德昌电机控股(00179) - 2023 - 年度业绩

Financial Performance - Total revenue for the fiscal year ending March 31, 2023, was $3,646 million, a 6$716 million, up 2% compared to the previous year[2] - Adjusted EBITDA, excluding non-cash foreign exchange movements and restructuring costs, decreased by 10% to $220 million, representing 6.0$158 million, an 8% increase year-over-year[2] - Free cash flow from operations was $215 million, compared to a cash outflow of$132 million in the previous year[2] - The company's EBITDA for the fiscal year 22/23 was $232 million, compared to$222 million in the previous year[6] - Adjusted EBITDA, excluding non-cash foreign exchange movements and restructuring costs, was $220 million, representing 6.0$158 million, or $0.1733 per share on a fully diluted basis[6] - The company generated$215 million in free cash flow from operations, primarily due to reduced working capital and capital expenditures[6] - Revenue increased by $200.0 million or 6$3,646.1 million in FY22/23 compared to FY21/22[12] - Gross profit margin decreased to 19.6% in FY22/23 from 20.4% in FY21/22[10] - Adjusted EBITA decreased to $220.1 million in FY22/23 from$243.8 million in FY21/22, with a margin of 6.0% compared to 7.1%[10] - Net profit attributable to shareholders increased to $157.8 million in FY22/23 from$146.4 million in FY21/22[10] - Free cash flow from operations improved to $214.8 million in FY22/23 from a negative$132.4 million in FY21/22[10] - Net profit for FY22/23 was $146.4 million, with a reported net profit of$157.8 million after tax impacts[28] - Unrealized gains on other financial assets and liabilities netted a loss of $6.7 million[28] - Unrealized foreign exchange losses on monetary assets and liabilities netted a gain of$10.5 million[28] - Restructuring and related costs amounted to $1.4 million[28] - Net profit excluding non-cash foreign exchange changes and restructuring costs was$147.9 million, representing 4.1% of revenue[28] - Sales volume, price adjustments, and cost-saving measures contributed to a $40.0 million increase in net profit, partially offset by rising raw material and operational costs[31] - Foreign exchange fluctuations had a negative impact of$38.0 million on net profit, primarily due to the depreciation of the Euro[31] - Gross margin decreased from 20.4% in FY21/22 to 19.6% in FY22/23, with an adjusted gross margin of 20.1% excluding foreign exchange impacts[31] Revenue by Business Segment - The Automotive Products Group achieved revenue of $2,914 million, a 16$732 million, accounting for 20% of the company's total revenue, with a 7% decline excluding foreign exchange impacts and a prior-year acquisition[4] - Automotive product group revenue increased by $269.4 million or 10$2,913.7 million in FY22/23[13] - Industrial and commercial product group revenue decreased by $69.4 million or 9$732.4 million in FY22/23[13] - Automotive product group revenue increased by 16% YoY, excluding FX impact and the acquisition of Zimmermann, compared to a 9% increase in global light vehicle production[17] - Asia revenue for the automotive product group grew by 13%, driven by new business wins, increased sales, and growth in China's new energy vehicle market[17] - Europe revenue for the automotive product group rose by 17%, supported by expanded production on recently acquired customer platforms[17] - Americas revenue for the automotive product group increased by 19%, benefiting from normalized production plans post-semiconductor shortages and higher sales from new business wins[17] - Industrial and commercial product group revenue declined by 7% YoY, excluding FX impact and acquisitions, due to reduced demand for home-related products and inflationary pressures[20] - Asia revenue for the industrial and commercial product group fell by 26%, impacted by reduced demand for small home appliances and entertainment products in Europe and the Americas[21] - Europe revenue for the industrial and commercial product group decreased by 2%, with growth in beverage equipment and semiconductor-related products offset by declines in home-related products[21] - Americas revenue for the industrial and commercial product group grew by 9%, driven by increased demand in ventilation, automation, and medical equipment markets[23] - The acquisition of Pendix GmbH contributed $4.6 million to the industrial and commercial product group's revenue in FY22/23[22] Cash Flow and Financial Position - Cash reserves stood at$409 million as of March 31, 2023, with a net debt-to-capital ratio of 16%[2] - The company proposed a final dividend of 34 HK cents (4.36 US cents) per share, bringing the total dividend for the year to a 50% increase compared to the previous year[2] - The company recommended a final dividend of 34 HK cents per share, bringing the total annual dividend to 51 HK cents per share, equivalent to 6.54 US cents per share[6] - Total debt to capital ratio remained stable at 16% as of March 31, 2023[10] - Enterprise value to adjusted EBITDA ratio decreased to 2.5 in FY22/23 from 3.0 in FY21/22[10] - Interest coverage ratio decreased to 9.8 in FY22/23 from 11.9 in FY21/22[10] - Inventory decreased by $58.5 million to$589.0 million, with inventory days reduced from 75 to 66 days[35] - Accounts receivable decreased by $26.3 million to$808.2 million, with receivable days reduced from 69 to 64 days[35] - Free cash flow for FY22/23 was $214.8 million, a significant improvement from a free cash outflow of$132.4 million in FY21/22[39] - Operating working capital improved by $27.5 million due to management actions to control working capital needs[39] - Capital expenditures decreased by$89.8 million to $226.6 million as the company focused on improving asset utilization and stricter capital allocation[39] - The company acquired an 80$20.3 million and the remaining 20% non-controlling interest in Halla Stackpole for $50.8 million[40] - Net debt decreased by$80.1 million