Financial News


Coretronic Corporation Announces First Quarter 2021 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the first quarter of 2021. For the first quarter ended on Mar. 31, 2021, Coretronic posted consolidated sales revenue of NT$10,023 million, due to the traditional off-season and the impact of supply chain and flights shortages, decrease 13% QoQ but it was 20% growth compared with the same period last year. Consolidated gross margin for the quarter was 16.5%, decreased by 1% as compared with 17.5% in the previous quarter but increased by 0.7% over the same period last year, mainly due to better utilization rate and revenue growth. Operating income was NT$78 million, a 62% QoQ decrease, but compared with the consolidated operating loss of NT$189 million in 1Q20, it was a significant increase of NT$267 million. Net income was NT$363 million, representing a 3% decrease QoQ, but compared with the net loss of NT$58 million in 1Q20, it was a significant increase of NT$421 million. Net income attributable to equity holders of the parent company was NT$386 million, decrease 7.6% from NT$418 million in the previous quarter and a significant increase of NT$381 million from the same period last year. The basic EPS* for the first quarter were NT$0.93 based on the total weighted average outstanding shares and NT$0.99** calculated on the basis of Mar. 31, 2021 outstanding shares.

“For the first quarter of 2021, the overall sales revenue of Energy Saving Business Group was NT$5,114 million, and the overall shipment was 12.52 million units, a decrease of 7% and 1% respectively from the previous quarter. This was due mainly to the TV shipments was limited by the lack of shipping containers then could not meet the order demand. Compared with the same period last year, thanks to the growth of TV/PID and NB model shipments driven by the WFH and distance education demand, revenue increased by 19% YoY, and shipments also increased significantly by 49%. ” said Ms. Sarah Lin, President of Coretronic. Looking forward to the second quarter of 2021, Sarah pointed out that the demand momentum of the stay-at-home economy continues, although facing with shortage of materials and containers, however, the shipments of all product lines in 2Q21 are showing an upward trend which will drive the overall shipments to increase by about 10% QoQ. Among them, TV/PID shipments with the largest growth rate, which will drive the ASP to improve. Looking forward to the future development of operations, as customer demand shows a trend of above-seasonality in an off season and the peak season is more prosperous, Sarah expects the overall shipments will grow by 20% this year, mainly due to the increase in TV/PID demand and the business with new NB customers. Sarah also update that the capacity expansion of Vietnam factory I and Wujiang factories will be gradually completed in 2Q21 as planned, and is expected to have a positive contribution to the overall operation of Energy Saving products business in 2021. At the same time, it is expected that the location of Vietnam factory II will be determined before the end of the second quarter then the details of the subsequent construction of the factory will be planned to meet the customer's order requirements in 2022.

“Affected by shortage of materials and unstable flights, the shipment of Visual Solutions products was 196K unit in 1Q21, drop 9% QoQ, while the sales revenue was NT$2,907 million, representing a 5% QoQ decrease. Compared with the same period last year, the demand of various lighting sources and product lines such as home entertainment, business, large venues and commercial applications have all increased, therefore, the shipment and revenue grown significantly by 16% and 38% YoY, respectively. Looking forward to second quarter of 2021, due to the increase demand driven by stay-at-home economy and sports events while large venue models are also seeing recovery momentum, although the shortage of materials is serious, the team of Visual Solutions has quickly introduced various countermeasures, thus, the overall shipment in 2Q21 is expected to grow by 20% QoQ.” said Mr. SY Chen, President of Coretronic. Looking into future development, SY explained that the company will maintain stable sales in the lamp based model market by providing more competitive products and full SSI product portfolio is expected to drive SSI sales, especially in UST, 4K. Along with vaccination and post Covid-19, demand for large venues will gradually return to a steady growth trend. SY expects the overall shipments of Visual Solutions will grow by 10%~20% in 2021.

Looking into 2021 overall development strategy, the company will continue to optimize the existing two major business groups to grow steadily, while developing complete solutions for cloud services and various smart fields, developing and mastering key component technologies with in house manufacturing capabilities. Continuous to deploy the advanced technologies area such as "image recognition, AI and cloud premium service" in order to expand new growth momentum, and hope the COVID-19 pandemic end as soon as possible, the global society returns to its normal track and allowing the world economy connection recover and revitalize growth.

* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (416m shares in 1Q21, 434m shares in 4Q20 & 1Q20)
** 1Q21 basic EPS was calculated based on Mar. 31, 2021 outstanding shares (391m shares), 4Q20 and 1Q20 basic EPS was calculated based on Dec. 31, 2020 outstanding shares (434m shares).