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Issued by: Chang Wah Electromaterials Inc.
Issued on: July 30, 2024

Chang Wah Electromaterials (CWE, 8070.tw) announced its second-quarter operating results on the 30th, reporting preliminary consolidated revenue of NT$4,255 million, marking a 6% quarter-over-quarter increase. Both gross margin and operating margin improved, reaching 20.7% and 11.4%, respectively. Net profit attributable to owners of the Corporation surged 55% from the previous quarter to NT$497 million. Earnings per share (EPS), calculated based on a par value of NT$1 per share, stood at NT$0.74, up from NT$0.48 in the first quarter, effectively generating 0.74 times the Company's capital in a single quarter.

To address the rising demand for EME, Sumitomo Bakelite Taiwan, the joint venture between CWE and Japan's Sumitomo Bakelite, has begun equipment installation at its newly constructed facility in Kaohsiung's Dafa Industrial Park, following its completion in March. Sample certification is scheduled for the third quarter, with revenue contributions expected to commence in 2025.

In the semiconductor materials and equipment distribution sector, CWE has expanded its product offerings from 12-inch wafer-level packaging to panel-level packaging, with shipments scheduled to begin in the second half of 2024. The Company also represents wafer-level molding equipment, a key component in advanced packaging processes. Driven by the growing demand for high-performance computing, AI, and other applications, the need for advanced packaging technologies such as InFO, CoWoS, and HBM has surged. Consequently, CWE has seen strong order activity for its wafer-level molding equipment, with order visibility extending through 2026.

CWE has teamed up with its investee company, JMC Electronics Co., Ltd., to jointly develop a new packaging substrate utilizing the roll-type substrate materials it distributes. This innovative substrate, designed for emerging applications such as Micro LED, has already been introduced to customers, with mass production and shipments scheduled to commence in the third quarter.

CWE is committed to sharing its operational success with shareholders, following a policy of distributing 80% of after-tax profits as dividends. 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.