奇景光電 (HIMX) 2019 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Himax Technologies Fourth Quarter and Full Year 2019 Earnings Call.

女士們，先生們，感謝您的支持，歡迎參加 Himax Technologies 2019 年第四季度和全年財報電話會議。

(Operator Instructions).

（操作員說明）。

Please be advised today's conference is being recorded.

請注意，今天的會議正在錄製中。

(Operator Instructions).

（操作員說明）。

I would now like to hand the conference over to your speaker, Maili Bergman, Managing Director of MZ Group.

我現在想把會議交給你的演講者，MZ Group 董事總經理 Maili Bergman。

Please go ahead.

請繼續。

Thank you so much.

太感謝了。

Welcome, everyone, to Himax's Fourth Quarter 2019 Earnings Call.

歡迎大家參加奇景光電 2019 年第四季度財報電話會議。

Joining us from the company are Jordan Wu, President and Chief Executive Officer; and Ms. Jackie Chang, Chief Financial Officer.

加入我們的還有總裁兼首席執行官Jordan Wu；和首席財務官 Jackie Chang 女士。

After the company's prepared remarks, we will have allocated time for questions in a Q&A session.

公司準備好發言後，我們將安排時間進行問答環節。

If you have not yet received a copy of today's results press release, please e-mail himx@mzgroup.us, or access the press release on financial portals or download a copy from Himax's website at www himax.com.tw.

如果您尚未收到今天的業績新聞稿副本，請發送電子郵件至 himx@mzgroup.us，或訪問財經門戶網站上的新聞稿或從 Himax 的網站 www hemax.com.tw 下載副本。

Before I begin with the formal work, I'd like to remind everyone that some of the statements in this conference call include statements regarding expected future results, financial future results and industry growth and are forward-looking statements that involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this conference call.

在開始正式工作之前，我想提醒大家，本次電話會議中的一些陳述包括關於預期未來結果、財務未來結果和行業增長的陳述，並且是涉及許多風險和可能導致實際事件或結果與本次電話會議中描述的情況或結果大不相同的不確定性。

Factors that could cause actual events or results to differ materially from those described in this conference call may include, but are not limited to, general business and economic conditions, the state of the semiconductor industry, market acceptance and competitiveness of the driver and non-driver products developed by Himax, demand for end-use application products, the uncertainty of continued success in technological innovations as well as the other operational and market challenges and other risks described from time to time in the company's SEC filings, including those identified and in section entitled Risk Factors in its Form 20-F for the year ended December 31, 2018, filed with the SEC in March of 2019, except for the company's full year of 2018 results which were provided in the company's 20-F and filed with the SEC on March 29, 2019.

可能導致實際事件或結果與本次電話會議中描述的因素產生重大差異的因素可能包括但不限於一般商業和經濟狀況、半導體行業的狀況、市場接受度和驅動力的競爭力以及非Himax 開發的驅動產品、對最終用途應用產品的需求、技術創新持續成功的不確定性以及其他運營和市場挑戰以及公司不時在美國證券交易委員會提交的文件中描述的其他風險，包括那些確定和2018 年 3 月向 SEC 提交的截至 2018 年 12 月 31 日止年度的 20-F 表格中的風險因素部分，但公司 20-F 中提供並提交給證券交易委員會的公司 2018 年全年業績除外美國證券交易委員會於 2019 年 3 月 29 日。

The financial information included in this conference call is unaudited and consolidated and prepared in accordance with IFRS accounting.

本次電話會議中包含的財務信息未經審計，並根據國際財務報告準則會計進行合併和編制。

Such financial information is generated internally and has not been subjected to the same review scrutiny, including internal auditing procedures and external audits by an independent auditor, to which we subject our annual consolidated financial statements and may vary materially from those audited consolidated financial information for the same period.

此類財務信息由內部生成，並未接受相同的審查審查，包括獨立審計師的內部審計程序和外部審計，我們對年度合併財務報表進行審查，並且可能與這些經審計的合併財務信息存在重大差異同一時期。

The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

公司不承擔因新信息、未來事件或其他原因而公開更新或修改任何前瞻性陳述的義務。

I will now turn the call over to Ms. Jackie Chang, CFO of Himax.

我現在將把電話轉給 Himax 的首席財務官 Jackie Chang 女士。

The floor is yours, Jackie.

地板是你的，傑基。

Thank you, Maili, and thank you, everybody, for joining us.

謝謝你，麥莉，謝謝大家加入我們。

In today's call, we will first review Himax's consolidated financial performance for the fourth quarter followed by the first quarter 2020 outlook.

在今天的電話會議中，我們將首先回顧奇景光電第四季度的綜合財務業績，然後是 2020 年第一季度的展望。

Jordan will then give an update on the status of our business.

喬丹隨後將提供我們業務狀況的最新信息。

After which, we will take questions.

之後，我們將回答問題。

We will review our financials on both IFRS and non-IFRS basis.

我們將根據國際財務報告準則和非國際財務報告準則審查我們的財務狀況。

The non-IFRS financials exclude share-based compensation and acquisition-related charges.

非國際財務報告準則財務不包括基於股份的薪酬和與收購相關的費用。

We preannounced preliminary key financial results for the fourth quarter on January 7, 2020, as the revenue, gross margin and EPS of the quarter all exceeded our guidance issued on November 7, 2019.

我們於 2020 年 1 月 7 日預先公佈了第四季度的初步主要財務業績，因為該季度的收入、毛利率和每股收益均超過了我們在 2019 年 11 月 7 日發布的指引。

Revenue and gross margin were in line with the pre-announced results while EPS were at the high end of the range.

收入和毛利率與預先公佈的結果一致，而每股收益處於該範圍的高端。

For the fourth quarter, we recorded net revenues of $174.9 million, an increase of 6.5% sequentially.

第四季度，我們錄得淨收入 1.749 億美元，環比增長 6.5%。

And a decrease of 8.4% compared to the same period last year.

與去年同期相比下降了8.4%。

Revenues were better than our guidance of flat quarter-over-quarter, both display driver and non-driver businesses contributed to the better than guided sales.

收入好於我們對季度環比持平的指導，顯示驅動器和非驅動器業務都對好於指導的銷售做出了貢獻。

Gross margin was 20.6%, exceeding the prior guidance of a slight increase compared to third quarter's 19.5%.

毛利率為 20.6%，超過了與第三季度的 19.5% 相比略有增長的先前指導。

A more favorable product mix amongst small display products, improved WLO factory utilization and higher-than-expected engineering fees from new project engagements, enhance the gross margin for the fourth quarter.

小型顯示器產品中更有利的產品組合、WLO 工廠利用率的提高以及新項目合同的工程費用高於預期，提高了第四季度的毛利率。

IFRS profit per diluted ADS was $0.006, exceeding our guidance of a loss of $0.03 to $0.045 Stronger sales and improved gross margin, both contributed to the better-than-expected earnings.

IFRS 每股攤薄 ADS 利潤為 0.006 美元，超出我們對虧損 0.03 美元至 0.045 美元的指引

In addition, we booked a revaluation gain of $3.8 million from an investment we made in an AI start-up during November 2017.

此外，我們從 2017 年 11 月對一家人工智能初創公司的投資中獲得了 380 萬美元的重估收益。

The revaluation gain was not included in November guidance.

重估收益未包含在 11 月指引中。

Non-IFRS profit per diluted ADS was $0.009, exceeding our guidance of a loss of $0.027 to $0.042 cents.

