Financial Performance - For the six months ended June 30, 2023, revenue decreased by 15.1% to $1,784 million compared to $2,101 million in the same period of 2022[7]. - Gross profit declined by 19.4% to $283 million, resulting in a gross margin of 15.9%, down from 16.7% in the previous year[6]. - Operating profit fell by 60.8% to $47 million, leading to an operating margin of 2.6%, down from 5.7%[6]. - The net loss attributable to the company was $9 million, a significant decrease from a profit of $85 million in the same period last year, representing a 110.6% decline[7]. - Revenue for the first half of 2023 was $1,784 million, a decrease of 15.1% compared to $2,101 million in the same period of 2022[13]. - The company reported a loss of $9 million for the six months ended June 30, 2023, compared to a profit of $85 million for the same period in 2022, resulting in a profit margin decline from 4.1% to -0.5%[21]. - The company reported a total comprehensive loss of $74,630 thousand for the period, compared to a loss of $23,050 thousand in the previous year[41]. Revenue Breakdown - Revenue from the smartphone segment decreased by 22.8% due to a decline in shipments of high-end smartphones[10]. - Revenue from the network infrastructure segment dropped by 41.3%, impacted by inventory destocking in the server downstream[10]. - Revenue from the computer and consumer electronics segment decreased by 6.6%, despite opportunities in acoustic components[10]. - Revenue from the electric vehicle segment decreased by 5.9% due to product updates affecting component sales[10]. - Revenue from system terminal products increased by 1.3%, driven by higher demand for wireless charging products in new smartwatches[10]. - Smartphone revenue decreased by 22.8% to $445.9 million, primarily due to a decline in shipments of high-end smartphones[14]. - Network infrastructure revenue decreased by 41.3% to $218.9 million, impacted by changes in product mix and inventory destocking in the server downstream[15]. - Electric vehicle revenue decreased by 5.9% to $71.6 million, mainly due to product updates and reduced sales of automotive components[15]. - System terminal products revenue increased by 1.3% to $578.9 million, driven by higher demand for wireless charging products for new smartwatches[16]. Expenses and Costs - Total expenses for the six months ended June 30, 2023, amounted to $1,757,560 thousand, down 12.6% from $2,012,955 thousand in the prior year[82]. - The cost of goods sold was $1,052,310 thousand, a decrease of 13.3% from $1,213,514 thousand in the same period of 2022[82]. - R&D expenses increased by 2.2% to $139 million, attributed to higher costs related to molds and materials[18]. - Employee benefits expenses totaled $358 million for the six months ended June 30, 2023, down from $399 million for the same period in 2022, reflecting a reduction in workforce from 53,544 to 52,488 employees[32]. - Legal and professional expenses increased to $33,788 thousand, up 59.5% from $21,226 thousand in the same period of 2022[82]. Cash Flow and Liquidity - Cash and cash equivalents increased from $914 million as of December 31, 2022, to $1,384 million as of June 30, 2023, while total bank borrowings rose from $1,027 million to $1,402 million[22]. - The net cash flow from operating activities for the six months ended June 30, 2023, was $202,743 thousand, compared to $205,829 thousand for the same period in 2022[47]. - Cash and cash equivalents increased by $504,074 thousand for the six months ended June 30, 2023, compared to an increase of $131,160 thousand for the same period in 2022[47]. - The company incurred capital expenditures of $93,560 thousand for the purchase of property, plant, and equipment during the six months ended June 30, 2023[47]. Inventory and Receivables - The average inventory turnover days increased to 105 days, compared to 94 days in the previous year[8]. - Trade receivables decreased from $720 million as of December 31, 2022, to $615 million as of June 30, 2023, attributed to reduced product shipments from declining global demand for consumer electronics[27]. - Trade payables decreased from $661 million as of December 31, 2022, to $535 million as of June 30, 2023, mainly due to reduced procurement linked to lower global demand for consumer electronics[28]. - Inventory decreased to $792,037 thousand from $966,793 thousand, indicating a reduction in stock levels[42]. Strategic Initiatives - The company plans to strategically pursue opportunities in the electric vehicle market and expand its customer base through acquisitions[12]. - The overall market demand is expected to decline in the second half of 2023 due to economic uncertainties and inflation[12]. - The company aims to maintain product competitiveness and expand its global footprint despite a soft consumer electronics market[12]. Shareholder Information - The board did not declare any interim dividend for the six months ended June 30, 2023[36]. - The company did not declare any interim dividends for the six months ended June 30, 2023, consistent with the previous year[104]. - The company recognized share-based payment expenses of $862,000 for the six months ended June 30, 2023, down from $1,582,000 in the same period of 2022[122]. - The company had four subsidiaries in China eligible for a preferential income tax rate of 15% for the six months ended June 30, 2023[85]. Financial Position - Total assets as of June 30, 2023, amounted to $4,619,705 thousand, an increase from $4,547,183 thousand at the end of 2022[42]. - As of June 30, 2023, total equity amounted to $2,272,203 thousand, a decrease from $2,346,939 thousand as of January 1, 2023[44]. - The company’s total liabilities decreased from $979,030,000 to $798,852,000, a reduction of about 18.4%[120]. - The company reported total sales of $225,226,000 to related parties for the six months ended June 30, 2023, down from $296,672,000 in the same period of 2022[136].
FIT HON TENG(06088) - 2023 - 中期财报