华显光电(00334.HK)2024年度营收增长76.6%至 45.49亿元 纯利大幅增长404.2% 格隆汇3月26日丨华显光电(00334.HK)公布难度业绩，截至2024年12月31日止年度，公司收入为人民币 45.49亿元，同比增长76.6%；母公司拥有者应占溢利为人民币6597.9万元，同比增长404.2%，每股基本 盈利为人民币3.15分。 回顾期内，集团深化与TCL华星的合作，与TCL华星主攻中尺寸及专业显示产品的生产线t9组成面板模 组一体化的商业模式，为多间一线品牌客户提供定制化服务。回顾期内，集团平板类模组的销量同比增 加12.9倍，达520万片，相关营业额达人民币9.26亿元；商用显示产品销量同比增长3.9倍，达1.2百万 台，相关营业额达人民币1,012.2百万元。由于2024年上半年智能手机市场表现疲软，回顾期内，集团手 机类模组销量同比下降11.6%，相关营业额为人民币1,855.1百万元。集团持续调整产品组合并优化客户 结构，并竭力于2024年下半年获得新增一线品牌客户之手机订单。 在产品组合多元化发展的带动下，平板类模组及商用显示产品为集团收入增长的主要驱动力，2024年第 四 ...

香港交易及結算所有限公司及香港聯合交易所有限公司對本公佈之內容概不負責， 對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公佈全部或任何 部份內容而產生或因倚賴該等內容而引致之任何損失承擔任何責任。 China Display Optoelectronics Technology Holdings Limited 華顯光電技術控股有限公 司 （於百慕達註冊成立之有限公司） （股份代號：334） 業績公佈 截至二零二四年十二月三十一日止年度 | 財務摘要 | | | | | --- | --- | --- | --- | | | 截至 | 截至 | | | | 二零二四年 | 二零二三年 | | | | 十二月 | 十二月 | | | | 三十一日 | 三十一日 | | | 業績 | 止年度 | 止年度 | 變動 | | | 人民幣千元 | 人民幣千元 | | | 收入 | 4,549,406 | 2,576,806 | +76.6% | | 毛利 | 196,319 | 174,051 | +12.8% | | 本年度溢利 | 65,979 | 13,086 | +404.2% | | 母公司擁有者 ...

Investment Rating - The report does not provide a specific investment rating for the company [1]. Core Insights - The company reported total revenue of 910 million RMB for the second quarter of 2024, representing a year-on-year growth of 43.3%. However, total display module shipments decreased by 25.5% to 8.949 million units, partially offset by a 92.2% increase in average selling price [1]. - Smartphone display module sales saw a significant decline of 51.0% to 5.658 million units, accounting for approximately 63.2% of total display module sales. The decline was attributed to inventory destocking by major customers and the loss of key clients [1]. - Despite the challenges, the company secured a project order from a Chinese smartphone manufacturer, which is expected to drive a rebound in display module sales in the second half of the fiscal year [1]. - The company has successfully expanded into the tablet and learning device display module market, with revenue from this segment increasing to 31.3% of total display module sales in the second quarter of 2024 [1]. - The gross profit margin for the first half of 2024 declined to 3.8%, primarily due to pressures from smartphone manufacturers and the increased proportion of tablet and learning device sales, leading to a compression of net profit margin to 0.4% [1]. Summary by Sections Financial Performance - Total revenue for 2023 was 2,576.8 million RMB, down 38.8% year-on-year. The gross profit was 174.1 million RMB, with a gross margin of 6.8% [7]. - The company recorded a net profit of 13.1 million RMB in 2023, reflecting a significant decline of 92.3% compared to the previous year [7]. - The operating profit margin for the first half of 2024 was 0.7%, indicating ongoing operational challenges [11]. Market Position - The company is positioned within a competitive landscape, with peers such as BYD Electronics and others showing varying market capitalizations and financial metrics [4]. - The average market capitalization for comparable companies is approximately 40.3 billion HKD, with the company itself having a market cap of 0.4 billion HKD [4]. Future Outlook - The report suggests that optimism regarding the company's recovery is premature, as it continues to face operational losses and challenges in improving profitability [1]. - The company needs to enhance its bargaining power and profit margins through new business lines and strategies to achieve significant transformation [1].

