AUO Corporation today held its investor conference and announced its consolidated financial results for the fourth quarter of 2022.
Consolidated revenues in the fourth quarter of 2022 were NT$52.65 billion (approximately US$1.7 billion), up by 5.9% quarter-over-quarter. Gross margin was -8.7%, and operating margin was -20.7%. AUO's net loss attributable to owners of the Company for the fourth quarter of 2022 was NT$10.21 billion, with a basic EPS of -NT$1.33.
For the fiscal year of 2022, consolidated revenues totaled NT$246.79 billion, down by 33.4% year-over-year. Net loss attributable to owners of the company was NT$21.10 billion, with a basic EPS of -NT$2.39.
The total panel area shipment reached around 4.32 million square meters in the fourth quarter of 2022, up by 11.5% quarter-over-quarter and down by 33.6% year-over-year. For the full year of 2022, the total panel area shipment reached around 19.17 million square meters, down by 25.4% year-over-year.
Looking back at 2022, the company's operations faced severe challenges. The demand from the robust stay-at-home economy in the past two years had gradually faded. Additionally, war, inflation and rising interest rates led to lackluster end-market demand and this, combined with high channel inventory, led to a sudden slump in panel demand from brand customers.
As a result, the company's revenues were NT$246.79 billion in 2022, a decline of 33.4% year-over-year. The profitability also turned into a loss in 2022 from an all-time high in 2021, with a net loss attributable to owners of the company of NT$21.10 billion. However, the management team has strived to maintain AUO's financial structure at a stable and healthy status, where inventory turnover days were 48 days for the fourth quarter, a decrease of 6 days quarter-over-quarter, while net debt to equity ratio was 3.3 %, which is at a healthy level.
Looking forward to 2023, global economy is forecast to grow marginally or even to decline, which makes it still a year of great challenges, according to AUO. "While we face numerous macro uncertainties, the company will actively improve its management efficiency, as well as continue to carefully control its cash flow and expenses," according to AUO. Furthermore, the company will accelerate implementing its "Biaxial Transformation" strategy, in order to have a better performance in vertical businesses, and to deliver more stable operating results amid panel industry cyclicality.
