Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [1][3]. Core Views - The company reported total revenue of $4.2 billion in 2023, a year-on-year increase of 10%, while the net profit attributable to the parent company was $0.37 million, a decrease of 37% [3][4]. - The company achieved revenue of $2.1 billion in the second half of 2023, reflecting a 3% year-on-year growth, despite disruptions from strikes in North America [3]. - The Asia-Pacific region showed strong revenue growth, with North America, Asia-Pacific, and EMEASA regions generating revenues of $2.26 billion, $1.21 billion, and $730 million respectively, with year-on-year growth rates of 1%, 26%, and 17% [3]. - The company expects continued strong order intake in 2024, with new orders totaling $6.1 billion in 2023, where the EPS business accounted for 81% of the order structure [3][4]. Summary by Sections Financial Performance - In 2023, the company achieved total revenue of $4.2 billion, with a net profit of $0.37 million, resulting in a net profit margin of 0.9% [3][4]. - The revenue forecast for 2024-2026 is projected to be $4.6 billion, $5.1 billion, and $6.0 billion respectively, with net profits expected to be $1.54 million, $2.52 million, and $3.37 million [4][6]. Regional Performance - The Asia-Pacific region's revenue for 2023 was $1.21 billion, marking a 26% increase year-on-year, driven primarily by the EPS business [3][4]. Business Segments - The electric power steering (EPS) and powertrain systems (DL) were the main growth drivers, with EPS revenue reaching $2.86 billion, a 9% increase year-on-year [3][4]. Valuation - The company is expected to maintain a strong growth trajectory, with a projected P/E ratio of 12-14x for 2024, translating to a fair value range of HKD 5.75 to HKD 6.71 [3][4].

Investment Rating - Maintain "Buy" rating [2][3] Core Views - 2023 performance fell short of expectations with revenue up 9.6% YoY to $4.2 billion, but net profit down 36.7% YoY to $37 million, primarily due to UAW strikes, supplier disruptions, restructuring, currency fluctuations, and inflation [2] - Asia-Pacific (APAC) region and EPS business showed strong progress, with APAC revenue up 25.9% YoY to $1.22 billion, accounting for 29% of total revenue, and EPS business contributing 68% of total revenue [2] - 2024E EBITDA margin is expected to rise to low double digits, driven by fixed cost reductions and business layout adjustments [2] - Management guidance indicates robust growth momentum from customer diversification and strategic expansion, with a target order book of $6 billion for 2024E [3] - The company has a leading advantage in steer-by-wire, steering system integration, and software design, positioning it well for higher levels of autonomous driving [3] Financial Performance - 2023 revenue: $4.207 billion, up 9.6% YoY [4] - 2023 net profit: $37 million, down 36.7% YoY [4] - 2024E revenue forecast: $4.493 billion, up 6.8% YoY [4] - 2024E net profit forecast: $130 million, up 254.6% YoY [4] - 2026E net profit forecast: $222 million, up 41.1% YoY [4] Business Highlights - APAC region contributed 29% of total revenue in 2023, up 4 percentage points YoY, with 39 out of 55 new projects launched in the region [2] - EPS business accounted for 68% of total revenue in 2023, with new orders for EPS reaching 81% [2] - The company has established five global technology centers and is building a new factory in Changshu, expected to be operational by 2025E [3] Market Data - Current price: HKD 3.57, target price: HKD 4.82 [5] - Total market capitalization: HKD 8.96 billion [6] - 52-week low/high: HKD 3.08/HKD 6.32 [6] Financial Metrics - 2023 EBITDA: $350 million, down 5.0% YoY [2] - 2023 EBITDA margin: 8.8%, down 0.8 percentage points YoY [2] - 2024E EBITDA margin forecast: low double digits [2] - 2023 ROE: 1.87%, down from 3.00% in 2022 [4] - 2024E ROE forecast: 6.05% [4] Strategic Initiatives - Customer diversification: Secured EPS orders from a leading North American EV manufacturer and entered the Chinese OEM market with Li Auto and XPeng [3] - Strategic expansion: Optimized engineering resources globally and initiated construction of a new factory in Changshu, expected to drive future growth [3] Valuation - 2024E P/E: 8.8x [4] - 2025E P/E: 7.3x [4] - 2026E P/E: 5.2x [4]

证券研究报告·海外公司点评·汽车(HS) 耐世特（01316.HK） 2023年报点评：受一次性因素影响业绩承压， 2024 年 03月 27日 线控转向商业化加速！ 证券分析师 黄细里 买入（维持） 执业证书：S0600520010001 021-60199793 [ 盈Ta 利bl 预e_ 测EP 与S] 估 值 2022A 2023A 2024E 2025E 2026E huangxl@dwzq.com.cn 营业总收入（百万元） 3,846 4,213 4,495 4,900 5,243 股价走势 同比 14.19% 9.55% 6.69% 9.01% 7.00% 耐世特 恒生指数 归母净利润（百万元） 58.01 36.74 137.86 182.51 224.67 21% 同比 -51.02% -36.67% 275.26% 32.39% 23.10% 15% 9% 3% EPS-最新摊薄（元/股） 0.02 0.01 0.05 0.07 0.09 -3% -9% P/E（现价&最新摊薄） 21.38 33.76 9.00 6.79 5.52 -15% -21% [ [TT aab bl le e ...

