Financial Performance - The company's revenue for the six months ended June 30, 2024, was $1,895,530,000, a decrease of 29.1% compared to $2,676,717,000 for the same period in 2023[13]. - The gross profit for the period was $28,622,000, significantly lower than the previous year's gross profit of $39,621,000, indicating a decline in profitability[2]. - The net loss for the period was $31,643,000, compared to a net loss of $49,835,000 in the same period last year, showing an improvement in loss[4]. - Total revenue for the six months ended June 30, 2024, was $1,895,530,000, a decrease of 29.2% from $2,676,717,000 in the same period of 2023[14]. - Revenue from the Asia segment was $1,067,385,000, down 43.0% from $1,874,505,000 year-over-year[14]. - The Americas segment reported revenue of $541,678,000, an increase of 18.8% compared to $455,733,000 in the previous year[14]. - The company recorded a loss before tax of $29,313,000, slightly improved from a loss of $29,601,000 in the same period last year[14]. - The net loss attributable to shareholders was $31,578,000, compared to a loss of $50,016,000 for the same period in 2023[21]. - Operating expenses for the period were $73.1 million, a decrease of $49.2 million from $122.3 million in the same period last year, attributed to layoffs and restructuring efforts[52]. - Other income, gains, and losses for the period amounted to $43.0 million, a decrease of $89.7 million year-on-year, primarily due to the absence of capital gains from property sales[52]. Assets and Liabilities - Total assets as of June 30, 2024, amounted to $3,840,184,000, an increase from $3,458,939,000 as of December 31, 2023[5]. - Current liabilities increased to $3,149,700,000 from $2,736,965,000, indicating a rise in short-term financial obligations[6]. - The company's cash and cash equivalents were $1,705,805,000, down from $1,845,323,000 at the end of 2023, reflecting a decrease in liquidity[5]. - The group reported total trade receivables of $843,562 million as of June 30, 2024, down from $958,516 million as of December 31, 2023[26]. - Total trade and other payables increased to $1,849,124 million as of June 30, 2024, from $1,643,013 million as of December 31, 2023[29]. - Bank borrowings rose to $865,800 million as of June 30, 2024, compared to $703,676 million as of December 31, 2023, with interest rates ranging from 5.88% to 8.07%[30]. Research and Development - Research and development expenses were $23,799,000, a decrease from $26,459,000 in the previous year[14]. - The company has implemented a "2+2" strategy to actively expand into automotive electronics, robotics, artificial intelligence, and next-generation communication technologies, achieving significant progress in these areas[35]. - Significant milestones were achieved in automotive electronics and AI robotics solutions, improving vehicle safety and efficiency[37]. - The company is investing in next-generation communication technologies, including LEO ground user terminals and 6G non-terrestrial network technologies[40]. Market and Strategic Focus - The global economic environment remains complex, with moderate growth but ongoing challenges, particularly in major economies like the US and China, which are experiencing uneven recovery patterns[36]. - The company acknowledges that its past operating performance has shown volatility and may continue to fluctuate significantly from one period to another[33]. - The company is diversifying its business strategy through 5G, IoV, AI, and next-generation communication technologies to reduce reliance on the smartphone market[57]. - The company is actively expanding overseas production capacity to meet customer demand and diversify its customer and product base[85]. Customer and Supplier Relations - The company's top five customers accounted for approximately 85.30% of total revenue during the first half of 2024[38]. - Revenue from Hon Hai Technology Group, including Hon Hai and Sharp Corporation, represented about 30.79% of total revenue[38]. - The top five suppliers represented about 44.6% of the company's total procurement, reflecting a strategic integration approach to ensure procurement efficiency and favorable commercial terms[41]. Employee and Organizational Development - Employee development is a key focus, with the company emphasizing equal employment opportunities, competitive compensation, and a supportive work environment to attract and retain talent[44]. - The total number of employees in the group was 44,519, an increase from 36,657 as of December 31, 2023[48]. - The company has implemented competitive compensation policies and annual bonuses to retain employees in a challenging labor market[48]. - The company has strengthened partnerships with universities and educational institutions to create a stable talent pipeline[47]. Governance and Compliance - The financial statements were prepared in accordance with International Financial Reporting Standards, ensuring compliance with accounting regulations[10]. - The audit committee has reviewed the unaudited consolidated financial statements for the period and recommended their approval to the board[90]. - The company has adhered to all provisions of the Corporate Governance Code, with the exception of the separation of roles between the Chairman and the CEO, which has been maintained since January 1, 2017[91]. - The Board has decided to appoint Mr. Chi Yu Yang as the Chairman and Mr. Lin Chia Yi as the CEO, effective July 1, 2024, to enhance corporate governance and ensure a balance of power[91]. Economic and Market Challenges - The company faces ongoing challenges from weak demand and market saturation, with a focus on high-margin sectors and cost-cutting measures[54]. - The company anticipates that the challenging conditions in the Asia division will persist into 2024, affecting performance and recovery[61]. - The ongoing geopolitical tensions and high inflation rates are expected to impact consumer spending and overall demand for smartphones[82]. - The ODM/OEM/EMS industry faces challenges such as rising domestic production costs and a shortage of skilled labor, impacting profitability[79].
富智康集团(02038) - 2024 - 中期业绩