Financial Performance - Revenue for 2022 reached RMB 107,186,288 thousand, a 20.4% increase compared to RMB 89,056,978 thousand in 2021[6] - Gross profit margin for 2022 was 6%, down from 7% in 2021[6] - Net profit margin for 2022 was 2%, a decrease from 3% in 2021[6] - The Group's turnover for the year was approximately RMB107,186 million, representing a year-on-year increase of 20.36%, while the profit attributable to the owners of the parent company decreased by 19.58% to RMB1,858 million[17][18] - The Group achieved sales of approximately RMB107,186 million in 2022, representing a year-on-year increase of approximately 20.36%[27] - Profit attributable to shareholders dropped by approximately 19.58% year-on-year to approximately RMB1,858 million in 2022[27] - Revenue from the consumer electronics business was RMB82,209 million, representing an increase of approximately 14.77% compared to 2021[29] - Revenue from components and parts in the consumer electronics business was approximately RMB14,155 million, representing a decrease of 9.58% year-on-year[29] - Revenue from assembly in the consumer electronics business was approximately RMB68,054 million, representing an increase of 21.57% year-on-year[29] - The Group's gross profit increased by 5.33% to approximately RMB6,350 million, with a gross profit margin decrease from 6.77% in 2021 to 5.92%[51] - The Group's revenue increased by 20.36% compared to the previous year, while profit attributable to equity holders decreased by 19.58%[47] Market Trends and Industry Performance - Global smartphone shipments in 2022 decreased by 11.3% year-on-year to 1.21 billion units[13] - Global PC market shipments in 2022 decreased by 16.5% year-on-year to 292.3 million units[13] - Global tablet PC shipments in 2022 decreased by 3.3% year-on-year to 162.8 million units[13] - China's mobile phone shipments in 2022 amounted to 272 million units, down 22.6% year-on-year[13] - 5G mobile phone shipments in China decreased by 19.6% year-on-year to 214 million units in 2022[13] - Global smartphone shipments in 2022 decreased by 11.3% year-on-year to 1.21 billion units, and domestic smartphone shipments in China dropped by 22.6% to 272 million units[14] - Global smartphone shipments in 2022 decreased significantly by 11.3% to 1.21 billion units[29] - Global PC market shipments in 2022 decreased by 16.5% to 292.3 million units[29] - Global tablet PCs shipments decreased by 3.3% year-on-year to 162.8 million units[29] - Annual mobile phone shipments in the Chinese market amounted to 272 million units in 2022, down by approximately 22.6% year-on-year[29] - Shipment of 5G mobile phones in China decreased by approximately 19.6% year-on-year to 214 million units[29] - Smartphone shipments are expected to rise by 2.8% in 2023, while PC shipments are forecasted to decline 5.6% to 281 million units, and global tablet shipments to fall 6.7% to 148 million units[37] - The smartphone market is expected to grow by 2.8% in 2023, while the PC market (including desktops, notebooks, and workstations) is projected to decline by 5.6% to 281 million units, and global tablet shipments are expected to drop by 6.7% to 148 million units[38] New Energy and Energy Storage Market - The global residential energy storage market saw a significant increase, with new installations reaching 15GWh in 2022, a 134% year-on-year growth[15][18] - China's new energy vehicle sales in 2022 reached 6.887 million units, a 93.4% year-on-year increase, with market share rising from 13.4% in 2021 to 25.6% in 2022[16][18] - The Group's residential energy storage product shipments grew rapidly, with business scale expanding several times, becoming a key driver for revenue growth in the new intelligent products segment[20][22] - The Group's new energy vehicle business maintained strong growth momentum, with significant increases in shipments of intelligent cockpits and network connection products[21][22] - Global residential energy storage installed capacity reached 15GWh in 2022, a 134% year-on-year increase[31] - China's new energy vehicle sales reached 6.887 million units in 2022, a 93.4% year-on-year increase, with market share rising from 13.4% to 25.6%[33] - The company's automotive intelligent system business revenue amounted to RMB9,263 million in 2022, accounting for 8.64% of total revenue, a 145.71% increase from the previous year[33] - By the end of 2026, 3.9 million households in Europe are expected to deploy residential battery-based energy storage systems, with cumulative energy storage capacity increasing by over 300% to reach 32.2GWh[40] - The global residential energy storage market is expected to reach $100 billion in the future, driven by favorable policies and rising market penetration[40] - China's new energy