Financial Performance - Total revenue for the six months ended June 30, 2024, was RMB 30,153 million, a decrease of 6.6% compared to RMB 32,300 million in the same period of 2023[2] - Gross profit increased by 2.2% to RMB 4,289 million from RMB 4,198 million year-on-year[2] - Net profit for the period rose by 15.9% to RMB 714 million, up from RMB 616 million in the previous year[2] - Profit attributable to equity holders increased by 27.2% to RMB 384 million compared to RMB 302 million in the same period last year[4] - The overall profit before tax for the group was RMB 969 million for the six months ended June 30, 2024, compared to RMB 821 million for the same period in 2023, indicating an increase of approximately 18%[20] - The income tax expense for the six months ended June 30, 2024, was RMB 255 million, up from RMB 205 million for the same period in 2023, representing an increase of approximately 24.4%[20] - The company’s profit for the six months ended June 30, 2024, was RMB 25,489 million, a decrease of 5.4% compared to RMB 27,982 million for the same period in 2023[22] Revenue Breakdown - The smart home appliance segment generated RMB 15,575 million in revenue, compared to RMB 14,145 million in the previous year, indicating a growth of about 10.1%[11][12] - The smart system technology business generated RMB 4,327 million, down from RMB 5,108 million, reflecting a decrease of about 15.3%[11][12] - The renewable energy business reported revenue of RMB 8,984 million, a decrease from RMB 12,122 million, indicating a decline of approximately 26.5%[11][12] - For the six months ended June 30, 2024, the total revenue from the smart home appliance business was RMB 15,728 million, representing an increase from RMB 14,599 million for the same period in 2023[18] - The smart system technology business generated revenue of RMB 4,395 million for the six months ended June 30, 2024, compared to RMB 5,210 million in the previous year, indicating a decline[18] - The renewable energy business reported revenue of RMB 8,984 million for the six months ended June 30, 2024, consistent with RMB 12,133 million for the same period in 2023, showing a decrease[18] Dividends and Shareholder Returns - The company did not declare an interim dividend for the period, compared to 3 HK cents per share in the previous year[2] - The company declared a final dividend of RMB 111 million for the year ending December 31, 2023, with no dividend declared for the previous year[23] - The company decided not to declare an interim dividend for the period, which previously was HKD 0.03 per share for the six months ended June 30, 2023[72] Assets and Liabilities - Total assets as of June 30, 2024, amounted to RMB 48,631 million, an increase from RMB 46,677 million as of December 31, 2023[5] - Cash and cash equivalents decreased to RMB 8,678 million from RMB 9,114 million at the end of 2023[5] - The company reported a net asset value of RMB 22,516 million as of June 30, 2024, down from RMB 22,757 million at the end of 2023, reflecting a decrease of approximately 1.1%[6] - Non-current liabilities totaled RMB 9,945 million, an increase from RMB 8,976 million in December 2023, marking a rise of about 10.8%[6] - Bank borrowings increased to RMB 11,170 million from RMB 8,218 million, representing a significant rise of approximately 36.5%[6] - Deferred income rose to RMB 528 million from RMB 395 million, indicating an increase of about 33.7%[6] - The company’s equity attributable to shareholders decreased to RMB 17,867 million from RMB 18,139 million, a decline of approximately 1.5%[6] - Trade payables as of June 30, 2024, totaled RMB 11,789 million, an increase from RMB 11,531 million as of December 31, 2023[33] - The total liabilities decreased to RMB 26,361 million as of June 30, 2024, from RMB 27,585 million as of December 31, 2023[33] Market Performance and Strategy - The company anticipates that the peak sales season for consumer electronics in mainland China will occur from September to January, which may impact future performance[7] - The company remains cautiously optimistic about the market outlook despite global economic and geopolitical challenges affecting trade supply chains[66] - The company plans to establish a group supply chain coordination team and a technology development leadership team in the first half of 2024 to enhance product development with a focus on "5G + AI + terminals"[66] - The company is actively embracing AI applications and increasing R&D in AI and AIGC-related functionalities to enhance product competitiveness[66] - The company aims to integrate power generation, grid, load, and energy storage technologies under its "source-network-load-storage integration" strategy to promote green low-carbon ecological parks[66] - The company has expanded from the television sector into smart home appliances and new energy, aligning with carbon neutrality goals[66] Research and Development - Research and development expenses decreased slightly to RMB 981 million from RMB 1,010 million in the previous year[3] - The company continues to invest in R&D for smart products, with strong sales performance in core products like washing machines and air conditioners driving growth[46] - The company aims to enhance its competitive edge and product advantages through continuous investment in research and development of high-quality intelligent products[55] Employee and Operational Metrics - The total number of employees decreased to approximately 28,200 as of June 30, 2024, from 31,200 on December 31, 2023[64] - The company’s total employee costs for the six months ended June 30, 2024, were RMB 2,503 million, slightly down from RMB 2,523 million in the same period of 2023[22] Investments and Capital Expenditure - The company invested a total of RMB 359 million in expanding factories and major construction projects in Ningbo, Wuhan, Shenzhen, Guangzhou, and Huizhou during the reporting period[63] - An additional RMB 342 million was invested in acquiring other properties, factories, and equipment to enhance production capacity and operational efficiency[63] - The company holds investments in 67 unlisted companies valued at RMB 3,157 million as of June 30, 2024, including a 10% stake in a company involved in manufacturing and selling flat panel displays[59]

Financial Performance - The annual operating income reached a record high of RMB 69.031 billion, representing a year-on-year growth of 29.1%[8]. - The net profit for the year was RMB 1.766 billion, with a year-on-year growth of 25.5%[8]. - Profit attributable to the owners of the Company increased by 29.3% year-on-year[8]. - The overall revenue for the year ended December 31, 2023, was RMB 69,031 million, representing a 29.1% increase from RMB 53,491 million in the previous year[34][36]. - The overall gross profit margin for the reporting year was 14.0%, a decrease of 1.3 percentage points compared to the previous year[36][38]. - The company aims to achieve "rapid growth with higher quality" and has set new challenging annual goals for 2024[30][31]. - The modern services business recorded a revenue of RMB 4,734 million for the year ended December 31, 2023, representing an increase of RMB 2,635 million or 125.5% compared to RMB 2,099 million in the previous year[80]. - The Group's financial performance for the Reporting Year is detailed in the consolidated statement of profit or loss and other comprehensive income[185]. Business Segments Performance - The smart household appliances segment maintained stable growth despite market challenges, with significant performance across various business lines[11]. - The TV business achieved sales of over 150,000 units for the new generation Wallpaper TV[12]. - The refrigerator and washing machine business surpassed sales of 4.5 million units, generating revenue exceeding RMB 4.5 billion[12]. - The air