Sino-American Silicon Products Inc. (SAS) today (5/7) held the Board meeting and approved 1Q2020 financial results. SAS 1Q2020 totaled consolidated revenue NT$15.28 billion, gross profit NT$5.05 billion, operating profit NT$3.71 billion, profit before tax NT$3.84 billion, net income attributed to the parent company NT$1.38 billion and EPS reached NT$2.37. SAS’ semiconductor subsidiary, GlobalWafers (GWC) also concluded 1Q2020 with consolidated revenue NT$13.52 billion, operating profit NT$3.81 billion, net income attributed to the parent company NT$2.88 billion and EPS hit NT$6.62.
The financial performance of SAS 1Q2020 was 24.3% of operating profit margin and 18.2% of net profit margin. Compared to 4Q2019, consolidated revenue was QoQ +0.2%; operating profit margin was QoQ -0.3%; net profit margin was QoQ +1.8%; EPS was QoQ +NT$0.51. 1Q2020 operating performance of SAS was enhanced by GWC’s contribution, foreign exchange gains, income tax benefits and etc, contributing to stable performance in 1Q2020 and EPS reached NTD 2.37.
GWC’s orders in 2Q2020 remain stable and the utilization rate of all plants maintain high due to COVID-19 stimulates hardware component demands for medical, remote working, long-distance teaching and customers also build safety inventory to prevent supply chain disruption. The outbreak of COVID-19 affects the supply chain, various industries and markets all around the world seriously. SAS faces low visibility on the solar products in 2Q and 3Q in 2020. SAS and GWC will closely and continuously monitor the evolvement of COVID-19 to mitigate risks under the ever-changing environment.
Regarding the future, the second half of the year 2020 is deeply influenced by the development of COVID-19. As long as the epidemic is contained, the global supply and demand balance will be restored, and the semiconductor market demands will bounce back rapidly by technology advancements like AI, IoT, 5G, Memories and etc, bringing optimistic future outlook to GWC. SAS achieves financial sustainability and improves operational performance after recognizing onerous contract provision of polysilicon LTA in 2019, which alleviated SAS from its last LTA burden, a healthier financial structure is expected from now on. Moreover, with the foundation of maintaining cash positive in solar business, sufficient cash combined with low debt ratio and solid financial structure, SAS will continuously expend the value investment to high potential businesses which brings the innovation growth to the corporate.
The sixth (2019) Corporate Governance Evaluation had been completed and the results were announced. SAS was once again awarded top 5% among all listed companies for 6 consecutive years. SAS’ outstanding performance made it one of the role models that fulfilled the corporate governance framework and social responsibility. GWC, the subsidiary, also awarded top 5% in this evaluation – an unparallel achievement that both the parent company and its subsidiary were bestowed with such honor, demonstrating SAS Group’s dedication in corporate governance and its superior performance.