Yageo Corporation announced its financial report and operating results for the second quarter of 2024, with revenue and market performance surpassing market expectations. Revenue saw month-on-month and year-on-year growth, and profits increased by 46% year-on-year. The management also expressed confidence, stating that the passive component industry has reached the bottom of its downturn and is now in a recovery phase, with a positive outlook for the future market.

Performance increased by 10%, with a significant surge in profit of 46%

The consolidated revenue for the second quarter amounted to NT $31.418 billion, representing a 10.2% increase from the previous quarter and a 17.4% increase compared to the same period last year. The consolidated after-tax net profit for the second quarter, attributable to the owners of our company, was NT $5.453 billion, marking an 18.3% increase from the previous quarter and a 46.6% increase compared to the same period last year.

The gross profit margin for the second quarter of 2024 was 35.1%, marking a 1.3 percentage point increase from the previous quarter and a 1.9 percentage point increase compared to the same period last year. The operating profit amounted to NT $6.482 billion, with an operating profit margin of 20.6%, representing a 3.2 percentage point increase from the previous quarter and a 1.7 percentage point increase compared to the same period last year. The net income from non-operating items was NTD 923 million.

Passive components enter the recovery period

Guoju pointed out that although the overall environment such as global inflation and international situation are still uncertain, the inventory of clients has tended towards a healthy level. The company will closely monitor the market supply and demand dynamics and continue to adjust the capacity utilization rate to cope with market conditions. It is optimistic about the operational momentum and future prospects of AI applications.

Wang Danru, General Manager of Guoju, stated that "the passive component industry has bottomed out and entered a period of recovery, with strong AI momentum beyond expectations." It is estimated that there will be better growth in the third quarter, with revenue, gross profit margin, and profit margin continuing to rise, and the utilization rate of standard and special product production capacity will also increase further.

The orders are gradually getting on track. Wang Danru stated that currently, special products and standard products are B B. The ratio (order to shipment ratio) remains around 1, and inventory has reached its lowest point in recent quarters, at a healthy level. If we look at the utilization rate, it is estimated that standard products will rise from 50% in the second quarter to 65%, and special products will slightly increase from 70% to 75%. The momentum in the third quarter is positive.

AI and consumption are hot, while automotive and industry are relatively dull

From an application perspective, the overall prosperity of the AI and consumer sectors is positive, but it will take some time for the automotive and industrial sectors to recover.

Guoju expressed optimism about the business performance and future prospects of AI applications. Currently, consumer electronics such as laptops and mobile phones, as well as SSDs and servers, are also very good; Although some projects in the automotive industry have been postponed, the overall demand is still strong. The industrial sector is expected to remain stab

About Us

Guangdong Fulong Electronic Technology Co., Ltd. is a private high-tech enterprise specializing in the research and development, manufacturing, and sales of aluminum electrolytic capacitors, certified by ISO9001, ISO14001, and ISO45001. The company has a building area of 17000 square meters and more than 50 automated production lines; The total investment is 50 million yuan (RMB), with more than 100 employees, including more than 20 engineering and technical, quality management, and production management personnel. The annual production of capacitors (4 * 5.4~16 * 21.5) is about 400 million pieces; Our products are mainly sold to domestic and international markets, and we strive to promote our company's products globally.

Jiangxi Fulong Electronic Technology Co., Ltd. is a wholly-owned subsidiary of Guangdong Fulong Electronic Technology Co., Ltd. established in Hukou County, Jiangxi Province with a total investment of 500 million yuan. It has 50 fully automated production lines and an annual output of approximately 1.2 billion capacitors (4 * 5.4~16 * 21.5).

Fulong Group has an international professional core technology research and development team for aluminum electrolytic capacitors and a global sales network. Rich experience in the design, research and development, and production management of aluminum electrolytic capacitors. The R&D team follows the technical design theory of aluminum electrolytic capacitors, complies with international and domestic legal and regulatory requirements (RoHs), and adheres to the highest international quality standards

Fulong Group has high-quality and stable raw material supply partners, and key raw materials (such as aluminum foil, electrolytic paper, etc.) are selected from well-known Japanese and Korean companies (KJCC KDKNKK, etc.), ensuring reliable and stable advantages in product quality, environmental protection, safety, and energy conservation.

Fulong Group has a group of highly qualified professional technicians and management personnel who can produce various series of sheet aluminum electrolysis products according to customer requirements. The products include high-frequency low impedance, low leakage, wide temperature, extremely low impedance, non-polar, ultra long life, medium high voltage long life, high reliability and other new types of special requirements for surface mount products; At the same time, the company's products can withstand a soldering temperature of 260 ℃, meeting the lead-free reflow soldering technology required for SMT in the whole machine factory. All technical indicators of the products have reached or exceeded the international level of similar products.

While strengthening management and expanding operational scale, Fulong Group is also committed to improving its competitiveness and customer satisfaction, continuously and steadily increasing customer and social trust, continuously meeting market demand, further optimizing environmental management and expanding social contributions, and developing together with the electronics industry.

Guangdong Follon Electronic Technology Co., Ltd.

Jiangxi Follon Electronic Technology Co., Ltd.

Address: Building 3, South District, Haishan Science and Technology Park, Hukou County, Jiujiang City, Jiangxi Province

www.follon.com

Professional manufacturer of high-quality surface mount electrolytic capacitors