Investment Rating - The report assigns a stock rating of NR (Not Rated) for CDOT (00334.HK) [3] Core Insights - The report indicates that it is too early to be optimistic about CDOT's performance, highlighting stagnant sales volume in Q2 2024 and a potential rebound in the second half of the year [3] - CDOT recorded RMB 909.3 million in revenue for Q2 2024, reflecting a year-on-year increase of 43.3%, despite a significant drop in shipping volume [3] - The gross margin has decreased to 3.8% in 2024 H1, raising concerns about profit margins and the company's ability to withstand market fluctuations [3] Financial Performance Summary - Revenue for CDOT has shown fluctuations over the years: - 2020: RMB 3,571.2 million - 2021: RMB 5,840.1 million - 2022: RMB 4,208.4 million - 2023: RMB 2,576.8 million [3][12] - The net profit has also varied significantly: - 2020: RMB 6.3 million - 2021: RMB 199.7 million - 2022: RMB 169.0 million - 2023: RMB 13.1 million [3][12] - The gross margin has decreased from 7.8% in 2020 to 6.8% in 2023, with a notable drop to 3.8% in 2024 H1 [3][12] - The report notes a significant decline in sales volume for display modules, particularly for smartphones, which fell by 51.0% year-on-year in Q2 2024 [3] Market Dynamics - The sales volume of display modules for tablets and learning devices has increased, contributing 31.3% to total revenue in Q2 2024, indicating a diversification in revenue sources [3] - The report emphasizes the importance of improving bargaining power and profit margins for a potential turnaround in the company's performance [3]

Financial Performance - Revenue for the six months ended June 30, 2024, was RMB 1,841,000, compared to RMB 1,226,859 for the same period in 2023, representing a year-over-year increase of approximately 50%[6] - The gross profit for the first half of 2024 was RMB 69,605, compared to RMB 86,774 in the first half of 2023, indicating a decrease of about 19.8%[6] - The net profit attributable to owners of the parent company for the period was RMB 6,974, compared to a loss of RMB 7,418 in the same period last year, marking a significant turnaround[8] - Basic and diluted earnings per share for the period were RMB 0.33, compared to a loss of RMB 0.35 per share in the previous year[6] - The company reported a total comprehensive income of RMB 5,748 for the period, compared to a loss of RMB 16,771 in the same period last year[8] - The company reported a pre-tax loss of RMB 1,657,000 for the six months ended June 30, 2024, an improvement from a loss of RMB 11,076,000 in the previous year[14] - The total comprehensive income for the period was RMB 5,748,000, compared to a total comprehensive loss of RMB 16,771,000 for the same period in 2023[12] - The company reported a pre-tax loss of RMB 6,974,000 for the six months ended June 30, 2024, compared to a loss of RMB 7,418,000 for the same period in 2023, indicating a slight improvement in performance[42] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 1,839,987, an increase from RMB 1,719,377 as of December 31, 2023[9] - Current liabilities increased to RMB 1,838,723 from RMB 1,509,797 at the end of 2023, reflecting a rise of approximately 21.7%[9] - Non-current assets totaled RMB 1,033,385 as of June 30, 2024, compared to RMB 812,500 at the end of 2023, showing an increase of approximately 27.2%[9] - As of June 30, 2024, total equity amounted to RMB 1,015,196,000, an increase from RMB 1,009,448,000 as of January 1, 2024[11] - The company has maintained its equity attributable to owners at RMB 843,062, consistent with the previous year[10] Cash Flow and Financial Position - The company’s cash and cash equivalents increased to RMB 36,286 from RMB 23,178, representing a growth of about 56.5%[10] - The net cash flow from operating activities for the six months ended June 30, 2024, was RMB 272,711,000, compared to a negative RMB 147,362,000 for the same period in 2023[16] - Cash and cash equivalents at the end of the period were RMB 36,286,000, down from RMB 690,800,000 at the end of June 2023[16] - The company’s financing activities resulted in a net cash outflow of RMB 3,161,000 for the six months ended June 30, 2024[16] - The company’s cash and cash equivalents, along with time deposits, totaled RMB 553 million, with 43.4% in USD, 54.4% in RMB, and 2.2% in HKD[87] Revenue Breakdown - Revenue from the domestic market in China was RMB 1,628,833,000, compared to RMB 196,576,000 in the previous year, indicating a substantial increase of over 725%[24] - Sales to related companies accounted for approximately RMB 888,916,000, up from RMB 485,285,000 in the previous year, reflecting an increase of about 83%[26] - The revenue from industrial product sales was RMB 1,818,142,000, compared to RMB 1,209,564,000 in the previous year, marking an increase of approximately 50%[28] - For the six months ended June 30, 2024, total sales of products reached RMB 818,470,000, a significant increase from RMB 409,971,000 in the same period of 2023, representing a growth of 99.5%[67] Expenses and