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WPG (TSE:3702) Reported Its Second Quarter Consolidated Operating Income of NT$2.398 Billion, +15.4% YoY, Set Single Quarter Record High. Net Income Grew 33.8% over Previous Year. EPS was NT$0.94 and NT$1.88 for Second Quarter and YTD Respectively, +21.5%

 2016-08-02

WPG (TSE:3702) Reported Its Second Quarter Consolidated Operating Income of NT$2.398 Billion, +15.4% YoY, Set Single Quarter Record High. Net Income Grew 33.8% over Previous Year. EPS was NT$0.94 and NT$1.88 for Second Quarter and YTD Respectively, +21.5% YoY

 

2016/08/02

 

Benefited from growing market share and increased demand for mobile phone in mainland China and growing shipments of automotives, power saving and cloud product, WPG, the largest distributor of semiconductor components in Asia, announced Its second quarter gross profit, operating income and profit before tax hit single quarter record high, consolidated sales reached NT$133.759 billion, represented 10.1% increase over previous quarter’s figures. Under effective expense control, operating expenses to sales ratio declined continuously to 2.48%, operating income reached NT$2.398 billion, a 15.4% increase year over year, profit before tax reached NT$2.031 billion, net income was NT$1.553 billion, represented 33.8% increase year over year. EPS was NT$0.94 per share.

Consolidated sales for the first half of 2016 totaled NT$255.292 billion, net income was NT$3.108 billion, represented 21.5% increase year over year. EPS was NT$1.88 per share.

The profit growth has been delivered by continued growing demand of 4G and 3G smart phone, wireless broadband, and cloud servers. Non-3C segments’ contribution such as automotives, industrial electronics and power saving remained healthy. With increased profit and improving operating efficiency, key financial indices: Return on Working Capital (ROWC) and ROE was 10.6% and 13.3% respectively.

In the second quarter of 2016, driven by the IoT, 89 application solutions were provided in the fields of Smart Home (20), Wearable devices (19), Automotive (17), Smart phone (12), Industrial (8), Smart City (6), Power (5), Security (1), Computer (1), focusing on applications of speech recognition, Mesh, smart thermostat, biosensor, hard development kit, fingerprint verification, dual color flash, BLE side mirrors, in-vehicle infotainment system, bluetooth 4.0 and dual-mode, daily running lamp, multiple channels LED control for automotive, driving video recorder, dynamic steering light, BLDC motor control, Industrial robot, soil fertility monitoring, six-claw robot, LoRa technology, digital power.

 

 Table: WPG Holdings Consolidated Management Financials for the year ended June 30, 2016. (In brief)

Units:NT$ million

Income Statement (2016/1/1~2016/06/30)

 

Balance Sheet (2016/06/30)

Item

Amount

 

Item

Amount

Operating revenues

255,292

 

Current Assets

158,656

Cost of Goods Sold

(244,401)

 

Accounts receivables

86,569

Gross Profit

10,891

 

Inventories

53,854

Operating Expenses

(6,397)

 

Other assets

13,325

Operating income

4,494

 

Total Assets

171,981

Non-op Expenses

(560)

 

Current Liabilities

108,877

Profit Before Tax

3,933

 

Current Borrowing

48,093

Tax

(815)

 

Accounts payables

50,332

Minority & Others

(10)

 

LT Liabilities

15,878

Profit After tax

3,108

 

Total Liabilities

125,848

EPS (Note)

1.88

 

Common Stock

16,557

Net book value per share (Note)

27.56

 

Total Equity

46,133

Note:Based on weighted average outstanding shares.

 

Cash flows (2016/1/1~2016/06/30)

Item

Amount

Income before Income Tax

3,933

Change in NWC

7,233

Operating cash inflow /(outflow)

13,999

Investment cash inflow /(outflow)

(487)

Change in Financial Debt

(13,695)

Financing cash inflow /(outflow)

(13,700)

Cumulative translation adjustments

(1,292)

Net Cash

(1,480)

Beginning cash balance

9,447

Ending cash balance

7,966

 

IR contacts:Cliff Yuan/ Zoe Peng

Tel:886-2-7712-5268 / 886-2-7712-5262

Email address:  ir@WPGholdings.com

Corporate website:  www.WPGholdings.com