Taipei, Taiwan, Nov 3 2023 – TPK Holding Co., Ltd. (TWSE: 3673) (“TPK” or the “Company”) today announced 2023 3rd quarter unaudited consolidated operating results. Company reported revenues of NT$18,053 million and net profit of NT$72 million, or earnings per share of NT$0.18 for the quarter. For the first nine months of 2023, revenues reached NT$51,606 million and EPS amounted to NT$0.51.
3Q23 Operating Results
In the backdrop of prolonged decline in global PC shipments as market continued to be weighed down by slowdown in consumer and enterprise purchases, TPK recorded 3Q23 revenues of NT$18,053 million, down 35.4% year-on-year and up 11.2% quarter-on-quarter. Gross profit amounted to NT$1,044 million, up from NT$630 million for 2Q23 and gross margin elevated from 3.9% to 5.8%, thanks to operational excellence and favorable product mix. In terms of product mix, demand for notebook PC and large-sized tablets (11” to 16”) showed sign of recovery and registered 19.2% sequential revenue growth. On the contrary, revenues for smartphone, e-paper and tablet products remained muted. The total revenue of products below 7 inches and those between 7-11 inches in the third quarter remained similar to the previous quarter. Large-sized product sales were flat quarter-on-quarter.
For COGS breakdown, raw materials were NT$14,784 million, representing 81.9% of revenues, slightly improved from 82.1% from 2Q23. Labor expense stayed flat at NT$1,095 million to the previous quarter, equivalent to 6.1% of revenues, down from 6.7% earlier. Depreciation cost remained low at N$846 million, down from 5.1% to 4.7% of revenues. 3Q23 operating expense rate accounts for 4.4% down from 4.8% as TPK continues to enhance operating efficiency for sustainability.
For the third quarter, Company recorded net interest income of NT$100 million and foreign exchange loss of NT$71 million. Other non-operating expense amounted to NT$85 million, mainly due to market price volatility from strategic investments. For 3Q23, net profit totaled NT$72 million and earnings per share were NT$0.18.
Balance Sheet & Cash Flow
As of September 30 2023, cash and cash equivalent1 were NT$50,608 million, flat to NT$50,541 million at the end of second quarter. Total bank borrowings reduced slightly from NT$35,394 million to NT$34,453 million, mainly from the decrease of short-term loan. Capital expenditure for the third quarter was NT$92 million on accrual basis. EBITDA remained healthy at NT$1,589 million for the quarter. TPK remained at net cash of NT$16,155 million as of September 30 2023.
Note: All financial numbers are prepared in accordance with IFRs, which is approved by regulators in Taiwan.
Note 1: Cash and cash equivalent includes “Cash Equivalents” and “Risk-Free Banking Financial Product.”
Press Release (PDF)
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