德昌电机控股(00179) - 2024 - 年度财报

Financial Performance - Total revenue for the year reached $3.8 billion, with a net profit of$229 million[2] - Total revenue for the fiscal year ending March 31, 2024, was $3,814 million, a 5$851 million[17] - Adjusted EBITDA increased by 56% to $343 million, representing 9.0$229 million[17] - Adjusted net profit, excluding non-cash foreign exchange movements and restructuring costs, rose by 70% to $252 million[17] - Free cash flow from operations was$422 million, compared to $215 million in the previous year[17] - Revenue for the 23/24 fiscal year increased by$168.1 million or 5% to $3,814.2 million (22/23 fiscal year:$3,646.1 million)[58] - 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, up from $157.8 million in the previous fiscal year[57] - Free cash flow from operations for the 23/24 fiscal year was$422.4 million, nearly double the $214.8 million in the 22/23 fiscal year[57] - Cash and cash equivalents as of March 31, 2024, were$809.9 million, compared to $408.7 million as of March 31, 2023[57] - Total debt as of March 31, 2024, was$560.8 million, up from $474.0 million as of March 31, 2023[57] - The company's market capitalization as of March 31, 2024, was$1,294.6 million, up from $1,052.9 million as of March 31, 2023[57] - Adjusted EBITDA increased to$343 million, representing 9.0% of revenue, up from 6.0% last year[19] - Net profit attributable to shareholders rose by 45% to $229 million, with basic net profit at$252 million compared to $148 million last year[19] - The company's gross profit increased by 19$851 million, with gross margin improving from 19.6% to 22.3%[19] - Free cash flow from operations for the fiscal year totaled $422 million, with year-end cash reserves at$810 million[19] - Total debt to capital ratio stood at 18%, indicating a strong financial position[19] - The company proposed a final dividend of 44 HK cents per share (5.64 US cents), bringing the total dividend for the year to a 20% increase compared to the previous year[17] - The board recommended a final dividend of 44 HK cents per share, bringing the total annual dividend to 61 HK cents per share, a 20% increase from the previous year[19] - Final dividend for FY23/24 proposed at 44 HK cents per share, equivalent to $51.9 million, compared to 34 HK cents per share in FY22/23[91] - Interim dividend for FY23/24 maintained at 17 HK cents per share, equivalent to$20.1 million, with $15.0 million paid in cash and$5.1 million settled through issuance of new shares[91] Revenue Distribution and Market Performance - The company operates in 22 countries across 4 continents, serving 1,600 customers[2] - Automotive product group accounted for 84% of total revenue, while industrial and commercial products made up 16%[3] - Revenue distribution by region: Americas 34%, Asia-Pacific 35%, Europe, Middle East, and Africa 31%[3] - The Automotive Products Group, the largest operating segment, achieved revenue of $3,210 million, a 10$3,216.9 million in FY23/24, contributing 84% of total group revenue[59][61] - Industrial product group revenue decreased by 19% to $594.9 million in FY23/24, accounting for 16$3,814.2 million in FY23/24, with a $165.7 million increase from volume/mix and pricing[59][60] - Asia Pacific automotive revenue grew 10$6.7 million to group revenue in FY23/24[60] - Foreign exchange impact reduced group revenue by $4.3 million, with EUR strengthening offset by CNY and CAD weakening[60] Operational and Production Highlights - Daily production exceeds 4 million units of motor and drive-related products[2] - The company employs over 30,000 staff globally, including 1,600 engineers[2] - Strategic focus areas include innovation, investment in automation and digitalization, and building a flexible global production network[12] - The company has completed over a dozen acquisitions in the past two decades to complement technology and strengthen market position[13] - Key priorities include expanding market share in segment markets and maintaining competitive advantages[16] - The company expects low single-digit growth in sales for the 24/25 fiscal year, with a focus on expanding AI-driven quality assurance software[19] - The company is developing advanced integrated thermal management systems for electric vehicles, combining motors, valves, and pumps to optimize battery performance[19] - The company is increasing the use of digital tools and AI software in production and business support functions to enhance decision-making and operational efficiency[19] - TrueDrive DZC technology increases warehouse conveyor throughput by up to 250% and ensures 100% full-speed operation year-round[23] - VersaSort module enables precise sorting of packages as small as 50mm x 38mm[23] - The new lattice light-sheet microscope, powered by Nanomotion's motor expertise, operates at speeds ranging from 200 micrometers to 200 nanometers per second, capturing high-definition images of cellular behavior[25] - The Osprey lightweight electric oil pump for eAxles reduces product weight by 30% by replacing traditional aluminum with lighter plastic materials[29] - The integrated thermal management system (ITMS) for electric vehicles is 25% lighter and 30% smaller in volume compared to traditional systems, extending EV range by up to 20%[31] - The Power Door Opening (PDO) motor for electric vehicles enhances aerodynamics and reduces weight, extending EV range by an additional 5-10 kilometers[33] Sustainability and Environmental Initiatives - The company has reduced absolute carbon emissions by 53% compared to the baseline, exceeding its 2030 target[40] - Renewable energy now accounts for 44% of the company's total energy consumption[40] - The company aims to achieve a 42% reduction in Scope 1 and 2 carbon emissions by 2030 and net-zero emissions across the value