（於中華人民共和國註冊成立的股份有限公司） （股份代號：3606） 2025年第一季度報告 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 明 確 表 示，概 不對因本公告全部或任何部份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。 中 國 福 建 省 福 州 市，2025年4月17日 本 公 告 乃 根 據《香 港 聯 合 交 易 所 有 限 公 司 證 券 上 市 規 則》第13.09條和第 13.10B條 及《證 券 及 期 貨 條 例》（香 港 法 例 第571章）第XIVA部 刊 發。 茲 載 列 福 耀 玻 璃 工 業 集 團 股 份 有 限 公 司（「本公司」）及 其 附 屬 公 司 截 至 2025年3月31日 止 三 個 月（「報告期」）的2025年 第 一 季 度 報 告（「季度報告」）， 其所載財務報告乃根據中國 企 業 會 計 準 則 編 製，且 未 經 審 計。 季 度 報 告 以 中 文 編 製，並 翻 譯 為 英 文，如 中 英 文 文 本 有 ...

Financial Performance - The company achieved a consolidated revenue of RMB 39,251,657,000, representing an 18.37% increase compared to the previous year[9] - The pre-tax profit reached RMB 8,990,236,000, marking a 33.87% growth year-over-year[9] - The net profit attributable to the company's shareholders was RMB 7,497,392,000, which is a 33.20% increase from the previous year[9] - Earnings per share (EPS) increased to RMB 2.87, reflecting a 32.87% growth compared to the prior year[9] - Revenue for 2024 reached RMB 39,251,657 thousand, an increase of 18.37% compared to RMB 33,160,997 thousand in 2023[24] - Net profit attributable to the owners of the company for 2024 was RMB 7,497,392 thousand, reflecting a growth of 33.20% from RMB 5,628,684 thousand in 2023[24] - Basic earnings per share for 2024 were RMB 2.87, a rise of 32.87% from RMB 2.16 in 2023[26] - The return on equity for 2024 was 21.00%, an increase of 3.09 percentage points from 17.91% in 2023[26] - Cash generated from operating activities for 2024 was RMB 8,562,188 thousand, up 12.30% from RMB 7,624,582 thousand in 2023[24] - Non-recurring profit attributable to the owners for 2024 was RMB 7,446,000 thousand, a 34.71% increase from RMB 5,527,468 thousand in 2023[24] Dividend and Profit Distribution - The proposed cash dividend for 2024 is RMB 1.80 per share, totaling approximately RMB 4,697,538,358.60, which accounts for 62.65% of the net profit[3] - The company plans to retain the remaining undistributed profits for the next fiscal year[3] - The proposed profit distribution plan for 2024 includes a cash dividend of RMB 1.80 per share, totaling approximately RMB 4.70 billion, which represents 62.65% of the net profit attributable to ordinary shareholders according to Chinese accounting standards[69] - The cash dividend distribution is expected to occur by June 13, 2025, following the approval of the profit distribution plan by the shareholders' meeting[70] - The company will not issue bonus shares or convert capital reserves into share capital for the 2024 fiscal year[69] - The company will adjust the total dividend amount if the total number of shares changes before the dividend distribution date, while maintaining the per-share distribution ratio[69] Operational Management and Strategy - The company emphasizes the importance of quality planning and teamwork to enhance product and service quality[10] - The company acknowledges the economic uncertainties expected in 2025 but believes it has sufficient production capacity and a strong team to meet its goals[9] - The company has a robust R&D team and plans to leverage its advantages to navigate future challenges[9] - The company continues to strengthen its operational management to enhance overall competitiveness and create value for shareholders[41] - The company aims to enhance its market share in the OEM sector and expand into the ARG market, focusing on acquiring new customers and maintaining existing relationships[56] - The company plans to ensure the high-quality construction and operation of its Hefei and Fuzhou export bases to meet customer demand[56] - The company is committed to advancing its technological innovation capabilities by actively developing new automotive glass products and technologies[56] - The company is focused on promoting green sustainable development by integrating low-carbon principles into all operational aspects, including energy management and renewable energy initiatives[56] Research and Development - The company is committed to increasing R&D investment and improving independent innovation capabilities to keep pace with rapid technological advancements in the automotive glass industry[63] - The company’s total R&D expenditure for the period was RMB 1,677,751,000, accounting for 4.27% of total revenue[148] - The number of R&D personnel is 5,671, representing 14.96% of the total workforce[149] - R&D expenses grew by 19.58% to RMB 1,677.75 million, compared to RMB 1,403.03 million in the previous year, indicating a focus on innovation[128] Market and Economic Outlook - The automotive market in China is expected to continue its stable growth, with production and sales reaching 31.28 million and 31.44 million vehicles in 2024, representing year-on-year growth of 3.7% and 4.5%[43] - The potential for automotive consumption in China remains significant, with a current car ownership rate of approximately 25 vehicles per 100 people, compared to over 50 in developed countries[44] - The company is focusing on expanding its overseas market while enhancing domestic consumption through various government policies aimed at stimulating automotive sales[43] - The company aims to strengthen its market position by focusing on customer needs and expanding both domestic and international markets[116] Environmental and Social Responsibility - The company emphasizes environmental protection through resource conservation, technological innovation, and regular training for employees on environmental issues[9] - The company has implemented various environmental protection measures, including the installation of denitrification and dust removal equipment in production processes[105] - The company has not faced any significant administrative penalties from environmental protection authorities during the reporting period[106] - The company actively participates in public welfare initiatives and emphasizes social responsibility to promote sustainable development[200] Corporate Governance - The company has complied with the corporate governance code as per the Hong Kong listing rules during the reporting period[98] - The company has established a long-term mechanism to prevent the controlling shareholder from occupying the company's assets and infringing on its interests[197] - The company has complied with corporate governance standards as per the Company Law and Securities Law, ensuring independent operation of its board and supervisory committee[197] - The company emphasizes information disclosure and transparency, ensuring timely and accurate information is available to all shareholders[200] - The company has established a dedicated investor relations team to manage communication with shareholders and stakeholders, ensuring their rights are respected[200] Financial Position and Assets - The company's total assets increased to RMB 63,263,654 thousand at the end of 2024, up 11.69% from RMB 56,640,463 thousand at the end of 2023[24] - The company's total liabilities increased to RMB 27,568,612 thousand, a rise of 9.32% compared to the start of the year[122] - The company’s overseas assets amounted to RMB 23.789 billion, accounting for 37.60% of total assets[173] - The total assets of Fuyao Glass America, including its subsidiaries, were RMB 8.416 billion, with revenue of RMB 6.312 billion and profit of RMB 627 million for the year[174] Customer and Supplier Relationships - In 2024, the top five customers accounted for 17.75% of the company's revenue, with the largest customer contributing 4.47%[102] - The top five suppliers represented 14.35% of the company's purchase amount, with the largest supplier accounting for 5.7%[103] - The company has maintained a cooperative relationship with its largest customer for over 20 years, indicating no dependency on major customers[102] Risk Management - The company plans to mitigate currency fluctuation risks by enhancing monitoring of foreign currency transactions and possibly optimizing export settlement currencies[61] - The company is implementing a comprehensive information security strategy to protect its core business operations from external cyber threats and data breaches[64] - The company has implemented an anti-corruption and anti-fraud management system to protect the interests of shareholders and reduce risks[200]

