Growth Strategy and Market Position - The company reported a continuous growth strategy focusing on expanding and diversifying its revenue base, with a strong emphasis on technology leadership and optimizing cost structures[3]. - The company aims to enhance its position in the advanced driver-assistance systems (ADAS) market, leveraging its expertise in electric power steering (EPS) and other innovative technologies[5]. - The company is actively seeking selective acquisitions and alliances to strengthen its market position, particularly in China and emerging markets[3]. - The company emphasizes a six-point profit growth strategy to enhance shareholder value and adapt to the evolving automotive industry[61]. - The company continues to focus on executing its profit growth strategy, aiming for revenue growth above market levels and enhancing profitability[26]. Financial Performance - Revenue reached a historical high of 424.4 million, representing a 22.5% increase from 2023[23]. - Free cash flow reached 6 billion in new orders, with 31% from new business and 28% from domestic Chinese OEMs, marking a 38% increase in orders from domestic manufacturers compared to last year[23]. - The Asia-Pacific region achieved a record revenue of $1.3 billion, a 10.1% increase from 2023, maintaining its position as a leading supplier among domestic Chinese OEMs[23]. Innovation and Product Development - The company is committed to innovation and leading the market in steering and powertrain systems, addressing challenges posed by electrification and advanced driving technologies[5]. - The company has a diverse product portfolio, including EPS, steer-by-wire systems, and hydraulic power steering, which are critical for meeting the demands of electrification and automation in the automotive industry[11]. - The introduction of the modular mPEPS system in 2024 completes the modular product portfolio across all EPS architectures, enhancing product scalability and market responsiveness[28]. - The company emphasizes innovation and strategic localization to optimize its business layout and enhance operational efficiency[18]. - The successful launch of the REPS project marks a significant breakthrough in collaboration with Nissan, showcasing the company's leadership in the REPS field[27]. Customer Relationships and Market Expansion - The company reported a significant increase in customer relationships, including partnerships with major automotive manufacturers such as BMW, BYD, and Ford[10]. - The company successfully launched 77 customer projects in 2024, surpassing the previous year's record, with 68 being new or newly acquired business[25]. - The company won its first dual pinion electric power steering (DPEPS) orders from two leading domestic Chinese OEMs[24]. - The company achieved its first order for steer-by-wire (SbW) from a leading domestic Chinese OEM, marking its third overall SbW order[24]. - The company secured significant orders from leading domestic automakers in China, leveraging its technological expertise and proven track record to expand its business in this segment[87]. Operational Efficiency and Sustainability - The company is focused on creating a unified culture that promotes personal and corporate growth, aligning with its core values of being people-oriented and operational excellence[5]. - The company is committed to digitalizing global supply chain management to improve efficiency, transparency, and responsiveness[83]. - The company is focused on improving operational efficiency and profitability across all divisions[174]. - The company continues to focus on sustainable practices to improve performance and provide higher value to stakeholders, integrating sustainability into its global business strategy[99]. - A 25-acre solar power plant in Saginaw, Michigan, was successfully launched in the first half of 2024 to enhance energy efficiency[79]. Leadership and Governance - Robin Milavec appointed as President on August 17, 2021, with over 35 years of experience in the automotive industry[165]. - The company maintains a strong commitment to corporate governance and compliance through its board structure[169]. - The senior management team is responsible for daily business management, with key positions including CEO, President, and CFO[172]. - The leadership team is committed to executing the company's strategic objectives and expanding its market presence[176]. - The company focuses on sustainable development and corporate risk management through its management committees[165]. Risks and Challenges - The company faces operational risks due to internal processes and external events, which cannot be completely eliminated[191]. - Financial risks include market, liquidity, and credit risks that may significantly impact the company's financial condition and operating performance[192]. - The automotive industry is cyclical and sensitive to overall economic conditions, affecting sales and production levels[193]. - The company must continuously negotiate cost reductions with customers, impacting financial performance if not achieved[196]. - The industry is highly competitive, with competitors seeking to expand their market share through new and existing customers[200].
耐世特(01316) - 2024 - 年度财报