WPG (TSE:3702) Reports Its Reported Its Record High in Consolidated Sales, Operating Income, Net Income and Earnings Per Share of 2018. EPS was NT$4.21

WPG (TSE:3702) Reports Its Reported Its Record High in Consolidated Sales, Operating Income, Net Income and Earnings Per Share of 2018. EPS was NT$4.21

2019/1/30

Contributed from steady growth in core products such as 3C and automotives, and benefited from successful deployment in new applications such as Internet of Things(IoT), Artificial Intelligence(AI), cloud storage and high-performance computing, with optimizing product portfolios and efficient expense control, WPG, the largest distributor of semiconductor components in Asia announces its record high in consolidated sales, operating income, net income and earnings per share of 2018, reached NT$545.124 billion, NT$10.568 billion and NT$7.432 billion, represented 2.4%, 6.2% and 1.7% growth year over year respectively, especially operating income surpassed the NT$10 billion mark. EPS was NT$4.21 per share.

With increased profit and improving operating efficiency, 2018 key financial indices: Return on Working Capital (ROWC) and ROE was 9.6% and 14% respectively.

Based on the exchange rate assumption of 1 US dollar to 30.6 NT dollars, management guides the total sales of first quarter 2019 will be between NT$117 billion and NT$123 billion, with the gross margin in the range of 4.1%~4.3% and the operating margin between 1.65%~1.85%.

In the fourth quarter of 2018, driven by the IoT, 43 application solutions were provided in the fields of Automotive (16), Power (12), Smart City (10), Smart Home (2), Security (1), LED (1), Wearable Devices (1) focusing on applications of ADAS/automotive ethernet/tire pressure monitoring/lane departure warning system/automotive current detector/ethernet AVB/video compression/daytime running lamp with EMC standards/new electric vehicle charging/single-circuit frequency wireless charging/ BMS/smart door lock/smart attendance machine/localization and navigation system for robot vacuum/smart voice/ultra-low power BLE/dimmable buck controller for LED.

Table: WPG Holdings Consolidated Management Financials for the year ended December 31, 2018. (In brief)

Units：NT$million

Income Statement (year ended December 31, 2018)			Balance Sheet (December 31, 2018)
Item	Amount		Item	Amount
Operating revenues	545,124		Current Assets	180,771
Cost of Goods Sold	(521,490)		Accounts receivables	98,502
Gross Profit	23,634		Inventories	64,207
Operating Expenses	(13,066)		Other assets	15,043
Operating income	10,568		Total Assets	195,814
Non-op Expenses	(1,335)		Current Liabilities	126,268
Profit Before Tax	9,233		Current Borrowing	62,620
Tax	(1,747)		Accounts payables	52,656
Minority & Others	(53)		LT Liabilities	13,366
Profit After tax	7,432		Total Liabilities	140,940
EPS (Note1)	4.21		Common Stock	16,791
Net book value per share (Note 1)	32.40		Total Equity	54,875

Note1：Based on weighted average outstanding shares.

Cash flows (year ended December 31, 2018)
Item	Amount
Income before Income Tax	9,233
Change in NWC	(7,620)
Operating cash inflow /(outflow)	(3,277)
Investment cash inflow /(outflow)	43
Change in Financial Debt	5,999
Cash Dividend	(4,380)
Financing cash inflow /(outflow)	1,607
Cumulative translation adjustments	1,672
Net Cash	44
Beginning cash balance	7,098
Ending cash balance	7,142

1Q19 Forecast
Item	Amount
Revenue	117,000	~	123,000
Gross Profit	4,797	~	5,289
Gross Margin	4.10%	~	4.30%
Operating Expenses	2,867	~	3,014
Operating Income	1,930	~	2,275
Operating Margin	1.65%	~	1.85%
Profit Before Tax	1,372	~	1,715
Profit After Tax	1, 075	~	1,349
EPS (NT$) (Note 1)	0.64	~	0.80

Note1：Based on weighted average outstanding shares.

IR contacts：Cliff Yuan/ Zoe Peng

Tel：[phone]

Email address: [e-mail]

Corporate website: www.WPGholdings.com