Company posts 15.7% gross margin and NT$0.15 EPS
Second Quarter 2019 Overview1:
- Revenue: NT$36.03 billion (US$1.16 billion)
- Gross margin: 15.7%
- Foundry revenue from 28nm: 13%; Foundry operating margin: 5.3%
- Foundry capacity utilization rate: 88%
- Net income attributable to stockholders of the parent: NT$1.74 billion (US$56 million)
- Earnings per share: NT$0.15; earnings per ADS: US$0.024
TAIPEI, Taiwan — (BUSINESS WIRE) — July 24, 2019 — United Microelectronics Corporation (NYSE:UMC; TWSE:2303) (“UMC” or “The Company”), a leading global semiconductor foundry, today announced its consolidated operating results for the second quarter of 2019.
Second quarter consolidated revenue was NT$36.03 billion, up 10.6% QoQ from NT$32.58 billion in 1Q19 and down 7.3% YoY from NT$38.85 billion in 2Q18. Consolidated gross margin for 2Q19 was 15.7%. Net income attributable to stockholders of the parent was NT$1.74 billion, with earnings per ordinary share of NT$0.15.
Jason Wang, co-president of UMC, said, “In the second quarter, foundry revenue grew 10.6% QoQ to NT$36.00 billion, leading to a foundry operating margin of 5.3%. Utilization rate increased to 88%, bringing wafer shipments to 1.73 million 8-inch equivalent wafers. 2Q19 results reflected higher contribution from 12" technology nodes, which experienced strength from the wireless communication segment including chips found in entry level to mid-end smartphones, switches and routers. During the quarter, we generated a free cash flow of NT$8.17 billion. We remain committed to strengthening our financial metrics, and on June 19, 2019, UMC’s Board of Directors approved the cancellation of 400 million ordinary treasury shares, which will reduce UMC’s ordinary shares by 3.3%.”
Co-president Wang further commented, “Despite US-China trade tensions creating market uncertainty, we anticipate that specific areas within the wireless communication sector will have a short term upward adjustment in the supply chain, which should lead to a slight increase in wafer demand. However, we have observed that customers are continuing to manage their inventory carefully amid a weakened global economic environment, which may contribute to lower visibility in business forecast during the second half of 2019. In the meantime, we continue to actively implement measures intended to enhance our foundry competitiveness, such as focusing resources to capitalize on our existing strength in mainstream logic and specialty processes while offering more diversified technology platforms to customers.”
Summary of Operating Results
Operating Results |
|||||
(Amount: NT$ million) |
2Q19 |
1Q19 |
QoQ %
|
2Q18 |
YoY %
|
Operating Revenues |
36,031 |
32,583 |
10.6 |
38,852 |
(7.3) |
Gross Profit |
5,652 |
2,262 |
149.9 |
6,675 |
(15.3) |
Operating Expenses |
(5,578) |
(4,932) |
13.1 |
(5,213) |
7.0 |
Net Other Operating Income and Expenses |
1,687 |
1,073 |
57.2 |
1,719 |
(1.9) |
Operating Income (Loss) |
1,761 |
(1,597) |
- |
3,181 |
(44.6) |
Net Non-Operating Income and Expenses |
(617) |
1,247 |
- |
(1,095) |
(43.7) |
Net Income Attributable to Stockholders of the Parent |
1,740 |
1,201 |
44.9 |
3,659 |
(52.4) |
EPS (NT$ per share) |
0.15 |
0.10 |
|
0.30 |
|
(US$ per ADS) |
0.024 |
0.016 |
|
0.048 |
|
Operating revenues in 2Q19 increased 10.6% to NT$36.03 billion, including NT$36.00 billion from the foundry segment. Revenue contribution from 40nm and below technologies grew to 37%. Gross profit increased 149.9% to NT$5.65 billion, or 15.7% of revenue. Operating expenses increased 13.1% to NT$5.58 billion. Net other operating income was NT$1.69 billion, leading to an operating income of NT$1.76 billion. Net non-operating expense was NT$617 million. Net income attributable to stockholders of the parent was NT$1.74 billion.
Earnings per ordinary share for the quarter was NT$0.15. Earnings per ADS was US$0.024. The basic weighted average number of outstanding shares in 2Q19 was 11,817,657,562, compared with 11,908,706,645 shares in 1Q19 and 12,048,575,089 shares in 2Q18. The diluted weighted average number of outstanding shares was 13,079,662,179 in 2Q19, compared with 13,238,181,278 shares in 1Q19 and 13,268,862,054 shares in 2Q18. The fully diluted share count on June 30, 2019 was approximately 12,986,324,000. During 2Q19, UMC retired 400 million treasury shares acquired from the 17th and 20th share buy-back programs.