conditioner business achieved breakeven for the first time[12]. - The personal care household appliances business sold nearly 5.5 million units of Yuan Shi Shaver, demonstrating strong online sales performance[12]. - The Group's smart household appliances business recorded revenue of RMB30,637 million, representing an increase of RMB3,045 million or 11.0% compared to RMB27,592 million recorded in the Previous Year[45]. - Revenue from the smart appliances business reached RMB 7,088 million, representing an increase of RMB 2,687 million or 61.1% compared to RMB 4,401 million in the previous year[57]. - The new energy segment nearly doubled its residential photovoltaic business growth, ranking among the top three in the industry[17][19]. Market and Strategic Focus - The company aims to navigate the complex market environment in 2024, addressing pressures in demand growth within the household appliances industry and intensified competition in the photovoltaic sector[23][24]. - The Group is committed to promoting digital innovation in smart home appliances and leveraging the new energy industry to achieve carbon peak and carbon neutrality goals[35][36]. - The company plans to focus on partnership mechanisms, mutual empowerment among operations, and improving human efficiency to strengthen its market position[26][27]. - The Group aims to explore new scenarios and applications for smart homes and smart offices, leveraging advancements in AI and digital technology[70]. - The Group's strategy includes industry chain integration and enhancing intelligent manufacturing capabilities to respond to market changes[67]. Revenue Distribution - For the year ended 31 December 2023, revenue from the mainland China market amounted to RMB53,826 million, representing an increase of RMB17,163 million or 46.8% compared to RMB36,663 million for the Previous Year[40]. - Revenue from overseas markets amounted to RMB15,354 million, equivalent to 22.2% of the Group's overall revenue, representing a decrease of RMB1,573 million or 9.3% compared to RMB16,927 million recorded in the Previous Year[40]. - The geographical distribution of revenue in overseas markets for 2023 shows Asia at 57%, Europe at 17%, Americas at 14%, Africa at 11%, and Oceania at 1%[41]. Cost Management and Efficiency - The company emphasizes the importance of enhancing production efficiency and reducing corporate costs to navigate market uncertainties[35]. - Selling and distribution expenses amounted to RMB3,695 million, an increase of RMB256 million or 7.4% compared to RMB3,439 million in the previous year, with a selling and distribution expenses to revenue ratio of 5.4%, down 1.0 percentage point from 6.4%[93][96]. - General and administrative expenses were RMB1,921 million, an increase of RMB267 million or 16.1% from RMB1,654 million in the previous year, with a ratio of 2.8%, down 0.3 percentage points from 3.1%[93][96]. - Research and development expenses totaled RMB2,127 million, a slight increase of RMB11 million or 0.5% from RMB2,116 million in the previous year, with a ratio of 3.1%, down 0.9 percentage points from 4.0%[94][96]. Innovation and Product Development - The AI intelligent somatosensory game console was recognized as the "Best Invention of 2023" by TIME Magazine, showcasing the company's innovation in technology[18]. - The Group launched several new products in 2023, including the all-in-one Mini LED TV Series G7D/A5D and the OLED gaming monitor G80Q, focusing on enhancing product value and user experience[50]. - The Group launched the 100-inch Giant Screen TV Series in 2023, establishing leadership in the ultra-large screen market[52]. - The Group has developed a high-quality residential building integrated photovoltaic (BIPV) power station product, launching the flagship product "Xiao Yang Lou"[74]. Corporate Governance and Management - The Group held investments in 64 unlisted companies, with a total fair value of RMB3,299 million as of December 31, 2023[101]. - The Group's principal activities include the manufacture and sales of smart TV systems, home access systems, photovoltaic products, and intelligent manufacturing[184]. - The Board has proposed a final dividend of 5 HK cents per share for the Reporting Year, totaling approximately RMB 108 million[185]. - The Group has established a Corporate Social Responsibility Policy focusing on four key aspects: Workplace, Environment, Operating Practices, and Community[188]. Employee and Community Engagement - The Group promotes team spirit and offers various training programs to enhance employee skills and awareness of environmental issues[195]. - As of December 31, 2023, the Group had approximately 31,200 employees, a slight decrease from 31,400 employees in 2022, with over 90% located in various provinces and cities in China[112][114].

Financial Performance - Total revenue for the year ended December 31, 2023, was RMB 69,031 million, representing a 29.1% increase from RMB 53,491 million in 2022[2] - Gross profit for the same period was RMB 9,645 million, up 17.5% from RMB 8,207 million in the previous year[2] - Net profit attributable to equity holders for the year was RMB 1,766 million, a 25.5% increase compared to RMB 1,407 million in 2022[2] - The company's operating profit before tax for 2023 was RMB 2,323 million, an increase of 28% compared to RMB 1,819 million in 2022[7] - The total operating profit for the group was RMB 3,043 million, up from RMB 2,243 million, marking an increase of approximately 35.7%[25] - The company reported a basic earnings per share of RMB 43.15, compared to RMB 31.97 in the previous year[4] - The group reported a tax expense of RMB 557 million for 2023, compared to RMB 412 million in 2022, marking a 35.2% increase[29] Dividends and Shareholder Returns - The company proposed a final dividend of HKD 0.05 per share, compared to no final dividend in 2022[2] - The board proposed a final cash dividend of HKD 0.05 per share for the year ending December 31, 2023, totaling approximately RMB 108 million, subject to shareholder approval at the upcoming annual general meeting[35] - The company repurchased a total of 182,398,000 shares at a total cost of approximately HKD 752.42 million, enhancing earnings per share and overall shareholder returns[87] - A conditional cash offer was made to repurchase up to 100,000,000 shares at HKD 5.00 per share, with a total consideration of HKD 500 million, funded from internal resources[88] Revenue Breakdown - The total revenue from customer contracts for the year ended December 31, 2023, was RMB 68,525 million, with significant contributions from smart home appliances (RMB 30,637 million) and new energy business (RMB 23,396 million) [18] - Revenue from smart home appliances increased by 45% compared to the previous year, while the new energy business saw a 56% increase [18] - Revenue from mainland China was RMB 53,677 million, up 46.9% from RMB 36,564 million in 2022[28] - The smart home appliance segment generated revenue of RMB 31,382 million, up from RMB 28,046 million, indicating a year-over-year increase of about 8.0%[24] - The new energy business reported revenue of RMB 23,340 million, a significant rise from RMB 11,934 million, reflecting an increase of approximately 95.5%[24] - The modern services and other segments generated revenue of RMB 5,480 million, up from RMB 3,165 million, reflecting an increase of approximately 73.1%[24] Expenses and Costs - Research and development expenses for the year were RMB 2,127 million, slightly up from RMB 2,116 million in 2022[3] - Employee costs rose to RMB 5,296 million in 2023 from RMB 4,869 million in 2022, an increase of 8.8%[34] - General and administrative expenses for the same period were RMB 1,921 million, up RMB 267 million or 16.1% year-on-year, with a ratio of 2.8%, down from 3.1%[71] - The company's financing costs increased