Financial News


Coretronic Corporation Announces First Quarter 2024 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the first quarter of 2024. For the first quarter ended Mar. 31, 2024, Coretronic reported consolidated sales revenue of NT$9,120 million, which decreased by 7.8% compared to the fourth quarter of 2023 and a 4.7% decrease compared to the same period last year. The main factors are primarily influenced by traditional off-peak seasons and reduced working days. Consolidated gross profit for the first quarter was 17.6%. This represents a decrease of 2.6% from the previous quarter's 20.2% due to decreased capacity utilization and changes in product mix. Compared to the same period last year, the margin increased by 0.9% due to favorable exchange rates and decreased labor/manufacturing costs. Operating loss for the first quarter was NT$28 million. This marked a decline of 114% compared to the fourth quarter and a decline of 144% compared to the same period last year. Net loss after tax in the first quarter amounted to NT$14 million, representing a decrease of 106% and 107% compared to the fourth quarter and the same period last year, respectively. This was mainly due to the provision for losses from subsidiary fire accident. Net income attributable to equity holders of the parent company was NT$143 million in the first quarter, representing a 45% decrease from NT$260 million in the previous quarter and a 43% decrease from NT$253 million in the same period last year. The basic EPS* in the first quarter of 2024 was NT$0.37. 

“For the first quarter of 2024, the overall sales revenue of Energy Saving products amounted to NT$4,128 million, affected by the off-season, there was a 7% decrease compared to the previous quarter and 1% decrease compared to the same period last year. The shipments for this quarter reached 7.59 million units, showing a 1% increase from the previous quarter and an 8.5% increase YoY.” said Ms. Sarah Lin, President of Coretronic. Regarding the 2Q24 operation, Sarah stated that NB models are expected to gradually regain growth momentum, with the MP of new TV models in May. However, the impact of panel price increases on market demand needs to be observed. Therefore, it is estimated that overall shipments of Energy Saving products will experience a slight increase in the second quarter compared to the first quarter. Looking forward to future business development, Sarah pointed out that the TV and Monitor LCM business at the Vietnam factory will gradually ramp up production. With the anticipated boost from AI PC and Windows 11 driving a replacement wave in the second half of the year for NB models, along with new orders for OLED tablets, the performance of each major product line in the second half of the year is expected to surpass that of the first half. The overall shipment volume of Energy Saving products in 2024 is expected to maintain a growth rate of 10% to 20% or more. Sarah further explained the future strategy, stating that Coretronic will continue to develop integrated platforms such as touch modules, mechanical designs, and electronic solutions according to the trends in the energy saving display market. With a flexible business model, aims to provide customers with comprehensive and diverse integrated customized display solutions.

“In the first quarter, sales revenue of Visual Solutions products reached NT$3,353 million, marking a 1% increase compared to the previous quarter and a 7% growth compared to the same period last year. However, the shipment volume stood at around 224K units, which is equivalent to the figure in the fourth quarter of last year but declined by 5% compared to the same period last year.” said Ms. Sarah Lin. For the operational performance in 2Q24, Sarah mentioned that due to inflation, subdued economic activity, and ongoing conflicts in Europe, customers have relatively conservative sales expectations. Therefore, it is expected that the overall shipment volume of Visual Solutions products will experience a slight growth in the second quarter. However, with the gradual production of new platforms and new products, coupled with comprehensive growth in shipments across various application product lines in the second half of the year, the overall shipment volume for 2024 is still expected to maintain a growth rate of over 20%. Looking forward to the future operation and development, Visual Solutions products will integrate advanced AI/intelligent technologies to enhance the close connection between intelligent applications and various fields. Furthermore, there will be a focus on deepening and exploring opportunities in specific fields and automotive projection display applications to lay out the next wave of growth momentum. For the continuously growing pico-projection market, we will offer various customized optical engine or final product services. This year, a new world's smallest single-color AR standard optical machine will be developed to expand customer application areas. Sarah expressed that Visual Solutions products will continue to create a more amazing imaging life experience for users with innovative thinking. 

*Basic EPS was calculated based on the total weighted average outstanding share of each quarter (391m shares in 1Q24, 4Q23 and 1Q23)