Costs - The cost of sales rose significantly to RMB 1,771,395,000 in the first half of 2024, compared to RMB 1,140,085,000 in the same period of 2023, representing an increase of about 55.5%[33] - Research and development expenses increased to RMB 64,236,000 in the first half of 2024, up from RMB 52,136,000 in the same period of 2023, reflecting a growth of approximately 23.5%[33] - The company incurred a depreciation expense of RMB 44,543,000 for property, plant, and equipment during the six months ended June 30, 2024[14] - The company’s rental and related expenses amounted to RMB 2,319,000 for the six months ended June 30, 2024, compared to RMB 1,861,000 in the same period of 2023, reflecting an increase of 24.6%[67] Share Capital and Incentive Plans - The total issued ordinary shares remained unchanged at 2,114,307,929 shares as of June 30, 2024, with a corresponding value of RMB 172,134[57] - The company has a share option plan in place to incentivize participants, which includes employees and consultants across the group[59] - The total number of shares granted under the share incentive plan reached 103,289,988, with 102,946,488 shares vested and 343,500 shares forfeited as of June 30, 2024[61] - The company has a share option plan that allows for the issuance of up to 172,149,980 options, which is approximately 8.14% of the total issued shares as of June 30, 2024[64] - The board has decided not to declare any interim dividend for the six months ending June 30, 2024, consistent with the previous period[110] Market and Industry Trends - In the first half of 2024, the global smartphone shipment increased by 6.5% year-on-year, reaching 285.4 million units in Q2, with total shipments exceeding 570 million units in the first half[78] - The domestic smartphone market in China saw shipments of 139 million units in the first half of 2024, representing an 11.6% year-on-year growth, outperforming the global market[78] - The panel industry entered a new upcycle in 2024, with panel prices showing a moderate upward trend and signs of market recovery[78] - The demand for A-Si LCD smartphone panels continues to rise, although competition in the low-end market remains intense due to cost pressures[78] Corporate Governance and Compliance - The company has complied with the corporate governance code, with the exception of the company secretary not being an employee of the issuer[111] - The audit committee, consisting of four independent non-executive directors, has reviewed the unaudited interim consolidated financial statements for the six months ending June 30, 2024, ensuring compliance with applicable accounting standards and regulations[115] - The interim report for 2024 was published on August 27, 2024, detailing the company's financial performance and governance practices[116]

Financial Performance - Revenue for the six months ended June 30, 2024, reached RMB 1,841,000, representing a 50.1% increase compared to RMB 1,226,859 for the same period in 2023[1] - Gross profit decreased to RMB 69,605, down 19.8% from RMB 86,774 in the previous year[1] - The company reported a profit of RMB 6,974 for the period, a significant recovery from a loss of RMB 7,418 in the same period last year[2] - Basic earnings per share for the period was RMB 0.33, compared to a loss of RMB 0.35 per share in the previous year[3] - The total comprehensive income for the period was RMB 5,748, compared to a loss of RMB 16,771 in the same period last year[4] - The company reported a profit attributable to owners of the parent of RMB 6,974,000 for the six months ended June 30, 2024, compared to a loss of RMB 7,418,000 for the same period in 2023[24] - The company achieved a profit attributable to owners of RMB 7.0 million, compared to a loss of RMB 7.4 million in the same period last year[34] Revenue Breakdown - Revenue for the six months ended June 30, 2024, reached RMB 1,841 million, a significant increase of 50% compared to RMB 1,227 million for the same period in 2023[11] - Sales in mainland China accounted for RMB 1,629 million, up from RMB 197 million in the previous year, representing a growth of 726%[11] - Other countries/regions generated revenue of RMB 212 million, a decrease of 79% from RMB 1,030 million in the same period last year[11] - Revenue from mainland China and Hong Kong accounted for 88.5% and 11.5% of total revenue, respectively[35] Expenses and Costs - The company reported other income and gains of RMB 32,035, down from RMB 36,076 in the previous year[2] - The company’s total sales cost for the six months ended June 30, 2024, was RMB 1,771 million, compared to RMB 1,140 million in the same period of 2023[17] - Research and development expenses for the period were RMB 64,236 million, reflecting an increase from RMB 52,136 million in the previous year[17] - The total employee cost during the review period was approximately RMB 184 million, with a workforce of 2,322 employees[45] Assets and Liabilities - Non-current assets totaled RMB 1,033,385 as of June 30, 2024, an increase from RMB 812,500 