Yageo Corporation (TAIEX: 2327 TW) today announced its second-quarter results of 2019. Net consolidated sales reported NT$ 9,580 million, down 15.9% q-o-q and 50.2% y-o-y respectively. Net consolidated profits after tax attributable to parent company in the second quarter reported NT$ 1,417 million or NT$ 3.34 earnings per share. Gross margin rate posted 32.6%, down 12.3% percentage point q-o-q and 31.5% percentage point y-o-y respectively. The operating income reached NT$ 1,679 million with 17.5% of operating profit margin, down 8.8% percentage point q-o-q and 38.2% percentage point y-o-y respectively. Non-operating items posted a net gain of NT$ 622 million in the second quarter, including realized and unrealized net gain on foreign exchange NT$ 266 million, investment income under equity method NT$ 36 million, net interest income NT$ 252 million, and other net gain of NT$ 68 million.

1H19 consolidated sales reported NT$ 20,974 million, down 30.7 % y-o-y. Net consolidated profit after tax attribute to parent company reported NT$ 4,007 million or NT$ 9.45 earnings per share. Gross margin rate posted 39.2%, down 20.2% percentage point y-o-y. The operating income reached NT$ 4,678 million with 22.3% of operating profit margin, down 28.6% percentage point y-o-y. Non-operating items posted a net gain of NT$ 753 million, including realized and unrealized net gain on foreign exchange NT$ 222 million, investment income under equity method NT$ 79 million, net interest income NT$ 389 million, and other net gain of NT$ 63 million.

Net consolidated sales and profits of the second quarter declined as compared to last quarter for reasons attributable to overall weak demands in Greater China region, slowdown of demands from American, European, and other Asian customers, and low utilization rate for reducing inventory. Moving forward, as the customer’s inventory digestion and the company’s inventory adjustment has been gradually stabilized in last 3 quarters, and the end demand and market application started to show positive signal of recovery, Yageo remains conservative about its sales and operation performance and will stay vigilant for the challenging environment as growing concerns on the trade frictions.

The company today also decided the ex-dividend date is on August 26th, 2019, and the cash dividend distribution date is on October 3rd, 2019.

In addition, Yageo held a board meeting today and appointed Ms. Dora Chang as the Chairman and Chief Executive Officer of Pulse Electronics, and Mr. Pierre Chen, the Chairman of Yageo, will be the Chief Executive Officer and General
Manager, both effective on August 16th, 2019.

Mr. Pierre Chen is the founder of Yageo. He is well involved of the development of passive components industry and the company's operation strategies. He will continue to lead Yageo to expand its high-end market in automotive electronics and industrial segments and enlarge the value of the industry, shareholders, customers, and employees.