ADATA suffered the first loss in 3 years! Inventory levels fell to near nine-year lows
In addition, ADATA's board of directors also did not allocate employees and directors' compensation, but still intends to allocate a cash dividend of 0.2 yuan per share. ADATA suffered a negative impact on earnings, and ADATA fell to 39.1 yuan in early trading, a decline of about 5.21%, a new low level of more than two months.
ADATA said that the NAND Flash and DRAM supply shortages began to reverse from the first quarter and the fourth quarter of 2018, respectively, and the decline was relatively large, so the company significantly reduced the memory inventory level last year. As of the end of last year, the company has reduced the inventory amount to 2.917 billion yuan, a year-on-year decrease of more than 50%, which is the inventory low at the end of the past nine years.
Chen Libai, chairman of ADATA, further explained that the price of memory is still relatively weak in the short term, but with the launch of new consumer electronics products in the third quarter, the memory price is expected to recover in the second half of the year under the traditional peak season effect. It is pointed out that the company has deployed a number of high-margin emerging businesses in recent years, such as e-sports, electric vehicle motors, on-board and industrial control applications. It is expected that investment will continue to fertilize in the second half of the year, and the proportion of operations will gradually increase in the next 1-2 years.
In addition, Chen Libai is also optimistic about the demand for memory in the 5G, AI, Internet of Things and automotive electronics boom, and the global mobile phone brand of 5G mobile phones have been asked the market, will become the next wave of growth momentum of the memory industry.
ADATA's revenue for the fourth quarter of last year was 6.823 billion yuan, down 22.05% quarter-on-quarter, 17.59% year-on-year, gross margin 5.23%, quarterly decrease of 1.45 percentage points, annual decrease of 8.13 percentage points, post-tax loss of 396 million yuan, loss per share of 1.81 yuan. , offset the first three quarters of profit. Last year's annual revenue was 31.457 billion yuan, an annual decrease of 2.46%, a gross profit margin of 6.05%, an annual decrease of 7.84 percentage points, and a post-tax loss of 179 million yuan, a loss from 2017, a loss of 0.82 yuan per share.