毛利率改善—毛利率由去年同期的1.51%上升至本期间的3.64%。有此改善，乃主要由于集团结束无盈 利或低利润的业务，并在客户及产品组合方面实施策略性调整，将重心转向高附加价值产品。同时，集 团持续优化产能利用率、提升效率、优先将资金用于支援未来业务发展，同时着力严格管控开支及削减 成本。我们亦于重组业务、精简间接人员及厂区整合方面取得进展，特别是应对中国业务持续收缩的情 况。 三大业务发展—于智能制造领域，集团积极优化客户组合，配合策略目标审慎拓展客户。在车载电子方 面，集团的4G车载通信控制单元(TCU)达成重要里程碑，向一家全球汽车制造商出货超过一百万套，并 获多个国际汽车品牌应用。在生产线设备╱机器人业务方面，集团的智能回收机器人持续获北美市场青 睐。此外，集团与客户紧密合作，从零开始共同开发全自动化生产线，有效应对劳工短缺的问题，进一 步提升营运效率。 智通财经APP讯，富智康集团(02038)发布截至2025年6月30日止6个月中期业绩公告，该集团取得营业收 入20.61亿美元，同比增加8.75%;公司拥有人期间溢利616.5万美元，去年同期亏损3157.8万美元;每股基 本盈利0.8美仙。 公告 ...

Core Viewpoint - Foxconn Technology Group's subsidiary, FIH Mobile Limited, reported a revenue of $2.06 billion for the first half of 2025, reflecting an 8.8% year-on-year increase, and a net profit attributable to shareholders of $6.165 million, compared to a net loss of $3.1578 million in the same period last year [1] Financial Performance - The company achieved a comprehensive operating revenue of $2.06 billion in the first half of 2025 [1] - This represents an increase of 8.8% compared to the previous year [1] - The net profit attributable to shareholders was $6.165 million, a significant turnaround from a net loss of $3.1578 million in the same period last year [1]

格隆汇8月8日丨富智康集团(02038.HK)公告，截至2025年6月30日止六个月，集团本期间呈报2,061.5百 万美元的综合营业收入，较去年同期的1,895.5百万美元增加166百万美元或8.8%。营业收入同比增加主 要是由于向一家主要客户的出货量增加所致。这也反映了集团在扩展非手机业务、提高客户渗透率、多 元化客户群及优化客户组合方面的努力。期间公司拥有人应占净溢利为6.2百万美元，而去年同期公司 拥有人应占净亏损为31.6百万美元。 ...

（在開曼群島註冊成立之有限公司） （股份代號：2038） 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 的 未 經 審 核 中 期 業 績 公 告 董 事 會 謹 此 宣 佈 本 集 團 本 期 間 的 未 經 審 核 綜 合 業 績，連 同 去 年 同 期 的 比 較 數 字 如 下： 簡 明 綜 合 損 益 及 其 他 全 面 收 益 表 截 至 二 零 二 五 年 六 月 三 十 日 止 六 個 月 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 之 內 容 概 不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全 部 或 任 何 部 分 內 容 而 產 生 或 因 倚 賴 該 等 內 容 而 引 致 之 任 何 損 失 承 擔 任 何 責 任。 | | | | | | | | | | | | | | | | | | | | | | | 六 | | 三 | 十 | 日 | | 六 | | | | 個 | 月 | | | | | | | | | | ...

股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 截至月份: 2025年7月31日 狀態: 新提交 致：香港交易及結算所有限公司 公司名稱: 富智康集團有限公司 呈交日期: 2025年8月1日 I. 法定/註冊股本變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | | 於香港聯交所上市 (註1) | 是 | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02038 | 說明 | | | | | | | | | | | 法定/註冊股份數目 | | | 面值 | | | 法定/註冊股本 | | | 上月底結存 | | | 2,000,000,000 | USD | | 0.4 | USD | | 800,000,000 | | 增加 / 減少 (-) | | | 0 | | | | USD | | | | 本月底結存 | | | 2,000,000,000 | USD | | 0.4 | USD | | 800,000,000 | 本月底法定/註冊股 ...