Detailed Financials Section
COGS & Expenses |
|||||
(Amount: NT$ million) |
2Q19 |
1Q19 |
QoQ %
|
2Q18 |
YoY %
|
Operating Revenues |
36,031 |
32,583 |
10.6 |
38,852 |
(7.3) |
COGS |
(30,379) |
(30,321) |
0.2 |
(32,177) |
(5.6) |
Depreciation |
(11,424) |
(10,497) |
8.8 |
(12,139) |
(5.9) |
Other Mfg. Costs |
(18,955) |
(19,824) |
(4.4) |
(20,038) |
(5.4) |
Gross Profit |
5,652 |
2,262 |
149.9 |
6,675 |
(15.3) |
Gross Margin (%) |
15.7% |
6.9% |
|
17.2% |
|
Operating Expenses |
(5,578) |
(4,932) |
13.1 |
(5,213) |
7.0 |
G&A |
(1,251) |
(1,236) |
1.1 |
(1,083) |
15.5 |
Sales & Marketing |
(953) |
(889) |
7.2 |
(1,103) |
(13.6) |
R&D |
(2,787) |
(2,807) |
(0.7) |
(3,027) |
(7.9) |
Expected Credit Losses |
(587) |
- |
100.0 |
- |
100.0 |
Net Other Operating Income & Expenses |
1,687 |
1,073 |
57.2 |
1,719 |
(1.9) |
Operating Income (Loss) |
1,761 |
(1,597) |
- |
3,181 |
(44.6) |
Operating revenues grew 10.6% to NT$36.03 billion. COGS remained relatively unchanged at NT$30.38 billion, as depreciation increased 8.8% to NT$11.42 billion while other manufacturing costs declined 4.4% to NT$18.96 billion. Gross profit was NT$5.65 billion. Operating expenses rose 13.1% to NT$5.58 billion, which included a 7.2% increase in Sales & Marketing to NT$953 million and a NT$587 million in Expected Credit Losses. R&D expense accounted for 7.7% of 2Q19 operating revenues and net other operating income was NT$1.69 billion. In 2Q19, the company realized an operating income of NT$1.76 billion.
Non-Operating Income and Expenses |
|||
(Amount: NT$ million) |
2Q19 |
1Q19 |
2Q18 |
Non-Operating Income and Expenses |
(617) |
1,247 |
(1,095) |
Net Interest Income and Expenses |
(497) |
(473) |
(505) |
Net Investment Gain and Loss |
69 |
1,228 |
105 |
Exchange Gain and Loss |
(182) |
507 |
(720) |
Other Gain and Loss |
(7) |
(15) |
25 |
Net non-operating expense in 2Q19 was NT$617 million, primarily resulting from NT$497 million in net interest expense and NT$182 million in exchange loss, partly offset by NT$69 million in net investment gain.
| Cash Flow Summary | ||
(Amount: NT$ million) |
For the 3-Month Period Ended Jun. 30, 2019 |
For the 3-Month Period Ended Mar. 31, 2019 |
Cash Flow from Operating Activities |
12,268 |
8,183 |
Net income (loss) before tax |
1,144 |
(350) |
Depreciation & Amortization |
12,185 |
12,380 |
Expected credit losses |
587 |
- |
Net loss (gain) of financial assets and liabilities at FVTPL |
274 |
(1,032) |
Share of profit or loss of associates and joint ventures |
(201) |
(196) |
Exchange loss (gain) on financial assets and liabilities |
583 |
(554) |
Changes in working capital |
(1,047) |
(1,339) |
Interest paid |
(994) |
(215) |
Other |
(263) |
(511) |
Cash Flow from Investing Activities |
(4,188) |
(5,683) |
Acquisition of PP&E |
(3,904) |
(5,563) |
Acquisition of intangible assets |
(247) |
(530) |
Other |
(37) |
410 |
Cash Flow from Financing Activities |
(6,467) |
2,180 |
Bank loans |
(1,197) |
2,463 |
Redemption of bonds |
(2,500) |
- |
Treasury stock acquired |
(2,641) |
(331) |
Other |
(129) |
48 |
Effect of Exchange Rate |
10 |
396 |
Net Cash Flow |
1,623 |
5,076 |
Beginning balance |
88,738 |
83,662 |
Changes in non-current assets held for sale |
(5) |
- |
Ending balance |
90,356 |
88,738 |
Cash inflow from operating activities was NT$12.27 billion while foundry CAPEX was NT$4.09 billion, leading to free cash flow of NT$8.17 billion. Cash outflow from financing activities totaled NT$6.47 billion, including NT$2.64 billion in payment for treasury share buyback, NT$2.50 billion in redemption of bonds and NT$1.20 billion in bank loans. Net cash inflow in 2Q19 was NT$1.62 billion. Over the next 12 months, the company expects to repay NT$2.73 billion in bank loans.