chain by 2050[41] - The company plans to reduce water intensity by 30% by the 25/26 fiscal year compared to the 20/21 baseline[43] - The company maintains zero waste to landfill across its operations and aims to reduce total waste intensity by 10% and hazardous waste intensity by 20% by the 25/26 fiscal year[42] - All manufacturing facilities are ISO 14001 certified, and 11 operational facilities hold ISO 50001 certification[44] - The company has installed solar panels at its Zacatecas, Mexico facility, expected to cover 11% of the plant's electricity consumption[45] - The company has increased its renewable energy share in the energy mix to 44% and reduced energy, waste, and water intensity[40] - The company is committed to using 100% renewable energy for all operations by 2025 where feasible[41] - The company has set clear targets to reduce CO2 emissions, increase the use of renewable energy, and improve energy efficiency in its operations[122] - The company is assessing the carbon footprint of its value chain and plans to set CO2 reduction targets in this area[122] - The company is implementing site-specific plans to monitor and reduce waste generation, water consumption, and emissions, aiming to minimize ecological impact[122] - The company is evaluating the sustainability performance of its key suppliers to ensure supply chain sustainability[122] - The company is assessing vulnerabilities to climate change and extreme weather events, exploring adaptation measures to enhance climate resilience[122] - The company is designing eco-friendly products and processes that consume minimal resources and energy during manufacturing and use[122] - The company is conducting product carbon footprint and lifecycle assessments to ensure sustainability[122] - The company has reduced Scope 1 and Scope 2 carbon emissions by 53% compared to the 20/21 fiscal year baseline, exceeding the short-term target of a 42% reduction by 2030[136] - The company now uses 44% renewable energy, more than double the 22% from the previous year, with significant increases in Asia (24% to 55%) and the Americas (18% to 91%)[137] - The company aims to use 100% renewable energy for all operations by 2025 where feasible and reduce energy intensity per sales by 15% by 2030 compared to the 19/20 fiscal year baseline[136] - The company has 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 fiscal year baseline[140] - The company has reduced water intake intensity by 21% and water consumption intensity by 19% compared to the 20/21 fiscal year baseline, aiming for a 30% reduction by the 25/26 fiscal year[141] - The company is finalizing its Scope 3 carbon emissions inventory and plans to set new short- and long-term reduction targets aligned with the Science Based Targets initiative (SBTi)[137] - The company has installed solar panels at its Zacatecas, Mexico plant, generating 1,286 MWh annually, equivalent to 11% of the plant's total electricity consumption[137] - The company aims to reduce total waste intensity per sales by 10% and hazardous waste intensity per sales by 20% by the 25/26 fiscal year compared to the 20/21 fiscal year baseline[139] - The company's Jiangmen, China manufacturing plant was recognized as a "Zero Waste Enterprise" by the Jiangmen municipal government[140] - The company has maintained a 93% waste recycling rate, with most recycled materials coming from production, including steel, copper, and plastics[140] - The company's non-CO2 emissions in FY23/24 were 39 metric tons, a 26% reduction compared to the previous year[142] - VOC emissions were below permitted standards, with measures taken to reduce emissions by replacing VOC-containing materials and implementing exhaust control systems[142] Employee and Community Engagement - The company has launched the Healthy@JE program to promote employee well-being across physical, mental, social, environmental, and occupational dimensions[48] - The JETC program has trained 1,546 students since its inception, with 106 JETC trainees as of 2024[55] - The third JETC campus was officially launched in Chennai, India, in January 2024, marking a milestone in the company's mission to engage young people globally in engineering careers[53] - The company employs over 30,000 people globally as of March 31, 2024, distributed across Asia, EMEA, and the Americas[149] - The company has set goals to reduce business carbon emissions, use 100% renewable energy, and assess product carbon footprints to align with climate policies[145] - The company is focusing on providing products for zero-carbon and low-carbon applications, implementing product carbon footprint and lifecycle assessments[146] - The company has developed business continuity plans for production and suppliers, and diversified manufacturing and supply chain footprints to enhance resilience[144] - The company has implemented best practices for flood prevention and emergency preparedness procedures to mitigate risks from extreme weather events[143] - The company prioritizes reducing and eliminating gas emissions, with zero major violations of gas emission-related laws and regulations[142] - The company collects and reuses epoxy resin particles and copper powder from production processes to reduce particulate emissions[142] - The company emphasizes a strong safety culture and strict health and safety standards across all business locations[148] - Zero fatalities recorded in the 23/24 fiscal year[153] - 105 lost time accidents (LTAs) in the 23/24 fiscal year, with a rate of 0.2 per 200,000 working hours (industry average: 0.8)[154] - 85 recordable injuries in the 23/24 fiscal year, with a rate of 0.2 per 200,000 working hours (industry average: 2.3)[155] - Revised LTA numbers for 22/23, 21/22, and 20/21 fiscal years to align with OSHA guidelines[154] - 38 entities within