Core Viewpoint - FIH Mobile Limited (富智康集团) reported a revenue of approximately $1.017 billion for Q1 2025, reflecting a year-on-year growth of 1.91%, and achieved a profit of $1.072 million, marking a turnaround from a loss [1] Financial Performance Highlights - The company anticipates a slight year-on-year decline in sales for the full year ending December 31, 2025, due to strategic customer selection and portfolio optimization [1] - Adjustments in customer and product mix are expected to improve gross margin from 1.61% in the previous year to 3.17% in the current period, driven by a shift from traditional mobile solutions to higher-margin sectors like smart manufacturing and automotive electronics [1] - Operating expenses were reduced to $34.5 million from $49.7 million in the same period last year, primarily due to workforce optimization and strict cost control measures [1] Positive Factors Impacting Financial Performance - Increased sales in the automotive electronics business and production line equipment/robotics [1] - Continuous efforts to enhance efficiency and maintain financial flexibility through cost-saving measures [1] Negative Factors Impacting Financial Performance - Underutilized and idle assets continue to negatively affect financial performance [2] - A decrease in foreign exchange income, which fell to $2.9 million from $7.9 million in Q1 2025, primarily due to the depreciation of the US dollar against almost all currencies [2] - A reduction of $4 million in government subsidies from mainland China and India during the current period [2] - Potential negative impacts on global trade and the mobile market due to increased tariffs imposed by the United States [2]

Financial Performance - The company reported a revenue of $5,702.9 million for 2024, a decrease of 11.5% compared to 2023[6]. - The loss attributable to shareholders for 2024 was $20.3 million, significantly improved from a loss of $120.7 million in 2023[6]. - The company achieved profitability in the second half of 2024, demonstrating the effectiveness of strategic initiatives[6]. - The company reported a consolidated net loss for the period, with various factors contributing to this performance, which are expected to continue affecting the first half of 2025[23]. - The financial performance for the year ending December 31, 2024, has been audited and is detailed in the consolidated financial statements[22]. - The company has experienced fluctuations in operating performance historically, which may continue in future periods[23]. - The first quarter's performance is typically weaker due to the impact of the Spring Festival holiday, particularly in mainland China, Vietnam, and Taiwan[23]. - The company reported consolidated revenue of $5,702.9 million, a decrease of $742.9 million or 11.5% compared to $6,445.8 million in the same period last year[50]. - The net loss attributable to shareholders was $20.3 million, an improvement from a net loss of $120.7 million in the same period last year, due to enhanced operational efficiency[51]. - Gross profit for the period was $134.6 million, up $24.8 million from $109.8 million in the same period last year, with a gross margin of 2.36% compared to 1.70% last year[51]. - Operating expenses decreased to $142.3 million from $219.4 million, a reduction of $77.1 million, attributed to workforce adjustments and restructuring efforts[52]. - The company plans to focus on high-margin industries and clients, terminate unprofitable businesses, and restructure underperforming operations to enhance efficiency[54]. - The company expects sufficient financial resources to meet operational and capital expenditure needs for the next eighteen months[54]. Strategic Initiatives - The company is focusing on a diversified strategy to reduce reliance on the volatile mobile phone market[7]. - R&D investment is being increased based on a "2+2" framework to drive technological advancements and new revenue streams[7]. - The company aims to enhance its core competitiveness through improved integration of hardware and software[7]. - The company has implemented a "2+2" industry and technology strategy to actively expand into automotive electronics, robotics, artificial intelligence (AI), and next-generation communication technologies[28]. - The automotive communication device (T-BOX) developed by the company has begun mass production and delivery, marking a significant milestone in entering the global automotive supply chain[28]. - The company is actively expanding its presence in the robotics industry, leveraging existing core technologies to drive long-term business investments[11]. - The leadership team emphasizes strong partnerships with stakeholders to enhance product success and operational efficiency[11]. - The company is strategically deploying key account managers in various regions to