Acter Group Co., Ltd. (hereinafter “Acter*”, Ticker: 5536 TT) announced August 2023 revenue. On a consolidated basis, the group’s August 2023 revenue increased 2% MoM, decreased 29% YoY, respectively to NT$1.96 billion. The slowdown in revenue momentum is primarily due to the high base year last year and the completion of short-term projects that were in progress. However, the group has been gaining momentum in new order acquisition, and project execution is proceeding smoothly. We anticipate continued recognition of revenue in accordance with the established schedule in the future. The accumulated revenue for the first eight months of 2023 decreased by 9%, reaching NT$15.85 billion. Despite the persistent challenges and uncertainties in the macro environment, Acter* take a proactive approach to mitigate the impact. In terms of business operations, Acter* continues to address customer needs, solidify relationships with existing clients, and continuously explores opportunities in new customer segments and industries to maintain stable growth in company business and profitability. On the execution front, we maintain a strong focus on constructing value-added projects, optimizing engineering processes, and promoting energy-efficient and environmental-friendly initiatives to create value for our clients and offer comprehensive solutions. From a financial perspective, we have enhanced client-side financial risk management and expedite accounts receivable collection. These efforts ensure a steady improvement in project quality, bolster the group's order intake, keep project execution on track, and guarantee continued recognition of progress in the future.

2023 Outlook:

While most semiconductor giants are revising their capital expenditure plans in response to inventory adjustments, Chinese mainland customers continue to invest not only in mature production but also actively pursue third-generation semiconductors. In fields such as AI, smart vehicles, electric cars, and renewable energy, the semiconductor market continues to expand, with industry players actively upgrading their technologies to seize a larger share of the AI applications market. With technological prowess as its backbone, Acter* aggressively seeks new orders. Looking ahead, Acter* has accumulated backlog totaling over NT$34 billion, which is sufficient to support the group's operations for the next 1-2 years. Under the impact of geopolitics and the pandemic, investments driven by global supply chain restructuring will continue to unfold across various industries. As a Taiwanese company with manufacturing as its core competency, it will play a pivotal role in shaping a "resilient supply chain" during this development wave. Acter*'s ongoing strategy of diversifying its business across multiple industries, regions, and trades will contribute to increasing its market share and strengthening its order book in the investment surge in Taiwan and Southeast Asia.

With a focus on sustainable business practices, Acter* emphasizes three main pillars: environmental sustainability, intergenerational well-being, and value co-creation, aligning with the United Nations Sustainable Development Goals. In terms of corporate governance, Acter* has consistently ranked in the top 5% of listed companies in corporate governance evaluations for eight consecutive years. The company also strengthens its commitment to sustainability by linking employee compensation to ESG performance through board-approved resolutions. Addressing extreme climate conditions, Acter* actively engages in carbon reduction, energy efficiency, waste reduction, and water conservation efforts, promoting a net-zero sustainability approach and providing energy-efficient carbon reduction solutions to its customers. Within its sustainable supply chain, Acter* combines customer demands with expertise to build a sustainable value chain and promote supplier development initiatives. In the future, Acter* will continue its dedication to creating more environmentally friendly products, collaborating with customers to achieve carbon neutrality goals.

*The number is unaudited.

Acter* Monthly Sales (Aug. 2023)：                         

Unit: NTD thousand；%

IR Contact:

Acter Assistant Vice President  Miss Tsao  (04)2261-5288  IR@acter.com.tw

IPR Advisors   Tim Chen   (02)2758-0339  ir@ipradvisors.com