Innolux : Reports First Quarter 2021 Financial Results

< May 11, 2021, Miaoli, Taiwan, R.O.C.> Innolux Corporation (3481.TW) announced its 1Q 2021 consolidated revenues of NT$ 83.8 billion, operating profit of NT$ 14.9 billion, net profit of NT$ 11.6 billion, and a basic EPS of NT$ 1.15, depreciation & amortization of NT$ 9.1 billion and capital expenditure of NT$ 3.5 billion.
In 1Q21, the Company shipped 7.09 million square meters of total panel, a decrease of 4.7% quarter-on-quarter. Blended area ASP for TFT-LCD panels averaged US$ 413 per square meter. Small and medium-sized panel revenues were NT$ 17.0 billion in 1Q21, a decrease of 2.9% quarter-on-quarter. The Company shipped 788.3 thousand square meters of small and medium-sized panel during the first quarter of 2021, a decrease of 3.0% quarter-on-quarter.
In 1Q21, in terms of product application, Mobile & CP, Mobile PC, Desktop, and TV panels accounted for 26%, 27%, 10% and 37% 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 21%, 31%, 12%, 8%, and 29% of net sales, respectively.
Looking back to 1Q21, due to the continued supply tightness and the high end market demands, the increase in panel prices has resulted in significant growth in company's profitability. From which, the operating net profit increased by 48.0% to NT$ 14.9 billion compared with that of 4Q20. Non-operating loss was NT$ 2.3 billion, of which the recognized valuation loss in European Convertible Bond (ECB) was accounted for NT$2.1 billion. The net profit after tax increased by 14.1% from the previous quarter to NT$11.6 billion.
Looking forward to 2Q21, the upstream supply chain still remains short and the zero-touch life style has become prevalent in the post-pandemic era. In the meantime, the panel production capacity still remains tight due to the demand for educational products and the continuous improvement of electronic product specifications. Therefore, the panel price hike is expected to sustain in 2Q21. The Company will keep promoting value-added and differentiated products in display and non-display application fields, developing leading technologies, and improving its competitive advantages. Together with its vision, 'Transformation: Business Process Reengineering and Value Creation', the Company will continue to focus on smart manufacturing technique and digital transformation to strengthen its supply chain management capabilities, optimizing production capacity and maximizing shareholder value.
Based on our current business outlook, the Company expects its 2Q21 guidance as follows:
◆Large panel
◆Shipments to be flat % QoQ
◆Blended ASP to be up mid-teens % QoQ

◆Small & Medium panel
◆Shipments to be down low single digit % QoQ

Table 1: Statements of Comprehensive Income

Units: NTD million except per share data

	1Q 2021		4Q 2020		QoQ%	1Q 2020
Net Sales	83,839	100.0%	78,068	100.0%	7.4%	50,392	100.0%
Cost of Goods Sold	62,212	74.2%	62,121	79.6%	0.1%	51,286	101.8%
Gross Profit	21,627	25.8%	15,946	20.4%	35.6%	(894)	-1.8%
Operating Expenses	6,746	8.0%	5,891	7.5%	14.5%	5,320	10.6%
Operating Profit(Loss)	14,881	17.7%	10,055	12.9%	48.0%	(6,215)	-12.3%
Net Non-operating Income(Exp.)	(2,283)	-2.7%	133	0.2%	-	1,254	2.5%
Profit(Loss) before Tax	12,598	15.0%	10,189	13.1%	23.6%	(4,960)	-9.8%
Net Profit(Loss)	11,567	13.8%	10,141	13.0%	14.1%	(5,264)	-10.4%
Net Profit Attributable to Owners of Company	11,571	13.8%	10,143	13.0%	14.1%	(5,269)	-10.5%
Basic EPS (1)(2)	1.15		1.04			(0.55)
EBITDA(3)	23,950	28.6%	19,040	24.4%	25.8%	2,571	5.1%

Notes:
1.Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
2.Common Capital Stock (including bond conversion rights): NT$102.5 billion as of March 31, 2021
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.