Achieved a 20-year high gross margin of 16.3% in the first three quarters, demonstrating a continuous increase in profitability

Innovative ultrasound technology will make its debut at the Healthcare+ Expo Taiwan 2023

Qisda (TWSE: 2352) today announced, to achieve the new vision of “High value-added business will contribute more than half of total profit by 2027”, Qisda actively strengthened its profitability, and the gross margin in the first third quarter reached a 20-year high of 16.3%. Looking forward to the fourth quarter, Qisda is optimistic that the supply and demand of the IT product market have gradually returned to order. Furthermore, the company plans to introduce innovative ultrasound technology for the first time at Healthcare+ Expo Taiwan 2023, deploying the long-term growth momentum in the medical business sector.

Qisda held an earnings conference on 13th November to explain the results for the first three quarters and the future outlook.

“The goal of the next stage is to make more than half of the profits contributed from high value-added business by 2027 and actively strengthen the profitability,” said Peter Chen, Chairman and CEO of Qisda. ”After achieving the goal of high value-added business account for more than half of the revenue in 2022.”

“Through lean, focus, and organizational optimization, Qisda has optimized the organization of the grand fleet in smart solutions and medical business since last year and accelerated to expand synergies through the optimization and reorganization of products and channels.”, said Joe Huang, President of Qisda.

As the display products continue to recover and expand in scale, coupled with the synergies generated by high-value-added businesses, Qisda’s gross margin has been on the rise for four consecutive quarters, with a gross margin of 16.6% in the third quarter, up by 2.2 percentage points, and 16.3% in the first three quarter, up by 2.3 percentage points, compared to the same period last year, both indicated a 20-year new high, operating income margin increased 0.3 percentage points, demonstrates continuous increase in profitability.

In terms of performance in each business group, in the third quarter, ITG revenue remained flat compared with the second quarter, of which the display revenue increased by 5%. Medical revenue increased by 2% and BSG revenue grew by 4%. However, NCG revenue decreased by 24% due to the impact of customer inventory adjustments.

Qisda will lead its affiliates to participate in Healthcare+ Expo Taiwan 2023 on November 30th. At this event, Qisda will debut innovative ultrasound-related technologies and showcase the latest achievements of more than 10 medical fleet members.

Qisda 2023 Q3 Financial Report Highlights:

Revenue: NTD 152.9 billion, down by 17% year-on-year.

Gross Profit: NTD 24.869 billion, a decrease of 4% year-on-year.

Gross Margin: 16.3%, an increase of 2.3 percentage points year-on-year, marking a 20-year high for the same period.

Operating Income: NTD 4.144 billion, down by 5% year-on-year.

Operating Income Margin: 2.7%, up by 0.3 percentage points year-on-year.

Net Income: NTD3.841 billion, a decrease of 62% year-on-year.

Net Income Attributable to Qisda: NTD 2.55 billion, down by 68% year-on-year.

Earnings Per Share (EPS): NTD 1.30.