improve communication and gain insights into demand patterns, enhancing contract signing and demand visibility[29]. - The company is collaborating with CarLink to accelerate the development of innovative products for smarter in-car experiences[63]. - The company is focusing on diversifying its operational bases to mitigate supply chain risks, adopting strategies like "China Plus One" and "Taiwan Plus One" to reduce dependency on specific countries[64]. Leadership and Management - The company appointed Lin Chia-Yi as Executive Director and CEO starting July 1, 2024, bringing over 28 years of experience in the communications and computer industry[11]. - Lin is leading the development of core artificial intelligence technologies and focusing on new business development in the robotics sector as part of the "3+3" strategy, which includes electric vehicles, digital health, and robotics[11]. - Dr. Kuo Wen-Yi has over 30 years of experience in wireless communication product development and has been with the company since December 2014, currently serving as Deputy Manager[12]. - Zhang Chuan-Wang has over 31 years of experience in the information and communication technology industry and has been with Hon Hai Technology Group since May 2009, focusing on operational control and performance analysis[13]. - Liu Shao-ki has over 40 years of experience in corporate governance, finance, and risk management, serving as an independent non-executive director since December 2004[14]. - Chen Shu-juan has over 36 years of experience in the financial industry and was appointed as an independent non-executive director on May 19, 2023[15]. - The company has a strong management team with extensive experience in finance and operations, including key personnel with over 35 years in the financial sector[17][19]. - The leadership team is dedicated to fostering talent development and maintaining high operational standards across all business units[11]. Market and Industry Trends - The company is facing competitive pressure in the electronic manufacturing services (EMS) industry due to excess capacity among peers, leading to price declines[30]. - The consumer electronics and mobile phone market is expected to face significant challenges in 2024, with moderate growth forecasted for the mobile phone market and a less optimistic outlook for 2025[40]. - Emerging technologies such as AI capabilities and new device forms like foldable displays are gaining market attention, driven by consumer preferences for seamless integration with smart home and IoT applications[40]. - The smartphone market is facing increased competition and profit erosion due to limited demand and aggressive pricing strategies from regional competitors[66]. - The smartphone market is facing challenges from inflation, high interest rates, and extended replacement cycles, which complicate differentiation and increase competition[116]. - Geopolitical tensions are impacting global trade and investment decisions, creating market uncertainties[32]. - The group is facing uncertainties and challenges in the macro environment for the first half of 2025, with potential impacts on consumer demand and market dynamics[121]. Sustainability and ESG Initiatives - The company emphasizes sustainable development in operations and supply chains, adhering to high governance standards[8]. - The company is committed to creating long-term value for shareholders through environmental, social, and governance (ESG) initiatives[8]. - The company is committed to achieving the United Nations Sustainable Development Goals and has actively implemented sustainability management strategies[124]. - The company has adopted a code of conduct that integrates ESG and corporate social responsibility, providing guidance for management and employees[125]. - The company aims to achieve ISO 14001 environmental management standards and the EU Eco-Management and Audit Scheme[127]. - The company is participating in the Science Based Targets initiative (SBTi) and Climate Action 100+ to strengthen climate governance and implement greenhouse gas reduction across its value chain[128]. - The company has established a dedicated department to ensure compliance with various environmental regulations, including RoHS and REACH[130]. - The group achieved a "low risk" rating of 15.3 in the 2024 Sustainalytics ESG risk assessment[134]. - Seven factories (four in China, two in Vietnam, and one in Mexico) received UL 2799 certification for zero waste to landfill, with six factories achieving platinum certification and one achieving gold certification[134]. Regulatory and Compliance - The new VAT law in mainland China will take effect on January 1, 2026, introducing significant changes that may impact business operations, including the treatment of input tax credits[91]. - The revised Company Law in mainland