德昌电机控股(00179) - 2024 - 年度业绩

Financial Performance - Total revenue for the fiscal year ending March 31, 2024, was $3,814 million, a 5$851 million[2] - Adjusted EBITDA increased by 56% to $343 million, representing 9.0$229 million[2] - Free cash flow from operations reached $422 million, doubling from$215 million in the previous year[2] - Revenue for the 23/24 fiscal year increased by $168.1 million or 5$3,814.2 million, with the automotive products segment contributing $3,210.2 million and the industrial and commercial products segment contributing$604.0 million[16][17] - Gross profit for the 23/24 fiscal year was $850.7 million, with a gross margin of 22.3$342.8 million, representing 9.0% of revenue, compared to $220.1 million and 6.0$229.2 million, with adjusted net profit at $252.0 million[14] - Free cash flow from operations for the 23/24 fiscal year was$422.4 million, significantly higher than the $214.8 million in the previous fiscal year[14] - Net profit attributable to shareholders increased by$71.4 million to $229.2 million in FY23/24, up from$157.8 million in FY22/23[30] - Revenue grew by $168.1 million to$3,814.2 million in FY23/24, compared to $3,646.1 million in FY22/23[30] - Gross profit margin improved to 22.3$104.1 million or 70% to $252.0 million in FY23/24, excluding non-cash foreign exchange losses and restructuring costs[32] - Operating profit rose by$86.6 million to $285.3 million in FY23/24, with an operating profit margin of 7.5$127.2 million increase in net profit, partially offset by contract price declines[36] - Foreign exchange movements, excluding unrealized gains/losses, added $21.7 million to net profit, driven by RMB depreciation and EUR appreciation[36] - Distribution and administrative expenses as a percentage of revenue decreased to 13.4$422.4 million in FY23/24 from $214.8 million in FY22/23[44] - Capital expenditures decreased by$41.7 million to $184.9 million in FY23/24[45] - The company invested$3.0 million in joint venture Qualisense in FY23/24[46] - The company borrowed a net amount of $87.7 million in FY23/24[46] - The company placed$60.0 million in a 6-month time deposit maturing in May 2024[46] - The company's cash position increased by $401.2 million to$809.9 million as of March 31, 2024, compared to $408.7 million on March 31, 2023[50] - The company's net cash position improved significantly, increasing by$314.4 million to $249.1 million as of March 31, 2024, from a net debt of$65.3 million on March 31, 2023[52] - Total available funds increased by $719.9 million to$1,887.6 million as of March 31, 2024, compared to $1,167.7 million on March 31, 2023[50] - The company's total debt increased by$86.8 million to $560.8 million as of March 31, 2024, compared to$474.0 million on March 31, 2023[55] - The company's total debt to capital ratio increased to 18% as of March 31, 2024, from 16% on March 31, 2023[62] - The company's interest coverage ratio improved to 10.8x as of March 31, 2024, from 9.8x on March 31, 2023[62] - The company's total debt to adjusted EBITDA ratio decreased to 1.1x as of March 31, 2024, from 1.3x on March 31, 2023[62] - The company's enterprise value to adjusted EBITDA ratio decreased to 1.9x as of March 31, 2024, from 2.5x on March 31, 2023[62] - The company's lease liabilities decreased by $19.5 million to$73.9 million as of March 31, 2024, compared to $93.4 million on March 31, 2023[61] - The company proposed a final dividend of 44 HK cents per share for the 23/24 fiscal year, equivalent to$51.9 million, compared to 34 HK cents per share for the 22/23 fiscal year[64] Revenue Breakdown by Product Group - Automotive product group revenue grew by 10% to $3,210 million, driven by strong demand in all major regions[4] - Industrial and commercial product group revenue declined by 19$604 million, impacted by post-pandemic consumer spending and inventory adjustments[6] - Automotive product group revenue increased by 10% YoY, contributing $303.2 million to the total revenue growth, while the industrial product group revenue decreased by$137.5 million[19] - The automotive product group's revenue in the Asia-Pacific region increased by 10%, and in the Americas, it rose by 9%, outperforming the regional light vehicle production growth rates of 8% and 6% respectively[22][23] - In Europe, the Middle East, and Africa, the automotive product group's revenue grew by 13%, compared to a 7% increase in light vehicle production in the region[23] - The automotive product group accounted for 84% of the company's total revenue in FY23/24, up from 80% in FY22/23[24] - The industrial product group's revenue decreased by 19% YoY, with declines of 13% in Asia-Pacific, 24% in Europe, the Middle East, and Africa, and 17% in the Americas[26][27] - The company's revenue was impacted by a $4.3 million decrease due to foreign exchange fluctuations, with the strengthening of the Euro against the US dollar being offset by the weakening of the Chinese Yuan and Canadian Dollar[19] - The company acquired Pendix GmbH in October 2022, which contributed to the revenue growth[19] - The automotive product group focused on developing and providing technological solutions to support the automotive industry's transition to new energy vehicles, weight reduction, and improved passenger safety and comfort[22] - The industrial product group saw growth in the piezoelectric motor segment due to strong demand for high-precision production equipment in semiconductor manufacturing, and in the medical application product segment due to the long-term need to reduce labor intensity in medical procedures[26] - The company's revenue is primarily settled in US dollars, Euros, Chinese Yuan, and Canadian dollars[19] Cash and Debt Management - Cash reserves stood at$810 million, with a year-end debt-to-capital ratio of 18%[2] - The company's cash position as of March 31, 2024, was $809.9 