Revenue and Financial Performance - Revenue for the year 2023 increased to $4,206.793 million, up from $3,839.703 million in 2022, representing a growth of 9.56%[2] - Total revenue for 2023 was $4,206,793 thousand, up from $3,839,703 thousand in 2022[31] - Revenue from external customers for the year ended December 31, 2023, was $4,206,793 thousand, with North America contributing $2,259,055 thousand, Asia-Pacific $1,214,732 thousand, and Europe, Middle East, Africa, and South America $725,921 thousand[22] - Revenue for the fiscal year ending December 31, 2023, increased by $367.1 million or 9.6% to $4,206.8 million compared to $3,839.7 million in 2022, driven by increased light vehicle production and new project launches[54] - The company achieved a record annual revenue of $4.2 billion in 2023, marking the first time it surpassed $4 billion, representing a 9.6% increase compared to 2022[49] - Revenue from production parts is recognized upon shipment, with payment terms typically ranging from 30 to 90 days[16] - Tool revenue is recognized using the input method as performance obligations are fulfilled, based on reimbursable costs incurred[16] - Non-production-related engineering design and development/model revenue is recognized using the input method, often related to ADAS, performance enhancement, and business expansion[16] - The company primarily contracts with automotive manufacturers and OEMs for the sale of steering and powertrain systems, with no significant payment terms as payments are received shortly after sales[17] - Total revenue for the year ended December 31, 2023, was $4,252,916 thousand, with North America contributing $2,333,631 thousand, Asia-Pacific $1,244,679 thousand, and Europe, Middle East, Africa, and South America $727,755 thousand[22] - The U.S. contributed $1,353,262 thousand to North America's revenue for the year ended December 31, 2023, while Mexico contributed $905,793 thousand[26] - China contributed $1,058,321 thousand to Asia-Pacific's revenue for the year ended December 31, 2023, while other Asia-Pacific regions contributed $156,411 thousand[26] - Poland contributed $404,704 thousand to Europe, Middle East, Africa, and South America's revenue for the year ended December 31, 2023, while other regions in this segment contributed $321,217 thousand[26] - Electric Power Steering (EPS) revenue for 2023 reached $1,411,414 thousand, showing significant growth compared to $843,494 thousand in 2022[29] - Hydraulic Power Steering (HPS) revenue increased to $164,175 thousand in 2023 from $2,860 thousand in 2022[29] - General Motors accounted for $1,407,922 thousand of the company's revenue in 2023, up from $1,241,493 thousand in 2022[31] - Adjusted for foreign exchange and commodity compensation, revenue growth was 11.1%, outperforming the market by 170 basis points[54] - North America revenue increased by $12.0 million or 0.5% in 2023, despite a $59.1 million reduction due to UAW strikes and a $11.9 million decrease from reduced commodity compensation[57] - Asia-Pacific revenue surged by $249.5 million or 25.9%, driven by a 9.2% increase in light vehicle production, with China and India seeing production increases of 9.9% and 6.4%, respectively[57] - Europe, Middle East, Africa, and South America revenue grew by $106.7 million or 17.2%, supported by an 11.7% increase in European light vehicle production and favorable foreign exchange impacts[58] - EPS product line revenue increased by $242.4 million or 9.3%, driven by higher light vehicle production and market growth in Asia-Pacific and Europe[59] - DL product line revenue rose by $113.0 million or 16.5%, attributed to increased light vehicle production across all geographic regions[59] Profit and Earnings - Net profit attributable to equity holders of the company decreased to $36.737 million in 2023 from $58.013 million in 2022, a decline of 36.7%[2] - Annual profit for 2023 was $36,737 thousand, a decrease from $58,013 thousand in 2022[7] - Pre-tax profit for the year ended December 31, 2023, was $64.227 million, compared to $91.947 million in 2022[37] - Income tax expense for 2023 was $19.052 million, down from $26.434 million in 2022[37] - Basic earnings per share for 2023 were $0.01, compared to $0.02 in 2022[39] - Diluted earnings per share for 2023 were $0.01, the same as in 2022[41] - Earnings per share (basic and diluted) decreased to $0.01 in 2023 from $0.02 in 2022[2] - Net profit attributable to equity holders decreased by $21.3 million or 36.7% to $36.7 million, representing 0.9% of total revenue, compared to $58.0 million (1.5% of total revenue) in 2022[60] - The company's gross profit was $368.6 million in 2023, a 0.4% increase year-over-year, while profit before tax decreased by 30.1% to $64.2 million[50] - Profit attributable to equity