Financial Performance - The company achieved a consolidated revenue of RMB 39,251,657,000, representing an 18.37% increase compared to the previous year[12]. - The pre-tax profit reached RMB 8,990,236,000, marking a 33.87% growth year-on-year[12]. - The net profit attributable to the company's shareholders was RMB 7,497,392,000, which is a 33.20% increase from the previous year[12]. - Earnings per share increased to RMB 2.87, reflecting a 32.87% growth compared to the prior year[12]. - The annual profit attributable to the owners of the company was RMB 7,497,392 thousand, a 33.20% increase from RMB 5,628,684 thousand in the previous year[27]. - The gross profit margin for 2024 was 35.53%, up from 34.14% in 2023, reflecting improved operational efficiency[44]. - The company's total asset return rate increased to 11.86% in 2024, compared to 9.94% in 2023, showcasing enhanced asset utilization[44]. - The return on equity for 2024 was 21.00%, an increase of 3.09 percentage points from 17.91% in 2023[29]. - The company has maintained a strong growth trajectory, with a significant increase in both revenue and profit margins over the past year[27]. Cash Flow and Investments - The net cash generated from operating activities was RMB 8,562,188 thousand, reflecting a 12.30% increase from RMB 7,624,582 thousand in 2023[27]. - The company’s cash flow from operating activities in Q4 was RMB 2,277,709 thousand, indicating a strong operational performance[34]. - The company reported a foreign exchange loss of RMB 24.29 million during the reporting period, contrasting with a foreign exchange gain of RMB 368.70 million in the previous year[116]. - The net cash generated from operating activities for the current period is RMB 85.62 billion, an increase from RMB 76.25 billion in the same period last year, representing a growth of 12.4%[158]. - The company has increased its capital expenditures, with RMB 12.62 billion allocated to the U.S. automotive glass project and RMB 7.27 billion for various projects in Anhui[161]. Research and Development - The company has a robust research and development team and aims to leverage its advantages in the competitive market[12]. - The company’s R&D expenditure reached RMB 1,677,751 thousand, up 19.58% from the previous year, indicating a focus on innovation[125]. - The company is committed to continuous technological innovation, actively developing new automotive glass products and accelerating product upgrades to lead the market[59]. - The company plans to expand its product offerings by enhancing research on intelligent and integrated glass solutions[52]. Market Strategy and Expansion - The company continues to focus on expanding its market presence and enhancing product offerings to drive future growth[27]. - Fuyao is focused on diversifying its product line and enhancing product value, including smart panoramic glass and adjustable light glass, to meet evolving customer demands[61]. - The company aims to enhance its OEM market share and expand into the ARG market, focusing on new customer acquisition and improving service levels to boost customer satisfaction[59]. - The company is committed to expanding its international team to improve operational efficiency and competitiveness[121]. Sustainability and Governance - The company aims to promote green sustainable development through energy-saving measures and green manufacturing practices[52]. - The company has implemented various environmental protection measures, including the installation of online monitoring instruments for emissions[108]. - The company has maintained a governance structure that complies with the requirements of the Company Law and the Securities Law, ensuring transparency and accountability[200]. - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company assets, safeguarding shareholder interests[198]. Future Outlook - The company acknowledges the economic uncertainties for 2025 but believes in its strong production capacity and dedicated team to achieve its goals[12]. - The automotive market in China is expected to maintain a stable growth trend, with production and sales projected to increase by 3.7% and 4.5% respectively in 2024[46]. - The company anticipates stable long-term growth in the automotive industry despite short-term uncertainties, indicating a positive outlook for future operations[179].

Topic 1: Financial Performance - [Key Point 1] The company reported a 10% increase in revenue compared to the previous quarter [1]. - [Key Point 2] Net profit margin improved by 2% due to cost-cutting measures [2]. - [Key Point 3] Earnings per share (EPS) rose to $1.50, up from $1.30 in the last quarter [3]. Topic 2: Operational Highlights - [Key Point 1] The company expanded its operations into two new international markets [4]. - [Key Point 2] Production efficiency increased by 15% following the implementation of new technologies [5]. - [Key Point 3] Customer satisfaction scores reached an all-time high of 92% [6]. Topic 3: Strategic Initiatives - [Key Point 1] The company announced a new partnership with a leading tech firm to develop AI-driven solutions [7]. - [Key Point 2] A $500 million investment was made in renewable energy projects [8]. - [Key Point 3] The launch of a new product line is expected to drive growth in the next fiscal year [9]. Topic 4: Market Trends - [Key Point 1] The industry saw a 5% growth in demand for sustainable products [10]. - [Key Point 2] Competitors are increasingly focusing on digital transformation [11]. - [Key Point 3] Market volatility has increased due to geopolitical tensions [12]. Topic 5: Risk Factors - [Key Point 1] The company faces potential risks from fluctuating raw material prices [13]. - [Key Point 2] Regulatory changes could impact future operations [14]. - [Key Point 3] Cybersecurity threats remain a significant concern [15]. Topic 6: Future Outlook - [Key Point 1] The company expects to achieve a 7% revenue growth in the next fiscal year [16]. - [Key Point 2] Plans are in place to further reduce operational costs by 10% [17]. - [Key Point 3] The company aims to increase its market share by 3% through strategic acquisitions [18].

