Financial Performance - The company's total revenue for 2022 was HKD 4,354.7 million, representing a growth rate of 15.3% compared to the previous year[14]. - The profit attributable to shareholders was HKD 582.0 million, a significant increase of 52.0% compared to the previous year[41]. - Adjusted profit attributable to shareholders reached HKD 649.1 million, reflecting a growth of 53.7% year-on-year[41]. - Basic earnings per share increased to HKD 30.9, up 52.2% from HKD 20.3 in the previous year[41]. - The company declared a total dividend of HKD 16.0 per share, a substantial increase of 58.4% compared to HKD 10.1 per share last year[41]. - EBITDA for the year was HKD 1,165.5 million, an increase of 28.1% from HKD 910.0 million in the previous year[41]. - The net cash generated from operating activities was HKD 837.5 million, a significant increase of 97.3% year-on-year[41]. - Total debt rose to HKD 2,205.9 million, a 42.8% increase from HKD 1,544.9 million in the previous year[41]. - The company's market capitalization increased by 20.1% to HKD 4,183.7 million from HKD 3,484.1 million[41]. - The adjusted return on equity was 14.9%, up from 10.1% in the previous year[41]. Revenue Breakdown - The revenue breakdown by business segment shows that investment casting accounted for 43.6% of total revenue, making it the largest segment[20]. - The group generated 34.1% of its revenue from precision machining parts and others for the year ended December 31, 2022[22]. - Sand casting accounted for 18.8% of the group's revenue for the year ended December 31, 2022[24]. - Surface treatment services contributed 3.5% to the group's revenue for the year ended December 31, 2022[26]. - Approximately 50% of precision machining products were sold to Europe, with about one-third to the Americas and the remainder to Asia, including China[23]. - About 50% of sand castings were sold to the Americas, approximately one-third to Asia, including China, and the rest to Europe[25]. Acquisitions and Investments - The group completed the acquisition of hydraulic cycloidal motor business from Danfoss Jiangsu in November 2022[34]. - The group completed the acquisition of Foshan Meiduan Manufacturing Technology Co., Ltd. for RMB 56.6 million (approximately HKD 65.8 million) on August 15, 2022[110]. - The group acquired the hydraulic gear motor business from Danfoss Power Systems (Jiangsu) Co., Ltd. for RMB 442.2 million (approximately HKD 483.6 million), completed on October 31, 2022[111]. - The group’s new investment in the Mexico SLP plant for precision casting began production in December 2022[34]. - The company plans to continue expanding its market share in North America by leveraging the geographical advantages of its Mexican factories[64]. Operational Highlights - The company developed over 1,100 new active part numbers in collaboration with customers in 2022, increasing the total active part numbers to over 8,500[18]. - The company operates 21 production facilities globally, with 19 currently in operation and 2 under construction[19]. - The company has a workforce of over 7,700 employees, including approximately 700 engineers from around the world[18]. - The company is recognized as the sixth largest independent investment casting manufacturer globally and the largest in China[14]. - The company aims to provide a one-stop solution that includes R&D, mold design and manufacturing, casting, heat treatment, secondary machining, and surface treatment[14]. Market Performance - Revenue from the Americas grew by 35.5% to HKD 2,123.0 million, while European revenue increased by 17.0% to HKD 1,358.4 million; Asian revenue fell by 16.8% to HKD 873.3 million[62]. - Passenger vehicle segment revenue declined by 17.0% to HKD 803.5 million due to weak demand in Europe and supply chain constraints, while commercial vehicle revenue grew by 18.7% to HKD 896.0 million[51]. - The sand casting business achieved a strong growth of 41.0%, while the investment casting business grew by 22.1%, driven by demand in aerospace, medical, and energy sectors[56]. Sustainability and ESG Efforts - The company achieved a 21.8% reduction in energy consumption per unit of revenue and a 19.9% decrease in greenhouse gas emissions per unit of revenue in 2022, reflecting its commitment to ESG principles[69]. - The company has set sustainability goals to reduce energy density, greenhouse gas emissions density, and water consumption density by 30%, 30%, and 40% respectively by 2030[145]. - The company issued an independent ESG report detailing its sustainability performance, aligning with global reporting standards[143]. - The company has established sustainability standards and is committed to monitoring and reporting its performance annually[184]. Corporate Governance - The board consists of five executive directors and three independent non-executive directors, ensuring strong independence in its composition[153]. - The audit committee, composed entirely of independent non-executive directors, held three meetings during the year, with full attendance from all members[168]. - The company has established a formal and transparent nomination policy for selecting and appointing new directors, with all directors required to retire at least once every three years[161]. - The board emphasizes the importance of diversity in its composition, considering factors such as gender, age, cultural background, and industry experience[156]. - The company is committed to enhancing gender diversity in its senior management and will continue to seek suitable candidates for future appointments[158]. Financial Management - The effective tax rate decreased to 15.4% from 17.7% in the previous year, influenced by deferred tax assets recognition[88]. - Total assets increased by 10.2% to HKD 7,763.0 million as of December 31, 2022, primarily due to two acquisitions and capital expenditures related to the New Mexico plant[98]. - The current ratio as of December 31, 2022, was 1.63, down from 1.74 as of December 31, 2021, due to increased short-term bank loans to support capital expenditures[98]. - The net debt-to-equity ratio increased to 39.2% as of December 31, 2022, compared to 22.1% the previous year, driven by higher borrowings for acquisitions and capital expenditures[104]. Employee and Remuneration - Total employee costs for the year amounted to HKD 1,115.3 million, an increase from HKD 1,091.0 million in the previous year[115]. - The total remuneration for executive directors for the year ended December 31, 2022, amounted to HKD 17,316,000, which includes salaries, allowances, and bonuses[186]. - The five highest-paid individuals in the group received a total remuneration of HKD 17,976,000, with bonuses contributing HKD 4,241,000[190].
鹰普精密(01286) - 2022 - 年度财报