Taipei, Taiwan, April 30 2024 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) todayannounced 2024 1st quarter unaudited consolidated operating results. Company reported revenues ofNT$15,330 million and net profit of NT$116 million for the quarter and EPS of NT$0.29.
1Q24 Operating Results
TPK reported 1Q24 revenues of NT$15,330 million, down 16.0% sequentially due to seasonality, withdecline in revenue from tablets and NBs. Additionally, as smartphone products have reached its EOLand the company has reduced its shares in the automotive subsidiary, revenue from auto business hasbeen excluded from the consolidate financial report since 2024. Therefore, compared to the same periodlast year, revenue has decreased by 11.5%. Gross profit amounted to NT$650 million, down 6.0% fromthe previous year and down 24.8% quarter-on-quarter. Gross margin lowered from 4.7% for 4Q23 to4.2%, mainly due to decline in capacity utilization. For the quarter, demand for small-sized products(<7”) remained strong and registered a growth of 18.5% quarter-on-quarter, mainly driven by shipmentincrease of e-readers. In contrast, revenues from tablets (7”~11”) and large-sized tablets and NB(11”~16”) products showed signs of seasonal weakness and posted sequential declines of 33.0% and2.1%, respectively. Owing to the exclusion of consolidate revenue from automotive products startingthis quarter, revenues from large-sized (>16”) products posted a decrease of 26.2% quarter-on-quarter.
For COGS breakdown, raw materials were NT$12,524 million, representing 81.7% of revenues, slightlydown from 82.4% from 4Q23 on the back of favorable product mix. Labor expense decreased slightlyto NT$1,141 million in line with decline on top-line, and equivalent to 7.4% of revenues, up from 6.5%earlier. Depreciation cost trended lower to N$726 million, but up from 4.2% for 4Q23 to 4.7% ofrevenues. Operating expense as a percentage of revenues increased from 4.8% in 4Q23 to 5.2% in thisquarter, which is attributable to lower capacity utilization. Operating loss for 1Q24 amounted to NT$ 144million.
For the first quarter, Company recorded net interest income of NT$165 million and foreign exchangegain of NT$33 million. Strategic investments totaled a gain of NT$10 million. Other non-operatingincome was NT$64 million, including government subsidies and rental income. For 1Q24, net profitamounted to NT$116 million and EPS of NT$0.29.
Balance Sheet & Cash Flow
As of March 31 2024, cash and cash equivalent1 were NT$51,036 million, up from NT$46,321 million atthe end of last year. Total bank borrowings increased in conjunction with surge in cash equivalent fromNT$29,778 million to NT$34,232 million, of which short-term borrowings amounted to NT$22,889 million.Capital expenditure for the quarter was NT$390 million on accrual basis. EBITDA remained healthy atNT$1,362 million for the quarter. TPK remained at net cash of NT$16,804 million as of March 31 2024.
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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