Acter Group Co., Ltd. (hereinafter “Acter*”, Ticker: 5536 TT) announced Oct. 2023 revenue. On a consolidated basis, the group’s Oct. 2023 revenue decreased 22% MoM, 13% YoY, respectively to NT$2.02 billion. The accumulated revenue for the first ten months of 2023 decreased by 9%, reaching NT$20.46 billion. As projects gradually approach completion, and in comparison to the high base period from the previous year, revenue momentum has slowed. Nevertheless, Acter* remains committed to cost reduction and efficiency improvements to sustain profit growth. Acter* can mitigate risks thanks to advantages in procurement, encompassing equipment and raw materials. Despite significant customer inventory adjustments and a slowdown in fab construction during the second half, we still have a substantial number of new projects in the testing and packaging sector, including advanced CoWoS packaging.

Acter* is continuously expanding its reach into new areas such as data centers, biotech, and pharmaceuticals to mitigate the impacts of industry cycles. Furthermore, Acter* closely monitors industry developments and aggressively expands into Southeast Asian markets. This strategy not only diversifies geographic risks but also provides assistance and support to customers during the early stages of project evaluation. Currently, Southeast Asia accounted for 7% of the total revenue in the first three quarters of 2023. Looking ahead, the company will allocate more resources to this region while also reducing its exposure to Mainland China.

Looking ahead to the fourth quarter, Acter* has seen an improvement in order momentum by recently securing a new electrical and mechanical engineering contract with a subsidiary of Wistron. With an accumulated backlog of over NT$34 billion, the operating outlook remains stable and optimistic. In 2024, the recovery of wafer fab equipment (WFE) is expected, as semiconductor inventory adjustments conclude and demand increases for high-performance computing (HPC), memory, and other applications. According to SEMI, global WFE for 2023 is estimated at US$84 billion, with a potential 15% increase projected for the next year. Leveraging group synergies, Acter* will aggressively pursue new orders from customers, aiming for significant growth.

Acter* places a strong emphasis on environmental sustainability issues. The company has successfully reduced total greenhouse gas emissions by 11,900 tonnes CO2e, equivalent to the annual CO2e absorption of 992,000 trees. Acter* has also maintained a record of eight consecutive years with zero environmental fines and achieved a growth of 61.83% in green purchasing. To incorporate green management into daily operations, Acter* has established short, medium, and long-term plans for various environmental metrics, actively contributing to the global fight against climate change. Moreover, Acter*'s commitment to ESG (Environmental, Social, and Governance) practices not only aligns with environmental goals but also benefits business expansion. Customers are leveraging Acter*'s expertise in green engineering to drive entire industries toward achieving net-zero emissions objectives.

*The number is unaudited.

Acter* Monthly Sales (Oct. 2023)：                         

Unit: NTD thousand；%

2023 Dividend Semi-Annual Payout Schedule (par value NT$5/share)

The company's par value per share is NT$5. If converted to 10 par value per share, the distribution is equivalent to NT$9 in cash dividends.

IR Contact:

Acter                Jeff Liang   (04)2261-5288  IR@acter.com.tw

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