Financial Performance - For the fiscal year ending December 31, 2024, the company reported total revenue of $5,702,949 thousand, a decrease of 11.5% from $6,445,798 thousand in 2023[3]. - Gross profit for the year was $134,640 thousand, up 22.6% from $109,816 thousand in the previous year[3]. - The company incurred a net loss of $20,192 thousand, significantly improved from a loss of $120,773 thousand in 2023[3]. - Basic and diluted loss per share was $0.26, compared to $1.52 in the previous year[4]. - The company reported a pre-tax profit of $33,700,000 for 2024, compared to $25,889,000 in 2023[18]. - The income tax expense for 2024 was $30,703,000, an increase from $17,484,000 in 2023[20]. - The net loss attributable to shareholders was $20.3 million, an improvement from a net loss of $120.7 million in the same period last year, due to enhanced operational efficiency[68]. - The return on equity (ROE) for the period was -1.4%, an improvement from -7.7% in the same period last year, primarily due to reduced losses. The basic loss per share was $0.26[72]. Revenue Breakdown - Revenue from the Asia segment decreased to $2,597,525,000 in 2024 from $3,798,328,000 in 2023, representing a decline of 31.6%[14]. - The Europe segment reported revenue of $1,174,562,000 in 2024, up from $1,050,945,000 in 2023, an increase of 11.7%[14]. - The Americas segment saw revenue increase to $1,930,862,000 in 2024 from $1,596,525,000 in 2023, a growth of 20.9%[14]. - The total segment profit for 2024 was $119,523,000, compared to a loss of $9,549,000 in 2023[14]. Asset and Liability Changes - Total assets decreased to $3,024,727 thousand from $3,458,939 thousand, a decline of 12.6%[5]. - Cash and cash equivalents decreased to $1,516,241 thousand from $1,845,323 thousand, a reduction of 17.9%[5]. - The company’s total equity decreased to $1,463,663 thousand from $1,561,372 thousand, a decline of 6.3%[6]. - Total liabilities decreased to $2,358,360,000 in 2024 from $2,758,064,000 in 2023, a decline of 14.5%[15]. Operational Efficiency and Cost Management - Research and development expenses decreased to $49,965 thousand from $57,108 thousand, reflecting a reduction of 12.5%[3]. - Operating expenses decreased to $142.3 million from $219.4 million, a reduction of $77.1 million, attributed to workforce adjustments and restructuring efforts[68]. - The company is focusing on high-margin industries and clients, terminating unprofitable businesses, and restructuring underperforming operations to enhance efficiency[71]. - Cost-cutting measures are expected to enhance efficiency and maintain financial flexibility, leading to improved financial performance in the first half of 2025 compared to the same period last year[136]. Market and Competitive Landscape - The company is facing competitive pressure in the EMS industry due to overcapacity among peers, leading to price declines despite a normalization of the market and reduced material costs[47]. - The smartphone market showed signs of recovery in 2024 due to inventory replenishment, but intense competition in China and geopolitical issues impacted sales significantly[50]. - The overall smartphone market is experiencing pressure from economic and geopolitical factors, leading to intensified competition and profit erosion[84]. - The geopolitical situation, including the Russia-Ukraine conflict and U.S.-China tensions, is reshaping international trade and impacting supply chains[133]. Strategic Initiatives and Future Outlook - The company aims to optimize capacity utilization while focusing on cost reduction, consolidating locations, and restructuring operations due to the decline in profitability from mainland China operations[45]. - The company is strategically expanding its global footprint with operations in China, India, Vietnam, Taiwan, Mexico, and the United States to maximize production value and enhance supply chain management[47]. - The company is diversifying its business strategy to reduce reliance on mobile business and improve its product portfolio, focusing on smart manufacturing, automotive electronics, and AI solutions[75]. - The company is actively seeking opportunities in smart automation manufacturing, particularly in the automotive and electronics sectors, and has launched an intelligent recycling robot in collaboration with an environmental company[78]. Employee and Governance Matters - The total number of employees in the group decreased to 31,568 as of December 31, 2024, down from 36,657 on December 31, 2023[63]. - The company is committed to employee development, focusing on attracting and retaining talent through competitive compensation, training, and career advancement opportunities[59]. - The company has implemented a performance-based compensation policy to reward good performance, contributions, and productivity[65]. - The company has established a clear division of responsibilities between the Chairman and the CEO to enhance board independence and management balance[143]. Compliance and Regulatory Environment - The company is monitoring compliance with global transfer pricing regulations to ensure operational efficiency and tax risk management[117]. - The implementation of the new VAT law in mainland China, effective January 1, 2026, may affect various business operations, necessitating close monitoring and adjustments to compliance strategies[110]. - The revised Company Law in mainland China will take effect on July 1, 2024, impacting corporate governance, capital contributions, and compliance costs for foreign-invested enterprises[111].
富智康集团(02038) - 2024 - 年度业绩