China will be implemented on July 1, 2024, affecting corporate governance and compliance costs for foreign-invested enterprises[92]. - The company is closely monitoring the implementation of the new VAT law and its potential impact on operations in mainland China[91]. - The company plans to adjust its governance structure and compliance practices to align with the new Company Law in mainland China[92]. - The company will continue to assess the implications of the new foreign investment law and the revised Company Law in mainland China on its operations[93]. Investments and Acquisitions - The company acquired Nokia brand feature phone business assets for a total of $350 million, including $20 million to be paid by HMD, with goodwill of $79.4 million fully impaired in 2018 due to poor performance[80]. - The company invested $38.3 million in HMD convertible bonds, which have been fully converted, resulting in a total investment representing 14.38% of HMD's issued shares[80]. - The company invested $40 million in Mobile Drive, a joint venture with Stellantis, focusing on automotive technology and V2X solutions[83]. - The company committed to invest $3.85 million in Kaihong Energy, a green energy investment platform, aiming for sustainable development in renewable energy[87]. Employee and Workforce Management - The company emphasizes employee development and retention, focusing on providing equal employment opportunities, competitive compensation, and a supportive work environment[43]. - The total number of employees as of December 31, 2024, is 31,568, down from 36,657 on December 31, 2023[48]. - Total employee costs for the year amount to $269 million, slightly down from $270 million in the previous year[48]. - The company has implemented a performance-based compensation policy to reward good performance, contributions, and productivity[48]. - The group implemented a minimum wage increase in Vietnam, resulting in a labor cost increase of approximately 6%[96]. - The company maintains a 100% compliance rate for employee morale initiatives, including participation in a code of conduct program[47]. Related Party Transactions - The procurement agreement sets annual caps for transactions with Hon Hai Technology Group at $1,611 million for 2023, $1,964 million for 2024, and $2,395 million for 2025[158]. - The product sales framework agreement establishes annual caps for sales transactions with Hon Hai Technology Group at $3,813 million for 2023, $4,381 million for 2024, and $5,034 million for 2025[162]. - The company believes that engaging in product sales transactions with Hon Hai Technology Group will enhance revenue and asset utilization[162]. - The company has complied with pricing policies for ongoing related party transactions, ensuring that transactions are conducted at fair and reasonable terms[192].

Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of $5,702,949 thousand, a decrease of 11.5% from $6,445,798 thousand in 2023[3]. - Gross profit for the year was $134,640 thousand, up 22.6% from $109,816 thousand in the previous year[3]. - The company incurred a net loss of $20,192 thousand, significantly improved from a loss of $120,773 thousand in 2023[3]. - Basic and diluted loss per share was $0.26, compared to $1.52 in the previous year[4]. - The company reported a pre-tax profit of $33,700,000 for 2024, compared to $25,889,000 in 2023[18]. - The income tax expense for 2024 was $30,703,000, an increase from $17,484,000 in 2023[20]. - The net loss attributable to shareholders was $20.3 million, an improvement from a net loss of $120.7 million in the same period last year, due to enhanced operational efficiency[68]. - The return on equity (ROE) for the period was -1.4%, an improvement from -7.7% in the same period last year, primarily due to reduced losses. The basic loss per share was $0.26[72]. Revenue Breakdown - Revenue from the Asia segment decreased to $2,597,525,000 in 2024 from $3,798,328,000 in 2023, representing a decline of 31.6%[14]. - The Europe segment reported revenue of $1,174,562,000 in 2024, up from $1,050,945,000 in 2023, an increase of 11.7%[14]. - The Americas segment saw revenue increase to $1,930,862,000 in 2024 from $1,596,525,000 in 2023, a growth of 20.9%[14]. - The total segment profit for 2024 was $119,523,000, compared to a loss of $9,549,000 in 2023[14]. Asset and Liability Changes - Total assets decreased to $3,024,727 thousand from $3,458,939 thousand, a decline of 12.6%[5]. - Cash and cash equivalents decreased to $1,516,241 thousand from $1,845,323 thousand, a reduction of 17.9%[5]. - The company’s total equity decreased to $1,463,663 thousand from $1,561,372 thousand, a decline of 6.3%[6]. - Total liabilities decreased to $2,358,360,000 in 2024 from $2,758,064,000 in 2023, a decline of 14.5%[15]. Operational Efficiency and Cost Management - Research