Financial News


Coretronic Corporation Announces First Quarter 2023 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the first quarter of 2023. For the first quarter ended on Mar. 31, 2023, Coretronic posted consolidated sales revenue of NT$9,571 million, decreased by 14.3% and 27.2% compared with the fourth quarter and the same period last year, mainly due to the shipments of the two major product lines were affected by off-season and less working days due to holidays. Consolidated gross profit was 16.7%, a decrease of 3% from 19.7% in the previous quarter, mainly due to the unfavorable exchange rate while an increase of 1.4% from 15.3% in the same period last year, resulting from product mix optimization. Operating income was NT$64 million, a decrease of 82.6% and 80.2% compared to the previous quarter and the same period last year, respectively. Net income was NT$193 million, a decrease of 42.2% and 60.6% from the previous quarter and the same period last year. Net income attributable to equity holders of the parent company was NT$253 million, which is a decrease of 32.1% from NT$372 million in the previous quarter and a decrease of 47.2% from NT$479 million in the same period last year. The basic EPS** for the first quarter was NT$0.65.

“For the first quarter of 2023, the overall sales revenue of Energy Saving Business Group was NT$4,149 million, a decrease of 9.1% QoQ, and the shipments were 670 million units, a decrease of 3.8% QoQ, respectively, mainly due to the impact of the traditional off-season and reduced working days.” said Ms. Sarah Lin, President of Coretronic. "Regarding the 2Q23 operation, Sarah stated that the NB models would gradually regain their growth momentum, while TV/PID shipments would remain flat due to the increase in panel prices, which might suppress demand. Therefore, it is estimated that the overall shipments of Energy Saving products in the second quarter will experience a slight increase compared to the first quarter." Looking forward to future business development, Sarah stated that considering the impact of the international political and economic situation on the recovery of the economy, the company conservatively expects that the overall shipments of Energy Saving products will increase slightly in 2023. The main growth will come from TV/PID and NB models, while Monitor models are expected to decline. Sarah further explained the future strategy and pointed out that Coretronic aim to provide customers complete and multi-integrated LCD and OLED customized display solutions, with the goal of pursuing higher profits and value, and grow steadily. Furthermore, plans to 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, so as to develop more extreme and forward-looking display products.

“The sales revenue of Visual Solutions products in the first quarter was NT$3,131 million, and the shipment was 237K unit, representing a decrease of 11% and 6% compared with the fourth quarter, respectively. These figures also reflect a decrease of 24.7% and 15.9% compared to the same period last year, mainly due to off-season and holidays.” said Ms. Sarah Lin. Regarding the operation in 2Q23, Sarah said that inflation and seasonal factors continue to interfere with the recovery of consumer products. However, with the gradual mass production of new products, the operating results are expected to grow month by month. It is estimated that the overall shipment of Visual Solutions products in the second quarter will grow by about 10% QoQ. Sarah also explained that Visual Solutions products will launch the world's smallest, brightest, and most environmentally friendly laser engineering and commercial projectors, ensuring SSI light sources as the core to consolidate our position as DLP #1 in the market. In addition, the company will expand into the new TV/Gaming market and introduce a new smart PICO projector, which will help continue our leading-edge. Sarah expects the overall shipments of Visual Solutions products to increase quarter by quarter in 2023, with annual shipments projected to grow by more than 10% compared to 2022.

*Basic EPS was calculated based on the total weighted average outstanding share of each quarter (391m shares in 1Q23, 4Q22 and 1Q22)