holders decreased by 36.7% to $36.7 million in 2023, primarily due to challenges in the North America division[50] Assets and Liabilities - Total assets increased to $3,404.593 million in 2023 from $3,335.281 million in 2022[4] - Total equity increased to $2,010.841 million in 2023 from $1,977.150 million in 2022[5] - Total liabilities slightly increased to $1,393.752 million in 2023 from $1,358.131 million in 2022[6] - Total equity as of December 31, 2023, amounted to $2,010,841 thousand, compared to $1,977,150 thousand at the end of 2022, reflecting an increase of $33,691 thousand[7] - Total assets as of December 31, 2023, were $3,404,593 thousand, with North America accounting for $1,639,081 thousand, Asia-Pacific $1,241,409 thousand, and Europe, Middle East, Africa, and South America $734,003 thousand[24] - Total liabilities as of December 31, 2023, were $1,393,752 thousand, with North America accounting for $837,413 thousand, Asia-Pacific $610,185 thousand, and Europe, Middle East, Africa, and South America $272,104 thousand[24] - Non-current assets (excluding deferred tax assets) as of December 31, 2023, were $1,829,871 thousand, with the U.S. accounting for $490,981 thousand, Mexico $471,072 thousand, and China $410,099 thousand[27] - Total accounts receivable as of December 31, 2023, were $752.240 million, slightly down from $754.683 million in 2022[43] - Accounts receivable aged 0-30 days decreased to $367.893 million in 2023 from $514.428 million in 2022[44] - Total accounts payable as of December 31, 2023, were $833.401 million, up from $815.402 million in 2022[47] - Total borrowings decreased to $49.1 million in 2023 from $49.8 million in 2022, with current borrowings at $14.122 million and non-current borrowings at $34.988 million[77][78] - Total assets pledged as collateral decreased to $790.5 million in 2023 from $851.2 million in 2022, reflecting a reduction in related pledged asset balances[80] - The capital-to-debt ratio improved to 2.4% in 2023 from 2.5% in 2022, driven by reduced borrowings and increased total equity due to profitability[82] Cash Flow and Financing - Cash and cash equivalents rose to $311.741 million in 2023, up from $245.934 million in 2022[4] - The company's cash balance increased by $65.8 million to $311.7 million as of December 31, 2023, compared to $245.9 million in 2022[50] - Net cash generated from operating activities increased by $110.4 million to $404.1 million in 2023, driven by a $38.3 million tax refund and favorable working capital changes[50] - Net cash generated from operating activities increased by $110.4 million to $404.1 million for the year ended December 31, 2023, compared to $293.8 million in 2022, driven by a $38.3 million tax refund and favorable working capital movements[73] - Investment activities used a net cash flow of $299.148 million in 2023, compared to $263.474 million in 2022, primarily driven by capital expenditures on machinery, equipment, and tools, as well as capitalized engineering and product development costs[74][75] - Financing activities used a net cash flow of $38.4 million in 2023, a decrease of $46.8 million from $85.2 million in 2022, mainly due to reduced net repayments of borrowings, particularly under the US revolving credit facility[76] Costs and Expenses - Gross profit for 2023 was $368.593 million, slightly higher than $367.151 million in 2022[2] - Employee benefit costs rose to $576,701 thousand in 2023 from $495,388 thousand in 2022[32] - The company's cost of sales, engineering, product development, sales, distribution, and administrative expenses totaled $4,143,709 thousand in 2023, up from $3,768,356 thousand in 2022[32] - Foreign exchange losses amounted to $3,449 thousand in 2023, compared to a gain of $9,932 thousand in 2022[33] - The company's financing costs increased to $5,064 thousand in 2023 from $3,655 thousand in 2022[34] - Immediate tax expenses were $42,016 thousand in 2023, up from $36,932 thousand in 2022[34] - Sales cost increased by $365.6 million or 10.5% to $3,838.2 million in 2023, with raw material costs accounting for $2,751.0 million or 65.4% of revenue, up 7.4% from 2022[61] - Gross profit margin declined to 8.8% in 2023 from 9.6% in 2022, with gross profit increasing slightly by $1.4 million or 0.4% to $368.6 million[62] - Engineering and product development costs increased by $5.6 million or 3.9% to $150.7 million, representing 3.6% of revenue in 2023[63] - Total investment in engineering and product development costs rose by $9.1 million or 3.1% to $298.0 million in 2023[64] - Selling, distribution, and administrative expenses increased by $4.1 million or 2.7% to $154.8 million, accounting for 3.7% of revenue in 2023[65] - Other (losses)/gains net amounted to a loss of $1.7 million in 2023, a decrease of $16.7 million from a gain of $15.0 million in 2022[66] - Net financing costs for the year ended December 31, 2023, were $0, compared to a net financing income of $5.0 million in the same period in 2022, primarily due to a $4.0 million decrease in interest income related to tax refunds/receivables[67] Dividends and Shareholder Returns - Dividends paid to shareholders in 2023 totaled $11,796 thousand, down from $22,201 thousand in 2022[7] - The company proposed a dividend of $0.0030 per share for 2023, down from $0.0047 per share in 2022[42] - The company's board of directors has proposed a final dividend of approximately $7.5 million (or $0.0030 per share), representing about 20% of the net profit attributable to equity holders for the year ended December 31, 2023[93] - The final dividend will be paid on July 9, 2024, with the record date for determining entitlement to the final dividend set as June 27, 2024[94] Operational Highlights - The company operates primarily in the United States, Mexico, China, Poland, India, Morocco, and Brazil, serving markets in North America, Europe, South America, China, and India[9] - The company is engaged in designing and manufacturing steering and driveline systems, advanced driver-assistance systems (ADAS), and autonomous driving (AD) components for automotive manufacturers[9] - The company successfully launched 55 new customer projects in 2023, including 34 electric vehicle projects, with 53 being new business wins[53] - Light vehicle production in key markets increased by 9.2% in North America, 9.9% in China, 6.4% in India, and 11.7% in Europe in 2023[53] - The company faced challenges in North America, including a UAW strike and supplier disruptions, which resulted in $49.3 million in negative impacts[50] - The company implemented cost-saving measures, including a voluntary early retirement program in the U.S. and optimization of manufacturing layouts[49] - The company secured customer project orders totaling $6.1 billion in 2023, with 81% from EPS product lines and 83% for electric or hybrid vehicle platforms[84] - 41% of the 2023 order volume represents new or newly acquired business, positioning the company for long-term above-market growth[84] Accounting and Financial Reporting - The company's functional currency is the US dollar, and the consolidated financial statements are presented in thousands of US dollars[9] - The company adopted revised accounting standards effective from January 1, 2023, which are relevant to its operations[12] - Contract assets increased by $937,000 from $47,718,000 in 2022 to $48,655,000 in 2023[20] - Contract liabilities increased by $3,004,000 from $24,240,000 in 2022 to $27,244,000 in 2023[20] - Non-current contract liabilities increased by $5,616,000 from $104,613,000 in 2022 to $110,229,000 in 2023[20] - The company applies the revised IAS 1 and IFRS Practice Statement 2, which clarify the disclosure of significant accounting policies[13] - The company has applied the revised IAS 12 regarding international tax reform under Pillar Two, with qualitative and quantitative information on tax risks provided in Note 6[14] - The company has not yet adopted certain revised standards, including IAS 1 amendments on classification of liabilities and supplier financing arrangements, which are expected to have no material impact[15] - The consolidated financial statements were approved by the board of directors on March 26, 2024[9] - The company recognized deferred tax assets of $11.0 million related to Brazilian net operating losses[38] - The company recognized a deferred tax asset of $11.0 million related to Brazilian net operating losses, which have no expiration and can be used to offset future tax liabilities[69] - Provisions for litigation, environmental liabilities, warranties, and shutdown claims decreased by $6.4 million to $87.4 million as of December 31, 2023, compared to $93.7 million in 2022, mainly due to net changes in warranty provisions[71] Corporate Governance and Compliance - The company's shares have been listed on the Hong Kong Stock Exchange since October 7, 2013[9] - The company has adopted internal control and corporate governance policies in line with the Hong Kong Corporate Governance Code[87] - The company ensures compliance with the Standard Code for Securities Transactions by Directors of Listed Issuers, and all directors confirmed adherence to the code as of December 31, 2023[89] - The company maintains a sensitivity list to identify factors or developments that may lead to insider information or create a false market for its securities[89] - The company organizes training for employees who may have access to insider information to ensure they understand the company's policies and procedures[89] - The company's Chairman, Mr. Lei Zili, has been