Financial News


Coretronic Corporation Announces Fourth Quarter 2022 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the fourth quarter of 2022. For the fourth quarter ended on Dec. 31, 2022, Coretronic posted consolidated sales revenue of NT$11,171 million, decreased by 13.4% and 26.1% compared with the third quarter and the same period last year, mainly due to the shipments of the two major product lines were affected by unfavorable factors such as the overall political and economic instability, inflation, and off-season. Consolidated gross profit was 19.7%, a decrease of 1.1% from 20.8% in the previous quarter, mainly due to the decrease in plant utilization rate and unfavorable exchange rate while an increase of 2.6% from 17.1% in the same period last year, resulting from product mix optimization and favorable exchange rate. Operating income was NT$368 million, a decrease of 52.4% and 34.9% compared to the previous quarter and the same period last year, respectively. Net income was NT$334 million, a decrease of 55.3% and 37.6% from the previous quarter and the same period last year. Net income attributable to equity holders of the parent company was NT$372 million, which is a decrease of 46.7% from NT$697 million in the previous quarter and a decrease of 29.5% from NT$527 million in the same period last year. The basic EPS** for the fourth quarter was NT$0.95.

For the fiscal year of 2022, Coretronic reported consolidated sales revenue of NT$49,783 million, equivalent to the consolidated sales revenue of NT$49,833 in 2021. With favorable exchange rates and optimized product mix, consolidated gross margin was 19%, an increase of 1.5% from 17.5% of 2021. Operating income totaled NT$2,151 million, an increase of 30.6% compared to 2021. Net income was reported at NT$2,413 million, and net income attributable to equity holders of the parent company was NT$2,359 million, an increase of 18.3% and 16.1% respectively over last year. The basic EPS** for 2022 was NT$6.03, which was an increase from NT$5.12* based on the weighted average outstanding shares of last year and NT$5.2** based on Dec. 31, 2021 outstanding shares.

“For the fourth quarter of 2022, the overall sales revenue of Energy Saving Business Group was NT$4,566 million and the shipments were 7.27 million units, decrease 14.7% and 14% QoQ respectively, mainly due to the impact of the off-season. For the fiscal year of 2022, the sales revenue amounted to NT$22,590 million and the shipment was 40.01 million units, decrease of 16.8% and 34.2% YoY, respectively, mainly due to the impact of the Russian-Ukrainian war and inflation on consumer buying sentiment, which led to the slow digestion of inventory in the industrial chain and other negative factors.” said Ms. Sarah Lin, President of Coretronic. Regarding the operation in 1Q23, Sarah said that due to traditional off-season and the reduction in working days, the overall shipment of Energy Saving products in the first quarter will decrease by about 10%. Looking forward to future business development, Sarah said that due to the poor overall economic outlook and continued inflation and consumption deflation, it is conservatively expected that the overall shipments of Energy Saving products will grow slightly in 2023, mainly due to the increase in TV/PID and NB demand, while Monitor models will continue to decline. Facing the changing competitive environment, Sarah said that in addition to consolidating existing customers and product lines, Coretronic will focus on vehicle integrated privacy products and public display digital signage in the growth area of market demand, and various products with a small amount of variety and highly customized nature products, and will keep technological innovation close to market demand to develop more extreme and forward-looking display products, aim to provide customers complete and diversified integrated customized display solutions, with the goal of pursuing higher profits and value, and grow steadily.

The shipment of Visual Solutions products was 253K unit in 4Q22, and the sales revenue was NT$3,517 million, drop 39% and 41% QoQ respectively, it was mainly affected by the off-season and the shortage of some materials. For the fiscal year of 2022, the shipment was 1,358K units, and sales revenue was NT$19,320 million, a significant increase of 56% and 51% respectively compare with 2021, mainly benefited from the growth in shipments of home entertainment and smart Pico projections, as well as the boom in shipments of large venue commercial models after the lockdown was lifted.” said Ms. Sarah Lin. The overall shipment of Visual Solutions products in 1Q23 will decline by more than 10% QoQ due to the impact of off-season and fewer working days, while it is expected that the demand will pick up sharply in the second quarter and the overall shipment will grow by more than 20% in 2023. Looking forward to the future operation and development of Visual Solutions products, Sarah said that according to the market research, the global shipments of projectors including Laser TVs will be about 6.5 million units, YoY increase about 6%. Among them, the 4K/UHD, smart projection, and home entertainment markets will continue to grow, and the Pro-AV, education and high-end engineering models markets will gradually stabilize due to the unblocking of the pandemic. In the mainstream market, Coretronic will continue to use SSI models as the core to consolidate the position of DLP#1, and actively deploy the smart Pico projector market, focusing on the expansion of new customers in the new TV/Gaming market to expand our leading-edge. In addition, it will continue to diversify its products and technology development, and focus on specific applications to enlarge the advantage of projection technology. The overall operation aims to pursue high profits, high value, and steady growth.

*Basic EPS was calculated based on the total weighted average outstanding share (391m shares in 2022 and 397m shares in 2021)
**Basic EPS was calculated based on the outstanding share of the balance sheet date (391m shares in 2022 and 2021)