BOE VARITRONIX(00710)2023-04-26 08:52Financial Performance - The company reported revenue of HKD 10,722 million for the year ended December 31, 2022, representing a 39% increase from HKD 7,738 million in 2021[12]. - EBITDA for the year was HKD 841 million, up 64% from HKD 513 million in the previous year[12]. - Shareholders' profit attributable to the company was HKD 582.5 million, an increase of 78% compared to HKD 327.8 million in 2021[12]. - Basic earnings per share rose to HKD 0.784 from HKD 0.451, while diluted earnings per share increased to HKD 0.778 from HKD 0.448[12]. - The company declared a final dividend of HKD 0.230 per share, up from HKD 0.150 per share in the previous year[12]. - Operating profit for the same period was HKD 670,000,000, representing an increase of HKD 320,000,000 or 91% year-on-year[36]. - Total assets as of December 31, 2022, amounted to HKD 8,283,000,000, an increase from HKD 5,543,000,000 in 2021[38]. - The group's cash flow from operating activities reached HKD 834 million in 2022, up from HKD 675 million in 2021[40]. Business Segments - The automotive display business generated revenue of HKD 9,577 million, a 47% increase from HKD 6,509 million in 2021, accounting for approximately 89% of the company's total revenue[21]. - The industrial display business recorded revenue of HKD 1,145 million, a decrease of 7% from HKD 1,228 million in 2021, accounting for about 11% of total revenue[23]. - In 2022, the company recorded revenue of HKD 7,495,000,000 in China, an increase of approximately 48% compared to 2021, accounting for 70% of total revenue[52]. - The European display business generated revenue of HKD 1,607,000,000, a 12% increase from 2021, representing 15% of total revenue[53]. - Revenue from South Korea reached HKD 397,000,000, up 19% from 2021, contributing 4% to total revenue[55]. - The Americas saw revenue of HKD 680,000,000, a significant increase of 56% compared to 2021, making up 6% of total revenue[56]. Market Strategy and Growth - The company plans to continue revenue growth in 2023, driven by increasing demand for TFT and touch screen display modules in China, the US, Europe, and Korea[24]. - The company is set to benefit from the implementation of China's national standard GB15084-2022 on July 1, 2023, which will create opportunities in the CMS market[24]. - The company anticipates an increase in revenue from high-end display products in the coming years, driven by customer demand for advanced user experiences in new energy vehicles[26]. - The company plans to expand its TFT and touch screen module production facilities in Chengdu, China, to capture upcoming business opportunities and increase market share[28]. - The company is focusing on developing advanced automotive display technologies, including AR-HUD and high-end Mini-LED displays, to enhance user interaction in smart vehicle cabins[29]. Sustainability and Environmental Impact - The company is actively pursuing sustainable development by installing solar power systems in factories to reduce carbon emissions and energy costs[29]. - The company committed to achieving carbon neutrality by 2050 and has established a roadmap with phased targets and strategies[62]. - The total greenhouse gas emissions (Scope 1 and Scope 2) amounted to approximately 60,154.81 tons of CO2 equivalent, with Scope 2 emissions from purchased electricity contributing about 60,050.01 tons[85]. - The company aims to maintain a carbon emission density of 0.95 tons of CO2 equivalent per 1,000 pieces as a target for future emissions reduction[85]. - The company has implemented automation equipment at the Heyuan factory, leading to increased electricity consumption and a 15.71% rise in Scope 2 emissions compared to 2021[85]. Corporate Governance - The company reported a commitment to high standards of corporate governance, ensuring accountability and transparency to balance the interests of shareholders, customers, creditors, employees, and other stakeholders[146]. - The board confirmed compliance with the corporate governance code as of December 31, 2022, adhering to the rules set forth in the Hong Kong Stock Exchange's listing rules[146]. - The company has adopted a code of conduct for securities trading by directors, confirming compliance with the standards throughout the review year[147]. - The company has established a corporate risk management framework to identify, assess, mitigate, and monitor key risks in an orderly manner[167]. - The audit committee reviewed the effectiveness of the group's risk management and internal control systems and deemed them sufficient and effective[166]. Employee Engagement and Training - The company reported a 15.9% employee turnover rate in Hong Kong, 41.3% in China, and 3.7% overseas for the year 2022[107]. - The total training hours in 2022 showed a significant increase compared to 2021, reflecting the recovery from pandemic impacts[109]. - The company provided a total of 47,045 hours of training for employees in 2022, focusing on various topics including professional development and legal regulations[110]. - The company received the "Happy Workplace" label for the 10th consecutive year, promoting a positive work environment[111]. - The group promotes a healthy lifestyle among employees through health and wellness seminars and various sports activities[108]. Community Engagement and Social Responsibility - The group made charitable donations exceeding HKD 180,000 in 2022[128]. - The group established a scholarship program in partnership with a local technical school, rewarding outstanding students and providing financial aid to those in need[129]. - The group participated in various charity and sports events, including the Standard Chartered Marathon and the Walk for Millions[131]. - The company has implemented a whistleblowing policy in place to report serious concerns regarding misconduct or fraud[126]. - The company emphasizes collaboration with suppliers to implement sustainable supply chain management practices[112].