WPG Reports 2021Q2 Consolidated Sales, Operating Income, Net Income and EPS exceeding high range forecast and hitting record high. Consolidated Sales, Operating Income and Net Income Achieved +33.7% YoY, +41.5% YoY, and +50.3% YoY, respectively.
WPG (TWSE:3702) Reports 2021 Second Quarter Consolidated Sales, Operating Income, Net Income and EPS exceeding high range forecast and hitting record high. Consolidated Sales, Operating Income and Net Income Achieved 33.7% growth YoY, 41.5% growth YoY, and 50.3% growth YoY, respectively. EPS was NT$1.66.
2021/08/10
WPG, the largest distributor of semiconductor components globally, announces 2021 Second Quarter consolidated sales, operating income, net income and EPS exceeding high range forecast and hitting record high. Consolidated sales achieved NT$200.226 billion, +33.7% YoY. Operating income achieved NT$3.642 billion, +41.5% YoY. Net Income achieved NT$3.188 billion, +50.3% YoY. EPS was NT$1.66.
Benefited from growth in revenue, 2021 Second Quarter key financial indicators Return on Equity (ROE) was 19.4%, hitting record high within 10 years. Return on Working Capital (ROWC) raised to 10.1%.
The overall strong demand for semiconductor and related electronic components specifically laptops, PCs, base stations, communication components, servers, and cloud are the major causes for record-high sales and net income.
For 2021 Third Quarter, based on an exchange rate assumption of NT$28 to the U.S. dollar, WPG forecasts consolidated revenue of NT$190 billion to NT$200 billion, gross margin of 3.7% to 3.9%, operating margin of 1.6% to 1.8%, net income of NT$2.562 billion to NT$2.989 billion, EPS of NT$1.53 to NT$1.78.
To achieve sustainable development and maximize shareholders’ equity, as the biggest semiconductor components distributor globally, WPG examines all aspects of sustainable development comprehensively and deploys various actions ahead of peer. To strengthen corporate governance, board resolution quality and board diversity, one female independent director was added to the board at 2021 AGM, Chief Sustainability Officer was appointed in early 2021, and full attention was paid to global risks. “Employee Stock Ownership Trust” (ESOT) was introduced to assist our employees with their retirements plans as well as to enhance ownership culture that results in the continued success of WPG. Over 90% of eligible employees have participated. Additionally, in response to climate crisis and the Paris Agreement, WPG pledged to achieve Net Zero Emissions by 2050 and Net Zero in own operations including office buildings and warehouses by 2030 at 2021 AGM to strengthen climate change governance. To restore our Earth and build sustainable supply chain together with all partners along the value chain, WPG would continue increase energy efficiency, reduce carbon emission, increase renewable energy usage, as well as promote industry-wise green transition.
Table: WPG Holdings Ltd. Consolidated Financial Statements for the six months ended June 30, 2021 (In brief)
Units：NT$million
|
Income Statement (six months ended June 30, 2021) |
|
Balance Sheet (June 30, 2021) |
||
|
Item |
Amount |
|
Item |
Amount |
|
Operating revenues |
377,341 |
|
Current Assets |
253,568 |
|
Cost of Goods Sold |
(362,740) |
|
Accounts receivables |
150,288 |
|
Gross Profit |
14,601 |
|
Inventories |
77,685 |
|
Operating Expenses |
(7,973) |
|
Other assets |
40,664 |
|
Operating income |
6,628 |
|
Total Assets |
294,232 |
|
Non-op Expenses |
336 |
|
Current Liabilities |
200,109 |
|
Profit Before Tax |
6,964 |
|
Current Borrowing |
96,503 |
|
Tax |
(1,269) |
|
Accounts payables |
83,245 |
|
Minority & Others |
(89) |
|
LT Liabilities |
24,490 |
|
Profit After tax |
5,607 |
|
Total Liabilities |
227,757 |
|
EPS - Common Stock (Note1) |
3.10 |
|
Common Stock |
16,791 |
|
Note1：Based on weighted average outstanding shares. |
|
Total Equity |
66,475 |
|
|
Cash Flow Statement (six months ended June 30, 2021) |
|
|
Item |
Amount |
|
Income before Income Tax |
6,964 |
|
Change in NWC |
(39,337) |
|
Operating cash inflow /(outflow) |
(29,325) |
|
Investment cash inflow /(outflow) |
(31) |
|
Change in Financial Debt |
31,948 |
|
Financing cash inflow /(outflow) |
32,252 |
|
Cumulative translation adjustments |
(2,018) |
|
Net Cash |
878 |
|
Beginning cash balance |
11,020 |
|
Ending cash balance |
11,898 |
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