With Qisda’s Grand Fleet continued effort to strengthen the value transformation plan, the share of revenue from the new value transformation business reached 34%, moving towards the goal of earning more than half of its revenue. Earnings also showed growth, with consolidated revenue of NTD57.1 billion in the 4th quarter, an annual increase of 25%; operating margin totaled NTD2,091 million, an annual increase of 55%; net income attributable to the parent company totaled NTD1,761 million, an annual increase of 178%, with EPS for the single quarter reaching NTD0.9.

With the injection of new network communication members, smart solutions, and Medical Business, Qisda delivered excellent results in its revenue and profit in the midst of the COVID-19 outbreak. Last year’s consolidated revenue totaled NTD191.7 billion, an annual increase of 13%; operating margin totaled NTD6.613 billion, an annual increase of 6%; and net income attributable to the parent company totaled NTD4.988 billion, an annual increase of 40%, with EPS for the year totaling NTD2.54, the second highest in the past decade.

An online Qisda investor conference was held on the 25th to further explain the operating results for the 4th Quarter of the previous year and future outlook.

Qisda Chairman Peter Chen said that the value transformation plan has made a contribution to the steady growth in the business, and the Company’s operating structure and profit structure are very different now compared to the past three years. Compared to 2020 and 2017 when the all-year EPS exceeded NTD2.5, more than half of Qisda’s profit last year came from the performance of operating margin. Coupled with the investment profits from outside the industry accounted for under the equity method, the Company was able to deliver the second highest EPS performance in a decade despite the challenges of the pandemic.

Peter Chen pointed out, although the Medical Business was impacted by the pandemic in the first quarter of last year, medical services have gradually stabilized. The growth for the Medical Business this year will be driven by sufficient pandemic prevention supplies such as disinfectant, alcohol for disinfection and masks, hemodialyzers being licensed by China’s NMPA (formerly known as CFDA), and Nanjing BenQ Medical Center being qualified as an Internet hospital.

In terms of other businesses, as a result of the continuous effort to construct 5G infrastructure, demand for digital transformation in sectors remains strong and will become the new normal after the pandemic passes. In addition, Qisda has also completed the public acquisition of common stock of Sysage Technology, increasing the total shareholding to 51%. This will accelerate the consolidation effect and increase Qisda’s investment benefits. However, stringent approaches must be taken to tackle supply chain variables such as the pandemic, material storages, price increases and shipment tensions.

Qisda has been proactively promoting the value transformation plan. Through the strategy of the Grand Fleet, experts in the fields of healthcare, smart solutions and network communications have been gathered to strive for the integration of products and channels. The High Value-Added Business accounted for 31% of Qisda’s revenue in the 3rd quarter last year and further increased to 34% in the 4th quarter, reaching a total of annual increase of 28%. This shows that the Business is moving towards reaching the goal of earning more than half of its revenue.

Summary of Qisda’s consolidated financial statements for 2020 Q4:

Turnover totaled NTD57.1 billion, representing a quarterly increase of 11% and an annual increase of 25%

Operating profit totaled NTD2.091 billion, representing a quarterly increase of 2% and an annual increase of 55%

Gross margin was 14.3%, an annual increase of 1.5 percentage points

Operating margin was 3.7%, an annual increase of 0.8 percentage points

Net operating profit after tax totaled NTD2,284 million, an annual increase of 177%

Net income attributable to the parent company totaled NTD1,761 million, an annual increase of 178%

Basic earnings per share was NTD0.9