Hsinchu, Taiwan, August 8, 2019 – Sino-American Silicon Products Inc. (SAS) today announced second quarter 2019 consolidated revenue of NT$16.65 billion, gross profit of NT$1.88 billion, operating profit of NT$0.62 billion, income before tax of NT$0.78 billion, net loss attributable to the parent company of NT$2.28 billion, and EPS of NT$-3.92. GlobalWafers Co., Ltd. (GWC), its semiconductor subsidiary, also announced consolidated revenue of NT$14.69 billion, net income of NT$3.54 billion and EPS of NT$8.15 for the second quarter.
Due to the liability provision on the onerous contract of NT$4.35 billion in the second quarter, SAS’ gross margin for Q2 declined to 11.3% while operating margin was 3.7% and net profit margin was -3.3%. As of the first half 2019, accumulated consolidated revenue came to NT$34.16 billion while gross profit was NT$8.37 billion and operating income was NT$5.68 billion with a net loss attributable to the parent company of NT$0.44 billion and an EPS of NT$-0.76. GWC’s consolidated revenue for the first half totaled NT$30.28 billion which injected income contribution to parent company SAS up to 90%, and achieved a high EPS of NT$17.02 reflecting remarkable operating performance and significant boost to the overall earning power of SAS.
If excluding the recognition on the liability provision, SAS reported positive profit in every solar sector (including wafers, cells, modules and power plants) in the first half 2019 with an even higher EPS in the second quarter than in the first. Although the liability provision may affect short-term operating results, it will better reflect actual operating performance in the long run.
SAS has launched the high-efficiency N-type CelcoN solar cell which is expected to make a substantial contribution to its revenue after the formal production. Furthermore, subsidiary GWC will expand the accelerated supply of silicon carbide products, which is also seen to bring positive benefits in the future. The semiconductor industry has started recovering yet the continued escalation of the US-China trade war and the chain reaction of the protectionist wars among various countries have left the global economic outlook uncertain. SAS, having two major business units of solar energy and semiconductor, is able to largely decrease operation risks with flexible diversification strategies. SAS’ robust operation in the solar business and the approximately 90% revenue injection from its semiconductor subsidiary GWC will additionally continue to provide SAS with a strong profit base for its overall business performance. With a sound financial structure and sufficient working capital for potential transformation, SAS is seeing meaningful and optimistic performance for the future and beyond.