2025/02/18
Coretronic Corporation Announces Fourth Quarter 2024 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the fourth quarter of 2024. For the fourth quarter ended Dec. 31, 2024, Coretronic reported consolidated sales revenue of NT$9,887 million, reflecting a 7.5% decline from the third quarter due to off-season impact, while remaining flat compared to the same period last year. The consolidated gross profit margin for the fourth quarter was 19%, up from 16.6% in the previous quarter due to favorable exchange rates and product mix. However, it declined by 1.2% compared to 20.2% in the same period last year, impacted by changes in product mix. Operating profit for the fourth quarters was NT$69 million, down 36% from the third quarter and 66% lower than the same period last year. Net income after tax in the fourth quarter amounted to NT$231 million, representing a 17% QoQ increase and a 4% YoY growth. Net income attributable to equity holders of the parent company was NT$193 million in the fourth quarter, down 5% from NT$203 million in the previous quarter and 26% from NT$260 million in the same period last year. The basic EPS for the fourth quarter of 2024 was NT$0.49.
Due to the continued turbulence in the international political and economic situation, the momentum of global economic recovery remains sluggish. In addition, inflation, rising interest rates, and other factors continue to hinder the recovery of consumer products. For the fiscal year 2024, Coretronic reported consolidated sales revenue of NT$39,669 million, a 0.4% increase from NT$39,492 million in 2023. The consolidated gross margin was 17.8%, down 2.1% from 19.9% in 2023, mainly due to the unfavorable changes in the product mix. The operating income for 2024 was NT$188 million, an 80% decrease compared to 2023. Net income totaled NT$658 million, down 45% from NT$1,202 million last year. Net income attributable to equity holders of the parent company was NT$820 million, marking a 41% decline from the previous year. The basic EPS for 2024 was NT$2.1, down from NT$3.56 in 2023, based on the weighted average outstanding shares.
In the fourth quarter of 2024, the overall sales revenue for Energy Saving products was NT$4,859 million, down 10% QoQ but up 10% compared to the same previous last year. The shipments for this quarter totaled 7.22 million units, decreasing 5% QoQ and 4% YoY. For the full year of 2024, sales revenue reached NT$18,837 million, an 8% increase from 2023, driven by higher shipments of TV/Table and automotive products. Total shipment volume for the year was 29.9 million units, a slight decrease of 2% YoY. Regarding the 1Q25 operation, Ms. Sarah Lin, President of Coretronic stated that due to the traditional off-season and fewer working days, the overall shipment volume of Energy Saving products in the first quarter is expected to remain flat compared to the fourth quarter. Sarah also explained that in 2025, overall operations are expected to benefit from economic recovery and the impact of the tariff trade war, which will stabilize demand for TVs, PIDs, and NBs, as well as drive early inventory stocking. Additionally, new Monitor LCM/complete Monitor unites businesses have begun mass production at the Vietnam plant, with production volumes gradually increasing. More new customers and products are expected to be introduced into mass production at the Vietnam facility. Meanwhile, shipments of OLED NBs/Tablets and ODM automotive products are anticipated to grow steadily in line with market trends. Consequently, the overall shipment volume of Energy Saving products is expected to grow by 10% to 20% in 2025. Looking ahead to future business development, Sarah stated that the Energy Saving Product Business Group will continue the strategic direction set in 2024 while proactively expanding new business opportunities, such as the anticipated growth in AI NB and the replacement cycle, as well as growth prospects for automotive smart integrated display systems. At the same time, the group will remain committed to ESG principles by actively implementing more green design technologies, including low-power consumption and front-light solutions, to better meet customer needs and achieve sustainable growth.
In the fourth quarter, sales revenue of Visual Solutions products was NT$2,588 million, and shipment volume reached about 172K units, representing decreases 25% and 26% QoQ, respectively. Compared to the same period last year, revenue and shipment volume decreased by 22% and 23%, respectively. For the full year of 2024, the sales revenue totaled NT$12,713 million, with a shipment volume of approximately 862K units, down 6% and 12% YoY, respectively. This decline was mainly due to heightened international political and economic instability, leading to a sluggish global economy and reduced spending by businesses and consumers. Regarding the outlook for 1Q25, Sarah stated that due to the traditional off-season, the overall shipment volume of Visual Solutions products is expected to decline by a single-digit percentage QoQ. Additionally, uncertainties in demand are anticipated for the next one to two quarters due to factors such as war, inflation, U.S. tariffs, exchange rate fluctuations, and conservative GDP growth expectations across regions. However, growth momentum is expected to recover in the second half of the year. Consequently, the overall shipment volume of Visual Solutions products is projected to grow by 10% to 20% in 2025. Looking ahead to future business development, Visual Solutions products will focus on market demand and solving pain point, and continue to leverage and integrate core technologies, including Optics, Mechanics, Electronics, Thermal Management, Cloud Service, and materials, to enhance large-screen splicing, interactive touch, digital signage, and overall visual solutions for large public displays and smart connectivity. This strategy aims to expand customer bases and applications across various fields. Aligned with global sustainability trends and the company's energy-saving and carbon-reduction policies, ESG principles will be deeply embedded at both organizational and product levels. These principles will be integrated into the core strategy for Visual Solutions products and implemented throughout the supply chain, manufacturing processes, and the design of green projectors. To better meet user needs and preferences, advanced AI/smart technologies will be utilized to enhance seamless connections between smart applications and user environments, continually delivering exceptional visual experiences. Overall, the business strategy will focus on pursuing profitability and achieving sustainable growth.
