GWC Released 2016 Annual Financial Report with an EPS of NT$2.54

Hsinchu, Taiwan, March 21, 2017 – The board of directors of GWC today approved the 2016 annual financial report. Consolidated revenue was NT$18.43 billion with 20.4% YoY growth. Gross profit reached NT$4.13 billion with 1.4% YoY growth. Operation profit was NT$1.38 billion with 48.7% YoY dropped. Profit before tax was NT$1.34 billion with 52.1% YoY dropped. Net income attributed to SAS was NT$939 million with an EPS of NT$2.54. Compared with last year, the decline of net income and EPS for 2016 was followed by the large expense caused by two mergers with the semiconductor unit of Tosil Semiconductor Materials A/S as well as SunEdison Semiconductor and the recognition of all loss from SunEdison (SEMI) in December after the complete merger on 2nd December 2016.

The board of GWC also resolved to issue GDR through fund raising in order to increase working capital, reinvest its subsidiaries, repay bank loans and enhance company’s competitiveness. Expected issue amount is 59,200,000 shares to 74,000,000 shares as maximum. Besides, GWC’s 2017 annual general meeting will be held on June 19 at 9 a.m. at HSPLINK in Hsinchu Science Park.

Looking back to the 2016 global semiconductor market, demand for 8” and 12” inch wafers remained steady in the first half coming from applications such as smart phones, PC and consumer electronics devices. Small and median size wafer production lines were also driven by strong demand of power components such as MOSFET and Schottky that made GWC full loaded. The recovery of semiconductor market in the second half of last year not only kept GWC’s small and median size wafer lines full loaded but made customer’s inventory digested completely and started requesting new replenishment for the strong demand of 12”. The 12” silicon wafer supply has got rid of over-supply imbalance condition in the past 10 years, even facing supply shortage status. GWC is fully loaded for all size production lines since 4Q last year. GWC has recorded twelve month consecutive revenue growth as well.

Look at 1Q 2017 semiconductor market status, given strong demand for memory, high-end smart phones, IOT devices, we saw continuously full loaded of 3” to 12” inch wafers at all sites of GWC. High gross margin product mix also grows rapidly. Although customers have agreed price-up in large size wafers, we still can’t fully meet customer’s request due to capacity limitation. Based on the forecast, the shortage will remain same situation in 2Q and 2H this year.

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