Patec Precision Industry (2236) H2 2024 earnings summary

Executive summary

• Consolidated financial statements for 2024 and 2023 were audited with an unqualified opinion, confirming fair presentation in accordance with IFRS and local regulations.

• Major event: Acquisition of 93.05% of Broadway Industrial Group Limited (BIGL), expanding into HDD actuator arms manufacturing and international markets.

• Key audit matters included authenticity of sales revenue due to customer concentration and significant revenue changes, and the accounting for the BIGL acquisition.

Financial highlights

• Operating revenue for 2024 was NT$1,782,271 thousand, down slightly from NT$1,817,189 thousand in 2023.

• Net profit for 2024 was NT$325,649 thousand, up from NT$126,652 thousand in 2023.

• Total assets increased to NT$9,393,202 thousand at year-end 2024 from NT$2,494,211 thousand in 2023, mainly due to the BIGL acquisition.

• Cash and cash equivalents rose to NT$1,622,122 thousand from NT$695,346 thousand.

• Earnings per share (EPS) for 2024: Basic NT$7.38, Diluted NT$7.23 (2023: Basic NT$2.93, Diluted NT$2.80).

• Bargain purchase gain of NT$681,696 thousand recognized from the BIGL acquisition.

Outlook and guidance

• The Group plans to raise long-term funds, including private placement of shares and convertible bonds, to reduce financial leverage and support growth.

• Management is monitoring compliance with financial covenants and negotiating with lenders to revise terms as needed.