million, with total debt at$560.8 million, resulting in a net cash position of $249.1 million[14] - Working capital stood at 97$33.1 million and trade receivables decreasing by $28.7 million during FY23/24[39] - Inventory decreased by$37.5 million to $551.5 million as of March 31, 2024[40] - Accounts receivable decreased by$35.0 million to $773.2 million as of March 31, 2024[40] - Days of inventory on hand increased slightly from 66 days in 2023 to 68 days in 2024[40] - Days sales outstanding remained flat at 65 days as of March 31, 2024[40] - Days payable outstanding increased to 86 days as of March 31, 2024, due to temporary material consumption exceeding replenishment[40] Foreign Exchange and Commodity Contracts - Foreign exchange contracts' fair value net income decreased by$44.8 million to $171.4 million as of March 31, 2024, primarily due to reduced gains from RMB and Euro contracts, partially offset by increased net income from Hungarian Forint, Mexican Peso, and Polish Zloty contracts[68] - The fair value of ordinary Euro contracts decreased by$7.0 million to $126.1 million as of March 31, 2024, mainly due to contract utilization and Euro depreciation against the USD[71] - The fair value of structural Euro contracts decreased by$18.1 million to $12.1 million as of March 31, 2024, primarily due to contract utilization[72] - The fair value of RMB contracts decreased by$40.1 million to $4.8 million as of March 31, 2024, mainly due to the weakening of RMB against the USD[73] - Ordinary forward foreign exchange contracts and cross-currency interest rate swaps are expected to generate approximately$193 million in cash flow benefits as of March 31, 2024, compared to $222 million in the previous year[76] - Structural foreign exchange contracts are expected to generate approximately$13 million in cash flow benefits as of March 31, 2024, compared to $33 million in the previous year[76] - The fair value of commodity contracts decreased by$15.4 million, primarily due to contract utilization[76] - The fair value of copper contracts decreased by $11.4 million to$3.0 million as of March 31, 2024, mainly due to contract utilization[76] - Copper spot price decreased by 2% to $8,729 per ton as of March 31, 2024, compared to$8,935 in the previous year[77] - Iron ore spot price decreased by 20% to $101.28 per ton as of March 31, 2024, compared to$126.53 in the previous year[77] - Copper materials fair value net amount decreased by $11.4 million from$14.4 million in 2023 to $3.0 million in 2024[79] - Other commodities fair value net amount decreased by$4.0 million from $4.9 million in 2023 to$0.9 million in 2024[79] - Total fair value net amount decreased by $15.4 million from$19.3 million in 2023 to $3.9 million in 2024[79] - Weighted average contract price for copper materials increased from$6,000 in 2023 to $10,000 in 2024[80] Risk Management and Strategy - The company actively manages risks through a multi-layered strategy, including global positioning, strategic growth, diversification, and customer insights[85] - The company's risk management process includes identifying potential risks, assessing and prioritizing risks, and integrating risk management into workflows and corporate culture[82] - The company's strategy includes optimizing production capacity, managing resource burdens, and continuous investment for long-term growth[85] - The company's risk management steering committee, led by the CEO, includes key executives and focuses on quarterly analysis and monitoring of risks[82] - The company's risk management approach includes global status, strategic growth, diversification, and customer insights to mitigate risks from global economic and geopolitical environments[85] - The company's risk management framework includes on-site supervision, capital expenditure review, and strategic evaluation for joint ventures or acquisitions[85] - The company faces intense competition in both its core and expansion markets, leading to significant pricing pressure and potential sales volatility[87] - The company is investing in cost-effective solutions, productivity improvements, and market insights to enhance competitiveness[87] - The company is actively developing innovative and cost-effective solutions while maintaining technological competitiveness through internal development and acquisitions[87] - The company is diversifying its customer and product portfolio to mitigate risks from technological and regulatory changes[87] - The company is expanding its global footprint to reduce reliance on any single country, ensuring agility and adaptability[90] - The company is reducing dependency on major clients and product lines by diversifying its customer base and product portfolio, with no single client accounting for more than 10% of total revenue[92] - The company is protecting its intellectual property through systematic collection, formalization, and registration of trade secrets and proprietary technologies[93] - The company is enhancing supply chain resilience by maintaining strong relationships with suppliers and exploring strategic insourcing opportunities[95] - The company is enhancing regional production capabilities to reduce reliance on global supply chains and shorten delivery times[96] - The company is focusing on localizing supply chains by prioritizing local suppliers and resources to simplify logistics[96] - The company is optimizing international commercial terms for customer shipments to improve transportation efficiency[96] - The company maintains safety stock within regions to buffer against potential logistics disruptions[96] - The company is developing regional operational footprints and diversifying supply chains to increase operational flexibility and reduce dependency on single locations[99] - The company is implementing information security protocols, including virus and malware