立讯精密(002475) - 2023 Q4 - 年度财报

Company Overview - The company's stock code is 002475 and it is listed on the Shenzhen Stock Exchange [7] - The company's registered address is in Shenzhen, Guangdong Province, and its office address is in Dongguan, Guangdong Province [7] - The company's website is https://www.luxshare-ict.com/ and its email is Public@luxshare-ict.com [7] - The company's unified social credit code is 91440300760482233Q [10] - The company has not changed its main business since its listing [10] - The company has not changed its controlling shareholder since its listing [10] Financial Performance - Revenue for 2023 reached 231.91 billion yuan, an increase of 8.35% compared to 2022 [12] - Net profit attributable to shareholders in 2023 was 10.95 billion yuan, up 19.53% year-on-year [12] - Operating cash flow surged by 116.89% to 27.61 billion yuan in 2023 [12] - Total assets grew by 9.17% to 161.99 billion yuan at the end of 2023 [12] - Q4 2023 revenue was 76.03 billion yuan, the highest among all quarters [15] - Q4 2023 net profit attributable to shareholders was 3.58 billion yuan, also the highest quarterly figure [15] - Non-recurring gains in 2023 included government subsidies of 791.10 million yuan and financial asset gains of 488.38 million yuan [16] Market Trends - The global smartphone market showed signs of recovery, with Q4 2023 shipments increasing by 8% to 319 million units [18] - The Chinese wearable device market grew by 7.5% in Q3 2023, with TWS耳机 shipments increasing by 10.6% [18] - The global optical module market is expected to grow at a CAGR of 11% from 2024 to 2028, driven by advancements in optical technology and increasing data center demands [19] - AI server shipments reached 1.2 million units in 2023, accounting for nearly 9% of total server shipments, with a year-on-year growth of 38.4% [19] - China's new energy vehicle (NEV) production and sales in 2023 reached 9.587 million and 9.495 million units, respectively, with year-on-year growth rates of 35.8% and 37.9% [20] - China's total vehicle exports in 2023 reached 4.91 million units, a 57.9% increase year-on-year, with NEV exports growing by 77.6% to 1.203 million units [20] Awards and Recognition - The company was ranked No. 1 among China's electronic component industry backbone enterprises in 2023 [21] - The company has been recognized with multiple awards, including being listed in the Fortune Global 500 and China's Top 500 Private Enterprises [21] Technology and Innovation - The company has implemented SAP, PLM, MES, and WMS systems to optimize its entire lifecycle management and production processes, enhancing efficiency and yield [30] - Liquid cooling technology, including cold plate and immersion cooling, is becoming a key solution for data center heat dissipation due to its efficiency and environmental benefits [19] - The company's machine vision technology is utilized for precision positioning, error detection, and AI-assisted inspection in its automated manufacturing processes [30] - R&D investment in the past three years totaled 23.278 billion yuan, with 8.189 billion yuan invested in the reporting period, and 1,527 new patents added in 2023, bringing the total to 6,202 patents [32] - The company has a nearly 20,000-strong R&D team, driving technological breakthroughs and innovation [34] Environmental and Sustainability - Clean energy usage reached 63% in the reporting period, exceeding the 2025 target of 50%, and greenhouse gas emissions were reduced by 1,100,057.45 tCO2e [33] - The company has established a carbon neutrality working group led by the board of directors, aiming to achieve carbon neutrality by 2050 [191] - The company reduced greenhouse gas emissions by 1,037,334.21 tons of CO2 equivalent through clean energy initiatives [191] - The company implemented 284 energy-saving projects, reducing greenhouse gas emissions by 89,691.80 tons of CO2 equivalent [191] Business Segments and Revenue - Revenue from automotive interconnect products and precision components grew by 50.46% to 9.25 billion yuan in 2023 [41] - Revenue from consumer electronics accounted for 85.03% of total revenue, reaching 197.18 billion yuan, a 9.75% increase year-over-year [41] - Domestic sales increased by 24.35% to 25.15 billion yuan, while overseas sales grew by 6.68% to 206.76 billion yuan [41] - The gross profit margin