Total revenue reached approximately NTD1,148.81 million
Revenue from the trading of used SME and parts increased by approximately 41.0% to approximately NTD 590.66 million
Basic earnings per share were NTD11.22 cents
Q3 Results Highlights
HONG KONG, Nov. 10, 2022 /PRNewswire/ -- Genes Tech Group Holdings Co. Ltd ("Genes Tech Group" or "The Group", Stock Code: 8257.HK) announces its Q3 results for the nine months ended 30 September 2022 ("During the period"). During the period, the Group recorded the total revenue of approximately NTD1,148.81 million. Total comprehensive income for the period attributable to owners of the Company amounted to approximately NTD103.65 million. Basic earnings per share were NTD11.22 cents.
During the period, revenue from the turnkey solutions amounted to approximately NTD558.15 million, accounting for approximately 48.59% of the Group's total revenue. The revenue from trading of used SME and parts amounted to approximately NTD590.66 million, representing an increase of approximately 41.0% as compared to the corresponding period of last year, accounting for approximately 51.41% of the Group 's total revenue. During the period under review, revenue from the domestic business in Taiwan accounted for approximately 71.87% of the Group's total revenue.
Since the second half of 2022, because of the Ukrainian crises, global inflation and Mainland China's epidemic control coupled with persistent variables such as rising taxes and interest rates as well as the weakening end market for semiconductor consumption, industry players along the supply chain for semiconductor production and sales are facing varying degrees of pressure for destocking. World Semiconductor Trade Statistics ("WSTS") has revised downwards its forecast of the scale of global semiconductor market for the year from the originally expected US$646.5 billion to US$633.2 billion and of the growth rate from 16.3% to 13.9%. Meanwhile, the market growth rate in 2023 is expected to be lowered from 5.1% to 4.6%. The Market Intelligence & Consulting Institute ("MIC") estimated the global semiconductor market size in 2022 to be US$605.6 billion, growing at a rate of 8.9%. Looking forward to 2023, the global market size is forecast to be US$608.6 billion, growing at a rate of 0.5%, and is distinctively lower as compared to the growth rate of 26.2% for 2021. On the other hand, the slowdown of the semiconductor industry has therefore affected the demand for capital expenditures from enterprises. IC Insight has revised downwards its capital expenditure forecast for semiconductors worldwide for 2022 from US$190.4 billion announced at the beginning of 2022 to US185.5 billion and the expected growth rate from 24% to 21%.
Mr. Yang Ming-Hsiang, Chairman and Chief Executive Officer concluded: "In general, affected by factors such as the Russian-Ukrainian conflict, global inflation and Mainland China's epidemic control, rising taxes and interest rates, resulting in a gradual slowdown in the growth momentum of the semiconductor industry in the second half of 2022. Looking forward to 2023, geopolitical influence will continue to loom over the semiconductor industry. After the passing of the "CHIPS and Science Act" in August, the United States advocated the "CHIP 4" alliance formed by the United States, Taiwan, South Korea and Japan, and thereafter the most stringent prohibition so far for semiconductor export was introduced in October, As a result, semiconductor industry players have to reassess the business risks of operating in the Mainland China market and to plan for different situations. In response to changes in the market environment, the Group will more actively seize the development opportunities, and strives to keep up with the research and development of investment products and technological improvement, so as to enhance the core competitiveness of the Group and create long-term value for shareholders.
About Genes Tech Group Holdings Co. Ltd (Stock Code: 8257.HK)
Genes Tech Group Holdings Co. Ltd is turnkey solution provider and exporter of used SME and parts in Taiwan. Since the commencement of its business in 2009, the Group mainly engaged in providing turnkey solution of used SME and parts to its customers and modifying and/or upgrading the semiconductor equipment of its production systems according to customers needs. In addition, the Group is also engaged in the trading of SEM and parts. The SME and parts supplied by the Group included furnaces, clean tracks and other related items, which were used at the front-end of the semiconductor manufacturing process, wafer fabrication such as deposition, photoresist coating and development, and these were extensively applied in mobile phones, game consoles, DVD players, automotive sensors and other digital electronic products.
