Financial Performance - The Group's revenue reached a new high of RMB 56,180 million, representing a year-on-year increase of 28.58%[8] - Gross profit increased to RMB 4,409 million, reflecting a significant year-on-year growth of 89.37%[8] - Profit attributable to owners of the parent company surged to RMB 1,516 million, marking a 139.15% year-on-year increase[8] - Earnings per share rose to RMB 0.67, also a 139.15% increase compared to the previous year[8] - The Group's overall profitability has improved, with net profit increasing by 139.15% year-on-year[9] - In the first half of 2023, the Group recorded sales of approximately RMB 56,180 million, representing a year-on-year increase of approximately 28.58%[13] - Profit attributable to shareholders increased by approximately 139.15% year-on-year to approximately RMB 1,516 million[13] - The consumer electronics business recorded revenue of RMB 41,048 million, representing an increase of approximately 23.82% year-on-year[15] - Revenue increased by 28.58% compared to the same period last year, reaching a significant growth driven by optimized business structure and increased capacity utilization[31] - Profit attributable to owners of the parent company surged by 139.15% year-on-year, reflecting improved profitability[31] - Gross profit rose approximately 89.37% to RMB 4,409 million, with gross profit margin increasing from 5.33% to 7.85%[35][38] New Energy Vehicle Segment - The new energy vehicle business segment saw a revenue increase of 89.46%, driven by a significant expansion in product line and shipments[9] - In the first half of 2023, the sales volume of new energy vehicles in China reached 3.747 million units, representing a year-on-year growth of 44.1%, with market share increasing from 21.6% to 28.3%[19] - The revenue from the new energy vehicle business segment amounted to approximately RMB 6,133 million, accounting for 10.92% of total revenue, marking an increase of approximately 89.46% compared to the same period in 2022[19] - China's new energy vehicle sales are estimated to reach 9 million units in 2023, reflecting a year-on-year growth of 30%[27] - The penetration rate of new energy vehicles in China's passenger vehicle market is forecasted to exceed 30% by 2023[27] - By the end of 2025, the production and sales volume of new energy vehicles in China is expected to surpass 10 million units, with a market penetration rate of over 50%[27] Research and Development - Increased investment in research and development for new energy vehicle products, including intelligent suspension and intelligent driving technologies, is expected to drive future growth[9] - The Group plans to capitalize on market opportunities and expand its research and development in core technologies, reinforcing its major customer strategy and vertical integration advantages[22] - Research and development expenses rose to RMB 2,458,929, an increase of 62.1% from RMB 1,514,776 in 2022, reflecting the company's commitment to innovation[86] - The Group is focused on enhancing independent innovation and R&D capabilities to maintain long-term sustainable development[30] Market Trends and Outlook - Global smartphone shipments decreased by 11.3% to 534 million units in the first half of 2023, while the Group maintained market share and revenue growth[15] - Global smartphone shipments are forecasted to decline by 3.2% to 1.17 billion units in 2023, with a rebound expected in 2024[23] - The Group anticipates an improved market operating environment in the second half of the year, driven by traditional promotion seasons for consumer electronics[23] - The global market scale of residential energy storage systems is estimated to reach US$4.38 billion in 2023, with the Group benefiting from strong demand and a well-established business network[17] - The global residential energy storage market is expected to grow at a CAGR of over 24% from 2023 to 2028, driven by rising renewable energy output and market demand[25] - The global smart home market is projected to increase from US$93.98 billion in 2023 to US$338.28 billion in 2030, representing a CAGR of 20.1% during the same period[25] Corporate Governance and Structure - The Group has been recognized in the 2022 Green Manufacturing list by the Ministry of Industry and Information Technology, reflecting its commitment to sustainable development[20] - The Board currently lacks gender diversity, with all members being male as of June 30, 2023, and plans to include a female director by 2024[80] - Approximately 38.4% of the Group's total workforce are female employees, indicating a commitment to gender diversity among staff[82] - The Company has complied with the Corporate Governance Code, except for a deviation regarding the attendance of independent non-executive directors at the annual general meeting[73][74] - The Board Diversity Policy aims to ensure that Board members possess appropriate skills and diverse views necessary for the Company's business[79] - The Company is committed to promoting gender diversity not only within the Board but also among its workforce[82] Acquisitions and Investments - The Group entered into an acquisition framework agreement with Jabil Circuit (Singapore) Pte. Ltd. to acquire certain business for approximately RMB 15.8 billion (equivalent to US$ 2.2 billion) on August 26, 2023[56] - The acquisition of Jabil's manufacturing business is expected to enhance the Group's production capabilities in Chengdu and Wuxi, China[56] - No significant investments or acquisitions were made during the period under review[42][48] Financial Position and Liabilities - As of June 30, 2023, interest-bearing bank and other borrowings amounted to approximately RMB 3,005 million, up from RMB 2,004 million at the end of 2022[40][47] - The Group's gearing ratio was -12.33% as of June 30, 2023, slightly improved from -12.93% at the end of 2022[41] - The Group had capital commitments of approximately RMB 748 million as of June 30, 2023, down from RMB 1,026 million at the end of 2022[54] - Current liabilities totaled RMB 31,730,593, compared to RMB 30,142,838 at the end of 2022, indicating a rise in short-term obligations[93] - The Group's total liabilities as of June 30, 2023, were RMB 19,104,307,000, slightly down from RMB 19,452,654,000 as of December 31, 2022[141] Cash Flow and Dividends - Operating cash inflow was approximately RMB 2,351 million, a decrease from RMB 3,275 million in the first half of 2022, primarily due to increased cash payments for goods and services[36][39] - The company did not recommend the distribution of an interim dividend for the period, consistent with the previous year[85] - The company declared a final dividend of RMB 371,779,000 for the year 2022, which is an increase from RMB 232,080,000 declared for 2021[94] Employee and Training - Employee costs accounted for approximately 10.13% of the Group's revenue, with a total workforce of approximately 96.6 thousand employees[51] - The Group's employee training framework includes a three-tier training system established since 2021, ensuring new employees undergo training and assessments before starting work[57] - The Group's remuneration policy is regularly reviewed based on employee performance, qualifications, and industry practices, with bonuses awarded based on annual performance evaluations[57] Financial Reporting and Compliance - The interim condensed consolidated financial information for the six months ended June 30, 2023, has been prepared in accordance with HKAS 34 Interim Financial Reporting[106] - The financial statements for the year ended December 31, 2022, have been delivered to the Registrar of Companies as required by the Hong Kong Companies Ordinance[109] - The amendments to HKAS 1 require entities to disclose material accounting policy information, which the Group has applied since January 1, 2023, without impacting its financial position[112] - The Group has applied the revised Hong Kong Accounting Standards, which did not impact its financial position or performance[118]