Current Assets |
|||
(Amount: NT$ billion) |
2Q19 |
1Q19 |
2Q18 |
Cash and Cash Equivalents |
90.36 |
88.74 |
75.19 |
Notes & Accounts Receivable |
24.39 |
22.99 |
27.01 |
Days Sales Outstanding |
60 |
66 |
61 |
Inventories, net |
19.63 |
18.87 |
17.66 |
Days of Inventory |
58 |
56 |
49 |
Total Current Assets |
150.51 |
146.80 |
137.08 |
Cash and cash equivalents increased to NT$90.36 billion. Days of inventory increased two days to 58 days.
Liabilities |
|||
(Amount: NT$ billion) |
2Q19 |
1Q19 |
2Q18 |
Total Current Liabilities |
77.06 |
52.64 |
59.17 |
Notes & Accounts Payable |
6.91 |
6.78 |
7.41 |
Short-Term Credit / Bonds |
39.43 |
23.35 |
17.23 |
Payable on Equipment |
2.60 |
2.95 |
3.61 |
Dividends Payable |
6.92 |
- |
8.56 |
Other |
21.20 |
19.56 |
22.36 |
Long-Term Credit / Bonds |
45.39 |
64.98 |
67.76 |
Long-Term Investment Liabilities |
20.83 |
20.99 |
20.79 |
Total Liabilities |
167.84 |
164.32 |
170.11 |
Debt to Equity |
83% |
78% |
81% |
Current liabilities increased to NT$77.06 billion. Total liabilities increased to NT$167.84 billion, leading to a debt to equity ratio of 83%.
Analysis of Revenue2 for Foundry Segment
Revenue Breakdown by Region |
|||||
Region |
2Q19 |
1Q19 |
4Q18 |
3Q18 |
2Q18 |
North America |
31% |
32% |
38% |
34% |
37% |
Asia Pacific |
59% |
57% |
51% |
52% |
51% |
Europe |
7% |
7% |
8% |
11% |
9% |
Japan |
3% |
4% |
3% |
3% |
3% |
Revenue from Asia Pacific expanded to 59%, as revenue contribution from North American customers slightly fell to 31%. Revenue from Europe and Japan was 7% and 3%, respectively.
Revenue Breakdown by Geometry |
|||||
Geometry |
2Q19 |
1Q19 |
4Q18 |
3Q18 |
2Q18 |
14nm and below |
0% |
0% |
1% |
5% |
3% |
14nm<x<=28nm |
13% |
10% |
10% |
13% |
15% |
28nm<x<=40nm |
24% |
20% |
23% |
22% |
26% |
40nm<x<=65nm |
14% |
14% |
13% |
12% |
12% |
65nm<x<=90nm |
12% |
12% |
11% |
10% |
7% |
90nm<x<=0.13um |
14% |
15% |
13% |
11% |
11% |
0.13um<x<=0.18um |
12% |
15% |
15% |
14% |
13% |
0.18um<x<=0.35um |
8% |
11% |
11% |
10% |
10% |
0.5um and above |
3% |
3% |
3% |
3% |
3% |
Revenue contribution from 28nm grew to 13% while 40nm business represented 24% of sales.
Revenue Breakdown by Customer Type |
|||||
Customer Type |
2Q19 |
1Q19 |
4Q18 |
3Q18 |
2Q18 |
Fabless |
93% |
94% |
92% |
93% |
92% |
IDM |
7% |
6% |
8% |
7% |
8% |
Revenue from fabless customers decreased to 93% of revenue.
Revenue Breakdown by Application (1) |
|||||
Application |
2Q19 |
1Q19 |
4Q18 |
3Q18 |
2Q18 |
Computer |
14% |
15% |
15% |
19% |
16% |
Communication |
52% |
48% |
44% |
43% |
47% |
Consumer |
28% |
29% |
30% |
28% |
28% |
Others |
6% |
8% |
11% |
10% |
9% |
The communication segment accounted for 52% of sales, while revenue from consumer applications remained relatively flat at 28%. Computer related applications contributed 14% of revenue.
(1) Computer consists of ICs such as CPU, GPU, HDD controllers, DVD/CD-RW control ICs, PC chipset, audio codec, keyboard controller, monitor scaler, USB, I/O chipset. Communication consists of handset components, broadband, WLAN, bluetooth, Ethernet, LAN, DSP, etc. Consumer consists of ICs used for DVD players, DTV, STB, MP3/MP4, flash controller, game consoles, DSC, smart cards, toys, etc.
|
Blended ASP Trend for Foundry Segment
Blended average selling price (ASP) in 2Q19 slightly increased.
