HANA Microelectronics Group. : Content Management
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Group Consolidated Result Third Quarter Ended [30th September, 2019]

Hana Microelectronics Public Company Limited
GROUP CONSOLIDATED RESULT
Third QUARTER ENDED 30th September, 2019

Hana Microelectronics Group 'Hana' Sales Revenue decreased 14% year on year to THB 5.2 billion for the third quarter of 2019 from THB 6.0 billion for the third quarter 2018. Sales Revenue in USD terms decreased 8% to USD 168m for Q3 2019 from USD 182m in Q3 2018. Operating Profits decreased 53% to THB 381m in Q3 2019 from THB 815m in Q3 2018.



HIGHLIGHTS

Quarter 3 2019 sales revenue for the group decreased 8% year-on-year in USD terms to USD 168m from USD 188m in Q318. The average exchange rate for Q319 was 7% stronger at THB/USD 30.7 from THB/USD 33.0 in Q318. As a result the sales revenue in THB terms decreased 14% year on year for the quarter.

Year-on-year, in USD terms, the microelectronics divisions sales decreased by 1%. Sales in Lamphun increased 9% whilst Jiaxing decreased by 26%. The IC divisions sales revenues decreased 16% in Q319, with revenues of the IC division in Ayutthaya decreasing 15% and Jiaxing decreasing by 25%. "HTI" the Microdisplay/RFID operation in Ohio sales revenue decreased 18% in Q319 from Q318.

Quarter-on-Quarter, in USD terms, sales for the group increased 3% to USD 168m in Q319 from USD 163m in Q219. In THB equivalent the group sales were up similar in Q319 compared to Q219.

Sales in the microelectronics divisions increased 3% with Lamphun increasing 7% and Jiaxing decreasing 9%. Sales revenues from the IC divisions were 4% higher in Q319 with Ayutthaya sales increasing 4% and Jiaxing IC sales increasing by 7%. The Microdisplay division sales decreased 10% in Q319 compared to Q219.

The Gross Profit margin was 6 percentage points lower at 12% in Q319 down from Q318 at 18% due to reduced economies of scale from lower sales revenue [-2%], stronger THB/USD exchange rate [-2%], change in product mix [-1%] and higher labour and salaries expenses [-1%].

Year-on-year operating profits, were 53% lower at THB 381m in Q319 compared to THB 815m in Q318. The Operating margin was 7 percentage points lower at 7% in Q319 down from 14% in Q318 due to lower gross margin 6%. SG&A expenses were 2% higher in Q319 from Q318 due to increased R&D expenses.