ShunSin Technology (6451) Q2 2024 earnings summary

Executive summary

• Revenue for the first half of 2023 was NT$2,131 million, down 15% year-over-year; Q2 revenue was NT$1,196 million, nearly flat from Q2 2022.

• Net income for the first half of 2023 was NT$3 million, a significant decrease from NT$134.6 million in the same period last year.

• Gross margin for H1 2023 was 18%, down from 18% in H1 2022; Q2 gross margin remained at 20%.

• Basic EPS for H1 2023 was NT$0.03, compared to NT$1.27 in H1 2022.

Financial highlights

• Operating income for H1 2023 was NT$44.4 million, down from NT$418.5 million year-over-year.

• Operating expenses for H1 2023 totaled NT$423.3 million, up slightly from NT$418.5 million in H1 2022.

• Cash and cash equivalents as of June 30, 2023, were NT$6,614 million, down from NT$8,070 million at year-end 2022.

• Short-term borrowings stood at NT$4,539 million, and long-term borrowings at NT$1,267 million as of June 30, 2023.

Outlook and guidance

• Management expects no significant impact from newly adopted or upcoming accounting standards.

• The company continues to expand its business scope, including the acquisition of a 100% stake in Shengfan Semiconductor (Suzhou) to enhance packaging and testing services.