Darfon Electronics (8163) Q4 2024 earnings summary

Executive summary

• 4Q24 revenue reached NT$6,040 million, up 12.9% year-over-year, but down 0.3% sequentially from 3Q24.

• Net income for 4Q24 was NT$48 million, a 72.3% decrease year-over-year, with basic EPS at NT$0.40.

• Consolidated financial statements for 2024 and 2023 were audited by KPMG, with an unmodified opinion confirming compliance with Taiwan-IFRS.

• The group operates in intelligent products and green energy segments, with an 80% stake in Grofa Action Sports GmbH acquired in October 2024 to expand E-Mobility in Europe.

• Annual profit margin improved due to an optimized product mix.

Financial highlights

• 2024 net sales were NT$21,700,226 thousand, down 16% year-over-year from NT$25,791,522 thousand.

• Net income attributable to shareholders was NT$618,567 thousand, a 62.5% decrease from NT$1,650,873 thousand in 2023.

• Basic EPS was NT$2.22, down from NT$5.91 in 2023.

• Gross margin for 4Q24 was 17.7%, slightly down from 18.2% in 4Q23; annual gross margin remained stable at 18%.

• Operating income for 4Q24 was NT$25 million, down 91.6% year-over-year; annual operating income dropped to NT$573,413 thousand.

Outlook and guidance

• Focus on strengthening operating and free cash flow for sustainable growth.

• High dividend policy maintained, with a cash dividend of NT$2.0 per share (total NT$560,000 thousand) approved for 2024.

• Management expects no significant impact from new IFRS amendments effective in 2025.