(To view ASP trend, visit http://www.umc.com/english/investors/2Q19_ASP_trend.asp)
Shipment and Utilization Rate3 for Foundry Segment
Wafer Shipments |
|||||
|
2Q19 |
1Q19 |
4Q18 |
3Q18 |
2Q18 |
Wafer Shipments
|
1,730 |
1,611 |
1,711 |
1,804 |
1,846 |
|
|||||
Quarterly Capacity Utilization Rate |
|||||
|
2Q19 |
1Q19 |
4Q18 |
3Q18 |
2Q18 |
Utilization Rate |
88% |
83% |
88% |
94% |
97% |
Total Capacity
|
1,970 |
1,937 |
1,958 |
1,938 |
1,918 |
In 2Q19, wafer shipments grew 7.4% to 1,730K. Quarterly capacity increased 1.7% QoQ to 1,970K, resulting in an overall utilization rate of 88%.
Capacity4 for Foundry Segment
Total capacity in the second quarter reached 1,970K 8-inch equivalent wafers. We anticipate third quarter capacity to increase by approximately 1.7% QoQ to 2,004K 8-inch equivalent wafers, mainly from expansion at Fab 12i.
Annual Capacity in thousands of wafers |
|
Quarterly Capacity in thousands of wafers |
||||||||||
FAB |
Geometry
|
2018 |
2017 |
2016 |
2015 |
|
FAB |
3Q19E |
2Q19 |
1Q19 |
4Q18 |
|
WTK |
6" |
3.5 – 0.45 |
396 |
422 |
423 |
421 |
|
WTK |
93 |
93 |
91 |
93 |
Fab 8A |
8" |
0.5 – 0.25 |
825 |
825 |
827 |
813 |
|
Fab 8A |
207 |
207 |
204 |
207 |
Fab 8C |
8" |
0.35 – 0.11 |
383 |
357 |
348 |
347 |
|
Fab 8C |
111 |
109 |
106 |
108 |
Fab 8D |
8" |
0.13 – 0.09 |
347 |
341 |
342 |
341 |
|
Fab 8D |
90 |
90 |
89 |
90 |
Fab 8E |
8" |
0.5 – 0.18 |
418 |
418 |
419 |
418 |
|
Fab 8E |
107 |
105 |
103 |
105 |
Fab 8F |
8" |
0.18 – 0.11 |
431 |
417 |
401 |
388 |
|
Fab 8F |
110 |
108 |
107 |
108 |
Fab 8S |
8" |
0.18 – 0.11 |
372 |
347 |
336 |
335 |
|
Fab 8S |
93 |
93 |
92 |
93 |
HJ |
8" |
0.5 – 0.11 |
771 |
753 |
750 |
667 |
|
HJ |
208 |
205 |
201 |
194 |
Fab 12A |
12" |
0.13 – 0.014 |
997 |
970 |
885 |
793 |
|
Fab 12A |
250 |
250 |
246 |
250 |
Fab 12i |
12" |
0.13 – 0.040 |
555 |
537 |
584 |
572 |
|
Fab 12i |
155 |
144 |
141 |
144 |
USCXM |
12" |
0.040 – 0.028 |
183 |
97 |
9 |
- |
|
USCXM |
51 |
51 |
50 |
51 |
Total(1) |
7,673 |
7,304 |
6,983 |
6,617 |
|
Total |
2,004 |
1,970 |
1,937 |
1,958 |
||
YoY Growth Rate |
5% |
5% |
6% |
5% |
|
|
|
|
|
|
||
(1) One 6-inch wafer is converted into 0.5625 (62/82) 8-inch equivalent wafer; one 12-inch wafer is converted into 2.25 (122/82) 8-inch equivalent wafers. Capacity total figures are expressed in 8-inch equivalent wafers.
CAPEX for Foundry Segment
Capital Expenditure by Year - in US$ billion |
|||||||||||
Year |
2018 |
2017 |
2016 |
2015 |
2014 |
||||||
CAPEX |
$ 0.7 |
$ 1.4 |
$ 2.8 |
$ 1.9 |
$ 1.4 |
||||||
2019 CAPEX Plan
|
|||||||||||
CAPEX spending in 2Q19 was US$131 million, leading to US$318 million in capital expenditure for the first half of 2019. Full year 2019 CAPEX is budgeted for US$1.0 billion.
Third Quarter of 2019 Outlook & Guidance
Quarter-over-Quarter Guidance:
- Wafer Shipments: To increase by 2-4%
- ASP in USD: To increase by 1%
- Profitability: Gross profit margin will be in the mid-teens % range
- Foundry Segment Capacity Utilization: high-80% range
- 2019 CAPEX for Foundry Segment: US$1.0 billion
Recent Developments / Announcements
|
Please visit UMC’s website for further details regarding the above announcements
Conference Call / Webcast Announcement
Wednesday, July 24, 2019
Time: 5:00 PM (Taipei) / 5:00 AM (New York) / 10:00 AM (London)
Dial-in numbers and Access Codes: |
|
USA Toll Free: |
1-866 836-0101 |
Taiwan Number: |
02-2192-8016 |
Other Areas: |
+886-2-2192-8016 |
|
|
Access Code: |
UMC |
A live webcast and replay of the 2Q19 results announcement will be available at www.umc.com under the “Investors / Events” section.
