Qisda delivered outstanding revenue results in the first quarter. With the benefits of the transformation layout of the High Value-Added Business and the information and technology business benefiting from increased commercial and industrial demand, the consolidated revenue for the 1st quarter grew by 30%, operating margin growth grew by 66% and net income attributable to the parent company grew by 808%. The gross margin, operating margin, and net profit margin have all increased, with EPS of NTD1.07, a record high in a single quarter for the past decade.

An online Qisda investor conference was held on the 13th to further explain the operating results for the 1st quarter and future outlook. The Board meeting held on the 11th passed the financial report for the 1st quarter and resolved the 2020 earnings distribution, with cash dividend of NTD1.5 per share. The distribution rate for this time is 59% based on closing price of NTD29.45 on the 13th, the dividend yield is approximately 5%.

Peter Chen, chairman of Qisda said: “Qisda continues to move towards the goal of value transformation. It has laid plans ahead of time for its four operational directions including optimizing current businesses, expanding the Medical Business, accelerating solutions, laying out 5G networking. By doing so, not only has revenue increased, but profitability has also gradually showed results, bringing positive contributions.”

As it is the Company’s determination to optimize its business, the new High Value-Added Business continues to grow as well as the positive contributions from outside the industry. Qisda’s profitability continued to increase in the 1st quarter, with remarkable performances of 3 rates and 3 increases: gross profit margin of 14.7%, up 1.3 percentage points from the same period last year; operating margin of 3.4%, up 0.8 percentage points from the same period last year; net profit margin of 5.1%, up 4 percentage points from the same period last year.

Revenue from the High Value-Added Business in the first quarter grew by 92% from the same period last year, accounting for 33% of revenue, and has maintained a level of 30%, moving towards the goal of 50%. Looking ahead to the 2nd quarter, the Medical Business continued to grow at a high level, while demand for other businesses also remained strong. However, stringent approaches must be taken to tackle supply chain challenges such as the pandemic, material storages, price increases and shipment tensions. In general, the outlook for revenue and profit is optimistic.

Summary of Qisda’s consolidated financial statements for 2021 Q1:

Turnover totaled NTD50.9 billion, up NTD11.7 billion from the same period last year, an annual increase of 30%.

Operating profit totaled NTD1,718 million, up NTD681 million from the same period last year, an annual increase of 66%

Gross margin was 14.7%, an annual increase of 1.3 percentage points

Operating margin was 3.4%, an annual increase of 0.8 percentage points

Net operating profit after tax totaled NTD2,609 million, up NTD2,217 million from the same period last year, an annual increase of 566%

Net income attributable to the parent company totaled NTD2,112 million, up NTD1,879 million from the same period last year, an annual increase of 808%

Basic earnings per share was NTD1.07