歌爾股份：2024年年度報告（英文版）.PDF

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1、Full Text of Goertek Inc.Annual Report 2024 1 Goertek Inc.Annual Report 2024 March 2025 Full Text of Goertek Inc.Annual Report 2024 2 Annual Report 2024 Section Important Notes,Contents and Interpretations The Board of Directors,the Board of Supervisors,directors,supervisors and senior management of

2、 the Company guarantee that the information presented in this report is true,accurate,and complete，free from false statements,misrepresentations and material omissions,and will undertake individual and joint legal liabilities.Jiang Bin,the person in charge of the Company,and Li Yongzhi,the person in

3、 charge of accounting and the accounting department(accounting supervisor)guarantee that the financial report in this annual report is authentic,accurate,and complete.All directors have attended the board meeting to review the annual report.The future plans and some forward-looking statements mentio

4、ned herein are planned matters which shall not constitute a substantial commitment of the Company to investors.Therefore,both investors and relevant persons should maintain their risk awareness and understand the differences among plan,forecast and commitment.Please pay attention to investment risks

5、.The Company faces the risks in market,operation and management.Investors are kindly reminded to pay attention to possible investment risks.For details,see Section III Management Discussion and Analysis,XI.Outlook for the Future Development of the Company in this report.The profit distribution propo

6、sal considered and approved by the Board of Directors of the Company is as follows:based on the total share capital registered on the record date of equity distribution minus the repurchased shares in the Companys specific securities repurchase account,the Company will distribute a cash dividend of

7、RMB 1.50(tax inclusive)per 10 shares to all the shareholders,with no bonus shares and no conversion of capital surplus into share capital.Full Text of Goertek Inc.Annual Report 2024 3 Contents Section Important Notes,Contents and Interpretations.2 Section Company Information and Financial Highlights

8、.7 Section III Management Discussion and Analysis.11 Section IV Corporate Governance.37 Section V Environmental and Social Responsibilities.66 Section VI Important Matters.69 Section VII Changes in Shares and Shareholder Information.80 Section VIII Preference Shares.89 Section IX Bonds.90 Section X

9、Financial Report.91 Full Text of Goertek Inc.Annual Report 2024 4 Directory of Reference Files(1)Financial statements signed and sealed by the Companys person in charge,the chief accountant,and the person in charge of accounting department(accounting supervisor);(2)The originals of the 2024 annual r

10、eport and its abstract signed by the Companys person in charge;(3)The originals of the auditors report with the seal of Zhongxi CPAs(Special General Partnership)and the signature and seal of the certified public accountants;(4)The originals of all company documents and announcements publicly disclos

11、ed in media designated by the China Securities Regulatory Commission(CSRC)during the reporting period.Full Text of Goertek Inc.Annual Report 2024 5 Interpretations Terms Refers to Content of interpretation Company,the Company,Goertek Inc.Refers to Goertek Inc.Goertek Group Refers to Goertek Group Co

12、.,Ltd.,Controlling shareholder of the Company Goertek Microelectronics Refers to Goertek Microelectronics Inc.controlled subsidiary of the Company ODM Refers to Original Design and Manufacturing JDM Refers to Joint Design and Manufacturing Micro speaker Refers to The micro electro-acoustic component

13、s that transform electrical signal into an acoustic signal,generate driving forces through the magnetic line cutting of the voice coil in a magnetic field,to drive the diaphragm vibration,which then pushes the air for sound.Compared with the micro receiver,its characterized by a higher power,wide fr

14、equency response and high fidelity,which is generally used for playing sound.MEMS Refers to Based on micron/nano technology,Micro Electro Mechanical System(MEMS)is a technology developed for designing,processing,manufacturing,measuring,and controlling micron/nano materials.MEMS can integrate mechani

15、cal components,optical systems and electric control systems of driving components into a whole unit of microsystem,featured with miniaturization,intelligence,multi-function,high integration and being suitable for mass production.Speaker module Refers to The acoustic component composed of one or seve

16、ral micro speakers and other electronic devices,which are assembled together through an injection molded housing.Smart wearable devices Refers to A portable device that can be worn or carried directly,or integrated into the users clothes or accessories.Virtual Reality/VR Refers to A computer simulat

17、ion system that can generate a simulation environment where users can experience virtual situations.Mixed Reality/MR Refers to A new visual environment that can integrate the real and virtual situations,where users,the real world,and virtual digital objects can coexist and interact in real time.Augm

18、ented Reality/AR Refers to A technology that skillfully integrates virtual information with the real world.By making extensive use of multimedia,3D modeling,real-time tracking and registration,intelligent interaction,sensing,and other technical means,it applies the computer-generated text,images,3D

19、models,music,video,and other virtual information to the real world after simulation.These two kinds of information complement each other to achieve augmentation of the real world.AI Smart Glasses Refers to A wearable device that integrates AI technology,incorporating speakers,microphones,cameras,chi

20、ps,storage,communication modules,and display modules into traditional glasses.It provides users with an AI assistant experience through intelligent interaction methods,such as voice and vision,and offers functions such as audio,photography,and wireless communication.Smart Wireless Earphones Refers t

21、o The new types of smart wireless earphones represented by TWS(True Wireless Stereo)earphones connect the left and right earphones with smart phones or other terminal devices through Bluetooth technology to form an independent stereo system,which realizes touch control,voice control,body information

22、 collection,and other functions by adding various sensors.Full Text of Goertek Inc.Annual Report 2024 6 Terms Refers to Content of interpretation Microsystem module Refers to Also known as System in Package(SiP)packaging module at the system level,it integrates multiple chips and passive components

23、into the same package through advanced packaging technologies such as 3D packaging,to form a module with whole or main functions of an electronic system,so as to realize the optimal combination of performance,volume,weight,and other indicators.It is a versatile next-generation microelectronics techn

24、ology.Sensor Refers to A detection device that is capable of feeling the measured information,and able to transform the information into electrical signals or other required forms of information for output based on certain rules,in order to meet the requirements of information transmission,processin

25、g,storage,display,recording and control.Micro-display Refers to A technology that displays images or video information through tiny display units.This technology typically uses semiconductor manufacturing processes to integrate display devices onto a very small chip or substrate,achieving high resol

26、ution,high contrast,high brightness,and low power consumption.Micro-nano Optical Devices Refers to Optical devices based on microstructured materials have significant advantages over traditional optical devices in terms of lightweight,integration,and the application of perceptive technology.GPS Refe

27、rs to Goertek Production System.It is a comprehensive operation system that integrates automation,information communication,artificial intelligence,green and low-carbon technologies.It aims to promote manufacturing transformation and upgrading,optimize the management and cooperation mode of the whol

28、e chain,and improve the core competitiveness of the company and the happiness of employees.AR HUD Refers to A product that combines AR(Augmented Reality)technology with a Head-Up Display(HUD)system.By projecting key data,such as driving information,navigation instructions,and traffic alerts,in the f

29、orm of virtual images directly onto the windshield in front of the driver,it can create a blended effect of reality and virtuality,allowing the driver to conveniently access the necessary information while keeping their focus on the road.Company Law Refers to Company Law of the Peoples Republic of C

30、hina Securities Law Refers to Securities Law of the Peoples Republic of China Articles of Association Refers to Articles of Association of Goertek Inc.RMB,RMB 10,000,RMB 100,000,000 Refers to yuan(RMB),ten thousand yuan(RMB),hundred million yuan(RMB)Reporting period Refers to January 1,2024 to Decem

31、ber 31,2024 Same period of the previous year Refers to January 1,2023 to December 31,2023 End of the reporting period Refers to December 31,2024 Beginning of the period,beginning of the year Refers to January 1,2024 Notes:1.Explanation of other matters:In this report,any difference between the sum o

32、f some amounts and the sum of detailed items is due to rounding.2.This report has been prepared in both Chinese and English.Should there be any discrepancies or misunderstandings between the two versions,the Chinese version shall prevail.Full Text of Goertek Inc.Annual Report 2024 7 Section Company

33、Information and Financial Highlights I.Company Information Stock abbreviation Goertek Inc.Stock code 002241 The stock exchange where stocks are listed Shenzhen Stock Exchange Name of the Company in Chinese 歌爾股份有限公司 Abbreviation of the Company in Chinese 歌爾股份 Name of the Company in English Goertek In

34、c.Abbreviation of the Company in English Goertek Legal representative of the Company Jiang Bin Registered address 268 Dongfang Road,High-tech Industrial Development District,Weifang Postal code of registered address 261031 History of changes in registered address of the Company No change Business ad

35、dress 268 Dongfang Road,High-tech Industrial Development District,Weifang Postal code of business address 261031 Company website http:/ E-mail II.Contacts and Contact Information Board Secretary Securities Affairs Representative Name Xu Dapeng Xu Yanqing Contact address 268 Dongfang Road,High-tech I

36、ndustrial Development District,Weifang 268 Dongfang Road,High-tech Industrial Development District,Weifang Tel.0536-3055688 0536-3055688 Fax 0536-3056777 0536-3056777 E-mail III.Media for Information Disclosure and Place of the Report Website of the stock exchange for release of the Annual Report Sh

37、enzhen Stock Exchange(http:/)Name and website of the media for release of the Annual Report Securities Times,China Securities Journal,Shanghai Securities News,Securities Daily,CNINFO(http:/)Place where the Annual Report is available for inspection Office of Board of Directors of the Company Full Tex

38、t of Goertek Inc.Annual Report 2024 8 IV.Changes in Registration Unified Social Credit Code 91370700729253432M The changes in main business since the Company was listed(if any)No change Changes of controlling shareholders of the Company(if any)No change V.Other Relevant Information Accounting firm e

39、ngaged by the Company Name of the accounting firm Zhongxi CPAs(Special General Partnership)Business address of the accounting firm Room 1101,F11,No.11,Chongwenmenwai Street,Dongcheng District,Beijing Names of accountants signing the report Du Yeqin,Zhang Shuli The sponsor institution engaged by the

40、Company to perform continuous supervision during the reporting period Applicable Not applicable The financial advisor engaged by the Company to perform continuous supervision during the reporting period Applicable Not applicable.Key Accounting Data and Financial Indicators Whether the Company perfor

41、med a retrospective adjustment or restatement of previous accounting data Yes No 2024 2023 YoY change 2022 Revenue(RMB)100,953,848,156.08 98,573,902,273.14 2.41%104,894,324,162.26 Net profit attributable to shareholders of the Company(RMB)2,665,044,826.06 1,088,076,730.88 144.93%1,749,181,131.83 Net

