In pursuit of the new vision "Over Half of its Profits from High Value-Added Business by the Year 2027," Qisda Corporation is actively engaged in organizational optimization to achieve mutually beneficial outcomes. Following the merger of four subsidiaries including La Fresh to enhance organizational synergy, Qisda, with its medical business centered around BenQ Medical Tech, is forming a medical equipment grand fleet. In the realm of business solutions, MetaAge is also partnering with Brainstorm to accelerate the capture of business opportunities in the North American AI computing market.

On the 7th, Qisda held an online investor conference to discuss the operational results of the first half of the year and provide insights into the future. Qisda also continues to expand its sustainable influnences, achieving commendable results in sustainability awards during the first half of the year across Asia and Taiwan. These accomplishments include five consecutive years of being recognized as Asia’s Best Companies to Work For, receiving two Asia Responsible Enterprise Awards for the first time, and winning multiple Taiwan Sustainability Action Awards. In the first half of the year, six companies within the grand fleet collectively received recognition through 13 sustainability awards.

Qisda’s Chairman, Peter Chen, stated that revenues generated fromhigh value-added business of Qisda have maintained over 51% in the first half of the year, marking a pivotal step towards achieving the goal of profitability. He emphasized the strategy of "first grow, then strengthen" and affirmed the intention to move forward towards exceeding the target of more than half of the profit coming from its high value-added business. In addition to boosting gross margins and expanding the economic scale of high gross margin businesses, Qisda is actively increasing stakes in well-performing affiliated enterprises and systematically implementing the "good-card reshuffling" strategy to optimize organizational synergy for mutual benefits.

Qisda ‘s President, Joe Huang, pointed out that through organizational optimization and focus, businesses with similar natures can better integrate resources, accelerate synergy, and contribute to the overall competitiveness of the parent company. The current adjustment within the medical materials sector will expedite the formation of a medical materials grand fleet and jointly expand into Asian markets. The business solutions segment will also better leverage its role as a partner in enterprise IT and OT intelligence, assisting customers in accelerating their digital transformation journey. 

This medical organizational adjustment is aimed at maximizing synergy within the medical sector, propelling the future growth of the group’s product lines in fields like dialysis and medical aesthetics. Therefore, BenQ Medical Tech has been positioned as the flagship in the medical materials sector, acquiring a 40% stake in K2 International Medical. Following the organizational optimization, BenQ Medical Tech and K2 International Medical will collaborate to expand medical material products and explore international markets, thereby accelerating the enhancement of synergy to bolster the group’s competitiveness in the medical materials domain.

The Business Solutions Group operates with dual axes: IT (MetaAge) and OT (DFI). It collaborates with global enterprise partners to facilitate digital transformation and enhance operational efficiency. In this organizational optimization, MetaAge is joining forces with Brainstorm to expand into the North American AI computing market, while DFI continues to provide CPU/GPU intelligent computing key modules to global OT solution providers and Brainstorm.

Regarding Qisda’s performance in the first half of the year, the inventory amount in the second quarter was NTD35.8 billion, showing a year-on-year decrease of NTD20.4 billion and a quarterly decrease of NTD3.8 billion. The inventory amount has continuously decreased for five consecutive quarters. This reduction is attributed to the ongoing optimization and enhancement of the IT business and the sustained strength of high value-added new ventures. In the second quarter, the gross margin reached a milestone by surpassing 16% for the first time in recent years, achieving 16.3%. This achievement continued into the first half of the year with a margin of 16.1%, both setting new highs for single-quarter and same-period performance in the past twenty years.

Looking ahead to the second half of the year, the market supply and demand for IT products have gradually returned to order. However, challenges such as inflation, interest rate hikes, geopolitical tensions, banking crises, and fluctuating market sentiments have prevented a clear recovery in the overall economic environment. The recovery is expected to be slow due to these factors. Within Qisda, the performance of hospital operations is notably healthy and on the path to recovery. While there might be inventory adjustments in the business solutions and networking and communication businesses, long-term digital transformation and infrastructure needs remain promising.

Qisda’s Business Summary for the Second Quarter of 2023:

 High value-added business revenue reached NTD26.4 billion, a quarterly increase of 2%, accounting for 51% of total revenue. Both the gross margin and operating income saw dual growth.

 The   from the Medical Group increased by 7% for the second quarter. Both revenue and gross margin, as well as operating income, increased compared to the previous quarter and the same period last year.

 The revenue from the BSG experienced a 1% increase for the quarter. Both the gross margin and operating income saw a slight quarterly decrease.

 The revenue from the NCG decreased by 2% for the quarter. Both the gross margin and operating income experienced a marginal quarterly decrease.

 The revenue from the IT Group increased by 3% for the quarter. The gross margin and operating income have continuously risen for three consecutive quarters, with the gross margin also higher compared to the same period last year.

Qisda’s Financial Report Highlights for the First Half of 2023:

Revenue: NTD102.6 billion, a year-on-year decrease of 17%.

Gross Profit: NTD16.492 billion, a year-on-year decrease of 4%.

Gross Margin: 16.1%, a year-on-year increase of 2.2%, marking a twenty-year high for the same period.

Operating Income: NTD2.793 billion, a year-on-year decrease of 22%.

Operating Income Margin: 2.7%, a year-on-year decrease of 0.2%.

Net Income: NTD2.292 billion, a year-on-year decrease of 17%.

Net Income Attributable to Qisda: NTD1.348 billion, a year-on-year decrease of 11%.

Earnings Per Share (EPS): NTD0.69.