Compal's capital expenditure plan for 2018 will reach 6 billion yuan, an increase of more than 70% compared with 3.4 billion yuan in 2017. Compal pointed out that half of the capital expenditure will be applied to automation. The industry pointed out that the labor environment in the mainland has changed, and labor costs have increased. Automation is the trend, and Compal undertakes the Apple iPad and Apple Watch. The customer requires a higher level of automation. This forecasts that Compal's shipments of the above-mentioned 2 products will be significantly increased in 2018. The working environment in China has changed. In the manufacturing season, the manufacturing industry often reported difficulties in recruiting. Compal’s announcement of the fourth quarter of 2017 and its annual financial report showed that the gross profit margin and operating profit ratio both declined. Compal pointed out that the exchange rate of the Taiwan dollar and the difficulty of recruitment in the mainland led to increased costs. This is the reason, and Compal also plans to introduce large-scale automation equipment in 2018 to increase its production efficiency. Compal's financial report for the fourth quarter of 2017 was released. Revenue for the fourth quarter was 250.844 billion yuan, a 10% increase for the quarter, also compared to the same period in 2017. An increase of 16% led to a decline in profit, which was mainly due to a gross margin of only 3.3%, which was 0.1% lower than the previous quarter's decline, and also a 0.8% decrease from the same period in 2017. The operating profit rate was 1.0% in the fourth quarter, also down from the previous quarter. 0.3%, compared Declined 0.1% in the same period in 2017. In the fourth quarter of Compal's industry, the pressure on the industry declined due to the declining gross profit margin and operating profit rate. Even if the industry’s profits increased by 143% from the previous quarter, it still couldn’t be recovered, resulting in a decrease in pretax net profit in the fourth quarter. 25.87 billion yuan, quarterly reduction of 13%, year-on-year decrease of 31%; post-tax net income of 2.09 billion yuan, quarter reduction of 10%, year-on-year decrease of 20%; EPS of 0.48 yuan. For the whole year, Compal's full-year revenue It was RMB887.657 billion, an increase of 16% year-on-year. Its operating profit was RMB31.965 billion, which was a year-on-year decrease of 3%. Gross profit margin was 3.6%, a decrease of 0.7 percentage points from the previous year. Operating profit was RMB 9.208 billion, a year-on-year decrease of 17%. The former net profit was 8.114 billion yuan, a year-on-year decrease of 31%, after-tax net profit was 5,750 million yuan, a year-on-year decrease of 29%, and the annual EPS was 1.32 yuan. Compal totally disregarded the loss of Leda in the second quarter of 2017, in 2017. A total of 3.588 billion yuan was recognized in the year, affecting the EPS of 0.82 yuan. The company intends to maintain a stable amount of interest payments. Therefore, it intends to restore the original loss due to LeTV, and then carry out interest distribution. If the company according to the annual interest rate of about 5 to 6 In 2017, the dividend-per-share ratio will reach 1.07 to 2.1 yuan per share. However, this case still needs the approval of the board of directors. The company pointed out that in the fourth quarter of 2017, the gross profit margin declined, mainly due to mainland recruitment. This increase, and the change in customer product mix, resulted in pressure on gross margins. In the fourth quarter of each year, marketing and R&D expenses will be higher. As a result, the operating profit rate also declined compared with the previous quarter and the previous year. Chen Ruicong further added, NT$ The exchange rate is another main cause of the decline in gross profit margin. The industry pointed out that Compa's Apple Watch, which started shipping in the fourth quarter of 2017, was also the main cause of the decline in gross profit margin. The original Apple Watch was exclusively manufactured by Quanta in 2017. After the annual sales volume was enlarged, it began to be included in Compal as the second supplier. In the past, Quanta continued to lose money and did not make profit until 2017. It showed that the product was not easily assembled, and Compal shipped a small scale. Even more difficult, Chen Ruicong was reluctant to comment on single customers and single products. It only stated that there were new product shipments in the fourth quarter of 2017, and the initial investment did put pressure on the gross margin of Compal’s non-PC product line operations. The new customer's new product will increase in volume from the end of the second quarter of 2018 to the third quarter, and due to insufficient production capacity in some plants, it will be transferred to other plants for production and bilateral transfer. It is also expected to be completed in the second quarter. Chen Ruicong said that the previous few The scale of non-PC operations did not come up. Some products came out in 2017. The volume was unstable. Customers fluctuate greatly, which also caused orders to be affected. In terms of production efficiency, there is limited room for improvement. With non-PC product lines increasing , Scale expansion will easily bring economic benefits into play, and will contribute to gross margins to a certain extent. In the fourth quarter of 2017, driven by smart wearable devices, tablet computers, smart audio and other products, Compal’s non-PC revenue increased to 33% also drove annual non-PC revenues to officially exceed 30%. Compal executive vice president Chen Zhaocheng pointed out that the growth of smart wearable devices will be apparent in 2017, and the performance of smart audio shipments is also worth looking forward to. Compal currently The major customers of smart audio include brands related to Amazon and Google’s personal voice systems. As for the smart phone segment, Compal was affected by bad debts in 2017 by LeTV, and Chen Ruicong repeatedly referred to it as “a snake bite”. Smart phone OEMs have a very conservative approach. Chen Zhaocheng pointed out that at present, smart phones maintain 2 large and 1 small customers, and their operations and profits will be balanced. They will no longer be aggressive. In fact, the mainland smartphone market is saturated. , Emerging market growth depends on India, market growth momentum is not clear.
