2024/02/27
Coretronic Corporation Announces Fourth Quarter 2023 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the fourth quarter of 2023. For the fourth quarter ended Dec. 31, 2023, Coretronic reported consolidated sales revenue of NT$9,888 million, which decreased by 4.9% compared to the third quarter of 2023 and a 11.5% decrease compared to the same period last year. The decline was mainly due to factors such as weak demand affected by the off-season effect. Consolidated gross profit for the fourth quarter was 20.2%, due to unfavorable exchange rates and capacity utilization, there was a decrease of 1.5% compared to the previous quarter's 21.7%. Compared to the same period last year, there was a 0.5% increase from 19.7%, which can be attributed to decreased manufacturing costs and a favorable product mix. Operating income for the fourth quarter reached NT$200 million. This marked a decline of 57.7% compared to the third quarter and a decline of 45.7% compared to the same period last year. Net income after tax in the fourth quarter amounted to NT$222 million, drop 47.3% and 33.6% compared to the third quarter and the same period last year, respectively. Net income attributable to equity holders of the parent company was NT$260 million in the fourth quarter, representing a 44.3% decrease from NT$467 million in the previous quarter and a 30% decrease from NT$372 million in the same period last year. The basic EPS* in the fourth quarter of 2023 was NT$0.66.
Due to the turbulent international political and economic situation, as well as the continued interference of inflation affecting the recovery of consumer products, etc., unfavorable factors have impacted the momentum of global economic recovery. For the fiscal year of 2023, Coretronic reported consolidated sales revenue of NT$39,492 million, representing a 20.7% decrease compared to the NT$49,783 million in 2022. The consolidated gross margin was 19.9%, an increase of 0.9% from 19% of 2022, mainly due to the benefits from the product mix. The operating income totaled NT$931 million, a decrease of 56.7% compared to 2022. The net income was reported at NT$1,202 million, with the net income attributable to equity holders of the parent company at NT$1,392 million. This represents a decrease of 41% compared to last year. The basic EPS** for 2023 was NT$3.56, which was a decrease from NT$6.03** based on the weighted average outstanding shares of last year.
“For the fourth quarter of 2023, the overall sales revenue of Energy Saving products amounted to NT$4,426 million, affected by the off-season, there was an 8% decrease compared to the previous quarter and a 3% decrease compared to the same period last year. The shipments for this quarter reached 7.51 million units, showing a 9% decrease from the previous quarter but a 3% increase YoY. For the fiscal year of 2023, the sales revenue amounted to NT$17,514 million, a decrease of 22.5% YoY, and the shipment was 30.47 million units, a decrease of 24% YoY, respectively. The decline mainly due to factors such as weak demand, slow inventory turnover, and inflation.” said Ms. Sarah Lin, President of Coretronic. Regarding the 1Q24 operation, Sarah stated that due to traditional off-season and the reduction in working days, the overall shipment of Energy Saving products in the first quarter is expected to decrease slightly. However, with the introduction of sports events and the addition of new large and medium-sized products and new customers, it is expected that the overall shipment volume of Energy Saving products in 2024 will increase by 10% to 20% or more. Looking forward to future business development, Sarah pointed out that in addition to factories in China, the company has also established factories in Vietnam, among the major backlight module suppliers in Taiwan, Coretronic is relatively leading in implements the Southern policy. Furthermore, the implementation of ESG principles, such as energy saving and green design technologies, has been faster than that of other competitors. Meanwhile, Coretronic not only expands its product business in existing application areas but also implements intelligent manufacturing to enhance efficiency and cost competitiveness. Additionally, it will continue to develop combination platforms such as touch modules, mechanical design, and electronic solutions according to the trends in the energy saving display market. With a flexible business model, it aims to provide customers with complete and diverse integrated customized display solutions. The Energy Saving products business will maintain a certain level of competitiveness based on factors such as rapid adaptability and economies of scale, with the goal of pursuing higher profits and value, and grow steadily.
“In the fourth quarter, sales revenue of Visual Solutions products reached NT$3,324 million, with a shipment volume exceeding 223K units. This marked a 12% and 16% decrease from the third quarter, respectively, and a 6% and 11% decrease compared to the same period last year. The decline was primarily attributed to weaker-than-expected economic conditions, resulting in sluggish brand marketing and demand." “For the fiscal year of 2023, the sales revenue totaled NT$13,564 million, with a shipment volume of 975K units. These figures reflect a 30% decrease in revenue and a 28% decrease in shipments compared to 2022. This decline can be attributed to several factors, including the higher base period of shipments for the new smart Pico projector products in 2022, the global economic downturn, as well as the impact of inflation on consumer demand.” said Ms. Sarah Lin. For the operational performance in 1Q24, Sarah estimates that the overall shipment volume of Visual Solutions products will experience a slight decrease compared to the previous quarter due to the influence of the off-season and holidays. Additionally, due to factors such as inventory clearance, stabilization of the supply chain, and the boost from sporting events, the market expects significant growth in home entertainment and smart projection products. Demand for commercial and educational models may remain steady due to the influence of political and economic situations. However, the engineering projection market is expected to gradually stabilize as a result of developments in the cultural and tourism industry and the deployment of large public space projections. Therefore, Sarah anticipates a substantial resurgence in demand for Visual Solutions products starting from the second quarter, with overall shipments expected to grow by over 20% in 2024. Looking forward to the future operation and development, Visual Solutions products will continue to focus on advancing Laser light source technology and patent portfolio while integrating advanced AI/smart technology to enhance connectivity between intelligent applications and various fields. Simultaneously, we will deepen our exploration of specific fields and automotive projection display applications to position ourselves for the next wave of growth momentum. For the continuously growing pico-projection market, we will offer various customized optical engine or final product services. Furthermore, Coretronic will continue to actively address the issue of climate change by incorporating environmental sustainability into its green projection products, and will continue to provide users with more captivating visual experiences. 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 of each quarter (391m shares in 4Q23, 3Q23 and 4Q22)
**Basic EPS was calculated based on the total weighted average outstanding share (391m shares in 2023 and 2022)
Due to the turbulent international political and economic situation, as well as the continued interference of inflation affecting the recovery of consumer products, etc., unfavorable factors have impacted the momentum of global economic recovery. For the fiscal year of 2023, Coretronic reported consolidated sales revenue of NT$39,492 million, representing a 20.7% decrease compared to the NT$49,783 million in 2022. The consolidated gross margin was 19.9%, an increase of 0.9% from 19% of 2022, mainly due to the benefits from the product mix. The operating income totaled NT$931 million, a decrease of 56.7% compared to 2022. The net income was reported at NT$1,202 million, with the net income attributable to equity holders of the parent company at NT$1,392 million. This represents a decrease of 41% compared to last year. The basic EPS** for 2023 was NT$3.56, which was a decrease from NT$6.03** based on the weighted average outstanding shares of last year.
