Net revenue of the Company amounted to NT$7.58 billion in 2019, a decrease of 21.4% from NT$9.64 billion in 2018. Net income attributable to shareholders of the parent came to NT$631 million, down 6.2% year-over-year. Earnings per share was NT$3.02. However, the Company strove to lower production cost, improve production yield, enhance output efficiency and exercise strict control over expenses. As a result, gross profit rose significantly from 20.67% to 22.93% and the improved profitability mitigated the impact of decline in revenue. The drop in revenue was mainly caused by two factors. Firstly, the US-China trade war and measures implemented by the U.S. on certain Chinese enterprises influenced the final demand. In response to the situation, we executed stricter credit management policy to secure a stable cash level for carrying us through the time of uncertainty, which ultimately impacted on some customer orders. Secondly, in response to the solar industry’s increasing operational risks and low potential returns, we made strategic adjustments on our PV backsheet business and terminated our involvement in the industry. These two factors contributed to the significant decrease in revenue on a year-over-year basis.
Confronted by market uncertainties and adverse foreign exchange trends for exporters, we see a promising growth in high-frequency, high-speed transmission materials from 5G application expansion. The overall operation is expected to return to growth.
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