and development expenses decreased to $49,965 thousand from $57,108 thousand, reflecting a reduction of 12.5%[3]. - Operating expenses decreased to $142.3 million from $219.4 million, a reduction of $77.1 million, attributed to workforce adjustments and restructuring efforts[68]. - The company is focusing on high-margin industries and clients, terminating unprofitable businesses, and restructuring underperforming operations to enhance efficiency[71]. - Cost-cutting measures are expected to enhance efficiency and maintain financial flexibility, leading to improved financial performance in the first half of 2025 compared to the same period last year[136]. Market and Competitive Landscape - The company is facing competitive pressure in the EMS industry due to overcapacity among peers, leading to price declines despite a normalization of the market and reduced material costs[47]. - The smartphone market showed signs of recovery in 2024 due to inventory replenishment, but intense competition in China and geopolitical issues impacted sales significantly[50]. - The overall smartphone market is experiencing pressure from economic and geopolitical factors, leading to intensified competition and profit erosion[84]. - The geopolitical situation, including the Russia-Ukraine conflict and U.S.-China tensions, is reshaping international trade and impacting supply chains[133]. Strategic Initiatives and Future Outlook - The company aims to optimize capacity utilization while focusing on cost reduction, consolidating locations, and restructuring operations due to the decline in profitability from mainland China operations[45]. - The company is strategically expanding its global footprint with operations in China, India, Vietnam, Taiwan, Mexico, and the United States to maximize production value and enhance supply chain management[47]. - The company is diversifying its business strategy to reduce reliance on mobile business and improve its product portfolio, focusing on smart manufacturing, automotive electronics, and AI solutions[75]. - The company is actively seeking opportunities in smart automation manufacturing, particularly in the automotive and electronics sectors, and has launched an intelligent recycling robot in collaboration with an environmental company[78]. Employee and Governance Matters - The total number of employees in the group decreased to 31,568 as of December 31, 2024, down from 36,657 on December 31, 2023[63]. - The company is committed to employee development, focusing on attracting and retaining talent through competitive compensation, training, and career advancement opportunities[59]. - The company has implemented a performance-based compensation policy to reward good performance, contributions, and productivity[65]. - The company has established a clear division of responsibilities between the Chairman and the CEO to enhance board independence and management balance[143]. Compliance and Regulatory Environment - The company is monitoring compliance with global transfer pricing regulations to ensure operational efficiency and tax risk management[117]. - The implementation of the new VAT law in mainland China, effective January 1, 2026, may affect various business operations, necessitating close monitoring and adjustments to compliance strategies[110]. - The revised Company Law in mainland China will take effect on July 1, 2024, impacting corporate governance, capital contributions, and compliance costs for foreign-invested enterprises[111].

Financial Performance - Revenue for the six months ended June 30, 2024, was $1,895,530 thousand, a decrease of 29.2% compared to $2,676,717 thousand for the same period in 2023[7] - Gross profit for the same period was $28,622 thousand, down 27.8% from $39,621 thousand year-over-year[7] - The company reported a net loss of $31,643 thousand for the six months ended June 30, 2024, compared to a net loss of $49,835 thousand in the prior year, representing a 36.5% improvement[8] - The total comprehensive loss for the period was $56,080 thousand, compared to $202,883 thousand in the same period last year, indicating a substantial reduction in losses[8] - The basic and diluted loss per share for the period was 0.4 US cents, compared to 0.6 US cents in the same period last year[8] - The company reported a net loss attributable to shareholders of $31,578,000, an improvement from a loss of $50,016,000 in the same period of 2023[26] - The company’s loss per share for the period was $(0.10), reflecting the overall financial performance[12] Expenses and Costs - Research and development expenses were $23,799 thousand, a decrease of 10.1% from $26,459 thousand in the previous year[7] - The company incurred interest expenses of $30,318 thousand, an increase of 28.7% from $23,551 thousand in the same period last year[7] - Operating expenses decreased