Motech turned around in second quarter due to leading technology
【Tainan/Taiwan – August 10, 2020】
In the second quarter, Motech reported a consolidated revenue of NT$1,021 million, up 37% compared with the first quarter. Gross margin turned into a positive 2% in the first quarter, and reached double-digit of 16% in the second quarter, which hit a record high in the past decade. Motech delivered net income of NT$183 million, earnings per share of NT$0.51 and were ahead of schedule to turn in a profit.
The second quarter demonstrated the strength of our increasing solar module shipment and was driven by significant increase of module efficiency which reduced the unit cost of module. The leading high-end technology saved the cost of the solar system to 2~3% and was welcomed by the customers. Meanwhile, the sales of module products reached 80% of total revenue in the second quarter due to the recent booming installations of solar projects.
The margin of 1H 2020 was 10%, net income after tax improved significantly to NT$89 million, and earnings per share was NT$0.24. Due to the cost control, we reduced the operating expense to NT$94 million. Furthermore, we recently sold Fab1 to payback bank loan and decreased interest expense which dropped debt ratio to 62% and improved the financial structure.
Our results in the second quarter were strong. We maintained our leading position by continually devoting resources towards the development of cutting-edge technologies, the Top-Con Cell, which we develop with Industrial Technology Research Institute (IRTC), assembled in modules with efficiency more than 21%. We expect to accelerate the mass production of our innovative products in Q4. We believe this innovative product is more suitable for the land usage of densely populated Taiwan.
We have expanded our core value into downstream business with our high-efficiency product. The high-efficiency module has the capability to resist the strong wind and corrosion which is suitable for the climate in Taiwan. With more than 30 power plants and 20 in developing, Motech takes one step at a time to develop solar power to support energy transition policy and usage of land. We commit to run an environment friendly business.