カテゴリー: Press Releases

5月 26日, 2020

• 2020

With the efforts of the Taiwanese government and all citizens, the COVID-19 epidemic has gradually eased. Taiwan has continued to have no new local cases for more than one month. This achievement not only represents a high degree of crisis awareness and cooperation among the people of Taiwan, but also shows that the effectiveness of Taiwan ’s epidemic prevention is meaningful for all countries in the world. However, while all the Taiwanese people were busy with epidemic prevention, the epidemic situation also caused further hardship for the economically disadvantaged groups in Taiwan society.

Phison Electronics (PHISON; TPEx: 8299), a NAND controller and storage solutions provider, is in the line with the business philosophy of "Taking from the Society, Giving back to the Society", and has actively participated in various public welfare activities and assisted the disadvantaged groups in the society for a long time. During the epidemic, Phison contacted Miaoli’s TAIWAN FUND Children and Families and learned that there are quite a few economically disadvantaged families in Miaoli who have been affected by the outbreak. Therefore, Phison internally called for charitable donations and reached the fundraising goal in just 3 days. It is expected that more than 1,100 socially vulnerable families (a total of nearly 2,000 children) will receive this fundraising assistance.

Miaoli’s TAIWAN FUND Children and Families Received the Donation from T.H. Kuang, VP of Phison.

K.S. Pua, CEO and chairman of Phison, said that Phison has been stumbled all the way since founded. In addition to the efforts of all employees, the help of countless benefactors is also an important factor for Phison’s achievement. Therefore, Phison is grateful and has been giving back to the society for a long time since it started to make profits, and fulfilled its corporate social responsibilities. Phison hopes that through these donations and activities, it can set an example for others to follow, so that the public and more enterprises will pay attention to the disadvantaged groups in the society.

カテゴリー: Press Releases

3月 30日, 2020

• 2020

https://youtu.be/HaS8vibLbv0

PHISON (TWSE: 8299) today held its new building groundbreaking ceremony on 30^th March 2020, located in Zhunan town, Miaoli county. The total investment of new building construction is nearly NT$1.4bn, and the new building is expected to increase more than 13,000 in Taiwan space ping (roughly equals to 39,000 square meter), mainly utilized for parking space (2 floors basement) and for R&D center and inventory management (7 floors above ground). The new building construction is also planned to finish by end of December 2021, and start to operate in early 2022. Furthermore, the new building is estimated to increase 1,500 to 2,000 engineers to continuously maintain PHISON’s leadership as the largest independent NAND controller IC design house globally.

Started from 2007, PHISON gradually purchased lands of Guangyuan Science Park in Zhunan town, Miaoli county, for corporate operation and R&D center use. Until today, the total amount of purchased lands is more than 15,000 in Taiwan space ping (roughly equals to 49,500 square meter), which occupied nearly 10% of the land of Guangyuan Science Park. The built building space currently already reaches 20,000 Taiwan ping, and will increase up to 33,500 Taiwan ping after finishing new building, demonstrating PHISON’s strategic arrangement for future growth and resolution of investing Taiwan.

K.S. Pua, CEO and Chairman of PHISON, expressed during the ceremony speech that due to WuHan coronavirus (COVID-19) the ceremony was arranged as simple as possible to protect guests and employees’ health from coronavirus. Furthermore, PHISON now is simulating engineers to work from home by turns to minimize the impact from the coronavirus.

K.S. Pua also emphasized that the impact from coronavirus is basically postponing the end-application demands instead of disappearing. Moreover, the coronavirus-caused telework (work from home) situation directly stimulates the demands for cloud servers, video surveillance systems, online shopping, and high-end gaming markets. Additionally, 5G technology is expected to drive growth of NAND-storage-related applications such as networking infrastructure, edge computing, and autonomous vehicle, etc., according to various market intelligence firms. It is remained positive for 2020 prospects.

PHISON’s No.5 New Building Groundbreaking Ceremony @ YouTube

カテゴリー: Press Releases

3月 4日, 2020

• 2020

Given the worldwide spread of the COVID-19 Coronavirus, there have been reports in the press and from brokers concerning Phison Electronic’s (8299 TT) 2020 and 2021 earnings outlook. To provide greater transparency for our investors, we would like to clarify some key facts. In particular, a recent broker report that seems to extend a broad-brush treatment to the entire global memory device supply chain may lead to confusion amongst our investors regarding the fundamental outlook for Phison Electronics.

We would like to present the following facts:

 * Phison management has not participated in any recent interviews with the author of the above-mentioned broker report.   

 *The above-mentioned report offers a short-term macro call, assuming a negative impact from COVID-19 across the memory device supply chain.

 *Since 2016, Phison’s earnings have consistently been NT$20/share or above, and ROE has averaged 21%. We have observed one analyst’s earnings projections to be consistently low and fluctuate considerably. This analyst’s initial EPS projections for the years 2016, 2017 and 2018 were 17%, 26% and 51% lower than Phison’s actual results.

 *This analyst’s current 2020 and 2021 EPS forecasts of NT$17.1 and NT$14.3 are well below Bloomberg market consensus of NT$24.3 and NT$26.3, respectively.

