Hsinchu, Taiwan, August 6, 2020 – Sino-American Silicon Products Inc. (SAS) held the Board meeting and approved 2Q2020 financial results today. SAS 2Q2020 totaled consolidated revenue of NT$15.04 billion, gross profit of NT$5.3 billion, operating profit of NT$4.04 billion, profit before tax of NT$4.2 billion, net income of NT$3.17 billion, net income attributed to the parent company of NT$1.52 billion, and EPS of NT$2.59, which not only turned from negative to positive but also had a great growth of NT$6.51 compared to EPS of -NT$3.92 in 2019 second quarter. From 2020, SAS financial structure is healthy with onerous write-off on polysilicon LTA in 2019. Moreover, the net income attributed to the parent company in 2Q2020 reached the third highest record! SAS’ semiconductor subsidiary, GlobalWafers (GWC) also concluded its second quarter with consolidated revenue of NT$13.7 billion, net income attributed to the parent company of NT$3.4 billion, EPS of NT$7.81, operating margin of 30.9%, and net profit margin of 24.8% hit the best record in the history! In overall, 2Q20 consolidated revenue increase 1.4% QoQ, gross profit increase 7% QoQ, operating profit increase 11.2% QoQ, net income attributable to the parent company increase 18% QoQ, and EPS increase NT$ 1.19 QoQ. 2Q20 profitability edged up and beat the last 3 quarters, reflecting its correct operation strategy in driving growth against headwinds.
As for SAS 1H20 financial result, consolidated revenues of NT$30.32 billion, decrease 11.3% YoY; gross profit of NT$10.35 billion, increase 23.5% YoY; operating profit of NT$7.74 billion, increase 36.2% YoY; EPS of NT$4.96, increase NT$5.72 YoY. Net income and net income attributed to the parent company achieved best ever record; gross profit, operating profit and EPS hit the second best too!
Today SAS board also passed the resolution to participate in the cash capital increase of privately placed common shares of Advanced Wireless Semiconductor Company (AWSC). After the capital increase, SAS will beneficially own 22.53% shareholding over AWSC and becomes its largest shareholder. AWSC also enthusiastically explores the next-generation semiconductor-GaN, while GWC also dedicates in GaN on SiC development, demonstrating synergy by complementing upstream and downstream materials. By forming a vertical strategic alliance, AWSC and SAS expect to collaborate in developing GaN products in order to quickly supply the key components of 5G, electric vehicles and other high-frequency and high-power products required for the next wave of industry and construct a competitive compound semiconductor industry chain in Taiwan as well as expand operation scale and improve operation performance.
Since the beginning of 2020, the wide-spreading COVID-19 has disrupted solar industry supply chain, resulting in suspending power plant construction, raw material shortage, and dropping market demands and prices. Many nations consider solar a benefactor in COVID-19 economic recovery packages, and launch various stimulus programs to accelerate the recovery of solar system installation. In view of the critical impact of global warming, various world-leading companies devote themselves to the social responsibility of environmental protection by adopting renewable energy, reducing industrial waste and carbon emissions; same emphases are also applied to the supply chain to advance the use of clean energy, making solar one of the major sources in renewable energy trading. In the future, SAS will become one of the driving forces to stimulate green economy and provide clean and sustainable energy in response to national energy transformation policy, SAS future growth is promising.