GlobalWafers Reports Q1 2021 Results

Hsinchu, Taiwan — May 4, 2021 — GlobalWafers Co., Ltd. (GWC) board approved Q1 2021 earnings results today with the consolidated revenue of NT$14.806 billion, gross profit of NT$5.193 billion, operating profit of NT$3.952 billion, profit before tax of NT$3.529 billion, net income attributable to the parent company of NT$2.69 billion, and EPS of NT$6.18.

Year-over-year, Q1 2021 consolidated revenue increased by 9.6%, gross profit increased by 5.2%, operating profit increased by 3.9%, net income attributable to the parent company decreased by 6.6% and EPS decreased by NT$0.44. Although revenue has grown for five consecutive quarters, the local subsidiaries were affected by the winter storm in the United States and the earthquakes in Japan this February, and the exorbitant freight rates were aggravated by the Suez Canal obstruction, rising costs from the urgent coordination because of container shortage as well as increased prices of many raw materials, GlobalWafers’ Q1 2021 profits decreased slightly compared to previous quarters.

After a comprehensive review of our business and financing strategies, GlobalWafers’ board approved our decision to strategically adjust down our above industry average dividend payout and redirect the cash into the growth of the business efficiently and achieve optimal capital structure, aiming to maximize the operational synergy by investing in process and capability improvement at the right window of industry uptick. In order to share the results with shareholders more quickly, GlobalWafers has started paying dividends semi-annually since this year. The Board of Directors also approved today the cash dividend payment plan for the second half of 2020. It is proposed to distribute a cash dividend of NT$10 per share, with a total amount of NT$4.352 billion for the second half of 2020. If the cash dividend of NT$8 per share (total amount of NT$3.482 billion) distributed in the first half is included, an annual cash dividend of NT$18 per share (total annual amount of NT$7.834 billion) is distributed throughout 2020. GlobalWafers’ Annual General Shareholder Meeting will be convened at 9 a.m. on June 22 at the Hsinchu Science Park Life Hub, Taiwan.

 As for GlobalWafers’ offer to Siltronic AG, Korea Fair Trade Commission has also unconditionally cleared the deal in addition to Federal Cartel Office (German antitrust regulator), Federal Competition Authority (Austrian antitrust regulator), and US CFIUS clearance disclosed last month as of the date of this release. The company continues to expect the closing of the transaction in the second half of 2021. The closing of the offer remains subject to receipt of further regulatory approvals.

The results of the seventh (2020) Corporate Governance Evaluation were announced. GlobalWafers was once again awarded top 5% among all listed companies for 3 consecutive years, demonstrating GlobalWafers’ dedication in corporate governance and fulfillment incorporate social responsibility.