ShunSin Technology (6451) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2023, was NT$3,493.8 million, down from NT$3,876.4 million year-over-year.

• Net income attributable to owners for the same period was NT$11.8 million, a significant decrease from NT$267.7 million year-over-year.

• Gross margin for the nine months was 14%, compared to 22% in the prior year.

• The company acquired 100% of Shengfan Suzhou for NT$579.2 million to expand into semiconductor packaging services.

Financial highlights

• Operating loss for the nine months was NT$164.6 million, compared to operating income of NT$220.9 million year-over-year.

• Basic EPS for the nine months was NT$0.11, down from NT$2.53 year-over-year.

• Cash and cash equivalents at September 30, 2023, were NT$6,431.7 million, down from NT$8,070.5 million at year-end 2022.

• Short-term borrowings increased to NT$5,212.4 million from NT$4,438.5 million at year-end 2022.

Outlook and guidance

• The company’s board approved the issuance of up to NT$2,500 million in new convertible bonds after the reporting period.

• Management expects no material impact from new or revised accounting standards effective in 2024.