for consumer electronics decreased by 0.87% to 10.60% in 2023 [42] - Sales volume of computer interconnect products and precision components dropped by 47.93% to 339,436 KPCS in 2023 [43] - Sales volume of automotive interconnect products and precision components decreased by 10.59% to 289,181 thousand sets in 2023 [43] - Sales volume of communication interconnect products and precision components fell by 43.57% to 273,342 KPCS in 2023 [44] - The cost of goods sold for consumer electronics increased by 10.83% to 176.29 billion yuan in 2023 [45] - The company's inventory of consumer electronics decreased by 30.46% to 351,838 KPCS in 2023 [44] Global Expansion - The company has established mature production and R&D bases in Vietnam, India, Mexico, and Germany, in addition to domestic locations, enhancing global service capabilities and cost advantages [31] - The company established 12 new subsidiaries in 2023, including Luxshare Technologies International, Inc. and Luxshare Technologies (Vietnam) Co., Ltd., indicating significant market expansion [47] Customer and Supplier Concentration - The company's top 5 customers accounted for 82.44% of total annual sales, with the largest customer contributing 75.24% of total sales [49] - The top 5 suppliers accounted for 65.16% of total annual procurement, with the largest supplier contributing 61.89% [50] Expenses and Costs - Sales expenses increased by 6.93% year-over-year, primarily due to growth in employee salaries and benefits [51] - Management expenses rose by 9.20% year-over-year, mainly due to increased personnel costs and depreciation expenses [51] - Financial expenses decreased by 45.30% year-over-year, influenced by interest income and exchange rate fluctuations [51] - R&D expenses decreased by 3.06% year-over-year, with some R&D investments reclassified to management expenses [51] Product Development - The XC2C new energy battery pack harness assembly development project has been mass-produced, enhancing technological innovation and market share [52] - The ADAS and autonomous driving domain controller based on TDA4VM chip is in the sample trial production phase, aiming to expand the product line for new energy vehicles [52] - The R&D of liquid cooling systems for new energy vehicle charging guns is in the pilot stage, targeting improved safety and charging efficiency [52] - The company has developed a 140kW hydrogen fuel cell stack suitable for 18-ton heavy-duty trucks, expanding into new product forms and markets [54] - The 800G LPO optical transceiver module with ultra-low power consumption has been validated on major customer equipment, showing promising initial test results [54] - A single-phase immersion liquid cooling cabinet has been developed, achieving energy savings of over 95% and supporting a maximum server operating power of 8000W [54] - The temperature-sensing pipeline technology for liquid cooling systems has been patented, improving temperature measurement accuracy and reducing costs [54] - A two-phase immersion mining machine heat dissipation device has been developed, enhancing heat dissipation performance with up to 5 fans arranged for optimal airflow [54] - The company has completed the development of a PCIe6.0 CEM connector cable assembly, meeting SI testing requirements and positioning it as a key product for future markets [53] - The OSFP 224G interconnect solution has been developed, supporting single-channel 224G PAM4 rate and meeting IEEE802.3DJ specifications [53] - The OSFP 224G connector research and development is underway, with initial SI test data completed, aiming to explore the SI performance limits of 224G connectors [53] - The PCIe 6.0 connector for liquid cooling environments has been sampled and is undergoing reliability testing, meeting SFF-TA-1016 and PCIe6.0 specifications [53] - The NBOX development based on the Rockchip RK3588 chip is in the sample debugging phase, aiming to expand the product range in the smart driving sector [53] - The company has developed a centrifugal blower technology that improves the uniformity of the speed field at the outlet, increases air volume and pressure, and enhances gas flow performance, which is expected to significantly support revenue growth in the coming years [55] - A new product "Computer Accessories" cooling fan, model: 2B 12038-6000rpm, has been developed with a