Financial Performance - Revenue for the three months ended March 31, 2023, was RMB 26,374,934 thousand, representing a 26.00% increase compared to RMB 20,932,823 thousand in the same period of 2022[1] - Gross profit for the same period was RMB 2,030,103 thousand, showing a significant increase of 77.37% from RMB 1,144,567 thousand year-over-year[1] - Profit attributable to equity holders of the parent company reached RMB 458,924 thousand, a remarkable growth of 154.85% compared to RMB 180,073 thousand in the previous year[1] - Basic and diluted earnings per share were RMB 0.20, up 154.85% from RMB 0.08 in the same quarter of 2022[1] Assets and Liabilities - Total assets as of March 31, 2023, were RMB 55,449,927 thousand, a decrease of 2.71% from RMB 56,994,373 thousand as of December 31, 2022[1] - Total liabilities decreased by 6.45% to RMB 29,336,629 thousand from RMB 31,359,304 thousand at the end of 2022[1] - Net asset value increased by 1.87% to RMB 26,113,298 thousand compared to RMB 25,635,069 thousand at the end of the previous year[1]

Financial Performance - Revenue for 2022 reached RMB 107,186,288 thousand, a 20.4% increase compared to RMB 89,056,978 thousand in 2021[6] - Gross profit margin for 2022 was 6%, down from 7% in 2021[6] - Net profit margin for 2022 was 2%, a decrease from 3% in 2021[6] - The Group's turnover for the year was approximately RMB107,186 million, representing a year-on-year increase of 20.36%, while the profit attributable to the owners of the parent company decreased by 19.58% to RMB1,858 million[17][18] - The Group achieved sales of approximately RMB107,186 million in 2022, representing a year-on-year increase of approximately 20.36%[27] - Profit attributable to shareholders dropped by approximately 19.58% year-on-year to approximately RMB1,858 million in 2022[27] - Revenue from the consumer electronics business was RMB82,209 million, representing an increase of approximately 14.77% compared to 2021[29] - Revenue from components and parts in the consumer electronics business was approximately RMB14,155 million, representing a decrease of 9.58% year-on-year[29] - Revenue from assembly in the consumer electronics business was approximately RMB68,054 million, representing an increase of 21.57% year-on-year[29] - The Group's gross profit increased by 5.33% to approximately RMB6,350 million, with a gross profit margin decrease from 6.77% in 2021 to 5.92%[51] - The Group's revenue increased by 20.36% compared to the previous year, while profit attributable to equity holders decreased by 19.58%[47] Market Trends and Industry Performance - Global smartphone shipments in 2022 decreased by 11.3% year-on-year to 1.21 billion units[13] - Global PC market shipments in 2022 decreased by 16.5% year-on-year to 292.3 million units[13] - Global tablet PC shipments in 2022 decreased by 3.3% year-on-year to 162.8 million units[13] - China's mobile phone shipments in 2022 amounted to 272 million units, down 22.6% year-on-year[13] - 5G mobile phone shipments in China decreased by 19.6% year-on-year to 214 million units in 2022[13] - Global smartphone shipments in 2022 decreased by 11.3% year-on-year to 1.21 billion units, and domestic smartphone shipments in China dropped by 22.6% to 272 million units[14] - Global smartphone shipments in 2022 decreased significantly by 11.3% to 1.21 billion units[29] - Global PC market shipments in 2022 decreased by 16.5% to 292.3 million units[29] - Global tablet PCs shipments decreased by 3.3% year-on-year to 162.8 million units[29] - Annual mobile phone shipments in the Chinese market amounted to 272 million units in 2022, down by approximately 22.6% year-on-year[29] - Shipment of 5G mobile phones in China decreased by approximately 19.6% year-on-year to 214 million units[29] - Smartphone shipments are expected to rise by 2.8% in 2023, while PC shipments are forecasted to decline 5.6% to 281 million units, and global tablet shipments to fall 6.7% to 148 million units[37] - The smartphone market is expected to grow by 2.8% in 2023, while the PC market (including desktops, notebooks, and workstations) is projected to decline by 5.6% to 281 million units, and global tablet shipments are expected to drop by 6.7% to 148 million units[38] New Energy and Energy Storage Market - The global residential energy storage market saw a significant increase, with new installations reaching 15GWh in 2022, a 134% year-on-year growth[15][18] - China's new energy vehicle sales in 2022 reached 6.887 million units, a 93.4% year-on-year increase, with market share rising from 13.4% in 2021 to 25.6% in 2022[16][18] - The Group's residential energy storage product shipments grew rapidly, with business scale expanding several times, becoming a key driver for revenue growth in the new intelligent products segment[20][22] - The Group's new energy vehicle business maintained strong growth momentum, with significant increases in shipments of intelligent cockpits and network connection products[21][22] - Global residential energy storage installed capacity reached 15GWh in 2022, a 134% year-on-year increase[31] - China's new energy vehicle sales reached 6.887 million units in 2022, a 93.4% year-on-year increase, with market share rising from 13.4% to 25.6%[33] - The company's automotive intelligent system business revenue amounted to RMB9,263 million in 2022, accounting for 8.64% of total revenue, a 145.71% increase from the previous year[33] - By the end of 2026, 3.9 million households in Europe are expected to deploy residential battery-based energy storage systems, with cumulative energy storage capacity increasing by over 300% to reach 32.2GWh[40] - The global residential energy storage market is expected to reach $100 billion in the future, driven by favorable policies and rising market penetration[40] - China's new energy vehicle sales are expected to reach 9 million units in 2023, representing a year-on-year growth of 35%[42] - The new energy vehicle market in China is forecasted to reach 15.98 million units by 2026, with a CAGR of 35.1%[42] - The penetration rate of intelligent networked new energy vehicles in China is expected to reach 66% in 2023[42] Strategic Initiatives and Business Focus - The Group continued to deepen its strategic cooperation with major customers in the consumer electronics business, despite a weakened smartphone market affecting Android complete machine assembly and components revenue[19] - The Group is focusing on R&D and technological innovation, introducing product lines such as intelligent driving systems, thermal management systems, and intelligent chassis to enhance market competitiveness[21][22] - The Group aims to become a global leading solution provider in the new energy vehicle industry by deepening cooperation with domestic and international vehicle enterprises and increasing market share[21][22] - The Group will focus on mid-to-high-end products in the Android assembly business and strengthen strategic cooperation with customers[39] - The Group will continue to expand its domestic and overseas markets, improve globalization, and provide better services to customers[39] - The Group's residential energy storage, smart home, gaming hardware, and unmanned aerial vehicle segments are expected to maintain strong growth momentum in 2023[41] - The Group aims to introduce residential energy storage products to more overseas countries and regions, expecting high growth in shipment volume and revenue expansion[41] - The Group has introduced incremental track products such as intelligent driving systems, thermal management systems, and intelligent chassis and suspension[43] - The Group's new energy vehicle business segment is expected to continue rapid growth, leveraging its parent company's strong advantage in the sector[43] - The Group has diversified its product matrix to include new energy vehicle product series, residential energy storage products, and other new intelligent products[44] - The Group plans to deepen cooperation with domestic and overseas automotive companies and increase market share in the new energy vehicle industry[43] Corporate Governance and Leadership - The Group recommended a final dividend of RMB0.165 per ordinary share for the year, compared to RMB0.103 per ordinary share in 2021[17][18] - Final dividend declared at RMB0.165 per ordinary share, up from RMB0.103 in 2021[58][60] - Total share capital as of 31 December 2022 was 2,253,204,500 ordinary shares[59][60] - The Board held twelve meetings during the year to discuss the Group's overall strategy, operation, and financial performance[91] - The Board is responsible for formulating the