vehicle sales are expected to reach 9 million units in 2023, representing a year-on-year growth of 35%[42] - The new energy vehicle market in China is forecasted to reach 15.98 million units by 2026, with a CAGR of 35.1%[42] - The penetration rate of intelligent networked new energy vehicles in China is expected to reach 66% in 2023[42] Strategic Initiatives and Business Focus - The Group continued to deepen its strategic cooperation with major customers in the consumer electronics business, despite a weakened smartphone market affecting Android complete machine assembly and components revenue[19] - The Group is focusing on R&D and technological innovation, introducing product lines such as intelligent driving systems, thermal management systems, and intelligent chassis to enhance market competitiveness[21][22] - The Group aims to become a global leading solution provider in the new energy vehicle industry by deepening cooperation with domestic and international vehicle enterprises and increasing market share[21][22] - The Group will focus on mid-to-high-end products in the Android assembly business and strengthen strategic cooperation with customers[39] - The Group will continue to expand its domestic and overseas markets, improve globalization, and provide better services to customers[39] - The Group's residential energy storage, smart home, gaming hardware, and unmanned aerial vehicle segments are expected to maintain strong growth momentum in 2023[41] - The Group aims to introduce residential energy storage products to more overseas countries and regions, expecting high growth in shipment volume and revenue expansion[41] - The Group has introduced incremental track products such as intelligent driving systems, thermal management systems, and intelligent chassis and suspension[43] - The Group's new energy vehicle business segment is expected to continue rapid growth, leveraging its parent company's strong advantage in the sector[43] - The Group has diversified its product matrix to include new energy vehicle product series, residential energy storage products, and other new intelligent products[44] - The Group plans to deepen cooperation with domestic and overseas automotive companies and increase market share in the new energy vehicle industry[43] Corporate Governance and Leadership - The Group recommended a final dividend of RMB0.165 per ordinary share for the year, compared to RMB0.103 per ordinary share in 2021[17][18] - Final dividend declared at RMB0.165 per ordinary share, up from RMB0.103 in 2021[58][60] - Total share capital as of 31 December 2022 was 2,253,204,500 ordinary shares[59][60] - The Board held twelve meetings during the year to discuss the Group's overall strategy, operation, and financial performance[91] - The Board is responsible for formulating the Group's development strategy, setting management objectives, and overseeing performance[86] - The Company has complied with all applicable provisions of the Corporate Governance Code, except for deviation from code provision C.1.6 due to pandemic-related travel inconvenience[85] - The Board comprises seven Directors: two executive Directors, two non-executive Directors, and three independent non-executive Directors[87] - The Company has arranged appropriate insurance coverage for legal actions against its Directors and Senior Management, reviewed annually[92] - The Company received annual confirmations of independence from each independent non-executive Director as required under the Listing Rules[90] - The Board ensures timely access to necessary information to discharge its duties effectively[91] - The Board delegates specific tasks to management, including the preparation of financial accounts and implementation of approved strategies[92] - The Company has implemented corporate governance practices in compliance with the Corporate Governance Code since its listing[84] - The Board acknowledges its responsibility for preparing all information and representations of the Company's financial statements[92] - The Board held 12 meetings in 2022, with high attendance rates from all Directors, including 10/10 attendance for Wang Nian-qiang, Jiang Xiang-rong, Wang Chuan-fu, Wang Bo, Chung Kwok Mo John, Antony Francis MAMPILLY, and Qian Jing-jie at Board meetings[106] - The company has established committees including the Audit Committee, Remuneration Committee, and Nomination Committee to enhance corporate governance[107] - Directors are required to retire by rotation every three years, with Wang Nian-qiang, Wang Bo, and Qian Jing-jie proposed for re-election at the AGM[95] - Newly appointed Directors receive induction materials and participate in continuous professional development programs to ensure adequate performance of duties[96][97] - The