Lotes (3533) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was NT$24.48bn, down from NT$27.10bn in 2022; net profit was NT$5.73bn versus NT$6.41bn.

• Cash and cash equivalents rose to NT$13.13bn at year-end from NT$7.09bn; net cash from operating activities reached NT$9.13bn.

• Auditors issued an unqualified opinion; revenue recognition and inventory valuation were identified as key audit matters.

Financial highlights

• Revenue was NT$24,483,463 thousand in 2023 versus NT$27,099,134 thousand in 2022; operating cost was NT$13,002,401 thousand versus NT$15,161,454 thousand.

• Gross profit was NT$11,481,062 thousand, compared with NT$11,937,680 thousand; operating profit was NT$6,945,949 thousand versus NT$7,268,886 thousand.

• Net profit was NT$5,727,046 thousand versus NT$6,408,080 thousand; income tax expense was NT$1,793,447 thousand versus NT$1,780,487 thousand.

• Operating cash flow was NT$9,132,823 thousand versus NT$7,733,286 thousand; investing cash outflow was NT$2,769,566 thousand versus NT$3,686,111 thousand.

Segment performance

• Reportable operations are treated as one operating segment, with segment results, assets and liabilities consistent with the consolidated statements.

• Product revenue: DT NT$7.14bn, Server NT$7.21bn, NB NT$6.50bn, Strategic Projects NT$3.22bn and LINTES High Speed Cable NT$2.30bn in 2023.

• Mainland China generated NT$17.89bn of 2023 revenue, Taiwan NT$2.90bn and other markets NT$3.69bn; 2022 amounts were NT$19.63bn, NT$4.18bn and NT$3.28bn, respectively.