On January 9, WT announced a consolidated revenue of 588 in December 2023NT$600 million, down NT$7 per month04%, an annual increase of 359%, a new high for the same period of the previous year; Consolidated revenue for the fourth quarter was NT$189.7 billion, up 1341%, an annual increase of 2047%；The consolidated revenue for the full year of 2023 is 5945NT$1.9 billion, an annual increase of 408%, the fourth quarter and full-year revenue hit a record high.
In 2023, WT not only achieved a record revenue high, but also reached a large acquisition.
On September 14, 2023, Wen Ye announced the acquisition of all shares of Canadian distributor Future Electronics for US$3.8 billion (about NT$121.2 billion) in cash, and obtained approval from Chinese mainland in December, which is still pending review by other national competent authorities, and is expected to be completed in the first half of 2024.
According to Zheng Wenzong, chairman of WT, there were many competitors in the early stage of the acquisition, and the two sides talked for about a few months, and it took less than half a year to finalize. This transaction is expected to be of significant significance to WT, Future Electronics and the overall **chain ecosystem.
Future Electronics' experienced management team and talented employees are highly complementary to WT in terms of product variety, customer coverage and global footprint, which is expected to help WT expand its footprint and product line in Europe and the United States, and WT's revenue and profitability will increase significantly this year and next year.
At present, in the global semiconductor channel market, Arrow, Avnet, and WPG are the top three, and WT ranks fourth. Founded in 1968 and not listed, Future Electronics has a revenue of about $6.1 billion in 2022, about one-third of WT's. Although the scale of revenue is not as large as WT, Future Electronics' profit in 2022 is about twice that of WT, and with zero debt, its profitability should not be underestimated.
In addition, WT recently handled 13.5 billion shares were increased in cash to NT$95 per share**. Shareholders WPG and Xiangshuo also participated in the subscription of the cash capital increase.
WPG said last month that the board of directors resolved to participate in the subscription of WT's cash capital increase according to the proportion of shares held by the original shareholders, and the expected investment is 15NT$1.8 billion, with a total of 1,597 subscribed shares750,000 shares, the shareholding ratio dropped to 1497%。Since WPG's investment in WT, its shareholding ratio has gradually decreased. Earlier, in November 2023, it was also announced that it would adopt a huge transaction-by-transaction method to transfer and dispose of 40,000 shares of Wenye's shares, with a transaction per share of 126NT$31, with a total transaction amount of 50NT$500 million. After the completion of the transfer, WPG's shareholding was reduced to 13710,000 sheets, retreating to the second largest shareholder, the first largest shareholder became Xiangshuo.
Xiangshuo also passed a resolution of the board of directors last month to reprimand 16NT$8.3 billion participated in WT's cash capital increase and obtained about 1770,000 sheets. After participating in this increase, the number of shares held by Xiangshuo is expected to increase to 19.7 billion shares, however, due to WT's current increase in the inflated share capital, the shareholding ratio fell slightly to 1924%。Xiangshuo** spokesman said that Wen Ye holds 19 shares for the company28% of the reinvestment, the cash capital increase case, mainly for the future operating growth and enrichment of working capital, while improving the financial structure, Xiangshuo is optimistic about WT's operating results in the past few years, but also agrees with the growth and strategic layout of the industry in which it is located, with the company's long-term investment plan, so the resolution passed to participate in its cash capital increase case.