company ensures independent views are available to the Board through mechanisms such as separate access to senior management and annual discussions with external auditors[99][100] - The roles of Chairman (Wang Chuan-fu) and Chief Executive Officer (Wang Nian-qiang) are held separately to ensure clear distinction of responsibilities[101] - The Audit Committee held four meetings during the year to review the audited consolidated financial statements for the year ended 31 December 2021, and the unaudited consolidated financial statements for the three months ended 31 March 2022, the six months ended 30 June 2022, and the nine months ended 30 September 2022[109] - The Remuneration Committee held one meeting during the year to review and recommend remuneration policies for Directors, senior management, and staff[112] - The Remuneration Committee's policy for executive Directors includes basic salary and discretionary bonus, with no equity-based remuneration for independent non-executive Directors[115] - The Nomination Committee reviewed the Board's structure, size, and composition, as well as the Board Diversity Policy and Nomination Policy during the year[117] - The Company reimburses reasonable expenses incurred by Directors in the course of their duties[116] - The Remuneration Committee ensures that the remuneration levels for Directors, senior management, and staff are appropriate and regularly monitored[112] - The Audit Committee consists of five members, including three independent non-executive Directors with appropriate professional qualifications[108] - The Remuneration Committee consists of five Directors, including three independent non-executive Directors[112] - The Company's remuneration policy for executive Directors links compensation to individual performance and corporate objectives[115] - The Nomination Committee assessed the independence of independent non-executive Directors and provided recommendations for rotation and re-appointment at the annual general meeting[117] - The Nomination Committee comprises five members, including three independent non-executive directors: Mr. Chung Kwok Mo John, Mr. Antony Francis MAMPILLY, and Mr. Qian Jing-jie[122][123] - The Nomination Committee held one meeting during the year, with all members attending[124][125] - The Board Diversity Policy aims to ensure diversity in terms of gender, age, cultural and educational background, professional experience, skills, and knowledge[127] - As of 31 December 2022, all members of the Board were male, indicating a lack of gender diversity[128][129] - The company plans to include a female Director by 2024 to comply with Rule 13.92 of the Listing Rules[130] - Female employees accounted for approximately 37.45% of the total workforce as of the report date[130] - The company's recruitment strategy focuses on achieving employee diversity in gender, age, cultural and educational background, expertise, skills, and know-how[131] - The total remuneration paid to the independent international auditor, Ernst & Young, for audit services was RMB1,240,000, with an additional RMB200,000 for non-audit services[132][133] - The company's female employees account for approximately 37.45% of the total workforce, reflecting a commitment to gender diversity[132] - The Board has proposed to re-appoint Ernst & Young as the independent international auditor for 2023, subject to shareholder approval at the AGM[134][135] Risk Management and Internal Controls - The company's risk management and internal control systems are designed to manage risks and provide reasonable assurance against material errors, losses, or fraud[138] - The Board reviewed the effectiveness of the Group's risk management and internal control systems in 2022, concluding that they are effective and adequate[151] - The company's risk management and internal control system is effective and sufficient, with no significant deficiencies identified in 2022[153] - The Internal Audit Department reports directly to the Audit Committee and plays a crucial role in the Group's risk management and internal control system[154][157] - All Directors complied with the Model Code for Securities Transactions, and no incidents of non-compliance were noted in 2022[155][158] - The Group has established policies for the timely disclosure of inside information in compliance with the Securities and Futures Ordinance[156][159] - Shareholders holding at least 5% of the total voting rights can requisition an extraordinary general meeting[160][164] - Shareholders representing at least 2.5% of the total voting rights or 50 shareholders can propose resolutions at general meetings[161][164] - The company adopts a voting by poll policy for all resolutions at shareholders' meetings to safeguard