“For the fourth quarter of 2023, the overall sales revenue of Energy Saving products amounted to NT$4,426 million, affected by the off-season, there was an 8% decrease compared to the previous quarter and a 3% decrease compared to the same period last year. The shipments for this quarter reached 7.51 million units, showing a 9% decrease from the previous quarter but a 3% increase YoY. For the fiscal year of 2023, the sales revenue amounted to NT$17,514 million, a decrease of 22.5% YoY, and the shipment was 30.47 million units, a decrease of 24% YoY, respectively. The decline mainly due to factors such as weak demand, slow inventory turnover, and inflation.” said Ms. Sarah Lin, President of Coretronic. Regarding the 1Q24 operation, Sarah stated that due to traditional off-season and the reduction in working days, the overall shipment of Energy Saving products in the first quarter is expected to decrease slightly. However, with the introduction of sports events and the addition of new large and medium-sized products and new customers, it is expected that the overall shipment volume of Energy Saving products in 2024 will increase by 10% to 20% or more. Looking forward to future business development, Sarah pointed out that in addition to factories in China, the company has also established factories in Vietnam, among the major backlight module suppliers in Taiwan, Coretronic is relatively leading in implements the Southern policy. Furthermore, the implementation of ESG principles, such as energy saving and green design technologies, has been faster than that of other competitors. Meanwhile, Coretronic not only expands its product business in existing application areas but also implements intelligent manufacturing to enhance efficiency and cost competitiveness. Additionally, it will continue to develop combination platforms such as touch modules, mechanical design, and electronic solutions according to the trends in the energy saving display market. With a flexible business model, it aims to provide customers with complete and diverse integrated customized display solutions. The Energy Saving products business will maintain a certain level of competitiveness based on factors such as rapid adaptability and economies of scale, with the goal of pursuing higher profits and value, and grow steadily.
“In the fourth quarter, sales revenue of Visual Solutions products reached NT$3,324 million, with a shipment volume exceeding 223K units. This marked a 12% and 16% decrease from the third quarter, respectively, and a 6% and 11% decrease compared to the same period last year. The decline was primarily attributed to weaker-than-expected economic conditions, resulting in sluggish brand marketing and demand." “For the fiscal year of 2023, the sales revenue totaled NT$13,564 million, with a shipment volume of 975K units. These figures reflect a 30% decrease in revenue and a 28% decrease in shipments compared to 2022. This decline can be attributed to several factors, including the higher base period of shipments for the new smart Pico projector products in 2022, the global economic downturn, as well as the impact of inflation on consumer demand.” said Ms. Sarah Lin. For the operational performance in 1Q24, Sarah estimates that the overall shipment volume of Visual Solutions products will experience a slight decrease compared to the previous quarter due to the influence of the off-season and holidays. Additionally, due to factors such as inventory clearance, stabilization of the supply chain, and the boost from sporting events, the market expects significant growth in home entertainment and smart projection products. Demand for commercial and educational models may remain steady due to the influence of political and economic situations. However, the engineering projection market is expected to gradually stabilize as a result of developments in the cultural and tourism industry and the deployment of large public space projections. Therefore, Sarah anticipates a substantial resurgence in demand for Visual Solutions products starting from the second quarter, with overall shipments expected to grow by over 20% in 2024. Looking forward to the future operation and development, Visual Solutions products will continue to focus on advancing Laser light source technology and patent portfolio while integrating advanced AI/smart technology to enhance connectivity between intelligent applications and various fields. Simultaneously, we will deepen our exploration of specific fields and automotive projection display applications to position ourselves for the next wave of growth momentum. For the continuously growing pico-projection market, we will offer various customized optical engine or final product services. Furthermore, Coretronic will continue to actively address the issue of climate change by incorporating environmental sustainability into its green projection products, and will continue to provide users with more captivating visual experiences. 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 of each quarter (391m shares in 4Q23, 3Q23 and 4Q22)
**Basic EPS was calculated based on the total weighted average outstanding share (391m shares in 2023 and 2022)