每攤薄 ADS 的非 IFRS 利潤為 0.009 美元，超出了我們對虧損 0.027 美元至 0.042 美分的指導。

Revenue from large display drivers were $57.9 million, up 15.6% sequentially, and down 22% year-over-year.

來自大型顯示驅動器的收入為 5790 萬美元，環比增長 15.6%，同比下降 22%。

The sequential growth was driven by Chinese panel customers' ramping up new LCD fabs and their building of inventories in anticipation of growing demand and price hike in 2020.

連續增長是由中國面板客戶增加新的 LCD 晶圓廠以及他們為 2020 年需求增長和價格上漲而增加庫存推動的。

The revenue was, however, lower then level of the last quarter of 2018 when the production outputs of panel makers reached the peak.

然而，當面板製造商的產量達到峰值時，收入低於 2018 年最後一個季度的水平。

Since then, they have cut back their production every quarter to address the overall weak TV demand and industry-wide oversupply.

從那以後，他們每季度都減產，以應對整體疲軟的電視需求和全行業供過於求的問題。

Large driver ICs accounted for 33.1% of our total revenues for the quarter compared to 30.5% in the third quarter and 38.9% a year ago.

大型驅動器 IC 占我們本季度總收入的 33.1%，而第三季度為 30.5%，一年前為 38.9%。

Revenue for small and medium-sized display drivers was $81.1 million, up 5.1% sequentially and up 1.6% year-over-year.

中小型顯示驅動器的收入為 8110 萬美元，環比增長 5.1%，同比增長 1.6%。

The segment accounted for 46.4% of total sales for the quarter, compared to 46.9% in the third quarter and 41.8% a year ago.

該部門佔本季度總銷售額的 46.4%，而第三季度為 46.9%，一年前為 41.8%。

The sales growth, both sequentially and year-over-year was primarily driven by higher automotive and tablet sales, offset by a decrease in TDDI sales for smartphone.

環比和同比的銷售增長主要受到汽車和平板電腦銷售增長的推動，但被智能手機 TDDI 銷售的下降所抵消。

Although the decrease was less than previously expected.

儘管降幅低於此前預期。

Sales into smartphones were down 22.5% sequentially and down 14.3% year-over-year.

智能手機銷量環比下降 22.5%，同比下降 14.3%。

Both the sequential and year-over-year declines were caused mainly by lower TDDI shipments.

環比和同比下降的主要原因是 TDDI 出貨量下降。

However, on a full year basis, our 2019 TDDI shipments were close to double compared to the prior year as our fulfillment was capped during 2018 due to capacity constraint.

然而，在全年的基礎上，我們 2019 年的 TDDI 出貨量與上一年相比幾乎翻了一番，因為我們的履行在 2018 年由於產能限製而受到限制。

Starting 4Q '19.

從 19 年第四季度開始。

Our business started to see a major turnaround.

我們的業務開始出現重大轉機。

Thanks to our penetration into more Tier 1 smartphone OEMs, the industry's rapid rollout of TDDI in mid- to low end smartphones and our aggressive move to develop new foundry for TDDI.

得益於我們對更多一級智能手機 OEM 的滲透、該行業在中低端智能手機中快速推出 TDDI 以及我們為 TDDI 開發新代工廠的積極舉措。

Jordan will elaborate on this in a few moments.

喬丹將在稍後詳細說明這一點。

The fourth quarter sales of traditional TDDI fees declined by 20.2% sequentially, but increased 14.3% from last year.

傳統 TDDI 費用第四季度銷售額環比下降 20.2%，但比去年增長 14.3%。

Display drivers for tablets and other consumer products were up 26.5% sequentially, better than our prior guidance of 20% increase.

平板電腦和其他消費產品的顯示驅動因素環比增長 26.5%，好於我們之前 20% 的增長預期。

This was due to customers inventory replenishment and strong demand from certain brand customers.

這是由於客戶庫存補充和某些品牌客戶的強勁需求。

The fourth quarter sales of tablet and consumer products were also up by 25.8% year-over-year.

第四季度平板電腦和消費產品的銷售額也同比增長了 25.8%。

Our driver IC revenue for the automotive application was up 23.2% sequentially, better than our guidance of more than 15% increase.

我們用於汽車應用的驅動 IC 收入環比增長 23.2%，好於我們超過 15% 的增長預期。

It was up 1.9% from the same period last year.

與去年同期相比增長了 1.9%。

Revenues from our non-driver businesses were $35.9 million, down 3% sequentially and 2.6% year-over-year.

我們的非司機業務收入為 3590 萬美元，環比下降 3%，同比下降 2.6%。

Non-driver products accounted for 20.5% of total revenues as compared to 22.6% in the third quarter of 2019, and 19.3% a year ago.

非驅動產品佔總收入的 20.5%，而 2019 年第三季度為 22.6%，一年前為 19.3%。

Gross margin for fourth quarter was 20.6%, up 110 basis points sequentially, but down 370 basis points from the same period last year.

第四季度毛利率為 20.6%，環比上升 110 個基點，但比去年同期下降 370 個基點。

Gross margin outperformed our prior expectation of a slight increase compared to the 19.5% of the third quarter.

與第三季度的 19.5% 相比，毛利率略高於我們之前的預期。

A more favorable product mix amongst small and medium-sized display driver products, improved that will all factory utilization and higher engineering fees from project engagements were the factor behind the sequential increase.

中小型顯示驅動器產品中更有利的產品組合、提高所有工廠利用率和項目參與的更高工程費用是環比增長的因素。

Increased shipment of the WLO product to an anchor customer led to a higher capacity utilization of our WLO fab and, therefore, better gross margin compared to the same period last year.

WLO 產品向主要客戶的出貨量增加導致我們的 WLO 工廠的產能利用率更高，因此與去年同期相比，毛利率更高。

The year-over-year decline was largely due to smartphone TDDI ASP erosion, arisen from increased competition as well as more TDDI shipments for lower end market.

同比下降主要是由於智能手機 TDDI ASP 下降，這是由於競爭加劇以及低端市場的 TDDI 出貨量增加所致。

Moreover, our large panel driver IC businesses faced headwinds during 2019, when the cost of our COF packaging material went up for capacity shortage and the display industry suffer from a severe capacity oversupply.

此外，2019年我們的大型面板驅動IC業務面臨逆風，當時我們的COF封裝材料成本因產能短缺而上漲，顯示行業產能嚴重過剩。

Our IFRS operating expenses were $37.4 million in the fourth quarter, down 5.6% from the preceding quarter and down 8.8% from a year ago.

第四季度我們的 IFRS 運營費用為 3740 萬美元，比上一季度下降 5.6%，比去年同期下降 8.8%。

The sequential decrease was caused by decreased salary and R&D expenses.

環比下降是由於工資和研發費用減少所致。

The year-over-year decreases was also a result of decreased salary and R&D expenses, offset by the increase of depreciation expense.

同比下降也是由於工資和研發費用減少，但被折舊費用的增加所抵消。

Non-IFRS operating expense for the fourth quarter were $36.8 million, down 6.2% from the previous quarter and down 9.5% from the same quarter in 2018.

第四季度非國際財務報告準則運營費用為 3680 萬美元，比上一季度下降 6.2%，比 2018 年同期下降 9.5%。

IFRS operating margin for the fourth quarter was minus 0.8%, up from minus 4.7% in the prior quarter and down from 2.8% in the same period last year.