Group's development strategy, setting management objectives, and overseeing performance[86] - The Company has complied with all applicable provisions of the Corporate Governance Code, except for deviation from code provision C.1.6 due to pandemic-related travel inconvenience[85] - The Board comprises seven Directors: two executive Directors, two non-executive Directors, and three independent non-executive Directors[87] - The Company has arranged appropriate insurance coverage for legal actions against its Directors and Senior Management, reviewed annually[92] - The Company received annual confirmations of independence from each independent non-executive Director as required under the Listing Rules[90] - The Board ensures timely access to necessary information to discharge its duties effectively[91] - The Board delegates specific tasks to management, including the preparation of financial accounts and implementation of approved strategies[92] - The Company has implemented corporate governance practices in compliance with the Corporate Governance Code since its listing[84] - The Board acknowledges its responsibility for preparing all information and representations of the Company's financial statements[92] - The Board held 12 meetings in 2022, with high attendance rates from all Directors, including 10/10 attendance for Wang Nian-qiang, Jiang Xiang-rong, Wang Chuan-fu, Wang Bo, Chung Kwok Mo John, Antony Francis MAMPILLY, and Qian Jing-jie at Board meetings[106] - The company has established committees including the Audit Committee, Remuneration Committee, and Nomination Committee to enhance corporate governance[107] - Directors are required to retire by rotation every three years, with Wang Nian-qiang, Wang Bo, and Qian Jing-jie proposed for re-election at the AGM[95] - Newly appointed Directors receive induction materials and participate in continuous professional development programs to ensure adequate performance of duties[96][97] - The company ensures independent views are available to the Board through mechanisms such as separate access to senior management and annual discussions with external auditors[99][100] - The roles of Chairman (Wang Chuan-fu) and Chief Executive Officer (Wang Nian-qiang) are held separately to ensure clear distinction of responsibilities[101] - The Audit Committee held four meetings during the year to review the audited consolidated financial statements for the year ended 31 December 2021, and the unaudited consolidated financial statements for the three months ended 31 March 2022, the six months ended 30 June 2022, and the nine months ended 30 September 2022[109] - The Remuneration Committee held one meeting during the year to review and recommend remuneration policies for Directors, senior management, and staff[112] - The Remuneration Committee's policy for executive Directors includes basic salary and discretionary bonus, with no equity-based remuneration for independent non-executive Directors[115] - The Nomination Committee reviewed the Board's structure, size, and composition, as well as the Board Diversity Policy and Nomination Policy during the year[117] - The Company reimburses reasonable expenses incurred by Directors in the course of their duties[116] - The Remuneration Committee ensures that the remuneration levels for Directors, senior management, and staff are appropriate and regularly monitored[112] - The Audit Committee consists of five members, including three independent non-executive Directors with appropriate professional qualifications[108] - The Remuneration Committee consists of five Directors, including three independent non-executive Directors[112] - The Company's remuneration policy for executive Directors links compensation to individual performance and corporate objectives[115] - The Nomination Committee assessed the independence of independent non-executive Directors and provided recommendations for rotation and re-appointment at the annual general meeting[117] - The Nomination Committee comprises five members, including three independent non-executive directors: Mr. Chung Kwok Mo John, Mr. Antony Francis MAMPILLY, and Mr. Qian Jing-jie[122][123] - The Nomination Committee held one meeting during the year, with all members attending[124][125] - The Board Diversity Policy aims to ensure diversity in terms of gender, age, cultural and educational background, professional experience, skills, and knowledge[127] - As of 31 December 2022, all members of the Board were male, indicating a lack of gender diversity[128][129] - The company plans to include a female Director by 2024 to comply with Rule 13.92 of the Listing Rules[130] - Female employees accounted for approximately 37.45% of the total workforce as of the report date[130] - The company's recruitment strategy focuses on achieving employee diversity in gender, age, cultural and educational background, expertise, skills, and know-how[131] - The total remuneration paid to the independent international auditor, Ernst & Young, for audit services was RMB1,240,000, with an additional RMB200,000 for non-audit services[132][133] - The company's female employees account for approximately 37.45% of the total workforce, reflecting a commitment to gender diversity[132] - The Board has proposed to re-appoint Ernst & Young as the independent international auditor for 2023, subject to shareholder approval at the AGM[134][135] Risk Management and Internal Controls - The company's risk management and internal control systems are designed to manage risks and provide reasonable assurance against material errors, losses, or fraud[138] - The Board reviewed the effectiveness of the Group's risk management and internal control systems in 2022, concluding that they are effective and adequate[151] - The company's risk management and internal control system is effective and sufficient, with no significant deficiencies identified in 2022[153] - The Internal Audit Department reports directly to the Audit Committee and plays a crucial role in the Group's risk management and internal control system[154][157] - All Directors complied with the Model Code for Securities Transactions, and no incidents of non-compliance were noted in 2022[155][158] - The Group has established policies for the timely disclosure of inside information in compliance with the Securities and Futures Ordinance[156][159] - Shareholders holding at least 5% of the total voting rights can requisition an extraordinary general meeting[160][164] - Shareholders representing at least 2.5% of the total voting rights or 50 shareholders can propose resolutions at general meetings[161][164] - The company adopts a voting by poll policy for all resolutions at shareholders' meetings to safeguard shareholders' rights[162][164] - The Board reviews the investor relations policy annually to ensure effective communication with investors and shareholders[166] - The company maintains diverse communication channels, including performance presentations and investor surveys, to engage with shareholders[166] - The Board confirmed the effective implementation of the investor relations policy throughout 2022[167] - The company actively implements investor relations policies to ensure fair and timely access to information for shareholders and investors, with annual reviews to maintain policy effectiveness[168] Environmental, Social, and Governance (ESG) - BYD Electronic adheres to the Environmental, Social, and Governance (ESG) Reporting Guide of the Hong Kong Stock Exchange, emphasizing materiality, quantitative data, balance, and consistency in its ESG reporting[172] - The company's ESG report covers the period from January 1, 2022, to December 31, 2022, and includes BYD Electronic (International) Company Limited and its principal subsidiaries[170][171] - BYD Electronic's subsidiaries, Huizhou BYD Electronic Co., Limited and Xi'an BYD Electronic Co., Limited, were awarded the national-level green factory honor in 2021 and 2022, respectively[177] - The Board of Directors is responsible for assessing and managing ESG risks, integrating ESG matters into business strategies, and overseeing corporate social responsibility performance through the ESG Committee[178] - The company uses internal statistics and relevant public data for its ESG report, ensuring no false records or material omissions, with all amounts