Glonghui March 26 | Nexteer (01316.HK) announced its annual results. For the year ended December 31, 2023, the Group achieved a record annual revenue of US$4.2 billion, exceeding US$4 billion for the first time in the company's history. For the year ended December 31, 2023, the Group's revenue increased by 9.6% compared to 2022, and all three regional divisions were positively affected as automakers' automobile production increased again on an annual basis compared to 2022.
In 2023, the Group continued to face unfavorable market conditions. Inflationary pressures brought about by rising labor and energy prices adversely affected the Group's profit margins. Foreign exchange changes such as the appreciation of the Mexican peso against the US dollar and the depreciation of the renminbi against the US dollar are also an adverse factor affecting profits. The Group experienced particularly severe challenges in its North America division, including the UAW strike and supplier disruptions, which affected the company's ability to meet customer needs and led to the shutdown of one of our largest customers. In order to stabilize the situation, the company incurred excessive freight, overtime and additional labor costs. At the end of 2023, the troubled supplier's jobs were completely redistributed to replacement suppliers. The Group immediately took short-term cost saving measures to mitigate the financial impact of such events. In addition, the Group implemented fixed expenditure reduction measures, including but not limited to implementing voluntary early retirement plans in the US, continuing to expand global engineering capabilities, and optimizing manufacturing layout.
Compared with the year ended December 31, 2022, gross profit was US$368.6 million, an increase of 0.4%; profit before income tax was US$64.2 million, a decrease (30.1%); profit attributable to the company's equity holders was US$36.7 million, a decrease (36.7%), while adjusted EBITDA was US$346.6 million, a decrease (5.0%). The decline in profits attributable to equity holders in 2023 is due in large part to the challenges in the North American segment described above. For the year ended December 31, 2023, the Group's profits were adversely affected by supplier disruptions, UAW strikes, and restructuring efforts, amounting to US$49.3 million, US$15.3 million and US$10 million, respectively.