42、 profit attributable to shareholders of the Company excluding non-recurring gains and losses(RMB)2,393,206,176.65 859,926,918.87 178.30%1,627,378,630.73 Net cash flow from operating activities(RMB)6,200,452,181.84 8,151,888,243.38-23.94%8,317,113,364.68 Basic earnings per share(RMB)0.79 0.32 146.88%

43、0.52 Diluted earnings per share(RMB)0.78 0.32 143.75%0.52 Weighted average return on net assets 8.46%3.59%4.87%6.17%End of 2024 End of 2023 YoY change End of 2022 Total assets(RMB)82,706,773,086.83 73,744,409,441.15 12.15%77,176,355,467.91 Net assets attributable to shareholders of the Company(RMB)3

44、3,186,335,842.73 30,810,590,551.00 7.71%29,491,882,199.49 The lower of the net profit before and after non-recurring gains and losses was negative for the last three accounting years,and the latest auditors report indicated that there was uncertainty about the Companys ability to continue as a going

45、 concern.Yes No The lower of the net profit before and after non-recurring gains and losses was negative.Yes No Full Text of Goertek Inc.Annual Report 2024 9.Differences in Accounting Data between Domestic and Overseas Accounting Standards 1.Differences in net profits and net assets in the financial

46、 reports disclosed according to international and Chinese accounting standards Applicable Not applicable During the reporting period,there is no difference in net profits and net assets in the financial reports disclosed pursuant to international and Chinese accounting standards.2.Differences in net

47、 profits and net assets in the financial reports disclosed according to overseas and Chinese accounting standards Applicable Not applicable During the reporting period,there is no difference in net profits and net assets in the financial reports disclosed pursuant to overseas and Chinese accounting

48、standards.Key Quarterly Financial Indicators Unit:RMB The first quarter The second quarter The third quarter The fourth quarter Revenue 19,311,868,351.19 21,070,445,175.29 29,263,552,701.56 31,307,981,928.04 Net profit attributable to shareholders of the Company 379,545,536.73 845,526,229.42 1,120,1

49、42,875.99 319,830,183.92 Net profit attributable to shareholders of the Company excluding non-recurring gains and losses(RMB)275,495,406.41 908,618,562.28 861,935,824.78 347,156,383.18 Net cash flow from operating activities 1,534,517,201.91 939,435,085.68 185,997,335.24 3,540,502,559.01 Whether the

50、re is significant difference between the above financial indicators and that of what disclosed in the quarterly reports and semi-annual reports Yes No.Non-recurring Gains and Losses Applicable Not applicable Unit:RMB Item 2024 2023 2022 Explanation Gains and losses on disposal of non-current assets(

51、including the write-off portion of the provision for asset impairment)-85,999,752.59-123,882,680.16 122,922,237.61 Mainly for the loss on scrapping fixed assets Government grants included in the current profits and losses(except for those that are closely related to the normal business operations of

52、 the Company,comply with national policy regulations,are enjoyed according to established standards,and have a continuous impact on the Companys gains and losses)196,923,255.19 331,548,590.64 351,383,799.43 Mainly special funds for enterprise innovation and development and other government grants Fu

53、ll Text of Goertek Inc.Annual Report 2024 10 Profits and losses from changes in the fair value of financial assets and liabilities,and from the disposal of financial assets and liabilities,held by non-financial enterprises,except for effective hedging businesses related to the normal operating busin

54、ess of the Company.112,020,093.46-26,138,756.91-367,080,970.87 Mainly for changes in fair value of equity investments held by the Company and the investment income from foreign exchange derivatives Other non-operating income and expenditures other than those mentioned above 12,014,095.20 28,631,472.

55、04 15,710,102.76 Other profit and loss items that meet the definition of non-recurring profit and loss 62,609,433.16 66,527,741.91 42,288,231.23 Mainly for investment income from products such as certificates of deposit Less:Impact of income tax 18,834,375.42 35,531,401.22 26,114,589.64 Impact of mi

56、nority interests(after tax)6,894,099.59 13,005,154.29 17,306,309.42 Total 271,838,649.41 228,149,812.01 121,802,501.10-Details of other gains and losses that meet the definition of non-recurring gains and losses:Applicable Not applicable Mainly for investment income from products such as certificate

57、s of deposit Note for the definition of non-recurring gains and losses set out in the Explanatory Announcement No.1 on Information Disclosure for Companies with Public Offerings of Securities-Non-recurring Gains and Losses,as recurring gains and losses.Applicable Not applicable The Company did not c

58、lassify any item of the non-recurring gains and losses listed in the Explanatory Announcement No.1 on Information Disclosure for Companies with Public Offerings of Securities-Non-recurring Gains and Losses,as recurring gains and losses in the reporting period.Full Text of Goertek Inc.Annual Report 2

59、024 11 Section III Management Discussion and Analysis.The Situation of the Industry during the Reporting Period During the reporting period,the Companys main business is categorized into the industry of the manufacturing of computer,communication,and other electronic devices,and is divided into thre

60、e product segments:precision component,smart audio device and smart hardware.The Company mainly focuses in consumer electronics and automotive electronics industries,and provides a wide range of products including acoustics,optics,microelectronics and structural precision components,as well as smart

61、 hardware products such as virtual reality(VR)/mixed reality(MR)/augmented reality(AR)products,smart wireless earphones,smart wearable devices,gaming console and accessories,and smart home products.The Company serves the global leading clients in the technology and consumer electronics industry with

62、 vertically integrated product solutions of precision components and smart hardware,as well as R&D and manufacturing services.The consumer electronics industry has gradually entered the post-mobile era.Global smartphone product sales growth remains weak.Emerging smart hardware products,represented b

63、y VR/AR,smart wireless earphones,smart wearable devices,and smart home devices,have become new growth points in the consumer electronics industry.However,the growth rate of some emerging smart hardware products has slowed in recent years due to factors such as global macroeconomic fluctuations,insuf

64、ficient end-user demand,and a lack of hardware technology innovation.Major enterprises in the global technology and consumer electronics industry are actively exploring new technological breakthroughs and industry development opportunities.Generative AI technologies,such as Large Language Model(LLM)

65、and Multimodal Large Language Model(MLLM),continued to develop in 2024.New LLM are continuously emerging,with modeling capabilities evolving rapidly and being adopted across various fields,including technology,art,education,healthcare,and entertainment,driving efficiency improvements and intelligent

66、 transformations in related industries.The combination of AI technology and smart hardware products is expected to open up new industry development spaces,providing industry manufacturers with a new round of development opportunities.On the one hand,the integration of AI technology with smartphone p

67、roducts is deepening,with leading enterprises actively developing AI smartphones that facilitate the deployment of LLM on the device side and possess multimodal capabilities.The AI capabilities of smartphones are gradually evolving from single applications to cross-application collaboration,cross-de

68、vice collaboration,and end-cloud collaboration,promising consumers a more efficient and convenient intelligent experience suitable for diverse scenarios.This brings new development momentum to smartphones,the core hardware products of the consumer electronics industry,and subsequently drives the dev

69、elopment of related smart hardware products,such as smart wireless earphones,smart wearable devices,and smart home devices,as well as related precision component products.On the other hand,the rapid development of AI technology injects new vitality into the development of emerging smart hardware pro

70、ducts.There is an urgent need for AI technology to be integrated into consumer terminal devices to continuously acquire vast amounts of natural data to promote the evolution of Large Language Model,establish consumer usage stickiness,and innovate and close the business model loop.This demand has giv

71、en rise to a variety of new usage scenarios and product forms for emerging smart hardware products,such as AI smart glasses and AR devices that can call upon AI Large Language Model technology in real-time to provide consumers with personal intelligent assistant experiences.These products have devel

72、oped rapidly in 2024 and gained widespread market attention,also driving innovation and development in related technologies such as optics,micro-displays,sensors,advanced materials,and advanced packaging.Moreover,generative AI technology has shown great potential in the field of content creation,pro

73、mising to significantly improve the efficiency and cost of content creation in industries such as entertainment and gaming.It also brings imaginative possibilities for the future development of smart hardware that relies heavily on content,such as VR and gaming consoles.According to statistics from

74、the well-known consulting firm IDC,the worldwide shipments of smartphones in 2024 totaled approximately 1.24 billion units,representing a year-on-year increase of about 6.1%.This indicates a recovery in the overall market,which has also led to a recovery in the precision components market.Notably,pr

75、oducts related to AI voice interaction,such as acoustic sensors,have shown a clear trend of technological upgrading and an increase in the amount of product value.Similarly,according to IDC,the worldwide shipments of smart wearable devices in 2024 totaled approximately 190 million units,a slight yea

76、r-on-year decrease of about 1.3%,with the overall market remaining stable.The worldwide shipments of TWS earphones totaled approximately 280 million units,representing a year-on-year increase of about 14%and demonstrating a healthy growth trend.Against the backdrop of a moderate recovery in consumer

77、 electronics terminal demand,along with the implementation of AI technology on terminal devices and the ongoing iteration of hardware and software technologies,such as intelligent interaction and health monitoring,the aforementioned smart hardware products are expected to continue to maintain steady

78、 growth in the future.According to IDC,the worldwide shipments of VR,MR,and AR devices in 2024 totaled approximately 7.6 million units,representing a year-on-year increase of about 12%.Among them,the market size of VR/MR devices is showing signs of growth once again.With Full Text of Goertek Inc.Ann

79、ual Report 2024 12 the development of generative AI technology,future content creation efficiency is expected to be improved significantly,and the continuous enrichment of content will strongly support the long-term development of VR and MR devices.AR devices and the derivative AI smart glasses emer

80、ged as the most popular products in the market in 2024.Among these,AI smart glasses demonstrated particular promise,becoming a highly promising new product in both the consumer electronics and metaverse industries.According to statistics from the well-known consulting firm Counterpoint Research,the

81、worldwide shipments of AI smart glasses grew by 210%year-on-year in 2024,surpassing 2 million units for the first time.AI smart glasses have unique advantages in user data collection and human-computer interaction,and are expected to become an important carrier for the implementation of AI LLM techn

82、ology on the device side.This has led to sustained interest and investment from numerous well-known companies,underscoring their substantial market potential.At the same time,while the hardware technology and application scenarios of AR devices are still in the process of maturing,the industrys lead

83、ing enterprises have been actively promoting their release,accelerating the speed of technology iteration of related optics,displays,communications,and new materials.As a result,the maturity of the products is improving,and it is anticipated that this will usher in a new round of rapid development i

