Memory manufacturer Winbond Electronics, a major memory manufacturer, bucked the trend and fell despite the surge in Taiwanese stocks on the 16th. The main reason was due to the 2020 third quarter financial report released last week. The single-quarter net profit after tax was NT$331 million. Yuan, a sharp decrease of 53.3% from the second quarter, and a decrease of 44% from the same period in 2019, with EPS per share reaching 0.08 yuan. Cumulatively, the net profit after tax in the first three quarters was 954 million yuan, a decrease of 35.06% compared with the same period in 2019, and EPS per share came to 0.24 yuan. Under this circumstance, the stock price of Winbond continued to be impacted. The closing price on the 16th reached 17.05 yuan, a decrease of 0.35 yuan, or 2.01%.
According to the third quarter consolidated financial report released by Winbond Electronics, including Nuvoton Technology and other subsidiaries, due to the increase in management, marketing and research and development expenses, although the revenue in the third quarter was NT$16.034 billion, an increase from the second quarter 25.76%, also an increase of 19.47% compared with the same period in 2019. Among them, the gross profit margin was 26.96%, a decrease of 2.34 percentage points from the second quarter, and an increase of 0.47 percentage points from 2019. The net profit after tax reached 331 million yuan, a decrease of 53.3% from the second quarter, and a decrease from the same period in 2019. 44%, EPS per share is 0.08 yuan.
Analyzing its financial statements for the current quarter, after the subsidiary Nuvoton completed the acquisition of Japan's Panasonic Semiconductor in September, accounting immediately confirmed a loss of NT$254 million from Japan's Panasonic Semiconductor that month. Since Winbond holds 59.8% of Nuvoton's equity, this was reflected in Winbond's consolidated financial report for the quarter.
In fact, when Nuvoton acquired Japan's Panasonic Semiconductor, the market discovered that since 2014, Panasonic Semiconductor has continued to reform and slim down, including transforming from IDM to Fab─lite and continuing to sell factories, hoping to use the light asset model Stop losing money. Unfortunately, these methods did not work. Although Panasonic Semiconductor's revenue as of 2018 was 92.2 billion yen (approximately NT$25.8 billion), its net loss after tax was as high as 23.5 billion yen (approximately NT$6.6 billion). . Such continuous losses finally made Panasonic decide to withdraw from the semiconductor industry, which also contributed to the acquisition of Nuvoton.
After the acquisition of Panasonic Semiconductor, how Nuvoton dealt with related losses became the focus of subsequent attention. Market participants pointed out that although Nuvoton acquired Panasonic Semiconductor's operating rights, patents, production equipment and personnel through mergers and acquisitions, it usually takes a period of time for Japanese semiconductor companies to make adjustments. If the merger and acquisition is completed in September, Winbond Electronics will Then the accounting confirmed a loss of NT$254 million, which will be a big pressure for the whole year, and it is worthy of continued observation.
(first picture source: Winbond)