at the end of 2023[5] - Current liabilities rose to RMB 1,219,933, up from RMB 1,049,888 at the end of 2023[6] - The company’s net assets stood at RMB 1,015,196, slightly up from RMB 1,009,448 at the end of 2023[6] - Trade receivables increased to RMB 660,465 from RMB 542,417 in the previous year[5] - The company reported trade payables of RMB 1,219,933,000 as of June 30, 2024, compared to RMB 1,049,888,000 as of December 31, 2023, indicating an increase of about 16.2%[26] - The company has bank financing facilities amounting to RMB 1,770,000,000 as of June 30, 2024, slightly up from RMB 1,760,000,000 as of December 31, 2023[28] - The company reported no interest-bearing bank borrowings as of June 30, 2024, compared to RMB 3,161,000 as of December 31, 2023[29] - The company had no interest-bearing bank loans or other borrowings as of June 30, 2024, maintaining a capital debt ratio of 0%[38] Market Performance - The domestic smartphone market saw shipments reach 139 million units in the first half of 2024, reflecting an 11.6% year-on-year increase, outperforming the global market[31] - Global smartphone shipments grew by 6.5% year-on-year in Q2 2024, reaching 285.4 million units, marking the fourth consecutive quarter of growth[31] Future Outlook and Strategy - The company plans to expand its product categories and leverage opportunities from 5G, IoT, and AI technologies[37] - The company aims to enhance its competitiveness through improved technology and economies of scale while continuing to deepen cooperation with TCL Huaxing[37] - The company has no specific plans for significant investments or capital assets for the second half of 2024[44] Dividends and Share Capital - The company did not recommend any dividend payment for the six months ending June 30, 2024, consistent with the previous period[8] - The company’s issued share capital remained unchanged at 2,114,307,929 shares as of June 30, 2024[30] - The company did not declare any interim dividends for the six months ended June 30, 2024[46] Compliance and Governance - The audit committee reviewed the unaudited interim condensed consolidated financial statements for the six months ended June 30, 2024, ensuring compliance with applicable accounting standards[50] - There were no significant contingent liabilities or major investments held by the company as of June 30, 2024[42][44] - No major acquisitions or disposals of subsidiaries, associates, or joint ventures occurred during the review period[43] - The company has not engaged in any high-risk derivative transactions during the review period to manage foreign exchange risks[41]

Investment Rating - The report does not provide a specific investment rating for the company [2][8]. Core Insights - The company, Huaxian Optoelectronics (00334.HK), experienced a rebound in sales driven by the recovery in demand for mobile TFT LCD modules, with both sales and processing businesses recording positive growth in Q3 and Q4 of 2023 [39]. - In 2023, the company achieved a total revenue of 2.58 billion RMB, with a year-on-year decrease of 8.4% in the second half and 55.1% in the first half, primarily due to a rebound in sales volume in the latter half [3][12]. - The average selling price of TFT LCD modules increased significantly, reaching 85.9 RMB per unit in Q1 2024, supported by contributions from the tablet and smart home product segments [42][44]. Summary by Sections Revenue Performance - In 2023, the company reported total revenue of 2.58 billion RMB, with a significant drop in the first half but a recovery in the second half, particularly in non-bonded and bonded TFT LCD module sales [3][12]. - The sales volume for non-bonded TFT LCD modules reached approximately 4.1 million units in 2023, while bonded modules sold around 38.7 million units, showing a notable increase in the second half [3][12]. Product Segments - The tablet display module and other display modules saw a substantial increase in shipment volumes, with Q1 2024 shipments reaching 735,000 and 1,065,000 units, respectively, compared to the same period in 2023 [6]. - The company’s main customer base consists of mobile manufacturers, whose orders remained relatively stable during the previous year's industry downturn, contributing over half of the total revenue [15]. Financial Metrics - The gross profit margin for the second half of 2023 was 6.5%, a decline of approximately 1.4 percentage points from the first half, primarily due to changes in product mix [44]. - The company reported a net profit of 13.1 million RMB for the fiscal year 2023, reversing losses from the first half, attributed to effective cost control measures [21][44]. Market Outlook - The company is expected to maintain a low gross margin due to the anticipated increase in revenue contribution from lower-margin segments such as tablet and smart home products [44][22]. - The market for TFT LCD modules is highly mature, and while horizontal expansion may enhance profitability, the focus should be on long-term value drivers for sustainable investment [22].