84、n the coming years.Facing the new trend of the integration of AI technology and emerging smart hardware products,as well as new opportunities in industries such as consumer electronics and the metaverse,the Company will make every effort to respond actively.Leveraging its existing advantages,the Com

85、pany will invest in research and development,explore new technological directions for emerging products,and continuously consolidate its core competitiveness.The Company will engage in long-term strategic cooperation with leading industry clients and actively expand its business in emerging smart ha

86、rdware and related precision components,thereby promoting the sustainable and healthy development of the Companys business.II.The Companys Main Business during the Reporting Period The Company serves the global leading clients in the technology and consumer electronics industry with vertically integ

87、rated product solutions of precision components and smart hardware,as well as R&D and manufacturing services.The Companys main business divides into three segments including precision components business,smart audio device business and smart hardware business.The precision components business focuse

88、s on acoustics,optics,microelectronics,structural components,and other precision components.The related products include micro speaker/receiver,speaker module,haptic component(actuator),wireless charging device,antenna,VR/MR optical devices and modules,AR optical devices,micro-nano optical devices,3

89、D structured light modules,AR optical device modules,AR HUD modules,MEMS acoustic sensors,other MEMS sensors,SiP,precision structural parts,etc.The above-mentioned products are widely applied in devices such as smartphones,tablets,smart wireless earphones,VR,MR,AR,AI smart glasses,smart wearable dev

90、ices,smart home devices,and automotive electronics devices.Smart audio device business focuses on providing products related to audio,voice interaction,AI,and other technologies.The main products include smart wireless earphones,smart speakers,etc.Smart hardware business focuses on providing product

91、s related to entertainment,health and home security.The main products include VR,MR,AR,smart wearable devices,gaming consoles and accessories,smart home devices,etc.The Company has innovative competitive advantages in the fields of acoustics,optics,MEMS microelectronics and precision manufacturing,a

92、nd owns many intellectual property rights in the field of precision parts and components.In addition,the Company has accumulated rich experience in products and projects by cooperating with industry-leading clients in the field of smart audio device and smart hardware through ODM,JDM and other busin

93、ess modes.During the reporting period,the Company maintained strong,long-term cooperative relationships with leading clients in the global technology and consumer electronics industry.As a result,the Company has been highly recognized by global clients for its product solutions and services,and rema

94、ins the industry-leading manufacturer in the fields of micro speakers,MEMS microphones,MEMS sensors,VR,MR,smart wearable devices,gaming console and accessories,etc.During the reporting period,the Company won multiple honors,including being ranked the 6th in the 2024 Top 100 Electronic Components Ent

95、erprises of China,18th in the 2024 Top 100 Competitive Enterprises in Chinas Electronics Information Industry,65th in the 2024 Top 500 Private Enterprises in China,and First Prize of Shandong Science and Technology Progress Award,iF Design Award,International Design Excellence Awards(IDEA),etc.Full

96、Text of Goertek Inc.Annual Report 2024 13.Analysis of Core Competitiveness 1.Industry-leading precision and intelligent manufacturing capabilities In technology and consumer electronics related fields,the Company has been widely recognized for precision manufacturing capabilities and obtains great r

97、eputation.Relying on the core capabilities and long-term experience in the field of precision manufacturing,the Company has continuously improved the processing accuracy,production efficiency and quality of precision components and smart hardware products.The Company has in-house development capabil

98、ities of various core raw materials,and The Company adopted multiple advanced processes and technologies such as ultra-high-precision mold,high-precision metal/non-metal processing,ultrasonic technology,and laser technology,to build industry-leading precision manufacturing capabilities in the produc

99、tion of precision optical components,micro-display devices,MEMS sensors,SiP and precision structural parts,thus ensuring the delivery of the products with high precision,high efficiency and high quality.The Company,based on the capacities of advanced equipment development and flexible automation pro

100、duction,actively explores the intelligent manufacturing mode for upgrading,and creates the GPS,Goertek Production System.In the fields of automation,machine vision and AI related to intelligent manufacturing,the Company has built a future-oriented core capability of intelligent manufacturing by cont

101、inuing investing in independent R&D,introducing global advanced technologies,core equipment and best practice experience for system integration,thus improving the manufacturing in all aspects through the application of information,automation,artificial intelligence and other technologies.The Company

102、 promotes the transformation of its manufacturing to a more digitalized,connected,intelligent,and service-oriented model,and to build the core capabilities of future-oriented intelligent manufacturing.2.Multi-technologies integration platform and strong team of R&D personnel The Company has establis

103、hed a product R&D and manufacturing platform integrating materials,structures,electronic circuits,software algorithms,wireless communication,advanced technology,testing,automation and other technologies.Through cross-domain technology integration,the Company provides customers with advanced and syst

104、ematic solutions for precision components and smart hardware products.The Company integrated and cultivated outstanding talents in the fields of acoustics,optics,microelectronics,micro-display,wireless communication,precision manufacturing,automation,and other sectors around the world.The Company ha

105、s set up a team of technical personnel with profound technical strength and rich experience in product projects,and has made long-term cooperation with many well-known universities and scientific research institutions,such as Tsinghua University,Shanghai Jiao Tong University,Shandong University,Sout

106、heast University,University of Science and Technology of China,Huazhong University of Science and Technology,and Hong Kong University of Science and Technology,which forms an open and comprehensive technology R&D platform in support of continuous innovation and R&D of technologies and products.Durin

107、g the reporting period,the Company and its subsidiaries applied for 2,663 patents,including 2,236 invention patents.A total of 1,830 patents have been granted,including 1,387 invention patents.As of December 31,2024,the Company and its subsidiaries have totally applied for 34,872 patents,including 4

108、,362 foreign patent applications and 20,132 invention patent applications;a total of 21,735 patents have been granted,including 8,196 invention patents.3.Continuous strategic innovation and transformation,and stable high-value client relationships Facing the complex macroeconomic situation of domest

109、ic and overseas,the management of the Company actively carries out strategical innovation and transformation.While continuing to consolidate the core competitive advantages in conventional business,the Company firmly grasps the innovation opportunities of next-generation smart hardware products,AI t

110、echnology,and metaverse in the technology and consumer electronics industry.Relying on high-value client resources and good client relationships worldwide,the Company,oriented by the market and technology,continues to expand the consumer electronics and automotive electronics business in areas such

111、as smart wireless earphones,VR,MR,AR,AI smart glasses,smart wearable devices,smart gaming consoles,smart home devices,and AR HUDs.In response to the trend of AI technology,the Company is actively exploring the application of AI algorithms,LLM,and MLLM in production,manufacturing,and management,furth

112、er enhancing the intelligence level of production and the informatization level of management operations,thereby consolidating the Companys industry position and core competitiveness.The Company optimizes the allocation of strategical resource,supports strategical product development,continues stren

113、gthening and further utilizing the client resource advantages by closely following the world-class customers,in an effort to transform the needs of high-value clients into an inexhaustible driving force for the Companys sustainable development.4.Excellent core management team Although the Company ex

114、periences a rapid and sound development,the core management team keeps a steady and efficient style as always.Facing the challenges and demands of next-generation smart hardware products in the post-mobile era such as rapid development,high quality,high precision manufacturing,short delivery cycle,a

115、nd complex client certification process,the core management team promptly responds to the market and makes changes and innovations continuously,to keep and enhance the Full Text of Goertek Inc.Annual Report 2024 14 Companys capabilities of strategic management,operation,R&D,precision and intelligent

116、 manufacturing.The Company attaches importance to and promotes the internationalization,specialization and rejuvenation of its core management team,and actively brings in senior management talents and professionals from many international leading enterprises.At the same time,the Company has strength

117、ened the echelon of its talent team,more and more young talents grow up into the Companys core management team through training and practice.The Company boasts a management team with both experience and vitality that continues to promote the Companys stable and fast development in the future.IV.Anal

118、ysis of Main Business 1.Overview During the reporting period,the Company,by adhering to the product strategy of Precision Components+Smart Hardware,served the leading enterprises in the global technology and consumer electronics industry,actively promoted the development of precision components(acou

119、stics,optics,microelectronics,structural parts,etc.)and emerging smart hardware business(VR/MR/AR,AI smart glasses,smart wireless earphones,smart wearable devices,smart home devices,etc.).At the same time,the Company has enhanced its business development within the automotive electronics sector,focu

120、sing on areas such as MEMS sensors and augmented reality heads-up display(AR HUD)modules.In the field of intelligent manufacturing,the Company is actively building the Goertek Production System(GPS),applying advanced AI technology to enhance the intelligence and informatization level of production,a

121、nd constructing a future-oriented intelligent manufacturing model with Goertek characteristics,thus continuously consolidating the Companys core competitiveness as a manufacturing enterprise.During the reporting period,the terminal demand in the consumer electronics industry recovered driven by new

122、technologies such as AI.With the recovery of industry demand,the Companys precision components business,smart audio devices business,and sub-product lines in the smart hardware sector,including VR,MR,and smart wearable devices,all progressed smoothly.The integration of AI technology and smart hardwa

123、re products has driven performance upgrades in products such as acoustic sensors within the Companys precision components business,leading to an increase in product value and profitability.The sales of the Companys VR and MR devices saw significant year-on-year growth,while the overall business of s

124、mart wireless earphones and smart wearable devices maintained healthy growth,with improvements in revenue scale and profitability.Affected by the normal decline in sales in the mid to late stage of the product life cycle,the operating income of some smart hardware projects with relatively low gross

125、margins declined,which constrained the overall revenue growth of the Company but had a positive impact on the overall business gross margin structure.At the same time,the Company has made significant progress in strengthening its lean operations and improving profitability.Ultimately,with a slight i

126、ncrease in overall revenue scale,the Companys profitability level significantly improved compared to the previous reporting period.During the reporting period,the Companys management team,based on the Companys client strategy,worked actively to promote continuous improvement in client-oriented aware

127、ness and client service capabilities.As a result,the Companys client cooperation relationships remained stable.In terms of internal operational management,the Company continued to promote efforts to improve operational management,maintaining high efficiency in internal decision-making processes.The

128、Company also actively explored the application of big data and AI technology in internal operational management,continuously enhancing the digitalization and informatization levels of the Companys operations.These efforts have established a solid management and operational foundation for the Company

129、s long-term future development.During the reporting period,the Company achieved revenue of RMB 100,953.85million,with a 2.41%YoY increase.The Company realized a net profit attributable to shareholders of listed companies of RMB 2,665.04 million,with a 144.93%YoY increase.The Companys operating costs