shareholders' rights[162][164] - The Board reviews the investor relations policy annually to ensure effective communication with investors and shareholders[166] - The company maintains diverse communication channels, including performance presentations and investor surveys, to engage with shareholders[166] - The Board confirmed the effective implementation of the investor relations policy throughout 2022[167] - The company actively implements investor relations policies to ensure fair and timely access to information for shareholders and investors, with annual reviews to maintain policy effectiveness[168] Environmental, Social, and Governance (ESG) - BYD Electronic adheres to the Environmental, Social, and Governance (ESG) Reporting Guide of the Hong Kong Stock Exchange, emphasizing materiality, quantitative data, balance, and consistency in its ESG reporting[172] - The company's ESG report covers the period from January 1, 2022, to December 31, 2022, and includes BYD Electronic (International) Company Limited and its principal subsidiaries[170][171] - BYD Electronic's subsidiaries, Huizhou BYD Electronic Co., Limited and Xi'an BYD Electronic Co., Limited, were awarded the national-level green factory honor in 2021 and 2022, respectively[177] - The Board of Directors is responsible for assessing and managing ESG risks, integrating ESG matters into business strategies, and overseeing corporate social responsibility performance through the ESG Committee[178] - The company uses internal statistics and relevant public data for its ESG report, ensuring no false records or material omissions, with all amounts denominated in RMB unless otherwise specified[175] - BYD Electronic actively manages relationships with stakeholders, including clients, staff, suppliers, investors, and regulators, to incorporate feedback and evaluate ESG progress[182] - The company's ESG report follows the principles of the "14th Five-Year Plan" for promoting green development and achieving harmony between humanity and nature[169][173] - The Board of Directors regularly reviews and evaluates the company's corporate social responsibility work in March each year, based on annual working plans and the importance of relevant topics[179] - Stakeholders can contact the company via email at BYDEIR@byd.com for any questions or suggestions regarding the ESG report or management[176] - Scope I greenhouse gas emissions in 2022 were 15,165.55 tons (carbon dioxide equivalence)[192] - Scope II greenhouse gas emissions in 2022 were 1,556,489.57 tons (carbon dioxide equivalence)[192] - Total greenhouse gas emissions in 2022 were 1,571,655.13 tons (carbon dioxide equivalence)[192] - Greenhouse gas emission intensity in 2022 was 16.86 tons per person[192] - The company did not encounter any environmental pollution or ecologically damaging accidents in 2022[190] - The company strictly complies with environmental laws and regulations, including the Prevention and Control of Atmospheric Pollution Law, Water Pollution Prevention and Control Law, and Environmental Protection Law of the People's Republic of China[193] - Waste emissions include waste water, waste gas, solid wastes, and noise, with waste water further divided into production waste water and domestic sewage[194] - The company regularly reviews its greenhouse gas emission data and has submitted the assessment results of important ESG topics to the Board of Directors for confirmation and approval[187] - The company invests a large amount of capital resources in environmental protection to achieve harmonious coexistence between the corporate and the environment[190] - The company actively coordinates economic interests with environmental considerations, ensuring a balance between economic benefits and environmental protection[193] - Scope I includes direct greenhouse gas emissions from energy, processing, and transportation, while Scope II covers indirect emissions from purchased electricity[198] - In 2022, the company treated and discharged approximately 1,409,162 tons of sewage[199] - The total hazardous waste generated in 2022 was approximately 26,627 tons, with a density of 0.2857 ton/person[199] - Emission coefficient for the southern power grid in 2019 was 0.8042 kg CO2 equivalence/kWh[198] - Emission coefficient for the northwest power grid in 2019 was 0.8922 kg CO2 equivalence/kWh[198] - Emission coefficient for the central China power grid in 2019 was 0.8587 kg CO2 equivalence/kWh[198] Financial Position and Liquidity - Net assets increased to RMB 25,635,069 thousand in 2022, up from RMB 24,027,103 thousand in 2021[7] - Total assets grew to RMB 56,994,373 thousand in 2022, compared to RMB 41,175,282 thousand in 2021[7] - The Group recorded cash inflow from operations of approximately RMB
比亚迪电子(00285) - 2022 - 年度财报