2023/02/21
LITEON Technology Reports 2022 EPS of NT$6.19, High-Performance Core Businesses Drive Profitable Growth, Demonstrating the Results of Transformation Strategies
LITEON Technology (2301-tw) today reported the fourth quarter consolidated sales of NT$43.1 billion, supported by solid growth from power management in cloud computing and automotive electronics. Thanks to the optimization of supply chain management and operational efficiency, the gross margin reached 19.5%, up 2.2ppt Y-o-Y; the operating margin was 7.7%, of that, the R&D expense, out of Operating ones, has accounted for 5% of the fourth quarter sales, up 30%Y-o-Y, mainly focus on the power management for cloud computing, 5G, automotive electronics and advanced opto-electronics semiconductor. The net profits in the fourth quarter were NT$3.8 billion with EPS of NT$1.68. Meanwhile, the Board of LITEON has approved a cash dividend of NT$3 per share for the fourth quarter. With the distributed cash dividend of NT$1.5 for the first half of 2022, the cash dividend for the whole year of 2022 will reach NT$4.5.
LITEON continues to demonstrate transformational growth strategies and operational improvement results, posting year 2022 revenue of NT$173.5 billion, up 5% Y-o-Y. The gross margin and operating margin were 19.2% and 8.7%; gross profits and operating profits reached NT$33.3 billion and 15.1 billion, up 9% and 16% Y-o-Y respectively. The net profits were NT$14.2 billion, with EPS of NT$6.19, posting record high annual profit margins and EPS. The increase in profit growth attributable to the result of implementing transformational strategies: in terms of operations, LITEON actively increased the proportion of high value core businesses, expanded revenue scale, and optimized operational efficiency; in terms of organizational culture, LITEON endeavored to develop a learning organization, strengthened employee benefits, implemented enterprise thinking mindset and the spirit of altruism. No matter in terms of business model or organizational culture, LITEON has transformed and evolved, driving profitable growth through strategic transformation.
“LITEON has initiated digital transformation since 2020, greatly increasing the proportion of high-growth and high-value core businesses, driving continuous expansion of revenue scale and optimization of profitability. In the past few years, LITEON has strategically developed new businesses such as EV charging, power management solutions for cloud computing, and 5G/IoT, which had delivered strong potential in 2022.
In the future, we will continue to expand R&D investment to develop medium-long term growth momentum, focusing on three major pillars: green data center, clean mobility, and efficient infrastructure, enabling self-developed and design capabilities to become LITEON’s competitive advantages.
In addition, for next generation products, LITEON will keep on working together with its supply chain partners to build green resilience. In 2022, LITEON had verified carbon footprint of the entire product line. With low-carbon design as the core, the next generation of products will reduce carbon emission by 5%. At the same time, LITEON aims to create its second growth curve by increasing the proportion of recycled materials, reducing the use of materials to benefit the environment, enhancing power conversion efficiency to respond to sustainable trend.
LITEON has demonstrated its long-term commitment to ESG and been highly recognized internationally. In 2022, it was once again included on the Dow Jones Sustainability Indices (DJSI) for twelve consecutive years and ranked among the 2022 DJSI world index and emerging markets index. It’s also been Included in the MSCI ESG Leaders Indexes for 9 consecutive years as well as received ‘Supplier Engagement Leadership’ from CDP for 2 consecutive years,” said Mr. Anson Chiu, President of LITEON Technology.
In the fourth quarter of 2022, the sales of core business of power management in cloud computing and automotive electronics continued to grow, up 31% and 48% Y-o-Y respectively. To concentrate on its core business for long-term development, LITEON has completed the business transfer of the Image Business at the end of 2022. Looking forward, in the first quarter of 2023, it is expected that high-growth and high-value core businesses will grow steadily; product mix of the IT&CE Business will continue its optimization and diversification. As for 2023, the overall R&D capacity will keep expansion; sequential growth from high-value businesses such as power management solutions of cloud computing, EV charging solutions, automotive lighting, ADAS modules, 5G small cell stations and IoT solutions are expected to enhance overall operating performance steadily.
Press Contact
Irene Chou +886-2-8798-2888 #6509
Corporate Brand Value Development Center
LITEONtech.PR@liteon.com
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