130、 amounted to RMB 89,759.39million,with a 0.01%YoY increase.During the reporting period,the total amount of the Companys selling expenses,general and administrative expenses,research and development expenses,and financial expenses was RMB 7,772.68 million,with a 0.33%YoY decline.During the reporting

131、period,the Company invested RMB 4,569.38 million in R&D,accounting for 4.53%of the revenue and 13.77%of the latest audited net assets attributable to the shareholders of listed companies.During the reporting period,the net cash flow from operating activities of the Company was RMB 6,200.45 million,w

132、ith a 23.94%YoY decline.Full Text of Goertek Inc.Annual Report 2024 15 2.Revenue and cost(1)Composition of revenue Unit:RMB 2024 2023 YoY change Amount Proportion in revenue Amount Proportion in revenue Total of revenue 100,953,848,156.08 100%98,573,902,273.14 100%2.41%Classified by industry Electro

133、nic components 98,545,585,814.34 97.61%95,885,691,189.51 97.27%2.77%Other business income 2,408,262,341.74 2.39%2,688,211,083.63 2.73%-10.41%Classified by product Precision components 15,050,929,866.12 14.90%12,991,833,787.27 13.18%15.85%Smart audio device 26,296,149,936.78 26.05%24,185,269,052.84 2

134、4.54%8.73%Smart hardware 57,198,506,011.44 56.66%58,708,588,349.40 59.56%-2.57%Other business income 2,408,262,341.74 2.39%2,688,211,083.63 2.73%-10.41%Classified by region Domestic 9,379,102,600.90 9.29%7,180,017,243.40 7.28%30.63%Overseas 91,574,745,555.18 90.71%91,393,885,029.74 92.72%0.20%Classi

135、fied by sales mode Direct selling 100,398,975,571.86 99.45%98,164,328,961.68 99.58%2.28%Distribution 554,872,584.22 0.55%409,573,311.46 0.42%35.48%(2)Industries,products,regions and sales modes accounting for more than 10%of the Companys revenue or operating profit Applicable Not applicable Unit:RMB

136、 Revenue Operating cost Gross profit margin YoY change(%)of revenue YoY change(%)of operating cost YoY change(%)of gross profit margin Classified by industry Electronic components 98,545,585,814.34 87,572,307,509.64 11.14%2.77%0.28%2.21%Classified by product Precision components 15,050,929,866.12 11

137、,813,778,081.46 21.51%15.85%14.37%1.02%Smart audio device 26,296,149,936.78 23,806,494,507.31 9.47%8.73%5.55%2.73%Smart hardware 57,198,506,011.44 51,952,034,920.87 9.17%-2.57%-4.57%1.90%Classified by region Domestic 7,431,287,003.70 6,729,030,381.85 9.45%27.29%25.08%1.60%Overseas 91,114,298,810.64

138、80,843,277,127.79 11.27%1.18%-1.35%2.27%Full Text of Goertek Inc.Annual Report 2024 16 Revenue Operating cost Gross profit margin YoY change(%)of revenue YoY change(%)of operating cost YoY change(%)of gross profit margin Classified by sales mode Direct selling 97,991,075,276.04 87,111,509,252.31 11.

139、10%2.63%0.16%2.19%Distribution 554,510,538.30 460,798,257.33 16.90%36.85%30.49%4.05%If the statistical caliber of the Companys main business data has been adjusted in the reporting period,adjusted statistics of main business are based on the caliber at the end of the reporting period of last year.Ap

140、plicable Not applicable(3)Whether the Companys revenue from physical products sales is greater than the revenue from providing services Yes No Classification of industry Item Unit 2024 2023 YoY change Electronic components industry Sales volume Ten thousand PCS 495,967.23 428,520.45 15.74%Output vol

141、ume Ten thousand PCS 503,833.02 425,166.92 18.50%Inventory volume Ten thousand PCS 46,388.60 38,522.81 20.42%Reasons for changes in the relevant data over 30%year-on-year Applicable Not applicable(4)Fulfillment of major sales contracts and major procurement contracts signed by the Company as of the

142、reporting period Applicable Not applicable(5)Composition of operating cost Classification of industry Unit:RMB Classification of industry Item 2024 2023 YoY change Amount Proportion in operating cost Amount Proportion in operating cost Electronic components Direct materials 76,426,496,813.47 87.27%7

143、6,130,381,986.14 87.18%0.39%Direct labor expenses 3,893,957,684.38 4.45%4,052,203,462.29 4.64%-3.91%Manufacturing expenses 7,251,853,011.79 8.28%7,143,465,552.32 8.18%1.52%(6)Whether there is any change in consolidation scope during the reporting period Yes No During the reporting period,the Company

144、 established 12 subsidiaries,including Shanghai Goertek Technology Development Co.,Ltd.,Qingdao Goertek Alpha Pixels Technology Co.,Ltd.,Chengdu Goertek Technology Co.,Ltd.,Xian Goertek Shijie Technology Co.,Ltd.,Goertek Starshine(Qingdao)Inc.,Goertek Electronics Vietnam Co.,Ltd.,Goertek Optical Tec

145、hnology(Hong Kong)Holdings Co.,Limited,Goertek Optical Technology(Hong Kong)Co.,Limited,Goermicro Technology Development Company Limited,Qingdao MicroSense Intelligent Technology Co.,Ltd.,Goertek Singapore Pte.Ltd.,and GMI Semiconductor Sdn.Bhd.During the reporting period,the Company deregistered 2

146、subsidiaries,namely Hefei 3D OptoLink Technology Co.,Ltd.and Jiaxing Guochao Optoelectronics Technology Co.,Ltd.Full Text of Goertek Inc.Annual Report 2024 17(7)Significant changes or adjustments in the Companys business,products or services during the reporting period Applicable Not applicable(8)Ma

147、jor clients and suppliers Major clients of the Company Total sales amount from top five clients(RMB)89,410,283,784.17 Proportion of total sales from top five clients to total annual sales 88.57%Proportion of sales from related parties among top five clients to total annual sales 0.00%Information of

148、top five clients No.Name of clients Sales amount(RMB)Proportion in total annual sales amount 1 Client 1 32,266,332,556.06 31.96%2 Client 2 28,367,523,997.92 28.10%3 Client 3 19,736,962,740.32 19.55%4 Client 4 4,677,129,312.56 4.63%5 Client 5 4,362,335,177.31 4.32%Total-89,410,283,784.17 88.57%Other

149、information of major clients Applicable Not applicable Major suppliers of the Company Total purchase amount from top five suppliers(RMB)34,473,499,479.54 Proportion of total purchase amount from top five suppliers to total annual purchase amount 42.91%Proportion of purchase amount from related parti

150、es among top five suppliers to total annual purchase amount 0.00%Information of top five suppliers No.Name of supplier Purchase amount(RMB)Proportion in total annual purchase amount 1 Supplier 1 15,806,990,923.89 19.68%2 Supplier 2 8,916,840,340.87 11.10%3 Supplier 3 5,930,418,795.12 7.38%4 Supplier

151、 4 1,948,577,549.33 2.43%5 Supplier 5 1,870,671,870.33 2.33%Total-34,473,499,479.54 42.91%Other information of major suppliers Applicable Not applicable Full Text of Goertek Inc.Annual Report 2024 18 3.Expenses Unit:RMB 2024 2023 YoY change Note of significant change Selling expenses 619,834,481.67

152、528,150,303.42 17.36%No significant change General and administrative expenses 2,200,022,715.70 2,202,814,353.55-0.13%No significant change Financial expenses 70,707,836.97 351,775,148.64-79.90%Mainly because of the increase in interest income and exchange income due to exchange rate fluctuations du

153、ring the reporting period.Research and development expenses 4,882,112,487.52 4,715,969,451.42 3.52%No significant change 4.R&D Investment Applicable Not applicable Name of major R&D project Purpose of project Status of project Objectives Expected benefits to future development of the Company R&D pro

154、ject of micro speaker module Develop micro speaker module products suitable for next-generation smart hardware with high sensitivity,low distortion,large amplitude,waterproof,and dustproof features.In progress Collaborate with major customers to iterate smart hardware products and meet technical req

155、uirements,complete R&D of a number of micro speaker module products,and achieve mass production and application on customer products.Continuously consolidate the Companys competitive advantage and market share in the field of acoustic precision components.R&D project of MEMS sensor and SiP To develo

156、p MEMS sensors and SiP products applied to next-generation smart hardware and automotive electronics.In progress To complete the R&D,verification,application,and mass production of MEMS sensors and SiP featuring AI smart voice interaction,adapterization and noise reduction,signal transmission,and st

157、atus monitoring,used in the field of smart hardware and automotive electronics The project facilitates the Companys business expansion in the field of MEMS sensors and SiP,and further enhances the Companys comprehensive strength in the field of MEMS.R&D project of VR/MR/AR precision optical componen

158、ts and modules Develop the precision optical components and module products by using emerging optical technologies such as Pancake folded-lightpath lenses and optical waveguide technology,and promote their application in VR/MR/AR devices.In progress Complete the R&D and mass production of optical le

159、ns and module products for a new generation of all-in-one VR/MR devices,and improve the ability of comprehensive solutions of optical devices and light engines for AR devices.The project helps enhance the Companys competitive advantage and market share in the field of VR/MR/AR precision optical comp

160、onents and modules,promote the Companys ability to provide customers with customized VR/MR/AR optical solutions,and improve the Companys vertical integration ability and profitability in the field of VR/MR/AR.Full Text of Goertek Inc.Annual Report 2024 19 Name of major R&D project Purpose of project

161、 Status of project Objectives Expected benefits to future development of the Company R&D project of AI smart glasses optical components and modules Develop high-performance,integrated,and lightweight optical devices and module products for AI smart glasses products that combine technologies such as

162、optical waveguides and micro-displays with traditional eyeglass lenses.In progress In response to the demand for AI smart glasses products,develop high-performance,integrated,and lightweight product solutions that merge traditional eyeglass lenses with optical waveguides and micro-display technologi

163、es,and achieve their application in terminal AI smart glasses products.This will help enhance the Companys vertical integration capability and overall competitiveness in AI smart glasses products,thereby enhancing the Companys business expansion capability and profitability in this field.R&D project

164、 of AR optical modules To develop micro projection modules for AI smart glasses,AR,AR-HUD,and so on,and promote its application in consumer electronics,automotive electronics,etc.In progress To complete the design,technical verification and commercial application of related micro projection modules,

165、and develop micro projection module solutions for consumer electronics and automotive electronics Enhance the competitiveness of the Company in AI smart glasses,and AR optical modules,and extend the Companys capabilities in optical modules to the field of automotive electronics R&D project of all-in

