Financial Performance - The total revenue for the year ended December 31, 2023, was RMB 6,145,228 thousand, a decrease of 3.4% compared to RMB 6,359,226 thousand in 2021[5]. - The net profit for the year was RMB 14,214 thousand, representing a decline of 29.2% from RMB 20,066 thousand in the previous year[5]. - The profit attributable to owners of the company increased by 16.3% to RMB 20,109 thousand from RMB 24,038 thousand in 2021[5]. - The Group's turnover for the year ended December 31, 2023, was RMB 6,145,228 thousand, a decrease of 3.4% compared to RMB 6,359,226 thousand in 2022[24]. - Profit for the year was RMB 14,214 thousand, down 29.2% from RMB 20,066 thousand in 2022[24]. - Profit attributable to owners of the Company decreased by 16.3% to RMB 20,109 thousand from RMB 24,038 thousand in the previous year[24]. - Basic and diluted earnings per share fell by 16.7% to 1.84 RMB cents from 2.21 RMB cents in 2022[24]. - Gross profit decreased by approximately 8.3% to RMB 418.8 million from RMB 456.7 million in 2022, resulting in a gross profit margin of 6.8%[88]. - EBITDA for the year was approximately RMB 205.6 million, a decrease of approximately 7.5% from RMB 222.3 million in 2022[74]. Revenue Sources and Market Trends - Over 90% of the Group's revenue is derived from the ODM business, primarily from the smartphone segment in the consumer electronics market[35]. - The Group's sales revenue from mobile phone batteries has declined due to a slowdown in the global economy and weaker consumer demand[35]. - The Group is broadening its product and technology platforms to diversify revenue sources and reduce dependence on mobile phone battery sales[35]. - The smart wearable market is expected to maintain rapid growth, driven by the large-scale application of 5G technology[35]. - The proportion of mobile phone lithium-ion batteries in the consumer lithium-ion battery market has declined, but their applications in new energy vehicles and energy storage are expanding rapidly[55]. - The high-end mobile phone market, particularly foldable phones, is expected to enhance user experience and drive demand for differentiated applications[59]. - New power supply products, including wearable device batteries and car batteries, contributed approximately RMB 212.2 million to ODM turnover, representing about 3.7% of the segment[69]. Operational Efficiency and Strategic Focus - The group aims to enhance its market competitiveness through improved operational efficiency and cost control[18]. - The company has developed a modernized manufacturing system that emphasizes refined management and high efficiency[18]. - The Group aims to enhance operational efficiency and re-development capabilities to reduce production line equipment input costs and respond quickly to new product and technology requirements[40]. - The Group plans to accelerate new product launches to explore new revenue and profit sources while maintaining its position in the mobile phone battery market[40]. - The Group emphasizes talent development, product quality, and environmental awareness to achieve sustainable development and provide safe green energy products[43]. Challenges and Risks - The Group's investment project in India has faced significant challenges and is under reevaluation due to changes in the business environment and customer investment shrinkage[39]. - There are currently no plans for new overseas ODM business, with future decisions dependent on customer needs and the Company's strategic plan[39]. - The Group will reassess the investment benefits and project value in India due to increased risks and uncertainties following changes in the business environment[41]. - The global smartphone market saw a 3.2% year-on-year decline in shipments, totaling 1.17 billion units in 2023, due to factors like economic volatility and increased market saturation[49]. Cash Flow and Financial Position - The cash position at the end of the year was RMB 133,825 thousand, a significant drop of 33.4% from RMB 200,944 thousand[5]. - The Group recorded a net cash outflow from operating activities of approximately RMB 102.1 million in 2023, compared to a net cash outflow of RMB 177.9 million in 2022[105]. - As of December 31, 2023, the Group's borrowings amounted to approximately RMB 1,299.8 million, an increase of approximately 9.5% from RMB 1,186.5 million in 2022[111]. - The total debt to equity ratio was approximately 119.7% as of December 31, 2023, compared to 111.0% in 2022[111]. - The Group's net current assets increased by approximately 24.4% to RMB 490.2 million as of December 31, 2023, from RMB 393.9 million in 2022[116]. - The Group's net assets as of December 31, 2023, were approximately RMB 1,086.1 million, reflecting a 1.6% increase from RMB 1,069.3 million in 2022[116]. Corporate Governance and Management - Veson Holdings Limited was listed on the Main Board of the Stock Exchange of Hong Kong Limited in December 2006[12]. - The Group's executive directors are responsible for strategic development, daily operations, and risk management, with a focus on enhancing internal control procedures[139][140][146]. - The Group's management regularly reviews compensation policies and employee performance to align with market standards[138]. - The Company has a diverse board with members holding qualifications from prestigious institutions, enhancing its governance and oversight capabilities[156]. - The independent non-executive directors are actively involved in various committees, including Audit, Remuneration, and Corporate Governance, ensuring robust corporate governance practices[152]. Employee and Talent Management - As of December 31, 2023, the Group had 2,534 full-time employees, a decrease from 3,023 in 2022[132]. - The Group's compensation policy is based on individual performance, professional qualifications, and market trends, ensuring salaries are competitive[137]. - The Group emphasizes continuous professional development, with executives holding advanced degrees and specialized training in their fields[145][148]. Shareholder Returns and Dividends - The Group's reserves available for distribution to shareholders as of December 31, 2023, amounted to approximately RMB 983.9 million, an increase from RMB 962.6 million in 2022[181]. - The Board has decided not to recommend any final dividend for the year ended December 31, 2023, to preserve cash for working capital requirements[172].
锐信控股(01399) - 2023 - 年度业绩