to RMB 522 million in 2023 from RMB 432 million in 2022, an increase of 21%[7] Assets and Liabilities - Total assets as of December 31, 2023, were RMB 46,677 million, compared to RMB 46,426 million in 2022[5] - Current liabilities amounted to RMB 35,428 million, a slight decrease from RMB 35,527 million in the previous year[6] - The equity attributable to equity holders of the company was RMB 18,139 million, up from RMB 17,867 million in 2022[6] - The total bank loans and overall interest-bearing liabilities amounted to RMB 15,315 million, slightly up from RMB 15,257 million in the previous year, with a debt-to-equity ratio of 67.3%, down from 69.7%[72] Cash Flow and Investments - The net cash generated from operating activities decreased to RMB 2,476 million in 2023 from RMB 5,148 million in 2022, representing a decline of 52%[7] - The company’s cash flow from investing activities showed a net outflow of RMB 352 million in 2023, a significant improvement from a net outflow of RMB 5,051 million in 2022[8] - The net cash and cash equivalents as of December 31, 2023, were RMB 9,114 million, an increase of RMB 60 million or 0.7% from the previous year[72] - The group held investments in 64 unlisted companies valued at RMB 3,299 million as of December 31, 2023, including a 10% stake in a company involved in manufacturing and selling electronic components[74] Market and Strategic Initiatives - The company plans to continue expanding its market presence and investing in new product development to drive future growth[39] - The company aims to leverage its strengths in manufacturing and technology to become a key player in China's economic development, particularly in smart manufacturing and digital economy sectors[79] - The company is actively expanding its renewable energy business, particularly in the photovoltaic sector, and aims to maximize the efficiency of solar power stations[81] - The company is pursuing a diversified green low-carbon development strategy while enhancing its brand value and competitiveness[81] Compliance and Governance - The company has maintained compliance with corporate governance codes, although there was an exception regarding the attendance of independent non-executive directors at shareholder meetings[83] - The company confirmed compliance with the code of conduct for securities trading by all directors during the reporting year[86] - The audited full-year results announcement will be published on the company's and the Hong Kong Stock Exchange's websites[92]

Revenue and Profitability - Revenue for the six months ended June 30, 2023, was RMB 32,300 million, an increase from RMB 24,284 million in the same period of 2022, representing a growth of 33.1%[5]. - Profit for the period attributable to owners of the Company was RMB 616 million, compared to RMB 631 million in the same period of 2022, reflecting a decrease of 2.4%[5]. - Total comprehensive income for the period reached RMB 771 million, a significant increase from RMB 270 million in the same period last year, representing a growth of 186.67%[66]. - Profit for the period attributable to owners of the company was RMB 302 million, compared to RMB 339 million in the previous year, indicating a decrease of 10.91%[66]. - Basic and diluted earnings per share were both RMB 11.95, down from RMB 12.98 in the same period last year, reflecting a decline of 7.94%[66]. Gross Profit and Margins - Gross profit margin decreased to 13.0% from 16.0% year-on-year[5]. - The overall gross profit margin for the Group was 13.0%, a decrease of 3.0 percentage points from 16.0% in the same period last year[39]. - EBIT margin decreased to 3.4% from 4.4% year-on-year[5]. Cash Flow and Financial Position - Net cash from operating activities was RMB 656 million, down from RMB 2,049 million in the same period of 2022[5]. - Bank balances and cash increased to RMB 10,412 million, representing a rise of RMB 1,358 million or 15.0% from RMB 9,054 million as of December 31, 2022[43]. - Total current liabilities as of June 30, 2023, are RMB 28,485 million, compared to RMB 25,637 million as of December 31, 2022[140]. - The debt to owners' equity ratio was 78.5% as of June 30, 2023, up from 69.7% as of December 31, 2022[43]. Market Performance and Segmentation - Revenue from the mainland China market for the six months ended June 30, 2023, was approximately RMB 25,143 million, an increase of RMB 8,986 million or 55.6% compared to RMB 16,157 million for the same period last year[15]. - Revenue from overseas markets amounted to RMB 7,208 million, accounting for 22.3% of the Group's overall revenue, representing a decrease of RMB 966 million or 11.8% from RMB 8,174 million for the same period last year[15]. - The smart household appliances business accounted for 36.5% of revenue from the mainland China market, while the new energy business contributed 48.2%[15]. New Energy Business - For the six months ended June 30, 2023, the new energy business recorded revenue of RMB 12,134 million, representing a significant increase of RMB 7,924 million or 188.2% compared to RMB 4,210 million in the same period of the previous year[31]. - More than 130,000 new residential photovoltaic power stations were put into operation and connected to the power grid during the current period, with a total of over 339,000 residential photovoltaic power stations built and operational[31]. - The newly installed photovoltaic capacity in China for the first half of 2023 was approximately 78.42 GW, a year-on-year increase of approximately 154%[34]. Research and Development - Research and development expenses for the six months ended June 30, 2023, were RMB 1,010 million, an increase of RMB 9 million or 0.9% compared to RMB 1,001 million for the same period last year[41]. - The research and development expenses to revenue ratio was 3.1%, down by 1.0 percentage points from 4.1% in the same period last year[41]. - The Group aims to enhance product competitiveness and drive sales growth through increased research and development efforts in smart products[27]. Strategic Focus and Future Outlook - The Group is focusing on industrial transformation and innovative development, particularly in smart home appliances and achieving carbon neutrality goals[13]. - The Group's strategic plan aims to maintain positive growth despite uncertainties in the global economy[13]. - The Group plans to continue expanding its channels and markets, including opening new stores and revitalizing old ones[25]. Expenses and Cost Management - Selling and distribution expenses for the six months ended June 30, 2023, were RMB 1,816 million, an increase of RMB 212 million or 13.2% compared to RMB 1,604 million for the same period last year[41]. - General and administrative expenses amounted to RMB 857 million, representing an increase of RMB 161 million or 23.1% compared to RMB 696 million for the same period last year[41]. - The Group's operational focus includes enhancing product gross margins and reducing operational costs amid rising raw material costs[42]. Employee and Organizational Changes - The Group's employee count decreased to approximately 29,700 as of June 30, 2023, down from 31,400 at the end of 2022[53]. - The Group is dedicated to enhancing employee training and establishing a long-term mechanism for cultivating industry leaders to improve professional standards[55]. Investments and Financial Instruments - The Group held investments in 62 unlisted companies with a total fair value of RMB 3,425 million as of June 30, 2023[45]. - The Group's portfolio of listed equity investments is primarily for medium to long-term investment, with a focus on industries supported by the Chinese government[51]. - The Group's financial assets and liabilities are measured at fair value on a recurring basis, categorized into three levels based on the observability of inputs[166].

