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WPG (TWSE:3702) Reports 2020 Consolidated Sales, Net Income, EPS, and Operating Cash Flow Hitting Record High. Consolidated Sales and Net Income Achieved Double-Digit Growth 15.6% and 25.9% YoY, Respectively. EPS was NT$4.77.

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WPG (TWSE:3702) Reports 2020 Consolidated Sales, Net Income, EPS, and Operating Cash Flow Hitting Record High. Consolidated Sales and Net Income Achieved Double-Digit Growth 15.6% and 25.9% YoY, Respectively. EPS was NT$4.77.

 

2021/03/31

 

WPG, the largest distributor of semiconductor components in Asia Pacific, announces 2020 consolidated sales, net income, EPS, and operating cash flow hitting record high. Consolidated sales and net income achieved NT$609.886 billion, +15.6% YoY and NT$8.123 billion, +25.9% YoY, respectively. Operating Cash flow reached NT$17.825 billion. EPS was NT$4.77.

 

2020 key financial indicators Return on Working Capital (ROWC) and Return on Equity (ROE) were 9.5% and 12.6%, respectively.

 

The overall strong demand for semiconductor sensors, specifically laptops, PCs, mobile phones, communication components, servers, and cloud due to distance working and education as well as corporates’ continuous investment in digital transformation, are the major causes for record-high sales and net income. Our customers’ increasing demand for large-scale distributors’ supply chain management related added-value services including digitalization, smart warehouse, and logistics, also contributes to the growth.

 

Driven by 5G commercialization and IoT trends, application solutions in power, smart home and IoT related field continue to increase, laying solid foundation for future growth in sales. To provide better value-added service and increase market share, 60 application solutions were provided to our customers, including fields in Power (32), Consumer (8), Automotive (6), Smart Home (5), Wearable Devices (5), Communication (1), Computer and related applications (1), Industrial (1), AIoT(1) focusing on applications of battery charge management for fascial gun/ BLDC electric machine control air purifier solution/ medical 15W modular DC/DC power/ BLDC electric carrier solution/ dimmable LED 100W driver/ car air circulator fan/ electric bicycle controller/ 54W-BLDC wall-mounted heaters/ rapid test machine HMI for COVID-19/ 2D facial recognition/ automotive 8-port ethernet switch/ temperature and humidity node solution/ 3D face recognition E-Lock/ adaptive noise cancellation headphones/ True Wireless Stereo/ Gigabit-Capable PON/ AI image recognition.

 

While striving to increase profit and market share, WPG actively adopts ESG practices for sustainable development and announces the introduction of “Employee Stock Ownership Trust” (ESOT) to benefit employees and attract talents. Employees are encouraged to enroll the Trust by deducting certain amount of their salary to purchase company shares, where WPG offers matching amount as additional benefit. The ESOT is designed to assist employees with their retirements plans as well as to enhance ownership culture that results in the continued success of WPG. Over 90% of eligible employees have participated ESOT since the introduction in January 2021. The average percentage of monthly salary deducted is 6.8%.

 

WPG deeply believes that it is our talented employees that set us apart. We encourage our employees to become shareholders and business partners of WPG through ESOT with the aim to create a sense of ownership and to share WPG’s success directly. On the other hand, we believe improved compensation policy and employee benefit help advance WPG’s sustainable development.

 

Table: WPG Holdings Ltd. Consolidated Financial Statements for the year ended December 31, 2020 (In brief)

Units:NT$million

Income Statement

(year ended December 31, 2020)

 

Balance Sheet

(December 31, 2020)

Item

Amount

 

Item

Amount

Operating revenues

609,886

 

Current Assets

198,011

Cost of Goods Sold

(586,836)

 

Accounts receivables

111,610

Gross Profit

23,050

 

Inventories

57,100

Operating Expenses

(13,000)

 

Other assets

35,966

Operating income

10,050

 

Total Assets

233,977

Non-op Expenses

(162)

 

Current Liabilities

146,656

Profit Before Tax

9,888

 

Current Borrowing

70,402

Tax

(1,687)

 

Accounts payables

62,963

Minority & Others

(77)

 

LT Liabilities

18,643

Profit After tax

8,123

 

Total Liabilities

167,974

EPS - Common Stock (Note1)

4.77

 

Common Stock

16,791

Note1:Based on weighted average outstanding shares.

 

Total Equity

66,003

 

Cash Flow Statement

(year ended December 31, 2020)

Item

Amount

Income before Income Tax

9,888

Change in NWC

11,074

Operating cash inflow /(outflow)

17,825

Change in Capital Expenditure

(6,132)

Investment cash inflow /(outflow)

(9,095)

Change in Financial Debt

1,765

Cash Dividends

(4,145)

Financing cash inflow /(outflow)

(2,754)

Cumulative translation adjustments

(4,949)

Net Cash

1,027

Beginning cash balance

9,993

Ending cash balance

11,020

 

IR contacts:Cliff Yuan/ Zoe Peng

Tel:886-2-7712-5268 / 886-2-7712-5262

Email address:  ir@WPGholdings.com

Corporate website:  www.WPGholdings.com

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