patented centrifugal blower technology, expected to enhance the company's competitiveness in the fan product market [55] - The company has developed a liquid cooling technology for electrical connectors, improving heat dissipation performance and reducing flow resistance, which is crucial for the company's strategic layout in the optical module liquid cooling product field [55] - A new product "Metal Products" water separator, model: 86.547.330mm, has been developed with a patented liquid cooling device, expected to significantly reduce on-site failure rates and maintenance costs compared to air cooling [55] - The company has developed a liquid cooling technology for energy storage batteries, enhancing the structural stability and load-bearing capacity of liquid cooling plates, which is expected to support revenue growth in the coming years [55] - The company has developed a new 3D vapor chamber cooling technology, which reduces thermal resistance and improves heat conduction efficiency, expected to significantly support future revenue growth [56] - A new ultra-thin smart AR glasses product has been developed, featuring diffraction waveguide and MicroLED technology, enhancing the company's competitiveness in the AR industry [56] - The company has successfully developed the world's thinnest PC VR headset with a 5K resolution, 75Hz/90Hz refresh rate, and 102° horizontal field of view, improving product competitiveness and reducing costs [56] - Multiple wearable device projects have been completed, including GPS positioning night running metronomes, UWB technology for car digital keys, and heart monitoring using acoustic sensors, all aimed at improving product functionality and performance [56] - A wireless charging case with automatic wake-up function has been developed, achieving UWB communication with positioning accuracy of less than 0.1M and data transfer rates of 1Gbit/s [57] - A solar-powered wireless Bluetooth headset has been developed, featuring solar charging reminders and energy-saving capabilities, enhancing the company's competitiveness in the Bluetooth headset market [57] - The company has invested in 3 production lines for the development of AI-powered Bluetooth headphones, with an annual production capacity of 2 million units, enhancing competitiveness and market potential [58] R&D and Innovation - R&D personnel increased by 3.49% to 19,063 in 2023, with a higher proportion of master's degree holders rising by 14.76% [58] - R&D expenditure decreased by 3.06% to RMB 8.19 billion in 2023, accounting for 3.53% of revenue, down 0.42 percentage points year-on-year [58] - The company plans to focus on R&D innovation, particularly in underlying technologies, new materials, and process development [79] - The company aims to leverage AI and digital applications to revolutionize product design, R&D, mass production, and testing [79] - In the communications sector, the company will continue to innovate in optical/electrical connections, liquid cooling, power supplies, and RF communications [81] - The company has established four major business segments in the automotive sector: wiring harnesses/connectors, smart cockpits, body electronics, and power management [81] Financial and Cash Flow - Operating cash flow increased significantly by 116.89% to RMB 27.61 billion, driven by accelerated customer payments and sales of strategic inventory [59] - Investment cash flow saw a 78.07% increase in inflows and a 60.22% increase in outflows, primarily due to financial product transactions [59] - Net cash flow from financing activities decreased by 50.10% to RMB 4.07 billion, reflecting changes in financing strategies [59] - Non-operating income included RMB 1.77 billion in investment gains, accounting for 13.75% of total profit, primarily from financial assets and joint ventures [60] - Asset impairment losses amounted to RMB -1.32 billion, mainly due to inventory and fixed asset depreciation [60] - Government subsidies contributed RMB 825.19 million to other income, representing 6.40% of total profit [60] - Cash and cash equivalents increased by 73.6% to RMB 33.62 billion, accounting for 20.75% of total assets, up from 13.05% at the beginning of the year, driven by increased cash reserves to support operations and investments [62] - Accounts receivable decreased by 9.7% to RMB 23.50 billion, representing 