第四季度國際財務報告準則營業利潤率為負0.8%，高於上一季度的負4.7%，低於去年同期的2.8%。

The sequential improvement was primarily a result of higher sales, better gross margin and lower operating expenses.

環比改善主要是由於更高的銷售額、更高的毛利率和更低的運營費用。

The year-over-year decline was a result of lower sales and gross margin, offset by lower operating expenses.

同比下降的原因是銷售額和毛利率下降，但被運營費用下降所抵消。

Full quarter non-IFRS operating loss was $0.7 million or minus 0.4% of sales versus non-IFRS operating loss of $7.3 million or minus 4.4% of sales last quarter, and down from 3% for the same period last year.

全季度非國際財務報告準則經營虧損為 70 萬美元或銷售額的負 0.4%，而上一季度非國際財務報告準則的經營虧損為 730 萬美元或銷售額的負 4.4%，低於去年同期的 3%。

The sequential improvement in year-over-year declines were for the same reasons stated above.

同比下降的連續改善與上述相同的原因。

IFRS profit for the fourth quarter was $1 million or $0.006 per diluted ADS compared to loss of $7.2 million or $0.042 per diluted ADS in the previous quarter, and IFRS profit of $8.5 million or $0.049 per diluted ADS a year ago.

第四季度的 IFRS 利潤為 100 萬美元或每股攤薄 ADS 0.006 美元，而上一季度虧損 720 萬美元或每股攤薄 ADS 0.042 美元，而一年前的 IFRS 利潤為 850 萬美元或每股攤薄 ADS 0.049 美元。

IFRS earnings per diluted ADS exceeded prior guidance of per diluted ADS loss of around $0.03 to $0.045.

國際財務報告準則每攤薄 ADS 的收益超過了之前對每攤薄 ADS 損失約 0.03 美元至 0.045 美元的指導。

The better-than-expected earnings were due to stronger sales, improved gross margin, lower operating expenses and a revaluation gain of $3.8 million or $0.022 per diluted ADS from a previous investment in an AI start-ups made during November of 2017.

好於預期的收益是由於銷售增長、毛利率提高、運營費用降低，以及從 2017 年 11 月對一家人工智能初創公司的先前投資中獲得 380 萬美元或每股攤薄後 ADS 0.022 美元的重估收益。

This was the second revaluation gain we booked for the same investment with the first such gain of $2.9 million or $0.017 per diluted ADS, booked in the same period last year.

這是我們為同一投資計入的第二次重估收益，去年同期計入的第一次收益為 290 萬美元或每股攤薄後的 ADS 0.017 美元。

The year-over-year decline was a result of lower sales and gross margin, offset by lower operating expenses.

同比下降的原因是銷售額和毛利率下降，但被運營費用下降所抵消。

Excluding the revaluation gain, our IFRS loss for the quarter was $2.7 million or $0.016 per diluted ADS, compared to a loss of $7.2 million or $0.042 per diluted ADS in the previous quarter and profit of $5.6 million or $0.032 per diluted ADS from the same period last year.

不計重估收益，我們本季度的 IFRS 虧損為 270 萬美元或每股攤薄 ADS 0.016 美元，而上一季度虧損 720 萬美元或每股攤薄 ADS 0.042 美元，同期利潤為 560 萬美元或每股攤薄 ADS 0.032 美元去年。

Fourth quarter non-IFRS profit was $1.5 million or $0.009 per diluted ADS compared to non-IFRS loss of $6.9 million or $0.04 per diluted ADS last quarter and non-IFRS profit of $8.7 million or $0.05 per diluted ADS for the same period last year.

第四季度非 IFRS 利潤為 150 萬美元或每股攤薄 ADS 0.009 美元，而上一季度非 IFRS 虧損為 690 萬美元或每股攤薄 ADS 0.04 美元，非 IFRS 利潤為 870 萬美元或每攤薄 ADS 0.05 美元。

Non-IFRS earnings per diluted ADS exceeded prior guidance of a loss per diluted ADS of around $0.027 to $0.042.

非國際財務報告準則的每攤薄 ADS 收益超過了之前的指導，即每攤薄 ADS 的虧損約為 0.027 美元至 0.042 美元。

The better-than-expected earnings were due to the reasons mentioned above.

業績好於預期是由於上述原因。

Excluding the revaluation gains, our non-IFRS loss for the quarter was $2.2 million or $0.013 per diluted ADS compared to non-IFRS loss of $6.9 million or $0.04 per diluted ADS last quarter and profit of $5.8 million or $0.033 per diluted ADS for the same period last year.

不計重估收益，我們本季度的非 IFRS 虧損為 220 萬美元或每攤薄 ADS 0.013 美元，而上一季度非 IFRS 虧損為 690 萬美元或每攤薄 ADS 0.04 美元，利潤為 580 萬美元或每攤薄 ADS 0.033 美元去年期間。

Now let's have a quick overview of the 2019 full year financial performance.

現在讓我們快速了解一下 2019 年全年的財務表現。

Revenue totaled $671.8 million in 2019, a 7.2% decline over 2018.

2019 年收入總額為 6.718 億美元，比 2018 年下降 7.2%。

Revenues from large panel display drivers totaled $237.3 million, a decrease of 8.9% year-over-year, representing 35.3% of our total revenues as compared to 36% in 2018.

來自大型面板顯示驅動器的收入總計 2.373 億美元，同比下降 8.9%，占我們總收入的 35.3%，而 2018 年為 36%。

Small and medium-sized driver sales totaled $307.4 million, a decrease of 5.6% year-over-year, representing 45.8% of our total revenues as compared to 45% in 2018.

中小型驅動程序銷售額總計 3.074 億美元，同比下降 5.6%，占我們總收入的 45.8%，而 2018 年為 45%。

Non-driver products sales totaled $127.1 million, a decrease of 7.5% year-over-year, representing 18.9% of our total sales as compared to 19% a year ago.

非驅動產品銷售額總計 1.271 億美元，同比下降 7.5%，占我們總銷售額的 18.9%，而去年同期為 19%。

Gross margin in 2019 was 20.5%, down from 23.3% in 2018.

2019 年的毛利率為 20.5%，低於 2018 年的 23.3%。

The year-over-year decline can largely be attributed to smartphone TDDI ASP erosion due to increased competition and significantly more shipments of TDDI for lower-end market.

同比下降主要歸因於智能手機 TDDI ASP 下降，原因是競爭加劇以及低端市場的 TDDI 出貨量顯著增加。

Moreover, our large panel driver IC business was impacted by industry-wide TV panel oversupply and high material costs.

此外，我們的大型面板驅動IC業務受到全行業電視面板供過於求和高材料成本的影響。

On the positive side, more WLO shipments in 2019, led to improved capacity utilization of our WLO fab, and therefore, better gross margins.

積極的一面是，2019 年 WLO 出貨量增加，提高了我們 WLO 工廠的產能利用率，從而提高了毛利率。

IFRS operating expenses were $156.2 million, down $9.3 million or 5.6% compared to last year.

IFRS 運營費用為 1.562 億美元，與去年相比減少 930 萬美元或 5.6%。

The decrease was primarily the result of lower salary, R&D expenses and share-based compensation, despite higher depreciation expense out of our new building.

減少的主要原因是工資、研發費用和股權薪酬下降，儘管我們新大樓的折舊費用較高。

As highlighted earlier, we did not issue RSUs in 2019 like we did in previous years but granted stock options to employees instead.