About UMC
UMC (NYSE: UMC, TWSE: 2303) is a leading global semiconductor foundry that provides advanced IC production for applications spanning every major sector of the electronics industry. UMC’s comprehensive foundry solutions enable chip designers to leverage the company’s sophisticated technology and manufacturing, which include world-class 28nm High-K/Metal Gate technology, 14nm FinFET volume production, specialty process platforms specifically developed for AI, 5G and IoT applications and the automotive industry’s highest-rated AEC-Q100 Grade-0 manufacturing capabilities for the production of ICs found in vehicles. UMC’s 11 wafer fabs are strategically located throughout Asia and are able to produce more than 600,000 wafers per month. The company employs approximately 18,500 people worldwide, with offices in Taiwan, China, Europe, Japan, Korea, Singapore, and the United States. UMC can be found on the web at http://www.umc.com.
Note from UMC Concerning Forward-Looking Statements
Some of the statements in the foregoing announcement are forward-looking within the meaning of the U.S. Federal Securities laws, including statements about introduction of new services and technologies, future outsourcing, competition, wafer capacity, business relationships and market conditions. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall semiconductor market and economy; acceptance and demand for products from UMC; and technological and development risks. Further information regarding these and other risks is included in UMC’s filings with the U.S. Securities and Exchange Commission. UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
Safe Harbor Statements
This release contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by use of words such as “strategy,” “expects,” “continues,” “plans,” “anticipates,” “believes,” “will,” “estimates,” “intends,” “projects,” “goals,” “targets” and other words of similar meaning. You can also identify them by the fact that they do not relate strictly to historical or current facts.
These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual performance, financial condition or results of operations of UMC to be materially different from what is stated or may be implied in such forward-looking statements. Investors are cautioned that actual events and results could differ materially from those statements as a result of a number of factors including, but not limited to: (i) dependence upon the frequent introduction of new services and technologies based on the latest developments in the industry in which UMC operates; (ii) the intensely competitive semiconductor, communications, consumer electronics and computer industries and markets; (iii) the risks associated with international business activities; (iv) dependence upon key personnel; (v) general economic and political conditions; (vi) possible disruptions in commercial activities caused by natural and human-induced events and disasters, including natural disasters, terrorist activity, armed conflict and highly contagious diseases; (vii) reduced end-user purchases relative to expectations and orders; and (viii) fluctuations in foreign currency exchange rates. Further information regarding these and other risks is included in UMC’s filings with the United States Securities and Exchange Commission. All information provided in this release is as of the date of this release and are based on assumptions that UMC believes to be reasonable as of this date, and UMC does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under applicable law.
The financial statements included in this release are prepared and published in accordance with Taiwan International Financial Reporting Standards, or TIFRSs, recognized by the Financial Supervisory Commission in the ROC, which is different from International Financial Reporting Standards, or IFRSs, issued by the International Accounting Standards Board. Investors are cautioned that there may be significant differences between TIFRSs and IFRSs. In addition, TIFRSs and IFRSs differ in certain significant respects from generally accepted accounting principles in the ROC and generally accepted accounting principles in the United States.
This release is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from the issuer or selling security holder and that will contain detailed information about the company and management, as well as financial statements.
