Financial Performance - For the fiscal year ended December 31, 2023, the revenue was $4,195,550 thousand, a decrease of 7.4% compared to $4,530,603 thousand in 2022[7]. - Gross profit for 2023 was $807,140 thousand, representing a gross margin of 19.2%, up from 16.9% in 2022[6]. - Operating profit decreased to $262,831 thousand in 2023, with an operating margin of 6.3%, compared to 6.8% in the previous year[7]. - Net profit attributable to shareholders was $128,969 thousand, down from $169,619 thousand in 2022, reflecting a net profit margin of 3.1%[7]. - Revenue for the year ended December 31, 2023, was $4,196 million, a decrease of 7.4% compared to the previous year, while profit decreased by 23.5% to $130 million[18]. - Annual profit fell by 23.5% from $170 million in 2022 to $130 million in 2023, resulting in a profit margin decrease from 3.8% to 3.1%[31]. - The company reported a net profit of $128,969 thousand for the year, compared to $169,619 thousand in the previous year, reflecting a decrease of approximately 24%[191]. - The company’s total comprehensive income for the year was reported at $89,578 thousand, a decrease from $170,342 thousand in the previous year[191]. Revenue Segmentation - The smartphone component segment remains the primary revenue source, with a 17.2% decrease in revenue compared to the previous year due to changes in high-end smartphone product structures and competition[18]. - The network infrastructure segment experienced a significant revenue decline of 43.7% year-over-year, attributed to inventory destocking in the server downstream market[18]. - Revenue from the electric vehicle (EV) segment increased by 99.7% year-over-year, bolstered by the acquisition of Prettl SWH Group, now known as FIT Voltaira Group GmbH[18]. - The system terminal product segment saw a revenue increase of 6.0% year-over-year, maintaining competitiveness in existing acoustic products and capitalizing on new wireless charging opportunities for smartwatches[19]. - Revenue from the smartphone segment decreased by 17.2%, primarily due to changes in high-end smartphone product structures and increased competition[23]. - Revenue from the network infrastructure segment decreased by 43.7%, influenced by inventory destocking in the server downstream and a shift in product mix[24]. - Revenue from the electric vehicle segment increased by 99.7%, attributed to the acquisition of the German automotive component manufacturer FIT Voltaira[24]. Assets and Liabilities - Total assets increased to $5,093,736 thousand in 2023, compared to $4,547,183 thousand in 2022[6]. - Total liabilities rose to $2,656,358 thousand, compared to $2,200,244 thousand in the previous year, marking an increase of 20.7%[189]. - Cash and cash equivalents increased significantly to $1,316,364 thousand from $914,045 thousand, a rise of 44%[187]. - The company’s retained earnings stood at $1,850,209 thousand as of December 31, 2023, up from $1,734,043 thousand, indicating a growth of about 6.7%[192]. Expenses and Investments - Distribution and selling expenses increased by 12.8% to $105 million in 2023, mainly due to the full consolidation of FIT Voltaira[26]. - Administrative expenses rose by 46.8% to $191 million in 2023, primarily due to the acquisition of FIT Voltaira and increased professional fees[27]. - R&D expenses increased by 4.0% from $296 million in 2022 to $308 million in 2023, primarily due to the acquisition of FIT Voltaira[28]. - Capital expenditures surged to $510 million in 2023 from $131 million in 2022, primarily for the acquisition of FIT Voltaira and new production facilities[33]. Cash Flow and Financing - Operating cash flow from business activities increased to $648,793 thousand, up from $635,725 thousand year-over-year, indicating a growth of about 2%[194]. - The company incurred a total cash outflow from investing activities of $410,212 thousand, significantly higher than the previous year's outflow of $66,164 thousand[194]. - The company raised $1,368,698 thousand through bank borrowings, compared to $1,112,870 thousand in the prior year, reflecting an increase of approximately 23%[194]. - The cash flow from financing activities showed a net inflow of $248,584 thousand, a recovery from a net outflow of $270,239 thousand in the previous year[194]. Strategic Initiatives - The company is implementing a "3+3" strategy to restructure resources for future growth and develop high-margin products[11]. - Significant capital investments are being made for ongoing global expansion despite external market challenges[11]. - The company continues to invest in advanced connector solutions for electric vehicles, 5G AI IoT, and acoustic applications to leverage next-generation interconnect technology trends[12]. - The acquisition of Belkin has resulted in record performance, with plans to expand the Disney collaboration product line and introduce innovative products in 2024[13]. Governance and Compliance - The board of directors' compensation is reviewed by the compensation committee and approved by the board, considering factors such as experience, responsibilities, and company performance[41]. - The company has established stock option plans and restricted stock incentive plans to provide valuable rewards to attract and retain talent[41]. - The company has a strong focus on compliance with relevant laws and regulations, as well as maintaining relationships with employees, customers, and suppliers[60]. - The company ensures compliance with legal and regulatory requirements as part of its corporate governance responsibilities[134]. Shareholder Relations - The company emphasizes the importance of effective communication with shareholders to enhance investor relations and ensure informed investment decisions[164]. - Shareholders holding at least 10% of the company's share capital have the right to request a special general meeting to discuss specified matters[166]. - The company has adopted a shareholder communication policy to foster mutual relationships and communication with shareholders[164]. Risk Management - The company has a risk management framework that includes a supervisory layer (Board and Audit Committee), an execution layer (functional departments), and a management layer (management team)[156]. - The internal audit department completed the 2023 risk management report and presented it to the Audit Committee, confirming the effectiveness of the risk management system[157]. Employee and Diversity Initiatives - As of December 31, 2023, the company had approximately 66,148 employees, an increase from 53,544 employees as of December 31, 2022[40]. - The overall gender ratio of the company as of December 31, 2023, is 48.2% male and 51.8% female[147]. - The board of directors consists of 87.5% male and 12.5% female members[147]. - The company appointed a female director on August 7, 2023, emphasizing its commitment to gender diversity[146].
FIT HON TENG(06088) - 2023 - 年度财报