Financial Performance - Total revenue for the six months ended June 30, 2023, was RMB 32,300 million, representing a 33.0% increase compared to RMB 24,284 million for the same period in 2022[3] - Gross profit for the same period was RMB 4,198 million, an increase of 8.2% from RMB 3,879 million in the previous year[3] - Profit attributable to equity holders for the period was RMB 302 million, down 10.9% from RMB 339 million in the prior year[3] - The total comprehensive income for the period was RMB 771 million, compared to RMB 270 million for the same period last year[6] - The group's profit before tax for the six months ended June 30, 2023, was RMB 821 million, compared to RMB 829 million for the same period in 2022, showing a slight decrease of about 1.0%[21] - The income tax expense for the six months ended June 30, 2023, was RMB 205 million, compared to RMB 198 million in the same period of 2022, representing an increase of approximately 3.5%[21] - The group reported a total segment profit of RMB 1,042 million for the six months ended June 30, 2023, compared to RMB 1,191 million in the same period of 2022, indicating a decrease of about 12.5%[19] Revenue Breakdown - The smart home appliance business generated revenue of RMB 14,145 million, while the smart system technology business contributed RMB 5,108 million, and the new energy business accounted for RMB 12,122 million[13] - For the six months ended June 30, 2023, the total revenue from the smart home appliance business was RMB 14,599 million, an increase from RMB 13,052 million in the same period of 2022, representing a growth of approximately 11.9%[19] - The smart system technology business generated revenue of RMB 5,210 million, up from RMB 6,239 million in the previous year, indicating a decline of about 16.4%[19] - The new energy business reported revenue of RMB 12,133 million, compared to RMB 4,206 million in the same period last year, reflecting a significant increase of approximately 187.5%[19] - Revenue from customer contracts was RMB 32,057 million, which includes sales of goods and services[13] - Revenue from the mainland China market reached approximately RMB 25,143 million, an increase of RMB 8,986 million or 55.6% from RMB 16,157 million year-on-year, primarily driven by the strong performance of the new energy business[40] - The overseas market revenue was RMB 7,208 million, accounting for 22.3% of total revenue, a decrease of RMB 966 million or 11.8% from RMB 8,174 million year-on-year[41] Assets and Liabilities - Non-current assets as of June 30, 2023, amounted to RMB 19,262 million, an increase from RMB 17,984 million as of December 31, 2022[7] - Current assets totaled RMB 50,939 million, up from RMB 46,426 million at the end of 2022[7] - Cash and cash equivalents were RMB 10,412 million, compared to RMB 9,054 million at the end of the previous year[7] - The company's net assets as of June 30, 2023, were RMB 22,057 million, an increase from RMB 21,894 million as of December 31, 2022[8] - Bank borrowings increased to RMB 10,526 million as of June 30, 2023, up from RMB 9,404 million at the end of 2022, indicating a rise of approximately 11.9%[8] - The company reported a total current liability of RMB 39,620 million, compared to RMB 35,527 million at the end of 2022, reflecting an increase of about 11.8%[8] - The company’s total assets minus current liabilities stood at RMB 30,581 million, up from RMB 28,883 million, marking an increase of about 5.9%[8] Dividends and Share Buybacks - The company declared an interim dividend of HKD 0.03 per share, consistent with the previous year[3] - The board's decision on dividend payments will consider factors such as distributable profits, cash flow, and financial condition[3] - The company has proposed an interim dividend of HKD 0.03 per share, totaling approximately RMB 68 million, to be paid on September 22, 2023[71] - The company completed a share buyback of 100 million shares, representing about 3.87% of the issued shares, at a price of HKD 5.0 per share, totaling HKD 500 million[70] Market Strategy and Future Outlook - The company plans to continue expanding its market presence and investing in new technologies to drive future growth[9] - The group continues to focus on expanding its smart home appliance and new energy businesses, leveraging growth opportunities in both domestic and international markets[17] - The company is actively adjusting marketing strategies to mitigate the negative impacts of economic downturns on its overseas business[41] - The group aims to expand its market presence by enhancing online sales channels and optimizing traditional offline distribution, despite challenges in the home appliance market[48] - The group is actively pursuing new markets and customers in Europe, Australia, and Latin America to counteract economic challenges and improve product structure[51] - The company aims to maintain market leadership by developing new high-margin and high-value products, while seizing opportunities in the global digitalization, intelligence, and low-carbon trends[64] Research and Development - Research and development expenses for the six months ended June 30, 2023, were RMB 1,010 million, an increase of RMB 9 million or 0.9% from RMB 1,001 million in the same period last year[57] - The company will continue to develop products based on the "5G + AI + terminal" technology development strategy, focusing on new technologies, materials, and processes to enhance product competitiveness and innovation capabilities[64] - The group continues to invest in technological innovation and research and development to maintain high product quality standards in the photovoltaic sector[52] Corporate Governance and Management - The company has maintained high standards of corporate governance and transparency, complying with the corporate governance code[67] - The board consists of five executive directors and three independent non-executive directors[74] - The chairman of the board is Lin Jin, with Liu Tangzhi as vice chairman and Shi Zhi as CEO[74] - The management team is dedicated to achieving the group's objectives and long-term growth[74] - The board's leadership structure is designed to ensure effective governance and oversight[74] Employee and Operational Insights - The group employed approximately 29,700 staff as of June 30, 2023, a decrease from 31,400 employees at the end of 2022, with over 90% based in mainland China[63] - The group emphasizes employee training and welfare, implementing performance-based compensation policies and long-term incentive plans[63] Miscellaneous - The group reported a net foreign exchange gain of RMB 147 million for the six months ended June 30, 2023, compared to a loss of RMB 34 million for the same period in 2022[59] - The announcement date is August 25, 2023, indicating the company's recent financial performance[74] - The board expresses gratitude to shareholders and business partners for their ongoing support and acknowledges the contributions of management and staff during the period[74]