166、-one VR/MR Head Mounted Display(HMD)Develop lightweight all-in-one VR/MR HMD products featured with a high-definition display,precise motion tracking,and other features.In progress Cooperate with our customer to complete R&D,validation,and mass production of a number of new-generation all-in-one VR/

167、MR HMD products based on the latest chip platform The project helps consolidate the Companys competitive advantage and market share in the field of VR/MR.R&D project of smart wireless earphones Develop a new generation of smart wireless earphones In progress Cooperate with our customer to complete R

168、&D,validation,and mass production of a number of new-generation smart wireless earphones It helps consolidate the Companys competitive advantage and market share in the field of smart wireless earphones.R&D project of smart wearable devices for sport and health related applications Develop a new gen

169、eration of smart wearable devices with functions of independent communication,health monitoring features and etc.In progress Cooperate with our customer to complete R&D,validation,mass production of a new generation of smart watches and smart bands Consolidate the Companys competitive advantage and

170、market share in smart wearable devices such as smart watches and smart bands R&D project of smart wireless lightweight AR glasses Develop wireless lightweight AR glasses and their main functional modules for future AR applications.In progress To complete the R&D and trial production of a number of A

171、R glasses products,based on the latest chip platform,so as to develop the solution capability for AR glasses and their main functional modules It helps to promote the Companys R&D experience and technology accumulation in the field of AR and facilitate the business expansion of the Company in AR fie

172、ld.Details of R&D personnel 2024 2023 YoY change Number of R&D personnel 12,568 12,377 1.54%Proportion of R&D personnel to total number of employees 15.36%15.21%0.15%Education background of R&D personnel Bachelor 8,136 8,078 0.72%Master 2,797 2,417 15.72%Full Text of Goertek Inc.Annual Report 2024 2

173、0 2024 2023 YoY change Ph.D.75 63 19.05%Age structure of R&D personnel Below the age of 30 5,290 5,059 4.57%Aged between 30 and 40 6,134 6,329-3.08%Over the age of 40 1,144 989 15.67%The Companys investment in R&D 2024 2023 YoY change Amount of R&D Investment(RMB)4,569,383,945.08 4,572,855,380.03-0.

174、08%Proportion of R&D investment to revenue 4.53%4.64%-0.11%Capitalized amount of R&D investment(RMB)469,838,453.38 542,789,272.24-13.44%Proportion of capitalized R&D investment to R&D investment 10.28%11.87%-1.59%Reasons and impacts of significant changes in R&D personnel composition of the Company

175、Applicable Not applicable Reasons for significant changes in the proportion of total R&D investment in revenue compared with that of previous year Applicable Not applicable Reasons and explanation of its reasonableness of significant changes in capitalized R&D investment Applicable Not applicable 5.

176、Cash flow Unit:RMB Item 2024 2023 YoY change Sub-total of cash inflow from operating activities 87,061,772,095.75 80,166,508,468.96 8.60%Sub-total of cash outflow from operating activities 80,861,319,913.91 72,014,620,225.58 12.28%Net cash flow from operating activities 6,200,452,181.84 8,151,888,24

177、3.38-23.94%Sub-total of cash inflow from investing activities 16,293,851,949.50 5,194,943,904.22 213.65%Sub-total of cash outflow from investing activities 21,539,783,874.54 12,778,336,083.57 68.56%Net cash flow from investing activities-5,245,931,925.04-7,583,392,179.35 30.82%Sub-total of cash infl

178、ow from financing activities 33,711,467,799.59 29,078,690,255.10 15.93%Sub-total of cash outflow from financing activities 36,001,703,325.76 27,304,205,611.87 31.85%Net cash flow from financing activities-2,290,235,526.17 1,774,484,643.23-229.06%Net increase in cash and cash equivalents-1,361,835,54

179、6.83 2,352,733,172.97-157.88%Main influencing factors of significant year-on-year changes in relevant data Applicable Not applicable Full Text of Goertek Inc.Annual Report 2024 21 The net cash flow from operating activities was RMB 6,200.45 million,a year-on-year decrease of 23.94%,mainly due to an

180、increase in the closing balance of accounts receivable resulting from the year-on-year growth in revenue scale in the fourth quarter.The subtotal of cash inflow from investing activities was RMB 16,293.85million,with a year-on-year increase of 213.65%;the subtotal of cash outflow in investing activi

181、ties was RMB 21,539.78million,with a year-on-year increase of 68.56%;and the net cash flow from investing activities was RMB-5,245.93 million,with a year-on-year increase of 30.82%,mainly due to the increament in purchasing and the maturation of structured deposits,alongside a reduction in cash expe

182、nditures related to the acquisition and development of fixed assets and other long-term assets.The net cash flow from financing activities was RMB-2,290.24 million,a year-on-year decrease of 229.06%,mainly due to an increase in the deposits for bills and other business transactions.The reason for si

183、gnificant difference between the net cash flow from the Companys operating activities during the reporting period and net profit in current year.Applicable Not applicable The net cash flow from operating activities exceeded the net profit for the year by 139.74%,mainly due to non-cash items such as

184、depreciation of fixed assets and amortization of intangible assets.V.Analysis of Non-Main Business Applicable Not applicable Unit:RMB Amount Proportion in total profit Explanation of the cause Whether it is sustainable Investment income 109,040,057.77 3.93%Mainly for the investment income from certi

185、ficates of deposit of large amounts and foreign exchange derivative investments held by the Company.No Gains on changes in fair value 41,043,887.97 1.48%Mainly for changes in the fair value of equity investments held by the Company.No Asset impairment losses-643,065,577.73-23.18%Mainly for the provi

186、sions for asset impairment on certain inventories and fixed assets made by the Company.No Non-operating income 33,583,222.26 1.21%Mainly for amounts the Company is unable to pay and liquidated damages collected.No Non-operating expenses 107,214,393.27 3.87%Mainly the loss from the scrapping of the C

187、ompanys non-current assets.No Other income 256,120,767.94 9.23%Mainly for government grants included in the current profit and loss of the Company No VI.Analysis of Assets and Liabilities 1.Major changes in asset composition Unit:RMB End of 2024 Beginning of 2024 YoY change Note of significant chang

188、e Amount Proportion in total assets Amount Proportion in total assets Cash and cash equivalents 17,466,492,869.05 21.12%14,737,312,329.71 19.98%1.14%Mainly due to the decrease in net cash outflow from investment activities and the increase in cash inflow due to the exercise of equity incentives Full

189、 Text of Goertek Inc.Annual Report 2024 22 End of 2024 Beginning of 2024 YoY change Note of significant change Amount Proportion in total assets Amount Proportion in total assets Accounts receivable 17,881,372,031.94 21.62%12,424,618,676.81 16.85%4.77%Mainly due to the increase in the closing balanc

190、e of accounts receivable resulting from the year-on-year growth in revenue scale in the fourth quarter Contract assets Inventory 10,478,868,878.63 12.67%10,794,894,394.42 14.64%-1.97%Investment properties Long-term equity investments 734,411,641.50 0.89%760,220,882.07 1.03%-0.14%Fixed assets 21,803,

191、396,794.34 26.36%22,305,456,354.63 30.25%-3.89%Mainly due to the increase in the disposal of fixed assets by the Company during the reporting period Construction in progress 1,397,416,899.66 1.69%2,071,280,343.55 2.81%-1.12%Right-of-use assets 831,108,181.41 1.00%615,431,849.91 0.83%0.17%Short-term

192、borrowings 7,713,280,169.91 9.33%5,214,491,316.62 7.07%2.26%Mainly due to the increase in bank borrowings during the reporting period due to operational requirements Contract liabilities 4,052,359,576.04 4.90%3,472,638,215.20 4.71%0.19%Long-term borrowings 1,341,201,983.90 1.62%6,631,470,751.86 8.99

193、%-7.37%Mainly due to the transfer of certain long-term borrowings to non-current liabilities due within one year at the end of the reporting period.Lease liabilities 668,965,200.66 0.81%518,159,559.63 0.70%0.11%Accounts payable 21,962,224,256.37 26.55%17,582,263,359.17 23.84%2.71%Mainly due to the i

194、ncrease in accounts payable resulting from the growth in revenue scale in the fourth quarter.Non-current liabilities due within one year 4,923,444,540.44 5.95%1,072,169,260.73 1.45%4.50%Mainly due to the transfer of certain long-term borrowings to non-current liabilities due within one year at the e

195、nd of the reporting period.Foreign assets account for a relatively high proportion Full Text of Goertek Inc.Annual Report 2024 23 Applicable Not applicable Asset details Cause of formation Assets scale(RMB)Location Operation mode Measures to ensure asset safety Earnings Proportion of overseas assets

196、 in the net assets of the Company Whether there is a significant impairment risk Goertek Technology Vina Co.,Ltd.Establishment 5,365,247,150.40 Vietnam Production&sales Effective internal control mechanism Normal 16.17%No Other circumstances The assets scale refers to the net assets of overseas subs

197、idiaries.The proportion of overseas assets in the net assets of the Company refers to the proportion of the net assets of overseas subsidiaries in the net assets attributable to the shareholders of the listed company at the end of the reporting period.2.Assets and liabilities measured at fair value

198、Applicable Not applicable Unit:RMB Item Opening balance Profit and loss from changes in fair value in the reporting period Cumulative changes in fair value included in equity Impairment accrued in current period Purchase amount in the reporting period Sales amount in the reporting period Other chang

199、es Closing balance Financial assets 1.Financial assets held for trading(excluding derivative financial assets)483,215,197.26 91,494,430.64 10,602,489,796.00 10,628,530,463.95 548,668,959.95 2.Derivative financial assets 104,229,894.43 445,298,402.32 2,786,743.61 552,315,040.36 3.Investments in other

200、 equity instruments 591,269,883.71 -18,350,919.30 3,611,010.77-1,613,425.73 625,661,939.44 4.Other non-current financial assets 322,640,244.40-9,039,275.08 185,903,574.96 70,000,000.00 3,218,238.00 432,722,782.28 5.Receivables financing 9,059,230.11 -349,198.22 8,710,031.89 Sub-total of financial as

201、sets 1,510,414,449.91 527,753,557.88-18,350,919.30 10,788,393,370.96 10,702,141,474.72 4,042,357.66 2,168,078,753.92 Total of above amounts 1,510,414,449.91 527,753,557.88-18,350,919.30 10,788,393,370.96 10,702,141,474.72 4,042,357.66 2,168,078,753.92 Financial liabilities 129,579,785.95-486,709,669

