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Chang Wah Board of Directors Meeting Resolutions
Issued by: Chang Wah Electromaterials Inc.
Issued on: May 5, 2023
Chang Wah Electromaterials Inc. (Chang Wah*, 8070.tw) held a board meeting on May 5 and approved the reviewed consolidated financial report for the three months ended March 31, 2023. In the first quarter, consolidated revenue amounted to NT$4,166 million, with a gross margin of 19%, net profit attributable to owners of the Corporation of NT$213 million and earnings per share of NT$0.31.
On a quarter-over-quarter basis, Chang Wah’s consolidated revenue of the first quarter dropped 14% as a result of weakening demand and reduced orders in the semiconductor market, while gross margin decreased by 4%. Profit before income tax and net profit attributable to owners of the Corporation fell 22% and 10%, respectively. On a year-over-year basis, consolidated revenue plunged 26% while gross margin dropped 4%. Profit before income tax and net profit attributable to owners of the Corporation decreased by 59% and 64%, respectively.
Despite the continuous inventory digestion in the semiconductor industry chain, we see the emergence of rush orders in areas such as network communication and TV. This, coupled with sustained growth in automotive semiconductor orders, is expected to bring the industry out of its downturn from the second quarter onward. As semiconductor industry hits bottom in the first half of the year, recovery is expected in the second half of 2023.
For financial results of Chang Wah, please refer to the table below or access the corporate website at https://www.cwei.com.tw/
Unit：NT$ million
| Period | 1Q23 | 4Q22 | 1Q22 | QoQ | YoY |
|---|---|---|---|---|---|
| Consolidated revenue | 4,166 | 4,870 | 5,655 | -14% | -26% |
| Gross profit | 802 | 1,099 | 1,313 | -27% | -39% |
| Gross margin | 19% | 23% | 23% | Down 4% | Down 4% |
| Profit from operations | 461 | 705 | 918 | -35% | -50% |
| Operating margin | 11% | 15% | 16% | Down 4% | Down 5% |
| Profit before income tax | 475 | 610 | 1,154 | -22% | -59% |
|
Net profit attributable to owners of the Corporation |
213 | 237 | 592 | -10% | -64% |
| Earnings per share (NT$) | 0.31 | 0.35 | 0.86 | -11% | -64% |
Note: As of March 31, 2023, the number of shares issued and the weighted average number of shares outstanding were 689,419 thousand and 677,091 thousand, respectively.