CORETRONIC CORPORATION 2023/10/31
Coretronic Corporation Announces Third Quarter 2023 Results
Hsinchu, Taiwan - Coretronic Corporation (5371.TW) today announced its financial results for the third quarter of 2023. For the third quarter ended Sept. 30, 2023, Coretronic reported consolidated sales revenue of NT$10,400 million, which increased by 8% compared to the second quarter of 2023 but a 19% decrease compared to the same period last year. The decline was primarily influenced by factors such as inflation, which impacted the recovery of consumer products. Consolidated gross profit for the third quarter was 21.7%, showing a 0.8% increase from 20.9% in the previous quarter and a 0.9% increase from 20.8% in the same period last year. This increase was mainly attributed to the higher factory utilization rate driven by revenue growth. Operating income for the third quarter reached NT$473 million, reflecting an impressive increase of 144% compared to the second quarter but experiencing a decrease of 38.9% compared to the same period last year. Net income after tax in the third quarter amounted to NT$421 million, which was a 15.2% increase from the second quarter but a 43.6% decrease from the same period last year. Net income attributable to equity holders of the parent company was NT$467 million in the third quarter, representing a 13.3% increase from NT$412 million in the previous quarter but a 33% decrease from NT$697 million in the same period last year. The basic EPS* in the third quarter of 2023 was NT$1.2.
Due to the turbulent international political and economic situation, the global economy has been affected by various unfavorable factors, hindering the momentum of economic recovery. For the first three quarter of 2023, Coretronic reported consolidated sales revenue of NT$29,604 million, representing a 23% decrease compared to the NT$38,612 million in consolidated revenue for the same period in 2022. In the first three quarter of 2023, the consolidated gross margin improved to 19.8%, reflecting a 1% increase from 18.8% in the first three quarter of 2022. This improvement can be primarily attributed to the optimization of the product portfolio. The operating income was totaled NT$731 million, which represents a 59% decrease compared to the same period last year. The net income was reported at NT$980 million, marking a 53% decrease from the same period last year. The net income attributable to equity holders of the parent company was NT$1,132 million, a decrease of 43% YoY. The basic EPS* for the first three quarter of this year was NT$2.9, which is lower than the EPS* of NT$5.08 for the same period last year.
"For the third quarter of 2023, the overall sales revenue of Energy Saving Business Group amounted to NT$4,819 million, due to increased shipments of TV/PID models, reflecting a significant 17% growth compared to the previous quarter and a 10% decrease from the same period last year. The shipments for this quarter reached 8.24 million units, showing a 7% increase from the previous quarter but a 3% decrease on an annual basis. The sales revenue of Energy Saving products in the first three quarter of 2023 was about NT$13,088 million, which is a 27% decrease compared to the same period last year. The shipment quantity reached around 22.96 million units, marking a 30% annual decrease. This decline can be attributed primarily to issues with inventory clearance in IT-related products and sluggish demand in consumer products." said Ms. Sarah Lin, President of Coretronic. Regarding the 4Q23 operation, Sarah stated that due to a slight decline in TV/PID shipments and a decrease in demand for IT application products by a single-digit percentage compared to the previous quarter, it is expected that the overall shipment of Energy Saving products in the fourth quarter will decrease slightly compared to the previous quarter. Furthermore, due to factors such as weak demand, slow inventory clearance, and inflation, it is expected that the overall shipment quantity of Energy Saving products in 2023 will decline by about 20% compared to the previous year.
"The sales revenue of Visual Solutions products in the third quarter reached NT$3,774 million, and the shipment volume reached more than 267K units, experiencing a 13% and 8% increase from the second quarter, respectively, and a 37% and 35% decrease compared to the same period last year. For the first three quarter of 2023, the sales revenue totaled NT$10,240 million, with a shipment volume of 751K units. These figures reflect a 35% decrease in revenue and a 32% decrease in shipments compared to the same period in 2022. This decline can be attributed to the higher base period of shipments for the new smart Pico projector products in 2022, as well as the impact of inflation on consumer demand." said Ms. Sarah Lin. Sarah has further noted that due to economic conditions being weaker than expected, coupled with a slowdown in brand marketing and market demand, it is estimated that the overall shipments of Visual Solutions products in the fourth quarter will decrease by 10%. Additionally, due to the global economic downturn, high inflationary pressures, and tightened demand, it is expected that the shipment volume of Visual Solutions products in 2023 will decrease by 20% to 30% compared to the peak in 2022.
