Financial Performance - Revenue for the six months ended June 30, 2023, was $1,784 million, a decrease of 15.1% compared to $2,101 million for the same period in 2022[2] - 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[2] - Basic loss per share attributable to owners of the company was $0.13 for the six months ended June 30, 2023, down from earnings of $1.23 per share for the same period in 2022[2] - The operating profit before tax for the six months ended June 30, 2023, was $7,525 thousand, compared to $107,581 thousand for the same period in 2022, indicating a significant drop of around 93%[13] - The gross profit for the six months ended June 30, 2023, was $350,839 thousand, compared to $283,154 thousand for the same period in 2022, showing an increase of approximately 23.8%[13] - The company reported a total tax expense of $16,204 thousand for the six months ended June 30, 2023, down from $22,095 thousand in the same period of 2022[23] - The net loss attributable to the company's owners for the six months ended June 30, 2023, was $(8,952) thousand, a significant decline from a profit of $85,117 thousand in the same period of 2022[25][27] Assets and Liabilities - Total assets as of June 30, 2023, amounted to $4,619 million, compared to $4,547 million as of December 31, 2022[6] - Total liabilities increased to $2,347 million as of June 30, 2023, from $2,200 million as of December 31, 2022[6] - Cash and cash equivalents were $1,384 million as of June 30, 2023, compared to $914 million as of December 31, 2022[5] - Inventory decreased to $792 million as of June 30, 2023, from $967 million as of December 31, 2022[5] - Trade receivables were $615 million as of June 30, 2023, down from $720 million as of December 31, 2022[5] - The company's total liabilities reached $2,347,502 thousand as of June 30, 2023, compared to $2,200,244 thousand at the end of 2022, indicating an increase of approximately 6.7%[18][19] - The division liabilities for semi-finished products were $730,704 thousand, while consumer goods liabilities were $156,537 thousand, totaling $887,241 thousand[18] Revenue Breakdown - Revenue from the smartphone segment was $445,883 thousand, down from $577,628 thousand in the previous year, reflecting a decrease of about 22.8%[15] - Revenue from the networking equipment segment decreased to $218,936 thousand from $373,151 thousand, a decline of approximately 41.4%[15] - Revenue from external customers in the United States was $952,956 thousand, slightly down from $969,903 thousand in the previous year, a decrease of about 1.0%[16] - The geographical revenue breakdown shows that China contributed $541,038 thousand, while Vietnam contributed $209,222 thousand for the six months ended June 30, 2023[21] - Revenue from smartphone components decreased by 22.8% for the six months ended June 30, 2023, due to a decline in high-end smartphone shipments[34] - Revenue from network infrastructure decreased by 41.3% for the six months ended June 30, 2023, impacted by inventory destocking in the server downstream[34] - Revenue from the electric vehicle market decreased by 5.9% for the six months ended June 30, 2023, due to changes in customer specifications[34] Operational Insights - The company continues to focus on the manufacturing and sales of mobile and wireless devices, connectors, and related products for the communications, computer, and automotive markets[7] - The company anticipates increased demand for electric vehicles and related infotainment products, which will drive market demand for power management and vehicle networking products[35] - The company expects overall performance in the network infrastructure business to improve starting in Q4 2023 due to recovering downstream demand[36] Corporate Governance and Compliance - The company has confirmed compliance with the standard code regarding securities trading by all directors for the six months ended June 30, 2023[63] - The company is committed to maintaining high standards of corporate governance and has complied with applicable codes[62] - The audit committee reviewed the unaudited interim consolidated financial information for the six months ended June 30, 2023[59] Strategic Initiatives - The company plans to continue investing in the electric vehicle market and seeks new applications for interconnect solutions through strategic acquisitions[36] - The board has approved a new strategic initiative to enhance customer experience, which is expected to drive a J% increase in customer retention rates[68] - Recent acquisitions are expected to enhance operational efficiency, with projected cost savings of F million annually[68]
FIT HON TENG(06088) - 2023 - 中期业绩