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TPK Interim / Quarterly Report 2021

Aug 13, 2021

52363_rns_2021-08-13_bb4a4b9b-869c-4e4c-9489-610fc6afe579.pdf

Interim / Quarterly Report

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TPK Proprietary & Copyright © All Rights Reserved

Disclaimer Statement

This presentation and release may contain ‘forward-looking statements’ which may include projections on future results of operations, financial condition and business prospects based on our own information and other sources.

The actual results of operations, financial condition and business prospects may differ from those explicitly or implicitly indicated in those forward-looking statements for a variety of reasons, including but not limited to market demand, price fluctuations, competition, supply chain issues, global economic conditions, exchange rate fluctuation and other risks and factors beyond TPK’s controls.

The forward-looking statements in this presentation, if any, only reflect the current view of TPK Holding Co., Ltd. as of the date of its release. TPK undertakes no obligation to update those forward-looking statements for events or circumstances that occur subsequently.

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TPK Proprietary & Copyright © All Rights Reserved

Disclosure Notice

公告原則

 All financial numbers are prepared in accordance with IFRS which is approved by regulators in Taiwan

  • All financial numbers are unaudited

 本公司財務報表係依照臺灣主管機關認可之國際財務報導準 則編製

  • 所有財務數字均為本公司自結數

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TPK Proprietary & Copyright © All Rights Reserved

2Q21 Result Summary 2021年第二季營運簡報

NT$ Revenues Net Profits EPS
2Q21 24.6 bn 322 mn 0.79
  • Seasonal inventory adjustment and product transition cause Q2 revenue to decline 15.8% QoQ

  • Demand for NB and large-sized tablets are still strong

  • Profit grows due to favorable product mix

  • 2Q21 EBIDA amounted to NT$1.8 billion with net cash of NT$8.7 billion

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TPK Proprietary & Copyright © All Rights Reserved

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Financials

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TPK Proprietary & Copyright © All Rights Reserved

2Q21 Profit & Loss

2021年第二季損益表

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Profit & Loss QoQ
2Q20
YoY
2Q21
1Q21
(NT$ million)
Revenues
COGS
Gross Profits
Operating Expenses
SG&A
R&D
Operating Profits
Non-Op Inc/(Exp)
Int Inc/(Exp)
FX Gain/(Loss)
Others
Earnings Before Tax
Income Tax
Net Income (Parent)
EPS (Parent)
EBITDA
(15.8%)
28,049
(12.3%)
(26,652)
16.9%
1,397
(30.2%)
(969)
(770)
(198)
168.1%
428
(57.7%)
141
(13)
17
137
570
(262)
308
0.76
2,409
(23,613)
(28,352)
24,588
29,186
975
834
(793)
(766)
(624)
(601)
(169)
(165)
181
68
161
305
(6)
(1)
36
155
131
151
342
373
(11)
(34)
322
350
0.79
0.86
1,848
1,868
Margin:
GM
OM
NM
OpExp
5.0%
1.5%
1.1%
(3.5%)
4.0%
2.9%
0.7%
0.2%
1.3%
1.2%
(3.2%)
(2.6%)

Note: 2Q21Fully Diluted Weighted Average: 407 million shares

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TPK Proprietary & Copyright © All Rights Reserved

Quarterly Sales by Form Factors 季營收結構

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TPK Proprietary & Copyright © All Rights Reserved

2Q21 Balance Sheet 2021年第二季資產負債表

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Balance Sheet 2021/6/30
2021/3/31
2020/6/30
(NT$ million)
Cash Equivalents
Risk-Free Banking Financial Product
Receivables
Other Receivables
Inventories
Current Assets
PP&E
Total Assets
ST Loans
Payables
Current Liabilities
LT Loans
Total Liabilities
Common Shares
Retained Earnings
Total Shareholder's Equities
28,635
32,128
19,343
5,265
3,752
15,416
10,452
10,847
10,628
3,376
6,316
2,597
8,671
9,101
8,201
59,155
65,395
56,535
20,213
21,708
25,126
86,675
94,318
88,275
14,616
21,203
17,815
12,402
14,498
14,490
33,307
42,942
38,188
10,547
8,297
7,881
50,749
58,161
52,180
4,067
4,067
4,067
4,535
4,203
2,907
35,926
36,156
36,094
Ratio Analysis:
Quick Ratio
Current Ratio
ROE (YTD Annualized)
Net Debt to Equity
1.52
1.31
1.27
1.78
1.52
1.48
3.7%
3.8%
1.9%
Net Cash
Net Cash
0.18

Note: PP&E includes prepayments.

