Financial Performance - In 2018, FIH Mobile Limited reported a revenue of $14,930 million, an increase of $2,850 million or 23.59% compared to $12,080 million in 2017[18]. - The company experienced a loss attributable to owners of $857 million in 2018, compared to a loss of $525 million in 2017, resulting in a basic loss per share of 10.57 cents[18]. - The group recorded a consolidated net loss of $348.57 million for the six months ended June 30, 2018[28]. - The group reported a significant increase in revenue, with a year-over-year growth of 15% in Q4 2023, reaching $1.2 billion[20]. - The company provided an optimistic outlook for the next fiscal year, projecting a revenue growth of 20%[22]. - The group reported a consolidated revenue of $14,930 million for the year ending December 31, 2018, an increase of $2,850 million or 23.59% compared to $12,080 million in the same period last year[38]. - The group reported a net loss of $857,121 thousand for the year, compared to a profit in the previous year[155]. - The total comprehensive loss for the year was $(1,042,280) thousand, indicating a significant decline from the previous year's performance[155]. Market Strategy and Operations - The company plans to focus on core business and reduce costs by terminating logistics and distribution operations, while also being cautious with its investment portfolio[16]. - The Chinese market, which has been a core performance driver, has been declining since 2017, with noticeable price and volume slowdowns in Q3 2018[16]. - FIH Mobile Limited anticipates healthy growth in manufacturing operations in India and Vietnam in 2019 to counterbalance the decline in the Chinese market[16]. - The company aims to invest more aggressively in 5G and other key areas to adapt to the evolving technology landscape and improve profitability in 2019[18]. - The company is adopting a streamlined and flexible approach to control manufacturing and operational costs in response to market challenges[17]. - The company will focus on innovative products and user experience enhancements, expecting a significant number of new products to be launched in 2019[17]. - The company has shifted its investment strategy to emphasize mobile-related hardware and software that supports the mobile ecosystem[16]. - The company is considering strategic acquisitions to enhance its product portfolio, with a budget of $100 million allocated for this purpose[21]. Customer and Supplier Relationships - The top five customers accounted for approximately 86.8% of the total revenue during the period, with three maintaining long-term relationships for over five years[32]. - Sales to Sharp Corporation generated approximately 6.44% of total revenue during the period, highlighting the close ties with the company's ultimate parent, Hon Hai[33]. - The company has established a partnership with a leading US internet client, which has now become one of the top five customers due to sales growth[31]. - The top five suppliers accounted for approximately 65.66% of the total procurement amount during the period, with one of the suppliers, Foxconn Group, representing about 7.35%[34]. Research and Development - The company is investing $50 million in R&D for new technologies, particularly in AI and machine learning[24]. - The group continues to invest in R&D to meet significant business growth opportunities, particularly in new technologies and materials[36]. - The company is focusing on improving product design, material procurement, and production management to enhance competitiveness and reduce costs[40]. Financial Management and Risk - The management highlighted potential volatility in future operating performance due to various factors including trade tensions and economic conditions[28]. - The company is focused on financial planning, risk management, and investor relations as part of its strategic initiatives[26]. - The group has established a robust internal control and enterprise risk management system to assess and monitor potential risks associated with reliance on major customers and suppliers[35]. - The group is actively managing underperforming accounts and improving market strategies to address profit and revenue challenges[43]. Environmental and Social Responsibility - The company has implemented ISO 14001 environmental management system standards across its production facilities in China, India, and Vietnam[92]. - The company actively promotes energy efficiency management and the use of renewable energy to reduce greenhouse gas emissions[92]. - The company’s waste management practices include recycling and converting waste into reusable resources, adhering to relevant environmental laws and regulations[92]. - The company is committed to sustainable development in its component business, driven by the increasing popularity of metal materials in smartphones[42]. Corporate Governance - The company has established an audit committee to review financial reporting procedures and internal controls, consisting of three independent non-executive directors[137]. - The independent auditor, Deloitte, has audited the consolidated financial statements and confirmed they reflect the group's financial position accurately as of December 31, 2018[139]. - The company has established indemnity provisions for directors and senior officers against legal liabilities incurred in their capacity[97]. Shareholder Information - The board of directors has approved a dividend increase of 10% for shareholders, reflecting strong financial performance[24]. - The company has not declared or recommended any dividends for the year ending December 31, 2018, and no dividends have been proposed since the end of the period[47]. - The existing share option plan allows for a total of 757,380,227 shares to be granted, representing approximately 9.22% of the company's issued shares as of the report date[127].
富智康集团(02038) - 2018 - 年度财报