Awards and Recognitions - Segway-Ninebot awarded the company "2019 Best Supplier" and "2019 Joint Innovation Award"[3] - Canon awarded the company "First Prize in the 24th Comprehensive Assembly Capability Invitational Competition"[2] - The company was ranked among "2019 Guangdong Top 500 Enterprises", "2019 Guangdong Top 100 Private Enterprises", and "2019 Guangdong Top 100 Manufacturing Enterprises"[32] - Fujifilm awarded the company "Excellent Partner (2020 - 10 Years Consecutive Award)"[30] - The company was ranked among "2021 Guangdong Top 500 Enterprises"[64] - The company was awarded "2021 Most Potential Supplier" by Great Wall Motors Chongqing Branch[46] - The company was recognized as "2021 Guangdong Provincial Intellectual Property Demonstration Enterprise"[54] - The company was awarded "2020 Best Quality Award" by Mitac[63] - The company was ranked among "2020 Shenzhen Top 500 Enterprises"[43] - The company was awarded "2021 Cooperative Supplier Award" by Aisin Foshan Body Parts Co., Ltd.[49] - The company was awarded the "Best Under a Billion" by Forbes (Asia) magazine[168] - The company received the "Excellence in Manufacturing Achievement Award" from the Hong Kong Federation of Innovation Technology and Manufacturing Industries in 2012[182] - The company's Shenzhen Yihao Mold Manufacturing Co., Ltd. and Chongqing Digital Mold Body Mold Co., Ltd. were certified as "National High-Tech Enterprises"[183] Financial Performance - Inventory turnover days increased to 48 days in 2023 from 46 days in 2022 due to overall production decline[87] - Accounts receivable turnover days rose to 107 days in 2023 from 98 days in 2022[87] - Accounts payable turnover days increased to 111 days in 2023 from 108 days in 2022[87] - Cash conversion cycle extended to 44 days in 2023 from 36 days in 2022[87] - Net debt to equity ratio increased to 25.2% in 2023 from 21.0% in 2022[87] - Net profit margin improved to 3.8% in 2023 from 3.3% in 2022[87] - Return on equity increased to 7.9% in 2023 from 7.3% in 2022[87] - The company's net profit margin and return on equity increased due to higher owner's attributable profit[133] - The company's profit attributable to owners for 2023 was HKD 237,095,000, up from HKD 206,017,000 in 2022, primarily due to increased operating profit[200] Business Operations - The company operates two main businesses: office automation equipment and automotive components, with manufacturing bases in China, Southeast Asia, and North America[121] - The office automation equipment business provides design and electronic manufacturing services (D-EMS) for leading brands, offering a one-stop solution from product design to assembly[121] - The automotive components business focuses on platformization, supplying platform and universal parts to global Tier 1 suppliers, OEMs, and automakers[121] - The company has six industrial parks for office automation equipment in Shenzhen, Suzhou, Weihai, and Haiphong, Vietnam[121] - The automotive components business operates in six industrial parks located in Shenzhen, Zhongshan, Chongqing, Sichuan, Wuhan, and San Luis Potosí, Mexico[121] - The company operates as a vertically integrated one-stop precision manufacturing service provider, specializing in precision metal stamping, plastic injection molds, and automated assembly[136] Historical Development - The company was established in 1993, starting with metal stamping mold production and later expanding to metal stamping parts[125] - In 2005, the company was listed on the Main Board of the Hong Kong Stock Exchange[127] - The company expanded its business to plastic mold and parts manufacturing in 2004, establishing its first plastic production line in the Shenzhen (Shiyan) Electronics Industrial Park[127] - The company's Yihao (Guangming) Precision Manufacturing Industrial Park in Shenzhen began operations in Q4 2008[142] - The company acquired Chongqing Digital Mold Body Mold Co., Ltd. in mid-2011 as part of its strategic plan to expand into the automotive market[159] - The company's Shenzhen (Shiyan) Electronic Industrial Park's fourth factory building was completed[160] Market and Economic Outlook - The company expects global economic growth to be 2.9% in 2024, lower than 2023, and will continue to adopt a conservative financial strategy[105] - Global demand weakness and excessive terminal inventory led to a decline in the company's business, but order trends improved in the second half of 2023, with revenue starting to rise from October to December 2023[187] Automotive Business Performance - Shenzhen automotive parts business revenue decreased by 5.6% year-on-year in 2023 due to European inflation[98] - Mexico industrial park revenue grew by 23.8% in 2023, the best-performing region for automotive parts business[103] - The company's automotive parts business achieved stable growth, with China's overall car sales reaching 30.094 million units in 2023, a 12% year-on-year increase, and new energy vehicle sales reaching 9.495 million units, a 37.9% year-on-year increase[193] - The operating profit margin of the company's office automation equipment business increased to 7.9% in 2023, up from 5.6% in 2022, while the automotive parts business maintained an operating profit margin of 5.8%[194] Financial Expenses and Taxes - Unallocated expenses for the year ended December 31, 2023, included corporate expenses of HKD 44,847,000 and share-based payment expenses of HKD 10,454,000[195] - The company's financial income and expenses increased significantly in 2023 due to rising interest rates[196] - Income tax expenses for 2023 included current tax expenses of HKD 50,346,000 from Mainland China, HKD 7,402,000 from Vietnam, and HKD 16,195,000 from Mexico[199]
亿和控股(00838) - 2023 - 年度财报