< August 4, 2020, Miaoli, Taiwan, R.O.C.> Innolux Corporation (3481.TW) announced its 2Q 2020 consolidated revenues of NT$ 66.9 billion, operating loss of NT$ 3.4billion, net loss of NT$ 4.8 billion, and a basic EPS of NT$ -0.49, depreciation & amortization of NT$ 8.9 billion and capital expenditure of NT$ 4.5 billion.
In 2Q20, the Company shipped 7.41 million square meters of total panel, a decrease of 25.5% quarter-on-quarter. Blended area ASP for TFT-LCD panels averaged US$ 287 per square meter. Small and medium-sized panel revenues were NT$ 16.1 billion in 2Q20, an increase of 25.5% quarter-on-quarter. The Company shipped 772.0 thousand square meters of small and medium-sized panel during the second quarter of 2020, an increase of 32.4% quarter-on-quarter.
In 2Q20, in terms of product application, Mobile & CP, Mobile PC, Desktop, TV panels accounted for 33%, 23%, 13% and 31% of net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch-and -above panels accounted for 25%, 28%, 15%, 6%, and 26% of net sales, respectively.
Looking back to 2Q20, the demand of panel turned strong since Europe and US markets gradually recovered from lockdown and stay-at-home economy continued to grow. The QoQ revenue showed a leap of 32.7%. Meanwhile, due to panel price rebounded and cost control benefit, the gross margin turned positive to 2.8% and EBITDA margin achieved to 8.2% in 2Q20. The financial status and operation remained healthy.
Moving into 3Q20, as the economic stimulus taken by major countries and the need of stock up for seasonal promotions, the demand for TV panels is expected to increase in the third quarter. The demand of IT panel is expected to remain strong due to the work-from-home and distance-learning trends. The small and medium-sized panel demand is expect to be driven by the resumption of Europe and US automotive factories and 5G mobile phone launch in the second half of the year.
The outbreak of coronavirus has held back the global economy. The Company will remain financial discipline with discreet management in cash flow and capital expenditure, and will continue to optimize its technology and cost management to get ready for the post-pandemic opportunities.
Based on our current business outlook, the Company expects its 3Q20 guidance as follows:
◆Large panel
◆Shipments to be up by high single digit % QoQ
◆Blended ASP to be up by mid single digit % QoQ
◆Small & Medium panel
◆Shipments to be down by single digit % QoQ

Table 1: Statements of Comprehensive Income

Units: NTD million except per share data

　 2Q 2020 1Q 2020 QoQ% 2Q 2019
Net Sales 66,883 100.0% 50,392 100.0%32.7% 63,176 100.0%
Cost of Goods Sold 65,027 97.2% 51,286 101.8%26.8% 60,832 96.3%
Gross Profit 1,856 2.8% (894) -1.8%- 2,344 3.7%
Operating Expenses 5,217 7.8% 5,320 10.6%-1.9% 5,686 9.0%
Operating Profit(Loss) (3,361) -5.0% (6,215) -12.3%-45.9% (3,342) -5.3%
Net Non-operating Income(Exp.) (910) -1.4% 1,254 2.5%- 576 0.9%
Profit(Loss) before Tax (4,271) -6.4% (4,960) -9.8%-13.9% (2,766) -4.4%
Net Profit(Loss) (4,777) -7.1% (5,264) -10.4%-9.2% (2,970) -4.7%
Net Profit Attributable to Owners of Company (4,781) -7.1% (5,269) -10.5%-9.3% (2,970) -4.7%
Basic EPS (1)(2) (0.49) (0.55) 　　 (0.30)
EBITDA(3) 5,491 8.2% 2,571 5.1%113.5% 5,491 8.7%

Notes:
  1. Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
  2. Capital Stock (common): NT$97.1 billion as of June 30, 2020
  3. EBITDA = Operation Income + Depreciation & Amortization
  4. All figures are prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in TIFRS.

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Innolux Corporation published this content on 04 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2020 08:12:15 UTC