to $65.3 million as of March 31, 2023[46] - Available unused credit facilities totaled$759.0 million as of March 31, 2023[44] - The company maintained stable investment-grade credit ratings from Moody's (Baa1) and S&P (BBB)[43] - Cash and cash equivalents increased by $63.3 million to$408.7 million as of March 31, 2023[44] - Income tax paid decreased by $12.1 million to$29.3 million due to lower taxable profits in the prior year[39] - The company invested $1.5 million in the joint venture Lean AI during FY22/23[40] - Loans decreased by$16.8 million to $474.0 million as of March 31, 2023, with a$69.0 million credit facility from HSBC for refinancing[49] - Total debt to capital ratio remained stable at 16% as of March 31, 2023, with total debt to adjusted EBITDA ratio at 1.3x[51] - Enterprise value to adjusted EBITDA ratio decreased from 3.0x in 2022 to 2.5x in 2023[51] - Interest coverage ratio was 9.8x as of March 31, 2023, compared to 11.9x in 2022[51] - Final dividend for FY22/23 proposed at 34 HK cents per share, equivalent to $39.9 million, with a scrip dividend option[52] - Interim dividend for FY22/23 was 17 HK cents per share, equivalent to$19.8 million, with $14.6 million settled via new shares and$5.2 million in cash[52] - Foreign exchange contracts' fair value decreased by $11.1 million to$216.2 million as of March 31, 2023, due to reduced RMB contract gains[56] - Lease liabilities decreased by $34.1 million to$93.4 million as of March 31, 2023, with a $25.1 million reduction from lease payments and terminations[49] - The company maintains a prudent debt level and fully complies with financial covenants, including net debt to EBITDA and EBITDA to interest expense ratios[51] - Foreign exchange risk is managed through forward and structured foreign exchange contracts with maturities ranging from 1 to 66 months[55] - The company's ordinary and structured forward contracts for selling euros and buying dollars increased the financial assets reflecting cumulative fair value gains by$19.1 million to $133.1 million as of March 31, 2023, compared to$114.0 million on March 31, 2022[58] - Structured euro contracts decreased financial assets reflecting cumulative fair value gains by $7.2 million to$30.2 million as of March 31, 2023, compared to $37.4 million on March 31, 2022[58] - The total financial assets reflecting cumulative fair value gains from euro contracts increased by$11.9 million to $163.3 million as of March 31, 2023, compared to$151.4 million on March 31, 2022[58] - Ordinary forward contracts for RMB decreased financial assets reflecting cumulative fair value gains by $44.5 million to$44.9 million as of March 31, 2023, compared to $89.4 million on March 31, 2022[59] - Estimated future cash flow benefits from ordinary forward and cross-currency interest rate swap contracts are$222 million as of March 31, 2023, compared to $326 million on March 31, 2022[62] - Estimated future cash flow benefits from structured foreign exchange contracts are$33 million as of March 31, 2023, compared to $45 million on March 31, 2022[62] - Copper material spot price decreased by 14$8,935 per ton as of March 31, 2023, compared to $10,337 on March 31, 2022[63] - Aluminum material spot price decreased by 33$2,337 per ton as of March 31, 2023, compared to $3,503 on March 31, 2022[63] - The fair value net of commodity contracts decreased by$42.7 million, primarily due to declining commodity prices and contract consumption[64] - The total fair value net of commodity contracts decreased to $19.3 million as of March 31, 2023, compared to$62.0 million on March 31, 2022[65] Strategic Initiatives and Market Positioning - The company is well-positioned to gain market share in the automotive sector due to its investments in new products designed to support the transition to electric vehicles[4] - The company acquired the remaining 20% stake in Halla Stackpole Corporation, a powder metal business with strong market positions in China and South Korea[6] - In October 2022, the company completed the acquisition of an 80% stake in Pendix GmbH, a German company specializing in electric bicycle drive systems[6] - The company expects sales growth for the fiscal year 23/24 to be between 5% and 7%[8] - The company is highly susceptible to global economic and geopolitical environments, trade issues, and industry dynamics, which could impact product demand and financial performance[71] - The company is expanding its global business and seeking growth through acquisitions and joint ventures to mitigate risks from regional economic downturns[71] - The company is investing in cost-effective solutions and improving productivity to maintain competitiveness in core and expanding markets[74] - The company is focusing on innovation and intellectual property development to manage technological competitiveness and become a preferred supplier for customer-driven solutions[75] - The company is diversifying its customer and product portfolio through internal development and acquisitions to reduce dependency on major clients and products[77] - The company is implementing strategic planning and risk assessments aligned with technological development roadmaps, including automation and AI integration[75] - The company is continuously monitoring and expanding its global operations to adapt to political, regulatory, social, and economic changes in developing countries[77] - The company is managing contract risks through industry-standard terms and conditions, ensuring compliance and reducing potential losses[78] - The company is safeguarding its intellectual property through patent applications and enforcement actions against infringement[79] - The company is mitigating supply chain risks by strengthening regional production capabilities and gradually increasing localized supply chains[83] - The company is reducing logistics risks by optimizing international commercial terms for customer shipments