ASRock Industrial Computer (3515) investor relations material

Executive summary

• Q2 revenue declined YoY while net profit rose; H1 revenue and profit increased, but operating cash flow turned negative amid higher inventory and receivables.

Financial highlights

• Q2 revenue was NTD 10,108,808 thousand vs. NTD 12,018,000 thousand; net profit was NTD 796,090 thousand vs. NTD 512,755 thousand.

• H1 revenue was NTD 23,475,447 thousand vs. NTD 22,480,205 thousand; net profit was NTD 1,647,822 thousand vs. NTD 1,069,198 thousand.

• H1 gross profit was NTD 4,016,905 thousand, or 17% of revenue, vs. NTD 3,208,808 thousand, or 14%; Q2 gross margin was 20% vs. 14%.

• H1 operating income was NTD 1,973,052 thousand vs. NTD 1,412,292 thousand; Q2 operating income was NTD 978,833 thousand vs. NTD 691,293 thousand.

• H1 net profit attributable to parent shareholders was NTD 876,501 thousand vs. NTD 851,878 thousand; basic EPS was NTD 7.10 vs. NTD 6.89; Q2 basic EPS was NTD 2.96 vs. NTD 3.31.

Segment performance

• Operations are managed as one operating unit, focused on R&D, design and sales of products including motherboards.

• H1 goods revenue was NTD 23,442,518 thousand vs. NTD 22,423,443 thousand; service revenue was NTD 32,929 thousand vs. NTD 56,762 thousand.