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LITEON Technology reported second quarter consolidated sales of NT$ 43 billion, up 4% Q-o-Q, 6% Y-o-Y, hitting second quarter record high in 3 consecutive years. The sales were supported by stable growth from opto-electronics, cloud computing, 5G, AIoT and automotive applications. Despite the supply chain being affected by the lockdown in East China, by actively optimizing product mix, managing global capacity with quicky response and flexibility, and continuously improving operational efficiency, all three business divisions continued to grow. The gross profits and operating profits reached NT$8.8 billion and NT$4.4 billion, up 10% and 15% Y-o-Y respectively; gross profit margin and operating profit margin were 20.4% and 10.2%, of which, gross profit margin and operating margin both hit record highs. Net profits were NT$ 4 billion, with EPS of NT$1.74. Net cash reached NT$32.1 billion, attributable to the aggressive working capital management and strong positive free cash flow generated from operation.
In the first half of this year, despite macro environment and supply chain faced high challenges, LITEON’s operational performance continued to grow. The accumulative sales reached NT$84.2 billion, up 7% Y-o-Y, while gross margin and operating margin were 18.8% and 8.7%; gross profits and operating profits were NT$15.8 billion and NT$7.4 billion, up 8% and 24% Y-o-Y respectively; net profits were NT$6.1 billion with an EPS of NT$2.66. Moreover, operating profits hit a record in the same period, demonstrating LITEON’s operational resilience, profitable growth and ability to respond quickly and flexibly.
“LITEON continues to achieve the goal of profitable growth. In the first half of the year, the accumulative sales increased by 7% Y-o-Y, and operating profits increased by 24% compared with last year. The increase in profit resulted from the continuous expansion of Opto-electronics and Cloud Business, which was in line with the goal of profitable growth. Looking into the second half, the market is still full of uncertainties: the following condition of the epidemic, diversified global supply chain, inflation and economic downturn may affect future supply and demand of the market. LITEON will continue to focus on fast growing fields such as power solutions for cloud computing applied in data centers, opto-electronic semiconductors applied in automotive electronics, fast charging of electric vehicles, 5G small cells, and AIoT. Through continuous investment in research and development, more and better energy-saving products and solutions are expected to be launched. Therefore, we are confident of sustainable growth in the third quarter,” said Mr. Anson Chiu, President of LITEON Technology.
Looking at the second quarter revenue contribution by segment, three business segments all demonstrate profitable growth in terms of sales and profit. Cloud and AIoT Business accounted for 33% share of total sales; Opto-electronics Business contributed 20%; Information and Consumer Electronics Business accounted for 47%. In addition, Opto-electronics and Cloud & AIoT Businesses gradually increased to 53% of total revenue, which represents the effectiveness of LITEON’s operation strategies of transformation.
Looking ahead to the third quarter of 2022, under the assumption that the pandemic will not further impact the global supply chain and logistics, market demand from cloud computing, IR products of opto-electronics applied in green energy and industrial is expected to bring a stable profit and sales growth. Through continuous optimization of product mix, supply chain management and reinforcement of customer co-operation, the operation of IT&CE Business is expected to have sustainable growth.