2024-05-10-深交所-歌尔股份_2023年年度报告（英文版）_242页_3mb

Goertek Inc. 2023 Annual Report Summary

Core Content Overview

Goertek Inc. (stock code: 002241) is a leading company in the manufacturing of computer, communication, and other electronic devices. The report outlines the company's financial performance, key business segments, industry outlook, and governance structure for the fiscal year 2023.

Key Financial Highlights

Financial Performance

• Revenue (2023): RMB 98,573,902,273.14
  • Year-on-year change: -6.03%
• Net profit attributable to shareholders (2023): RMB 1,088,076,730.88
  • Year-on-year change: -37.80%
• Net profit excluding non-recurring gains and losses (2023): RMB 859,926,918.87
  • Year-on-year change: -47.16%
• Net cash flow from operating activities (2023): RMB 8,151,888,243.38
  • Year-on-year change: -1.99%
• Basic earnings per share (2023): RMB 0.32
  • Year-on-year change: -38.46%
• Weighted average return on net assets (2023): 3.59%

Key Financial Indicators (Year-end)

• Total assets (2023): RMB 73,744,409,441.15
  • Year-on-year change: -4.45%
• Net assets attributable to shareholders (2023): RMB 30,810,590,551.00
  • Year-on-year change: +4.47%

Main Business Segments

The Company operates in three main product segments:

1. Precision Components: Includes micro speakers, receivers, MEMS sensors, optical components, haptic components, and more.
2. Smart Audio Devices: Focuses on wireless and wired earphones, smart speakers, and related audio technologies.
3. Smart Hardware: Provides VR/MR/AR products, smart wearables, gaming consoles, smart home products, and more.

The Company's products are widely used in smartphones, tablets, smart wireless earphones, VR/MR/AR devices, smart wearables, smart homes, and automotive electronics.

Industry Outlook and Trends

Consumer Electronics Industry

• The global smartphone market saw a decline in shipments in 2023, reaching 1.17 billion units (-3.2% YoY), due to weak economic recovery, geopolitical tensions, and reduced consumer demand.
• The slowdown in innovation in smartphone hardware and software affected the demand for precision components.

Smart Hardware Market

• Smart wearable products shipped about 186 million units (+2% YoY).
• TWS earphones shipped about 295 million units (+2.4% YoY).
• The market for smart wearables and TWS earphones continued to grow steadily, driven by intelligent interaction and health monitoring technologies.

VR, MR, and AR

• Global shipments of VR, MR, and AR products reached 6.7 million units (-23.5% YoY).
• Despite short-term decline, MR products are becoming the mainstream in the market, with blurred boundaries between VR and MR.
• AR products are experiencing rapid growth, and the integration with AI is attracting significant industry attention.

Metaverse Development

• The Chinese government has emphasized the Metaverse industry, with the release of the "Three-Year Action Plan for the Innovative Development of the Metaverse Industry (2023-2025)" in September 2023.
• The Company is positioning itself to seize opportunities in the post-mobile era, focusing on AI, Metaverse, and new smart hardware.

Strategic Development and Acquisitions

• In the fourth quarter of 2023, Goertek acquired 100% of Uphoton Technology (Shaoxing) Co., Ltd., enhancing its position in micro/nano optical components, projection/display modules, and 3D sensing technology.
• This acquisition supports the long-term development of the Company's optical business and comprehensive competitiveness in precision optics.

Risk and Challenges

• The Company faces market, operational, and management risks, including global economic weakness, geopolitical conflicts, and reduced consumer demand.
• The decline in smartphone innovation and market size has impacted the demand for precision components.
• The Company's future plans are not considered substantial commitments to investors and are subject to investment risks.

Corporate Governance and Compliance

• The Board of Directors and Supervisory Board guarantee the truthfulness, accuracy, and completeness of the report.
• The financial report is signed by Jiang Bin (person in charge) and Li Yongzhi (accounting supervisor).
• The Company is compliant with Chinese accounting standards, and there were no significant differences in financial data between domestic and overseas standards during the reporting period.

Profit Distribution

• The Company proposed a cash dividend of RMB 1.00 per 10 shares (tax inclusive).
• No bonus shares or conversion of capital surplus into share capital was planned.

Key Notes and Definitions

• The report is available in both Chinese and English, with the Chinese version taking precedence in case of discrepancies.
• Non-recurring gains and losses in 2023 totaled RMB 228,149,812.01, mainly from tax benefits and investment income.
• Definitions of key terms include:
  • MEMS: Micro electro-mechanical systems, characterized by miniaturization, intelligence, and multi-functionality.
  • Smart wireless earphones: Include TWS earphones with touch control, voice control, and body information collection.
  • Microsystem module: Also known as SiP, integrates multiple chips and components for high performance and integration.

Conclusion

Goertek Inc. continues to focus on precision components, smart audio devices, and smart hardware, maintaining its industry leadership in key areas such as micro speakers, MEMS microphones, VR/MR/AR products, and smart wearables. Despite a decline in revenue and net profit due to market conditions and reduced demand, the Company is actively expanding into new smart hardware markets, enhancing its optical capabilities, and aligning with emerging technologies like AI and Metaverse. The Company remains committed to innovation and long-term growth, while being mindful of investment risks and global supply chain challenges.