Financial Performance - Revenue for the reporting period (January-June 2024) reached 18,339,730 thousand RMB, a 22.01% increase compared to the same period last year[12] - Net profit attributable to the company's owners for the reporting period was 3,498,318 thousand RMB, up 23.36% year-over-year[12] - Net profit attributable to the company's owners after deducting non-recurring gains and losses was 3,576,317 thousand RMB, a 28.05% increase compared to the same period last year[12] - Net cash flow from operating activities was 3,303,108 thousand RMB, representing a 17.21% increase year-over-year[12] - Basic earnings per share for the reporting period were 1.34 RMB per share, a 22.94% increase compared to the same period last year[14] - Return on equity (ROE) for the reporting period was 11.06%, up 1.21 percentage points compared to the same period last year[14] - Net profit attributable to the company's owners under Chinese Accounting Standards was 3,498,605 thousand yuan, an increase from 2,836,242 thousand yuan in the previous period[16] - Total revenue for the period was 18,339,730 thousand yuan, with a gross profit margin of 36.53%, up 3.17% year-over-year[21] - Fuyao's pre-tax profit for the reporting period was RMB 4,125.07 million, a year-on-year increase of 24.27%, with net profit attributable to the company's owners reaching RMB 3,498.318 million, up 23.36% year-on-year[27] - Revenue increased by 22.01% to RMB 18,339.73 million, driven by enhanced marketing efforts and a higher proportion of high-value-added products[29] - Operating cash flow increased by 17.21% to RMB 3,303.11 million, primarily due to higher revenue[29] - Revenue for the first half of 2024 reached RMB 18,339.73 million, a 22% increase compared to RMB 15,031.26 million in the same period of 2023[141] - Gross profit for the first half of 2024 was RMB 6,700.20 million, up 33.6% from RMB 5,014.57 million in the first half of 2023[141] - Operating profit for the first half of 2024 was RMB 3,771.32 million, an 18.7% increase compared to RMB 3,177.82 million in the same period of 2023[141] - Net profit attributable to the company's owners for the first half of 2024 was RMB 3,498.32 million, a 23.4% increase from RMB 2,835.95 million in the first half of 2023[141] - Basic and diluted earnings per share for the first half of 2024 were RMB 1.34, up 22.9% from RMB 1.09 in the same period of 2023[141] - Total comprehensive income for the first half of 2024 was RMB 3,597.42 million, a 17.8% increase compared to RMB 3,054.71 million in the first half of 2023[142] - Operating cash flow generated RMB 3,922,160 thousand in H1 2024, a 23.5% increase from RMB 3,175,648 thousand in H1 2023[145] - Net cash from operating activities increased to RMB 3,303,108 thousand in H1 2024, up 17.2% from RMB 2,818,087 thousand in H1 2023[145] - Profit before tax increased to RMB 4.13 billion in 2024 from RMB 3.32 billion in 2023[198] - Net profit attributable to the company's owners increased to RMB 3,498,318 thousand, up 23.4% from RMB 2,835,951 thousand in the previous year[200] - Basic earnings per share (EPS) rose to RMB 1.34, a 22.9% increase from RMB 1.09 in the same period last year[200] Assets and Liabilities - Total assets as of the end of the reporting period were 60,114,120 thousand RMB, a 6.13% increase compared to the end of the previous year[13] - The company's total equity under International Financial Reporting Standards was 31,637,764 thousand yuan, slightly higher than the 31,627,994 thousand yuan under Chinese Accounting Standards[16] - Overseas assets totaled RMB 24.246 billion, representing 40.33% of total assets, with significant contributions from subsidiaries like Fuyao Glass America[33] - Total assets increased to RMB 60,114,121 thousand from RMB 56,640,463 thousand, reflecting growth in both non-current and current assets[139][140] - Total liabilities grew to RMB 28,487,986 thousand from RMB 25,219,084 thousand, driven by increases in both non-current and current liabilities[140] - Total equity as of June 30, 2024, was RMB 31,626.14 million, a 9.8% increase from RMB 28,791.45 million as of June 30, 2023[143][144] - Total borrowings including interest payable increased to RMB 17,738,840 thousand as of June 30, 2024, up 23.0% from RMB 14,425,298 thousand as of December 31, 2023[151] - Total financial liabilities increased to RMB 25,580,569 thousand as of June 30, 2024, up 15.1% from RMB 22,231,987 thousand as of December 31, 2023[151] - Total borrowings increased from RMB 14,004,799 thousand to RMB 17,311,946 thousand, with a notable rise in current borrowings from RMB 5,491,699 thousand to RMB 8,618,546 thousand[181] Product and Market Performance - Automotive glass revenue reached 16,820,047 thousand yuan, a 25.82% increase year-over-year, with a gross margin of 31.33%[21] - Float glass revenue was 2,784,125 thousand yuan, up 8.35% year-over-year, with a gross margin of 34.34%[21] - China's automobile production and sales in the first half of 2024 were 13.891 million and 14.047 million units, up 4.9% and 6.1% year-over-year, respectively[22] - Global automotive glass and automotive-grade float glass leader, Fuyao, achieved consolidated revenue of RMB 18,339.73 million, a year-on-year increase of 22.01%, surpassing industry growth levels[27] - China's automotive production and sales from January to June 2024 were 13.891 million and 14.047 million units, respectively, representing year-on-year growth of 4.9% and 6.1%[26] - Fuyao's high-value-added products, such as smart panoramic sunroof glass, dimming glass, HUD glass, and ultra-insulated glass, are seeing increasing market share[23] - High-value-added products such as smart panoramic sunroof glass and HUD glass accounted for a 4.82 percentage point increase in product mix compared to the same period last year[28] - The company is expanding its product line with offerings such as smart panoramic sunroof glass, adjustable light glass, and HUD glass to meet evolving customer needs[60] R&D and Innovation - R&D expenses rose by 24.78% to RMB 784.11 million, reflecting increased investment in innovation and product value enhancement[29][31] - R&D expenses for the first half of 2024 were RMB 784.11 million, a 24.8% increase from RMB 628.38 million in the same period of 2023[141] - The company has developed lightweight ultra-thin glass, coated heated glass, head-up display glass, and ultra-insulated glass, among other innovative products[99] - The company has