Taipei, Taiwan, August 14 2024 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced 2024 second quarter unaudited consolidated operating results. Company reported revenues of NT$19,146 million and net profit of NT$354 million which was equivalent to EPS of NT$0.87 for the quarter. For the first half of 2024, net profit amounts to NT$470 million, an increase of 251.8% versus first half of 2023. EPS for the first half of 2024 were NT$1.16.
2Q24 Operating Results
Despite 2Q seasonal weakness, TPK’s 2Q24 revenues rebounded to NT$19,146 million, up 24.9% sequentially and up 18.0% year-on-year in the backdrop of strong demand for tablet and energy storage. Gross profit for the quarter amounted to NT$820 million, up 26.1% from 1Q24 and up 30.0% from the previous year. Despite unfavorable product mix for the quarter, gross margin increased slightly to 4.3%, mainly attributable to greater business scale and operational leverage. In terms of revenue mix, demand for e-reader, tablet and notebook continued to soar in the second quarter and resulted in revenues growth of 18.6% for tablet (7~11”) and 16.3% for notebook (11~16”) segments, sequentially. Delivery of energy storage ramped up rapidly during 2Q24 and uplifted “Others/non-touch” category from 3% to 11% of quarterly sales, up 364% sequentially in dollar terms. However, on the other hand, revenues for smartphone (<7”) segment declined 24.9% from quarter-on-quarter as legacy products continued to phase out.
For COGS breakdown, raw materials were NT$15,821 million, equivalent to 82.6% of quarterly revenues, up from 81.7% for the first quarter because of revenue contribution from energy storage business. Labor expenses increased slightly from NT$1,141 million in 1Q24 to NT$1,306 million, up 14.4%, on the back of 24.9% sequential revenues growth and translated into 6.8% of revenue, down from 7.4% earlier. Depreciation cost was also up slightly from $726 million in Q1 to $807 million, mainly due to moderate CAPEX for a new product and currency translation of weakening NTD versus USD for the quarter. As a percentage of sales, depreciation cost lowered from 4.7% for 1Q24 to 4.2% for this quarter. Company was able to achieve business leverage for operating expenses with a marginal 3.3% sequential increase in expenses versus 24.9% growth in business scale. As a result, operating result returned to almost breakeven at a loss of NT$0.7 million for this quarter.
For the second quarter, Company recorded net interest income of NT$202 million and foreign exchange gain of NT$251 million. Strategic investments also totaled a gain of NT$99 million. Other non-operating income amounted to $16 million. For 2Q24, net profit amounted to NT$354 million, up 204.1% qoq and up 1,009.7% yoy.
For the first six months of 2024, revenues reached NT$34.5 billion, up 2.8% compared with first half of 2023. Revenue increase was mainly attributed to the launch of new tablet product and the ramp up of energy storage business. Net profit reached NT$470 million, up 251.8% versus 1H of 2023. EPS were NT$1.16.
Balance Sheet & Cash Flow
As of June 30 2024, cash and cash equivalent1 were NT$53,777 million, up from NT$51,036 million at the end of first quarter. Total bank borrowings remained largely unchanged at NT$34,759 million from NT$34,232 million earlier. Capital expenditure for the quarter was NT$112 million on accrual basis. Company’s quarterly EBITDA increased to NT$1,883 million from NT$1,362 million in 1Q24. TPK remained at net cash of NT$19,018 million as of June 30 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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