protection, and identity and access management to mitigate cybersecurity risks[101] - The company is actively monitoring threats to promptly identify and address emerging security issues[101] - The company is reducing energy intensity in operations to mitigate risks from energy market inflation, shortages, and disruptions[106] - The company is continuously improving engineering and manufacturing processes to minimize quality issues and reduce product liability risks[105] - The company is implementing identity verification and robust business processes to reduce fraud risks, including vendor and employee impersonation[106] - The company is committed to reducing CO2 emissions, increasing the use of renewable energy, and improving energy efficiency in its operations[108] - The company has implemented measures to assess the carbon footprint of its value chain and aims to set CO2 reduction targets in this area[108] - The company is evaluating vulnerabilities to climate change and extreme weather events, exploring adaptation measures to enhance climate resilience[108] - The company provides products targeting zero-carbon and low-carbon applications, offering solutions that reduce barriers to equality and promote safety, health, and well-being[108] - The company designs environmentally friendly products and processes that consume minimal resources and energy during manufacturing and use[108] - The company conducts product carbon footprint and lifecycle assessments to actively reduce environmental impact[108] - The company ensures compliance with labor laws and regulations, safeguarding employee rights and promoting diversity and equal opportunities[110] - The company implements robust training and development programs to attract and retain talent, with employee engagement assessed every two years[110] - The company maintains a strong ethical tone from leadership, ensuring alignment of values, strategy, and organizational culture[110] - The company monitors the sustainability performance of its key suppliers, considering cost, quality, safety, environmental protection, social responsibility, and ethical behavior[110] - The company maintains an investment-grade credit rating and manages liquidity through ample cash reserves, standby credit facilities, and expected future operating cash flows to meet current and anticipated cash needs[112] - The company's sustainability framework focuses on five key areas: product innovation, environmental protection, employee development, community enrichment, and trust & transparency[112][113] - The company aims to develop new products with optimized Life Cycle Assessment (LCA), Product Carbon Footprint (PCF), and Environmental Product Declarations (EPD)[117] - The company's sustainability governance system empowers each business unit and employee to make a positive impact, with clear goals, roles, responsibilities, and accountability[114] - The company's sustainability activities are led by a committee chaired by an executive director and senior vice president, with monthly meetings to align business direction with stakeholder goals[115] - The company collaborates with customers to provide sustainable solutions, particularly in the automotive industry, supporting the green transition of the mobility sector[115] - The company focuses on developing energy-efficient, low-noise, and long-life products for household appliances, contributing to daily comfort and sustainability[115] - The company is committed to protecting the environment for future generations, with strategies to mitigate climate change risks and sustainably use natural resources[112] - The company integrates sustainability into all aspects of its organization, with all business and functional units responsible for contributing to sustainability goals[115] - The company's sustainability governance includes the board of directors, which is fully responsible for sustainability strategy and reporting, with expanded audit committee responsibilities[114] - Johnson Electric has over 400 automotive customers and more than 1,100 non-automotive customers, with no single customer accounting for more than 10% of total revenue[120] - The company has manufacturing and assembly facilities across 17 countries in 4 continents, enabling it to respond quickly to demand changes[120] - Johnson Electric uses sustainable materials, recycled materials, and renewable energy sources to reduce environmental impact in its manufacturing processes[120] - The company aims to improve material usage efficiency and minimize waste throughout the product lifecycle[120] - Johnson Electric has implemented a strong EH&S monitoring system and continuous improvement culture to support environmental responsibility[122] - The company's main environmental priorities are reducing carbon emissions, increasing renewable energy usage, improving energy efficiency, and reducing waste and pollution[123] - Johnson Electric integrates environmental protection considerations into all decisions, new facilities, products, and process designs[124] - 100% of the company's production sites are ISO 14001 certified, with 11 entities holding ISO 50001 certification, accounting for 52% of total energy consumption and 60% of total carbon emissions[126] - The company aims to use 100% renewable energy across all operations by 2025 where feasible, and has already increased renewable energy usage from 22% to 44% year-over-year[128] - Scope 1 and 2 carbon emissions have been reduced by 53% compared to the 20/21 fiscal year baseline, exceeding the 2030 target of a 42% reduction[128] - Energy intensity per sales decreased by 2% in the 23/24 fiscal year compared to the 19/20 baseline[129] - The company achieved zero waste to landfill for the second consecutive year in the 23/24 fiscal year, with a 7% reduction in waste intensity per sales compared to the 20/21 baseline[133] -