Innolux has reported robust second-quarter financial results, driven by a rise in both the price and volume of TV panels. The company’s gross profit margin reached 10.04%, marking the highest single-quarter performance in two years. This growth led to a net profit of NT$1.131 billion, translating to a net profit per share of NT$0.12, effectively ending an eight-quarter losing streak.
Innolux’s consolidated revenue for Q2 stood at NT$56.861 billion, representing a quarterly increase of 12.6% and an annual increase of 3.2%. The gross profit margin improved significantly, with a quarterly rise of 5.8 percentage points and an annual increase of 9.4 percentage points. Despite ongoing inflationary pressures, the company remains optimistic about stable supply and demand in the panel market, projecting stable prices for the current quarter.
Market analysts are now closely watching AUO (2409), which is set to hold a press conference today. Following Innolux’s positive financial turnaround, there is an expectation that AUO will also report favorable results, potentially marking a recovery for both companies from the recent period of single-quarter losses.
For the first half of the year, Innolux’s consolidated revenue reached NT$107.353 billion, up 6.6% year-on-year. The gross profit margin turned positive at 7.31%, a significant recovery from the negative 2.84% reported last year. However, the Q2 profit was insufficient to offset the Q1 losses, resulting in an after-tax net loss of NT$2.973 billion for the first half, though this was an improvement compared to the same period last year.
Looking ahead, Innolux anticipates a slight decrease in large-size panel shipments by less than 3% quarter-on-quarter, with average selling prices expected to remain stable. Shipments of small and medium-sized panels are projected to grow by less than 3% quarter-on-quarter. The company acknowledges the impact of inflation on consumer purchasing behavior but remains optimistic about long-term demand driven by increased screen sizes and AI applications in IT.
Innolux plans to hold an online press conference on August 5 to discuss further operational prospects. The company aims to continue enhancing production efficiency and dynamically allocate capacity based on market trends and customer needs, while also deepening its presence in non-display fields through a dual-track transformation strategy.
