Financial Performance - Revenue for 2021 was $4.49 billion, representing a 4.1% increase compared to $4.31 billion in 2020[10]. - Profit attributable to owners increased by 219% from $42.5 million in 2020 to $137.6 million in 2021[10]. - Gross profit margin improved to 15.0% in 2021 from 13.4% in 2020[9]. - Operating profit margin increased to 3.9% in 2021 from 2.9% in 2020[9]. - Total assets reached $5.01 billion in 2021, up from $4.64 billion in 2020[11]. - Current assets increased to $3.03 billion in 2021 from $2.85 billion in 2020[11]. - Total equity rose to $2.40 billion in 2021, compared to $2.19 billion in 2020[11]. - Cost of sales increased by 2.2% from $3,735 million in 2020 to $3,817 million in 2021, primarily due to increased revenue[36]. - Gross profit rose by 16% from $580 million in 2020 to $673 million in 2021, with gross margin increasing from 13.4% to 15%[36]. - Operating profit increased by 41.6% from $125 million in 2020 to $177 million in 2021, with operating margin rising from 2.9% to 3.9%[39]. - Income tax expense decreased by 58.1% from $74 million in 2020 to $31 million in 2021, with the effective tax rate dropping from 63.5% to 18.3%[41]. - Annual profit surged by 219% from $43 million in 2020 to $137 million in 2021, with profit margin increasing from 1.0% to 3.0%[42]. Revenue Segmentation - The mobile devices segment generated a revenue decrease of 15.8% due to the removal of wired earphones in new smartphone models, although Lightning cable products partially compensated for this[24]. - The communication infrastructure segment saw a revenue increase of 10.7% driven by the demand for CPU sockets and network interface products during the pandemic[24]. - Revenue from the computer and consumer electronics segment increased by 11.5% due to the rise in demand for laptops and tablets during remote work and online classes[24]. - The automotive, industrial, and medical segment experienced a revenue growth of 21.9% in 2021[24]. - The smart home segment's revenue decreased by 34.5% following the sale of the Linksys division on September 25, 2021[24]. - The smart accessories segment's revenue increased by 59.4% as physical retail channels reopened in Europe and the U.S.[24]. - Revenue from the mobile device segment decreased by 15.8% to $1,391 million, primarily due to the removal of wired headphone configurations in new smartphones[32]. - The communication infrastructure segment saw a revenue increase of 10.7% to $887 million, driven by increased demand for CPU sockets and network interface products during the pandemic[33]. - Revenue from the computer and consumer electronics segment increased by 11.5% to $976 million, supported by the ongoing trend of remote work and online learning[33]. - The automotive, industrial, and medical segment experienced a revenue increase of 21.9% to $176 million, attributed to rising demand for electric vehicles[33]. - The smart accessories segment grew significantly by 59.4% to $863 million, reflecting the increasing popularity of various smart accessory products[31]. - The smart home segment's revenue decreased by 34.5% to $196 million, following the sale of Linksys, which is no longer included in the group's financials[31]. Strategic Focus and Investments - The company aims to capture new market shares in rapidly developing industries[15]. - The company is focusing on high-margin product offerings and next-generation product lines to improve operational efficiency and financial performance[16]. - The acquisition of Sound Solutions International (SSI) expanded the company's micro-speaker and receiver module product offerings, enhancing its ODM acoustic business[21]. - The company aims to leverage opportunities in electric vehicles, 5G AIoT, and acoustic applications as key pillars of the future digital world[19]. - The company plans to strategically focus on mobile devices and the automotive, industrial, and medical markets for future growth opportunities[29]. - The company aims to invest more in developing vehicle electronic systems and key components for autonomous driving[29]. Corporate Governance - The board consists of three executive directors, one non-executive director, and three independent non-executive directors, ensuring compliance with listing rules regarding board composition[156]. - The board is committed to maintaining high standards of corporate governance, ensuring effective and transparent operations to protect shareholder interests[153]. - The company has adopted a standard code of conduct for securities trading by directors, ensuring compliance during the reporting period[167]. - The board has established four committees to oversee specific areas, including audit, remuneration, nomination, and environmental, social, and governance matters[154]. - The audit committee consists of three independent non-executive directors, responsible for overseeing the appointment and remuneration of external auditors[171]. - The company emphasizes corporate governance as a shared responsibility among directors, focusing on compliance with laws and regulations[170]. - The company will continue to review and monitor its corporate governance practices to ensure compliance with applicable codes[153]. Risk Management and Compliance - The company maintains a robust internal control and risk management system, subject to regular review by the audit committee[173]. - The Audit Committee reviews the integrity of financial statements and compliance with accounting standards and regulations[173]. - The company has established a whistleblowing policy to allow employees to report concerns confidentially regarding financial reporting and internal controls[184]. - The company has adopted a prudent foreign exchange hedging policy to manage risks associated with currency fluctuations[59]. Shareholder Information - As of December 31, 2021, the company’s major shareholder, Hon Hai, holds 5,179,557,888 shares, representing 72.61% of the total equity[99]. - The company did not recommend the payment of a final dividend for the fiscal year ending December 31, 2021[76]. - As of December 31, 2021, the company's distributable reserves were approximately $1,844 million, an increase from approximately $1,673 million as of December 31, 2020[82]. Employee and Management Information - Employee benefits expenses rose to $816 million from $750 million, with the workforce expanding from approximately 55,402 to 57,527 employees[58]. - The CEO, Sidney Lu, has over 40 years of experience in the industry, having held various positions at Foxconn since 1990[60]. - The COO and CFO, Lu Boqing, has extensive experience in strategic business development and previously served as CEO of Deloitte China[60]. - The management team is committed to leveraging their extensive industry experience to drive growth and innovation in the company's operations[71]. Environmental, Social, and Governance (ESG) Initiatives - The Environmental, Social, and Governance (ESG) Committee held 2 meetings during the reporting period to discuss the ESG report for the year ending December 31, 2020, and the implementation of ESG activities for 2021[199]. - The ESG Committee reviewed the significant ESG-related risks and matters, including strategic plans and policies[199].
FIT HON TENG(06088) - 2021 - 年度财报