serving as the CEO since June 21, 2022, which deviates from the Hong Kong Listing Rules but is believed to provide consistent leadership for the group[88] - The Audit and Compliance Committee, consisting of Dr. Wang Bin, Mr. Shi Shiming, and Mr. Yue Yun, reviewed the company's accounting principles, annual performance, and financial statements for the year ended December 31, 2023[91] - The company and its subsidiaries did not purchase, redeem, or sell any of the company's listed securities during the year ended December 31, 2023[92] - The company has maintained the public float as required by the listing rules as of the date of the announcement[95] Employee and Compensation - The company has approximately 12,900 full-time employees as of December 31, 2023, and employs around 1,600 contract workers to support business operations[86] - The company's compensation policy is based on individual performance and company results, and includes various employee benefit plans such as retirement benefits, extended disability benefits, and labor compensation[86] - The company has adopted an employee reward plan to attract, retain, motivate, and encourage employees to contribute to overall value creation[86] Other Comprehensive Income and Exchange Rates - Other comprehensive income for 2023 was $4.115 million, compared to a loss of $59.447 million in 2022[3] - Exchange rate differences resulted in a loss of $56,748 thousand in 2022, but a gain of $5,250 thousand in 2023[7] - Foreign exchange translation negatively impacted revenue growth by

Financial Performance - Record half-year revenue of $2.1 billion, a 17.4% increase compared to the first half of 2022[13] - Full-year revenue for 2023 is expected to exceed $4 billion for the first time in the company's history[13] - Generated free cash flow of $59.9 million in the first half of 2023, significantly better than the same period in 2022[13] - Revenue for the first six months of 2023 reached a record $2.10183 billion, a 17.4% increase compared to the same period in 2022[30] - Adjusted EBITDA for the first six months of 2023 was $186.134 million, up 17.7% year-over-year[30] - Net profit attributable to equity holders of the company was $33.993 million, a significant turnaround from a loss of $11.138 million in the same period last year[30] - Cash balance as of June 30, 2023, was $290.1 million, an increase of $44.2 million from December 31, 2022[34] - Revenue for the first half of 2023 increased by $310.7 million or 17.4% to $2,101.8 million compared to $1,791.1 million in the same period of 2022, driven by increased light vehicle production and new project launches[37] - Net profit attributable to equity holders was $34.0 million or 1.6% of total revenue, a significant improvement from a loss of $11.1 million in the same period of 2022[41] - Revenue increased to $2.10 billion in H1 2023, up 17.3% from $1.79 billion in H1 2022[93] - Gross profit rose to $190.8 million in H1 2023, a 27.4% increase from $149.8 million in H1 2022[93] - Operating profit more than doubled to $46.8 million in H1 2023 from $22.0 million in H1 2022[93] - Net profit attributable to equity holders was $34.0 million in H1 2023, compared to a loss of $11.1 million in H1 2022[94] - Basic earnings per share improved to $0.014 in H1 2023 from a loss of $0.004 per share in H1 2022[94] - Cash generated from operations increased 54.3% to $231.2 million in H1 2023 from $122.5 million in H1 2022[100] - Capital expenditures totaled $176.8 million in H1 2023, up 32.5% from $133.5 million in H1 2022[100] - Net cash position increased to $290.1 million as of June 30, 2023, compared to $245.9 million at the start of the year[100] - Foreign exchange losses narrowed to $10.1 million in H1 2023 from $45.1 million in H1 2022[96] - Total comprehensive income was $27.3 million in H1 2023, a significant improvement from a loss of $53.9 million in H1 2022[97] - Total revenue for the six months ended June 30, 2023, was $2.123 billion, up from $1.815 billion in the same period in 2022[117] - Adjusted EBITDA for the six months ended June 30, 2023, was $186.134 million, compared to $158.117 million in the same period in 2022[117] - Total revenue for the first half of 2023 reached $2.10183 billion, a 17.3% increase from $1.791067 billion in the same period of 2022[126][128] - Electric Power Steering (EPS) revenue grew to $1.442653 billion in H1 2023, up 17.7% from $1.226394 billion in H1 2022[125][126] - General Motors accounted for $721.887 million in revenue, representing 34.3% of total revenue in H1 2023[129] Regional Revenue Growth - The Asia-Pacific region saw the largest revenue growth at 43.7% year-over-year[34] - North America revenue grew by $99.4 million or 9.1% to $1,194.5 million, supported by a 12.0% increase in light vehicle