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Issued by: Chang Wah Electromaterials Inc.
Issued on: March 12, 2024

Chang Wah Electromaterials Inc. (CWE, 8070.tw) convened a Board of Directors meeting on the 12th, where the dividend policy for the second half of 2023 was approved. The Company has proposed a cash dividend of NT$2 per share. With the dividend from the first half of 2023, the total cash dividend for the year will amount to NT$2.54 per share, surpassing the NT$2.53 per share distributed in 2022. This marks a historical high and reflects a consistent upward trend over the past 10 years, demonstrating management’s confidence in the Company’s future performance and its commitment to shareholders.

In addition, the Board of Directors approved the audited 2023 consolidated financial report. Consolidated revenue amounted to NT$16,490 million, the gross margin was 19%, and the net profit attributable to owners of the Corporation was NT$1,477 million. With a par value of NT$1 per share, earnings per share (EPS) after tax was NT$2.19, equivalent to a return of 2.19 times the capital.

Key resolutions are summarized as follows:

1. Dividend policy for the second half of 2023

The Board of Directors has resolved to distribute a cash dividend of NT$2 per share for the second half of 2023. This includes approximately NT$1.62 per share from the second-half earnings and about NT$0.38 per share from the capital surplus. With the cash dividend of NT$0.54 per share from the first-half earnings, the total cash dividend for 2023 will reach NT$2.54 per share, surpassing the NT$2.53 per share in 2022. When calculated based on a par value of NT$10 per share, the 2023 cash dividend sets a new historical high, marking a consistent upward trend over the past 10 years. The payout ratio of 116% is also the highest in the last 12 years. As CWE and its subsidiaries complete their mid- to long-term strategies, the Company’s operational performance reinforces a stable dividend policy. The management team strives to ensure that the annual cash dividend exceeds the previous year’s distribution.

CWE explained that while its profitability in 2023 fell short of 2022 levels, the dividend for 2023 will still surpass that of the previous year. This is primarily due to the Company’s stable cash flows, which is supported by profits from core operations, dividend income, and gains from the sale of non-core business holdings. After evaluating its cash position, the Company determines that it has ample liquidity to meet operational and investment needs. Consequently, it has decided to distribute cash dividends from capital surplus to reward long-term shareholders who have supported the Company, allowing them to receive dividends while reducing their tax burden.

2. 2023 consolidated financial report

Additionally, the Board of Directors has approved the audited 2023 consolidated financial statements. The total consolidated revenue for the year was NT$16,490 million, marking a 25% decrease compared to 2022. Operating profit was NT$1,680 million, reflecting a 51% decline year-on-year. Due to exchange rate fluctuations, profit before income tax for 2023 dropped by 40% compared to the previous year. Net profit attributable to owners of the Corporation was NT$1,477 million, a 32% decrease year-over-year. With a par value of NT$1 per share, EPS was NT$2.19, equivalent to a return of 2.19 times the capital.

For CWE's financial data, please refer to the table below or visit the official website at：https://www.cwei.com.tw/