*Basic EPS was calculated based on the total weighted average outstanding share of each quarter (391m shares in 3Q23, 2Q23 and 3Q22)
Due to the turbulent international political and economic situation, the global economy has been affected by various unfavorable factors, hindering the momentum of economic recovery. For the first three quarter of 2023, Coretronic reported consolidated sales revenue of NT$29,604 million, representing a 23% decrease compared to the NT$38,612 million in consolidated revenue for the same period in 2022. In the first three quarter of 2023, the consolidated gross margin improved to 19.8%, reflecting a 1% increase from 18.8% in the first three quarter of 2022. This improvement can be primarily attributed to the optimization of the product portfolio. The operating income was totaled NT$731 million, which represents a 59% decrease compared to the same period last year. The net income was reported at NT$980 million, marking a 53% decrease from the same period last year. The net income attributable to equity holders of the parent company was NT$1,132 million, a decrease of 43% YoY. The basic EPS* for the first three quarter of this year was NT$2.9, which is lower than the EPS* of NT$5.08 for the same period last year.
"For the third quarter of 2023, the overall sales revenue of Energy Saving Business Group amounted to NT$4,819 million, due to increased shipments of TV/PID models, reflecting a significant 17% growth compared to the previous quarter and a 10% decrease from the same period last year. The shipments for this quarter reached 8.24 million units, showing a 7% increase from the previous quarter but a 3% decrease on an annual basis. The sales revenue of Energy Saving products in the first three quarter of 2023 was about NT$13,088 million, which is a 27% decrease compared to the same period last year. The shipment quantity reached around 22.96 million units, marking a 30% annual decrease. This decline can be attributed primarily to issues with inventory clearance in IT-related products and sluggish demand in consumer products." said Ms. Sarah Lin, President of Coretronic. Regarding the 4Q23 operation, Sarah stated that due to a slight decline in TV/PID shipments and a decrease in demand for IT application products by a single-digit percentage compared to the previous quarter, it is expected that the overall shipment of Energy Saving products in the fourth quarter will decrease slightly compared to the previous quarter. Furthermore, due to factors such as weak demand, slow inventory clearance, and inflation, it is expected that the overall shipment quantity of Energy Saving products in 2023 will decline by about 20% compared to the previous year.
"The sales revenue of Visual Solutions products in the third quarter reached NT$3,774 million, and the shipment volume reached more than 267K units, experiencing a 13% and 8% increase from the second quarter, respectively, and a 37% and 35% decrease compared to the same period last year. For the first three quarter of 2023, the sales revenue totaled NT$10,240 million, with a shipment volume of 751K units. These figures reflect a 35% decrease in revenue and a 32% decrease in shipments compared to the same period in 2022. This decline can be attributed to the higher base period of shipments for the new smart Pico projector products in 2022, as well as the impact of inflation on consumer demand." said Ms. Sarah Lin. Sarah has further noted that due to economic conditions being weaker than expected, coupled with a slowdown in brand marketing and market demand, it is estimated that the overall shipments of Visual Solutions products in the fourth quarter will decrease by 10%. Additionally, due to the global economic downturn, high inflationary pressures, and tightened demand, it is expected that the shipment volume of Visual Solutions products in 2023 will decrease by 20% to 30% compared to the peak in 2022.
*Basic EPS was calculated based on the total weighted average outstanding share of each quarter (391m shares in 3Q23, 2Q23 and 3Q22)
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Coretronic Corporation published this content on 31 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 31 October 2023 06:02:48 UTC.