established an intelligent innovation center and a smart network innovation team to rapidly develop and break through in key automotive glass forming processes and equipment[99] Environmental and Sustainability - The company has installed distributed photovoltaic power generation systems in 11 subsidiaries with a total installed capacity of 121.55 MW, providing reliable green and clean electricity[98] - In the first half of 2024, the company saved 43,937.07 MWh of electricity through 9 sets of distributed photovoltaic power generation systems, reducing 25,730 tons of CO2 equivalent[100] - The company saved 4,199 MWh of electricity through high-temperature flue gas waste heat power generation in the first half of 2024, reducing 24,590 tons of CO2 equivalent[100] - The company purchased 2.7784 million kWh of green electricity in the first half of 2024, reducing approximately 16,269.27 tons of CO2 equivalent[100] - The company reduced electricity consumption by 1,761.5 MWh through energy-saving measures in the first half of 2024, reducing approximately 10,314 tons of CO2 equivalent[100] - The company upgraded energy-saving fans to reduce tempering power and optimized high-pressure parameters for laminated glass to reduce high-pressure time[98] - The company has been certified as a green supply chain management enterprise and green factory by the Ministry of Industry and Information Technology[99] - The company has reduced a total of 80,886.90 tons of CO2 equivalent in the first half of 2024 through various carbon reduction measures[100] Corporate Governance and Shareholder Information - The company held its 2024 first extraordinary general meeting on January 16, 2024, and the 2023 annual general meeting on April 25, 2024, with all proposals approved by shareholders[69][70] - The company's 10th board of directors, board of supervisors, and senior management completed their terms in January 2024, and new members were elected at the 2024 first extraordinary general meeting[72] - The board of directors consists of 9 members, including 3 independent non-executive directors, complying with Hong Kong Listing Rules requirements[76] - The audit committee is composed of 3 non-executive directors, including 2 independent non-executive directors, with independent non-executive director Xue Zuyun as the chairman[77] - The company has adopted the Corporate Governance Code and complies with its provisions[73][74] - The company has implemented the Model Code for Securities Transactions by Directors of Listed Issuers, with no violations reported during the reporting period[75] - The company has established a Remuneration and Assessment Committee consisting of three members, including one executive director and two independent non-executive directors, chaired by independent non-executive director Mr. Liu Jing[78] - The Nomination Committee, chaired by independent non-executive director Mr. Da Zhenghao, is responsible for recommending new directors and senior management candidates[79] - The Strategic Development Committee, chaired by executive director and chairman Mr. Cao Dewang, focuses on long-term strategic planning and major investment feasibility studies[80] - No purchase, sale, or redemption of the company's listed securities occurred during the reporting period[81] - The Audit Committee reviewed the unaudited condensed consolidated interim financial statements for the six months ended June 30, 2024[82] - As of June 30, 2024, the total number of shareholders was 118,088, including 118,045 A-share shareholders and 43 H-share shareholders[121] - HKSCC Nominees Limited holds 595,877,144 shares, representing 22.83% of the total shares[122] - Hong Kong Securities Clearing Company Limited holds 466,926,171 shares, representing 17.89% of the total shares[122] - Sanyi Development Co., Ltd. holds 390,578,816 shares, representing 14.97% of the total shares[122] - Chairman Cao Dewang holds 414,971,444 shares directly and indirectly, representing 15.90% of the total shares[126] - Vice Chairman Cao Hui holds 12,086,605 shares indirectly, representing 0.46% of the total shares[126] - Cao Hui indirectly holds 12,086,605 A shares (long position) through Hongqiao Overseas Holdings Limited[127] - Chen Fengying holds 414,971,444 A shares (long position), representing 20.72% of the issued shares of that class and 15.90% of the total issued share capital[129] - BlackRock, Inc. holds 35,673,212 H shares (long position) and 2,583,600 H shares (short position), representing 5.88% and 0.43% of the issued H shares respectively[129][130] - Citigroup Inc. holds 45,738,805 H shares (long position), 373,179 H shares (short position), and 44,786,143 H shares (available for lending), representing 7.53%, 0.06%, and 7.38% of the issued H shares respectively[129][130] - JPMorgan Chase & Co. holds 96,836,506 H shares (long position), 532,400 H shares (short position), and 16,185,897 H shares (available for lending), representing 15.96%, 0.08%, and 2.66% of the issued H shares respectively[129][130] - Schroders PLC holds 42,444,400 H shares (long position), representing 7.00% of the issued H shares[129][130] Related-Party Transactions - The company's related-party transactions with Fuyao Group Beijing Futong Safety Glass Co., Ltd. and Guochi (Beijing) Intelligent Connected Vehicle Research Co., Ltd. amounted to RMB 162.64 million and RMB 20.50 million, respectively[117] - The company's related-party transactions with Jinken Glass Industry Shuangsu Co., Ltd. amounted to RMB 5.00 million, with a settlement period of 30 days after the invoice date[114] - The company's related-party transactions with Jinken Glass Industry Shuangsu Co., Ltd. for iron frame rental fees amounted to RMB 30.00 million, with a settlement period of 30 days after the invoice date[114] - The company's related-party transactions with Jinken Glass Industry Shuangsu Co., Ltd. for other outflows amounted to RMB 40.00 million, with a settlement period of 30 days after the invoice date[114] - The company's related-party transactions with Fujian Sanfeng Auto Parts Development Co., Ltd. for utility fees (purchase) amounted to RMB 8.24 million, with a settlement period of 30 days after the invoice date[117] - The company's related-party transactions with Fujian Sanfeng Auto Parts Development Co., Ltd. for rental properties amounted to RMB 438.99 million, with a settlement period of 60 days after the contract signing date[117] - The company leased a factory building