SUNNY OPTICAL(HK:02382)2024-03-20 12:41Financial Performance - The company's revenue for the year ended December 31, 2023, was approximately RMB 31,681,300,000, a decrease of about 4.6% compared to the previous year[1]. - Gross profit for the same period was approximately RMB 4,590,400,000, down approximately 30.5%, with a gross margin of about 14.5%, a decline of approximately 5.4 percentage points year-on-year[1]. - Profit attributable to shareholders for the year was approximately RMB 1,099,400,000, representing a decrease of about 54.3% compared to the previous year[1]. - Total comprehensive income for the year was RMB 1,123,097,000, down from RMB 2,474,317,000 in the previous year[3]. - The net profit for the year ended December 31, 2023, was approximately RMB 1,150,300,000, a decrease of about 53.5% compared to the previous year[82]. - The net profit margin for the year ended December 31, 2023, was approximately 3.6%, down from about 7.5% in 2022[82]. - Basic and diluted earnings per share for 2023 were RMB 1,099,415, a decrease from RMB 2,407,796 in 2022[39]. Revenue Breakdown - Total revenue for the year ended December 31, 2023, was RMB 31,681,261,000, with contributions from optical components, optoelectronic products, and optical instruments being RMB 9,555,109,000, RMB 21,599,398,000, and RMB 526,754,000 respectively[12][18]. - Revenue from the Chinese market amounted to RMB 21,073,990,000, representing approximately 66.5% of total revenue[13][18]. - Revenue from optical components business was approximately RMB 9.56 billion, a slight increase of about 0.9%, driven by growth in automotive lens sales as supply constraints eased[76]. - Revenue from the optical instruments business increased by approximately 30.5% to RMB 526.8 million, attributed to rising demand in domestic industrial and medical sectors[76]. - Revenue from optoelectronic products decreased from RMB 23,325,866,000 in 2022 to RMB 21,599,398,000 in 2023, indicating a decline of about 7.4%[15][12]. Expenses and Costs - Research and development expenses for the year were RMB 2,566,475,000, compared to RMB 2,803,398,000 in the previous year[2]. - The cost of raw materials recognized as expenses was RMB 21,907,801,000 in 2023, compared to RMB 21,451,988,000 in 2022, showing an increase of about 2.1%[37]. - Sales and distribution expenses increased by approximately 17.7% to RMB 415.1 million, representing about 1.3% of total revenue[78]. - The company's depreciation and amortization expenses for 2023 were RMB 2,067,231,000, an increase from RMB 1,940,579,000 in 2022, representing a rise of approximately 6.5%[26]. Assets and Liabilities - The company's total assets as of December 31, 2023, were RMB 35,143,960,000, compared to RMB 30,645,596,000 in the previous year[4]. - Total assets as of December 31, 2023, amounted to RMB 50,297,076 thousand, an increase from RMB 43,001,288 thousand in 2022, reflecting a growth of approximately 17.5%[25]. - The total liabilities as of December 31, 2023, were RMB 27,415,446 thousand, up from RMB 20,818,902 thousand in 2022, representing an increase of about 31.5%[25]. - The company's net asset value increased to RMB 22,881,630,000 from RMB 22,182,386,000 year-on-year[5]. Cash Flow and Financing - The cash flow from operating activities for the year ended December 31, 2023, was approximately RMB 2,664,500,000, down from RMB 7,377,300,000 in 2022[86]. - The financing activities generated a net cash inflow of approximately RMB 4,857,700,000 for the year ended December 31, 2023[88]. - The company’s bank borrowings totaled RMB 2,664,313,000 as of December 31, 2023, compared to RMB 2,019,981,000 in the previous year[64]. - Interest income from bank deposits and short-term deposits rose to RMB 568,258,000 in 2023 from RMB 198,203,000 in 2022, reflecting a growth of approximately 187%[32]. Dividends and Shareholder Returns - The board proposed a final dividend of HKD 0.219 per share, equivalent to approximately RMB 0.200 per share[1]. - The company declared a proposed final dividend of HKD 0.219 per share for 2023, totaling approximately HKD 240,194,000, compared to HKD 0.500 per share in 2022, which totaled about HKD 548,425,000[38]. Market and Strategic Developments - The company is focusing on the development of optical components, optoelectronic products, and optical instruments, targeting applications in automotive, VR/AR, robotics, and mobile phones[68]. - The company plans to explore new market potential in smartphone-related businesses and improve operational quality while enhancing product delivery standards[75]. - The company aims to strengthen its competitive position in automotive, XR, and robotic vision-related businesses by enhancing technical capabilities and expanding market share[75]. Employee and Corporate Governance - The total employee compensation, including salaries and bonuses, was RMB 3,858,051,000 in 2023, slightly down from RMB 3,864,463,000 in 2022[37]. - As of December 31, 2023, the group had 29,524 full-time employees and has established a competitive compensation and benefits system to attract and retain talent[107]. - The group has established a fair and competitive compensation system, including basic annual salary, year-end bonuses, and share rewards, to align responsibility with benefits and performance with returns[107]. - The audit committee has reviewed the group's audited annual performance for the year ended December 31, 2023[113]. Risk Management and Compliance - The company has established a financial risk management policy to ensure all payables are settled within the credit period[63]. - The group has significantly reduced credit risk by diversifying trade receivables across numerous counterparties and clients, with no major credit concentration risk identified[103]. - The group has implemented measures to mitigate cash flow interest rate risk associated with variable-rate bank borrowings, ensuring that any future interest rate changes will not significantly impact performance[104]. - The group has committed capital expenditures of approximately RMB 690,800,000 for the acquisition of properties, machinery, and equipment, down from RMB 1,257,500,000 in 2022[94].