DFI Inc. Revenue Exceeds NTD Ten Billion Threshold in 2021 and Earns NTD 5.38 Per Share

Promising Quarterly Growth in Operational Performance.

DFI Inc., a leader in industrial computers, announced during its online investor conference on March that revenue in 2021 exceeded the NTD ten billion threshold for the first time, with earnings per share (EPS) reaching NTD 5.38. This year, supported by strong product demand DFI is steadily receiving orders. The impacts on gross profit from factory relocation and the shortage in parts and components reached their most severe level in the fourth quarter of last year. Consequently, both revenue and profitability are looking good this year and quarterly growths are anticipated.

According to Vice Chairman Mr. Michael Lee, with new infrastructures gaining prominence during the trend towards automated production and digital transformation, smart applications became the rigid demand over the long term. DFI has benefited from this development and has received many orders. The book-to-bill ratio (B/B ratio) reached 1.85 in 2021. As the shipping momentum grows, it is estimated that the B/B ratio for the first half of the year will be further normalized and embedded boards, networking, industrial automation and graphics will be the four major fields of application and the next long-term developmental goal.

DFI points out that thanks to the M&A effect brought about by the acquisition of Brainstorm (Skytech Gaming), a US distributor of computers for PC Gamers and Fintech applications and the increased non-operating profits from the sale of the DFI Xizhi plant last year, the net after-tax profits attributable to the parent company throughout the year came to NTD 616 million, reflecting an annual growth of 52% with earnings per share reaching NTD 5.38. The consolidated revenue in the fourth quarter climbed significantly to NTD 4.192 billion and showed a quarterly increase of 12% and an annual growth of 100%.

DFI's Q4 gross profit margin was affected by the continued material shortages and price increases from upstream suppliers. In addition increased manufacturing costs were incurred due to factory relocation. Gross profit was NTD 662 million, and the gross profit margin was 15.8%. The new factory has now officially started operations and the rising cost of raw materials is gradually being reflected in the prices paid by customers. The issue of shortages in materials is expected to improve and the gross profit margin will continue to grow and be reflected in future profitability.

Factory automation, in-vehicle applications and smart healthcare are three target vertical markets of DFI. Considering the demand for and diversity of smart applications on the market apart from the current focus on automation, 5G, and AIoT, DFI will extend its market presence to applications such as green energy, information security and Fintech. DFI will also collaborate with businesses under Qisda BSG in providing a platform that combines software, hardware and service to help businesses with expedited transformation and deployment and to fulfill the needs of customers with different applications. The throughput will continue to be enhanced in order to take advantage of new business opportunities.

DFI's aggregated consolidated revenue was NTD 13.21 billion for January through December 2021 reflecting an annual increase of 58.2% from NTD 8.35 billion in 2020. The earnings per share were NTD 5.38 in 2021 with expected dividends at NTD 3.6 per share. When calculated based on the closing price of NTD 60.5 on Friday this represents a dividend yield of 5.95%. The return on equity (ROE) throughout the year was 14.8%.

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