denominated in RMB unless otherwise specified[175] - BYD Electronic actively manages relationships with stakeholders, including clients, staff, suppliers, investors, and regulators, to incorporate feedback and evaluate ESG progress[182] - The company's ESG report follows the principles of the "14th Five-Year Plan" for promoting green development and achieving harmony between humanity and nature[169][173] - The Board of Directors regularly reviews and evaluates the company's corporate social responsibility work in March each year, based on annual working plans and the importance of relevant topics[179] - Stakeholders can contact the company via email at BYDEIR@byd.com for any questions or suggestions regarding the ESG report or management[176] - Scope I greenhouse gas emissions in 2022 were 15,165.55 tons (carbon dioxide equivalence)[192] - Scope II greenhouse gas emissions in 2022 were 1,556,489.57 tons (carbon dioxide equivalence)[192] - Total greenhouse gas emissions in 2022 were 1,571,655.13 tons (carbon dioxide equivalence)[192] - Greenhouse gas emission intensity in 2022 was 16.86 tons per person[192] - The company did not encounter any environmental pollution or ecologically damaging accidents in 2022[190] - The company strictly complies with environmental laws and regulations, including the Prevention and Control of Atmospheric Pollution Law, Water Pollution Prevention and Control Law, and Environmental Protection Law of the People's Republic of China[193] - Waste emissions include waste water, waste gas, solid wastes, and noise, with waste water further divided into production waste water and domestic sewage[194] - The company regularly reviews its greenhouse gas emission data and has submitted the assessment results of important ESG topics to the Board of Directors for confirmation and approval[187] - The company invests a large amount of capital resources in environmental protection to achieve harmonious coexistence between the corporate and the environment[190] - The company actively coordinates economic interests with environmental considerations, ensuring a balance between economic benefits and environmental protection[193] - Scope I includes direct greenhouse gas emissions from energy, processing, and transportation, while Scope II covers indirect emissions from purchased electricity[198] - In 2022, the company treated and discharged approximately 1,409,162 tons of sewage[199] - The total hazardous waste generated in 2022 was approximately 26,627 tons, with a density of 0.2857 ton/person[199] - Emission coefficient for the southern power grid in 2019 was 0.8042 kg CO2 equivalence/kWh[198] - Emission coefficient for the northwest power grid in 2019 was 0.8922 kg CO2 equivalence/kWh[198] - Emission coefficient for the central China power grid in 2019 was 0.8587 kg CO2 equivalence/kWh[198] Financial Position and Liquidity - Net assets increased to RMB 25,635,069 thousand in 2022, up from RMB 24,027,103 thousand in 2021[7] - Total assets grew to RMB 56,994,373 thousand in 2022, compared to RMB 41,175,282 thousand in 2021[7] - The Group recorded cash inflow from operations of approximately RMB

Financial Performance - Revenue increased by 20.36% to RMB 107,186 million[2] - Gross profit rose by 5.33% to RMB 6,350 million[2] - Net profit attributable to shareholders decreased by 19.58% to RMB 1,858 million[2] - Earnings per share fell by 19.58% to RMB 0.82[2] - Total revenue for 2022 reached RMB 107,186,288 thousand, a 20.4% increase from RMB 89,056,978 thousand in 2021[21] - The group reported a pre-tax profit of RMB 10,615,438 thousand for 2022, up from RMB 9,581,159 thousand in 2021, representing an increase of 10.8%[28] - Other income for the year totaled RMB 1,508,534 thousand, significantly higher than RMB 656,763 thousand in 2021, marking a 129.5% increase[23] - The effective tax rate for the group was reduced to 15% for certain subsidiaries, reflecting tax incentives for high-tech enterprises[29] - The actual tax expense for 2022 was RMB 80,952 thousand, representing 4% of the pre-tax profit of RMB 1,938,570 thousand, compared to RMB 155,411 thousand and 6% for 2021[30] - Basic earnings per share for 2022 were RMB 0.825, calculated from the profit attributable to equity holders of the parent of RMB 1,857,618 thousand and weighted average shares of 2,253,204,500[31] Revenue Segmentation - Revenue from the new energy vehicle segment grew by 145.71% year-on-year[1] - Revenue from new smart products, including home energy storage and drones, increased by 22.19% year-on-year[1] - Revenue from the Chinese market (including Hong Kong, Macau, and Taiwan) was RMB 40,583,926 thousand, a decrease of 1.6% from RMB 41,222,478 thousand in 2021[21] - Overseas revenue surged to RMB 66,602,362 thousand, up 39.3% from RMB 47,834,500 thousand in 2021[21] - In the consumer electronics sector, the company achieved revenue of RMB 82.209 billion, an increase of approximately 14.77% compared to 2021[41] - The assembly revenue for the company was approximately RMB 68.054 billion, reflecting a year-on-year increase of 21.57%[41] - The components revenue was approximately RMB 14.155 billion, showing a decline of 9.58% year-on-year[41] - In 2022, the new smart products business recorded revenue of approximately RMB 15.207 billion, accounting for 14.19% of total revenue, representing a growth of 22.19% compared to 2021[42] - Revenue from the automotive intelligent systems business was approximately RMB 9.263 billion in 2022, accounting for 8.64% of total revenue, an increase of about 145.71% year-on-year[42] Assets and Liabilities - Total assets increased to RMB 56,994 million from RMB 41,175 million year-on-year[4] - Current liabilities rose to RMB 30,143 million from RMB 16,220 million year-on-year[4] - Trade receivables increased to RMB 10,495,823 thousand in 2022 from RMB 9,279,580 thousand in 2021, with a provision for impairment of RMB 24,414 thousand[32] - The aging analysis of trade receivables shows that 90 days overdue accounts for 94% of total receivables, with a credit loss rate of 0.22%[33] - Accounts payable increased significantly to RMB 21,490,421 thousand for amounts due within 90 days in 2022, compared to RMB 11,320,806 thousand in 2021[35] - The total amount payable to related parties reached RMB 19,452,654 thousand in 2022, up from RMB 9,744,581 thousand in 2021[36] Dividends and Shareholder Returns - Proposed final dividend of RMB 0.165 per share[1] - The board proposed a final dividend of RMB 0.165 per share for the year ended December 31, 2022, compared to RMB 0.103 per share for the previous year[37] - The board declared a final dividend of RMB 0.165 per ordinary share for the year, compared to RMB 0.103 per share in the previous year, pending shareholder approval[59] - The company has maintained a sustainable dividend policy, balancing shareholder expectations with prudent capital management[58] - The company will regularly review and reassess its dividend policy and its effectiveness[58] Corporate Governance and Compliance - The financial statements are prepared in accordance with the Hong Kong Financial Reporting Standards, reflecting a historical cost basis with certain investments measured at fair value[10] - The consolidated financial statements include all subsidiaries controlled by the company, with performance accounted for from the date control is obtained[11] - The company has adopted revised Hong Kong Financial Reporting Standards for the first time this year, which did not impact its financial position or performance[12] - The audit committee reviewed the accounting policies and financial reporting matters, ensuring compliance with applicable standards[61] - The independent auditor confirmed that the figures in the preliminary annual results announcement were consistent with the consolidated financial statements[61] - The board is committed to high standards of corporate governance and has adhered to the relevant codes, with one exception due to pandemic-related attendance issues[60] Market Trends and Future Outlook - The company is actively expanding into new markets and enhancing its product offerings to foster growth despite external economic pressures[40] - The company continues to strengthen strategic partnerships with major clients, particularly in the overseas market, to maintain its industry