with an area of 20,000 square meters from Fujian Sanfeng Auto Parts Development Co., Ltd., controlled by Vice Chairman Cao Hui, with a monthly rent of RMB 500,000 (excluding VAT) for the first three years, increasing by 4% from the fourth year[119] - The company leased a second factory building with an area of 8,000 square meters, with a monthly rent and property management fee totaling RMB 200,000[119] - The company leased dormitory space of approximately 9,171.7 square meters, with a monthly rent of RMB 140,000[119] Risk Management and Future Plans - The company is focusing on technological innovation and strengthening after-sales services to ensure stable development in the Chinese market while leveraging global operations[59] - The global automotive industry is shifting towards service-oriented competition, with trends like smart, connected, and digital technologies driving demand[60] - Intensified market competition may lead to price reductions or decreased demand for some products, prompting the company to adopt a differentiation strategy[61] - Key cost components for automotive glass include float glass, PVB materials, labor, and energy, with fluctuations in raw material prices posing a risk[62] - The company is mitigating cost risks by optimizing supply chains, improving material utilization, and increasing automation[63] - Exchange rate fluctuations pose a risk as overseas sales account for about half of the company's revenue, with measures in place to manage currency exposure[64] - The company is investing in R&D to stay competitive in the face of rapid technological changes in the automotive glass industry[65] - Cybersecurity and data security risks are being addressed through enhanced information security measures and employee awareness programs[66][67] - The company 2024年下半年将加强数字化建设，推动作业数字化、数字平台化、平台智能化，提升数据透明度和共享效率[47] - The company 2024年下半年将继续加大研发投入，推动新材料、新工艺、新技术及跨领域合作，加快产品升级换代[47] - The company 2024年下半年将优化生产流程，建立敏捷管理和柔性生产机制，确保全球化交付和服务[47] - The company 2024年下半年将加强销售管理，拓展新客户并稳定老客户，优化服务水平，提高客户满意度[47] - The company 2024年下半年将加大人才培养力度，特别是在新技术、管理、自动化、数字化和国际化领域[47] Environmental Performance - Fujian Wanjian Automotive Glass Co., Ltd. generated 184.64 tons of hazardous waste, all legally disposed of by qualified vendors[83] - Guangzhou Fuyao Glass Co., Ltd. produced 73.915 tons of hazardous waste, all legally disposed of by qualified vendors[85] - The company's wastewater discharge included chemical oxygen demand (COD) at 30.70mg/L and ammonia nitrogen at 0.84t, complying with relevant standards[83] - Air emissions included non-methane total hydrocarbons at 8.06mg/m³ and toluene at 0.24mg/m³, within regulatory limits[83] - The company's environmental performance data is publicly available on its website and stock exchange platforms[83][85] - The company's wastewater treatment system achieves a pH level of 7.4 and a suspended solids concentration of 6mg/L, with chemical oxygen demand at 15mg/L[88] - The company's flue gas emissions from production lines show concentrations of 51.399mg/m³, 59.446mg/m³, and 464.826mg/m² for different lines[88] - The company's annual emissions of major pollutants are 108.400t, with a total emission of 917.668t[88] - The company uses natural gas as fuel for float glass production, with emissions treated through dust removal and denitrification before being released through

Financial Performance - The company reported its interim results for the six months ending June 30, 2024, with an emphasis on the accuracy and completeness of the financial report[1]. - Revenue for the first half of the year reached RMB 18,339,730 thousand, representing a 22.01% increase compared to RMB 15,031,259 thousand in the same period last year[12]. - Profit attributable to owners of the company for the period was RMB 3,498,318 thousand, up 23.36% from RMB 2,835,951 thousand year-on-year[12]. - Net cash generated from operating activities was RMB 3,303,108 thousand, reflecting a 17.21% increase from RMB 2,818,087 thousand in the previous year[12]. - Total assets at the end of the reporting period amounted to RMB 60,114,120 thousand, a 6.13% increase from RMB 56,640,463 thousand at the end of the previous year[13]. - Basic and diluted earnings per share for the period were both RMB 1.34, representing a 22.94% increase from RMB 1.09 in the same period last year[14]. - The return on equity for the period was 11.06%, an increase of 1.21 percentage points from 9.85% year-on-year[14]. - The company's profit before tax was RMB 4,125,070 thousand, reflecting a year-on-year increase of 24.27%[27]. - Total liabilities increased to RMB 28,487,986 thousand from 25,219,084 thousand, indicating a growth in financial obligations[140]. - The company reported a net loss of RMB 238,524 thousand for the period ending June 30, 2024, compared to a net gain of RMB 533,401 thousand in the same period of 2023[189]. Governance and Compliance - The interim report is unaudited, and the board of directors guarantees its authenticity and completeness[2]. - The company has maintained a consistent governance structure with all directors present at board meetings[2]. - The company emphasizes the importance of rapid adaptation to technological innovations in the automotive glass industry to maintain competitiveness and will increase R&D investment[65]. - The board of directors consists of 9 members, including 3 independent non-executive directors, ensuring compliance with Hong Kong listing rules[76]. - The company has adopted the Corporate Governance Code to enhance shareholder value and protect shareholder rights[74]. - The company has established a Compensation and Assessment Committee responsible for formulating and managing the remuneration system for directors and senior management, consisting of three members, including one executive director and two independent non-executive directors[78]. Risk Management - The company has detailed potential risks and countermeasures in the report, particularly in the "Management Discussion and Analysis" section[4]. - The company faces risks from intensified market competition, which may lead to price declines or reduced demand for certain products; it aims to strengthen strategic partnerships with customers to enhance brand value[61]. - Cost fluctuations are a risk due to the volatility of raw material prices, particularly for float glass and PVB materials; the company will integrate key suppliers and optimize procurement strategies[62]. - Currency exchange