Innolux reported second quarter revenues of NT$ 56.9 billion ($1.8 billion), a 12.6% increase from the previous quarter. Growth was driven by restocking by OEMs and price hikes due to major international sports events, according to the company. The company achieved an operating profit of nearly NT$ 0.4 billion ($11 million) and a net profit of nearly NT$ 1.2 billion ($38 million). The company is also shoring up its operation capital needs by divesting itself of land and assets that are considered fully depreciated.
| 2Q 2024 | 1Q 2024 | QoQ % | 2Q 2023 | |
| Net Sales | 56,861 | 50,492 | 12.60% | 55,087 |
| Cost of Goods Sold | 51,150 | 48,351 | 5.80% | 54,735 |
| Gross Profit | 5,711 | 2,141 | 166.70% | 353 |
| Operating Expenses | 5,347 | 5,312 | 0.60% | 5,692 |
| Operating Profit(Loss) | 364 | -3,171 | – | -5,339 |
| Net Non-operating Income(Exp.) | 1,118 | -543 | – | 206 |
| Profit(Loss) before Tax | 1,482 | -3,714 | – | -5,133 |
| Net Profit(Loss) | 1,184 | -4,095 | – | -5,720 |
| 2Q 2024 | 1Q 2024 | QoQ % | 2Q 2023 | |
| Net Sales | $1,834.23 | $1,628.77 | 12.60% | $1,777.00 |
| Cost of Goods Sold | $1,650.00 | $1,559.71 | 5.80% | $1,765.65 |
| Gross Profit | $184.23 | $69.06 | 166.70% | $11.39 |
| Operating Expenses | $172.48 | $171.35 | 0.60% | $183.61 |
| Operating Profit(Loss) | $11.74 | -$102.29 | – | -$172.23 |
| Net Non-operating Income(Exp.) | $36.06 | -$17.52 | – | $6.65 |
| Profit(Loss) before Tax | $47.81 | -$119.81 | – | -$165.58 |
| Net Profit(Loss) | $38.19 | -$132.10 | – | -$184.52 |
Innolux shipped 6.71 million square meters of panels, an 11.5% increase quarter-on-quarter, with a blended average selling price of $259 per square meter for TFT-LCD panels. TV panels accounted for 40% of net sales, with automotive, mobile PC, mobile phone, and desktop panels making up the remainder. Display components represented 78% of net sales.
Looking ahead, Innolux expects a slight decrease in shipments for the third quarter due to subdued consumer sentiment from inflation, although demand for IT products driven by AI advancements could lift the market. The company plans to focus on maintaining stable pricing, optimizing operations, and accelerate development in non-display businesses. Large panel shipments are projected to decline slightly, while small and medium panel shipments are expected to increase.
Innolux plans to sell the land and facilities of its Tainan Plant 4, a 5.5-generation plant that was closed last year. The company’s board of directors has authorized Chairman Hong Jinyang to handle real estate-related matters, confirming rumors about the sale. While specific transaction details have not been finalized, potential buyers reportedly include Micron and TSMC, both of whom are currently in the bidding stage.
Innolux is also transforming its older factories that have completed depreciation. The 3.5-generation line at the Tainan plant has been converted into an advanced packaging facility for Fan-Out Panel Level Packaging (FOPLP), and the 4th-generation line has been repurposed to produce X-ray sensors through Rui Sheng Optoelectronics, both of which focus on semiconductor-related products.