leadership[41] - The global smartphone market saw a significant decline of 11.3% in shipments, totaling 1.21 billion units in 2022[41] - The global household energy storage demand is expected to reach 15 GWh in 2022, a significant year-on-year increase of 134%[42] - The company plans to enhance core technology R&D and strengthen vertical integration advantages in 2023, aiming for continued growth in new energy vehicle product lines[44] - The International Monetary Fund has raised its 2023 global economic growth forecast from 2.7% to 2.9%, with China's GDP expected to grow around 5%[44] - In 2023, China's new energy vehicle sales are expected to reach 9 million units, representing a year-on-year growth of 35%[46] - The market size for new energy vehicles in China is projected to reach 15.98 million units by 2026, with a compound annual growth rate of 35.1%[46] - The penetration rate of smart connected new energy vehicles in China is expected to reach 66% in 2023[46] - Emerging businesses are increasingly contributing to the group's revenue, with strong profitability and growth potential[46] - The group aims to deepen cooperation with domestic and international automakers to continuously expand its customer base and market share[46] Investments and Capital Management - As of December 31, 2022, the company's capital commitments amounted to approximately RMB 1,026 million, down from RMB 1,191 million as of December 31, 2021[60] - There were no significant investments, acquisitions, or disposals of subsidiaries or associated companies during the year[60] - The company did not repurchase any shares during the year, nor did it purchase or sell any listed securities[59] - The group had interest-bearing bank and other borrowings of approximately RMB 2,004 million, compared to zero the previous year[53] - The net debt ratio as of December 31, 2022, was -12.93%, compared to -9.63% the previous year[53] Environmental and Social Responsibility - There were no significant environmental or social safety issues reported during the year[60]

Financial Performance - For the nine months ended September 30, 2022, the company reported revenue of RMB 71,156,021 thousand, representing a 7.92% increase compared to RMB 65,935,023 thousand for the same period in 2021[2] - Gross profit for the same period was RMB 4,124,075 thousand, showing a decrease of 10.42% from RMB 4,603,695 thousand in 2021[2] - Net profit attributable to equity holders of the parent company was RMB 1,236,772 thousand, a decline of 42.66% compared to RMB 2,156,784 thousand in the previous year[2] - Basic and diluted earnings per share decreased to RMB 0.55 from RMB 0.96, reflecting a 42.66% drop[2] Assets and Liabilities - Total assets increased to RMB 55,031,867 thousand, a 33.65% rise from RMB 41,175,282 thousand as of December 31, 2021[2] - Total liabilities rose to RMB 30,003,771 thousand, marking a significant increase of 74.97% from RMB 17,148,179 thousand[2] - Net asset value stood at RMB 25,028,096 thousand, a slight increase of 4.17% from RMB 24,027,103 thousand[2] Financial Reporting and Advisory - The financial data for the nine months ended September 30, 2022, is unaudited and based on internal data and management accounts[3] - The board of directors has reviewed the unaudited consolidated results for the period[3] - Investors are advised to exercise caution when trading the company's shares and consult their professional advisors regarding their investment status[3]

Financial Performance - Revenue for the first half of 2022 decreased by approximately 1.88% year-on-year to RMB 43,694 million[5] - Gross profit fell by 23.94% to RMB 2,328 million, reflecting pressure on profitability due to low capacity utilization[4] - Profit attributable to owners of the parent company dropped by 61.43% year-on-year to RMB 634 million, with earnings per share at RMB 0.28[4] - Revenue from the smartphone and laptop segment decreased by approximately 11.79% year-on-year to RMB 33,151 million[7] - The Group's overall capacity utilization rate was low, impacting profitability during the first half of the year[5] - Revenue decreased by 1.88% compared to the same period last year, and profit attributable to owners of the parent company decreased by 61.43% due to the resurgence of the pandemic and weak market demand[23] - Profit before tax decreased to RMB 688,935, a decline of 60.5% compared to RMB 1,746,207 for the same period in 2021[72] - Profit for the period was RMB 633,798, representing a decrease of 61.4% from RMB 1,643,082 in the prior year[72] - Total comprehensive income for the period was RMB 632,809, down from RMB 1,640,961 in the same period last year[74] Market Trends - The global smartphone market saw a decline of approximately 8.8% year-on-year, with shipments totaling 600 million units in the first half of 2022[7] - The Chinese smartphone market experienced a 21.7% year-on-year drop in shipments, totaling 136 million units[7] - In the first half of 2022, global smartphone shipments decreased by approximately 8.8% year-on-year to 600 million units, while China's smartphone shipments fell by about 21.7% to 136 million units[8] - The new energy vehicle market in China is projected to reach 5.225 million units in 2022, representing a year-on-year increase of 47.2%, with a penetration rate close to 20%[19] - The global Heat Not Burn (HNB) product industry is forecasted to reach USD 31.37 billion in 2022, representing a 49% year-on-year growth[10] - The global electronic atomization equipment market is expected to reach USD 108 billion in 2022, marking a year-on-year growth of 35%[17][18] - The commercial unmanned aerial vehicle market is forecasted to grow from USD 6.51 billion in 2022 to USD 34.5 billion by 2028, with a CAGR of 32%[17][18] Product Development and Innovation - Investment in research and development continued to increase, focusing on new energy vehicle product lines to support future growth[4] - The Group plans to maintain a high level of investment in research and development to seize development opportunities in new energy and electronic intelligent manufacturing industries[14] - The Group aims to maintain its leading position in the Android components and parts business by focusing on mid-to-high-end products and continuing technological innovation[15][16] - The Group plans to enhance its R&D investment and technological innovation to strengthen its competitiveness in the automotive field[19] - New product categories are expected to enter mass production in the second half of the year, providing new growth opportunities for the Group[15][16] Operational Efficiency - The group recorded operating cash inflow of approximately RMB 3,275 million, down from RMB 3,707 million in the first half of 2021, primarily due to decreased cash received from goods sold[29] - Cash generated from operations was RMB 3,387,472, down from RMB 3,783,703 in the previous year, reflecting a decrease of 10.5%[86] - Net cash flows from operating activities amounted to RMB 3,274,669, compared to RMB 3,706,912 in the prior year, indicating a decline of 11.6%[86] - The company reported a loss on disposal of items of property, plant, and equipment of RMB 4,576, down from RMB 7,785 in the previous year, indicating a 41.5% improvement[84] Financial Position - As of June 30, 2022, the group's gearing ratio was -13.21%, indicating a strong financial position with sufficient liquidity to meet commitments and capital expenditure requirements[35] - As of June 30, 2022, the Group's cash and cash equivalents were primarily held in RMB and USD, with sufficient liquidity to meet significant commitments and operational funding needs for at least the next 12 months[39] - The Group's capital debt ratio was -13.21% as of June 30, 2022, compared to -9.63% on December 31, 2021, indicating a decrease in leverage[39] - Total assets increased to RMB 44,644,727,000, up from RMB 41,175,282,000 as of December 31, 2021, representing a growth of approximately 11.99%[76] - Current assets reached RMB 30,002,363,000, an increase of 8.66% from RMB 27,629,927,000 at the end of 2021[79] - Total equity rose to RMB 24,427,832,000, compared to RMB 24,027,103,000 at the end of 2021, reflecting an increase of approximately 1.66%[79] Shareholder Information - As of June 30, 2022, the number of issued ordinary shares was 2,253,204,500[43] - Mr. Wang