production, partially offset by customer price reductions due to lower raw material costs[39] - Asia-Pacific revenue surged by $165.5 million or 43.7% to $543.9 million, driven by new project launches and a 9.8% increase in light vehicle production, though foreign exchange impacts reduced growth by $38.4 million[39] - Europe, Middle East, Africa, and South America revenue increased by $45.0 million or 14.2% to $361.1 million, supported by a 16.0% rise in European light vehicle production and a 9.8% increase in South America[39] - North America segment revenue increased to $1.194 billion in the six months ended June 30, 2023, from $1.095 billion in the same period in 2022[117] - Asia-Pacific segment revenue rose to $543.983 million in the six months ended June 30, 2023, from $378.472 million in the same period in 2022[117] - Revenue from the U.S. increased to $709.033 million in the six months ended June 30, 2023, from $641.476 million in the same period in 2022[122] - Revenue from China grew to $464.570 million in the six months ended June 30, 2023, from $314.813 million in the same period in 2022[122] - North America revenue decreased to $503.126 million in Q2 2023 from $546.501 million in Q4 2022, while Mexico revenue increased to $463.447 million from $446.505 million[124] - China revenue declined to $380.260 million in Q2 2023 compared to $391.033 million in Q4 2022, while other Asia-Pacific regions remained stable at around $35 million[124] Operational Efficiency and Cost Management - The company implemented an Early Retirement Incentive Plan (ERIP) in the US to reduce fixed costs, with savings expected in the second half of 2023[16] - A 25-acre solar farm in Saginaw, Michigan, is planned to reduce operational costs using renewable energy, with construction expected to start in late 2023 and completion in 2024[16] - The company is optimizing its US driveline (DL) business by consolidating two plants into one by the end of 2023 to improve efficiency and cost competitiveness[17] - The company is relocating its North American (NA) steering column business from Saginaw, Michigan, to Juarez, Mexico, with completion targeted by 2026 to enhance profitability through economies of scale[17] - The company terminated its electric drive product line in March 2023 to focus on SbW (steer-by-wire) and software-related solutions, reallocating resources to priority business areas[17] - The company dissolved its joint venture CNXMotion in February 2023 to reallocate resources to support priority businesses, leveraging over 60 invention records and 30 patent applications from the venture[18] - Raw material costs increased by $193.4 million or 16.3% to $1,382.8 million, accounting for 65.8% of total revenue, driven by higher sales volume[44] - Gross profit rose by $41.0 million or 27.4% to $190.8 million, with gross margin improving to 9.1% from 8.4% in the same period of 2022[44] - Engineering and product development costs increased to $68.0 million, accounting for 3.2% of revenue, up by $7.8 million or 13.0% compared to the same period in 2022[45] - Total investment in engineering and product development costs reached $150.7 million, an increase of $14.1 million or 10.3% from the previous year[45] - Sales, distribution, and administrative expenses decreased to $77.3 million, representing 3.7% of revenue, down by $2.7 million or 3.4% year-over-year[46] - Other net income decreased to $1.3 million, down by $11.2 million due to unfavorable foreign exchange rates compared to the same period in 2022[47] - Net financing costs were $0.9 million, compared to a net financing income of $0.4 million in the same period last year, primarily due to short-term borrowing fluctuations[48] - Income tax expense decreased to $8.4 million, representing 18.3% of pre-tax profit, down by $21.1 million compared to the same period in 2022[50] - Provisions for litigation, environmental liabilities, warranties, and shutdown claims decreased to $86.8 million, down by $6.9 million from the end of 2022[51] - Net cash generated from operating activities increased to $231.2 million, up by $108.7 million year-over-year, driven by higher profitability and favorable working capital changes[54] - Investment activities used a net cash outflow of $171.3 million, primarily for the purchase of machinery, equipment, and intangible assets related to engineering and product development[56] - Net cash used in financing activities was $13.9 million, a decrease of $28.5 million compared to the same period in 2022, mainly due to repayment of borrowings and lease liabilities[57] - Total borrowings decreased by $1.9 million to $47.9 million as of June 30, 2023, primarily due to foreign exchange effects on RMB-denominated loans[58] - Total assets pledged as collateral increased by $17.7 million to $868.9 