Financial Performance - Operating revenue for the year ended 2022 was RMB 53,491 million, an increase from RMB 50,928 million in 2021, representing a growth of 4.1%[5] - The net profit attributable to equity holders of the company decreased to RMB 827 million from RMB 1,634 million in 2021, a decline of 49.3%[5] - Cash generated from operating activities increased significantly to RMB 5,148 million, up 313.8% from RMB 1,244 million in the previous year[5] - The gross profit margin decreased to 15.3%, down 1.5 percentage points from 16.8% in 2021[5] - The overall revenue for the fiscal year ending December 31, 2022, was RMB 53,491 million, representing a 5.0% increase from RMB 50,928 million in the previous year[15] - Revenue from the mainland China market reached RMB 36,564 million, an increase of RMB 3,344 million or 10.1% compared to RMB 33,220 million in the previous year[18] - Revenue from overseas markets was RMB 16,927 million, accounting for 31.6% of total revenue, which is a decrease of RMB 781 million or 4.4% from RMB 17,708 million in the previous year[19] - The multimedia business recorded revenue of RMB 23,080 million for the year ended December 31, 2022, a decrease of RMB 4,290 million or 15.7% compared to the previous year[23] - Revenue from smart TV system products in the Chinese market was RMB 9,891 million, down RMB 3,058 million or 23.6% year-on-year[23] - The smart appliance business recorded revenue of RMB 4,393 million, a slight increase of RMB 18 million or 0.4% from the previous year[35] Business Development and Strategy - The company launched the new Q53 PRO series wallpaper TV, enhancing product competitiveness in the television segment[7] - The company aims to enhance its competitive edge by reforming its domestic offline marketing network and strengthening online sales capabilities[15] - The company plans to optimize its organizational structure and improve per capita efficiency by simplifying processes and reducing unnecessary management[15] - The company is committed to advancing its smart systems technology and new energy business in response to the global clean energy development trend and China's dual carbon strategy[15] - The company is focusing on high-end TV products and expanding its sales strategies to increase market share amid competitive pressures[24] - The company is actively exploring new retail channels and live streaming platforms to boost brand exposure and sales in overseas markets[26] - The company aims to strengthen its brand influence through product launches and promotional events in international markets[26] - The group aims to expand its photovoltaic business and explore strategic partnerships with upstream suppliers to enhance market competitiveness[34] - The group is focusing on technological innovation and product development in smart appliances, emphasizing health, energy efficiency, and intelligence[36] - The group is committed to optimizing its organizational structure and integrating new business expansions to create favorable conditions for future development[41] New Energy Business - The new energy business saw the installation of over 140,000 household photovoltaic power stations, with a cumulative total exceeding 200,000, positioning the company among the industry leaders[8] - The group's revenue from the new energy business reached RMB 11,934 million, an increase of RMB 7,833 million or 191.0% compared to the previous year[31] - The total installed capacity of distributed photovoltaic power stations exceeded 200,000 households, with over 140,000 new households connected to the grid during the year[31] - The group launched upgraded products that are more aesthetically pleasing and functional to meet diverse user needs in the distributed photovoltaic market[31] - The group is actively responding to the "dual carbon" goals through its photovoltaic business, focusing on technological innovation and sustainable practices[57] Financial Position and Investments - The debt-to-equity ratio improved to 69.7%, down 6.9 percentage points from 76.6% in the previous year[5] - The company’s market capitalization was HKD 8,660 million, down from HKD 14,562 million[5] - The company’s stockholders' equity attributable to the company was RMB 17,867 million, slightly down from RMB 18,045 million in 2021[5] - The group's total current assets as of December 31, 2022, were RMB 10,899 million, a decrease of RMB 2,826 million or 20.68% from December 31, 2021[45] - The group's total bank loans as of December 31, 2022, amounted to RMB 15,257 million, an increase from RMB 14,262 million as of December 31, 2021[46] - The group has invested in 52 unlisted companies with a total investment value of RMB 2,322 million as of December 31, 2022[48] - The group invested a total of RMB 1,402 million in expanding factories in Ningbo, Wuhan, Shenzhen, Guangzhou, and Qianhai, along with an additional RMB 836 million for acquiring properties, factories, and equipment[54] Corporate Governance and Management - The company emphasizes its commitment to corporate governance and investor relations, with Lin Chengcai overseeing these functions[68] - The company has been involved in various national and provincial research projects, enhancing its technological capabilities[65] - The executive team collectively brings extensive experience and educational backgrounds, contributing to the company's strategic direction and operational management[62][63][65][68] - The company has a strong focus on innovation, with Wu holding 13 authorized invention patents and participating in significant national projects[78] - The company is committed to maintaining high standards in corporate governance through its independent non-executive directors[71][75] - The board of directors includes members with diverse expertise, enhancing the company's strategic decision-making capabilities[78] - The company has established a shareholder communication policy to maintain effective dialogue with shareholders, which is regularly reviewed by the board[166] - The board consists of 8 members, including 5 executive directors and 3 independent non-executive directors, ensuring balanced and independent oversight of management practices[174] - The company has established a diversity policy, which is reviewed annually by the nomination committee to ensure independent perspectives are obtained[168] Shareholder and Stock Information - The company’s share option plan is valid for 10 years from the date of adoption, expiring on August 19, 2024[122] - The total number of stock options granted under the 2014 stock option plan was 283,100,239 shares at the beginning and end of the fiscal year[126] - The total number of stock options available for employees was 61,342,000, with 24,328,000 remaining unexercised as of December 31, 2022[125] - The total number of stock options available for directors was 32,000,000, with 10,000,000 remaining unexercised as of December 31, 2022[124] - The company did not cancel any stock options during the fiscal year[126] - The company repurchased a total of 107,232,000 shares at a total cost of approximately HKD 444.49 million during the reporting year[99] - The company has no existing management or administrative contracts related to its overall or any significant part of its business during the reporting year[109] - The company has purchased suitable liability insurance for its directors to provide protection against legal claims arising from the group's business[109] Compliance and Risk Management - The company adopted anti-fraud and anti-corruption policies in March 2022, which include guidelines on business ethics and mechanisms for reporting corruption[166] - The company has maintained compliance with the corporate governance code throughout the reporting year, ensuring transparency and accountability to shareholders[165] - The audit committee reviewed the accounting principles and practices adopted by the group and discussed audit and financial reporting matters, including the financial statements for the year ended December 31, 2022[159] - The committee monitored the financial reporting system, risk management, and internal control systems of the group[198] - The financial risk management details are disclosed in the consolidated financial statements, highlighting the group's approach to managing financial risks[84]

