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Issued by: Chang Wah Electromaterials Inc.
Issued on: November 7, 2023

Chang Wah Electromaterials Inc. (Chang Wah*, 8070.tw) held a board meeting on November 7 and approved several key agenda items, including a cash dividend of NT$0.54 per share for the first half of 2023 with December 29, 2023 being the record date and the reviewed consolidated financial report for the nine months ended September 30, 2023. In the third quarter, consolidated revenue amounted to NT$3,975 million, with a gross margin of 18% and net profit attributable to owners of the Corporation of NT$555 million. Earnings per share equaled NT$0.82.

Major resolutions were summarized as follows:

1. Earnings distribution for the first half of 2023

The board approved a cash dividend of NT$0.54 per share for the first half of 2023 and set December 29, 2023 as the record date and December 21, 2023 as the ex-dividend date. The shareholders’ register will be closed from December 25, 2023 to December 29, 2023 for registration transfer, and the dividend will be paid on January 19, 2024. The proposal was approved by the board of directors and would be reported in the 2024 annual shareholders’ meeting for acceptance.

2. Proposal concerning share buyback for employee compensation

The board of directors resolved to implement a share buyback program where 2,000 shares, representing 0.29% of the Company's outstanding shares, were scheduled to be repurchased for a price between NT$21.7 and NT$46 from November 8, 2023 to January 7, 2024. Shares repurchased would be allocated to employees in order to boost morale and improve business performance.

3. Consolidated financial report for the nine months ended September 30, 2023

Due to weak market demand, inventory adjustments continued throughout the semiconductor supply chain. With a weak peak season, the consolidated revenue amounted to NT$3,975 million for the third quarter of 2023, down 5% from last quarter. Gross margin remained flat, while profit before income tax and net profit attributable to owners of the Corporation fell 6% on a quarter-over-quarter basis. On a year-over-year basis, consolidated revenue of the quarter decreased by 28% while gross margin, profit before income tax and net profit attributable to owners of the Corporation went down by 6%, 40% and 30%, respectively. 

For the first three quarters of 2023, Chang Wah’s consolidated revenue amounted to NT$12,320 million, a year-over-year decrease of 27%. Gross margin was 18%, down 5% from last year. Profit before income tax dropped 39% to NT$2,376 million, while net profit attributable to owners of the Corporation equaled NT$1,360 million, a 29% decrease compared to the same period last year. Earnings per share of NT$2.02 with a par value of $1 per share was equivalent to a profit of 2 times the share capital.

4. Solar power system contract between two subsidiaries

The board also approved the signing of a construction contract for solar power systems between two subsidiaries, Chang Wah Energy Technology Co., Ltd. and Chang Wah Technology Co., Ltd. (CWTC). Chang Wah Energy Technology is a 100%-owned subsidiary of Chang Wah established in 2017, specializing in solar power generation. As for CWTC, it has been committed to improving the efficiency of resource use and the applications of energy saving and carbon reduction measures. CWTC entered the construction contract with Chang Wah Energy Technology for the installation of solar power systems on the roof of its new plant.

For financial results of Chang Wah, please refer to the table below or access the corporate website at https://www.cwei.com.tw/