AUO Corporation ("AUO" or the "Company") (TWSE: 2409) today held its investor conference and announced its consolidated financial results for the second quarter of 2022(1).

 

Consolidated revenues in the second quarter of 2022 were NT$62.88 billion, down by 22.9% quarter-over-quarter. AUO’s net loss attributable to owners of the Company for the second quarter of 2022 was NT$5.63 billion, with a basic EPS(2) of -NT$0.59.

 

In the second quarter of 2022, the total panel area shipment reached around 4.92 million square meters, down by 18.7% quarter-over-quarter and decreased by 23.2% year-over-year.

 

Highlights of consolidated results for the second quarter of 2022

 

  • Revenues of NT$62.88 billion
  • Operating loss of NT$4.65 billion
  • Net loss attributable to owners of the Company at NT$5.63 billion
  • Basic EPS(2) was -NT$59
  • Gross margin was 2.7%
  • Operating margin was -7.4%
  • EBITDA(3) margin was 5.2%

 

 

Looking back to the second quarter, the Company’s production and shipment in April were partially affected by Covid-19 related lockdown measures in China. This was combined with high channel inventory and lackluster end-market demand, leading to weaker panel purchasing from brands. As a result, there was higher than expected pressure to the Company’s operations, leading to revenues of NT$62.88 billion for the second quarter, a decline of 22.9% quarter-over-quarter. Profitability was also impacted by lower revenues. Operating loss was NT$4.65 billion, while net loss attributable to owners of the Company was NT$5.63 billion.

 

Looking into the third quarter, given industry headwinds and numerous macro uncertainties, the Company will continue to carefully manage its cash flow, and to maintain its healthy financial status. Furthermore, the Company will accelerate its deployment of the “Biaxial Transformation” strategy, in order to strengthen its enterprise competitiveness, as well as to reduce the impact from panel industry cyclicality to the Company’s business operations going forward.

 

(1) All financial information was prepared by the Company in accordance with Taiwan IFRS.

(2) Basic EPS in the second quarter of 2022 was calculated based on the weighted average outstanding shares of the reporting quarter (9,576 million shares).

(3) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.