Financial Performance - Total revenue for the year ended December 31, 2022, was RMB 53,491 million, representing a 5.0% increase from RMB 50,928 million in 2021[2] - Gross profit decreased by 4.0% to RMB 8,207 million compared to RMB 8,548 million in the previous year[2] - Net profit for the year was RMB 1,407 million, down 28.4% from RMB 1,965 million in 2021[2] - Profit attributable to equity holders of the company was RMB 827 million, a decline of 49.4% from RMB 1,634 million in the prior year[4] - Basic earnings per share decreased to 31.97 cents from 62.11 cents in 2021[4] - The company's operating profit before tax for 2022 was RMB 1,819 million, a decrease of 29% from RMB 2,552 million in 2021[7] - The group reported a pre-tax consolidated profit of RMB 1,819 million for the year ended December 31, 2022[27] - The overall gross margin for the group was 15.3%, down 1.5 percentage points from 16.8% in the previous year[68] Revenue Breakdown - The multimedia business generated RMB 23,080 million in revenue, while the smart systems technology business contributed RMB 11,933 million, and the new energy business accounted for RMB 11,934 million[21] - Revenue from customer contracts recognized at a point in time was RMB 51,538 million, while revenue recognized over time was RMB 1,351 million, indicating a strong reliance on point-in-time revenue recognition[21] - The smart home appliance segment generated RMB 4,569 million in revenue, with significant contributions from smart white goods and other smart appliances[21] - The multimedia business saw a decline in revenue from RMB 27,370 million in 2021 to RMB 23,080 million in 2022, a decrease of approximately 15.5%[22] - The smart systems technology business experienced a slight increase in revenue from RMB 10,911 million in 2021 to RMB 11,933 million in 2022, representing an increase of about 9.4%[22] - The new energy business reported a significant increase in revenue from RMB 4,101 million in 2021 to RMB 11,934 million in 2022, marking a growth of approximately 190%[22] - The group reported a total of RMB 52,889 million in revenue from customer contracts, highlighting the importance of these contracts to overall performance[21] Assets and Liabilities - Total assets increased to RMB 46,426 million in 2022 from RMB 45,050 million in 2021[5] - Total liabilities increased to RMB 35,527 million in 2022, up from RMB 31,325 million in 2021, reflecting a growth of approximately 13.9%[6] - The company's total assets minus current liabilities decreased to RMB 28,883 million in 2022 from RMB 29,556 million in 2021, a decline of about 2.3%[6] - The company's cash and cash equivalents at the end of 2022 were RMB 9,054 million, down from RMB 10,611 million at the end of 2021, a decrease of about 14.6%[9] - The company's trade payables amounted to RMB 8,650 million, a slight decrease from RMB 8,736 million in 2021[48] Investments and Expenditures - The net cash used in investing activities was RMB (5,051) million in 2022, compared to RMB (1,220) million in 2021, indicating a significant increase in investment outflows[8] - The company invested a total of RMB 1,402 million in expanding factories in Ningbo, Wuhan, Shenzhen, Guangzhou, and Qianhai during the reporting year[76] - An additional RMB 836 million was invested in acquiring other properties, plants, and equipment to enhance production capacity and efficiency[76] Research and Development - Research and development expenses were RMB 2,116 million, slightly up from RMB 2,097 million in 2021[3] - The company plans to enhance its research and development efforts in smart home appliances and internet value-added services to capture emerging market opportunities[10] - Research and development expenses increased to RMB 2,116 million, up RMB 19 million or 0.9% year-on-year, with an R&D expense ratio of 4.0%[69] Market and Strategic Focus - The company is focusing on digital technology and accelerating the development of smart system technology business[51] - The group aims to enhance product competitiveness and innovation through the development of new technologies, including 5G and AI applications[78] - The group is committed to achieving high-margin and high-value products to maintain market leadership in the smart home appliance sector[78] - The group plans to leverage its strengths in multimedia and digital technology to capitalize on opportunities in global economic digitalization and low-carbon initiatives[78] Corporate Governance and Compliance - The company has adhered to corporate governance codes to enhance transparency and accountability to shareholders[81] - The company adopted the revised Hong Kong Financial Reporting Standards (HKFRS) 16, which specifies that costs incurred to make property, plant, and equipment operational should be recognized in profit or loss[12] - The application of the revised standards did not have a significant impact on the company's financial performance or position for the current and prior years[12] Employee and Operational Metrics - As of December 31, 2022, the group had approximately 31,400 employees, a decrease from 34,000 employees as of December 31, 2021[77] - The company’s employee costs totaled RMB 4,869 million in 2022, up from RMB 4,696 million in 2021, indicating an increase of approximately 3.7%[36] Dividends and Shareholder Returns - The board did not recommend a final dividend for the year due to ongoing share buyback programs[2] - The company declared an interim dividend of RMB 69 million for 2022, compared to no interim dividend in 2021, while the final dividend for 2021 was RMB 497 million[37] - The company did not declare a final dividend for the year ending December 31, 2022, compared to a final dividend of HKD 0.23 per share in 2021[37] Cash Flow and Financial Position - The net cash generated from operating activities increased significantly to RMB 5,148 million in 2022, compared to RMB 1,244 million in 2021[7] - The company's cash and bank balances were RMB 9,054 million as of December 31, 2022, down from RMB 10,611 million on December 31, 2021, representing a decrease of RMB 1,557 million or 14.7%[70] - The total bank loans amounted to RMB 15,257 million as of December 31, 2022, an increase from RMB 14,262 million on December 31, 2021[71]

Financial Performance - Total revenue for the nine months ended September 30, 2022, was RMB 38,419 million, representing a 7.0% increase from RMB 35,891 million in the same period of 2021[2] - Gross profit for the same period was RMB 6,017 million, up 3.1% from RMB 5,838 million year-on-year[2] - Profit attributable to equity holders of the company decreased by 32.1% to RMB 518 million from RMB 763 million in the previous year[2] - Excluding the impact of fair value changes, profit attributable to equity holders increased by approximately 71.3% compared to the same period last year[2] - The company reported total comprehensive income of RMB 431 million for the period, down from RMB 1,328 million in the previous year[5] - Basic earnings per share for the period were RMB 19.92, compared to RMB 29.01 in the same period last year[5] - The overall gross margin for the nine months ended September 30, 2022, was 15.7%, a decrease of 0.6 percentage points from 16.3% in the same period last year[24] Revenue Breakdown - Revenue from the mainland China market was approximately RMB 25,681 million, an increase of RMB 2,371 million or 10.2% compared to RMB 23,310 million in the same period last year[11] - Revenue from overseas markets was RMB 12,738 million, accounting for 33.2% of total revenue, with a slight increase of RMB 157 million or 1.2% compared to RMB 12,581 million last year[12] - The multimedia business accounted for 35.5% of the mainland China market revenue, down from 50.4% in the previous year, while the new energy business increased to 30.5% from 9.4%[11] - The multimedia business revenue decreased to RMB 16,977 million, a decline of RMB 2,687 million or 13.7% from RMB 19,664 million in the same period last year[16] - The revenue from smart TV system products in the mainland China market for the nine months ended September 30, 2022, was RMB 6,980 million, a decrease of RMB 1,950 million or 21.8% compared to the same period last year[17] - The revenue from smart TV system products in overseas markets for the same period was RMB 6,137 million, down RMB 1,142 million or 