the group have achieved ISO 45001 certification, covering 80% of production sites and 92% of employee working hours[153] - The group's EH&S policy emphasizes a safety-first culture, with training programs and risk assessments implemented across all facilities[151][152] - A three-step health and safety culture training program has been established to promote safety awareness and problem-solving among employees[151] - The group's EH&S management system includes standardized plans, procedures, and standards applicable to all factories, covering both employees and contractors[152] - Talent retention and development are prioritized, with monthly HR committee meetings focusing on talent mobility, succession planning, and leadership development[156] - High-potential employees are identified through regular assessments and provided with additional development opportunities, including 360-degree feedback and executive education programs[156] - 15 engineers from different departments have been assigned to international assignments lasting 12 to 24 months under the Engineering International Assignment program[157] - The JE International Engineering Trainee Program offers recent engineering graduates a two-year opportunity to work in different company facilities worldwide, with the second year in China[157] - A team achieved over 40% cycle time improvement through an innovative automation production solution under the in-job training program[158] - The company provides over 360 courses on the "Learning in Motion" global learning platform, covering business compliance and soft skills[159] - The JEDi program promotes digital transformation by encouraging employees to gain expertise in digital applications, with sponsored training and exam fees[159] - The company has implemented a global "work from home" policy to help employees balance work and family responsibilities[160] - The "JE in Motion" internal communication platform facilitates leadership messaging and knowledge sharing among global employees[161] - The company organizes an annual learning month to foster a culture of learning across its organization[158] - The Leadership Essentials program supports employees in developing key skills for managerial roles[157] - The company emphasizes performance discussions to ensure employees receive recognition and constructive feedback[157] - Annual bonus is a significant component of employee compensation for over 80% of employees, including all management and executive management teams, linked to achieving revenue, profitability, liquidity, and sustainability targets[162] - The company has a long-term share incentive plan for senior executives, with a significant portion of performance-based share units that vest upon meeting stringent financial conditions[162] - Employees reported 11 whistleblowing cases in the 23/24 fiscal year, all of which were investigated confidentially, with appropriate disciplinary actions taken if violations were found[163] - The company conducted a social compliance and human rights audit in Hong Kong during the 23/24 fiscal year, confirming that all policies and procedures related to human rights and employee health and safety comply with legal requirements, with no major non-compliance issues identified[163] - The latest JETC campus in Chennai, India, officially opened in January 2024, marking another milestone in the company's mission to embrace engineering career opportunities globally[164] - Since its inception, 1,546 students have graduated from the JETC program in China and Mexico, providing the company with a pool of well-educated future employees[164] - In Serbia, the company collaborates with a local technical high school, offering facilities and staff to help students receive high-quality technical education, similar to the JETC concept[164] - The "Little Engineers" program targets children aged 6 to 12, encouraging early interest in STEM subjects through DIY toy kits powered by the company's motors[164] - The company has trained 106 JETC students in Zacatecas, Mexico, as of 2024[166] - The company's new "J-Bot" toy car workshops were held at factories worldwide, attracting approximately 200 children[167] - Over 185 JEnerations activities were organized this year, including charity walks in Hong Kong, volunteer services at a children's rehabilitation center and elderly center in China, and career advice sessions for students in the UK[167] - The company was awarded the "5 Years+ Caring Company" award by the Hong Kong Council of Social Service for its long-term commitment to corporate social responsibility[168] Corporate Governance and Risk Management - The company has established a comprehensive risk management framework led by the Enterprise Risk Management Steering Committee, which includes key executives and focuses on identifying, assessing, and mitigating risks[103] - The company faces significant risks from global economic and geopolitical instability, including potential disruptions from events like pandemics or international conflicts[105] - Consumer behavior shifts and trade disputes, particularly between the US and China, could directly impact the company's performance and supply chain[105] - The company is implementing a multi-faceted strategy to manage risks, including global positioning, strategic growth, and diversification of customer and product portfolios[105] - The company is closely monitoring new facility construction and expansion or closure of existing facilities to optimize production capacity[105] - Capital expenditure and investments are critical for the company's long-term growth, with strict approval processes in place for all capital expenditures[105] - The company conducts thorough evaluations before entering joint ventures or acquiring new businesses, considering commercial potential and