SINBON Electronics : 2022 Audited Financial Report and Apportionment of Dividend

SINBON (TSEC#: 3023) Board of Directors meeting was held in March 9th, 2023 and has released the 2022 audited financial reports which show the net profit after tax of NT$2.881 billion and EPS of NT$12.22. The board has decided to pay cash dividend of NT$8.50 per share and the payout ratio is 69.56%.

The audited consolidation sales revenue in 2022 is NT$30.575 billion which has grown by 19.76% over previous year at NT$25.531 billion. The consolidation gross profit rate is 25.29% which is an increase of 0.19% over previous year at 25.10%. The consolidated net profit before tax is NT$3.326 billion which is a growth of 19.32% over previous year at NT$2.788 billion. The consolidated net profit after tax is NT$2.881 billion which is a growth of 23.55% over the one in previous year at NT$2.332 billion. EPS after tax is NT$12.22 which is an increase of NT$2.22 over previous year at NT$10.00. Overall result of SINBON in 2022 again outstands the result in 2021 and the company has been in a growth since 2009 for 14 consecutive years. The sales revenue, net profit after tax and EPS have surpassed the record highs and, are the best records in company history since SINBON was established.

Upon SINBON's overall quarterly operating performance in 2022, the consolidated sales revenue in the fourth quarter was NT$8.004 billion that was a decrease of 1.70% over the one in the third quarter at NT$ 8.132 billion, while it was an increase of 23.72% over the one in the same period in 2021 at NT$6.470 billion. The consolidated gross profit rate was 24.60%, that was a decrease of 0.70% over the one in the third quarter at 25.30%, however, it was an increase of 1.47% over the one in the same period of 2021 at 23.13%. The consolidated operating net profit was NT$789 million, which was a decrease of 12.16% over the one in the third quarter at NT$895 million, and it was an increase of 66.17% over the one in the same period 2021 at NT$475 million. The net profit after tax was NT$597 million which was decreased of 32.60% over the one in the third quarter at $845 million, however, it was an increase of 33.58% over the same period in 2021 at NT$447 million. The net profit per share after tax was NT$2.51.

According to SINBON, the consolidated gross profit margin in the fourth quarter 2022 decreased by 0.70% compared with the third quarter, which was mainly due to the impact of product mix. The average gross profit margin in green energy, communications and electronic peripherals fields were lower than the averages, which had accounted for 51.99% of company sales revenue in the fourth quarter. The consolidated non-operating profit and loss was affected by the appreciation in NT dollar and RMB, and the consolidated non-operating profit in the fourth quarter decreased by NT$269 million compared with the third quarter and this resulted in a 32.60% decrease in net profit after tax in the fourth quarter compared with the third quarter. In the fourth quarter, the consolidated gross profit margin increased by 1.47% compared with the same period last year, and this is due to the cost of raw materials rose sharply in the fourth quarter in 2022. After the supply of raw materials gradually returned to normal this year, the gross profit margin of each field has returned to the previous gross profit margin range. Although the consolidated operating expenses of the four seasons increased by 15.47% compared with the same period last year, which was lower than the sales revenue growth rate of 23.72%, the operating expense ratio decreased by 1.05% compared with the same period last year. Overall, under the situations of rebound of gross profit rate and decrease of expenses, the net profit in fourth quarter has increased by 33.58% compared with the same period last year, which was better than the growth rate of sales revenue.

Due to pessimistic global economy prospects, the manufacturing industry is facing the problems of inventory backlog and the challenge of eliminating it. Although the inventory amount of SINBON (upon 31st December 2022) has reached to NT$12.256 billion, the contracted liabilities on raw materials, represents the company's future shipments and fulfillment of the contract, was mostly paid by the prepayment from customers and this was accounted for 39.91% of the total inventory. The risk of raw material inventory has been borne by the clients, and the client's demand has had in hand, which can reduce the company risk of inactive inventory in the future. At present, the supply chain has gradually returned to normal. In order to optimize inventory management, the number of days of inventory turnover will be reduced every quarter. The amount of contract liabilities accounts for 25.54% of total liabilities, which the debt ratio is 59.14%. If contract liabilities are excluded, the debt ratio can be down to 51.88 %.

Looking forward to SINBON's future operations, it still takes the integration of high-value-added cable modules as its company development direction. In response to the trend of industrial development and the customer product development, SINBON continuously provides value-added integrated services and high-quality products to customers. The accumulative consolidated sales revenue for the first two months in 2023 was NT$5.615 billion, which was increased by 25.09% over the same period last year. This year, the company will work forward to pursue double-digit growth.