Fositek (6805) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was NT$5,643,893 thousand and net income was NT$627,958 thousand, both above 2022.

• Auditors issued an unqualified opinion; key audit matters were slow-moving inventory valuation and hub-warehouse revenue recognition.

Financial highlights

• FY2023 gross profit was NT$1,317,808 thousand and operating income was NT$880,668 thousand, versus NT$1,165,801 thousand and NT$774,815 thousand in 2022.

• Q4 revenue was NTD 1,778m, up 13.72% QoQ and 46.85% YoY; net income was NTD 176m, down 11.21% QoQ and up 17.01% YoY.

• Operating cash flow fell to NT$1,218,418 thousand from NT$2,317,906 thousand; year-end cash and equivalents rose to NT$5,898,213 thousand from NT$3,840,687 thousand.

• FY2023 non-operating income declined to NTD 30m from NTD 60m; exchange results shifted from NTD 42m income to NTD 5m loss.

• An NT$18,086 thousand reversal for inventory valuation was recorded in 2023; reported cost of goods sold was NT$4,326,085 thousand.

Segment performance

• Foldable-phone revenue was NTD 4,633m, up from NTD 3,889m; its share of revenue increased to 82.1% from 77.6%.

• NB revenue was NTD 969m versus NTD 1,025m; other product revenue was NTD 42m versus NTD 100m.

• One reportable segment covers computer and mobile-phone components, aggregated due to similar gross margins and expected cost rates.