如前所述，我們沒有像往年那樣在 2019 年發行 RSU，而是向員工授予了股票期權。

The fourth quarter stock option related compensation expense was $0.33 million.

第四季度與股票期權相關的補償費用為 33 萬美元。

IFRS operating loss was $18.3 million, a decline of $21.7 million from 2018 due to lower sales and lower gross margins, offset by lower operating expenses.

IFRS 運營虧損為 1830 萬美元，比 2018 年減少 2170 萬美元，原因是銷售額和毛利率下降，但被運營費用下降所抵消。

For the same reason, non-IFRS operating loss was $16.4 million, a decrease of $25.4 million from 2018.

出於同樣的原因，非國際財務報告準則的經營虧損為 1640 萬美元，比 2018 年減少了 2540 萬美元。

Our IFRS loss for the year was $13.6 million or $0.079 per diluted ADS versus a profit of $8.6 million or $0.05 per diluted ADS.

我們當年的 IFRS 虧損為 1360 萬美元或每股攤薄 ADS 0.079 美元，而利潤為 860 萬美元或每股攤薄 ADS 0.05 美元。

Non-IFRS loss for 2019 was $12.1 million or $0.07 per diluted ADS, down $25 million year-over-year.

2019 年的非國際財務報告準則虧損為 1210 萬美元或每股攤薄後的 ADS 0.07 美元，同比下降 2500 萬美元。

Turning to the balance sheet.

轉向資產負債表。

We had $112.1 million of cash, cash equivalents and other financial assets as of the end of December 2019 compared to $117.7 million at the same time last year and $128 million a quarter ago.

截至 2019 年 12 月底，我們擁有 1.121 億美元的現金、現金等價物和其他金融資產，而去年同期為 1.177 億美元，一個季度前為 1.28 億美元。

We made an operating cash inflow of $23.4 million during the fourth quarter.

我們在第四季度實現了 2340 萬美元的經營現金流入。

The cash position was, however, reduced from last quarter, because we paid $33.4 million of unsecured borrowings and made a CapEx of $2.7 million during the quarter.

然而，現金頭寸比上一季度有所減少，因為我們在本季度支付了 3,340 萬美元的無擔保借款並獲得了 270 萬美元的資本支出。

On top of the cash position, restricted cash was $164 million at the end of the quarter, the same as the preceding quarter and a year ago.

除現金頭寸外，本季度末受限現金為 1.64 億美元，與上一季度和一年前持平。

The restricted cash is mainly used to guarantee the secure short-term borrowings for the same amount.

受限現金主要用於擔保等額短期借款的安全。

We have $57.3 million of unsecured short-term loans at the end of fourth quarter, substantially lower than the $90.6 million a quarter ago.

截至第四季度末，我們有 5,730 萬美元的無擔保短期貸款，大大低於上一季度的 9,060 萬美元。

Our year-end inventories as of December 31, 2019, were $143.8 million, down from $167.6 million last quarter and $162.6 million a year ago.

截至 2019 年 12 月 31 日，我們的年終庫存為 1.438 億美元，低於上一季度的 1.676 億美元和一年前的 1.626 億美元。

Accounts receivables at the end of December 2019 were $164.9 million, up from $157.3 million last quarter, but down from $189.3 million a year ago.

截至 2019 年 12 月底，應收賬款為 1.649 億美元，高於上一季度的 1.573 億美元，但低於一年前的 1.893 億美元。

Days sales outstanding was 90 days at the end of the year as compared to 95 days a year ago and 86 days at the end of the last quarter.

年末銷售天數為 90 天，而去年同期為 95 天，上一季度末為 86 天。

As highlighted in the last earnings call, in response to capacity shortage of foundry and certain packaging material, we had to keep the inventory level higher than usual in 2018.

正如上次財報電話會議所強調的那樣，為了應對代工和某些包裝材料的產能短缺，我們不得不在 2018 年保持高於往常的庫存水平。

Given the unfavorable market conditions and easing of foundry capacity in 2019, we have started to control our inventory level since the first quarter of 2019.

鑑於 2019 年不利的市場條件和代工產能的放鬆，我們從 2019 年第一季度開始控制庫存水平。

We believe inventory has reached a healthy level.

我們認為庫存已達到健康水平。

And given the prevailing uncertain market conditions, we will monitor our inventory situation very carefully.

鑑於當前不確定的市場狀況，我們將非常仔細地監控我們的庫存情況。

Net cash inflow from operating activities for the fourth quarter was $23.4 million as compared to an inflow of $2.3 million for the same period last year and an inflow of $24 million last quarter.

第四季度經營活動的淨現金流入為 2340 萬美元，而去年同期為 230 萬美元，上一季度為 2400 萬美元。

Cash inflow from operations in 2019 was $7.7 million as compared to $4 million in 2018.

2019 年運營現金流入為 770 萬美元，而 2018 年為 400 萬美元。

Fourth quarter capital expenditures amounted to $2.7 million versus $5.2 million a year ago and $31.2 million last quarter.

第四季度資本支出為 270 萬美元，而去年同期為 520 萬美元，上一季度為 3120 萬美元。

The vast majority of the third quarter CapEx was for the purchase of land, the contraction of a new building and WLO capacity expansion.

第三季度資本支出的絕大部分用於購買土地、新建築的收縮和 WLO 產能擴張。

The investment project has been concluded with a final payment of $1.5 million made in the fourth quarter.

該投資項目已於第四季度支付 150 萬美元的尾款。

The investment in design tools and R&D related equipment for our traditional IC design business, was $1.2 million in Q4 versus $2 million in Q3.

我們傳統 IC 設計業務對設計工具和研發相關設備的投資在第四季度為 120 萬美元，而第三季度為 200 萬美元。

Total capital expenditure for the year was $45.9 million, of which $7.3 million was design tools and R&D related equipment.

全年資本支出總額為 4590 萬美元，其中 730 萬美元為設計工具和研發相關設備。

In comparison, the CapEx for 2018 was $49.7 million, of which $7.6 million was for design tools and R&D related equipment.

相比之下，2018 年的資本支出為 4970 萬美元，其中 760 萬美元用於設計工具和研發相關設備。

As of December 31, 2019, Himax had 172.2 million ADS outstanding, no change from last quarter.

截至 2019 年 12 月 31 日，奇景天擁有 1.722 億股 ADS，與上一季度持平。

On a fully diluted basis, the total number of ADS outstanding is 172.6 million.

在完全攤薄的基礎上，未償還的 ADS 總數為 1.726 億股。

Historically, due to the Lunar New Year holidays, the first quarter has seasonally been the slowest period of the year in terms of sales, opens down by more than 10% sequentially.

從歷史上看，由於農曆新年假期，第一季度的銷售額季節性地是一年中最慢的時期，環比下降超過 10%。

At this time, however, based on our current pipeline, we are experiencing strong sales in the first quarter, brushing aside a seasonal factor.

然而，目前，根據我們目前的渠道，我們在第一季度經歷了強勁的銷售，忽略了季節性因素。

Jordan will elaborate later.

喬丹稍後會詳細說明。

However, the coronavirus outbreak currently taking place in China and all over world does represent a major uncertainty to our operations, especially for the short term.

然而，目前在中國和世界各地爆發的冠狀病毒確實對我們的運營構成了重大不確定性，尤其是在短期內。

We are working extremely closely with both our customers and suppliers in our joint efforts to mitigate the risks.