and maintaining safety stock within regions[83] - The company is addressing business interruption risks by diversifying operational locations and consolidating production facilities and supply chains[84] - The company is managing human resource risks through talent retention strategies, automation, and digitalization to streamline operations[85] - The company is reducing tax risks by complying with tax laws and seeking professional advice in case of unclear tax regulations[88] - The company is lowering product liability risks by continuously improving engineering and manufacturing processes and conducting safety reviews[90] - The company is addressing energy risks by reducing operational energy intensity and seeking renewable energy sources[91] - The company is mitigating fraud risks through identity verification, proactive supervision, and robust internal controls[92] Sustainability and Environmental Initiatives - The company is committed to reducing carbon emissions, increasing renewable energy usage, and minimizing ecological impact[98] - The company is designing eco-friendly products and conducting carbon footprint assessments to meet sustainability requirements[100] - The company is committed to protecting the environment for future generations, focusing on energy and climate, waste, water resources, and emissions[106] - The company maintains a robust sustainability management system with clear goals, roles, responsibilities, accountability, and processes, overseen by the Board of Directors[108] - The Social Impact and Sustainability Committee, led by an Executive Director, is responsible for developing the company's sustainability culture, strategy, goals, and actions, aligning with stakeholder objectives[109] - The company ensures that all business units and functional departments incorporate sustainability strategies, key performance indicators, and goals into their strategic plans to achieve overall sustainability commitments[109] - The company has achieved a 53% reduction in global warming potential for selected products through material selection and renewable energy use in the design process[114] - The company avoided 383 tons of packaging material consumption by using recyclable packaging for four customers in China from 2020 to present[116] - The company's vertical integration helps reduce environmental impact by providing complete drive subsystems, including motors, switches, gears, and control electronics[110] - The company's products are designed to be energy-efficient, low-noise, and long-lasting, suitable for household appliances like lawn mowers, power tools, and air conditioners[110] - The company uses lifecycle assessment (LCA) and product carbon footprint (PCF) methods to track and reduce environmental impact throughout the product lifecycle[113] - The company's manufacturing facilities and internal testing labs comply with international standards, including ISO 9001, IATF 16949, and ISO 17025[115] - The company has received supplier quality excellence awards in Canada, China, and Europe for consistent performance in quality, delivery, and environmental compliance[115] - The company focuses on reducing consumption, reusing materials, and recycling waste in its manufacturing processes to minimize environmental impact[116] - The company is exploring opportunities to expand the use of recyclable packaging to more customers[116] - The company aims to develop new products with optimized PCF, LCA, and environmental product declarations[114] - 15 operational sites across 10 countries are now using 100% renewable energy, increasing the company's renewable energy usage to 22% (excluding grid-mixed renewables) and 40% (including grid-mixed renewables)[121] - The company installed 6,600 solar panels at its Jiangmen, China facility, expected to generate over 3,700 MWh of renewable energy annually and reduce 2,200 tons of carbon emissions[122] - The company achieved a 21% reduction in Scope 1 and 2 absolute carbon emissions in FY22/23 compared to the FY20/21 baseline[120] - The company has set a new target to reduce operational carbon emissions by 42% by 2030 (Scope 1 and 2) and achieve net-zero emissions globally by 2050[120] - The company achieved zero waste to landfill in FY22/23, with 93% of waste being recycled, mostly from production materials such as steel, copper, and plastics[124][125] - All of the company's production facilities (100%) are ISO 14001:2015 certified, and 11 facilities, including its largest, are ISO 50001:2018 certified for energy management[118] - Water consumption decreased by 7% in FY22/23, with water intensity per revenue dropping by 12% due to water-saving initiatives and recycling projects[126] - VOC emissions were below permitted levels, with measures taken to further reduce emissions, including using lower VOC alternatives and implementing exhaust control systems[127] - The company recycles and reuses epoxy and copper powders from production processes to reduce particulate emissions[127] - The company focuses on reducing greenhouse gas emissions and energy consumption in its production processes to contribute to sustainability[135] Corporate Governance and Ethics - The company emphasizes trust and transparency, adhering to high standards of integrity, openness, and fairness, with strategies and policies addressing corporate governance, ethics, compliance, data protection, and supply chain[106] - The company integrates human rights and labor rights into its business code, promoting diversity and equal opportunities, and ensuring compliance with labor laws and regulations to protect employee well-being[101] - The company's Code of Ethics and Business Conduct guides employees in making ethical decisions and maintaining legal and ethical standards, with no significant non-compliance with laws and regulations reported in the 22/23 fiscal year[168] - The Board of Directors consists of 2 executive directors and 9