Wende (6761) announced its first-quarter operating financial report yesterday (11). The revenue for the first quarter was 433 million yuan, a year-on-year decrease of 9.21%, and the net profit was 24.74 million yuan. Profit and earnings per share have both declined compared to the same period last year, mainly due to the weak global economic momentum, Taiwan’s exports continue to slump, and customers’ destocking. The outlook for the second quarter is still conservative. It is expected that the customer’s inventory will be depleted to a healthy level in the third quarter. , the operation is expected to get out of the trough and return to the normal operation track.
Wende pointed out that the decline in revenue presented in the financial report for the first quarter of this year was not only due to the prosperity of the general environment and industry, but also due to factors such as the reduction in the number of working days during the Lunar New Year and the destocking of customers by customers; the gross profit rate in the first quarter fell to 28%, compared with In the same period last year, the gross profit margin fell by 2% from 30%; the low gross profit margin was mainly due to the sluggish loss of the listed inventory. In addition, in order to digest the inventory and maintain the healthy level of the inventory, part of the inventory was cleared at a reduced price, which also had a certain impact on the decline in the gross profit margin. . Due to the decrease in gross profit margin in the first quarter of this year and the recognition of exchange benefits due to the depreciation of the Taiwan dollar in the same period last year, the profit decreased significantly compared with the previous year.
In the face of a downturn in the market and a sluggish industrial environment, Wende is more active in strengthening inventory management, integrating customer needs, and digesting inventory. The management team emphasized that in the future, the downward trend of stable inventory will become more and more obvious, and they are confident that the gross profit margin will increase quarter by quarter, and the profit performance will also get better and better.
In order to accumulate new growth momentum after the recovery of the economy, amidst the global market downturn in 2023, Wende will continue to increase its layout in domestic and foreign markets, as well as new products and testing service projects, to expand the advantages of a complete one-stop EMC certification service; for example, Expand investment in the South Korean market, plan to conduct over-current/over-voltage, ESD and lightning test services in South Korea, and start purchasing related test equipment to provide one-stop service integration services to local customers. The market is locked in new energy and Automotive related application industries.
At the same time, Wende is also optimistic that the infrastructure will gradually start to pick up after the unblocking, and the demand will gradually rise. This year, the industrial computer market is expected to grow stronger. Therefore, Wende’s R&D team is stepping up the development of related new products, especially a small amount A variety of new products with high added value will add new momentum to the growth of Wende in Q3.
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