我們正與我們的客戶和供應商密切合作，共同努力降低風險。

We have started to see some downward adjustments of Q1 forecast over the past week or 2, mainly from certain China-based customer for small-sized display drivers and CMOS image sensors, who are still scrambling to restore their operation into order.

在過去的一周或兩週內，我們已經開始看到 Q1 預測的一些下調，主要來自某些中國的小尺寸顯示驅動器和 CMOS 圖像傳感器客戶，這些客戶仍在爭先恐後地恢復運營。

Our Q1 guidance below has taken into account those downward adjustments.

我們下面的第一季度指導考慮了這些向下調整。

In comparison, we're seeing relatively little impact of forecast from large display customers who are demanding that our supply be uninterrupted by the incident with mass majority of operations located outside of China.

相比之下，我們看到大型顯示器客戶的預測影響相對較小，他們要求我們的供應不受此次事件的影響，因為大部分業務都位於中國以外。

Our suppliers are largely unaffected by the coronavirus outbreak.

我們的供應商在很大程度上不受冠狀病毒爆發的影響。

The focus there is primarily the logistic management, including the customs operation in various ports in China.

那裡的重點主要是物流管理，包括中國各個港口的海關業務。

It is worth pointing out that we have very little short-term exposure on both customers and suppliers side and in terms of our own operations to Wuhan and the Hubei province, the epicenter of the outbreak.

值得指出的是，我們在客戶和供應商方面以及我們自己在武漢和疫情中心湖北省的業務方面都很少有短期接觸。

The situation is still evolving on top of the downward adjustments of forecasts we have seen.

在我們看到的預測下調的基礎上，情況仍在演變。

We have deliberately widened and reduced the low end of the quarter's guidance to reflect the risks associated with the coronavirus outbreak.

我們有意擴大並降低了本季度指引的低端，以反映與冠狀病毒爆發相關的風險。

For the first quarter, we expect revenue to increase between 1% and 10% sequentially, an increase of 8.2% to [17.8%] (corrected by company after the call) on a year-over-year basis.

對於第一季度，我們預計收入將環比增長 1% 至 10%，同比增長 8.2% 至 [17.8%]（由公司在電話會議後更正）。

Gross margin is expected to increase by 1% to 2%, sequentially, depending on our final product mix.

毛利率預計將依次增加 1% 至 2%，具體取決於我們的最終產品組合。

IFRS profit attributable to shareholders are expected to be in the range of around minus $0.005 to positive $0.018 per fully diluted ADS.

IFRS 股東應占利潤預計在每股完全攤薄後的 ADS 負 0.005 美元至正 0.018 美元之間。

Non-IFRS profit attributable to shareholders are expected to be in the range of minus $0.002 to positive $0.021 per fully diluted ADS.

股東應佔非 IFRS 利潤預計在每完全攤薄後的 ADS 負 0.002 美元至正 0.021 美元之間。

I will now turn the floor over to Jordan, the CEO of the company.

我現在將把發言權交給公司首席執行官喬丹。

Thank you, Jackie.

謝謝你，傑基。

When we hosted our third quarter earnings call this past November, we were facing trends in the marketplace that created headwinds for us specifically.

當我們在去年 11 月召開第三季度財報電話會議時，我們正面臨著市場趨勢，這些趨勢特別為我們帶來了不利因素。

At that time, our performance and forecast reflected challenges we face in our smartphone TDDI business.

當時，我們的業績和預測反映了我們在智能手機 TDDI 業務中面臨的挑戰。

This was exacerbated by lower supply of capacity in the LCD industry that negatively impacted our display driver IC sales and margins.

LCD 行業產能供應減少加劇了這種情況，這對我們的顯示驅動器 IC 銷售和利潤率產生了負面影響。

As a result, our overall sales and outlook were weak.

因此，我們的整體銷售和前景疲弱。

Since that time, we have started to see major turnaround in literally all aspects of our businesses.

從那時起，我們已經開始看到我們業務的各個方面都出現了重大轉變。

The trends we are seeing in Q1 is expected to extend into Q2 and throughout the rest of 2020.

我們在第一季度看到的趨勢預計將延續到第二季度和整個 2020 年剩餘時間。

Notwithstanding the uncertainty arisen from the coronavirus, we are confident that we will see decent growth across the board for all our major product categories in 2020.

儘管冠狀病毒帶來了不確定性，但我們有信心在 2020 年看到我們所有主要產品類別的全面增長。

Now, let me take you through each of our major business areas.

現在，讓我帶您了解我們的每個主要業務領域。

Lets start with the large-panel display IC business update.

先從大屏顯示IC業務更新說起。

For the first quarter, we expect the large display driver IC segment revenue to increase by about 10% sequentially.

對於第一季度，我們預計大型顯示驅動器 IC 部門的收入將環比增長約 10%。

Sensing strong signs of panel price recovery.

面板價格回升跡像明顯。

Panel makers began to replenish their inventory and increase production, starting the end of Q4 2019.

從 2019 年第四季度末開始，面板製造商開始補充庫存並增加產量。

Our leading Chinese panel customers are particularly active in getting further market share, taking advantage of Korean panel makers ongoing fab restructuring.

我們領先的中國面板客戶利用韓國面板製造商正在進行的晶圓廠重組，在獲得更多市場份額方面特別積極。

As the leading IC supplier, Himax is well positioned to benefit from the increased demand coming out of the major Chinese large display players.

作為領先的 IC 供應商，Himax 處於有利位置，可以從中國主要大型顯示器廠商的需求增長中受益。

These market trends that tend to emerge during Q4 2019 are expected to drive strong results in Q1 that will accelerate throughout 2020.

這些往往在 2019 年第四季度出現的市場趨勢預計將在 2020 年第一季度推動強勁的業績增長。

On the supply side, we reported during the last quarter's earnings call, that Himax and some of our major panel customers were already seeing foundry capacity shortage of 8-inch silicon wafers for display driver ICs.

在供應方面，我們在上一季度的財報電話會議上報告說，Himax 和我們的一些主要面板客戶已經看到用於顯示驅動器 IC 的 8 英寸矽晶圓的代工產能短缺。

In anticipation of this, we have strategically prepared to ready our 12-inch foundry that was associated backend packaging and testing ahead of our peers, to cover the potential 8-inch capacity shortfall.

有鑑於此，我們已經戰略性地準備好我們的 12 英寸代工廠，該代工廠在我們的同行之前進行相關的後端封裝和測試，以彌補潛在的 8 英寸產能短缺。

Our design project coverage is strong across all leading Chinese panel makers.

我們的設計項目覆蓋所有領先的中國面板製造商。

We are very positive on the business outlook for our large display driver for 2020.

我們對 2020 年大型顯示驅動器的業務前景非常樂觀。

Looking at technology development, the upcoming 2020 Tokyo Olympics will be broadcast in 8K resolution.

從技術發展來看，即將到來的 2020 年東京奧運會將以 8K 分辨率轉播。

All top-tier TV brands have been trying to boost sales for 8K models ahead of the event.

所有頂級電視品牌都在努力提高 8K 型號的銷量。

At the CES last month, many of these brands showcased 8K TVs that contained Himax technology.

在上個月的 CES 上，這些品牌中的許多都展示了包含 Himax 技術的 8K 電視。

Although the penetration of 8K TVs is still low, we expect this to be a strategic opportunity for Himax as 8K TV sales would boost demand for not just our driver IC, but also timing controller contents.