Due to the continued turbulence in the international political and economic situation, the momentum of global economic recovery remains sluggish. In addition, inflation, rising interest rates, and other factors continue to hinder the recovery of consumer products. For the fiscal year 2024, Coretronic reported consolidated sales revenue of NT$39,669 million, a 0.4% increase from NT$39,492 million in 2023. The consolidated gross margin was 17.8%, down 2.1% from 19.9% in 2023, mainly due to the unfavorable changes in the product mix. The operating income for 2024 was NT$188 million, an 80% decrease compared to 2023. Net income totaled NT$658 million, down 45% from NT$1,202 million last year. Net income attributable to equity holders of the parent company was NT$820 million, marking a 41% decline from the previous year. The basic EPS for 2024 was NT$2.1, down from NT$3.56 in 2023, based on the weighted average outstanding shares.
In the fourth quarter of 2024, the overall sales revenue for Energy Saving products was NT$4,859 million, down 10% QoQ but up 10% compared to the same previous last year. The shipments for this quarter totaled 7.22 million units, decreasing 5% QoQ and 4% YoY. For the full year of 2024, sales revenue reached NT$18,837 million, an 8% increase from 2023, driven by higher shipments of TV/Table and automotive products. Total shipment volume for the year was 29.9 million units, a slight decrease of 2% YoY. Regarding the 1Q25 operation, Ms. Sarah Lin, President of Coretronic stated that due to the traditional off-season and fewer working days, the overall shipment volume of Energy Saving products in the first quarter is expected to remain flat compared to the fourth quarter. Sarah also explained that in 2025, overall operations are expected to benefit from economic recovery and the impact of the tariff trade war, which will stabilize demand for TVs, PIDs, and NBs, as well as drive early inventory stocking. Additionally, new Monitor LCM/complete Monitor unites businesses have begun mass production at the Vietnam plant, with production volumes gradually increasing. More new customers and products are expected to be introduced into mass production at the Vietnam facility. Meanwhile, shipments of OLED NBs/Tablets and ODM automotive products are anticipated to grow steadily in line with market trends. Consequently, the overall shipment volume of Energy Saving products is expected to grow by 10% to 20% in 2025. Looking ahead to future business development, Sarah stated that the Energy Saving Product Business Group will continue the strategic direction set in 2024 while proactively expanding new business opportunities, such as the anticipated growth in AI NB and the replacement cycle, as well as growth prospects for automotive smart integrated display systems. At the same time, the group will remain committed to ESG principles by actively implementing more green design technologies, including low-power consumption and front-light solutions, to better meet customer needs and achieve sustainable growth.
In the fourth quarter, sales revenue of Visual Solutions products was NT$2,588 million, and shipment volume reached about 172K units, representing decreases 25% and 26% QoQ, respectively. Compared to the same period last year, revenue and shipment volume decreased by 22% and 23%, respectively. For the full year of 2024, the sales revenue totaled NT$12,713 million, with a shipment volume of approximately 862K units, down 6% and 12% YoY, respectively. This decline was mainly due to heightened international political and economic instability, leading to a sluggish global economy and reduced spending by businesses and consumers. Regarding the outlook for 1Q25, Sarah stated that due to the traditional off-season, the overall shipment volume of Visual Solutions products is expected to decline by a single-digit percentage QoQ. Additionally, uncertainties in demand are anticipated for the next one to two quarters due to factors such as war, inflation, U.S. tariffs, exchange rate fluctuations, and conservative GDP growth expectations across regions. However, growth momentum is expected to recover in the second half of the year. Consequently, the overall shipment volume of Visual Solutions products is projected to grow by 10% to 20% in 2025. Looking ahead to future business development, Visual Solutions products will focus on market demand and solving pain point, and continue to leverage and integrate core technologies, including Optics, Mechanics, Electronics, Thermal Management, Cloud Service, and materials, to enhance large-screen splicing, interactive touch, digital signage, and overall visual solutions for large public displays and smart connectivity. This strategy aims to expand customer bases and applications across various fields. Aligned with global sustainability trends and the company's energy-saving and carbon-reduction policies, ESG principles will be deeply embedded at both organizational and product levels. These principles will be integrated into the core strategy for Visual Solutions products and implemented throughout the supply chain, manufacturing processes, and the design of green projectors. To better meet user needs and preferences, advanced AI/smart technologies will be utilized to enhance seamless connections between smart applications and user environments, continually delivering exceptional visual experiences. Overall, the business strategy will focus on pursuing profitability and achieving sustainable growth.