Investment Rating - The report assigns a stock rating of NR (Not Rated) for CDOT (00334.HK) [27]. Core Insights - The company experienced a significant year-on-year revenue increase of 57.3% to RMB 931.7 million in 2024 Q1, driven by strong sales of tablet display modules and other display modules, which offset a decline in smartphone module sales [2]. - The gross margin for CDOT in FY 2023 dropped to 6.5%, primarily due to a change in product mix, which may continue to affect profitability [41]. - The company has seen a recovery in sales volume, particularly in the second half of 2023, with non-laminated and laminated module sales volumes reaching 4.1 million and 38.7 million respectively [7]. Summary by Relevant Sections Revenue and Profitability - CDOT reported RMB 2.6 billion in revenue for FY 2023, reflecting a year-on-year decline of 8.4% and a significant drop of 55.1% in the first half of 2023 [7]. - The company achieved a net profit of RMB 13.1 million and an operating profit of RMB 19.0 million in FY 2023, reversing from a loss in the first half of 2023 [20]. Sales Performance - The sales volume of tablet display modules and other display modules in 2024 Q1 reached 0.7 million and 1.1 million, representing increases of 22.7 times and 87.8 times compared to 2023 Q1 [11]. - The ASP (Average Selling Price) of non-laminated and laminated modules increased to RMB 28.5 and RMB 70.4 in 2023 Q4, marking a rebound from previous lows [15]. Market Dynamics - The order book from a major smartphone manufacturer remained stable, contributing significantly to revenue stability in 2024 Q1 [36]. - The company’s strategy includes leveraging support from CSOT to customize panel sizes, enhancing its ability to meet customer demands and expand into the tablet market [40]. Future Outlook - The report indicates that while there has been operational improvement, low gross margins remain a concern, limiting the company's ability to withstand market fluctuations [42]. - The company is expected to see further contributions from the tablet and smart home device segments, potentially driving ASP increases in 2024 [17][19].

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 2,577 million, a decrease of 38.8% compared to RMB 4,208 million in 2022[11] - Gross profit for 2023 was RMB 174 million, with a gross margin of 6.8%, down from RMB 344 million and 8.2% in 2022[11] - Net profit attributable to owners of the parent for 2023 was RMB 13 million, a significant decline from RMB 169 million in 2022[11] - Total sales volume for the year ended December 31, 2023, reached 47.6 million units, a year-on-year decrease of 12.1%[25] - Overall average selling price (excluding processing modules) decreased by 26.1% to RMB 58.7, with total revenue of RMB 2,576.8 million, down 38.8% year-on-year[25] - Revenue from the mainland China market was RMB 759.9 million, a decline of 61.5% year-on-year, while revenue from Hong Kong was RMB 1,816.0 million, down 18.7%[31] Assets and Liabilities - The total assets as of December 31, 2023, were RMB 2,532 million, slightly down from RMB 2,580 million in 2022[12] - The company maintained a low debt ratio of 0.1% with total liabilities of RMB 1,522 million[17] - The total equity attributable to the parent company as of December 31, 2023, was RMB 1,009.4 million, with a capital debt ratio of 0.1%[42] - The group had no pledged assets as of December 31, 2023, maintaining a clean balance sheet[43] Market Trends - Global smartphone shipments in 2023 totaled 1,165 million units, a decline of 3.5% year-on-year, marking the lowest level in nearly a decade[24] - The global shipment of A-Si LCD panels reached approximately 1,120 million units in 2023, reflecting a year-on-year increase of about 35.2%[24] - The global economic growth forecast for 2024 is expected to slow down, with China's economic growth projected at 4.6%[37] - IDC forecasts that smartphone shipments in China will reach 287 million units in 2024, a year-on-year growth of 3.6%[37] Product Development and Strategy - The company is optimistic about the growth of the display module business, aiming to expand its market share in smart home and mid-size markets[21] - The new smart factory has significantly improved production efficiency and reduced costs, enhancing product quality and economies of scale[20] - The company plans to strengthen its foundational equipment and diversify its product range to support long-term growth[21] - The group plans to invest more in the mid-sized commercial display market, anticipating partnerships with several well-known brand customers in 2024 and adding two new mid-sized production