202、.91 -11,309,212.87 604,980,242.99 Full Text of Goertek Inc.Annual Report 2024 24 Other changes None Whether the measurement attributes of major assets of the Company have changed significantly during the reporting period Yes No 3.Restrictions on asset rights as of the end of the reporting period Ite

203、m Book value at the end of the reporting period(RMB)Reasons for restrictions Cash and cash equivalents 5,012,975,983.79 Mainly for the deposits for bills,guarantees,and other business transactions.Notes receivable 113,923,842.73 Bill pledges,unconfirmed bill discounts,etc.Intangible assets 60,553,37

204、5.19 For mortgage loan Non-current assets due within one year 388,821,194.44 Mainly include certificates of deposits pledged for financing guarantee letters,bills,etc.Other current assets 592,758,666.66 Other non-current assets 731,674,555.99 Total 6,900,707,618.80 .Analysis of Investment 1.Overall

205、situation Applicable Not applicable Investment amount in 2024(RMB)Investment amount in 2023(RMB)YoY change 4,129,810,663.79 8,889,964,898.25-53.55%2.Major equity investments acquired during the reporting period Applicable Not applicable 3.Major non-equity investments in progress during the reporting

206、 period Applicable Not applicable Full Text of Goertek Inc.Annual Report 2024 25 4.Financial asset investment(1)Securities investment Applicable Not applicable Unit:RMB Security type Security code Security abbreviation Initial investment cost Accounting measurement model Opening book value Profit an

207、d loss from changes in fair value in the reporting period Cumulative changes in fair value included in equity Purchase amount in the reporting period Sales amount in the reporting period Profit and loss in the reporting period Book value at the end of the reporting period Accounting items Source of

208、funds Domestic and foreign stocks KOPN KOPN 67,530,463.95 Fair value measurements 43,356,500.16 24,173,963.79 67,530,463.95-19,000,471.79 Trading financial assets Self-raised funds Domestic and foreign stocks 2438.HK Mobvoi 122,344,000.00 Fair value measurements 141,654,000.00 -55,578,551.41 3,611,0

209、10.77-481,132.08 84,024,083.70 Investments in other equity instruments Self-raised funds Total 189,874,463.95-185,010,500.16 24,173,963.79-55,578,551.41 71,141,474.72-19,481,603.87 84,024,083.70-Date of announcement disclosure by the Board of Directors for approval of securities investment KOPN:Febr

210、uary 11,2017 Mobvoi:July 24,2015(listed on the Hong Kong Stock Exchange in April 2024).Date of announcement disclosure by shareholders meeting for approval of securities investment KOPN:March 2,2017(2)Derivatives investment Applicable Not applicable Full Text of Goertek Inc.Annual Report 2024 26 1)I

211、nvestments in derivatives for hedging during the reporting period Applicable Not applicable Unit:RMB 10,000 Type of derivatives investment Amount of initial investment Opening balance Profit and loss from changes in fair value in the reporting period Cumulative changes in fair value included in equi

212、ty Amount of purchase during the reporting period Amount of sales during the reporting period Closing balance Proportion of investment amount in the Companys net asset at the end of the reporting period Option-197,607.33-1,135.05 104,950.64 302,557.97 Forward-960,414.12-30,171.92 4,259,145.73 3,447,

213、044.18 1,772,515.67 53.41%Swap-644,525.70 27,165.84 2,059,457.69 1,920,447.79 783,535.60 23.61%Total-1,802,547.15-4,141.13 6,423,554.07 5,670,049.95 2,556,051.27 77.02%Description of whether the accounting policies and specific accounting principles for the Companys hedging business has changed sign

214、ificantly compared with that of previous reporting period The Companys derivatives transactions are calculated in accordance with Accounting Standards for Business Enterprises No.22 Recognition and Measurement of Financial Instruments.The initial measurement is based on the fair value of the derivat

215、ives on the date of the signing of the transaction contracts,and the subsequent measurement is based on its fair value.The derivative instrument with positive fair value is recognized as an asset,while the one with negative fair value is recognized as a liability.The profits and losses generated by

216、changes in fair value are directly recognized in current profit and loss.The accounting policies and specific accounting principles for the Companys derivatives have no significant change compared with that of previous reporting period.Statement of actual profit and loss in the reporting period The

217、Company and its subsidiaries confirmed the profit and loss situation of derivative transactions for 2024,recognizing a fair value change loss of RMB 41.41million and investment income of RMB 76.31million,totaling a profit of RMB 34.90million.Statement of hedging effect To avoid exchange rate risks i

218、n daily operations,the Company hedged against its risks through financial derivatives.The changes in the value of the financial derivatives effectively hedged the risk of changes in the existing position,and the overall hedging result is within expectations.Source of funds for derivatives investment

219、 Self-raised funds Full Text of Goertek Inc.Annual Report 2024 27 Risk analysis and control measures for derivatives positions during the reporting period(including but not limited to market risk,liquidity risk,credit risk,operational risk,legal risk,etc.)1.The financial derivatives transactions car

220、ried out by the Company are for the purpose of fixing costs,avoiding and preventing risks of foreign exchange rate and interest rate,and prohibiting any risk speculation.The trading quota of the Companys financial derivatives shall not exceed the authorized quota as reviewed and approved by the Boar

221、d of Directors or the general meeting of shareholders.2.The Company has formulated a strict management system for financial derivatives transactions,which clearly stipulates the operating principles,approval authority,responsible departments and persons,internal operating procedures,information isol

222、ation measures,internal risk reporting system and risk handling procedures,and information disclosure of financial derivatives transactions,in order to control trading risks arising therefrom.3.The Company shall carefully review the terms of contracts signed with qualified banks and other financial

223、institutions,and strictly implement the risk management system to prevent legal risks.4.The Companys business personnel will continue to track the changes in the open market price or fair value of financial derivatives,timely assess the changes in risk exposure of financial derivatives transactions,

224、and regularly report to the management of the Company.If any abnormal situation,inform the Board of Directors of the risk and take emergency measures accordingly.5.The internal audit department regularly conducts internal audit on the compliance of financial derivatives transactions.In case of chang

225、es in market price or fair value of invested derivatives during the reporting period,the analysis of fair value of the derivatives shall disclose the specific methods used and the setting of relevant assumptions and parameters Changes in the fair value of foreign exchange derivatives are calculated

226、based on the difference between the fair market price and the contract price in the month of the settlement date determined by the Company.Involvement in litigation(if applicable)None Date of announcement disclosure by the Board of Directors for approval of the investment in derivatives March 28,202

227、4 Date of announcement disclosure by shareholders meeting for approval of the investment in derivatives May 22,2024 Full Text of Goertek Inc.Annual Report 2024 28 2)Investments in derivatives for speculation during the reporting period Applicable Not applicable The Company did not make any investmen

228、t in derivatives for speculation during the reporting period.5.Use of raised funds Applicable Not applicable No use of funds in the reporting period of the Company.Sales of Major Assets and Equities 1.Sales of major assets Applicable Not applicable The Company did not sell any major assets during th

229、e reporting period.2.Sales of major equity Applicable Not applicable.Analysis of Major Subsidiaries and Associates Applicable Not applicable Major subsidiaries and associates with an impact of more than 10%on the Companys net profit Unit:RMB Name of company Type of company Main business Registered c

230、apital Total assets Net asset Revenue Operating profit Net profit Yili Precision Manufacturing Co.,Ltd.Subsidiary Electronic component manufacturing 675,850,000 3,200,795,166.64 1,120,323,434.41 3,210,299,124.47 305,072,201.26 282,802,850.45 Goertek(Hong Kong)Co.,Limited Subsidiary Trade investment

231、USD 1,000,000 25,758,433,298.73 2,512,937,310.08 76,026,030,088.56 650,816,725.92 636,082,296.46 Goertek Technology Vina Co.,Ltd.Subsidiary Electronic component manufacturing USD 120,000,000 9,448,722,077.44 5,365,247,150.40 20,192,780,792.39 1,437,900,861.90 1,317,606,703.46 Goertek Electronics Vie

232、tnam Co.,Ltd.Subsidiary Electronic component manufacturing USD 60,000,000 1,721,989,962.36 136,832,810.04 1,424,351,455.41-293,067,243.66-292,948,873.14 Acquisition and disposal of subsidiaries during the reporting period Applicable Not applicable Name of company Approach on acquisition and disposal

233、 of subsidiaries during the reporting period Impact on overall production,operation and performance Shanghai Goertek Technology Development Co.,Ltd.Newly established No significant impact Qingdao Goertek Alpha Pixels Technology Newly established No significant impact Full Text of Goertek Inc.Annual

234、Report 2024 29 Name of company Approach on acquisition and disposal of subsidiaries during the reporting period Impact on overall production,operation and performance Co.,Ltd.Chengdu Goertek Technology Co.,Ltd.Newly established No significant impact Xian Goertek Shijie Technology Co.,Ltd.Newly estab

235、lished No significant impact Goertek Starshine(Qingdao)Inc.Newly established No significant impact Goertek Electronics Vietnam Co.,Ltd.Newly established See the table above Goertek Optical Technology(Hong Kong)Holdings Co.,Limited Newly established No significant impact Goertek Optical Technology(Ho

236、ng Kong)Co.,Limited Newly established No significant impact Goermicro Technology Development Company Limited Newly established No significant impact Qingdao MicroSense Intelligent Technology Co.,Ltd.Newly established No significant impact Goertek Singapore Pte.Ltd.Newly established No significant im

237、pact GMI Semiconductor Sdn.Bhd.Newly established No significant impact Hefei 3D OptoLink Technology Co.,Ltd.Cancel No significant impact Jiaxing Guochao Optoelectronics Technology Co.,Ltd.Cancel No significant impact Description of major subsidiaries and associates None.Structural Entities Controlle

238、d by the Company Applicable Not applicable XI.Outlook for the Future Development of the Company 1.Industry trend and competition In recent years,the consumer electronics industry has gradually entered the post-mobile era.Influenced by global macroeconomic fluctuations,insufficient end-user demand,an

239、d a lack of hardware technological innovation,the growth rate of some emerging smart hardware products has slowed down.Major global technology and consumer electronics manufacturers are actively exploring new technological breakthroughs and industry development opportunities.At the same time,generat

240、ive AI technologies,such as Large Language Model and Multimodal Large Language Model,are undergoing rapid development.The integration of AI technology with the consumer electronics industry and smart hardware products is expected to open up new avenues for industry development,bringing a new round o

