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Chang Wah Electromaterials (Par Value NT$1 per Share) Announces Preliminary Financial Results for the First Quarter of 2025
Issued by: Chang Wah Electromaterials Inc.
Issued on: April 28, 2025
Chang Wah Electromaterials Inc. (Chang Wah*, 8070.TW) announced its preliminary operating results for the first quarter of 2025 on April 28. The Company reported unaudited consolidated revenue of NT$4,504 million for the quarter. Gross margin and operating margin were 18.9% and 11%, respectively. Net profit attributable to owners of the Corporation was NT$332 million, with earnings per share (EPS) of NT$0.47, based on a par value of NT$1 per share.
Compared to the previous quarter, consolidated revenue increased by 0.3%, reflecting solid performance during the traditionally slower season. However, gross profit declined by 4% quarter-over-quarter, with gross margin decreasing by 0.9 percentage points to 18.9%, mainly due to higher raw material costs at subsidiaries. Profit from operations rose by 5% quarter-over-quarter, supported by the reversal of bad debt losses recognized in the previous quarter, lifting the operating margin by 0.5 percentage points to 11%. On the non-operating side, gains on equity-method investments, foreign exchange gains and interest income all declined compared to the previous quarter, resulting in a 1% quarter-over-quarter decrease in net profit attributable to owners of the Corporation to NT$332 million. EPS for the quarter was NT$0.47, slightly lower than NT$0.48 in the previous quarter.
Compared to the same period last year, as inventory adjustments neared completion and customer demand recovered, consolidated revenue for the first quarter grew by 12% year-over-year. Gross margin and operating margin improved by 0.8 and 1.4 percentage points, respectively. Nevertheless, a decrease in non-operating income limited the year-over-year growth in net profit attributable to owners of the Corporation to 4%. In addition, the conversion of convertible bonds led to an increase in the weighted average number of shares outstanding, resulting in a slight decline in EPS compared to NT$0.48 for the same period last year.
Unit: NT$ Million
| Item/Period | Q1 2025 | Q4 2024 | Q1 2024 | QoQ | YoY |
|---|---|---|---|---|---|
| Consolidated revenue | 4,504 | 4,492 | 4,019 | 0.3% | 12% |
| Gross profit | 850 | 890 | 727 | -4% | 17% |
| Profit from operations | 495 | 471 | 387 | 5% | 28% |
| Profit before income tax | 675 | 728 | 685 | -7% | -1% |
|
Net profit attributable to owners of the Corporation |
332 | 336 | 320 | -1% | 4% |
| After-tax EPS (NT$) | 0.47 | 0.48 | 0.48 | -2% | -2% |
| Gross margin | 18.9% | 19.8% | 18.1% | -0.9 ppt | +0.8 ppt |
| Operating margin | 11% | 10.5% | 9.6% | +0.5 ppt | +1.4 ppt |
| Pre-tax profit margin | 15% | 16.2% | 17% | -1.2 ppt | -2 ppt |
| Net profit margin | 12.2% | 13.2% | 13.6% | -1 ppt | -1.4 ppt |
Note 1: After-tax EPS is calculated based on a par value of NT$1 per share.
Note 2: The financial figures for the first quarter of 2025 are preliminary and may be adjusted following the auditor's review.
【About Chang Wah Electromaterials (CWE)】
Chang Wah* (8070.TW) specializes in the sales and technical services of semiconductor packaging materials and advanced packaging equipment, including lead frames, EME, silver paste, and IC substrates. The Company is also dedicated to strengthening its presence in the packaging materials market for key components of electric vehicles and automotive electronics. Furthermore, it partners with manufacturers to advance the IC substrate market for Micro LED and Mini LED packaging. Looking ahead, CWE will drive operational growth through its three primary business focuses: 3Cs (computer, communication, and consumer electronics), automotive, and industrial applications. Additionally, through strategic investments, the Company has expanded into the semiconductor front-end process materials, enabling CWE Group to build a comprehensive semiconductor material ecosystem and strengthen its influence within the industry. For more information, please visit the CWE official website: https://www.cwei.com.tw/