儘管 8K 電視的滲透率仍然很低，但我們預計這將成為奇景的戰略機遇，因為 8K 電視的銷售將不僅會增加對我們的驅動 IC 的需求，還會增加對時序控制器內容的需求。

Now let me turn to the small and medium-sized display driver IC business.

現在讓我轉向中小型顯示驅動IC業務。

Beginning with an update on our smartphone segment.

從我們智能手機領域的更新開始。

Our TDDI product road map as well as new design wins with end customers and a foundry capacity advantage have positioned Himax to gain market share, starting in the first quarter and throughout 2020.

我們的 TDDI 產品路線圖以及贏得終端客戶的新設計以及代工產能優勢使 Himax 從第一季度開始到 2020 年全年獲得市場份額。

The smartphone market continues to embrace new technologies and are moving towards higher frame rate displays to enable smoother screen viewing and gaming experience.

智能手機市場繼續採用新技術，並朝著更高幀率的顯示器發展，以實現更流暢的屏幕觀看和遊戲體驗。

This will drive the adoption of next-generation high frame rate TDDI solutions, for which Himax is a leading technology provider.

這將推動下一代高幀率 TDDI 解決方案的採用，Himax 是該解決方案的領先技術提供商。

Also, the demand for 5G in China is expected to drive worldwide smartphone growth in 2020, which, in turn, stimulate the growth of TDDI.

此外，預計中國對 5G 的需求將推動 2020 年全球智能手機的增長，進而刺激 TDDI 的增長。

All these trends will benefit Himax.

所有這些趨勢都將使奇景受益。

However, as indicated earlier, the small display business, among which smartphone TDDI is the major item, will be the most impacted by the coronavirus outbreak in the short term.

不過，如前所述，以智能手機TDDI為主的小顯示屏業務，短期內受疫情影響最大。

Again, we are working with our customers extremely closely, adjusting our operations to support their short-term needs in combating the coronavirus outbreak.

同樣，我們正在與客戶密切合作，調整我們的運營，以滿足他們在抗擊冠狀病毒爆發方面的短期需求。

Regardless of the coronavirus, we are confident that our smartphone TDDI business will grow strongly from last year.

不管冠狀病毒如何，我們相信我們的智能手機 TDDI 業務將比去年強勁增長。

The price erosion of TDDI we have seen over the last past year is expected to abate in 2020.

我們在過去一年中看到的 TDDI 價格下跌預計將在 2020 年減弱。

This is not only because the new high frame rate products enjoy a higher ASP, but also due to the industry-wide tightening of foundry capacity for TDDI.

這不僅是因為新的高幀率產品享有更高的平均售價，還因為全行業對 TDDI 代工產能的收緊。

As a reminder, during 2018, the Himax TDDI pieces was negatively impacted by a severe foundry capacity shortage that resulted in our inability to meet customers' delivery requirements.

提醒一下，在 2018 年期間，Himax TDDI 件受到嚴重的代工產能短缺的負面影響，導致我們無法滿足客戶的交付要求。

Although the capacity constraint was resolved towards the end of 2019, the delay limited our ability to participate in major design-in opportunities that would have driven the business in 2019.

儘管產能限制在 2019 年底得到解決，但延遲限制了我們參與本應在 2019 年推動業務發展的重大設計機會的能力。

The actions we took in 2018-2019 to develop and enable an additional qualified foundry partner ahead of our peers, combined with our superior technology and customer collaboration, now uniquely position Himax to benefit from a tightening of overall TDDI foundry capacity in 2020.

我們在 2018 年至 2019 年採取的行動是在同行之前開發和啟用額外的合格代工合作夥伴，再加上我們卓越的技術和客戶合作，現在使 Himax 具有獨特的優勢，可以從 2020 年整體 TDDI 代工產能的收緊中受益。

We are well prepared to meet TDDI production demands and continue to move forward with plans to enable additional capacity this year to capitalize on the strong opportunities for smartphone TDDI, as well as other TDDI applications, such as tablet, in 2020.

我們已為滿足 TDDI 生產需求做好充分準備，並繼續推進今年增加產能的計劃，以利用 2020 年智能手機 TDDI 以及平板電腦等其他 TDDI 應用的巨大機遇。

I will elaborate a bit later.

我稍後會詳細說明。

As expected, our traditional discrete driver IC sales into smartphones posted a sequential decline for the fourth quarter.

正如預期的那樣，我們在智能手機中的傳統分立驅動 IC 銷售額在第四季度連續下降。

This was primarily due to the traditional discrete driver ICs addressable smartphone market is quickly being replaced by TDDI and AMOLED.

這主要是由於傳統的分立驅動器 IC 可尋址智能手機市場正在迅速被 TDDI 和 AMOLED 取代。

As discussed previously, a major development we are seeing in the marketplace is increased utilization of the OLED, display for smartphone.

如前所述，我們在市場上看到的一個主要發展是智能手機 OLED 顯示器的利用率提高。

This is due to expanded AMOLED capacity as well as increased demand for under-display fingerprint technology that is only available in AMOLED display for the time being.

這是由於 AMOLED 產能擴大以及對屏下指紋技術的需求增加，而屏下指紋技術目前僅在 AMOLED 顯示屏中可用。

We are encouraged by the progress we have made, collaborating closely with leading panel makers across China for AMOLED product development.

我們與中國領先的面板製造商密切合作開發 AMOLED 產品所取得的進展讓我們感到鼓舞。

We believe AMOLED driver ICs will soon become one of the major growth engines for our small panel driver IC business.

我們相信 AMOLED 驅動 IC 將很快成為我們小面板驅動 IC 業務的主要增長引擎之一。

In the Automotive Display segment, the number of displays per vehicle continues to rise as the overall automotive display market is set to increase from 2020 onward, despite that the global car sales are forecast to decline again this year.

在汽車顯示器領域，儘管預計今年全球汽車銷量將再次下滑，但隨著整體汽車顯示器市場從 2020 年開始將增加，每輛車的顯示器數量繼續增加。

More importantly, for Himax, the market is quickly shifting towards a number of new technologies, including higher resolution, in-cell touch, slim border, giant pillar-to-pillar screen, local dimming for higher contrast, and plastic AMOLED for free-form design, all of which are contributing to an increase in market size and demand for automotive display driver ICs.

更重要的是，對於奇景來說，市場正在迅速轉向多項新技術，包括更高分辨率、內嵌觸控、超薄邊框、巨大的柱對柱屏幕、更高對比度的局部調光以及免費的塑料AMOLED——外形設計，所有這些都有助於增加市場規模和汽車顯示驅動器 IC 的需求。

Himax commands more than 30% of the global automotive display driver IC market and is the primary partner for most of the world's automotive panel makers to enable the new technologies above.

Himax 佔據全球汽車顯示驅動器 IC 市場 30% 以上的份額，是全球大多數汽車面板製造商啟用上述新技術的主要合作夥伴。

It is worth mentioning that Himax is also the dominant automotive TDDI technology provider, working as a sole supplier on numerous TDDI design-in projects across different leading panel makers.

值得一提的是，奇景光電還是領先的汽車 TDDI 技術供應商，作為獨家供應商參與不同領先面板製造商的眾多 TDDI 設計項目。

While we expect only small volume shipments in 2020, we anticipate meaningful volume of automotive TDDI as we move into 2021.

