News

Release Date:02/14/2019

Innolux Corporation Announced Net Income of NT$ 2.2 Billion in 2018

Innolux Corporation (3481.TW) announced its 4Q 2018 consolidated revenues of NT$ 72.2 billion, operating loss of NT$ 1.4 billion, net loss of NT$ 0.7 billion, and a basic EPS of NT$ -0.07, depreciation & amortization of NT$ 8.7 billion and capital expenditure of NT$ 11.8 billion.
 
For the full year of 2018, the Company reported consolidated revenues of NT$ 279.4 billion. Gross profit was NT$ 26.8 billion, for a gross margin of 9.6%. Operating profit totaled NT$ 4.8 billion with an operating margin of 1.7%. Net profit amounted to NT$ 2.2 billion. EPS equaled NT$ 0.22.
 
In 4Q18, the Company shipped 8.05 million square meters, a decrease of 3.9% quarter-on-quarter. Blended area ASP for TFT-LCD panels averaged US$ 292 per square meter. Small and medium-sized panel revenues were NT$ 16.1 billion in 4Q18, a decrease of 11.5% quarter-on-quarter. The Company shipped 594.2 thousand square meter area of small and medium-sized during the fourth quarter 2018, a decrease of 21.7% quarter-on-quarter.      
 
The Company shipped 30.64 million square meters of panel in 2018, an increase of 7.62% over 28.47 million square meters in 2017. For the full year 2018, the company shipped 272 million for small-and-medium-sized units, a 0.4% increase over the 271 million units shipped in 2017.
 
In terms of product application, Mobile & CP, Mobile PC, Desktop, TV panels accounted for 24%, 20%, 13% and 43% of net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch-and -above panels accounted for 22%, 23%, 16%, 4%, and 35% of net sales, respectively.
 
Looking back to 4Q18, due to slipping panel market prices, revenues decline 2.3% quarter-on-quarter. Nevertheless, through the cost management and operating efficiency improvement, the Company continued to generate profits with gross margin and EBITDA margin achieving 6.2% and 10.0%, respectively. In 2018, under macro uncertainties and trade dispute circumstances, the Company still delivered net profits and a basic EPS achieving NT$2.2 billion and NT$ 0.22, respectively.
 
Entering into 1Q19, the market price of large-sized panels is expected to bounce and the shipments in small and medium-sized panel may decline due to the oversupply of smart phones. The Company will face the situation of macro uncertainties and oversupply of worldwide panels in 2019. However, the Company will dynamically adjust its product line and product mix to respond to market fluctuation, aiming to achieve long-term profitability and operation stability. In the mean time, the Company will proactively develop new business and technology. In that way, the Company will continue to strengthen its competitive advantage and to maintain its operational stability.
 
Based on our current business outlook, the Company expects its 1Q19 guidance as follows:
Large panel
     Shipments to be down mid teens digit % QoQ
    Blended ASP to be flat % QoQ
Small & Medium panel
    Shipments to be down high teens digit % QoQ
    Blended ASP to be down mid teens digit % QoQ


Table 1: Statements of Comprehensive Income (Quarter)
Units: NTD million except per share data

  4Q 2018 3Q 2018 QoQ% 4Q 2017
Net Sales 72,243 100.0% 73,907 100.0% -2.3% 79,132 100.0%
  Cost of Goods Sold 67,776 93.8% 66,475 89.9% 2.0% 67,949 85.9%
Gross Profit 4,468 6.2% 7,432 10.1% -39.9% 11,183 14.1%
Operating Expenses 5,898 8.2% 5,642 7.6% 4.5% 5,512 7.0%
Operating Income(loss) (1,431) -2.0% 1,790 2.4% nmf 5,672 7.2%
Net Non-operating Income(Exp.) 501 0.7% 775 1.0% -35.4% 55 0.1%
Income(loss) before Tax (929) -1.3% 2,566 3.5% nmf 5,727 7.2%
Net Income(loss) (697) -1.0% 1,913 2.6% nmf 4,295 5.4%
  Basic EPS (1)(2) (0.07)   0.19     0.43  
EBITDA(3) 7,237 10.0% 10,684 14.5% -32.3% 14,243 18.0%
 

Table 2: Statements of Comprehensive Income (Annual)
Units: NTD million except per share data
 
  2018 2017 YoY%
Net Sales 279,376 100.0% 329,174 100.0% -15.1%
  Cost of Goods Sold 252,563 90.4% 260,436 79.1% -3.0%
Gross Profit 26,814 9.6% 68,739 20.9% -61.0%
Operating Expenses 21,978 7.9% 21,716 6.6% 1.2%
Operating Income(loss) 4,835 1.7% 47,022 14.3% -89.7%
Net Non-operating Income(Exp.) 1,734 0.6% 1,919 0.6% -9.6%
Income(loss) before Tax 6,569 2.4% 48,941 14.9% -86.6%
Net Income(loss) 2,223 0.8% 37,029 11.2% -94.0%
  Basic EPS (1)(2) 0.22   3.72    
EBITDA(3) 40,713 14.6% 80,586 24.5% -49.5%
 
Notes:
1.Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
2.Capital Stock (common): NT$99.5 billion as of December 31, 2018
3.EBITDA = Operation Income + Depreciation & Amortization
4.All figures are prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in TIFRS.

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