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Chang Wah Board of Directors Meeting Resolutions
Issued by: Chang Wah Electromaterials Inc.
Issued on: March 16, 2023
Chang Wah Electromaterials Inc. (Chang Wah*, 8070.tw) held a board meeting on March 16 and approved several key agenda items, including a cash dividend of NT$1.8 per share for the second half of 2022 and the 2022 financial report audited by certified public accountants. Earnings per share of NT$3.16 was equivalent to a profit of 3.16 times the share capital, hitting a record high.
Major resolutions were summarized as follows:
1. Earnings distribution for the second half of 2022
The board approved a cash dividend of NT$1.8 per share for the second half of 2022. Together with a cash dividend of NT$0.73 per share for the first half of 2022 (paid out in January 2023), the cash dividend for 2022 amounted to NT$2.53 per share, representing a dividend payout ratio of about 80%.
In addition, the 2023 annual shareholders’ meeting is scheduled to be held in the Employee Service Center of Kaohsiung Nanzih Technology Industrial Park on June 12, 2023.
2. Fourth quarter and full year 2022 consolidated financial report
Chang Wah’s consolidated revenue amounted to NT$4,870 million for the fourth quarter of 2022, with a gross margin of 23%, net profit attributable to owners of the Corporation of NT$237 million and earnings per share of NT$0.35.
On a quarter-over-quarter basis, consolidated revenue of the fourth quarter dropped 12% as a result of weakening demand in the semiconductor market, while both gross margin and operating margin decreased by 1%. In addition, profit before income tax dropped 61% compared to the third quarter due to decreases in dividend income and foreign exchange gains. Net profit attributable to owners of the Corporation fell 70% with earnings per share of NT$0.35.
As for 2022, consolidated revenue amounted to NT$21,859 million, a year-over-year increase of 6%. Gross margin and operating margin were 23% and 15%, respectively, both up 3% from last year. Profit before income tax increased by 46% to reach NT$4,501 million, while net profit attributable to owners of the Corporation equaled NT$2,164 million, up 25% compared to 2021. Earnings per share of NT$3.16 was equivalent to a profit of 3.16 times the share capital.
Although the operations of consumer electronics and semiconductor industry chains were affected by external political and economic factors such as the Russia-Ukraine war, lockdown measures in mainland China, global inflation and interest rate hikes, robust demand of automotive and industrial control chips offset a part of the sluggish consumer chip demand, allowing Chang Wah to sustain its sales growth in 2022. Revenue, gross margin, operating margin, net profit and EPS of the year all hit record highs.
For financial results of Chang Wah, please refer to the table below or access the corporate website at https://www.cwei.com.tw/
Unit：NT$ million
| Period | 4Q22 | 3Q22 | 4Q21 | QoQ | YoY |
|---|---|---|---|---|---|
| Consolidated revenue | 4,870 | 5,513 | 5,703 | -12% | -15% |
| Gross profit | 1,099 | 1,315 | 1,433 | -16% | -23% |
| Gross margin | 23% | 24% | 25% | Down 1% | Down 2% |
| Profit from operations | 705 | 862 | 846 | -18% | -17% |
| Operating margin | 15% | 16% | 15% | Down 1% | Remained flat |
| Profit before income tax | 610 | 1,548 | 907 | -61% | -33% |
|
Net profit attributable to owners of the Corporation |
237 | 796 | 447 | -70% | -46% |
| Earnings per share (NT$) | 0.35 | 1.17 | 0.65 | -70% | -46% |
| Period | 2022 | 2021 | YoY |
|---|---|---|---|
| Consolidated revenue | 21,859 | 20,671 | 6% |
| Gross profit | 5,069 | 4,148 | 22% |
| Gross margin | 23% | 20% | Up 3% |
| Profit from operations | 3,424 | 2,559 | 34% |
| Operating margin | 15% | 12% | Up 3% |
| Profit before income tax | 4,501 | 3,079 | 46% |
| Net profit attributable to owners of the Corporation | 2,164 | 1,726 | 25% |
| Earnings per share (NT$) | 3.16 | 2.54 | 25% |
Note: As of December 31, 2022, the number of shares issued and the weighted average number of shares outstanding were 689,419 thousand and 683,843 thousand, respectively.