Genes Tech Group Announces 2022 Q1 Results

Total revenue reached approximately NTD236.69 million

Revenue from the trading of used SME and parts increased by approximately 15.69% to approximately NTD 145.48 million

2022 Q1 Results Highlights

• The total revenue reached approximately NTD236.69 million
• Total comprehensive income for the period attributable to owners of the Company amounted to approximately NTD22.84 million
• Revenue from the trading of used SME and parts increased by approximately 15.69% to approximately NTD 145.48 million
• Basic earnings per share were NTD2.37 cents

HONG KONG, May 10, 2022 /PRNewswire/ -- Genes Tech Group Holdings Co. Ltd ("Genes Tech Group" or "The Group", Stock Code: 8257.HK) announces its Q1 results for the three months ended 31 March 2022 ("During the period"). During the period, the total revenue of the Group amounted to approximately NTD236.69 million. Total comprehensive income for the period attributable to owners of the Company amounted to approximately NTD22.84 million. Basic earnings per share were NTD2.37 cents.

During the period, revenue from the turnkey solutions amounted to approximately NTD91.21, accounting for approximately 38.54% of the Group's total revenue. The revenue from trading of used SME and parts amounted to approximately NTD145.48 million, representing an increase of approximately 15.69% as compared to the corresponding period of last year, accounting for approximately 61.46% of the Group's total revenue. During the period under review, revenue from the domestic business in Taiwan amounted to approximately NTD180.28 million, accounted for approximately 76.17% of the Group's total revenue. The Group will continue to take advantage of the transfer order effect caused by the continued tension in the geopolitical situation to actively develop and consolidate the good and close cooperative relationship with existing international customers, thereby promoting the growth of the Group's business revenue from outside Taiwan.

At the beginning of 2022, thanks to the accelerated digital transformation of the overall economy, couple with the strong demand for semiconductor products in downstream fields such as 5G communications, consumer electronics, Internet of Things ("IoT"), and automotive electronics, semiconductor supply and demand around the world will remain tight. According to the "Global Semiconductor Industry Outlook 2022" released by KPMG and the Global Semiconductor Alliance (GSA), more than half of semiconductor industry players believe that the global semiconductor supply and demand imbalance is expected to continue until 2023 before it has a chance to be alleviated. According to the "IC Insights" report by the market research and investigation agency, it is expected that the global semiconductor output value will reach USD680.6 billion in 2022, representing an increase of 11% as compared to last year. At the same time, in the face of continued geopolitical tension and the imbalance of global semiconductor supply and demand, countries have begun to realise the importance of owning a complete semiconductor supply chain. The localised deployment of the semiconductor industry has become a global trend.  According to the 2022 Quarterly Report of the International Semiconductor Industry Association (SEMI), it is expected that the global investment in fab semiconductor equipment will reach USD107.0 billion in 2022, representing an increase of 18% as compared to last year. In terms of semiconductor equipment, Taiwan's investment will reach USD35.0 billion, representing an increase of 56% as compared to last year. The Group will pay close attention to changes in the market environment, respond prudently and quickly to market changes, seize development opportunities, and actively explore market development opportunities.

Mr. Yang Ming-Hsiang, Chairman and Chief Executive Officer concluded: "In general, downstream markets such as 5G deployment, consumer electronics, Internet of Things ("IoT") devices, cloud computing, and artificial intelligence (AI) are booming, and driven by the growth momentum of vehicle electrification, the global supply and demand imbalance for semiconductor chips will continue in 2022. According to the analysis of the Taiwan Semiconductor Industry Association and the International Institute of Industrial Science of the Industrial Technology Research Institute, the global semiconductor capacity shortage is expected to continue until 2023 and estimates that the output value of the semiconductor industry in Taiwan will increase by another 17.7% this year to NTD4,806.2 billion, setting the new historical record. In response to changes in the market environment, the Group will actively seize development opportunities, and strive to keep up with the research and development of investment products and technological improvement, to enhance the core competitiveness of the Group.

About Genes Tech Group Holdings Co. Ltd (Stock Code: 8257.HK)

Genes Tech Group Holdings Co. Ltd is turnkey solution provider and exporter of used SME and parts in Taiwan. Since the commencement of its business in 2009, the Group mainly engaged in providing turnkey solution of SME and parts to its customers and modifying and/or upgrading the semiconductor equipment of its production systems according to customers needs. In addition, the Group is also engaged in the trading of used SEM and parts. The used SME and parts supplied by the Group included furnaces, clean tracks and other related items, which were used at the front-end of the semiconductor manufacturing process, wafer fabrication such as deposition, photoresist coating and development, and these were extensively applied in mobile phones, game consoles, DVD players, automotive sensors and other digital electronic products.