March 06, 2024

Group entities apply for public listing sequentially, accelerating future growth momentum

High-value-added (HVA) business revenue has exceeded 100 billion for two consecutive years, medical revenue grew 20% YoY

Qisda has successfully nurtured its Grand Fleet partners and is proactively advocating for the independent listing of its subsidiaries in 2024 to raise funds from the market and accelerate growth momentum. Pursuing the goal of "Profits from high value-added (HVA) businesses exceed 50% by 2027", Qisda's HVA business revenue has exceeded NTD 100 billion for two consecutive years, driving the gross profit margin continuously to grow to over 16%. The company aims to accelerate value transformation in the future.

Qisda held an online conference on March 6 to explain fiscal 2023 operational results and the future outlook. Qisda's consolidated revenue for fiscal 2023 reached NTD 203.6 billion, of which the medical business has been steadily growing year by year. Medical revenue was approaching NTD 25 billion with an annual growth rate of 20%. The gross margin, operating income margin, and operating income of the medical business were all increased compared to the same period last year.

Qisda's Chairman, Peter Chen, stated that Qisda has built a resource platform over the last decade, proactively expanding high-value-added businesses with fleet partners. This year, it is pleasing to see fleet partners entering the capital market successively. The independent listing of fleet partners not only indicates the affirmation of the company's corporate governance and commitment to sustainability but also enables the company to raise plenty of funds from the market and speed up growth momentum, driving Qisda Group to grow collaboratively.

Qisda’s President, Joe Huang, stated that pursuing the goal of more than half of profits generated from high value-added businesses by 2027, Qisda will continue to promote organizational efficiency and focus this year, as well as facilitate subsidiaries' entry into the capital market. Through lean and focused approaches, integrating resources for companies within similar industries, and expanding products and channels comprehensively, they can achieve greater synergies. Subsidiaries with diverse fundraising channels can expand growth opportunities and accelerate growth momentum.

This year, Qisda Group entities are applying for public listing sequentially. Norbel Baby (6844), which was invested last year, is expected to be listed on Taipei Exchange (TPEx) on March 8, accelerating the pharmacy chain expansion and strengthening healthcare products for adults to meet the needs of the aging society. Data Image (3168) will be listed on the Taiwan Stock Exchange (TWSE) on March 26, strengthening and reinforcing its leading position in outdoor weather-resistant rugged displays. Meanwhile, BenQ BM Holding Cayman Corp. will also submit its listing application to HKEX for initial public offering (IPO).

In terms of performance in each business group in 2023, IT business revenue was NTD 106.5 billion, with a 25% decrease due to declining demand for IT products. Among HVA businesses, medical business performed notably well, with a revenue growth rate of 20%. Medical’s gross margin, operating income margin, and operating income all increased compared to the previous year. BSG revenue grew by 3%, with an increase in gross margin and operating income. NCG business was affected by customer inventory adjustments, decreased by 16% in revenue, and a decline in gross margin and operating income margin.

Qisda 2023 Financial Report Highlights:

Revenue: NTD 203.6 billion, down by 15% year-on-year.

Gross Profit: NTD 33.076 billion, a decrease of 4% year-on-year.

Gross Margin: 16.2%, an increase of 1.8 percentage points year-on-year, marking a 20-year high record.

Operating Income: NTD 5.011 billion, down by 14% year-on-year.

Operating Income Margin: 2.5%, up by 0.1 percentage points year-on-year.

Net Income: NTD4.516 billion, a decrease of 59% year-on-year.

Net Income Attributable to Qisda: NTD 2.976 billion, down by 64% year-on-year.

Earnings Per Share (EPS): NTD 1.51.