15.7% year-on-year[18] - The revenue from the internet value-added services of the Cool Open system reached RMB 988 million, an increase of RMB 58 million or 6.2% compared to the previous year[19] - The smart system technology business in the mainland China market recorded revenue of RMB 5,168 million, an increase of RMB 276 million or 5.6% year-on-year[20] - The overseas revenue for the smart system technology business was RMB 3,818 million, an increase of RMB 1,045 million or 37.7% compared to the previous year[20] - The revenue from smart appliances in the mainland China market was RMB 2,449 million, an increase of RMB 348 million or 16.6% year-on-year[21] - The overseas revenue for smart appliances was RMB 924 million, a decrease of RMB 289 million or 23.8% compared to the previous year[21] - The revenue from the new energy business for the nine months ended September 30, 2022, reached RMB 7,821 million, an increase of RMB 5,631 million or 257.1% compared to RMB 2,190 million in the same period last year[22] Expenses and Cash Flow - Research and development expenses for the nine months were RMB 1,549 million, compared to RMB 1,475 million in the previous year[4] - Sales and distribution expenses for the nine months ended September 30, 2022, were RMB 2,538 million, a decrease of RMB 336 million or 11.7% from RMB 2,874 million in the same period last year[25] - The ratio of sales and distribution expenses to revenue for the nine months ended September 30, 2022, was 6.6%, a decrease of 1.4 percentage points from 8.0% in the same period last year[25] - The ratio of general and administrative expenses to revenue for the nine months ended September 30, 2022, was 2.9%, an increase of 0.3 percentage points from 2.6% in the same period last year[25] - The net cash flow from operating activities for the nine months ended September 30, 2022, was RMB 2,975 million, compared to a cash outflow of RMB 518 million in the previous year[8] - The cash and cash equivalents at the end of the period were RMB 9,203 million, compared to RMB 9,056 million at the end of the same period last year[9] Strategic Initiatives - The company plans to utilize cash for share buybacks under suitable market conditions[1] - The company plans to implement a five-year strategic transformation plan focusing on multimedia, smart system technology, smart appliances, new energy, and modern service industries[15] - The company plans to shift its sales strategy towards high-end TV products like OLED to improve market share amid ongoing competition and pandemic impacts[17] - The company has successfully expanded its e-commerce business to mitigate the negative impacts of the pandemic on offline sales channels[18] - The company aims to leverage strategic partnerships with internet giants to accelerate the development of its smart home and smart city businesses[19] - The company aims to develop a one-stop solution provider model integrating finance, installation, and after-sales services in the photovoltaic sector[22] - The company continues to enhance supply chain management and strategic cooperation with key suppliers in the modern service industry[23] - The company aims to leverage opportunities in global economic digitalization, focusing on green building and smart system development to enhance user experience and promote green economic growth[26] - The company plans to develop new products using "5G+AI+end devices" technology to improve product competitiveness and expand into the smart home system market[26] Operational Resilience - The company has implemented strict internal pandemic prevention measures to minimize operational risks, ensuring no production stoppages or shipment delays occurred during the reporting period[26] - The company is closely monitoring market uncertainties, including interest rate hikes in major economies, geopolitical tensions, and rising transportation costs, to make objective adjustments to its operational plans[26] Share Repurchase - The company repurchased shares amounting to RMB 345 million during the nine months ended September 30, 2022[8] - The company has completed the repurchase of all company notes, which were subsequently canceled, leading to the cessation of quarterly financial disclosures for its subsidiary starting January 1, 2023[27] Asset Management - Non-current assets as of September 30, 2022, totaled RMB 17,680 million, an increase from RMB 15,831 million as of December 31, 2021[6] - Current assets included trade receivables of RMB 10,348 million, down from RMB 12,142 million in the previous year[6]

Financial Performance - For the six-month period ending June 30, 2022, the operating revenue was RMB 24,284 million, an increase from RMB 22,567 million in the same period of 2021, representing a growth of approximately 7.6%[8] - The net profit for the period was RMB 631 million, compared to RMB 610 million in the previous year, reflecting a growth of about 3.4%[8] - The overall revenue for the six months ended June 30, 2022, was RMB 24,284 million, representing a 7.6% increase from RMB 22,567 million in the same period last year[13] - Total revenue for the six months ended June 30, 2022, was RMB 24,284 million, an increase of 7.6% from RMB 22,567 million in 2021[64] - Total revenue for the multimedia business reached RMB 10,626 million, while the smart systems technology business generated RMB 4,599 million, and the smart appliance business contributed RMB 2,200 million[85] - The new energy business reported revenue of RMB 829 million, with modern services and other businesses generating RMB 2,113 million, leading to a total revenue of RMB 22,567 million for the reporting period[85] Profitability Metrics - The gross profit margin decreased to 16.0%, down from 16.6% year-on-year, a decline of 0.6 percentage points[8] - The operating profit margin was 4.4%, a decrease from 4.7% in the previous year, representing a decline of 0.3 percentage points[8] - The return on equity for the company was 3.8%, down from 4.9% in the previous year, a decrease of 1.1 percentage points[8] - Basic earnings per share decreased to RMB 12.98 from RMB 15.54, a decline of 16.5% year-over-year[67] - Total comprehensive income for the period was RMB 270 million, significantly lower than RMB 1,053 million in 2021, a decrease of 74.3%[67] Cash Flow and Liquidity - Cash and cash equivalents increased significantly to RMB 12,471 million, up 35.5% from RMB 9,242 million in the prior year[8] - The company’s cash and cash equivalents stood at RMB 9,823 million, providing a strong liquidity position[70] - For the six months ended June 30, 2022, the net cash generated from operating activities was RMB 2,049 million[75] - The group’s cash and bank balances were RMB 9,823 million as of June 30, 2022, down RMB 788 million or 7.4% from RMB 10,611 million on December 31, 2021[48] Debt and Liabilities - The net debt to equity ratio improved to 71.7%, down from 77.3% year-on-year, a reduction of 5.6 percentage points[8] - Total bank loans reached RMB 14,505 million as of June 30, 2022, an increase from RMB 14,262 million on December 31, 2021[48] - The overall interest-bearing liabilities totaled RMB 15,407 million, a decrease from RMB 16,145 million on December 31, 2021, resulting in a debt-to-equity ratio of 71.7% compared to 76.6% previously[48] - Current liabilities amounted to RMB 33,378 million, indicating a slight increase from the previous year[71] Market Performance - The company's market capitalization was HKD 10,193 million as of the reporting date, with 2,627 million shares issued[8] - Sales volume of smart TV systems in the Chinese market decreased by 14.3% to 2,469 thousand units compared to 2,881 thousand units in the same period last year[14] - Revenue from the mainland China market was approximately RMB 16,101 million, an increase of RMB 1,469 million or 10.0% from RMB 14,641 million in the same period last year[17] - Revenue from