Tongtai Machine & Tool : 2024 Shareholders' Meeting

Tongtai 2024 Shareholders' Meeting

Tongtai Machine & Tool Co., Ltd. (4526) convened its annual shareholders' meeting on the 13th of this month, acknowledging the financial statements and operating reports for 2022 and approving proposals such as distributing a cash dividend of 0.2 NT dollars per share. The primary business operations in 2022 were significantly affected by unresolved global inflation, sluggish economic conditions, weakened demand across various end markets, geopolitical tensions, the ongoing Russia-Ukraine conflict, and mainland China's reopening risk. Consequently, the consolidated revenue for 2022 declined by 8% compared to 2021. The consolidated gross profit margin was 20%, with an after-tax earnings per share of 0.2 NT dollars.

Despite the fluctuations in manufacturing industry investments and demands, trade disputes, and geopolitical tensions in 2023, Tongtai remained steadfast in its strategic focus. The company continued to explore new industrial applications and market development, demonstrating its forward-thinking approach. It also prioritized smart manufacturing solutions and enhanced overall efficiency through resource integration. In terms of research and development, the machinery business concentrated on providing digital transformation and green transformation solutions, while the electronic equipment business emphasized servo board and substrate industry applications.

Tongtai's proactive approach to expanding its presence in diverse industrial markets shows its growth potential. In addition to the continuous development of smart manufacturing software, the company also started laying out plans for the semiconductor equipment components and semiconductor process consumables processing industries. It anticipates significant contributions in the second half of this year through the first half of next year. The establishment of production facilities by PCB customers in Thailand is also expected to boost Thailand's global PCB output, thereby benefiting Tongtai. As a result, significant revenue growth in electronic equipment-related businesses is expected in the latter half of this year.

In May 2024, consolidated monthly revenue reached 542.527 billion NT dollars, a 29% increase from the previous month. However, cumulative consolidated revenue decreased by 22% compared to last year's period, totaling 2,287.49 billion NT dollars, with a cumulative order backlog of 3 billion NT dollars. Revenue distribution by product applications showed approximately 40% from the automotive and machinery industry, 12% from the aerospace industry, and 4% from the energy industry. Geographically, Taiwan and mainland China account for about 48% of the market share, Europe and the Americas account for about 30% and other Asian regions account for about 22% of the market share.

Regarding subsidiary performance, Honor Seiki focused on tooling applications in wind power, aerospace, rail, and future hydrogen energy industries. It witnessed increased orders from Europe, America, and India, indicating optimistic operational prospects for the latter half of the year. Meanwhile, Asia Pacific Elite Corp. thrived in South Korea, Japan, India, and Taiwan's aerospace industry. Significant projects in South Korea and substantial progress in India are expected this year, with a more considerable presence planned for India to secure orders for comprehensive solutions. Stable market demand and order acquisition are anticipated overall this year. PCI Scemm and Anger Machining, the two European subsidiaries, provided comprehensive solutions for electric vehicle battery casings and frameworks with ongoing internal transformations.

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