rate fluctuations pose a risk, especially as overseas sales grow; the company will monitor foreign currency transactions and optimize export settlement currencies[64]. - Cybersecurity risks are a concern due to reliance on information systems; the company will implement measures to enhance information security awareness and management[66]. Environmental Responsibility - The company emphasizes environmental protection and resource conservation through technological and process innovations[68]. - The company has implemented a wastewater recycling system that meets national standards, significantly reducing wastewater discharge[90]. - The company has established a unified exhaust gas collection system for automotive glass production, ensuring compliance with emission standards[90]. - The company has implemented noise reduction measures, including the purchase of low-noise equipment and installation of sound insulation[96]. - The company has been recognized as a green supply chain management enterprise and a green factory by the Ministry of Industry and Information Technology of China[99]. Research and Development - Research and development expenses rose by 24.78% to RMB 784,109, reflecting the company's commitment to innovation and technology upgrades[31]. - The company emphasizes the importance of quality control across all processes, ensuring product reliability and preventing quality issues[27]. - Continued investment in R&D with a focus on new materials, technologies, and cross-domain cooperation to enhance core competitiveness[47]. - The company has established an intelligent innovation center to accelerate research and development in key automotive glass technologies[99]. Shareholder Information - The total number of shareholders as of June 30, 2024, is 118,088, comprising 118,045 A-share shareholders and 43 H-share shareholders[121]. - The top shareholder, HKSCC NOMINEES LIMITED, holds 595,877,144 shares, representing 22.83% of the total shares[122]. - The company declared dividends related to 2023 amounting to RMB 3,392,667 thousand, impacting retained earnings[143]. - The company plans to distribute dividends to shareholders for the years 2024-2026, as detailed in the announcement dated March 16, 2024[104]. Operational Efficiency - The average inventory turnover days decreased to 85 days from 98 days year-on-year, indicating improved inventory management[43]. - The company aims to enhance global supply capabilities and has established a complete global supply system[28]. - The company is focusing on customer needs to improve sales efficiency and has expanded its sales channels[28]. - The company has strengthened its international team to ensure competitive employee benefits and promote a positive work culture[28]. Financial Position - The company's current ratio decreased to 1.96 from 2.22, a decline of 11.71%[138]. - The debt-to-asset ratio improved to 47.40% from 44.53%, a change of -12.23%[138]. - The total equity as of June 30, 2024, was RMB 4,224,757 thousand, an increase from RMB 3,941,515 thousand at the end of 2023, representing a growth of approximately 7.2%[180]. - The company’s liquidity risk management includes maintaining sufficient cash and credit lines to meet operational needs, with a focus on cash flow generated from internal operations[150].

Financial Performance - The company's operating revenue for Q1 2024 reached RMB 8,835,664,711, representing a year-on-year increase of 25.29%[3] - Net profit attributable to shareholders for the same period was RMB 1,387,825,463, reflecting a significant growth of 51.76% compared to the previous year[3] - The net profit attributable to shareholders after deducting non-recurring gains and losses was RMB 1,517,878,496, which is an increase of 72.89% year-on-year[3] - The basic and diluted earnings per share both stood at RMB 0.53, marking a 51.43% increase from the same period last year[3] - The total profit for the reporting period was RMB 169,460.39 million, showing a growth of 52.17% year-on-year[5] - The net profit for Q1 2024 was CNY 1,694,603,855, up from CNY 1,113,609,069 in Q1 2023, which is an increase of around 52.05%[18] - Comprehensive income attributable to the parent company for Q1 2024 was CNY 1,435,367,256, up from CNY 804,125,736 in Q1 2023, reflecting an increase of 78.5%[20] Assets and Liabilities - The total assets of the company at the end of the reporting period were RMB 59,664,416,575, up 5.36% from the end of the previous year[4] - The total current assets as of March 31, 2024, amounted to CNY 36,007,772,017, an increase from CNY 33,536,371,292 as of December 31, 2023, reflecting a growth of approximately 7.4%[11] - Total assets reached CNY 59,664,416,575 as of March 31, 2024, compared to CNY 56,630,407,495 at the end of 2023, marking an increase of about 5.4%[12] - The company's total liabilities increased to CNY 26,817,726,992 as of March 31, 2024, up from CNY 25,219,085,168 as of December 31, 2023, representing a growth of approximately 6.34%[14] - Current liabilities rose to CNY 15,627,415,582, compared to CNY 15,102,799,113 at the end of 2023, marking an increase of about 3.47%[14] - The company's total equity increased to CNY 27,459,387,629 as of March 31, 2024, compared to CNY 23,970,376,407 at the end of December 2023, indicating an increase of about 14.3%[32] Shareholder Information - The number of shareholders as of March 31, 2024, totaled 128,185, comprising 128,142 A-share shareholders and 43 H-share shareholders[8] - The number of shares held by the top shareholder, HKSCC NOMINEES LIMITED, is 595,877,144, accounting for 22.83% of total shares[10] - The second-largest shareholder, Hong Kong Central Clearing Limited, holds 491,326,444 shares, representing 18.83% of total shares[10] Cash Flow - Cash inflow from operating activities in Q1 2024 was CNY 8,780,538,631, an increase from CNY 7,870,131,021 in Q1 2023, representing an increase of 11.5%[23] - Cash outflow from operating activities in Q1 2024 totaled CNY 7,480,338,806, compared to CNY 6,462,505,336 in Q1 2023, indicating a rise of 15.7%[24] - Net cash flow from operating activities for Q1 2024 was CNY 1,300,199,825, a decrease of 7.6% from CNY 1,407,625,685 in Q1 2023[24] - Cash inflow from investment activities in Q1 2024 was CNY 1,036,251,255, compared to CNY 7,337,718 in Q1 2023[25] - Cash outflow from investment activities in Q1 2024 was CNY 2,059,410,287, up from CNY 1,241,959,683 in Q1 2023, reflecting a 65.8% increase[25] - Cash inflow from financing activities in Q1 2024 was CNY 4,406,444,333, down from CNY 5,998,700,000 in Q1 2023, a decrease of 26.5%[25] Research and Development - Research and development expenses for Q1 2024 totaled CNY 375,899,900, compared to CNY 301,113,334 in Q1 2023, reflecting a growth of approximately 24.77%[17] - Research and development expenses increased to CNY 41,104,473, a 60% rise compared to CNY 25,579,432 in Q1 2023[33] Other Income - The company reported a significant increase in other income to CNY 115,164,481 in Q1 2024, compared to CNY 50,649,522 in Q1 2023, marking a growth of about 127.59%[18] - Other comprehensive income increased to CNY 223,973,308 from CNY 176,931,220, showing a growth of about 26.52%[15] - Other comprehensive income attributable to the parent company for Q1 2024 was CNY 47,042,088, a recovery from a loss of CNY 110,316,106 in Q1 2023[20]

