Avary Holding(SZ:002938)2023-11-01 10:01Group 1: Financial Performance - The company's revenue for the first three quarters of 2023 declined by 17.49% year-on-year, with a quarterly decline of 15.85% [2] - Net profit for the same period decreased by 45%, with both gross and net profit margins experiencing declines [2] - In Q3 2023, revenue increased by 83% quarter-on-quarter, and net profit rose by 162% [2] Group 2: Cost and Expenses - Depreciation expenses increased by approximately 90 million, while R&D expenses rose by 200 million in the first three quarters [4] - Foreign exchange gains decreased from 530 million in the previous year to 200 million this year, resulting in a drop of over 300 million [4] Group 3: Operational Stability - The company maintained healthy accounts receivable and inventory turnover days, with a debt-to-asset ratio of 31% as of September 30 [4] - A share buyback plan was announced, with a budget of 200 to 400 million for employee stock ownership or equity incentives, reflecting confidence in the company's value [4] Group 4: Future Outlook - The company anticipates a recovery in the consumer electronics sector, particularly in Q4, with good capacity utilization and production planning [4] - The company is optimistic about AI's impact on consumer electronics and communication sectors, expecting new demand for products [5] - Expansion plans include investments in multiple locations, with a total investment of 4.2 billion for the Huai'an and Kaohsiung parks, and 250 million USD for the Thailand park [6] Group 5: Market Position - In 2022, the company’s revenue from consumer electronics accounted for over 35%, while communication products, primarily mobile phones, made up nearly 65% [5] - The company is focusing on high-end products in the automotive electronics sector, with collaborations with battery manufacturers and Tier 1 suppliers [6]