14.51% of total assets, down from 17.55% at the beginning of the year, due to improved customer collections [62] - Inventory decreased by 20.4% to RMB 29.76 billion, accounting for 18.37% of total assets, down from 25.18% at the beginning of the year, as initial inventory strategies led to sales realization [62] - Long-term equity investments increased by 111.6% to RMB 4.23 billion, representing 2.61% of total assets, up from 1.35% at the beginning of the year, due to equity method recognition of investment income from associates [62] - Short-term borrowings increased by 37.6% to RMB 20.51 billion, accounting for 12.66% of total assets, up from 10.05% at the beginning of the year, to supplement working capital for business expansion [62] - The fair value of financial assets increased by 9.6% to RMB 2.01 billion, driven by gains in trading financial assets and derivative financial assets [63] - Restricted assets totaled RMB 8.01 billion, including RMB 3.94 billion in cash and cash equivalents, RMB 635.80 million in fixed assets, and RMB 2.87 billion in other non-current assets [64][65] - Total investment in the reporting period decreased by 32.0% to RMB 793.38 million compared to the same period last year [66] - The fair value change loss for Dongni Electronics (603595) in the reporting period was -169,687,586.56 yuan, with a book value of 172,691,671.36 yuan at the end of the period [68] - The fair value change loss for Huaxida (430755) in the reporting period was -44,341,818.18 yuan, with a book value of 28,138,181.82 yuan at the end of the period [68] - The total fair value change loss for the period was -214,029,404.74 yuan, with a total book value of 200,829,853.18 yuan at the end of the period [68] - The fair value change gain for forward contracts in the reporting period was 16,825.61 thousand yuan, with a total investment of 216,022.35 thousand yuan at the end of the period [70] - The fair value change gain for options in the reporting period was 32,143.23 thousand yuan, with a total investment of 343,727.31 thousand yuan at the end of the period [70] - The total fair value change gain for derivative investments in the reporting period was 48,968.84 thousand yuan, with a total investment of 559,749.66 thousand yuan at the end of the period [70] - The total assets of Luxshare Precision Co., Ltd. were 84,503,050,646.45 yuan, with a net profit of 3,263,710,994.65 yuan [73] - The total assets of LianTao Electronics Co., Ltd. were 58,617,385,650.65 yuan, with a net profit of 1,114,706,521.54 yuan [73] - The total assets of Kunshan LianTao Electronics Co., Ltd. were 22,231,655,308.24 yuan, with a net profit of 569,846,213.47 yuan [73] - Revenue of subsidiary Luxcase Precision Technology (Vietnam) Co., Ltd. reached 626,431.2 million RMB [75] - Total assets of Luxcase Precision Technology (Vietnam) Co., Ltd. amounted to 35,394,696,727.13 RMB [75] - Net profit of Luxcase Precision Technology (Vietnam) Co., Ltd. was 14,807,257,564.66 RMB [75] - Total liabilities of Luxcase Precision Technology (Vietnam) Co., Ltd. stood at 79,079,113,772.15 RMB [75] - Operating income of Luxcase Precision Technology (Vietnam) Co., Ltd. was 2,117,124,152.49 RMB [75] - Net cash flow from operating activities for Luxcase Precision Technology (Vietnam) Co., Ltd. was 2,005,177,524.24 RMB [75] Corporate Governance and Shareholder Relations - The company's asset-liability ratio was 56.61% at the end of 2023, with plans to continue high-quality development and expand into new markets and projects in 2024 [82] - Overseas sales accounted for 89.16% of total revenue in 2023, with amounts of 14,345,285.02 million yuan, 19,380,364.69 million yuan, and 20,675,602.05 million yuan in 2021, 2022, and 2023 respectively [82] - The company faces macroeconomic risks due to global uncertainties, including high US interest rates, geopolitical tensions, weak international trade, and increased climate disasters [82] - Exchange rate fluctuations pose a risk as the company's overseas revenue is primarily settled in USD, with efforts to mitigate impact through foreign exchange derivatives [82] - Management risks are heightened due to the company's rapid expansion in consumer electronics, communications, and automotive sectors, requiring enhanced management capabilities and talent reserves [83] - Customer concentration risk is present, with a focus on