Synnex announced its financial report for the second quarter of 2020, with the net income of NT$1.78 billion, increased 14% from the same period last year. In the first-half of the year, net income was NT$3.59 billion, with 10% growth. In the second-quarter and the first-half of the year, Synnex's gross profit, operating income and net income all increased significantly and set a new record for past 9 years.
In the second-quarter, Synnex achieved outstanding performance in major profit indicators with double-digit growth. The proportion of high-margin products such as commercial value-added products, cloud services, e-Sports, and smart devices continued to increase, driving a 12% increase in gross profit to NT$ 3.6 billion. The Agility Project that has been vigorously implemented in the past two years has made the company's operation more effective. As a result, operating expenses have dropped by NT$240 million, resulting in operating income of NT$1.79 billion, a substantial increase of NT$620 million or 53%, and a record high for the same period for three consecutive quarters. Net income was NT$1.78 billion with an increase of NT$220 million or 14% from last year.
In the first-half of the year, Synnex’s gross profit was around NT$7.0 billion, a record high among the same period for past years. Thanks to the Agility Project, operating expenses reduced sharply by NT$630 million, resulting in operating income of NT$3.37 billion, an increase of NT$710 million or 27% YoY. Net profit was NT$3.59 billion, up 10%, and earnings per share was NT$2.15. Synnex performed brilliantly in three major operating indicators and set a new 9-year high, including gross margin, operating margin and net income margin for both of the second-quarter and the first-half of the year.
Looking ahead, although the unpredictability of the epidemic is still high, the demand for purchases related to WFH/SFH and stay-at-home economy will remain strong; and enterprises will continue to invest in digital transformation and information security protection in response to the needs of remote offices. Coupled with the launch of many new heavyweight products such as iPhone/5G mobile phones, Xbox/PS5, nVidia's next-generation GPU in the second-half, Synnex believes that the business performance of second-half will continue its momentum of the first-half.