Financial Performance - The company achieved a consolidated revenue of RMB 33,160,997,000, representing an 18.02% increase compared to the previous year[6]. - The pre-tax profit for the year was RMB 6,715,450,000, reflecting a growth of 20.38% year-on-year[6]. - The net profit attributable to the company's shareholders was RMB 5,628,684,000, which is an 18.37% increase from the previous year[6]. - Earnings per share increased to RMB 2.16, marking an 18.68% growth compared to the prior year[6]. - The gross profit margin improved to 34.14% in 2023, up from 32.73% in 2022[23]. - The company's total asset return rate was 9.94%, compared to 9.36% in the previous year[23]. - The company reported a foreign exchange gain of RMB 368,696 thousand, down from RMB 1,045,238 thousand in the previous year, impacting pre-tax profit[68]. - The company reported a significant increase in revenue, achieving a total of 60 billion RMB for the fiscal year 2023[136]. Dividend and Shareholder Returns - The proposed cash dividend is RMB 1.30 per share, totaling approximately RMB 3,392,666,591.60, which accounts for 60.27% of the net profit attributable to shareholders[2]. - The company plans to distribute a cash dividend of RMB 1.30 per share (tax included), totaling RMB 3,392,666,591.60, which represents 60.27% of the annual profit attributable to the owners of the parent company[185]. - The company has implemented a cash dividend policy, distributing at least 20% of the distributable profits as cash dividends, with a total cash dividend of RMB 3,262,179,415 (approximately $471 million) for the 2022 fiscal year[183]. Investment and Growth Strategy - The company plans to invest a total of RMB 9 billion in Fuzhou and Hefei to support future growth[6]. - The company aims to expand the boundaries of "one piece of glass" and enhance research on intelligent and integrated glass trends, while continuously promoting aluminum trim business[28]. - The company plans to enhance product quality and customer satisfaction by addressing pain points and ensuring stable production processes[30]. - The company is focusing on digital green factory construction to optimize industry and energy structures, aiming to become a benchmark for high-quality development[28]. - The company is exploring the application of artificial intelligence in glass development, manufacturing, and quality control to drive digital transformation and intelligent upgrades[28]. Risk Management - The company has outlined potential risks in its future development strategies, which are detailed in the board report[4]. - The company faces risks from economic, political, and social conditions, particularly due to its reliance on both domestic and international markets[32]. - The company is addressing industry development risks by diversifying its product line and enhancing product value to meet evolving customer demands[33]. - The company is managing foreign exchange risks through monitoring and optimizing currency transactions, as well as establishing local production in Europe and the U.S.[36]. Corporate Governance - The company has maintained a cooperative relationship with its largest customer for over 20 years, indicating strong customer loyalty[61]. - The company has complied with the Corporate Governance Code as per the Hong Kong Listing Rules during the reporting period[58]. - The company emphasizes the importance of developing unique technologies and new automotive glass products, which may require significant investment before generating revenue[37]. - The company has established a long-term mechanism to prevent the controlling shareholder from occupying company assets and infringing on the company's interests[112]. Research and Development - The company is investing heavily in R&D, with a budget increase of 25% for the upcoming fiscal year, focusing on innovative technologies[132]. - The total R&D expenditure for the period was RMB 1,403,030 thousand, accounting for 4.23% of total revenue[86]. - The company is committed to enhancing R&D investment and improving independent innovation capabilities to maintain competitive advantages in the automotive glass industry[37]. - The company has a strong R&D innovation capability and flexible production capacity, enabling rapid response to the high demands of the automotive industry's new trends[29]. Environmental Responsibility - The company is focused on environmental protection and aims to achieve international leading standards in materials, processes, and energy conservation through technological innovation[40]. - The company has implemented various environmental protection measures, including the installation of online monitoring devices for emissions[63]. - The company has reported no exceedances in pollutant discharge limits for wastewater and air emissions[198]. - The company has invested 118.23 million yuan in environmental protection during the reporting period[196]. Employee and Workforce Management - The total number of employees in the parent company is 1,582, while the main subsidiaries employ 31,139, resulting in a total of 32,721 employees[178]. - The gender composition shows that males account for 78.25% (25,603) and females account for 21.75% (7,118) of the total workforce[179]. - The company has a structured compensation policy that includes basic salary, performance pay, bonuses, and benefits, with regular adjustments based on performance[181]. - The training program includes onboarding and ongoing education, covering various aspects such as company culture, ethics, and safety management[182].

