Financial Performance - The turnover for the year ended December 31, 2022, was RMB 6,359,226 thousand, a decrease of 10.3% compared to RMB 7,091,644 thousand in 2021[16]. - Profit for the year was RMB 20,066 thousand, down 48.0% from RMB 38,561 thousand in 2021[16]. - Profit attributable to owners of the Company decreased by 43.0% to RMB 24,038 thousand from RMB 42,182 thousand in the previous year[16]. - Basic and diluted earnings per share fell by 42.9% to 2.21 RMB cents from 3.87 RMB cents in 2021[16]. - The Group's consolidated turnover for the year 2022 was approximately RMB6,359.2 million, a decrease of about 10.3% compared to RMB7,091.6 million in 2021[60]. - Profit attributable to owners of the Company for 2022 was approximately RMB24.0 million, down from RMB42.2 million in 2021[60]. - Basic and diluted earnings per share for 2022 were approximately RMB2.21 cents, compared to RMB3.87 cents in 2021[60]. - Gross profit for the Group was approximately RMB456.7 million, representing a decrease of approximately 11.3% compared to 2021[74]. - The overall gross profit margin decreased to approximately 7.2% in 2022, down from 7.3% in 2021, with the ODM business gross profit margin at approximately 7.4%[88]. - The net profit for the ODM business was approximately RMB108.2 million, a decrease from RMB171.7 million in 2021[68]. Business Operations - The Group focuses on R&D and application of lithium-ion battery technology, serving well-known mobile communication and internet technology companies[5]. - The main production base is located in Fuzhou, PRC, featuring strict quality control and advanced automated equipment[10]. - The Group aims to enhance market competitiveness through improved business operating efficiency and better cost control[10]. - The Group's main business, ODM, focused on lithium-ion battery production for 3C consumer electronics and smart hardware, establishing itself as a major supplier for smartphones and consumer electronics[28]. - The Group improved its quality control system and production efficiency, integrating resources and adding automation equipment to enhance production capacity[29]. - Two new factories were completed in April 2020, with parts put into use between 2021 and 2022, providing additional production capacity and optimizing the production process[29]. - The ODM business generated a turnover of approximately RMB6,024.8 million, accounting for approximately 94.7% of the Group's consolidated turnover[60]. - The bare battery cell business recorded a turnover of approximately RMB140.2 million, representing about 2.2% of the Group's consolidated turnover[60]. - Sales volume of mobile phone batteries decreased by approximately 19.3% to about 116 million units during the review period[64]. - The Group has actively expanded into other battery fields, increasing revenue from notebook batteries, tablet batteries, and other types of batteries[64]. Market Trends - Despite efforts to expand and attract more industry clients, the market demand for ODM battery products has not yet returned to pre-pandemic levels, with 2023 expected to remain challenging[34]. - The smartphone market has shown signs of saturation, but there is significant potential for development in terms of quality and technological innovation[35]. - In 2022, global smartphone shipments were 1.2 billion units, the lowest since 2013, representing a year-on-year decline of over 11%[45]. - Smartphone shipments in Mainland China were approximately 286 million units in 2022, down 13.2% year-on-year, marking the largest decline ever[45]. - The smartphone replacement cycle in China is expected to increase to 34 months due to factors such as rising prices and insufficient innovation[45]. - The Group anticipates that 2023 will remain a challenging year, with market demand for ODM battery products not yet recovering to pre-Pandemic levels[36]. - The global 5G terminal market is expected to achieve steady growth starting in 2024, driven by the promotion of mid-to-low end 5G terminals[46]. - Foldable mobile phones are expected to maintain high growth, with more ODM companies entering the market, leading to price stabilization[46]. Corporate Governance and Management - The company was listed on the Main Board of The Stock Exchange of Hong Kong Limited in December 2006[5]. - The Group's management discussion and analysis section provides insights into financial performance and strategic direction[172]. - The Board of Directors includes experienced professionals with extensive backgrounds in finance and management, enhancing corporate governance[171]. - The company has a diverse board with members holding various qualifications and extensive experience in finance and governance[156]. - The independent non-executive directors have served in multiple capacities across different companies listed on the Stock Exchange[153]. - The Group's employee remuneration is based on personal performance, professional qualifications, and market trends, ensuring compliance with market standards[135]. - The Group's management regularly reviews the remuneration policy and evaluates employee performance[135]. - The remuneration of Directors is recommended by the Remuneration Committee and approved by the Board, considering the Group's operating results and individual performance[136]. Environmental and Social Responsibility - The Group has invested more resources in environmental, social, and governance (ESG) management to enhance sustainable development[39]. - The annual report includes discussions on the Group's environmental policies and performance, as well as community investment initiatives[172]. - The Group's commitment to corporate social responsibility is highlighted through individual recognitions for contributions to poverty alleviation and ethnic unity[168]. Financial Position and Cash Flow - The Group recorded a net cash outflow from operating activities of approximately RMB177.9 million in 2022, compared to a net cash inflow of RMB152.9 million in 2021[109]. - As of December 31, 2022, the Group's cash and cash equivalents were approximately RMB200.9 million, a decrease of approximately RMB25.8 million year-on-year from RMB226.7 million in 2021[105]. - The Group's borrowings as of December 31, 2022, amounted to approximately RMB1,186.5 million, an increase from RMB1,175.0 million in 2021[106]. - The total debt to equity ratio was approximately 111.0% as of December 31, 2022, compared to 110.7% in 2021[112]. - The Group's net current assets increased by approximately 10.7% to RMB393.9 million as of December 31, 2022, from RMB355.9 million in 2021[114]. - The Group's net assets as of December 31, 2022, were approximately RMB1,069.3 million, reflecting a 0.7% increase from RMB1,061.4 million in 2021[118]. - The current ratio remained stable at approximately 1.1 times for both 2022 and 2021[113]. - The Group's capital commitments as of December 31, 2022, were approximately RMB19.1 million, up from RMB17.0 million in 2021, primarily for the acquisition of property, plant, and equipment[116]. Shareholder Returns - The Group decided not to recommend any final dividend for the year ended 31 December 2022 to preserve cash for working capital requirements[174]. - As of 31 December 2022, the Company's reserves available for distribution to shareholders amounted to approximately RMB962.6 million, an increase from RMB950.0 million in 2021[177]. - The company aims to enhance shareholder value through its share option scheme, which is designed to reward eligible participants[193][197]. - The company has retained earnings and other reserves as part of its distributable reserves, indicating a stable financial position[183].
锐信控股(01399) - 2022 - 年度财报