Financial Performance - Fiscal year 2023 revenue decreased to $6,446 million, down $2,948 million or 31.4% from $9,394 million in 2022[18]. - Loss attributable to owners for 2023 was $120.7 million, compared to a loss of $72.1 million in 2022[18]. - Basic loss per share for 2023 was 1.52 cents[18]. - The group recorded a consolidated net loss during the period, with expectations for this trend to continue at least until the first half of 2024[37]. - The company reported audited consolidated results for the year ending December 31, 2022[35]. - The company 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[98]. - The company confirmed consolidated revenue of $6,446 million for the period, down $2,948 million or 31.4% from $9,394 million in the same period last year[104]. - Gross profit decreased to $110 million, down $82 million from $192 million in the same period last year, resulting in a gross margin of 1.70%, down from 2.04%[105]. - The expected credit loss provision for the year is $133.8 million, significantly up from $80.5 million in the same period of 2022[73]. - The cumulative amount of expected credit loss provisions reached $225.3 million as of December 31, 2023, compared to $80.5 million in the previous year[113]. Market Challenges - The operating environment for fiscal year 2024 is expected to remain challenging with significant uncertainties[19]. - The company faces challenges related to customer demand fluctuations, extended replacement cycles, and potential delays or cancellations of new projects[39]. - The smartphone market is facing challenges due to economic downturns and prolonged replacement cycles, leading to increased competition and reduced demand visibility[56]. - The company has faced significant market challenges since late 2017, with declining profit margins and demand continuing into 2023, attributed to a saturated mobile phone market and increased price sensitivity among customers[44]. - The company is experiencing downward pressure on profit margins as clients push for lower prices due to their declining profitability[57]. - The company is actively managing risks, capital structure, and operational costs to remain competitive and flexible in a challenging economic environment[52]. - The company is facing challenges from high inflation, high interest rates, and currency depreciation in emerging markets, which are affecting consumer demand[102]. - The competitive landscape in the EMS industry remains challenging, with many players facing declining operating profit margins due to pricing pressures and excess capacity[106]. Strategic Initiatives - The company continues to implement a light-asset strategy and reorganize global facilities to allocate resources to productive assets[18]. - The company is diversifying into new markets such as automotive electronics, robotics, and artificial intelligence to reduce reliance on the volatile mobile phone market[18]. - The company is focusing on maintaining financial stability while seeking growth opportunities amid challenging market conditions[19]. - The company is committed to optimizing resource allocation and improving operational efficiency to mitigate profit erosion[19]. - The company has invested heavily in research and development to drive innovation and transition into new fields[18]. - The company is focusing on three future industries: electric vehicles, digital health, and robotics, alongside three core technologies: artificial intelligence, semiconductors, and next-generation communications[24]. - The company is actively developing core technologies in artificial intelligence and is investing in the robotics industry as part of its long-term business strategy[24]. - The company is committed to enhancing its manufacturing technology and vertical integration services to provide better quality and lower costs[41]. Leadership and Governance - The company appointed Mr. Chi Yu-Yang as the acting chairman since January 1, 2017, with over 44 years of experience in the telecommunications industry[22]. - Dr. Guo Wen-Yi joined the company as an executive director on June 29, 2018, and has over 29 years of experience in wireless communication product development and international business[23]. - Mr. Lin Chia-Liao was appointed as an executive director on March 10, 2023, and has over 27 years of experience in the communications and computer industry, focusing on high-end smartphone development[24]. - The company’s leadership team has extensive experience in risk management and engineering, contributing to its strategic decision-making[22][23][24]. - The company continues to strengthen its board with experienced professionals to enhance governance and operational efficiency[30]. Operational Efficiency - The company is focused on expanding its market presence and enhancing its product offerings through innovation and strategic partnerships[36]. - The company is committed to improving operational management and efficiency, including talent development and R&D capabilities[60]. - The company is focusing on optimizing production processes and reducing waste to improve manufacturing value-added (MVA) and lower costs[56]. - The company is enhancing its capabilities in innovative design solutions to address the evolving needs of target markets[54]. - The company is committed to providing cost-effective and vertically integrated global supply chain solutions to meet varying production demands[55]. Economic and Geopolitical Factors - Various risks affecting future performance include geopolitical tensions, inflation pressures, and market saturation, which could lead to significant deviations from projected results[39]. - The ongoing geopolitical tensions, including the US-China trade war and the Russia-Ukraine conflict, have created significant uncertainty in the global economic landscape[47]. - The Federal Reserve has raised interest rates 11 times since 2022, reaching a range of 5.25% to 5.5%, the highest in 22 years, impacting consumer purchasing power and demand[46]. - The macroeconomic environment remains challenging, with high inventory levels leading to conservative budgeting and procurement among customers[142]. Workforce and Employee Engagement - The company has established a global R&D team with offices in China, Taiwan, India, and Vietnam to support significant business growth opportunities, including new technologies and materials[91]. - Employee development is a key focus, with the company emphasizing internal training and attracting external talent to enhance competitiveness[85]. - The HR department has ensured 100% timely payment of employee provident fund and pension contributions, safeguarding employee financial welfare[90]. - In 2023, the company resolved 86% of approximately 300 employee feedback issues, with 14% still in progress[87]. - The company has conducted 50 "workshop tours," addressing 551 employee concerns, with 92% resolved and 8% still being processed[87]. Investment and Future Outlook - The company is focusing its investment strategy on sectors with significant potential, including 5G, IoV, medical electronics, and artificial intelligence[172]. - The company is actively exploring potential investment opportunities to enhance its portfolio value, although no significant investment plans have been established at this stage[171]. - The company is committed to achieving net-zero emissions by 2050 and prioritizing green investments[172]. - The company is continuously evaluating the impact of new laws and regulations in its operating regions, including China, India, and Vietnam[175]. - The smartphone market is expected to recover with low single-digit percentage growth in 2024, driven by generative AI applications, and the penetration rate of 5G smartphones is projected to reach 60%[195].
富智康集团(02038) - 2023 - 年度财报