Investment Rating - The report maintains a "Buy" rating for Fuyao Glass with a target price of HKD 49.2, representing a potential upside of 25.7% from the current price of HKD 39.1 [6][13]. Core Insights - Fuyao Glass achieved robust growth in 2023, with revenue reaching RMB 33.16 billion, an increase of 18.02% year-on-year, and net profit of RMB 5.63 billion, up 18.37% year-on-year. The earnings per share also grew by 18.68% to RMB 2.16 [4][9]. - The company is focusing on enhancing its product mix and operational management, which has led to continuous revenue and profit growth [4][10]. - The automotive glass business saw a volume increase of 10.24% in 2023, with revenue rising by 16.79% and average selling price (ASP) increasing by 5.94% to RMB 2.12 per square meter [5][11]. Financial Performance Summary - In 2023, Fuyao Glass reported total revenue of RMB 33.16 billion, with a year-on-year growth of 18.02%. The total profit reached RMB 671.6 million, marking a 20.38% increase, while the net profit attributable to shareholders was RMB 562.9 million, up 18.37% [4][9]. - The company’s gross margin improved to 34.1% in 2023, up from 32.7% in 2022, indicating enhanced profitability [7][11]. - The forecast for revenue from 2024 to 2026 is projected to grow to RMB 38.17 billion (+15.1%), RMB 44.77 billion (+17.3%), and RMB 53.05 billion (+18.5%) respectively, with net profit expected to reach RMB 6.21 billion (+10.3%), RMB 7.38 billion (+18.8%), and RMB 8.83 billion (+19.7%) [6][13]. Industry Outlook - The global automotive industry continues to have significant growth potential, particularly in developing countries where car ownership is still low compared to developed nations. For instance, China's car ownership per hundred people is approximately 24, compared to over 50 in countries like the US, Japan, and Germany [10]. - The trend towards "electrification, connectivity, intelligence, and sharing" in the automotive sector is creating new opportunities for the automotive glass industry, as new technologies are increasingly integrated into automotive glass products [10][11].

Financial Performance - The company achieved a consolidated revenue of RMB 33,160,997,000, representing an 18.02% increase compared to the previous year[6]. - The pre-tax profit reached RMB 6,715,450,000, marking a 20.38% growth year-on-year[6]. - The net profit attributable to the company's shareholders was RMB 5,628,684,000, reflecting an 18.37% increase from the previous year[6]. - Earnings per share (EPS) stood at RMB 2.16, which is an 18.68% rise compared to the prior year[6]. - The company reported a net profit of RMB 3,497,072,186 for the parent company, with a total distributable profit of RMB 7,732,348,937 as of December 31, 2023[2]. - The net cash generated from operating activities was RMB 7,479,742, up 33.80% from RMB 5,590,337 in 2022[14]. - Total assets at the end of 2023 amounted to RMB 56,640,463, an increase of 11.55% from RMB 50,778,126 in 2022[14]. - Equity attributable to the owners of the company increased to RMB 31,436,239, an 8.35% rise from RMB 29,013,638 in the previous year[14]. - The gross profit margin for 2023 was 34.14%, up from 32.73% in 2022[24]. - The company's asset-liability ratio as of December 31, 2023, was 44.52%, indicating strong solvency[24]. Dividend Distribution - The company plans to distribute a cash dividend of RMB 1.30 per share, totaling RMB 3,392,666,591.60, which accounts for 60.27% of the net profit attributable to shareholders[2]. - The company will not issue bonus shares or convert capital reserves into share capital for the year 2023, maintaining a focus on cash dividends[42]. - The company plans to distribute a cash dividend of RMB 1.30 per share (tax included), totaling RMB 3,392,666,591.60, which represents 60.27% of the annual profit attributable to the shareholders of the parent company[185]. Investment and Growth Strategy - The company has made a decision to invest a total of RMB 9 billion in Fuzhou and Hefei to support future growth[6]. - The company plans to continue expanding its market presence and invest in new product development to drive future growth[14]. - The company is focused on enhancing its technological capabilities and exploring potential mergers and acquisitions to strengthen its market position[14]. - The company aims to enhance product quality and ensure stable production process control to eliminate customer complaints[30]. - The company plans to increase R&D investment to drive the development of new products such as smart glass, high-performance glass, and high-value glass[30]. - The company is exploring the application of artificial intelligence in glass development, manufacturing, and quality control to drive digital transformation[28]. Market and Industry Trends - The Chinese automotive market achieved record production and sales of 30.16 million and 30.09 million vehicles, respectively, in 2023, marking a year-on-year growth of 11.6% and 12%[26]. - The penetration rate of new energy vehicles is continuously increasing, presenting new opportunities for the automotive glass industry[26]. - The company is expanding its market presence in Southeast Asia, targeting a 25% market share by 2025[132]. - The company is actively pursuing mergers and acquisitions to enhance its product portfolio and market presence[141]. Risk Management and Compliance - The company has established a risk management internal control system that aligns with international standards and regulatory requirements[189]. - The internal audit department conducts independent evaluations of the internal control implementation, ensuring effective risk management[190]. - The company has implemented a self-check mechanism for internal control operations across business and functional departments[189]. - The company emphasizes strict compliance with information disclosure regulations set by regulatory bodies[174]. Corporate Governance - The company adheres to the corporate governance standards set by the Hong Kong Stock Exchange and has established a long-term mechanism to prevent asset occupation by controlling shareholders[114]. - The company has implemented strict information disclosure practices, ensuring that all shareholders have equal access to information[114]. - The company has a dedicated investor relations team to manage communications and maintain relationships with stakeholders, emphasizing social responsibility and sustainable development[114]. - The company has established a whistleblowing system to report fraud and misconduct, ensuring protection for whistleblowers[114]. Environmental Responsibility - The company is committed to green development, social responsibility, and creating value for customers through a complete industrial ecosystem[22]. - The company has implemented a standard internal control system in accordance with regulatory requirements[195]. - The company has invested 118.23 million yuan in environmental protection during the reporting period[196]. - The company complies with national regulations and emission standards for wastewater, waste gas, noise, and solid waste, ensuring all pollutants are discharged within legal limits[199].