million as of June 30, 2023, reflecting higher balances of related pledged assets[61] - The capital-to-debt ratio decreased by 10 basis points to 2.4% as of June 30, 2023, compared to 2.5% at the end of 2022[63] - Total costs, including cost of sales, engineering, product development, and administrative expenses, increased to $2,056,312,000 for the six months ended June 30, 2023, up from $1,781,521,000 in the same period of 2022[166] Customer Projects and Orders - Secured customer project orders totaling $2.8 billion in the first half of 2023[13] - Successfully launched 32 new customer projects across all regions, with 37% being new or newly acquired business[13] - 30 out of the customer projects are new or newly acquired, with 19 supporting electric vehicle (EV) initiatives[13] - Increased orders from Chinese new energy vehicle (NEV) manufacturers and growing interest in SbW (Steer-by-Wire) technology[13] - Expansion in North American EV truck projects[13] - The company's order intake for the first half of 2023 reflects strong momentum, with future project-related lifetime revenue calculated based on OEM production forecasts and market trends[19] - The company secured a total of $2.8 billion in customer project orders in the first half of 2023, with 89% of orders coming from the EPS product line and 98% of orders designated for EV or EV/ICE shared platforms[20] - 37% of the orders in H1 2023 were for new or newly acquired business, positioning the company for long-term above-market growth[20] - The company won a significant SbW (Steer-by-Wire) order from a leading global OEM, marking its second SbW contract, and is actively pursuing more SbW opportunities globally[20][21] - In H1 2023, 32 customer projects went into production, including 30 new or newly acquired projects and 19 EV platform projects[24] - The company's REPS (Rack-Assist Electric Power Steering) orders for BEV truck platforms in 2022 and SbW orders in 2023 strengthened its leadership in the North American truck market[22] - The company is collaborating with global and Chinese OEMs on multiple paid SbW development programs, which are likely to transition into production plans in the future[20][21] - The company's products are featured in key EV models such as the Ford F-150 Lightning, GMC Hummer EV, and Chevrolet Silverado EV[22] Strategic Focus and Innovation - The company aims to maintain its global leadership in advanced steering and driveline systems, focusing on electrification, driver assistance, and ADAS technologies[64] - The company's SbW technology supports the transition from hardware-defined to software-defined vehicles, enabling OTA updates and extended platform lifecycles[22] - The company's software development center in India is expected to expand to 550 employees by the end of 2023, enhancing software development and verification efficiency[22] - The company's global software team, spanning four locations, focuses on delivering fast, flexible, and seamless vehicle integration solutions[22] - The company terminated its electric drive product line in March 2023 to focus on SbW (steer-by-wire) and software-related solutions, reallocating resources to priority business areas[17] - The company dissolved its joint venture CNXMotion in February 2023 to reallocate resources to support priority businesses, leveraging over 60 invention records and 30 patent applications from the venture[18] - The company hosted a global supplier conference in Querétaro, Mexico, in May 2023, awarding 95 suppliers with Perfect Quality awards and 5 with Superior Customer Service awards[17] Financial Instruments and Accounting - The company's financial instruments are classified into three levels based on the observability of market data, with no transfers between levels[106][107] - The company adopted new/revised accounting standards effective from January 1, 2023, with no material impact on the condensed financial statements[104] - The company's financial statements are prepared in accordance with International Accounting Standards (IAS) 34 and the disclosure requirements of the Hong Kong Stock Exchange[102] - The company's financial assets and liabilities are measured at fair value, with changes in fair value recognized in other comprehensive income[106] - The company's revenue from tools is recognized as the performance obligations are fulfilled, based on the costs incurred for the tools[110] - The company's revenue from non-production-related engineering design and development is recognized as performance obligations are fulfilled[111] - The company's financial statements are unaudited and should be read in conjunction with the annual financial statements for the year ended December 31, 2022[101][102] - The company's financial statements are presented in thousands of US