RESULTS OF OPERATIONS
2Q16 Results Highlights - Consolidated
- Net revenue contribution from packaging operations, testing operations, EMS operations, substrates sold to third parties and others, each represented approximately 48%, 10%, 40%, 1% and 1%, respectively, of total net revenues for the quarter.
- Cost of revenue was NT$50,346 million for the quarter, down from NT$50,922 million in 1Q16.
- Raw material cost totaled NT$27,293 million during the quarter, representing 44% of total net revenues.
- Labor cost totaled NT$8,678 million during the quarter, representing 14% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$6,996 million during the quarter.
- Gross margin increased 1.2 percentage points to 19.6% in 2Q16 from 18.4% in 1Q16.
- Operating margin was 9.5% in 2Q16 compared to 8.3% in 1Q16.
- In terms of non-operating items:
- Net interest expense was NT$532 million.
- Net foreign exchange loss of NT$238 million was primarily attributable to the appreciation of the U.S. dollar against the NT dollar.
- Gain on valuation of financial assets and liabilities was NT$858 million.
- Net gain on equity-method investments was NT$892 million, including NT$934 million of the share of profit from our investment in Siliconware Precision Industries Co., Ltd.
- Other net non-operating loss of NT$438 million was primarily related to miscellaneous loss. Total non-operating income for the quarter were NT$542 million.
- Income before tax was NT$6,473 million for 2Q16, compared to NT$5,656 million in 1Q16. We recorded income tax expenses of NT$1,523 million during the quarter, compared to NT$1,318 million in 1Q16.
- In 2Q16, net income attributable to shareholders of the parent was NT$4,679 million, compared to net income attributable to shareholders of the parent of NT$3,652 million for 2Q15 and net income attributable to shareholders of the parent of NT$4,163 million for 1Q16.
- Our total number of shares outstanding at the end of the quarter was 7,923,622,596, including treasury stock owned by our subsidiaries. Our 2Q16 basic earnings per share of NT$0.61 (or US$0.094 per ADS) were based on 7,657,902,937 weighted average number of shares outstanding in 2Q16. Our 2Q16 diluted earnings per share of NT$0.51 (or US$0.079 per ADS) were based on 8,238,395,704 weighted average number of shares outstanding in 2Q16.
2Q16 Results Highlights - IC ATM[2]
- Cost of revenues was NT$28,943 million for the quarter, up by 4% sequentially.
- Raw material cost totaled NT$8,458 million during the quarter, representing 22% of total net revenues.
- Labor cost totaled NT$7,478 million during the quarter, representing 19% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$6,383 million during the quarter.
- Gross margin increased 2.8 percentage points to 24.8% in 2Q16 from 22.0% in 1Q16.
- Operating margin was 12.9% in 2Q16 compared to 9.1% in 1Q16.
2Q16 Results Highlights - EMS
- Cost of revenues for the quarter was NT$22,326 million, down by 2% sequentially.
- Raw material cost totaled NT$18,879 million during the quarter, representing 76% of total net revenues.
- Labor cost totaled NT$1,199 million during the quarter, representing 5% of total net revenues.
- Depreciation, amortization and rental expenses totaled NT$651 million during the quarter.
- Gross margin increased to 10.3% in 2Q16 from 8.1% in 1Q16.
- Operating margin increased to 3.3% in 2Q16 from 1.5% in 1Q16.
LIQUIDITY AND CAPITAL RESOURCES
- Capital expenditures in 2Q16 totaled US$257 million, of which US$136 million were used for packaging, US$107 million for testing, US$4 million for EMS and US$10 million for interconnect materials.
- As of June 30, 2016, total unused credit lines amounted to NT$184,607 million.
- Current ratio was 1.13 and net debt to equity ratio was 0.44 as of June 30, 2016.
- Total number of employees was 65,437 as of June 30, 2016, compared to 63,357 as of March 31, 2016.
BUSINESS REVIEW
Packaging Operations[3]
