In the three months ended March 31, 2023, the company saw unaudited consolidated revenue fall by 25.8% to US$284.6 million.

Shipment volumes for the quarter were down by 31.4% year-on-year while average selling price was up by 7.5%. Stella noted that the loss in shipment volume came down to a high comparison base, as the group’s manufacturing business was running at a full utilisation rate during the corresponding period of last year.

Despite these drops, Stella said that its unaudited consolidated profit after tax is in line with expectations and it remains confident in achieving its medium-term goals of an operating margin of 10% and low-teens annualised growth rate on profit after tax by the end of 2025.

Group CEO Chi Lo-Jen said: “While the revenue in the first three months of 2023 decreased, our profit after tax was in line with our expectations due to better customer mix and operational efficiencies.

“We expect our order book in the first half of the year to be impacted as some of our major customers deal with inventory challenges. That said, the removal of Covid-19 restrictions in China from late 2022 may lead these customers to increase their ordering activity in the second half of the year.”