EMS provider Qisda's business transformation since 2014 has sharply boosted revenue proportion for high value-added product lines, according to company chairman and CEO Peter Chen.
High value-added products' sales proportion reached about 41% in 2021 and the company is aiming at 50% as a proportion of consolidated operating profit for such products, as it starts its second-stage business transformation in 2022, Chen said at a recent investors conference.
The business transformation is through seeking manufacturers and service providers with products or services that can add value to Qisda's.
High value-added product lines/services consist of in-house-produced professional display modules and high-end surveillance video systems, medical business including two hospitals in China, medical devices and consumable medical materials, smart business solutions, networking/communication devices. Of the 2021 consolidated revenues of NT$225.961 billion (US$7.94 billion), medical business accounted for 7.3%, smart business solutions 12.7%, and networking/communication devices 12.3%.
The sales from the medical business in 2021 grew 38% on year, company vice president Harry Yang for Medical Devices Business Group said. Qisda recently invested in Concord Medical, a provider of management services for medical care operators, in a bid to step into medical care services for the elderly, Yang noted.
Qisda: Financial results, 4Q21 (NT$m) | |||||
4Q21 | Q/Q | Y/Y | 2021 | Y/Y | |
Consolidated revenues | 61,872 | 8.17% | 8.29% | 225,961 | 17.87% |
Gross margin | 13.71% | -0.83pp | -0.55pp | 14.41% | 0.42pp |
Operating profit | 1,754 | -11.50% | -16.12% | 7,361 | 11.31% |
Net profit | 995 | -28.67% | -43.50% | 8,308 | 66.55% |
Net EPS (NT$) | 0.51 | 4.22 | |||
Source: Company, compiled by Digitimes, March 2022
Qisda chairman and CEO Peter Chen (left) and president Joe Huang
Photo: Rebbeca Kuo, Digitimes, March 2022
Article translated by Adam Hwang and edited by Rodney Chan