Chuan-fu held 518,351,550 shares in BYD, representing approximately 17.81% of the total issued shares of that company[47] - Golden Link Worldwide Limited held 1,481,700,000 ordinary shares, accounting for approximately 65.76% of the total issued shares[55] - The Company did not adopt any share option scheme during the review period[50] - The Company confirmed compliance with the Model Code for securities transactions by its Directors during the period[60] Compliance and Governance - The Company complied with the applicable provisions of the Corporate Governance Code during the period, except for a deviation regarding attendance at the annual general meeting[58] - The non-executive Director, Mr. Wang Bo, did not attend the annual general meeting on June 8, 2022, due to other business engagements[59] - The financial statements were approved and authorized for issue by the board of directors on August 29, 2022[173] Related Party Transactions - The Group's trade balances with related parties are unsecured, interest-free, and have no fixed terms of repayment[158] - The Group's trade balances with related parties as of June 30, 2022, include lease liabilities of RMB 100,464,000 to the ultimate holding company and RMB 231,267,000 to fellow subsidiaries[159] - The Group's sales of glass casing products to fellow subsidiaries were recorded at RMB 0 for the six months ended June 30, 2022, compared to RMB 12,872,000 in 2021, indicating a complete cessation of sales in this category[155]

[Unaudited First Quarter 2022 Results Announcement](index=1&type=section&id=Unaudited%20First%20Quarter%202022%20Results%20Announcement) This announcement presents the unaudited consolidated results of BYD Electronic (International) Company Limited for the three months ended March 31, 2022 [Basic Announcement Information](index=1&type=section&id=Basic%20Announcement%20Information) This section details the purpose and regulatory basis for the disclosure of the Group's unaudited first-quarter consolidated results - The announcement's purpose is to disclose the **unaudited consolidated results** of BYD Electronic (International) Company Limited (the Group) for the three months ended March 31, 2022[1](index=1&type=chunk) - This announcement is made pursuant to Rule 13.09(2)(a) of the Listing Rules of The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)[1](index=1&type=chunk) [Quarterly Performance Summary](index=1&type=section&id=Quarterly%20Performance%20Summary) The Group's Q1 2022 revenue increased by 5.24% to **RMB 20.933 billion**, but gross profit and profit attributable to equity holders decreased by 10.69% and 77.71% respectively, leading to a significant decline in EPS, while total assets and liabilities grew with stable net assets Key Financial Performance for Q1 2022 (Year-on-Year) | Indicator | Three Months Ended March 31, 2022 (Unaudited) | Three Months Ended March 31, 2021 (Unaudited) | Change | | :--- | :--- | :--- | :--- | | Revenue | RMB Thousand 20,932,823 | RMB Thousand 19,889,806 | 5.24% | | Gross Profit | RMB Thousand 1,144,567 | RMB Thousand 1,281,616 | -10.69% | | Profit Attributable to Equity Holders of the Parent | RMB Thousand 180,073 | RMB Thousand 807,960 | -77.71% | | Earnings Per Share (Basic and Diluted) | RMB 0.08 | RMB 0.36 | -77.71% | Key Balance Sheet Indicators (Period-end Comparison) | Indicator | March 31, 2022 (Unaudited) | December 31, 2021 (Audited) | Change | | :--- | :--- | :--- | :--- | | Total Assets | RMB Thousand 43,276,796 | RMB Thousand 41,175,282 | 5.10% | | Total Liabilities | RMB Thousand 19,073,631 | RMB Thousand 17,148,179 | 11.23% | | Net Assets | RMB Thousand 24,203,165 | RMB Thousand 24,027,103 | 0.73% | [Financial Data Notes and Board Information](index=2&type=section&id=Financial%20Data%20Notes%20and%20Board%20Information) This section highlights the unaudited nature of the financial data, advises investor caution when trading company shares, and discloses the composition of the company's Board of Directors - The financial information for the three months ended March 31, 2022, has not been reviewed or audited by the auditors and is prepared based on the Group's internal data and management accounts[3](index=3&type=chunk) - The Company's Audit Committee has reviewed the **unaudited consolidated results** for the three months ended March 31, 2022[3](index=3&type=chunk) - The Board of Directors includes Executive Directors Mr. Wang Nianqiang and Mr. Jiang Xiangrong; Non-executive Directors Mr. Wang Chuanfu and Mr. Wang Bo; and Independent Non-executive Directors Mr. Zhong Guowu, Mr. Antony Francis MAMPILLY, and Mr. Qian Jingjie[4](index=4&type=chunk)

Financial Performance - Revenue for the year ended December 31, 2021, was RMB 89,056,978, an increase of 21.8% from RMB 73,121,075 in 2020[5] - Gross profit for 2021 was RMB 6,029,165, with a gross profit margin of 7%, down from 13% in 2020[5] - Profit attributable to owners of the parent was RMB 2,309,882, representing a decrease of 57.6% compared to RMB 5,441,371 in 2020[5] - Net profit margin for 2021 was 3%, down from 7% in 2020[5] - The Group recorded a turnover of approximately RMB 89,057 million, representing a year-on-year increase of 21.79%[21] - Profit attributable to the owners of the parent company decreased by 57.55% to RMB 2,310 million compared to 2020[21] - Revenue from the smartphone and laptop business reached RMB 71,632 million, representing a significant increase of approximately 47.03% compared to 2020[48] - The revenue from assembly increased by approximately 79.69% year on year to approximately RMB 55,977 million, while revenue from components and parts decreased by 10.88% year on year to approximately RMB 15,655 million[48] - Revenue increased by 21.79% compared to the previous year, while profit attributable to equity holders of the parent decreased by 57.55 due to the pandemic and chip shortages[83] Assets and Liabilities - Total assets increased to RMB 41,175,282 in 2021, up from RMB 37,976,088 in 2020[5] - Net assets rose to RMB 24,027,103 in 2021, compared to RMB 22,272,293 in 2020[5] - The company's current ratio was 1.70 in 2021, slightly down from 1.76 in 2020[5] - The Group's cash inflow from operations was approximately RMB 6,335 million, an increase from approximately RMB 3,209 million in 2020[93] - As of December 31, 2021, the group had no bank borrowings, compared to RMB 2,009 million in borrowings as of December 31, 2020[98] - The group's gearing ratio was -9.63% as of December 31, 2021, compared to -3.24% as of December 31, 2020, indicating a strong liquidity position[99] Market Trends and Growth - The People's Republic of China accounted for 46% of revenue in 2021, down from 70% in 2020, indicating a shift towards overseas markets[7] - Global smartphone shipments increased by 5.7% year on year to 1.35 billion units in 2021, with 5G mobile phone shipments rising by 63.5% to 266 million units[16] - Global PC shipments increased by 14.8% year on year to 349 million units in 2021, driven by the demand for remote working and digital collaboration[17] - The smart home equipment market in China is expected to grow by 14.6% year on year, reaching 230 million units in 2021[49] - The sales volume of new energy vehicles in China reached 3.521 million units in 2021, representing a year-on-year increase of 157.5%, with a market share increase to 13.4%[57][60] - The electronic atomization equipment market in China is projected to grow by 170% year-on-year to RMB 116 billion, with a penetration rate of only 2.2%, indicating significant growth potential[52][54] Strategic Initiatives - The Group successfully expanded its new product lines in North America, achieving mass production of a full series of products including metal, plastic, glass, ceramics, and assembly[23] - The Group is actively expanding its market share in new intelligent products, including smart home and gaming hardware, driving rapid growth in this segment[27] - The construction of a new base in Vietnam commenced, expanding the Group's international footprint[29] - Looking forward to 2022, the Group aims to optimize customer resources and deepen strategic cooperation to secure long-term development across all major business segments[33] - The Group aims to enhance its core competitiveness by leveraging comprehensive advantages in materials, molds, components, and