to $73.1 million from $122.3 million, a reduction of $49.2 million, due to restructuring and layoffs[78] - The company incurred a total depreciation expense of $64,708,000, down from $80,211,000 in the same period last year[23] Assets and Liabilities - As of June 30, 2024, total assets amounted to $3,840,184 thousand, an increase from $3,458,939 thousand as of December 31, 2023, representing a growth of approximately 11%[9] - Current liabilities rose to $3,149,700 thousand from $2,736,965 thousand, marking an increase of approximately 15%[9] - The company's equity attributable to owners decreased to $1,501,861 thousand from $1,558,487 thousand, a decline of about 4%[10] - The total equity decreased to $1,504,514 thousand from $1,561,372 thousand, representing a decrease of about 4%[10] Cash Flow and Financing - The net cash used in operating activities for the six months was $(197.37) million, compared to $(628.79) million in the previous year, indicating an improvement[13] - The company raised $1,305.80 million in bank borrowings during the financing activities, compared to $755.74 million in the previous year[13] - The company incurred a net cash outflow of $(49.80) million from investing activities, compared to $(38.24) million in the same period last year[13] - The group's free cash flow was a net outflow of $255 million, compared to an inflow of $10 million on December 31, 2023[106] Revenue Segmentation - Revenue from the Asia segment was $1,067,385,000, down 43.0% from $1,874,505,000 year-over-year[19] - The Americas segment reported revenue of $541,678,000, an increase of 18.8% compared to $455,733,000 in the previous year[19] - The total segment profit for the six months was $25,038,000, significantly up from $5,621,000 in the same period last year[19] Strategic Focus and Market Conditions - The company plans to continue focusing on expanding its manufacturing services in the mobile phone sector, leveraging its vertical integration capabilities[14] - The smartphone market showed signs of improvement in the first half of 2024, driven by the proliferation of 5G and integration of AI technologies, despite facing significant challenges such as market saturation and increased competition[65] - The company is diversifying its business strategy through 5G, IoV, AI, and next-generation communication technologies to reduce reliance on the mobile phone market[83] - The company is actively developing AI hardware and software solutions for industrial automation, contributing to sustainable development through the launch of the FIH Robotics smart recycling robot[84] Employee and Governance - The total number of employees as of June 30, 2024, is 44,519, an increase from 36,657 on December 31, 2023[75] - The company emphasizes employee development and training, focusing on attracting and retaining talent through competitive compensation and a supportive work environment[71] - The company has established a written division of responsibilities between the chairman and the CEO to enhance governance[142] Compliance and Regulatory Environment - The group is committed to compliance with the OECD's BEPS action plan and related local transfer pricing regulations[104] - The revised Company Law in Mainland China will take effect on July 1, 2024, impacting corporate governance, capital contributions, and compliance costs for foreign-invested entities[101] - The new Foreign Investment Law in Mainland China requires adjustments to governance structures and compliance models, potentially increasing legal and regulatory costs[102]

Financial Performance - The company's revenue for the six months ended June 30, 2024, was $1,895,530,000, a decrease of 29.1% compared to $2,676,717,000 for the same period in 2023[13]. - The gross profit for the period was $28,622,000, significantly lower than the previous year's gross profit of $39,621,000, indicating a decline in profitability[2]. - The net loss for the period was $31,643,000, compared to a net loss of $49,835,000 in the same period last year, showing an improvement in loss[4]. - Total revenue for the six months ended June 30, 2024, was $1,895,530,000, a decrease of 29.2% from $2,676,717,000 in the same period of 2023[14]. - Revenue from the Asia segment was $1,067,385,000, down 43.0% from $1,874,505,000 year-over-year[14]. - The Americas segment reported revenue of $541,678,000, an increase of 18.8% compared to $455,733,000 in the previous year[14]. - The company recorded a loss before tax of $29,313,000, slightly improved from a loss of $29,601,000 in the same period last year[14]. - The net loss attributable to shareholders was $31,578,000, compared to a loss of $50,016,000 for the same period in 2023[21]. - Operating expenses for the period were $73.1 million, a decrease of $49.2 million from $122.3 million in the same period last year, attributed to