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TPK Proprietary & Copyright © All Rights Reserved

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TPK Proprietary & Copyright © All Rights Reserved

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FOR IMMEDIATE RELEASE

TPK REPORTS UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE SECOND QUARTER OF 2021

Taipei, Taiwan, August 13, 2021 – TPK Holding Co., Ltd (TWSE: 3673) (“TPK” or the “Company”) today announced 2021 second quarter unaudited consolidated operating results. Company reported revenues of NT$24,588 million and net profit of NT$322 million, or earnings per share of NT$0.79 for the quarter. For the first six months of 2021, net profit totaled NT$672 million, or earnings per share of NT$1.65.

2Q21 Operating Results

Second quarter revenues reached NT$24,588 million, down 15.8% quarter-on-quarter. The sequential decline was mostly attributable to seasonal inventory adjustment and product transition. Among different product segments, smartphone volume declined the most due to upcoming model change. Despite slow seasonal, notebook demand remained strong and posted 13.9% sequential growth and accounted for close to 15% of 2Q21 revenues. Revenues from industrial, automotive and other non3C sectors were on track and amounted to roughly 6% of the revenues. For the quarter, revenues from small-sized products (<7”) posted 44.8% sequential decline and accounted for 18% of total revenues, down significantly from 27% for first quarter. Tablet segment also recorded 21.3% quarteron-quarter revenue decline and amounted to 28% of 2Q21 revenues. On the contrary, notebook PC and large-sized tablet sector reported 10.0% sequential revenue growth, elevating its percentage of quarterly revenues from 38% to 49%. Despite the seasonal weakness in revenues, gross profits increased to NT$975 million, up 16.9% sequentially, as a result of higher percentage of revenue contribution from large size product, i.e. tablet and notebook. Gross margin also improved to 4.0% from 2.9% for the previous quarter.

In terms of COGS breakdown, raw materials were NT$20,398 million. Raw material as a percentage of COGS reduced from 84.9% for 1Q21 to 83.0% for this quarter in the backdrop of smartphone production transition. Labor cost amounted to NT$1,486 million, down 16.1% sequentially. The reduction in labor

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cost was proportional to the revenue decline. Depreciation cost was flattish quarter-on-quarter at NT$1,222 million for 2Q21. Operating expenses remained low at NT$793 million, equivalent to 3.2% of sales for the quarter. As a result of favorable product mix change and effective cost controls, 2Q21 operating profits amounted to NT$181 million and operating margin reached 0.7%.

Company posted net interest expenses of NT$6 million and recorded FX gain of NT$36 million, thanks to effective cash management and risk-free FX arbitrage. For 2Q21, earnings per share amounted to NT$0.79.

Balance Sheet & Cash Flow

As of June 30[th] 2021, cash & cash equivalent and financial assets totaled NT$33.9 billion, slightly down from NT$35.9 billion at the end of 1Q21 while total bank borrowings also reduced from NT$29.5 billion at end of the first quarter to 25.2 billion. Capital expenditure for the quarter was NT$163 million on accrual basis. EBITDA remained healthy at NT$1.8 billion for the quarter. TPK remained at net cash position as of end of 2Q21.

Note: All financial numbers are prepared in accordance with IFRs, which is approved by regulators in Taiwan.

IR Contact

Freddie Liu, Chief Strategy Officer Tracy Tsai, Chief Financial Officer Kevin Wang, Senior Director Tel: +886.2.7727.1196 [email protected]


ABOUT TPK

TPK was founded for touch solutions in 2003. We are the inventor of transparent glass-based projected capacitive (P-Cap) touch solutions and the first company for mass production. TPK excels at defining new technology mass production processes with in-house automation and flexible production capabilities. Our production sites are located in Xiamen City of Fujian Province, China.

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2Q21 PROFIT & LOSS

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Profit & Loss 2Q21 1Q21 QoQ 2Q20 YoY
(NT$ million)
Revenues 24,588 29,186 (15.8%) 28,049 (12.3%)
COGS (23,613) (28,352) (26,652)
Gross Profits 975 834 16.9% 1,397 (30.2%)
Operating Expenses (793) (766) (969)
SG&A (624) (601) (770)
R&D (169) (165) (198)
Operating Profits 181 68 168.1% 428 (57.7%)
Non-Op Inc/(Exp) 161 305 141
Int Inc/(Exp) (6) (1) (13)
FX Gain/(Loss) 36 155 17
Others 131 151 137
Earnings Before Tax 342 373 570
Income Tax (11) (34) (262)
Net Income (Parent) 322 350 308
EPS (Parent) 0.79 0.86 0.76
EBITDA 1,848 1,868 2,409
Margin:
GM 4.0% 2.9% 5.0%
OM 0.7% 0.2% 1.5%
NM 1.3% 1.2% 1.1%
Op Exp (3.2%) (2.6%) (3.5%)
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Note: 2Q21Fully Diluted Weighted Average: 407 million shares

2Q21 BALANCE SHEET

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