intelligent manufacturing[62] Research and Development - The Group is actively investing in R&D for several new product lines, particularly in the automotive intelligent system sector, which has seen steady growth in shipments due to the booming new energy vehicles market[43] - The Group aims to strengthen R&D and design capabilities to release growth potential in automotive intelligent products[74] - The company has a strong focus on research and development of new technologies and materials, particularly in the structural parts business[132][134] Corporate Governance - The Company complied with the applicable code provisions of the Corporate Governance Code during the year, except for deviation from code provision A.6.7 regarding attendance at general meetings[163] - The Board is responsible for formulating the strategic business direction and overseeing management performance[164] - The Company has implemented corporate governance practices to comply with the Listing Rules since its listing on the Stock Exchange[162] - The composition of the Board is balanced, with Directors possessing relevant knowledge and experience for the Group's operations and development[169] - The Company aims to align executive compensation with the Group's operating results[199] Human Resources - The total staff cost accounted for approximately 11.53% of the group's revenue, with around 91 thousand employees as of December 31, 2021[108] - The group standardized a three-tier training framework for new employees, ensuring comprehensive training and assessment before they assume their roles[109] - All directors participated in training and seminars to enhance their knowledge and skills[181] Environmental and Social Responsibility - The company has maintained a commitment to sustainable development and has received various awards for innovation and contributions to the economy[138][140] - The company is committed to sustainable development and actively participates in charitable causes, contributing to pandemic prevention efforts[59]

Financial Performance - The Group recorded a turnover of approximately RMB 44,531 million, representing a year-on-year increase of 41.88%, marking a record high for the same period in history[7]. - Profit attributable to shareholders decreased by approximately 33.55% to approximately RMB 1,643 million compared to the same period last year[10]. - The Group's gross profit decreased by approximately 25.35% to RMB 3,061 million, with a gross profit margin dropping from approximately 13.06% to 6.87% during the period[41]. - Revenue for the six months ended June 30, 2021, was RMB 44,530,845, an increase from RMB 31,386,402 for the same period in 2020, representing a growth of 42%[88]. - Profit before tax decreased to RMB 1,746,207 from RMB 2,830,610, reflecting a decline of 38% year-over-year[88]. - Total comprehensive income for the period ended June 30, 2021, was RMB 1,640,961,000, compared to RMB 2,466,149,000 for the same period in 2020, reflecting a decrease of approximately 33.5%[96]. - Basic and diluted earnings per share for the period were RMB 0.73, down from RMB 1.10 in the same period last year, a decline of 34%[88]. Revenue Breakdown - Revenue from the smartphone and laptop business amounted to RMB 37,581 million, representing a significant increase of approximately 102.88% over 2020[12]. - Revenue from components and parts amounted to approximately RMB 7,110 million, representing a decrease of 17.47% compared to the same period in 2020[12]. - Revenue from assembly amounted to approximately RMB 30,471 million, representing a substantial increase of approximately 207.51% compared to the same period in 2020[12]. - The Group's new intelligent product business recorded revenue of RMB 5,014 million, accounting for 11.26% of the overall revenue and representing an increase of approximately 38.35% over 2020[16]. - Revenue from the automotive intelligent system business amounted to approximately RMB 1,290 million, accounting for 2.90% of the total revenue and representing an increase of approximately 89.74% compared to the same period last year[17]. - Revenue from the PRC (including Hong Kong, Macau, and Taiwan) was RMB 23,644,688, while overseas revenue reached RMB 20,886,157, indicating significant growth in international markets[112]. Market Trends and Growth - Shipments of new intelligent products, including smart home devices and gaming hardware, increased significantly, with a year-on-year growth of 38.35%[6]. - The automotive intelligent system business experienced rapid growth, with a year-on-year increase of 89.74% due to the recovery in automobile sales, particularly in new energy vehicles[6]. - The demand for medical protection products has significantly decreased, impacting revenue and profit negatively compared to the previous year[10]. - The smart home device market in China is expected to reach 250 million units in 2021, representing a year-on-year growth of 21.1%[30]. - Global shipments of smart home devices are projected to reach 1.4 billion units by 2025, with a compound annual growth rate (CAGR) of 12.2% from 2020 to 2025[30]. - The global autonomous driving market is expected to grow rapidly, with a CAGR of 18.3% from 2020 to 2024[33]. Operational Highlights - The Group's business has entered a new round of rapid growth cycle, leveraging its industry-leading R&D and manufacturing capabilities[6]. - The Group has deepened cooperation with large customers on heat-not-burn products, leading to an increase in revenue scale[16]. - The Group's diversified market layout strategy has been actively broadened, leading to improved market share among key customers despite industry chip shortages[7]. - The Group's liquidity is sufficient to meet daily management and capital expenditure requirements for at least the next 12 months[47]. - The Group's overseas sales accounted for 47% of total sales in the first half of 2021, a significant decrease from 53% in the same period of 2020[40]. Investments and Assets - The Group acquired assets at a cost of RMB 2,378,880,000 during the six months ended June 30, 2021, compared to RMB 994,577,000 in the same period of 2020, indicating a strong investment in growth[127]. - The total assets as of June 30, 2021, were RMB 37,436,381, a slight decrease from RMB 37,976,088 at the end of 2020[92]. - Non-current assets increased to RMB 13,103,539 from RMB 11,907,208, representing a growth of 10%[92]. - The Group's interest-bearing borrowings as of June 30, 2021, were not affected by the interest rate benchmark reform, as no rates were replaced by risk-free rates during the period[110]. Corporate Governance - The audit committee reviewed the unaudited results for the six months ended June 30, 2021, ensuring compliance with accounting policies and practices[83]. - The board emphasizes high standards of corporate governance and has complied with the applicable provisions of the Corporate Governance Code during the period[74]. - The company has adopted a Board Diversity Policy to ensure a diverse skill set among board members, focusing on merit-based appointments[82]. Employee and Shareholder Information - The Group had approximately 101,300 employees as of June 30, 2021, with total staff costs accounting for approximately 10.75% of the Group's revenue[56]. - The final declared dividend for the six months ended June 30, 2021, was RMB 0.241 per ordinary share, an increase from RMB 0.071 per share in 2020, reflecting a commitment to returning value to shareholders[122]. - Mr. Wang Chuan-fu held 518,351,550 shares, representing approximately 18.12% of the total issued shares of BYD[63]. Financial Management - Cash inflow from operations was approximately RMB 3,707 million, an increase from RMB 3,508 million in the first half of 2020, primarily due to increased cash received from goods sold[42]. - The company reported a net cash flow from operating activities of RMB 3,706,912,000 for the six months ended June 30, 2021, compared to RMB 3,507,571,000 in the same period of 2020, showing an increase of about 5.7%[101]. - The company did not experience significant impacts on operations or liquidity due to fluctuations in currency exchange rates during the period[54]. - The company has not purchased, sold, or redeemed any listed securities during the six months ended June 30, 2021[77].