overseas markets was RMB 8,174 million, accounting for 33.7% of total revenue, with a growth of RMB 248 million or 3.1% compared to RMB 7,926 million in the same period last year[17] Strategic Initiatives - The company plans to focus on high-end TV products like OLED to improve market share in response to competitive pressures and the impact of COVID-19[25] - The company aims to accelerate the development of smart systems and new energy businesses as part of its strategic transformation over the next five years[22] - The company has established an advanced R&D center in Nanjing to enhance its research capabilities and increase market share in smart appliances[34] - The company plans to continue developing household photovoltaic business while gradually expanding into commercial photovoltaic and comprehensive smart energy management[37] Research and Development - Research and development expenses were RMB 1,001 million for the six months ended June 30, 2022, an increase of RMB 21 million or 2.1% from RMB 980 million in the same period last year[47] - The company aims to enhance its brand value in the smart home appliance market by leveraging core patented technologies and expanding online and offline sales channels[37] Dividends - The company declared an interim dividend of HKD 0.03 per share, compared to HKD 0.0144 per share in the previous year, indicating a significant increase[12] - The board proposed an interim dividend of HKD 0.03 per share, totaling approximately RMB 69 million, compared to no dividend for the same period in 2021[170] Employment and Workforce - The workforce decreased to approximately 29,500 employees as of June 30, 2022, down from 34,000 employees at the end of 2021[59] Investments and Assets - The group reported a total asset value of RMB 44,230 million as of June 30, 2022, compared to RMB 43,000 million at the end of 2021[70] - The group held investments in 50 unlisted companies valued at RMB 2,797 million as of June 30, 2022, including a 10% stake in a company focused on manufacturing flat panel displays[50] Other Financial Metrics - The company incurred a net cash outflow from investing activities of RMB 1,876 million during the period[75] - The company reported a profit of RMB 409 million for the period, which is a decrease from RMB 610 million in the previous year[72] - The total tax expense for the period was RMB 198 million, compared to RMB 202 million in the same period last year[100]

Financial Performance - Total revenue for the three months ended March 31, 2022, was RMB 10,890 million, representing a 9.5% increase from RMB 9,943 million in the same period last year[2] - Gross profit for the same period was RMB 1,787 million, up 5.9% from RMB 1,687 million year-on-year[2] - Net profit for the period decreased by 40.1% to RMB 170 million, compared to RMB 284 million in the previous year[2] - Profit attributable to equity holders of the company was RMB 69 million, down 59.4% from RMB 170 million in the same period last year[2] - The company reported a basic earnings per share of RMB 2.63, down from RMB 6.45 in the same period last year[5] - The overall gross margin for the three months ended March 31, 2022, was 16.4%, a decrease of 0.6 percentage points from 17.0% in the same period last year[26] - The net loss from other income and expenses was RMB 256 million, a decrease of RMB 415 million compared to a net income of RMB 159 million in the same period last year[27] Revenue Breakdown - Revenue from the mainland China market was RMB 7,361 million, an increase of RMB 1,114 million or 17.8% from RMB 6,247 million in the same period last year[11] - Multimedia business revenue in the three months ended March 31, 2022, was RMB 5,184 million, a decrease of RMB 969 million or 15.7% from RMB 6,153 million in the same period last year[15] - The sales revenue of smart TV systems in the mainland China market was RMB 2,252 million, a decrease of RMB 535 million or 19.2% from RMB 2,787 million in the same period last year[16] - Revenue from overseas markets was RMB 3,529 million, accounting for 32.4% of total revenue, a decrease of RMB 167 million or 4.5% from RMB 3,696 million in the same period last year[12] - The revenue from the smart TV system products in overseas markets for the three months ended March 31, 2022, was RMB 1,659 million, a decrease of RMB 603 million or 26.7% compared to RMB 2,262 million in the same period last year[17] - The revenue from the Cool Open System's internet value-added services was RMB 370 million, a decrease of RMB 6 million or 1.6% compared to RMB 376 million in the same period last year[19] - The smart system technology business recorded revenue of RMB 2,750 million, an increase of RMB 490 million or 21.7% compared to RMB 2,260 million in the same period last year[20] - The smart appliance business generated revenue of RMB 991 million, an increase of RMB 30 million or 3.1% compared to RMB 961 million in the same period last year[21] - The new energy business revenue was RMB 1,516 million, a significant increase of RMB 1,361 million or 878.1% compared to RMB 155 million in the same period last year[23] Expenses and Costs - Research and development expenses for the three months were RMB 465 million, slightly down from RMB 492 million in the previous year[4] - Sales and distribution expenses for the three months ended March 31, 2022, were RMB 750 million, a decrease of RMB 139 million or 15.6% compared to RMB 889 million in the same period last year[28] - General and administrative expenses increased to RMB 351 million, up RMB 46 million or 15.1% from RMB 305 million year-on-year[28] - The R&D expenses as a percentage of revenue were 4.3%, down 0.6 percentage points from 4.9% in the same period last year[28] Assets and Liabilities - Total assets as of March 31, 2022, amounted to RMB 45,354 million, compared to RMB 45,050 million as of December 31, 2021[6] - Total assets less current liabilities amounted to RMB 28,682 million as of March 31, 2022, down from RMB 29,556 million as of December 31, 2021[7] - The company's net asset value was RMB 20,908 million as of March 31, 2022, slightly down from RMB 21,086 million as of December 31, 2021[7] Market and Strategic Focus - The company plans to focus on high-end TV products like OLED to improve market share in response to competitive pressures and the impact of COVID-19 variants[16] - The company aims to accelerate transformation in 2022, focusing on smart, refined, and international strategies across five business segments[29] - The company plans to expand into overseas markets, particularly in India, Southeast Asia, Africa, and continue developing in Europe and Latin America[29] - The company is committed to developing smart system control center products and promoting green building initiatives[29] - The company plans to continue expanding its smart appliance business and enhance its R&D capabilities through an independent listing on the Shenzhen Stock Exchange[22] - The company aims to develop a comprehensive new energy strategy, focusing on household photovoltaic systems and gradually expanding into commercial photovoltaic and smart energy management[23] Operational Challenges - The ongoing COVID-19 pandemic and its variants continue to pose uncertainties for the business environment, although no significant financial difficulties have been reported to date[30] - The sales volume in overseas markets decreased by 18.9% due to the severe impact of the COVID-19 pandemic and high shipping costs[18] - The total sales volume of smart TV systems was 2,781 thousand units, a decrease of 18.3% compared to 3,404 thousand units in the same period last year[10] Corporate Governance - The board has approved a share buyback plan, subject to suitable market conditions[2] - The company expresses gratitude to shareholders and business partners for their continued support and acknowledges the efforts of management and staff[31]