Financial Performance - The company's total revenue for the year ended December 31, 2023, was $6,445.8 million, a decrease of 31.2% compared to $9,394.3 million in 2022[2]. - The gross profit for the year was $109.8 million, down from $191.9 million in the previous year, reflecting a gross margin decline[2]. - The net loss for the year was $120.8 million, compared to a net loss of $72.1 million in 2022, indicating a worsening financial performance[3]. - The basic loss per share for the year was $1.52, compared to a loss of $0.91 per share in the previous year, highlighting increased losses on a per-share basis[3]. - The total comprehensive loss for the year was $220.0 million, compared to a total comprehensive loss of $377.5 million in 2022, showing some improvement in overall financial health[3]. - The group reported a loss before tax of $99,904,000 in 2023, compared to a loss of $59,684,000 in 2022[13]. - The group recorded a pre-tax profit of approximately $6.2 million from the sale of properties in December 2022 and $78.5 million in April 2023[55]. - The group reported consolidated revenue of $2,677 million for the first half of 2023, a decrease of $1,448 million or 35.1% compared to $4,125 million in the same period last year[119]. - The company reported consolidated revenue of $6,446 million for the period, a decrease of $2,948 million or 31.4% compared to $9,394 million in the same period last year[125]. - The decline in sales was attributed to weak consumer demand amid a global economic slowdown, geopolitical uncertainties, and rising living costs[125]. Assets and Liabilities - Non-current assets decreased to $860.5 million in 2023 from $1,023.4 million in 2022, primarily due to a reduction in property, plant, and equipment[4]. - Current assets fell to $3,458.9 million in 2023, down from $4,486.9 million in 2022, driven by a decline in inventory and trade receivables[4]. - Total liabilities decreased to $2,736.0 million in 2023 from $3,708.4 million in 2022, reflecting improved financial management[4]. - The group's total assets decreased to $4,319,436,000 in 2023 from $5,510,290,000 in 2022, representing a decline of 21.6%[14]. - The total liabilities decreased to $1,643,013,000 in 2023 from $2,704,356,000 in 2022, indicating a reduction of approximately 39.2%[36]. Cash Flow and Liquidity - The company's cash and cash equivalents increased slightly to $1,845.3 million in 2023 from $1,825.1 million in 2022, indicating stable liquidity[4]. - Cash and bank deposits increased to $1,706,572,000 in 2023 from $1,660,599,000 in 2022, showing a growth of 2.8%[14]. - Cash received from factoring arrangements under financial institutions was $1,780,174,000 in 2023, down from $2,402,526,000 in 2022, indicating a decrease of about 26%[33]. Taxation and Deferred Tax - The income tax expense for the year was $20,869,000, compared to $12,451,000 in the previous year, reflecting an increase of approximately 67.9%[20]. - The effective tax rate for the company's subsidiaries in China is 25%, with certain subsidiaries eligible for a reduced rate of 15% due to high-tech enterprise certification[21]. - The total deferred tax liabilities were $11.24 million in 2023, significantly up from $3.75 million in 2022, resulting in a net deferred tax balance of $(7.55) million[29]. - The company reported unutilized tax losses of approximately $2.05 billion as of December 31, 2023, slightly down from $2.08 billion in 2022[30]. Operational Performance - The group has adopted new International Financial Reporting Standards (IFRS) effective from January 1, 2023, including IFRS 17 related to insurance contracts[6]. - The group has implemented IFRS 1 and IFRS Practice Statement 2 amendments, which clarify the disclosure of significant accounting policies, without major impact on financial performance[10]. - The group’s operations are categorized into three segments based on customer location: Asia, Europe, and the Americas[11]. - The group is focusing on cost reduction strategies to maintain profitability amid a challenging market[55]. - The group is actively restructuring its business to reduce idle assets and improve operational efficiency[55]. Market Conditions and Economic Outlook - Global economic growth is projected to slow from 3.5% in 2022 to 3% in 2023, significantly below historical averages[56]. - The global electronics industry continues to experience weak growth, with manufacturing output declining for seven consecutive months[56]. - The company faces various risks and uncertainties that could significantly impact actual performance, including geopolitical tensions and macroeconomic changes[49]. - The company is implementing a "China +1" strategy to mitigate risks associated with reliance on a single market[50]. - The company anticipates challenges related to customer demand fluctuations and potential delays in new projects[50]. Customer and Market Strategy - The company is focused on maintaining existing customer relationships while also seeking new clients amid competitive pressures[50]. - The company aims to diversify its revenue sources and reduce reliance on single customers and regions to mitigate concentrated risks[64]. - The company is actively expanding its customer base and has established a dedicated business development team to identify new clients with strong growth potential and financial stability[80]. - The company is exploring new business opportunities and strategies to maintain competitive differentiation in a challenging market environment[59]. Supply Chain Management - The company aims to enhance supply chain management through diversified sourcing and increased flexibility, which has become a key focus area[54]. - The company has implemented a comprehensive supply chain management system to mitigate risks associated with supply disruptions[96]. - The company continuously monitors material and component supply conditions and price fluctuations[96]. - The group has established contingency plans to address ongoing supply challenges and has shared relevant information with customers[97]. Employee and Corporate Governance - The company emphasizes the importance of employee development and retention, focusing on providing equal employment opportunities and competitive compensation[105]. - The company has achieved 100% compliance in timely payment of employee provident fund and retirement contributions[110]. - The company has a strong focus on corporate social responsibility, demonstrated by over 200 employees participating in a blood donation event[107]. - The total number of employees as of December 31, 2023, is 36,657, down from 44,055 on December 31, 2022[112]. Research and Development - Continuous investment in R&D is aimed at enhancing capabilities and supporting significant business growth opportunities[112]. - The company is committed to investing in research and development to improve its operational advantages[124]. - The company is enhancing its R&D capabilities and plans to invest more in local product design and development teams to strengthen its ODM service offerings[152]. Environmental and Social Responsibility - The company is committed to using environmentally friendly materials and technologies in its production processes[76]. - The company continues to prioritize environmental, social, and governance (ESG) measures, including hiring and promoting women employees[153]. Strategic Partnerships and Collaborations - The company has established strong after-sales services in North America, providing end-to-end value-added manufacturing and after-sales services covering the entire product lifecycle[172]. - The company is exploring opportunities in the MIH open electric vehicle alliance for product development and exports[155]. - The company is collaborating with a customer in the electric vehicle (EV) sector to manufacture LTE clusters for two-wheeled electric vehicles, with shipments expected to begin in early 2024[172].
富智康集团(02038) - 2023 - 年度业绩