Nuvoton held a press conference today and announced third-quarter consolidated revenue of 7.27 billion yuan and an after-tax net loss of 513 million yuan. The amount of losses has been reduced from 675 million yuan in the second quarter. Chairman Su Yuanmao said that Nuvoton has suffered losses for two consecutive quarters due to the impact of the operations of its Japanese subsidiary. The current correction of the Japanese business is close to bottoming out, and the goal is to return Japanese operations to 2023 levels in the shortest possible time.
Nuvoton announced third-quarter consolidated revenue of RMB 7.27 billion, net loss after tax of RMB 513 million, and loss per share after tax of RMB 1.22. Due to the depreciation of the U.S. dollar in the second quarter, the industry suffered an exchange loss of approximately RMB 340 million. Therefore, the amount of third-dose losses has been reduced, and the gross profit margin has increased to 35.7%, reflecting the benefits of inventory recovery brought about by inventory depletion.
Su Yuanmao said that Nuvoton has suffered losses for two consecutive quarters, mainly because in 2022 when global chip supply exceeded demand, Nuvoton invested in front-end and back-end production capacity locally in order to meet the needs of the Japanese market and customers. As a result, the capacity utilization rate was not as expected, resulting in increased production costs and putting pressure on short-term profits.
Su Yuanmao pointed out that Japan’s operating losses are related to the over-concentration of the automotive business, because Nuvoton’s automotive revenue in Japan accounts for a high proportion. However, due to the continuous decline in automotive shipments in the past two years, in the future, through rationalization of manufacturing costs and product line expansion, the goal is to return Japan’s operations to the level of 2023 in the shortest possible time.
Su Yuanmao shared that Nuvoton's main product lines in the third quarter continued to work in the automotive and industrial control fields. The new generation of NFC tag chips began mass production and was introduced for use in Japanese driver's licenses, continuing to strengthen product competitiveness. Digital power MCU has also been mass-produced and introduced to Japanese customers for electric bicycle charging pile applications, further strengthening Nuvoton's layout in the electrified infrastructure market,
Su Yuanmao explained that Nuvoton has launched a "smart cockpit" one-stop solution that uses chip components that meet automotive regulations (AEC-Q100) and can be used in vehicle communications, vehicle emergency call systems and vehicle dashboards to improve safety and user experience in the vehicle cabin. Bridge IC, which has powerful image signal processing (ISP) technology in the field of smart glasses, has been successfully introduced to Chinese smart glasses customers.
In the computer field, Su Yuanmao pointed out that the Arbel System-in-Package BMC chip NPCM8mnx, launched last quarter, demonstrates an integrated BMC subsystem that has the ability to support next-generation AI servers and data center infrastructure. The 48-volt motor driver chip has also been extended to the server field and can be applied to server fans, and has begun mass production and shipment.
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