- FINANCIAL TABLES TO FOLLOW -
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||
| Consolidated Condensed Balance Sheet | |||||||||
| As of June 30, 2019 | |||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||
| June 30, 2019 | |||||||||
| US$ | NT$ | % | |||||||
| Assets | |||||||||
| Current assets | |||||||||
| Cash and cash equivalents | 2,909 |
90,356 |
24.4% |
||||||
| Financial assets at fair value through profit or loss, current | 20 |
614 |
0.2% |
||||||
| Notes & Accounts receivable, net | 785 |
24,386 |
6.6% |
||||||
| Inventories, net | 632 |
19,629 |
5.3% |
||||||
| Other current assets | 500 |
15,522 |
4.2% |
||||||
| Total current assets | 4,846 |
150,507 |
40.7% |
||||||
| Non-current assets | |||||||||
| Funds and investments | 1,219 |
37,861 |
10.2% |
||||||
| Property, plant and equipment | 5,101 |
158,440 |
42.8% |
||||||
| Right-of-use assets | 268 |
8,315 |
2.3% |
||||||
| Other non-current assets | 476 |
14,812 |
4.0% |
||||||
| Total non-current assets | 7,064 |
219,428 |
59.3% |
||||||
| Total assets | 11,910 |
369,935 |
100.0% |
||||||
| Liabilities | |||||||||
| Current liabilities | |||||||||
| Short-term loans | 525 |
16,320 |
4.4% |
||||||
| Payables | 763 |
23,707 |
6.4% |
||||||
| Dividends payable | 223 |
6,916 |
1.9% |
||||||
| Current portion of long-term liabilities | 744 |
23,105 |
6.3% |
||||||
| Other current liabilities | 226 |
7,007 |
1.8% |
||||||
| Total current liabilities | 2,481 |
77,055 |
20.8% |
||||||
| Non-current liabilities | |||||||||
| Bonds payable | 602 |
18,686 |
5.1% |
||||||
| Long-term loans | 860 |
26,708 |
7.2% |
||||||
| Lease liabilities, noncurrent | 174 |
5,395 |
1.5% |
||||||
| Other non-current liabilities | 1,287 |
39,997 |
10.8% |
||||||
| Total non-current liabilities | 2,923 |
90,786 |
24.6% |
||||||
| Total liabilities | 5,404 |
167,841 |
45.4% |
||||||
| Equity | |||||||||
| Equity attributable to the parent company | |||||||||
| Capital | 3,775 |
117,243 |
31.7% |
||||||
| Additional paid-in capital | 1,263 |
39,240 |
10.6% |
||||||
| Retained earnings, exchange differences on translation of
foreign operations, unrealized gains or losses on financial assets measured at fair value through other comprehensive income and gains or losses on hedging Instruments |
1,459 |
45,301 |
12.2% |
||||||
| Treasury stock | (4) |
(120) |
(0.0%) |
||||||
| Total equity attributable to the parent company | 6,493 |
201,664 |
54.5% |
||||||
| Non-controlling interests | 13 |
430 |
0.1% |
||||||
| Total equity | 6,506 |
202,094 |
54.6% |
||||||
| Total liabilities and equity | 11,910 |
369,935 |
100.0% |
||||||
| Note：New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2019 exchange rate of NT $31.06 per U.S. Dollar. | |||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||||||||||
| Except Per Share and Per ADS Data | |||||||||||||||||||
| Year over Year Comparison | Quarter over Quarter Comparison | ||||||||||||||||||
| Three-Month Period Ended | Three-Month Period Ended | ||||||||||||||||||
| June 30, 2019 | June 30, 2018 | Chg. | June 30, 2019 | March 31, 2019 | Chg. | ||||||||||||||
| US$ | NT$ | US$ | NT$ | % | US$ | NT$ | US$ | NT$ | % | ||||||||||
| Operating revenues | 1,160 |
36,031 |
1,251 |
38,852 |
(7.3%) |
1,160 |
36,031 |
1,049 |
32,583 |
10.6% |
|||||||||
| Operating costs | (978) |
(30,379) |
(1,036) |
(32,177) |
(5.6%) |
(978) |
(30,379) |
(976) |
(30,321) |
0.2% |
|||||||||
| Gross profit | 182 |
5,652 |
215 |
6,675 |
(15.3%) |
182 |
5,652 |
73 |
2,262 |
149.9% |
|||||||||
15.7% |
15.7% |
17.2% |
17.2% |
15.7% |
15.7% |
6.9% |
6.9% |
||||||||||||
| Operating expenses | |||||||||||||||||||
| - Sales and marketing expenses | (31) |
(953) |
(36) |
(1,103) |
(13.6%) |
(31) |
(953) |
(29) |
(889) |
7.2% |
|||||||||
| - General and administrative expenses | (39) |
(1,251) |
(35) |
(1,083) |
15.5% |
(39) |
(1,251) |
(40) |
(1,236) |
1.1% |
|||||||||
| - Research and development expenses | (90) |
(2,787) |
(97) |
(3,027) |
(7.9%) |
(90) |
(2,787) |
(90) |
(2,807) |
(0.7%) |
|||||||||
| - Expected credit losses | (19) |
(587) |
- |
- |
100.0% |
(19) |
(587) |
- |
- |
100.0% |
|||||||||
| Subtotal | (179) |