241、f growth opportunities for global technology and consumer electronics manufacturers.According to the forecast of IDC,the global shipment of smartphones is expected to reach 1.26 billion units in 2025,with approximately a 2.3%YoY increase.The CAGR of global shipment of smartphones from 2024 to 2029 i

242、s expected to be around 1.6%.As one of the core hardware products in the consumer electronics industry,smartphones serve as terminal hardware platforms that combine computing,communication,display,and intelligent interaction functions.They are also one of the core edge devices where AI technology in

243、tegrates with smart hardware products.In the coming years,the integration of AI technology with smartphone products is expected to deepen continuously.Leading enterprises are likely to successively launch smartphones equipped with AI features,providing consumers with a more intelligent and efficient

244、 user experience while also generating new market demand and development momentum for smartphone products.Moreover,intelligent interaction with AI Large Language Model will become an important application scenario for smartphone products,which will also contribute to the growth in market demand for

245、high-performance acoustic sensors,speakers,and other precision components.According to the updated forecast of IDC,the global shipment of VR/MR devices is expected to reach 15.3 million units in 2028.The CAGR of global shipment of VR/MR devices from 2025 to 2028 is expected to be around 24%.The rapi

246、d development of generative AI technology is expected to accelerate the resolution of the current issues faced by VR and MR devices regarding software and insufficient richness of content,thereby promoting consumer demand,enhancing product usage stickiness,and better supporting Full Text of Goertek

247、Inc.Annual Report 2024 30 innovation and development in business models.The industry is expected to maintain healthy long-term growth through hardware upgrades and iterations,an increase in the number of end users,and the continued development of application scenarios and content.According to the up

248、dated forecast of IDC,the global shipment of AR devices is expected to reach 6.9 million units in 2028.The CAGR of global shipment of AR devices from 2025 to 2028 is expected to be around 78%.Under the active investment and promotion of leading industry enterprises,the pace of hardware technology in

249、novation for AR devices is accelerating,with clearer technical solution routes and continuously improving product maturity,which is likely to see a new round of rapid development in the coming years.At the same time,AI smart glasses represent one of the most popular smart hardware product innovation

250、 directions in the global technology and consumer electronics industry.AI smart glasses have unique advantages in user data collection and human-computer interaction,and are expected to become an important carrier for the implementation of AI Large Language Model technology on the device side.This h

251、as led to sustained interest and investment from numerous well-known companies.Compared to AR devices,AI smart glasses focus more on AI assistant scenarios,with a simpler product definition and more mature technical solutions.The AI smart glasses products,which primarily feature intelligent voice in

252、teraction and image recognition,have already reached a significant global market size and are expected to experience explosive growth in the next three years.As technologies such as optics,micro-displays,and SiP continue to mature,future AI smart glasses products are expected to incorporate image di

253、splay and visual interaction functions,providing consumers with a more comprehensive AI assistant experience and potentially driving long-term,rapid growth in the AI smart glasses market.According to the forecast of IDC,the global shipment of TWS earphones is expected to reach 300 million units in 2

254、025,with approximately a 6.8%YoY increase.The CAGR of global shipment of TWS earphones from 2025 to 2028 is expected to be around 4%.With the continued penetration of AI Large Language Model technology into smartphone products,the usage scenarios for intelligent voice interaction are expected to con

255、tinue to increase.Smart wireless earphones,as one of the key hardware devices for intelligent voice interaction,are likely to benefit from this trend.Additionally,driven by product form innovation and the optimization of features such as spatial audio,health monitoring,and sports tracking,the shipme

256、nts of smart wireless earphones are projected to experience steady growth in the future.According to the forecast of IDC,the global shipment of smart wearable devices is expected to reach 195 million units in 2025,with approximately a 1.1%YoY increase.The CAGR of global shipment of smart wearable de

257、vices from 2025 to 2028 is around 0.4%.The global market for smart wearable devices presents significant opportunities for substantial growth.For millions of people around the globe who has hypertension,diabetes,and sub-health issues,high precision and reliable health monitoring technologies,especia

258、lly precise electrocardiogram monitoring,blood pressure monitoring,and non-invasive blood sugar monitoring technologies,are currently the focus of innovation of the industry.Breakthroughs in the technologies of the above fields are expected to bring dramatic growth to smart wearable devices before l

259、ong.Overall,the rapid development of AI technology will inject new vitality into the development of emerging smart hardware products.The implementation of AI technology on terminal devices will also give rise to a more diverse array of emerging smart hardware product forms and usage scenarios.Leadin

260、g global technology and consumer electronics enterprises are actively investing resources in related fields and continuously launching emerging smart hardware products equipped with AI technology.With the drive of the industry and the recovery of the macroeconomy and consumer electronics sector,emer

261、ging smart hardware products are expected to continue to develop healthily in the future.This will promote performance improvements and market demand growth for related products such as acoustics,optics,sensors,SiP,micro-display devices,haptic devices,and precision structural components,thereby brin

262、ging new development opportunities for the Company.In light of this development opportunity,the Company will make every effort to respond proactively by leveraging its existing advantages,investing in research and development,and exploring new technological directions for emerging products.The Compa

263、ny will continue to strengthen its core competitiveness,establish long-term strategic partnerships with leading industry clients,and actively expand its emerging smart hardware and related precision component businesses to promote the Companys sustained and healthy development.From the perspective o

264、f industry competition,the global technology and consumer electronics industry still presents a centralized trend.Well-known enterprises with strong competitiveness and brand awareness demonstrate clear competitive advantages by possessing a large number of technologies,talents,funds,brands,and indu

265、strial ecosystem resources.These enterprises are committed to enhancing their investments in emerging technologies,including smart hardware and AI.It is anticipated that they will maintain their leadership in technological innovation and product development within the consumer electronics sector.Con

266、currently,in the global competition for AI LLM technology,some emerging enterprises and startups are actively investing,developing,and launching numerous high-performance technologies and products.These innovations have the potential to become a new force driving global industry technological progre

267、ss and changing the industry landscape.The Company will closely monitor the trends and developments of these manufacturers.From the perspective of industry supply chain layout,on one hand,China still has advantages in terms of political/economic environment,infrastructure,industrial foundation manag

268、ement/technical talent resources,and other aspects.The overall Full Text of Goertek Inc.Annual Report 2024 31 competitiveness of electronic manufacturers in China is improving,and they undertake the demand for manufacturing services of the global supply chain.On the other hand,considering the compli

269、cated international political and economic environment,some enterprises faced the challenges of setting up a global supply chain,which needs to be tackled prudently in a scientific manner.2.Strategy for future development Looking into the future,the Company will actively respond to the national call

270、 for the in-depth implementation of the innovation-driven development strategy,optimizing and upgrading the industrial structure,enhancing the leading role of technological innovation,and accelerating the development of a modern industrial system,capitalize on industrial opportunities in the post-mo

271、bility era by closely monitoring the advancements and applications of AI technology,and diligently observe the developmental trends of cutting-edge technologies,including 6G,IoT.The Company will continue to strengthen its development in the field of next-generation smart hardware products and relate

272、d precision components,constantly consolidate the strategical cooperation with world-class clients,and fulfill the economic and social responsibilities of the enterprises,thus achieving stable and healthy growth of the Companys value in return for shareholders.(1)Actively grasp the new opportunities

273、 in the post-mobile era,and further promote the Companys strategy of precision components+smart hardware.Continue to strengthen the competitiveness of precision components and smart hardware products,actively seize the new opportunities for the application of AI technology in consumer electronics,an

274、d actively develop next-generation smart hardware products and related precision component businesses.Utilize the synergy between the Companys component business and integrated device business,continue to strengthen the core capabilities in precision and intelligent manufacturing,build a GPS for the

275、 future of the intelligent manufacturing era,and provide clients with the first-class vertically integrated product solutions and one-stop R&D and manufacturing services.(2)Continue the key-account strategy,remain client-oriented,continuously maintain good relationships with core clients,and utilize

276、 the Companys advantages in client resources.Focus on serving leading clients in the global technology and consumer electronics industry,and continue to consolidate long-term strategic cooperation with clients.Closely follow the strategical planning and development of world-class clients,and to crea

277、te a global system of R&D,manufacturing and sales services accordingly.Continue to satisfy our clients with our business,technology,engineering,operation and delivery services,in order to achieve win-win cooperation and to grow with the world-class clients.(3)Adhere to technological innovation and c

278、ontinue to invest in R&D.Constantly improve the Companys technical competitiveness in acoustics,optics,microelectronics,micro-display,precision manufacturing,automation,IT technology,software algorithm,etc.,to build the core technical competitiveness for future development of the Company.Firmly impl

279、ement the talent strategy by recruiting outstanding personnel in management and technology fields around the world,build and effectively motivate a first-class talent team,thus providing sufficient talents for the future development of the Company.(4)Constantly improve corporate governance and manag

280、ement,and promote the standardized and efficient internal operation.Continuously improve the internal processes and internal management system.Strengthen the awareness of lean operation,improve the level of lean operation and seek benefits from it.Being market-oriented and client-oriented,continue t

281、o push forward internal reform and innovation,and to build core competitiveness upon continuous reform and innovation activities.The Company will continuously enhance the level of digitalization and informatization of its internal operations management,and actively explore the application of big dat

282、a and AI technology in enterprise operations management.Create an excellent corporate culture,undertake the core values of client orientation,employee development,trustworthy,cooperation and mutual benefits,and earnestly fulfill the economic and social responsibilities of the enterprise,to become a

283、respected world-class enterprise.3.Business operation during the reporting period and business plan for next year During the reporting period,the Company adhered to a client-oriented approach and a major customer strategy,leveraging the synergy between its component and integrated device businesses.

