Hana Microelectronics Reports 2024 Financial Results

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Hana Microelectronics Group ("Hana") today announced its financial results for the year ended December 31, 2024.

Key Highlights:

• Sales Revenue: Decreased by 5% year-over-year to THB 24,801 million in 2024, down from THB 26,152 million in 2023. In USD terms, sales revenue decreased by 6% to USD 703 million in 2024, compared to USD 751 million in 2023.
• Earnings from Operations: Decreased by 53% to THB 845 million in 2024, down from THB 1,787 million in 2023.
• Gross Profit: Decreased by THB 786 million, with gross margin declining to 9% in 2024 from 11% in 2023.
• Operating Margin: Decreased to 3% in 2024 from 7% in 2023.
• Exceptional Items: Included a THB 1,844 million impact, comprising a general impairment provision for Powermaster and a gain of THB 299 million from the final payment related to the termination of the Credit Suisse Asset Management (Switzerland) AG Supply Chain Fund in 2021.

The 5% decrease in group sales (THB) in 2024 was primarily attributed to the ongoing downturn in the semiconductor cycle. The 6% decline in USD sales reflected a similar trend. The average THB/USD exchange rate weakened by 1% in 2024.

• The Microelectronics divisions' sales revenue in USD decreased by 1% year-over-year.
• Sales in Lamphun decreased by 3% (THB: -2%), while sales in Jiaxing increased by 5% (THB: 7%).
• IC assembly sales declined by 20% (THB: -19%), with IC AYT sales down 19% (THB: -18%) and IC JXG sales down 20% (THB: -19%).
• Hana Technologies Inc. (HTI) reported a 15% increase in sales (THB: 17%).

The decrease in gross profit and gross margin was due to lower sales in the IC divisions and increased operational losses at IC Korea. The operating margin decline was driven by lower sales revenue, gross profit, and other income. Selling, general, and administrative (SGA) expenses, including R&D, increased by 4% in 2024.