China-US trade war and bad market conditions shock! PSMC turns profit from profit in 2019

According to a new technology report, PSMC, a foundry of Powerchip Semiconductor Manufacturing Corporation, announced its 2019 financial results. Powerchip pointed out that due to the impact of the Sino-U.S. Trade war, the decline in capacity utilization, and the poor memory market conditions, the after-tax loss in 2019 was 1.48 billion yuan (NT $, the same below), a loss from 2018 , Loss of 0.94 yuan per share.

PSMC further pointed out that the revenue in 2019 reached 35.897 billion yuan, an annual decrease of 28%, and the gross profit margin of 8.36%, a decrease of 22.25 percentage points from 2018; the profitability rate was -5.85%, which turned negative compared to 2018; the after-tax loss was 1.48 billion Compared with 2018, it turned into a loss. EPS loss per share was 0.94 yuan. Regarding the main cause of the full year's net loss, Powerchip said that it was mainly due to the impact of the Sino-U.S. Trade war in 2019 and the shrinking demand, which caused the decline in capacity utilization, coupled with poor memory market conditions and falling prices, which made the whole year Turnover from operating profit to loss.

However, looking forward to the market outlook, PSMC pointed out that the current wafer foundry capacity is nearly full. In 2020, driven by long-term strategies such as process technology advancement, foundry product diversification, and customer optimization, coupled with the prospect of a rebound in the memory market, although There is interference from the pneumonia epidemic, but it is still cautiously optimistic about the turnaround in operations in 2020.

In addition, a few days ago, PSMC also announced that in order to accelerate the return to the capital market, the wafer foundry PSMC announced on the 9th that it will temporarily suspend public offerings in mid-2020 in order to reduce the capital of PSMC and convert PSMC shares. Then apply for public offering. It is expected that the stock listing will be completed before the 4th quarter to prepare for further application for listing.