(5,578) |
(168) |
(5,213) |
7.0% |
(179) |
(5,578) |
(159) |
(4,932) |
13.1% |
|||||||||
| Net other operating income and expenses | 54 |
1,687 |
55 |
1,719 |
(1.9%) |
54 |
1,687 |
35 |
1,073 |
57.2% |
|||||||||
| Operating income (loss) | 57 |
1,761 |
102 |
3,181 |
(44.6%) |
57 |
1,761 |
(51) |
(1,597) |
- |
|||||||||
4.9% |
4.9% |
8.2% |
8.2% |
4.9% |
4.9% |
(4.9%) |
(4.9%) |
||||||||||||
| Net non-operating income and expenses | (20) |
(617) |
(35) |
(1,095) |
(43.7%) |
(20) |
(617) |
40 |
1,247 |
- |
|||||||||
| Income (loss) from continuing operations
before income tax |
37 |
1,144 |
67 |
2,086 |
(45.2%) |
37 |
1,144 |
(11) |
(350) |
- |
|||||||||
3.2% |
3.2% |
5.4% |
5.4% |
3.2% |
3.2% |
(1.1%) |
(1.1%) |
||||||||||||
| Income tax benefit (expense) | (7) |
(202) |
11 |
331 |
- |
(7) |
(202) |
14 |
443 |
- |
|||||||||
| Net income | 30 |
942 |
78 |
2,417 |
(61.0%) |
30 |
942 |
3 |
93 |
917.6% |
|||||||||
2.6% |
2.6% |
6.2% |
6.2% |
2.6% |
2.6% |
0.3% |
0.3% |
||||||||||||
| Other comprehensive income (loss) | 24 |
743 |
85 |
2,641 |
(71.9%) |
24 |
743 |
116 |
3,614 |
(79.5%) |
|||||||||
| Total comprehensive income (loss) | 54 |
1,685 |
163 |
5,058 |
(66.7%) |
54 |
1,685 |
119 |
3,707 |
(54.6%) |
|||||||||
| Net income attributable to: | |||||||||||||||||||
| Stockholders of the parent | 56 |
1,740 |
118 |
3,659 |
(52.4%) |
56 |
1,740 |
39 |
1,201 |
44.9% |
|||||||||
| Non-controlling interests | (26) |
(798) |
(40) |
(1,242) |
(35.7%) |
(26) |
(798) |
(36) |
(1,108) |
(28.0%) |
|||||||||
| Comprehensive income (loss) attributable to: | |||||||||||||||||||
| Stockholders of the parent | 80 |
2,488 |
203 |
6,297 |
(60.5%) |
80 |
2,488 |
155 |
4,813 |
(48.3%) |
|||||||||
| Non-controlling interests | (26) |
(803) |
(40) |
(1,239) |
(35.2%) |
(26) |
(803) |
(36) |
(1,106) |
(27.4%) |
|||||||||
| Earnings per share-basic | 0.005 |
0.15 |
0.010 |
0.30 |
0.005 |
0.15 |
0.003 |
0.10 |
|||||||||||
| Earnings per ADS (2) | 0.024 |
0.75 |
0.048 |
1.50 |
0.024 |
0.75 |
0.016 |
0.50 |
|||||||||||
| Weighted average number of shares | |||||||||||||||||||
| outstanding (in millions) | 11,818 |
12,049 |
11,818 |
11,909 |
|||||||||||||||
| Notes: | |||||||||||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2019 exchange rate of NT $31.06 per U.S. Dollar. | |||||||||||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | |||||||||||
| Consolidated Condensed Statements of Comprehensive Income | |||||||||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | |||||||||||
| Except Per Share and Per ADS Data | |||||||||||
| For the Three-Month Period Ended | For the Six-Month Period Ended | ||||||||||
| June 30, 2019 | June 30, 2019 | ||||||||||
| US$ | NT$ | % | US$ | NT$ | % | ||||||
| Operating revenues | 1,160 |
36,031 |
100.0% |
2,209 |
68,614 |
100.0% |
|||||
| Operating costs | (978) |
(30,379) |
(84.3%) |
(1,954) |
(60,700) |
(88.5%) |
|||||
| Gross profit | 182 |
5,652 |
15.7% |
255 |
7,914 |
11.5% |
|||||
| Operating expenses | |||||||||||
| - Sales and marketing expenses | (31) |
(953) |
(2.6%) |
(59) |
(1,841) |
(2.7%) |
|||||
| - General and administrative expenses | (39) |
(1,251) |
(3.6%) |
(81) |
(2,488) |
(3.5%) |
|||||
| - Research and development expenses | (90) |
(2,787) |
(7.7%) |
(180) |
(5,594) |
(8.2%) |
|||||
| - Expected credit losses | (19) |
(587) |
(1.6%) |
(19) |
(587) |
(0.9%) |
|||||
| Subtotal | (179) |
(5,578) |
(15.5%) |
(339) |
(10,510) |
(15.3%) |
|||||
| Net other operating income and expenses | 54 |
1,687 |
4.7% |
89 |
2,760 |
4.0% |
|||||
| Operating income | 57 |
1,761 |
4.9% |
5 |
164 |
0.2% |
|||||
| Net non-operating income and expenses | (20) |
(617) |
(1.7%) |
21 |
630 |
1.0% |
|||||
| Income from continuing operations
before income tax |
37 |
1,144 |
3.2% |
26 |
794 |
1.2% |
|||||
| Income tax benefit (expense) | (7) |
(202) |
(0.6%) |
7 |
241 |
0.3% |
|||||
| Net income | 30 |
942 |
2.6% |
33 |
1,035 |
1.5% |
|||||
| Other comprehensive income (loss) | 24 |
743 |
2.1% |
141 |
4,357 |
6.4% |
|||||
| Total comprehensive income (loss) | 54 |
1,685 |
4.7% |
174 |
5,392 |
7.9% |
|||||
| Net income attributable to: | |||||||||||