layoffs and restructuring efforts[52]. - Other income, gains, and losses for the period amounted to $43.0 million, a decrease of $89.7 million year-on-year, primarily due to the absence of capital gains from property sales[52]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to $3,840,184,000, an increase from $3,458,939,000 as of December 31, 2023[5]. - Current liabilities increased to $3,149,700,000 from $2,736,965,000, indicating a rise in short-term financial obligations[6]. - The company's cash and cash equivalents were $1,705,805,000, down from $1,845,323,000 at the end of 2023, reflecting a decrease in liquidity[5]. - The group reported total trade receivables of $843,562 million as of June 30, 2024, down from $958,516 million as of December 31, 2023[26]. - Total trade and other payables increased to $1,849,124 million as of June 30, 2024, from $1,643,013 million as of December 31, 2023[29]. - Bank borrowings rose to $865,800 million as of June 30, 2024, compared to $703,676 million as of December 31, 2023, with interest rates ranging from 5.88% to 8.07%[30]. Research and Development - Research and development expenses were $23,799,000, a decrease from $26,459,000 in the previous year[14]. - The company has implemented a "2+2" strategy to actively expand into automotive electronics, robotics, artificial intelligence, and next-generation communication technologies, achieving significant progress in these areas[35]. - Significant milestones were achieved in automotive electronics and AI robotics solutions, improving vehicle safety and efficiency[37]. - The company is investing in next-generation communication technologies, including LEO ground user terminals and 6G non-terrestrial network technologies[40]. Market and Strategic Focus - The global economic environment remains complex, with moderate growth but ongoing challenges, particularly in major economies like the US and China, which are experiencing uneven recovery patterns[36]. - The company acknowledges that its past operating performance has shown volatility and may continue to fluctuate significantly from one period to another[33]. - The company is diversifying its business strategy through 5G, IoV, AI, and next-generation communication technologies to reduce reliance on the smartphone market[57]. - The company is actively expanding overseas production capacity to meet customer demand and diversify its customer and product base[85]. Customer and Supplier Relations - The company's top five customers accounted for approximately 85.30% of total revenue during the first half of 2024[38]. - Revenue from Hon Hai Technology Group, including Hon Hai and Sharp Corporation, represented about 30.79% of total revenue[38]. - The top five suppliers represented about 44.6% of the company's total procurement, reflecting a strategic integration approach to ensure procurement efficiency and favorable commercial terms[41]. Employee and Organizational Development - Employee development is a key focus, with the company emphasizing equal employment opportunities, competitive compensation, and a supportive work environment to attract and retain talent[44]. - The total number of employees in the group was 44,519, an increase from 36,657 as of December 31, 2023[48]. - The company has implemented competitive compensation policies and annual bonuses to retain employees in a challenging labor market[48]. - The company has strengthened partnerships with universities and educational institutions to create a stable talent pipeline[47]. Governance and Compliance - The financial statements were prepared in accordance with International Financial Reporting Standards, ensuring compliance with accounting regulations[10]. - The audit committee has reviewed the unaudited consolidated financial statements for the period and recommended their approval to the board[90]. - The company has adhered to all provisions of the Corporate Governance Code, with the exception of the separation of roles between the Chairman and the CEO, which has been maintained since January 1, 2017[91]. - The Board has decided to appoint Mr. Chi Yu Yang as the Chairman and Mr. Lin Chia Yi as the CEO, effective July 1, 2024, to enhance corporate governance and ensure a balance of power[91]. Economic and Market Challenges - The company faces ongoing challenges from weak demand and market saturation, with a focus on high-margin sectors and cost-cutting measures[54]. - The company anticipates that the challenging conditions in the Asia division will persist into 2024, affecting performance and recovery[61]. - The ongoing geopolitical tensions and high inflation rates are expected to impact consumer spending and overall demand for smartphones[82]. - The ODM/OEM/EMS industry faces challenges such as rising domestic production costs and a shortage of skilled labor, impacting profitability[79].