2020/07/28
Coretronic Corporation Announces Second Quarter 2020 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the second quarter of 2020. For the second quarter ended on June 30, 2020, Coretronic posted consolidated sales revenue of NT$10,635 million, increase 27% QoQ but drop 6% YoY. Consolidated gross margin for the quarter was 18.5%, an increase of 2.7% as compared with 15.8% in the previous quarter and drop by 0.6% over the same period last year, mainly due to the unfavorable product mix caused by the outbreak of coronavirus. Operating income was NT$320 million, a significant improvement from the previous quarter’s operating loss of NT$189 million, and a 33% increase from the same period last year. Net income was NT$525 million, compared with the NT$58 million loss in the previous quarter, which also increased sharply, and was a 138% increase from the same period last year. Net income attributable to equity holders of the parent company was NT$552 million, a significant increase of NT$547 million from NT$5 million in the previous quarter, and a substantial increase of 183% from the same period last year. The basic EPS* for the second quarter were NT$1.27.
For the first half of 2020, Coretronic reported consolidated sales revenue of NT$19,004 million, drop 16% YoY, affected by COVID-19 outbreak. Consolidated gross margin was 17.3%, decreased by 0.5% compared with 17.7% in the first half of 2019, mainly due to the decline in plant utilization rate. Operating income totaled NT$130 million, drop 57% YoY. Net income was reported at NT$467 million, up 45% YoY. Net income attributable to equity holders of the parent company was NT$557 million, a significant increase of 93% over the same period last year. The basic EPS for the first half of this year was NT$1.28, which was also an increase from NT$0.67 in the same period last year.
“The overall shipment of Energy Saving Business Group was 12.19 million units in 2Q20, representing 45% QoQ increase & up 28% YoY. The overall sales revenue was NT$5,683 million, up 32% QoQ and increase 6% YoY. For 1H of 2020, the shipment was 20.6 million units and the sales revenue amounted to NT$9,983 million, up 5% and 7%, respectively.” said Ms. Sarah Lin, President of Coretronic. Looking forward to the third quarter of 2020, Sarah pointed out that shipments of NB models will decrease slightly, and shipments of monitor models will also forecast declined. However, the mass production of new large-size TV models will drive TV shipments to grow by more than 70%. PID system assembly business will also start in the third quarter. Therefore, although the overall shipment volume is similar to the second quarter, the ASP of shipments will rise due to the increase in the proportion of large-size shipments. Look into the future operational development, Sarah indicates that the new factory built by Coretronic Optics (Suzhou) Co., Ltd. in Wujiang, China was officially commercial run in July, and the existing factories in Suzhou area will be gradually consolidated to improve production and management efficiency. In addition, affected by trade war and COVID-19, the industry supply and demand sectors will gradually shift. In order to meet customer needs, Coretronic Vietnamese subsidiary will be established in the Saigon Hi-Tech Park in Ho Chi Minh City, Vietnam, which will initially focus on the production of TV models, and is expected to be mass-production in the fourth quarter of this year.
“For 2Q20, the shipment of Visual Solutions products was 194K units, up 15% QoQ, while the sales revenue was NT$2,811 million, representing a 34% QoQ increase, mainly benefited from the increase in the shipment proportion of SSI solid-state light sources and high-end engineering models to drive the ASP increase by 17% QoQ. For 1H of 2020, the shipment was 363K units and sales revenue was NT$4,914 million, drop 8% and 26% YoY respectively, resulting from COVID-19 pandemics and economy lockdowns in Europe & USA. Looking forward to 3Q20, the lift of lockdowns will gradually lead to demands bounce back from all sectors, the sales momentum of home entertainment and education tender models continues to rise, and the demand for large venues and commercial models are also expected to gradually recover the momentum.” said Mr. SY Chen, President of Coretronic. SY also stated that numbers of new products will be mass-production in 3Q20, including high-brightness models, fixed-lens Pro-AV products and the new CinemaX smart 4K laser TV series. Furthermore, we will launch new high-lumen LED platform to address high demand for SSI market. “Coretronic will continues to actively develop innovative display solutions, introduce advanced technology fields such as image recognition, AI, 5G, and cloud services to help customers transcend the boundaries of projection applications in the age of AIoT, and gradually increase the operating growth momentum.” said SY Chen.
* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares).
For the first half of 2020, Coretronic reported consolidated sales revenue of NT$19,004 million, drop 16% YoY, affected by COVID-19 outbreak. Consolidated gross margin was 17.3%, decreased by 0.5% compared with 17.7% in the first half of 2019, mainly due to the decline in plant utilization rate. Operating income totaled NT$130 million, drop 57% YoY. Net income was reported at NT$467 million, up 45% YoY. Net income attributable to equity holders of the parent company was NT$557 million, a significant increase of 93% over the same period last year. The basic EPS for the first half of this year was NT$1.28, which was also an increase from NT$0.67 in the same period last year.
“The overall shipment of Energy Saving Business Group was 12.19 million units in 2Q20, representing 45% QoQ increase & up 28% YoY. The overall sales revenue was NT$5,683 million, up 32% QoQ and increase 6% YoY. For 1H of 2020, the shipment was 20.6 million units and the sales revenue amounted to NT$9,983 million, up 5% and 7%, respectively.” said Ms. Sarah Lin, President of Coretronic. Looking forward to the third quarter of 2020, Sarah pointed out that shipments of NB models will decrease slightly, and shipments of monitor models will also forecast declined. However, the mass production of new large-size TV models will drive TV shipments to grow by more than 70%. PID system assembly business will also start in the third quarter. Therefore, although the overall shipment volume is similar to the second quarter, the ASP of shipments will rise due to the increase in the proportion of large-size shipments. Look into the future operational development, Sarah indicates that the new factory built by Coretronic Optics (Suzhou) Co., Ltd. in Wujiang, China was officially commercial run in July, and the existing factories in Suzhou area will be gradually consolidated to improve production and management efficiency. In addition, affected by trade war and COVID-19, the industry supply and demand sectors will gradually shift. In order to meet customer needs, Coretronic Vietnamese subsidiary will be established in the Saigon Hi-Tech Park in Ho Chi Minh City, Vietnam, which will initially focus on the production of TV models, and is expected to be mass-production in the fourth quarter of this year.
“For 2Q20, the shipment of Visual Solutions products was 194K units, up 15% QoQ, while the sales revenue was NT$2,811 million, representing a 34% QoQ increase, mainly benefited from the increase in the shipment proportion of SSI solid-state light sources and high-end engineering models to drive the ASP increase by 17% QoQ. For 1H of 2020, the shipment was 363K units and sales revenue was NT$4,914 million, drop 8% and 26% YoY respectively, resulting from COVID-19 pandemics and economy lockdowns in Europe & USA. Looking forward to 3Q20, the lift of lockdowns will gradually lead to demands bounce back from all sectors, the sales momentum of home entertainment and education tender models continues to rise, and the demand for large venues and commercial models are also expected to gradually recover the momentum.” said Mr. SY Chen, President of Coretronic. SY also stated that numbers of new products will be mass-production in 3Q20, including high-brightness models, fixed-lens Pro-AV products and the new CinemaX smart 4K laser TV series. Furthermore, we will launch new high-lumen LED platform to address high demand for SSI market. “Coretronic will continues to actively develop innovative display solutions, introduce advanced technology fields such as image recognition, AI, 5G, and cloud services to help customers transcend the boundaries of projection applications in the age of AIoT, and gradually increase the operating growth momentum.” said SY Chen.
* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares).
