Tue, May 08, 2018 - Page 11 News List

King Yuan profit falls to its lowest level in six years

Staff writer

IC testing service provider King Yuan Electronics Co (京元電) on Friday last week reported its lowest profit in six years due to falling revenue and unfavorable foreign-exchange rates.

Net profit at the Jhunan Township (竹南), Miaoli County-based company decreased 37.9 percent year-on-year to NT$348.2 million (US$11.7 million) in the first three months of this year.

Earnings per share fell to NT$0.29, the lowest since NT$0.11 in the first quarter of 2012.

That compared with NT$0.48 in the first quarter of last year, a company financial statement showed.

Operating profit plunged 48.9 percent year-on-year to NT$478.6 million on the back of revenue that was down 5.9 percent at NT$4.58 billion.

Gross margin and operating margin also fell to 23.15 percent and 10.44 percent respectively, the statement showed.

King Yuan did not provide an explanation for its falling profits.

Analysts attributed the firm’s first-quarter performance to weakness in the Chinese smartphone market and the appreciation of New Taiwan dollar against the greenback, predicting that sales would post stronger growth this quarter amid recovering demand and that the momentum could continue into next quarter.

The company, which counts Intel Corp, MediaTek Inc (聯發科) and China’s Hisilicon Technologies Co (海思半導體) among its customers, spent NT$1.96 billion on capital expenditure last quarter, up from NT$1.16 billion the previous quarter, as it continued its capacity expansion in Taiwan and China.

At a groundbreaking ceremony for the company’s third plant in Miaoli County’s Tongluo Industrial Park (銅鑼科學園區) on April 23, King Yuan chairman Lee Chin-kung (李金恭) said that he was positive about this year in light of the sustained growth in the global semiconductor industry, fueled by demand for mobile devices, automotive electronics, artificial intelligence and high-performance computing applications.

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