Financial News


Coretronic Corporation Announces Fourth Quarter 2020 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the fourth quarter of 2020. For the fourth quarter ended on Dec. 31, 2020, Coretronic posted consolidated sales revenue of NT$11,494 million, decrease 4% QoQ and drop 12% YoY. Consolidated gross margin for the quarter was 17.5%, decrease by 0.1% as compared with 17.6% in the previous quarter and drop by 0.7% over the same period last year, mainly affected by unfavorable exchange rate. Operating income was NT$208 million, decrease 41% from NT$354 million in the previous quarter, and a drop of 49% compared to the same period last year. Net income was NT$376 million, representing a 32% decrease QoQ and a 5% up YoY. Net income attributable to equity holders of the parent company was NT$418 million, decrease 29% from NT$585 million in the previous quarter and an increase of 7% from the same period last year. The basic EPS* for the fourth quarter were NT$0.96.

For the fiscal year of 2020, Coretronic reported consolidated sales revenue of NT$42,438 million, drop 12.9% YoY. Consolidated gross margin was 17.5%, decreased by 0.6% compared with 18.1% in 2019, resulting from unfavorable exchange rate. Operating income totaled NT$692 million, drop 42% YoY. Net income was reported at NT$1,395 million, up 20% YoY. Net income attributable to equity holders of the parent company was NT$1,560 million, a 35% increase YoY. The basic EPS* for 2020 was NT$3.59, which was also an increase from NT$2.65 in 2019.

“The overall sales revenue of Energy Saving Business Group was NT$5,516 million in 4Q20, drop 15% QoQ, due mainly affected by tight supply of LCD components and shortage of containers for TV shipment. The overall shipment was 12.66 million units in 4Q20, representing 2% QoQ increase, mainly driven by the growth of Monitor/NB shipments. For the fiscal year of 2020, the sales revenue amounted to NT$22,010 million, drop 8% YoY, and the shipment was 45.72 million units, increase 10% YoY, mainly from the growth of TV/PID and NB driven by WFH and distance education.” said Ms. Sarah Lin, President of Coretronic. Looking forward to the first quarter of 2021, Sarah pointed out that due to Direct-Labor shortage improved and overtime in CNY, the overall shipment in the first quarter is expect to be similar as 4Q20. Looking forward to the future development of operations, Sarah expects the overall shipments will grow by 10%~20% this year, mainly due to the increase in TV/PID demand and the business with new NB customers. Sarah also updates the progress of plant expansion and pointed out that the Vietnam factory has officially shipped TV models in Jan., and gradually with higher volume from Feb. The Wujiang two factories are also expanding the TV/NB production line to fulfill customer needs, and it is expected to make a positive contribution to the overall operation of Energy Saving products business in 2021. Facing market competition, the Energy Saving Business Group will continue to increase the proportion of intelligent manufacturing and optimize the production process, gaining new customers in different industries with the advantages of quality, technology and service so as to expand the scale of operations and grow together with customers to create a win-win situation.

“Although the shortage of materials caused by the epidemic affected some of the output, the shipment of Visual Solutions products was 215K unit in 4Q20, up 8% QoQ, while the sales revenue was NT$3,053 million, representing a 3% QoQ increase, mainly due to the growth in shipments of 4K Laser TVs and Lamp-based models. For the fiscal year of 2020, the shipment was 779K units and sales revenue was NT$10,921 million, drop 18% and 25% YoY respectively, mainly due to the impact of Covid-19 on the global economy. Looking forward to 1Q21, affected by shortage of materials, unstable flights and off-season, overall shipments will decrease by around 10% QoQ.” said Mr. SY Chen, President of Coretronic. Looking into future development, SY explained that although the overall business conditions to be defined by the pandemic, however, the stay-at-home economy and the technology trend from lamp shifting to SSI will provides growth opportunities for home entertainment, 4K, SSI and Pro-AV models. Expect the overall shipments of Visual Solutions will grow by 10%~20% in 2021. SY pointed out that Visual Solutions products will strengthen intelligent design, integrate cloud services and customize H/W, S/W to capture growth when recovery sets in, provide customers with advanced projection solutions and AiO LED display applications in the AIoT era, gradually enhance the growth momentum of operations.

Looking into 2021 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. In order to expand new growth momentum, Coretronic will continuous to deploy the advanced technologies area such as "image recognition, AI and cloud premium service", and hope the COVID-19 pandemic end as soon as possible, to implement the promotion of globalization and move towards the goal of sustainable development of the Company.

* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares).