SINBON’s first quarter of audited consolidation sales revenue in 2018 is NT$3.486 billion which is an increase of 8.47% over previous year of NT$3.214 billion. The consolidation gross profit rate is 25.12% which is an increase of 0.32% over previous year of 24.80%. The net profit after tax for the first quarter is NT$277 million which is a decrease of 1.91% than year 2017 at NT$282 million. The EPS after tax is NT$1.23.
According to SINBON, growth of sales revenue of the first quarter is 8.47% over the same period of previous year, however, the net profit after tax is lower by 1.91%, which is affected by the increasing of operating costs, appreciation of 6.45% on NT dollar and RMB and rise in income tax rate in Taiwan from 17% to 20%. Increasing in operating costs is due to, 1) increased in investment in production site in Europe with original shareholding ratio of 40% to 51%. Sales revenue in SINBON production site in Europe will be acquired in Group consolidated sales revenue starts from 4th quarter 2018. Operating costs is expected to increase by NT35 million every quarter and contribution of profit is expected to be realized in 2019 after at least a year of cultivation; 2) salary adjustment in 1st of April; 3) Organization restructure is taken place to cope with marketing changing and technology development. Operating status remains unchanging comparing to forth quarter in 2017 while operating costs are decreased 4.29% over previous quarter.
Automation and intelligence productions are the trends of future industry development. SINBON has been exporting the signal transmission and high-current fast charging cable sets used in automatic storage handling equipment. It has successively built a good reputation is producing for automation equipment, robotic arms, and special-purpose robots that made by several worldwide well-known makers. In the field of automatous driving, SINBON has also established partnerships with foreign module company, LiDAR, to collaboratively develop high-speed transmission and seismic resistance cable sets required for of its modules upon customers ’requirements. The production will be gradually put into schedule within the next 1-2 years. The existing production capacity and space of the SINBON’s plants will no longer be able to meet the needs of customers. Thus, in the second half of this year, SINBON will build new factories in Jiangyin, in Jiangsu Province, and Tongcheng, in Anhui Province, in Mainland China respectively to meet the future needs of the clients. The second plant in Miaoli, Taiwan, which started construction in October 2016, will be completed this May. The new space will be used for production for high-precision equipment, aerospace industry, and wind power machinery. Increase in investment has resulted in an increase in the costs in both fourth quarter of 2017 and the first quarter of 2018, however, which should be a short-term influence. The return in the investment shall be seen in near future and it is expected to create better business performance. Looking forward to the second quarter, as the demand for various industries gradually increases, the operation will be better than the first quarter.