SINBON Electronics : 2021 First Half-Year Reviewed Financial Report and EPS

SINBON's 1st half-year of audited consolidation sales revenue in 2021 is NT$12.382 billion which is an increase of 26.72% over previous year of NT$9.771 billion. The consolidation gross profit rate is 25.92% which is a decrease of 0.1% over previous year of 26.02%. The consolidation net profit is NT$1.536 billion which is a growth of 24.93% over previous year at NT$1.229 billion. The net profit after tax for the 1st half-year is NT$1.223 billion which is a growth of 18.14% than year 2020 of NT$1.035 billion. The EPS after tax is NT$5.25, which both net profit after tax and EPS after tax for the 1st half-year are the record highs in company history.

Upon quarterly performance of SINBON, the sales revenue for 2nd quarter in 2021 is N$6.391 billion which is a growth of 6.65% and 20.84% over previous quarter at NT$5.992 billion and over the same period in 2020 at NT$5.288 billion respectively. Consolidated gross profit rate is 25.79% and it decreased 0.27% and 0.49% over previous quarter at 26.06% and the same period of last year at 26.28%. The net profit after tax for 2nd quarter is NT$637 million and it is a growth of 8.72% and 8.51% over previous quarter at NT$586 million and the one in 2020 at NT$587 million. EPS after tax is $2.73. Both net profit after tax and the EPS after tax for a single quarter are the record highs since SINBON was established.

According to SINBON, the consolidated revenue in the 2nd quarter decreased by 0.27% compared with the 1st quarter, mainly due to the change of product structure. The proportion of consumer industries increased by 4.02% compared with the 1st quarter. The appreciation of both Taiwanese New Dollar and RMB, as well as the increase in raw material costs, have indirectly affected the gross profit margin. The consolidated net profit after tax increased by 8.72% over the 1st quarter and it is over the growth rate of sales revenue. This is mainly due to the growths in gross profit margin, non-operating revenue, and product-designing revenue. The consolidated sales revenue in the 2nd quarter increased by 20.84% ​​compared with the same period last year, and the consolidated net profit after tax only increased by 8.51% compared with the same period last year. The reasons were: (1) the gross profit margin of the wind energy industry decreased by 1.3% compared with the same period last year. The appreciation of New Taiwanese Dollar, RMB and raw materials, which increased the costs and it caused the gross profit margin to decrease by 0.49% compared with the same period last year. (2) The substantial increase in transportation costs, miscellaneous expenses, R&D costs, and engineering staffs resulted in an increase of 0.14% in the operating expense ratio. (3) As for the ratio of non-operating income, it decreased 39.12% compared with the same period last year. This is mainly due to the exchange loss caused by the appreciation of the New Taiwanese Dollar and RMB. The consolidated revenue in the 1st half year increased by 26.72% compared with the same period last year, and the after-tax net profit only increased by 18.14% compared with the same period last year. The reasons were: (1) Exchange losses caused by the appreciation of the New Taiwanese Dollar and RMB, resulting in non-operating profit decreased by 17.71% compared with the same period last year. (2) For non-100%-owned subsidiaries, due to their profits increased, and the amount of minority equity deducted increased by NTS63.44 thousand compared with the same period last year. SINBON's overall operating performance in the 2nd quarter and the 1st half of the year, despite the unfavorable operating environment such as the sharp increase in exchange rates, transportation costs, and raw material costs, it still delivered the company's record high performance since it was established.