284、The Company successfully completed important tasks such as business expansion,project delivery,and operational improvement,further consolidating its core competitiveness and industry competitive position.With the recovery of end-user demand in the consumer electronics industry,the Companys precision

285、 component business,intelligent acoustic complete machine business,and sub-segment product lines in the smart hardware sector,including VR/MR and smart wearable devices,have all progressed smoothly.Ultimately,while the overall income scale saw a slight increase,the overall level of profitability imp

286、roved significantly year-over-year.Looking ahead to 2025,with the further development of generative AI technologies such as Large Language Model and Multimodal Large Language Model,as well as the deeper integration of AI technology with emerging smart hardware products,the end-user demand for global

287、 consumer electronics products is expected to continue to grow.High-performance precision component products suitable for AI smart hardware,as well as smartphones,smart wireless earphones,AI smart glasses,MR,AR,smart wearable devices,and smart home devices equipped with richer AI features,are expect

288、ed to see further development.Based on the integration of established competitive advantages in the fields of precision components and smart hardware products,the Company will closely Full Text of Goertek Inc.Annual Report 2024 32 monitor and actively seize new opportunities arising from the converg

289、ence and development of emerging smart hardware and AI technologies.The management and the staff of the Company will continue to implement our strategy and to achieve business objectives,so as to return the investors with good business performance and continuous growth of the value of the Company.(1

290、)Adhere to the strategy and grasp development opportunities The Company will seize the emerging opportunities arising from the integration of AI technology and emerging smart hardware products by adhering to the precision components+smart hardware strategy and utilizing the synergy between the compo

291、nents and integrated device business.On the one hand,the Company will continue to strengthen its research and development of technologies and products in fields such as acoustics,optics,microelectronics,and precision structural components,thereby enhancing the Companys future-oriented core competiti

292、veness in the precision component field.On the other hand,the Company will actively seek opportunities in emerging smart hardware projects and expand the application of its self-developed precision component products,including acoustics,optics,micro-displays,sensors,SiP,and precision structural comp

293、onents in related projects.By integrating the core capabilities in precision manufacturing and intelligent manufacturing,the Company will continuously enhance its solution capabilities and profitability.(2)Adhere to the client-orientation philosophy,and identify and serve strategic clients Follow th

294、e development plan of strategic clients,the Company will carry out corresponding business,technology R&D,product plans,and capacity plans.Focusing on the future product needs of strategic clients,the Company will conduct forward-looking technology and product research and development,and build capab

295、ilities for future-oriented overall solutions.The Company works with strategic client in their business schedules and provides industry-leading full-process R&D and manufacturing services.The Company will continuously enhance its ability to serve strategic clients,strengthen client loyalty through h

296、igh-level service,consolidate strategic partnerships,and achieve mutual benefits cooperation with clients.(3)Empower business expansion and create new opportunities While consolidating existing business competitive advantages,the Company will continuously develop new business directions and opportun

297、ities in response to the integration of AI technology and emerging smart hardware.The Company will actively seize new opportunities in fields such as acoustic devices,haptic devices,precision optical devices and modules,micro-display modules,sensors,SiP,AI smart glasses,MR,AR,smart wireless earphone

298、s,smart wearable devices,and smart home devices.Additionally,the Company will continue to expand the application of its precision component products in the automotive electronics sector,and create new business growth points around the needs of leading clients in the consumer electronics and automoti

299、ve electronics industries.(4)Improve lean operation and complete successful delivery of key projects The Company will constantly promote the idea of lean operation to improve the level of operation and to support the business objectives with high-quality and efficient operation.The Company will acti

300、vely build a GPS and establish a new intelligent manufacturing model that meets future market needs.The Company will make thorough planning of its resources,ensure the delivery of key projects that closely related to the strategy and the business objectives,and to achieve the goals of the Company.(5

301、)Continue to invest in independent R&D and technological innovation,strengthen core competitiveness with talent strategy The Company will continue to invest in R&D and technological innovations centered on future strategic directions,and strengthen its technical capabilities in the fields of acousti

302、cs,optics,microelectronics,micro-display,precision manufacturing,and intelligent manufacturing.The Company will embrace the management and technical talents globally,keep bringing in high-level talents,carry out solid efforts in the selection,cultivation,motivation and retention of talents,and to su

303、pport the Companys strategic implementation and business development with high-quality talent echelon.(6)Effectively control risks and maintain healthy operation The Company will continue to maintain a sound business strategy,strengthen risk awareness,pay close attention to changes in the external e

304、nvironment,perform effective control on risk indicators in production operation of the Company,take the initiative to identify and resolve potential risks,and ensure sustainable development of production and operation activities.4.The demand and planning of fund The Company maintains a healthy asset

305、 and liability structure,and obtained a good long-term cooperative relationship with banks and other major financial institutions.In 2025,the Company will continue to improve the management of cash,optimize payment terms,control capital expenditure,and enhance the efficiency of funds.The Company wil

306、l carefully evaluate various financing tools to optimize the asset-liability ratio and debt structure.The Company will also carefully manage financial derivatives trading activities with strict standards,to actively avoid liquidity risks,foreign exchange risks,and interest risks,and with all the mea

307、sures above,to thus provide stable and sufficient financial support to the development of the Company.5.Future risks(1)Macroeconomic risks Full Text of Goertek Inc.Annual Report 2024 33 Global economy has yet to recover.Unfavorable factors that affect investment and consumption still exist,which may

308、 influence the development of the global technology and consumer electronics industry in the short term.The world political and economic situation remains complex and grim.Trade disputes between major countries and geopolitical events have brought uncertainties to the global economy,which may advers

309、ely affect the business of the Company.Some intelligent hardware products,such as smartphones,have slowed down in growth rate,and some next-generation smart hardware products may develop slower than expected.This may impact the global market demand as well as the Companys business performance.(2)Ope

310、rational risks Risks of relatively concentrated clients The competitive pattern of global technology and consumer electronics industry,along with the Companys business model and key account strategy,determined a relatively concentrated client structure.As a result,the business income from a few core

311、 clients accounts for a large proportion of the Companys overall revenue.Although the aforementioned clients are all leading global industry enterprises with significant competitive advantages and market positions,and have maintained long-term stable cooperative relationships with the Company,if maj

312、or clients experience fluctuations in their business activities due to various factors,or if the cooperative relationship between the clients and the Company changes,it may bring corresponding fluctuations and risks to the Companys business.Risks of exchange rate fluctuation The export business acco

313、unts for a high proportion of the Companys overall revenue.At the same time,the Company also imports a considerable number of raw materials,equipments and other products from overseas.These import and export businesses are primarily settled in US dollars.Although the Company has adopted appropriate

314、risk hedging tools,the significant fluctuation of foreign exchange rates may still bring certain exchange rate risks to the Company.Risks of loss of core technical talents The technology and consumer electronics industry is a talent-intensive industry.Therefore,the demand for core technical talents

315、is strong,and the competition for talent is very fierce.Core technical talents are the key resources for the Company to continuously improve its core competitiveness and realize long-term development.For this reason,the Company will continue to improve various incentive and restraint mechanisms in o

316、rder to retain core technical talents.Under fierce competition,there may still be the loss of core technical talents,which may put the Company at a disadvantage in the competition and affect the business development in some cases.(3)Risks of management In recent years,the Companys various product li

317、nes have expanded rapidly,leading to a larger business scale and a wider range of products.This has placed higher demands on the Companys overall operational and management capabilities.The Company implements the strategic plan of developing core client business and exploring new opportunities,which

318、 also requires the Companys management to maintain excellent abilities of judgment,execution and management.If the Companys management fails to match the business growth,or fails to be improved to meet the needs of the Companys development,it may affect the execution of strategic planning and the de

319、livery of business objectives,thus bringing management risks to the Company.Reception,Research,Communication,Interview and Other Activities during the Reporting Period Applicable Not applicable Reception time Reception place Type of communication Type of attendees List of attendees Main content of d

320、iscussion and information provided Index of related information April 8,2024 The Company Other Other Investors participated in the Companys performance presentation meeting of 2023 The Companys overall operation and business development The record of investor relations activities on April 8,2024 iss

321、ued by CNINFO(http:/)Full Text of Goertek Inc.Annual Report 2024 34 Reception time Reception place Type of communication Type of attendees List of attendees Main content of discussion and information provided Index of related information May 7,2024-May 9,2024 Brokerage Strategy Conference Other Inst

322、itutional Investors Institutional investors include JPMorgan Asset Management,Huachuang Securities,GF Fund Management,AEGON-INDUSTRIAL Fund Management,Bank Of Communications Schroder Fund Management,China Asset Management,and China Merchants Fund Management.The Companys overall operation and busines

323、s development The record of investor relations activities from May 7,2024 to May 9,2024,issued by CNINFO(http:/)July 17,2024-July 18,2024 The Company Field research Institutional Investors Institutional investors include GF Fund Management,China Asset Management,AEGON-INDUSTRIAL Fund Management,Wanj

324、ia Asset Management,China Southern Asset Management,and Harvest Fund Management.The Companys overall operation and business development The record of investor relations activities on from July 17,2024 to July 18,2024,issued by CNINFO(http:/)XIII.Formulation and Implementation of the Market Value Man

325、agement System and Valuation Enhancement Plan Whether the Company has established a market value management system.Yes No Whether the Company has disclosed the valuation enhancement plan.Yes No To further strengthen the Companys market value management,standardize the Companys market value managemen

326、t conducts,and protect the legitimate rights and interests of the Company,investors,and other stakeholders,the Company has formulated the Market Value Management Rules of Goertek in accordance with relevant laws,regulations,normative documents such as the Company Law,the Securities Law,Regulatory Gu

327、idelines for Listed Companies No.10 Market Value Management,Rules Governing the Listing of Stocks on Shenzhen Stock Exchange,Self-Regulatory Guidelines No.1 for Companies Listed on Shenzhen Stock Exchange-Normative Operation of Listed Companies on the Main Board,as well as the provisions of the Arti

328、cles of Association,taking into account the actual situation of the Company.This system was deliberated and approved at the 22nd meeting of the 6th board of directors held on December 27,2024.In the future,the Company will strictly adhere to the relevant requirements of laws,regulations,and the mark

329、et value management rules.The Company is committed to enhancing the awareness of investor returns,taking measures to protect the investors interests,particularly those of small and medium-sized investors,conducting operations with honesty and integrity,prioritizing its main business,and maintaining

330、stable operations.By cultivating and utilizing new quality productive forces,the Company aims to improve the operational level and quality of development,effectively manage investor relations,and improve the quality and transparency of Full Text of Goertek Inc.Annual Report 2024 35 information discl

331、osure.If necessary,the Company will proactively implement measures to enhance investor confidence and promote the investment value of the Company to reasonably reflect its quality.XIV.Implementation of the Action Plan for Improving Quality and Investor Returns Whether the Company has disclosed the A

332、ction Plan for Improving Quality and Investor Returns?Yes No To protect the interests of all shareholders,the Company has formulated the Action Plan for Improving Quality and Investor Returns.The specific measures and progress made by the Company are as follows:1.Focus on the main business,create va

333、lue for shareholders,and take actions to feedback the society The Companys main business include precision components business,smart audio device business and smart hardware business.The Company serves the leading global clients in the technology and consumer electronics industry by providing them with vertically integrated product solutions of precision components and smart hardware,as well as re