Genes Tech Group Announces 2023 Q1 Results

Total revenue increased by approximately 35.17% to approximately NTD319.92 million

Revenue from the turnkey solutions increased by approximately 79.85% to approximately NTD 164.04 million

Total comprehensive income for the period attributable to owners of the Company increased by approximately 32.80% to approximately NTD30.34 million

2023 Q1 Results Highlights

• The total revenue increased by approximately 35.17% to approximately NTD319.92 million
• Total comprehensive income for the period attributable to owners of the Company increased by approximately 32.80% to approximately NTD30.34 million
• Revenue from the turnkey solutions increased by approximately 79.85% to approximately NTD164.04 million
• Basic earnings per share were approximately NTD2.89 cents

HONG KONG, May 11, 2023 /PRNewswire/ — Genes Tech Group Holdings Co. Ltd (“Genes Tech Group” or “The Group”, Stock Code: 8257.HK) announces its Q1 results for the three months ended 31 March 2023 (“During the period”). During the period, the total revenue of the Group amounted to approximately NTD319.92 million. Total comprehensive income for the period attributable to owners of the Company amounted to approximately NTD30.34 million. Basic earnings per share were approximately NTD2.89 cents.

During the period, revenue from the turnkey solutions amounted to approximately NTD164.04 million, representing an increase of approximately 79.85% as compared to the corresponding period of last year, accounting for approximately 51.27% of the Group’s total revenue. The revenue from trading of used SME and parts amounted to approximately NTD155.89 million, representing an increase of approximately 7.15% as compared to the corresponding period of last year, accounting for approximately 48.73% of the Group’s total revenue. During the period under review, revenue from the domestic business in Taiwan amounted to approximately NTD225.84 million, accounted for approximately 70.59% of the Group’s total revenue.

Since the second half of 2022, the global semiconductor market has been continuously affected by factors including Russia– Ukraine geopolitical conflicts, Mainland China’s epidemic control, the US Federal Reserve’s interest rate hike and inflation. With the weak end market demand for electronic consumer products such as personal computers and smartphones, semiconductor industry players along the production and marketing supply chain are facing varying degrees of pressure to destock. The global semiconductor market has contracted for the first time in 2023 after three consecutive years of positive growth. According to Gartner’s research, the global shipment of personal computers in the first quarter of 2023 was 55.2 million units, representing a 30% decrease compared with the first quarter of 2022 and a year-on-year decline for the second consecutive quarter. According to the International Data Corporation (IDC) mobile phone quarterly tracking report, the global smartphone market shipments in 2023 will be less than 1.2 billion units, representing a year-on-year decrease of 1.1%. It is expected that the smartphone market will not recover until 2024 and achieve 5.9% year-on-year growth, Nevertheless, benefiting from the demand in industrial fields such as electric and autonomous vehicles (ADAS), high-performance computing (HPC), artificial intelligence (AI), and low-orbit satellites, the mid-to-long-term structural demand of the semiconductor industry is still very strong, and future growth remains promising. The International Semiconductor Industry Association (SEMI) has revised the total investment downward in global front-end fab equipment in 2023, which is expected to decline by 22% from the record US$98 billion in 2022 to US$76 billion; it will rebound by 21% to US$92 billion in 2024. Taiwan will remain firmly at the top of the global fab equipment expenditure, with a total increase of 4.2% from 2023 to US$24.9 billion. The Group will pay close attention to changes in the market environment, respond prudently and quickly to market changes, seize development opportunities, and actively explore market development opportunities.

Mr. Yang Ming-Hsiang, Chairman and Chief Executive Officer concluded: “2023 is a year of adjustment for the semiconductor industry. The global semiconductor market continues to be affected by persistent macroeconomic challenges and weak demand in the consumer sector. To cope with market demand and cyclical changes in the macro economy, the Taiwan Semiconductor Industry Association (TSIA) released the latest forecast data in mid-February 2023 and revised the annual output value of Taiwanese semiconductor industry downward to NTD4.56 trillion with a decline of 4.56%.  Various market research institutions predict that this downward cycle is expected to bottom out in the second half of 2023, and global semiconductor sales will rebound in 2024.  In response to changes in the market environment, the Group will actively seize development opportunities, and strive to keep up with the research and development of investment products and technological improvement, to enhance the core competitiveness of the Group.

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 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 used SEM and parts. The used 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.