Wiwynn Reports Fourth Quarter 2021 Financial Results

Following the Board of Directors meeting today (February 25), Wiwynn Corporation announced consolidated revenue of NT$56.879 billion, operating profit of NT$3.420 billion, profit before tax (PBT) of NT$3.310 billion, profit after tax (PAT) NT$2.614 billion, and basic earnings per share (EPS) of NT$14.95 for the fourth quarter ended December 31, 2021. We achieved record high consolidated revenue, increased by 8.3% year-over-year. Gross margin was 8.0%, operating margin was 6.0%, and PAT margin was 4.6%.

In fiscal year 2021, consolidated revenue achieved record high of NT$192.626 billion, increased by 3.0% year-over-year. Due to inflation and New Taiwanese Dollar appreciation, year-over-year, gross margin, operating margin, and PAT margin all decreased by 0.1ppt to 8.1%, 5.9%, and 4.5% respectively. EPS achieved record high of NT$49.46.

Looking forward to 2022, due to work from home, distance learning and other AI applications, the demand of data center industry is growing continuously. However, the supply chain risk still exists, the Company is committed to stability and flexibility of operations through cooperation with customers and supply chain partners, and continuously expand our global locations in the next two to three years to achieve five to six times capacity.

In order to respond to the growing industry and strong demand of our customers, the Company is actively procuring components. The Board of Directors resolved to approve capital increases of subsidiaries, which are Wiwynn International Corporation, in the amount of USD$400 million to replenish working capital, and Wiwynn Technology Service Malaysia SDN. BHD., in the amount of USD$28 million to expand our capacity.

The Board of Directors resolved to approve the Company within the limit of 17 million common shares, depending on the market conditions and the Company’s needs, to choose one or a combination methods to issue new common shares to sponsor issuance of GDR and/or issue new common shares in public offering and/or issue new common shares in private placement and/or issue of new common shares to sponsor issuance of GDR in private placement.