Phison’s 2Q 2020 revenue totaled NT$10.854bn, up 11% YoY, setting a new high in history over the same period. Gross profit reached NT$2.672bn, the second highest in a single quarter in history for the same period and YoY growth reached 23%. The overall gross profit margin not only maintained an excellent level of 24.62% compared to the industry in the second quarter, but also hit the second highest level of 27.56% over the same period in the first half of 2020. In addition, after-tax net profit and EPS also set the third highest in history during the same period, reaching NT$1.184bn and NT$6 respectively. In the second quarter of 2020, as COVID-19 continues to affect the global economy, in addition to benefiting from the long-term stable customer base of Phison, the slow recovery of the economies of all countries is another factor for Phison's stable performance. 

Compared with the same period in 2019 (YoY), the total shipments of SSD and eMMC controller in the second quarter of 2020 increased by 38%, and the total shipments of PCIe SSD controller increased by 111%, showing that the consumer market, driven by high-end PCIe Gen4 SSDs, still has strong demand for high-speed storage. Furthermore, in the cumulative part of the year (1Q to 2Q), the total sales of SSD and eMMC increased by 51%, the total sales of PCIe SSD increased by 170%, and the total number of memory bits (Total Bits) shipments increased by nearly 18 %, all hit a record high over the same period in history. These data show that although market demand in the second quarter was weaker than that in the first quarter, Phison still strives to manage various storage application opportunities, assist customers in solving problems, actively win customer orders, and establish a long-term trust and cooperation basis with customers. Therefore, when the market conditions are depressed, stable revenue and profit can still be maintained. 

 K.S. Pua, CEO and chairman of Phison, said that the operating expenses of the second quarter of 2020 increased by about 50% compared to the same period in 2019, mainly due to Phison’s increased R&D investment, continuous expansion of R&D headcounts, and continuous development of advanced process controllers. Furthermore, coupled with the incentive bonus and dividends compiled by the company to thank colleagues for their long-term efforts, we hope to maintain the company's long-term stable development. Looking forward to the future, Phison will also seize business opportunities globally and increase revenue and profit through continuous technological leadership. 

K.S. Pua went on to explain that compared with the same period last year (YoY), in the second quarter of 2020, the profits of strategic investment in KSI (Kingston Solutions Inc.) and Hosin Global Electronics have grown by nearly 99%. Recently, Phison has continued to adjust its strategic investment layout and structure. The purpose is to ensure that Phison can continue to stand firm in the turbulent global market, so that it can respond to various changes in the market and finally reach an invincible state, which is the ultimate company's operation goal: sustainable development.