the industrial product segment's revenue decreased by 5% to $384.1 million[14] - Revenue for the first half of the fiscal year 22/23 increased by $182.2 million compared to the first half of the fiscal year 21/22, with the automotive segment contributing an increase of $203.5 million and the industrial segment decreasing by $21.3 million[16] Acquisitions and Investments - The company completed the acquisition of Halla Stackpole Corporation, increasing its stake to 100%, which is expected to enhance operational synergies in the powder metal business[9] - The company also acquired 80% of Pendix GmbH, a key player in the electric bicycle industry, aiming to leverage its technology and expertise to strengthen its position in the European market[9] - The company acquired 80% of Pendix GmbH on October 13, 2022, which had a revenue of €17.4 million ($17.1 million) for the year ending December 31, 2021[21] - The acquisition of an additional 50% stake in Halla Systech increased the company's ownership from 30% to 80%, with a purchase price of $83.2 million (939 billion KRW)[164] - The company completed the acquisition of the remaining 20% stake in Halla Systech for 50.8 million USD (703 billion KRW) on September 19, 2022, making it a wholly-owned subsidiary[164] Cash Flow and Liquidity - As of September 30, 2022, the total debt-to-capital ratio was 17%, with cash reserves of $298 million[7] - The company reported a net cash flow change in working capital of $13.3 million, with total working capital amounting to $755.0 million as of September 30, 2022[30] - The company reported cash and cash equivalents of USD 298,165 thousand as of September 30, 2022, down from USD 345,404 thousand[83] - The company reported cash generated from operations for the six months ended September 30, 2022, was $212,578 thousand, significantly higher than $118,693 thousand in the same period of 2021[190] Debt and Financial Ratios - The total debt as of September 30, 2022, was $471.7 million, slightly reduced from $490.8 million as of March 31, 2022[12] - The company's market capitalization as of September 30, 2022, was $911.8 million, down from $1,239.4 million as of March 31, 2022[12] - The debt-to-capital ratio rose from 16% on March 31, 2022, to 17% on September 30, 2022[49] - The interest coverage ratio was 10.7 times as of September 30, 2022, down from 11.9 times on March 31, 2022[49] Shareholder Information - The company announced an interim dividend of HKD 0.17 per share, equivalent to USD 0.0218 per share, with a scrip dividend option available[8] - The company declared an interim dividend of HKD 0.17 per share for the first half of the 22/23 fiscal year, totaling $19.7 million, consistent with the previous year's interim dividend[49] - The company reported a total of 526,627,622 shares held by major shareholder Wang Guo Yizhen, representing 57.478% of the total equity[71] - Major shareholders include Deltec Bank & Trust Limited with 225,703,430 shares (24.63%) and HSBC International Trustee Limited with 211,488,543 shares (23.08%) as of September 30, 2022[74] Operational Challenges - The company anticipates challenges in the global manufacturing outlook due to high inflation and geopolitical tensions, prompting a focus on cash flow generation and cost control[10] - The industrial segment's revenue decreased by 5% compared to the first half of the fiscal year 21/22, impacted by COVID-19 lockdowns and semiconductor shortages[20] - The company faced challenges from rising raw material prices and semiconductor shortages, which were partially offset by cost-saving measures[28] Foreign Exchange and Commodity Risks - Foreign exchange fluctuations negatively impacted revenue by $89.8 million, primarily due to the weakening of the Euro and Renminbi against the US dollar[16] - The euro weakened against the US dollar by 13%, impacting the company's hedging strategies[54] - The US dollar strengthened against the Chinese yuan by 12%, resulting in a decrease in the fair value of RMB contracts by $90.1 million to a liability of $0.7 million as of September 30, 2022[57] - The company continues to manage commodity price risks through cash flow hedging contracts with various expiration dates ranging from 1 to 30 months[62] Employee Compensation and Governance - The total remuneration for directors for the six months ended September 30, 2022, was $1.993 million, a decrease from $4.021 million in the same period of 2021[196] - Senior management compensation for six months ended September 30, 2022, was $3.517 million, down from $6.063 million in the prior year[197] - The company has complied with the standard code for securities transactions as per the listing rules, with all directors confirming adherence for the six months ending September 30, 2022[68] Market Position and Strategy - The company continues to invest in automation to standardize operations and improve product quality and reliability[33] - The company has not changed its risk management policies since March 31, 2022, which include market risk, credit risk, liquidity risk, and capital risk[198] - The company plans to utilize the net proceeds from the bond issuance for general corporate purposes, refinancing, and extending debt maturities[150]

JOHNSQ Johnson Electric Holdings Limited 德昌電機控股有限公司 * (在百慕建註冊成立之有限公司) 股份代號：179 2022年度年報 TTA HF united mombin 德昌電機 2022 JE AR_2022_Cover + IFC&IBC_Chi_19May.indd 4-6 19/5/2022 下午5:33 JE AR_2021_Review_Section_Chi_19May.indd 3 19/5/2022 下午5:35 聘用超過35,000名 員工當中超過 1,500名 為工程師 營業總額 34億美元 及淨溢利 1.46億美元 為超過 1,700名客戶 提供驅動解決方案 每日生產超過 280萬隻 電機及執行器 業務遍佈 4大洲 共22個國家 業務遍佈 4大洲 共22個國家 集團營業總額 2018 2019 2020 2021 2022 3,446 3,156 3,070 3,237 3,280 0 500 1,000 1,500 2,000 2,500 3,000 3,500 百萬美元 按營運部門劃分之營業額 77% 23% 汽車產品組別 工商用產品 ...