dollars (USD)[101] - Contract assets increased to $51.365 million as of June 30, 2023, compared to $47.718 million as of December 31, 2022[114] - Contract liabilities decreased to $97.041 million as of June 30, 2023, from $104.613 million as of December 31, 2022[114] - Deferred income is recognized over project cycles typically ranging from four to seven years, related to prepayments for engineering, modeling, and pre-production activities[159] - Deferred revenue decreased to $122,402,000 as of June 30, 2023, compared to $128,853,000 at the end of 2022, with additions of $15,412,000 and recognized losses of $21,065,000 during the period[161] Employee and Compensation - The company employs approximately 13,000 full-time employees and 1,600 contract workers as of June 30, 2023[65] - The company's compensation policy is performance-based and includes various employee benefit plans, such as retirement benefits and incentive programs[65] - Total compensation for the CEO, directors, and key management personnel for the six months ended June 30, 2023, was $5.249 million, up from $2.204 million in the same period in 2022[189] - The company did not recommend any interim dividend for the six months ended June 30, 2023[71] - No shares were purchased, sold, or redeemed by the company or its subsidiaries during the six months ended June 30, 2023[72] - The number of stock options available for grant under the stock option plan remained unchanged at 166,636,790 as of January 1, 2023, and June 30, 2023[72] - No stock options were vested under the stock option plan during the six months ended June 30, 2023[72] - The total number of shares that could be issued under the stock option plan as of June 30, 2023, is 12,410,160, representing approximately 0.494% of the weighted average number of issued shares[76] - The total number of stock options granted as of June 30, 2023, is 83,143,610, with 14,341,510 options held and 1,931,350 options exercised[74] - The total number of shares held by directors and key executives through stock options is 5,530,650, representing approximately 0.22% of the total issued shares[74][79] - The exercise price for stock options granted on October 25, 2022, is HKD 4.268, with a market price of HKD 4.140 on the grant date[74] - The total number of shares held by directors and key executives as of June 30, 2023, is 5,530,650, with individual holdings ranging from 351,150 to 2,809,230 shares[74][78] - The total number of shares held by other grant recipients as of June 30, 2023, is 8,810,860, with 1,931,350 options exercised and 6,879,510 options held[74] - The total number of shares held by major shareholders (excluding directors and key executives) as of June 30, 2023, is not disclosed, but their interests are recorded in the register maintained under the Securities and Futures Ordinance[82] - The total number of shares held by directors and key executives through stock options as of June 30, 2023, is 5,530,650, representing approximately 0.22% of the total issued shares[74][79] - The total number of shares held by directors and key executives as of June 30, 2023, is 5,530,650, with individual holdings ranging from 351,150 to 2,809,230 shares[74][78] - The total

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告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 表 明 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Nexteer Automotive Group Limited 耐世特汽車系統集團有限公司 （根 據 開 曼 群 島 法 例 註 冊 成 立 的 有 限 公 司） （股 份 代 號：1316） 截 至2023年6月30日止六個月 中期業績公告 耐世特汽車系統集團有限公司（本公司）董事會（董事會）謹此宣佈本公司及其附 屬公司（統 稱 我 們、我們的 或 本集團）截 至2023年6月30日止六個月的未經審核中 期 簡 明 合 併 業 績，連 同 上 一 個 期 間 的 比 較 數 字 如 下： – 1 – 簡明合併中期利潤表 截 至2023年6月30日止六個月 | --- | --- | --- | --- | |----------------------------------------- ...

IBER H. 幸反 NEXTEER AUTOMOTIVE GROUP LIMITED 耐世特汽車系統集團有限公司 股份代號: 1316 根據開曼群島法例註冊成立的有限公司 隨心操控的領導者 | --- | --- | --- | --- | |-------|-------|-------|---------------------------------------------| | | | | | | | | | | | | | | | | | | | 持續盈利 增長戰略 | | | | | 擴展並多元化 | | | | | 收入基础 強化 科技領先地位 利用EPS 推動ADAS | | | | | 優化 成本結構 | | | | | 有選擇地尋求 收購和聯盟 | | | | | 瞄准中國和 新興市場的增長 | 目 錄 2 4 5 6 8 13 27 28 40 48 66 82 86 88 89 90 91 92 162 | --- | --- | |-----------------------------------------------|-------| | | | | 公司簡介 ……… | ...

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告的內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 表 明 概 不 就 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 的 任 何 損 失 承 擔 任 何 責 任。 Nexteer Automotive Group Limited 耐世特汽車系統集團有限公司 （根據開曼群島法例註冊成立的有限公司） （股 份 代 號：1316） 截 至2022年12月31日止年度 全年業績公告 耐世特汽車系統集團有限公司（本公司）董事會（董事會）謹此宣佈本公司及其附 屬公司（統 稱 我 們、我們的 或 本集團）截 至2022年12月31日止年度的經審核合併 業 績，連 同2021年 的 比 較 數 字 如 下： – 1 – 合併利潤表 截 至2022年12月31日止年度 | --- | --- | --- | --- | |---------------------------------------------------------------------------- ...