Macronix, a major memory manufacturer, held an online legal meeting on the 25th and announced its revenue figures for the second quarter of 2019. Revenue was NT$7.479 billion (NT$, the same below), an increase of 24% from the first quarter and a decrease of 16% from the same period in 2018. Gross profit margin was 27%, an increase of 2 percentage points from the first quarter and a decrease of 18 percentage points from the same period in 2018. The net profit after tax was 264 million yuan, and the EPS per share was 0.14 yuan.

Macronix said that the operating profit in the second quarter of 2019 reached 473 million yuan, an increase of 452% compared with the first quarter, a decline of 78% compared with the same period in 2018, and the operating profit rate was 6%, an increase of 5 percentage points compared with the first quarter, compared with 2018. A decrease of 18 percentage points in the same period last year. Net profit after tax was 264 million yuan, an increase of 86% from the first quarter and an 89% decline from the same period in 2018.

In addition, in the second quarter of 2019, revenue was divided by product sales mix. Flash memory accounted for 63% of revenue, read-only memory (ROM) accounted for 29% of revenue, and foundry business group accounted for 8% of quarterly revenue. . However, due to the total loss of inventory withdrawal and listing in the first half of 2019, a total of 2 billion yuan will be reversed in the second half of the year when there is an opportunity to ship smoothly. At present, the inventory on the account is as high as 18.867 billion yuan. It is expected that the increase in shipments in the peak season in the second half of the year will digest the inventory and return to a reasonable inventory level within 10 billion yuan.

Lu Zhiyuan, general manager of Macronix, said at the French conference that the current memory price has stabilized, and the third quarter is the traditional peak season, and the demand for various product lines has increased. Among them, the current price of NAND Flash has fallen and stabilized, NOR Flash has seen a low point and has the opportunity to gradually reverse, and the ROM part is benefiting from the good sales of Nintendo game consoles from China's Tencent Invest in Macronix's performance. On the whole, Macronix is optimistic about the operation in the next 3 quarters, given the stable product prices and the opportunity to reverse the loss of price decline recognized in the first half of the year.

In 2019, Macronix's capital investment is expected to reach a scale of 14 billion yuan, mainly for the development of process technology. Among them, the SLC NAND Flash process technology will evolve from 36 nanometers to 19 nanometers. In terms of NOR Flash process technology, it will also evolve from 75 nanometers to 55 nanometers.

In terms of 3D NAND Flash, it is expected to complete the development of 192-layer 3D NAND Flash products in 2021, and initially plan to cut in products with TLC specifications. As for the impact of the Japan-South Korea trade war on the memory industry, Lu Zhiyuan pointed out that under the current situation that the relevant information is very chaotic, it is confirmed that it will not be good at this stage, but whether it will bring relevant benefits, there is no way to comment at present. .