Taipei, Taiwan, November 1 2024 – TPK Holding Co., Ltd. (TWSE: 3673) (“TPK” or the “Company”) today announced 2024 third quarter unaudited consolidated operating results. Company reported revenues of NT$18,553 million and net profit of NT$199 million which was equivalent to EPS of NT$0.49 for the quarter. For the first nine months of 2024, net profit amounts to NT$670 million, an increase of 225.4% versus the same period of 2023. EPS for the first nine months of 2024 totaled NT$1.65.
3Q24 Operating Results
Revenues dipped 3.1% from the previous quarter in the backdrop of project transition for energy storage product and the sluggish global PC demand for third quarter. Gross profits for the quarter amounted to NT$831 million, up 1.4% quarter-on-quarter, which was attributable to effective labor management and favorable product mix. In terms of revenue contribution, notebook (11~16”) products continued its dominance at 45%. Revenues from Tablet (7~11”) was up 97.5% from the second quarter on account of new e-reader product ramp-up and seasonal demand. Tablet segment represented 44% of 3Q24 revenues, up from 22% for the previous quarter. On the other hand, large-sized (>16”) remained roughly unchanged at 8% of quarterly sales. By contrast, smartphone (<7”) revenues were down to 1% of third quarter sales, marking the end of legacy smartphone products.
For COGS items, raw materials were NT$15,307 million, equivalent to 82.5% of 3Q24 revenues, flat to 82.6% for the quarter earlier. Despite project transition for energy storage products, labor expense as a percentage of sales, reduced from 6.8% for 2Q24 to 6.6% as a result of efficiency enhancement in labor management. Depreciation cost amounted to NT$789 million, roughly the same as the previous quarter at 4.3% of revenues. Manufacturing overhead was up slightly to 2.2% of quarterly revenues from 2.0% previously owing to lower business scale. 3Q24 operating expenses, as a percentage of sales, reduced to 4.0% from 4.3% for the quarter earlier. Company recorded an operating profit of NT$94 million for 3Q24, up from breakeven for the last quarter.
For this quarter, Company reported net interest income of NT$233 million and foreign exchange gain of NT$160 million. Strategic investments also totaled a gain of NT$64 million. Other non-operating expenses amounted to $115 million. For 3Q24, net profit amounted to NT$199 million, up 176.2% year-on-year.
Balance Sheet & Cash Flow
At the end of third quarter, cash and cash equivalent1 were NT$47,362 million, down from NT$53,777 million at the end of second quarter. Total bank borrowings also reduced from NT$34,759 million to NT$31,166 million for the quarter. Capital expenditure for the quarter was NT$113 million on accrual basis. Company’s quarterly EBITDA amounted to NT$1,685 million. TPK remained at net cash of NT$16,196 million as of September 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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