雖然我們預計 2020 年只有少量出貨量，但我們預計隨著我們進入 2021 年，汽車 TDDI 的出貨量將相當可觀。

Turning to the tablet and consumer electronics business.

轉向平板電腦和消費電子業務。

We expect the tablet business to be a major growth area for Himax during 2020 with significant volume of tablet TDDI shipments starting from Q1.

我們預計平板電腦業務將成為 2020 年奇景光電的主要增長領域，從第一季度開始，平板電腦 TDDI 出貨量將大幅增加。

The strong momentum will accelerate into Q2 and throughout 2020.

強勁的勢頭將加速到第二季度和整個 2020 年。

The business growth will be driven primarily by leading non-iOS brands' rapid adoption of the newly developed in-cell TDDI solutions.

業務增長將主要由領先的非 iOS 品牌快速採用新開發的內嵌 TDDI 解決方案推動。

In-cell TDDI is quickly becoming mainstream for tablets due to its lower cost and a simplified supply chain as well as faster and easier integration for display manufacturers.

內嵌式 TDDI 正迅速成為平板電腦的主流，因為它成本更低、供應鏈更簡單，以及為顯示器製造商提供更快、更容易的集成。

At a same time, customer demand is expected to accelerate for these cheaper, slimmer, lighter and more stylish tablets.

與此同時，預計客戶對這些更便宜、更輕薄、更時尚的平板電腦的需求將加速增長。

Himax is the primary partner for all non-iOS tablet in-cell TDDI products right now and we are already making shipments of our new in-cell TDDI products for tablet to a number of leading end customers, some of which include active stylus.

奇景是目前所有非 iOS 平板電腦內嵌式 TDDI 產品的主要合作夥伴，我們已經在向許多領先的終端客戶發貨我們新的平板電腦內嵌式 TDDI 產品，其中一些包括有源觸控筆。

Additionally, we continued shipping our traditional display driver IC with CoF packaging for larger-sized tablets with slim bezel design to a leading Chinese brand customer and expect the momentum for these high-end designs to accelerate throughout 2020.

此外，我們繼續向一家領先的中國品牌客戶提供採用 CoF 封裝的傳統顯示驅動器 IC，用於採用窄邊框設計的大尺寸平板電腦，並預計這些高端設計的發展勢頭將在 2020 年加速。

For the first quarter, revenue for the small and medium-sized driver IC business is expected to increase by around 10% to 20% sequentially.

一季度，中小型驅動IC業務收入預計環比增長10%至20%左右。

Now let me share some of the progress we made on the non-driver IC businesses in the last quarter.

現在讓我分享一下我們在上個季度在非驅動IC業務方面取得的一些進展。

First, on our WLO business.

首先，關於我們的 WLO 業務。

The fourth quarter shipments were very strong, up by over 20% compared to the same period last year, despite a modest decline from the previous quarter.

儘管較上一季度略有下降，但第四季度的出貨量非常強勁，與去年同期相比增長了 20% 以上。

The momentum led to higher capacity utilization and together with an improved production yield helped enhance corporate gross margin for the quarter.

這一勢頭導致更高的產能利用率，以及提高的產量，有助於提高本季度的公司毛利率。

According to our customer's shipment forecast, we expect another strong quarter, with Q1's shipment volume to double compared with the same period last year, although the [Q1] (corrected by company after the call) shipment volume is expected to decline slightly from that of the last quarter.

根據我們客戶的出貨量預測，我們預計又一個強勁的季度，第一季度的出貨量與去年同期相比翻了一番，儘管[Q1]（由公司在電話後更正）出貨量預計將比去年同期略有下降最後一個季度。

We continue to make progress with our ongoing R&D projects for next-generation products centered around our exceptional design know-how and mass production expertise in WLO technology.

我們將繼續以我們在 WLO 技術方面的卓越設計知識和大規模生產專業知識為中心的下一代產品研發項目取得進展。

Next is an update on the 3D sensing business.

接下來是 3D 傳感業務的更新。

In the smartphone segment, we have advanced our WLO optics solution to cover both structured light and time-of-flight or ToF 3D sensing.

在智能手機領域，我們改進了 WLO 光學解決方案，以涵蓋結構光和飛行時間或 ToF 3D 傳感。

We have seen increasing ToF adoption by smartphone makers for world-facing cameras to enable advanced photography, distance/dimension measurement and 3D depth information generation for AR.

我們已經看到智能手機製造商越來越多地在面向世界的攝像頭中採用 ToF，以實現 AR 的高級攝影、距離/尺寸測量和 3D 深度信息生成。

In the past few months, we've been actively working with an industry-leading ToF 3D camera vendor to develop a new and advanced ToF solution, targeting Android smartphones.

在過去的幾個月裡，我們一直在積極與行業領先的 ToF 3D 相機供應商合作，開發針對 Android 智能手機的全新先進 ToF 解決方案。

Leveraging on our WLO technology, we have made great progress providing the partner with spot projector for their reference design, which will be ready for leading Android smartphone makers evaluation as soon as Q1 2020.

利用我們的 WLO 技術，我們在為合作夥伴的參考設計提供點投影儀方面取得了長足的進步，最快將於 2020 年第一季度為領先的 Android 智能手機製造商評估做好準備。

Our non-smartphone 3D sensing engagements have focused on smart door lock and industrial automotive segments where we provide structured light-based 3D sensing total solution.

我們的非智能手機 3D 傳感業務專注於智能門鎖和工業汽車領域，我們在這些領域提供基於結構光的 3D 傳感整體解決方案。

We've been collaborating closely mainly with two types of partners: those with industry-leading expertise in facial recognition algorithm and those offering application processes with strong AI capability.

我們主要與兩類合作夥伴密切合作：在面部識別算法方面具有行業領先專業知識的合作夥伴，以及提供具有強大人工智能能力的應用程序的合作夥伴。

We have started design projects with several smart door lock end customers.

我們已經與多個智能門鎖終端客戶開始了設計項目。

Separately, as we previously mentioned, we are working with partners who wish to take advantage of our 3D sensing know-how to achieve efficiency improvement and cost reduction in traditional manufacturing.

另外，正如我們之前提到的，我們正在與希望利用我們的 3D 傳感技術在傳統製造中實現效率提高和成本降低的合作夥伴合作。

One market opportunity we are pursuing is shoe factory automation.

我們追求的一個市場機會是鞋廠自動化。

I'm pleased to report that prototypes of 3D sensing enabled automatic robotic cementing system are available right now for both production optimization testing.

我很高興地報告，支持 3D 傳感的自動機器人固井系統的原型現在可用於生產優化測試。

Next, on WiseEye, our AI-based ultra-low power smart sensing solution.

接下來，在 WiseEye 上，我們基於 AI 的超低功耗智能傳感解決方案。

The demand for battery power smart device with AI intelligent sensing is rapidly growing.

具有AI智能感知的電池電量智能設備需求快速增長。

Our total solution is built on Emza's unique AI-based algorithm on top of Himax's proprietary computer vision processor and CMOS image sensor or equipped with ultra-low power design.

我們的整體解決方案基於 Emza 獨特的基於 AI 的算法，基於 Himax 專有的計算機視覺處理器和 CMOS 圖像傳感器或配備超低功耗設計。

Currently, a laptop is the market of focus.

目前，筆記本電腦是市場的焦點。

Himax WiseEye 2.0 NB solution, provides 'a laptop-ready' 3-in-1 RGB/IR/AI solution.

