GlobalWafers today (5/5) held the Board meeting and approved 1Q2020 financial results. GlobalWafers 1Q2020 totaled consolidated revenue NT$13.52 billion, gross profit NT$4.94 billion, operating profit NT$3.81 billion, net income attributed to the parent company NT$2.88 billion and EPS reached NT$6.62.
The financial performance of GlobalWafers 1Q2020 was 28.2% of operating profit margin and 21.3% of net profit margin. Compared to 4Q2019, consolidated revenue was QoQ +0.1%; profit before tax margin was QoQ +1.1%; operating profit margin was QoQ -0.3%; net profit margin was QoQ -0.2%; EPS was QoQ -NT$0.06. 1Q2020 operating performance of GlobalWafers still maintained stable even though the outspread of COVID-19 has impacted various industries severely. Though compared to 4Q201 the gross margin eroded slightly due to the appreciation of NTD against USD, declining ASP, increasing freight costs, yet the EPS still hit NT$6.62!
GlobalWafers’ orders in 2Q2020 remain stable and the utilization rate of all plants maintain high due to COVID-19 stimulates hardware component demands for medical, remote working, long-distance teaching and customers also build safety inventory to prevent supply chain disruption. The outbreak of COVID-19 affects the supply chain, various industries and markets all around the world seriously, a truly black swan event to the world economy. Under such headwind, GlobalWafers Taiwan Headquarters and all sites abroad maintain normal productions by building safety inventory for all necessary raw materials to guard against supply chain disruptions. However, the interrupted international transportations, limited cargo space result in higher freight charge and increase barriers on raw material import and products export, implying higher overall cost. GlobalWafers will closely and continuously monitor the evolvement of COVID-19, maximizing our ability to shift orders as needed among our global manufacturing sites to cope with geopolitical tensions, implementing multi-tiered supply chain to lower the dependence on one single area for risk management.
Regarding the future, the second half of the year 2020 is deeply influenced by the development of COVID-19 and the trade tension. Yet, being the key enabler, semiconductors are necessary in every aspect of the economy and are widely used in critical infrastructure like electronic, telecommunication, energy, finance, transportation, medical devices, the semiconductors industry is an essential business to keep global economy functioning. As long as the epidemic is contained, the global supply and demand balance will be restored, and the semiconductor market demands will bounce back rapidly by technology advancements like AI, IoT, 5G, Memories and etc, bringing optimistic future outlook to GlobalWafers.
The sixth (2019) Corporate Governance Evaluation had been completed and the results were announced. GWC was once again awarded top 5% among all listed companies. It also showed the results of GlobalWafers’ continued refinement of corporate governance, strengthening the corporate governance blueprint and the achievements by corporate social responsibility.