Financial Performance - For the year ended December 31, 2020, BYD Electronic reported revenue of RMB 73,121 million, a 38% increase from RMB 53,028 million in 2019[12]. - Gross profit for 2020 was RMB 9,629 million, with a gross profit margin of 13%, up from 7% in 2019[13]. - Net profit attributable to equity holders of the parent reached RMB 5,441 million, representing a net profit margin of 7%, compared to 3% in the previous year[13]. - The Group recorded a turnover of approximately RMB 73,121 million, representing a year-on-year increase of 37.89%[24]. - Profit attributable to the owners of the parent company was RMB 5,441 million, a significant increase of 240.59% compared to 2019[24]. - Revenue increased by 37.89% compared to the previous year, with profit attributable to equity holders of the parent rising by 240.59% due to product mix optimization and improved operational efficiency[64][65]. - Gross profit increased by approximately 143.32% to approximately RMB 9,629 million, with gross profit margin rising from approximately 7.46% in 2019 to 13.17%[70][72]. Assets and Liabilities - The company's net assets increased to RMB 22,272 million in 2020, up from RMB 16,989 million in 2019[14]. - Total assets rose to RMB 37,976 million, with a gearing ratio of -3%[14]. - The gearing ratio was -3.24% as at 31 December 2020, compared to -5.29% as at 31 December 2019, indicating a decrease in net liabilities relative to equity[77]. - As of 31 December 2020, the company had bank borrowings of RMB 2,009 million and sufficient cash and cash equivalents to meet material commitments and working capital needs for at least the next year[76]. Market Trends - Global smartphone shipments decreased by 5.9% year on year to 1.292 billion units in 2020, while 5G mobile phone shipments rose to 163 million units[22]. - Global PC shipments increased by 13.1% year on year, reaching over 300 million units in 2020[23]. - The Chinese smartphone market saw shipments drop by 20.4% year on year, totaling 296 million units in 2020[22]. - The pandemic created new business opportunities, driving sustained sales growth in laptops, tablet PCs, and gaming hardware[23]. - New energy vehicles saw significant growth, with annual production and sales reaching 1.366 million and 1.367 million units respectively, up 7.5% and 10.9% year-on-year[45][46]. Business Segments - The Group's mobile phone and laptop business recorded revenue of RMB 48,719 million, an increase of approximately 7.29% over 2019[42]. - Revenue from components and parts amounted to approximately RMB 17,567 million, representing a decrease of 5.36% compared to the same period in 2019[42]. - Revenue from assembly amounted to approximately RMB 31,152 million, representing an increase of 16.03% compared to the same period in 2019[42]. - The Group's new intelligent product business generated revenue of RMB 9,476 million, accounting for 12.96% of the overall revenue, and representing an increase of approximately 57.27% over 2019[44]. - The Group's revenue from the automotive intelligent system business was approximately RMB 1,817 million, accounting for 2.49% of overall revenue, reflecting a year-on-year increase of about 13.98%[48][49]. Strategic Initiatives - The Group aims to expand and deepen strategic cooperation with customers to secure the development of its three major business segments[34]. - The Group plans to establish advanced manufacturing bases in multiple countries to support global business expansion and prepare for mass production of overseas projects[50]. - The Group's strategy includes optimizing customer structure and product portfolio to drive growth in the smartphone and laptop business[53][54]. - The Group aims to enhance its position in the automotive intelligent system business and strengthen cooperation with automobile OEMs to ensure long-term development[57][61]. - The Group plans to increase investment in research and development to expand product lines in emerging markets such as unmanned aerial vehicles and medical health products[61][62]. Corporate Governance - The Board of Directors held eleven meetings during the year to discuss overall strategy, operation, and financial performance[130]. - The Board comprises seven Directors, including two executive Directors, two non-executive Directors, and three independent non-executive Directors[125]. - The Audit Committee consists of five members, including three independent non-executive Directors, ensuring compliance with financial reporting and risk management standards[145]. - The Company has established various committees, including the Audit, Remuneration, and Nomination Committees, to enhance corporate governance[143]. - The Company has implemented corporate governance practices in compliance with the applicable provisions of the Corporate Governance Code since its listing on the main board of the Stock Exchange[122]. Risk Management - The Board is responsible for risk management and internal control systems, reviewing their effectiveness at least annually[175]. - The Company has established a comprehensive risk management and internal control system, which is reviewed at least annually by the Audit Committee[182]. - Major risks and related control measures are continuously reviewed and upgraded to ensure proper internal control procedures are in place[185]. - The Internal Audit Department plays a crucial role in the risk management framework and reports directly to the Audit Committee[187]. Future Outlook - Looking forward to 2021, the Group anticipates a rebound in the global economy, driven by the rollout of effective vaccines, despite existing uncertainties[34]. - The global smartphone production is expected to increase by 9% to 1.36 billion units in 2021, with 5G smartphone shipments projected to double to approximately 500 million units, raising market penetration to 37%[53][54]. - The global laptop shipments are anticipated to grow to 217 million units in 2021, reflecting an annual growth rate of 8.6%[53][54]. Employee and Remuneration - The Group employed approximately 100.3 thousand employees as of 31 December 2020[83]. - Total staff cost accounted for approximately 14.49% of the Group's revenue for the year ended 31 December 2020[83]. - The remuneration policy aims to retain and motivate executive Directors by linking compensation to individual performance and corporate objectives[155].