lines within the year[38] - The company recorded a significant increase in sales of mid-size products, reaching 2.9 million units, a year-on-year increase of 43.9%[35] - The revenue from mid-size products amounted to RMB 185.9 million, reflecting a year-on-year increase of 61.5%[35] Corporate Governance - The company aims to become a leading LCD module enterprise while enhancing corporate governance and business ethics[81] - The independent non-executive director, Ms. Xu Huimin, has over 20 years of accounting experience and has served as the chairman of the audit committee since June 2015[68] - The company has a strong management team with significant experience in human resources and marketing, including Mr. Hu Yudong, who has over 16 years of experience in human resources management[73] - The company has been actively expanding its board with experienced professionals in various fields, including law and telecommunications[72][76] - The company has established effective mechanisms to ensure independent viewpoints and opinions are obtained for board decisions[101] - The board consists of 7 members, all possessing the necessary professional background and expertise to guide and supervise the group's strategic focus[93] Risk Management and Compliance - The audit committee is responsible for overseeing the company's financial reporting and the relationship with external auditors[127] - The company has implemented internal control policies to ensure the reliability of financial reporting and compliance with relevant laws and regulations[159] - The audit committee reviews the effectiveness of the internal control and risk management systems, covering financial, operational, and compliance monitoring[160] - The company has adopted a whistleblowing policy and anti-corruption policy to promote compliance with anti-corruption laws and provide channels for reporting misconduct[166] - Related party transactions are monitored to ensure compliance with listing rules and conducted on fair and reasonable terms[167] Employee Management and Development - The total employee cost for the review period was RMB 208 million, with a workforce of 3,219 employees[52] - The company maintains a proactive approach to human resources management, focusing on employee assessment, talent acquisition, training, and morale[183] - The company organized 28 sessions for ECP certification and skill level assessment, with 714 individuals meeting the required standards for promotion or certification[187] - The company achieved a 100% training participation rate among employees during the review period, with an average training duration of 88 hours per person for the "Eagle Training Camp" program[190] - The company has established a unified standard for talent assessment and promotion, providing clear career development paths for employees[186] Environmental Responsibility - In 2023, the company invested approximately RMB 5.58 million in new environmental protection facilities and RMB 1.08 million in environmental management, ensuring compliance with national standards for wastewater, waste gas, and waste emissions[196] - The company saved 6,938,000 kWh of electricity and 177,000 tons of water through energy efficiency projects and improved production processes in 2023[196] - The company launched various community service initiatives, focusing on environmental protection and youth care, to fulfill its corporate social responsibility[197] Customer Relations and Supply Chain - The group has established strong relationships with major clients, including a subsidiary of TCL, ensuring stable order volumes[57] - The group has implemented a multi-source procurement policy and strategic inventory management to ensure sufficient supply of production materials[58] - The group benefits from stable material supply since the launch of TCL Huaxing's display panel production line "t9" in September 2022[58] - The group is focused on horizontal business expansion and developing diversified product types to attract new customers[57]