| Stockholders of the parent | 56 |
1,740 |
4.8% |
95 |
2,942 |
4.3% |
|||||
| Non-controlling interests | (26) |
(798) |
(2.2%) |
(62) |
(1,907) |
(2.8%) |
|||||
| Comprehensive income (loss) attributable to: | |||||||||||
| Stockholders of the parent | 80 |
2,488 |
6.9% |
235 |
7,301 |
10.6% |
|||||
| Non-controlling interests | (26) |
(803) |
(2.2%) |
(61) |
(1,909) |
(2.7%) |
|||||
| Earnings per share-basic | 0.005 |
0.15 |
0.008 |
0.25 |
|||||||
| Earnings per ADS (2) | 0.024 |
0.75 |
0.040 |
1.25 |
|||||||
| Weighted average number of shares
outstanding (in millions) |
11,818 |
11,863 |
|||||||||
| Notes: | |||||||||||
| (1) New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2019 exchange rate of NT $31.06 per U.S. Dollar. | |||||||||||
| (2) 1 ADS equals 5 common shares. | |||||||||||
| UNITED MICROELECTRONICS CORPORATION AND SUBSIDIARIES | ||||
| Consolidated Condensed Statement of Cash Flows | ||||
| For The Six-Month Period Ended June 30, 2019 | ||||
| Figures in Millions of New Taiwan Dollars (NT$) and U.S. Dollars (US$) | ||||
| US$ | NT$ | |||
| Cash flows from operating activities : | ||||
| Net income before tax | 26 |
794 |
||
| Depreciation & Amortization | 791 |
24,565 |
||
| Expected credit losses | 19 |
587 |
||
| Net gain of financial assets and liabilities at fair value through profit or loss | (24) |
(758) |
||
| Changes in notes & accounts receivable | (38) |
(1,184) |
||
| Changes in inventories | (44) |
(1,363) |
||
| Changes in assets, liabilities and others | (72) |
(2,190) |
||
| Net cash provided by operating activities | 658 |
20,451 |
||
| Cash flows from investing activities : | ||||
| Acquisition of property, plant and equipment | (305) |
(9,467) |
||
| Acquisition of intangible assets | (25) |
(777) |
||
| Others | 12 |
374 |
||
| Net cash used in investing activities | (318) |
(9,870) |
||
| Cash flows from financing activities : | ||||
| Increase in short-term loans | 97 |
3,001 |
||
| Redemption of bonds | (80) |
(2,500) |
||
| Proceeds from long-term loans | 25 |
783 |
||
| Repayments of long-term loans | (81) |
(2,518) |
||
| Treasury stock acquired | (96) |
(2,972) |
||
| Others | (3) |
(82) |
||
| Net cash used in financing activities | (138) |
(4,288) |
||
| Effect of exchange rate changes on cash and cash equivalents | 13 |
406 |
||
| Net increase in cash and cash equivalents | 215 |
6,699 |
||
| Cash and cash equivalents at beginning of period | 2,694 |
83,662 |
||
| Cash and cash equivalents at end of period | 2,909 |
90,361 |
||
| Reconciliation of the balances of cash and cash equivalents at end of period : | ||||
| Cash and cash equivalents balances on the consolidated balance sheets | 2,909 |
90,356 |
||
| Cash and cash equivalents included in non-current assets held for sale | 0 |
5 |
||
| Cash and cash equivalents at end of period | 2,909 |
90,361 |
||
| Note: New Taiwan Dollars have been translated into U.S. Dollars at the June 30, 2019 exchange rate of NT $31.06 per U.S. Dollar. | ||||
1Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with TIFRSs recognized by Financial Supervisory Commission in the ROC, which is different from IFRSs issued by the International Accounting Standards Board. They represent comparisons among the three-month period ending June 30, 2019, the three-month period ending March 31, 2019, and the equivalent three-month period that ended June 30, 2018. For all 2Q19 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. Dollars at the June 30, 2019 exchange rate of NT$ 31.06 per U.S. Dollar.
2 Revenue in this section represents wafer sales
3 Utilization Rate = Quarterly Wafer Out / Quarterly Capacity
4 Estimated capacity numbers are based on calculated maximum output rather than designed capacity. The actual capacity numbers may differ depending upon equipment delivery schedules, pace of migration to more advanced process technologies, and other factors affecting production ramp-up.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190724005345/en/
Contact:
Michael Lin / David Wong
UMC, Investor Relations
+ 886-2-2658-9168, ext. 16900
jinhong_lin@umc.com
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