Yageo Corporation (TAIEX: 2327 TW) today announced its second-quarter results of 2020. Net consolidated sales reported NT$ 13,470 million, up 34.4% q-o-q and up 40.6% y-o-y, respectively. Net consolidated profits after tax attributable to parent company in the second quarter reported NT$ 3,295 million (up 40.2% q-o-q and 137.5% y-o-y, respectively) or NT$ 7.01 earnings per share. Gross margin rate posted 44.3%, up 4.0% percentage point q-o-q and up 11.7% percentage point y-o-y, respectively. The operating profit reached NT$ 4,328 million with 32.1% operating profit margin rate, up 6.5% percentage point q-o-q and up 14.9% percentage point y-o-y, respectively. Non-operating items posted a net loss of NT$ 154 million in the second quarter, including realized and unrealized net loss on foreign exchange NT$ 225 million (the influence to EPS was about -NT$ 0.5), investment income under equity method NT$ 94 million, net interest income NT$ 33 million, and other net loss of NT$ 56 million.

1H20 consolidated sales reported NT$ 23,493 million, up 12.0 % y-o-y. Net consolidated profit after tax attribute to parent company reported NT$ 5,645 million (up 43.0% y-o-y) or NT$ 12.60 earnings per share. Gross margin rate posted 42.6%, up 3.4% percentage point y-o-y. The operating income reached NT$ 6,890 million with 29.3% of operating profit margin rate, up 7.3% percentage point y-o-y. Non-operating items posted a net gain of NT$ 155 million, including realized and unrealized net gain on foreign exchange NT$ 125 million, investment income under equity method NT$ 132 million, net interest income NT$ 98 million, and other net loss of NT$ 200 million.

Foresee the third quarter, the global COVID-19 pandemic has not eased and the macro outlook is still full of uncertainty, but Yageo’s revenues and product portfolio have been undergone structural changes with the consolidation of KEMET. Future operations will focus on high-end 5G technology, automotive, industrial, aerospace, and medical segments. The company’s revenue and profit will continue to maintain growth momentum.