Financial Performance - Revenue for the year ended December 31, 2023, was RMB 2,576,806 thousand, a decrease of 38.7% compared to RMB 4,208,350 thousand in 2022[50]. - Gross profit for 2023 was RMB 174,051 thousand, down 49.3% from RMB 343,744 thousand in the previous year[50]. - Profit before tax decreased significantly to RMB 18,347 thousand, a decline of 89.0% from RMB 167,706 thousand in 2022[50]. - Net profit for the year was RMB 13,086 thousand, representing a drop of 92.3% compared to RMB 169,025 thousand in the prior year[50]. - Basic and diluted earnings per share for 2023 were RMB 0.62, down from RMB 8.06 in 2022[50]. - The total comprehensive income reported was RMB 9,283 million for the year, compared to RMB 168,668 million in the previous year[46]. - The total revenue from sales to related parties was approximately RMB 992,260,000 for the year ending December 31, 2023, down from RMB 1,762,880,000 in 2022[94]. - The revenue from industrial product sales was RMB 4,172,765,000, while processing and manufacturing services contributed RMB 35,585,000, totaling RMB 4,208,350,000 in customer contract revenue[96]. - The net profit attributable to the owners of the parent company was RMB 13.1 million in 2023, representing a significant decrease of 92.3% year-on-year from RMB 169.0 million in 2022[128]. - The company reported a total tax expense of RMB 5,261,000 for the year, compared to a tax credit of RMB 1,319,000 in 2022[104]. Cash and Equity - As of December 31, 2023, the group's cash and cash equivalents and time deposits amounted to RMB 422 million, with 11.2% in USD, 83.5% in RMB, and 5.3% in HKD[5]. - The total equity attributable to the parent company as of December 31, 2023, was RMB 1,009.4 million, with a capital debt ratio of 0.1%[6]. - Total equity as of December 31, 2023, was RMB 1,009,448 thousand, slightly down from RMB 1,000,165 thousand in 2022[54]. - Non-current liabilities totaled RMB 12,632 thousand, a decrease from RMB 75,635 thousand in the previous year[53]. - The group’s interest-bearing bank loans amounted to RMB 3.2 million as of December 31, 2023[39]. Customer and Market Dynamics - The largest customer and the top five customers accounted for approximately 53% and 89% of the group's revenue, respectively[8]. - The group is committed to diversifying its product range to reduce reliance on single customers and attract new clients[10]. - Revenue from mainland China was RMB 759.9 million, a decline of 61.5% from RMB 1,973.9 million[172]. - Revenue from Hong Kong was RMB 1,816.0 million, down 18.7% from RMB 2,232.8 million[172]. Operational Developments - The group plans to increase investment in the smart home and mid-size commercial display markets, with two new mid-size production lines expected to be added within the year[2]. - The group maintains a cautious optimism regarding the development prospects of the display module business, aiming to enhance competitiveness through improved supply chain layout and cost control[3]. - The company has implemented multiple smart production lines in its new display module factory in Huizhou, enhancing production efficiency and product quality[172]. - The company aims to expand its product range and technology platforms, focusing on medium-sized display modules and smart home devices to enhance competitiveness[185]. Cost Management - The total employee cost for the review period was RMB 208.0 million, with a workforce of 3,219 employees[28]. - The company has implemented strict production cost controls to mitigate the impact of external factors on its operations[142]. - Selling and distribution expenses were RMB 19,807 thousand, an increase from RMB 39,824 thousand in the previous year[50]. - The company reported a research and development expense of RMB 118.2 million in 2023, a decrease of 10.5% from RMB 132.0 million in 2022[122]. Economic Outlook - Global economic growth is expected to slow significantly in Q1 2024, with China's growth forecast at 4.6%[36]. - The global consumer electronics industry revenue is projected to exceed USD 1 trillion in 2024, indicating a growth trend[36]. - Smartphone shipments in China are expected to reach 287 million units in 2024, a year-on-year increase of 3.6%[36]. - The global smartphone shipment volume in 2023 was 1,165 million units, a decline of 3.5% year-on-year, marking the lowest level in nearly a decade[140]. - The global smartphone panel shipment volume is expected to grow by approximately 18% in 2023, indicating a recovery in panel demand despite declining smartphone shipments[152]. Compliance and Governance - The group has not engaged in any major litigation as of December 31, 2023[22]. - The group has established stable relationships with suppliers, with the largest supplier accounting for approximately 13% of procurement[11]. - The audit committee has reviewed the group’s annual performance and accounting principles for the year ending December 31, 2023[32]. - The company has not identified any significant impact from the recent accounting standard revisions on its financial statements[90]. - The company is currently evaluating the impact of the recent revisions to liability classification and expects no significant effects on its financial statements[111].