 *We welcome all sell-side analysts to personally contact our team to get a fuller understanding of our outlook for 2020 & 2021, and to gain a deeper understanding of downstream memory device industry fundamentals and earnings – which are not as volatile as those for upstream producers. Please contact our investor relations team: このメールアドレスはスパムボットから保護されています。閲覧するにはJavaScriptを有効にする必要があります。

Phison Clarification:

 *The global spread of the COVID-19 virus has introduced considerable uncertainty regarding the downstream demand outlook, not only in the tech industry, but for the entire global economy.

 *Our RD center and most of our module manufacturing facilities are located in Taiwan, and all operations are currently normal. Our production levels have not been significantly impacted by the virus outbreak. Supply from our major upstream suppliers locally and overseas remains uninterrupted. Additionally, our key downstream clients have not cut order volumes and are accepting our shipments on schedule.

A Comment from Phison’s Chairman & CEO KS Pua:

According to KS Pua, Phison Chairman and CEO, “Given the current strength in demand for SSD hard drives from PC OEMs and the expected introduction of new gaming consoles by leading brands in 2H20, NAND flash pricing and demand trends are currently favorable. As a NAND flash controller IC and module system provider, we are confident that our unique business model can produce consistently strong cashflows and profits over the long-term, amidst challenges presented by competitors and memory chip market cycles. We maintain long-term partnerships with our NAND FLASH supply sources and with our downstream module customers; and expect these partnerships to remain strong in the future. We look forward to growing our business scale and market share together with our business partners this year and for many more to come.”

カテゴリー: Press Releases

1月 14日, 2020

• 2020

Phison Electronics Corp. (“Phison”) was set up in 2000 by five founders.  After over 19-year diligent management, until 2019 end Phison has over 1800 employees (almost 80% are engineers), and is playing the role as the world NAND Flash controller leader.  From Phison’s financial record, its total asset and shareholder’s equity are stably increased, and from 2005 to 2018 it has cumulatively paid dividends over New Taiwan Dollars 20.9 billion.  Therefore, from Phison’s Chairman and CEO Mr. K.S. Pua (“Mr. K.S. Pua”) and his management team’s point of view, they have performed their duties well to create considerable interests for the shareholders and employees.

About the financial case, when Taiwan Hsinchu District Prosecutors Office (“Prosecutors Office”) initiated investigation in 2016, Mr. K.S. Pua actively cooperated to the proceeding.  Mr. K.S. Pua explained to the Prosecutors Office that, the reason why he did such special business arrangements at issue was to respond to severe competition, and for Phison’s long-term development.  Mr. K.S. Pua further told that he did NOT have the motive to damage Phison and cheat the investors.  After the investigation the Prosecutors Office once issued deferred prosecution order in 2017.  Due to limitation of current laws in Taiwan, although this case was indicted in 2019, the prosecutor in the indictment still mentioned that said special business arrangement was for Phison’s interest, and the prosecutor suggested the court considering commutation in accordance with the law.  Nevertheless, from the results we can see that, Phison actually earned considerable profits and paid corresponding dividends to the shareholders.  In addition, per Taiwan’s governmental authority Financial Supervisory Commission’s instruction in 2016, Phison had ever re-prepared its financial reports at issue, and no materially abnormal result was found.

Following the Prosecutors Office’s indictment, the Securities and Futures Investors Protection Center (“SFIPC”) in Taiwan filed two civil actions in 2019 end.  The first civil action is to ask to remove Mr. K.S. Pua from director of Phison’s board position (“Removal Action”), and the other one is to claim damage against Phison, its board of directors and other co-defendants on behalf of certain investors (“Class Action”).

SFIPC’s cause of action in the Removal Action is that, Mr. K.S. Pua should not be qualified as director of Phison’s board due to his being indicted.  It is regretful about SFIPC’s allegation.  From Mr. K.S. Pua’s point of view, purpose of his making such special business arrangements was for Phison.  Phison actually earned considerable profits to bring corresponding dividends for the investors.  It was not heard from the investors to criticize Mr. K.S. Pua’s qualification as director of Phison’s board.  Now SFIPC filed the Removal Action, alleging that it is for the investors’ interest?!  It is argued that said action actually protects the investors’ interests.  Therefore, Mr. K.S. Pua actively participates in the proceeding for fair judgment.  Nevertheless, Mr. K.S. Pua still keeps his promise to serve for Phison at the CEO position, and leads Phison to move forward continuously.

SFIPC’s cause of action in the Class Action is that, Phison and the con-defendants need to reimburse certain investors’ loss approximately New Taiwan Dollars 697 million, due to their relying on Phison’s Q3 and Q4, 2014 defective financial report.  It is also regretful that, SFIPC may not consider background of Phison’s case is different from other financial cases (which usually involve misappropriation of company’s assets), but still solicits investors to join this Class Action, and applies to unreasonable formula to maximize alleged loss.  In addition, statute of limitations of this Class Action may have expired since SFIPC waited over three years until 2019 end to file litigation.  Furthermore, it is also argued that SFIPC’s claim has sufficient ground, since an investor’s investment decision usually has something to do with overall economy, the invested company’s performance and future, personal financial management and other factors.  Therefore, Phison and the co-defendants have actively defended against the alleged claim.

In sum, it is reasonably believed that the financial case and corresponding litigations do not significantly impact Phison’s current finance, business and operations.  Mr. K.S. Pua and the Phison team still will implement their duties diligently to create notable performance for the investors.  Last of all, it is appreciated for the investor’s continuously support.