Himax WiseEye 2.0 NB 解決方案，提供“筆記本電腦就緒”的 3 合 1 RGB/IR/AI 解決方案。

We're expecting privacy while enhancing security for noble users.

我們期待隱私，同時增強高貴用戶的安全性。

At the CES 2020, the number of notebook OEMs and ODMs demonstrated our WiseEye NB solution in the next-generation premium notebooks with positive feedback.

在 CES 2020 上，眾多筆記本 OEM 和 ODM 展示了我們在下一代高端筆記本中的 WiseEye NB 解決方案，並獲得了積極的反饋。

In addition to notebook, we have also made progress in the display and IoT markets.

除了筆記本，我們在顯示器和物聯網市場也取得了進展。

Innolux, one of the world's leading manufacturers of TFT-LCD displays has integrated the Himax-Emza WiseEye solution into displays to enable consumer privacy protection in real time.

全球領先的 TFT-LCD 顯示器製造商之一群創光電已將 Himax-Emza WiseEye 解決方案集成到顯示器中，以實時保護消費者隱私。

Also, Chicony, one of the leading ODMs in the world, and Emza jointly announced a reference design of the world's first battery-powered human sensing solution for IoT in December 2019.

此外，全球領先的 ODM 廠商之一群光與 Emza 於 2019 年 12 月聯合發布了全球首個電池供電物聯網人體傳感解決方案的參考設計。

Both Innolux and Chicony showcased their products at the CES.

Innolux 和 Chicony 都在 CES 上展示了他們的產品。

Previously, we mentioned that in addition to total solution, Himax is also able to offer an ultra-low power smart sensing on the basis of individual parts, so as to address the market's different needs and maximizes potential opportunities for Himax.

之前我們提到，除了整體解決方案外，奇景還能提供基於單個零件的超低功耗智能傳感，以應對市場的不同需求，最大限度地挖掘奇景的潛在機會。

I will elaborate on this in a CMOS image sensor discussion below.

我將在下面的 CMOS 圖像傳感器討論中詳細說明這一點。

On CMOS image sensor business update.

關於CMOS圖像傳感器業務更新。

CMOS image sensor is another critical part of the WiseEye 2.0 NB solution.

CMOS 圖像傳感器是 WiseEye 2.0 NB 解決方案的另一個關鍵部分。

To support the lean camera design and high-quality image needed for thin bezel laptops, we have made a 2-in-1 sensor that offers the duo capabilities of high-quality HD image capturing and ultra-low power, low resolution visual sensing in one single sensor, the industry's first with the first innovative design.

為了支持薄邊框筆記本電腦所需的精益相機設計和高質量圖像，我們製造了一個二合一傳感器，可提供高質量高清圖像捕捉和超低功耗、低分辨率視覺傳感的雙重功能。一個單一的傳感器，業界首創的創新設計。

With this sensor, laptop makers can simplify their next-generation product design and save costs by eliminating the need for an additional camera to provide context awareness for better user experience.

借助該傳感器，筆記本電腦製造商可以簡化其下一代產品設計並節省成本，因為無需額外的攝像頭即可提供情境感知，從而獲得更好的用戶體驗。

Our sensor has also incorporated an RGB-IR design to enable Windows Hello facial recognition.

我們的傳感器還採用了 RGB-IR 設計，以支持 Windows Hello 面部識別。

This 2-in-1 CMOS sensor is currently available for partners/customers.

這款二合一 CMOS 傳感器目前可供合作夥伴/客戶使用。

In addition, we recently announced the commercial availability of the industry-first, ultra-low power and low latency, backside-illuminated CMOS image sensor solution with autonomous modes of operations for always-on, intelligent video sensing applications such as human presence detection and tracking, gaze detection, behavioral analysis and pose estimation for growing markets, such as smart home, smart building, healthcare, smartphone and AR/VR devices.

此外，我們最近宣布推出業界首創的超低功耗和低延遲背照式 CMOS 圖像傳感器解決方案，該解決方案具有自主操作模式，適用於始終開啟的智能視頻傳感應用，例如人體存在檢測和跟踪、注視檢測、行為分析和姿勢估計，適用於智能家居、智能建築、醫療保健、智能手機和 AR/VR 設備等新興市場。

We are collaborating with leading partners within the ecosystem to reduce time to market for intelligent edge vision solutions.

我們正在與生態系統內的領先合作夥伴合作，以縮短智能邊緣視覺解決方案的上市時間。

Notably, we are working closely with Google and have become the reference design for its world-leading TensorFlow Lite AI framework, targeting low-power edge devices.

值得注意的是，我們正在與穀歌密切合作，並已成為其世界領先的 TensorFlow Lite AI 框架的參考設計，針對低功耗邊緣設備。

For the traditional human vision segments, we see strong demands in notebooks where we are one of the market leaders and have experienced increased shipments for multimedia applications such as car recorders, surveillance, drones, home appliances and consumer electronics among others.

對於傳統的人類視覺領域，我們看到筆記本電腦的強勁需求，我們是市場領導者之一，並且多媒體應用的出貨量有所增加，例如車載記錄儀、監控、無人機、家用電器和消費電子產品等。

Additionally, we have seen increased shipments and new design wins in the automotive segment covering before-market solutions, such as surround view and rear-view cameras.

此外，我們看到汽車領域的出貨量增加和新的設計勝出，涵蓋了前市場解決方案，例如環視和後視攝像頭。

Lastly, on LCOS.

最後，關於 LCOS。

We continue to focus on AR goggle devices and head up display or HUDs for automotive.

我們繼續專注於 AR 護目鏡設備和汽車平視顯示器或 HUD。

Many of our industry-leading customers have demonstrated their state-of-the-art products, including holographic HUD, AR glasses and LiDAR system, with Himax LCOS technology inside at the 2020 CES with positive market feedbacks.

我們的許多行業領先客戶在 2020 年 CES 上展示了他們最先進的產品，包括全息 HUD、AR 眼鏡和 LiDAR 系統，其中包含 Himax LCOS 技術，並獲得了積極的市場反饋。

Our technology leadership and proven manufacturing expertise have made us the preferred partner for customers in these emerging markets and their ongoing engineering projects in AR goggles and HUD for automotive applications.

我們的技術領先地位和成熟的製造專業知識使我們成為這些新興市場客戶的首選合作夥伴，以及他們正在進行的用於汽車應用的 AR 護目鏡和 HUD 工程項目。

For non-driver IC business, we expect revenue to decrease by single-digit sequentially in the first quarter.

對於非驅動IC業務，我們預計第一季度收入將環比下降個位數。

Aside from the WOL sales, which are expected to be down slightly, the CMOS image sensor sales for multimedia markets have been affected by the coronavirus incident as the operations of many of the customers here are still not back in order.

除了預計將略有下降的 WOL 銷售外，多媒體市場的 CMOS 圖像傳感器銷售也受到了冠狀病毒事件的影響，因為這裡的許多客戶的運營仍未恢復正常。

That concludes my report for this quarter.

我本季度的報告到此結束。

Thank you for your interest in Himax.

感謝您對 Himax 的關注。

We appreciate joining today's call and are now ready to take questions.

我們很高興加入今天的電話會議，現在準備回答問題。

(Operator Instructions).

（操作員說明）。

Our first question comes from Jaeson Schmidt with Lake Street.

我們的第一個問題來自 Lake Street 的 Jaeson Schmidt。

I just want to start on the TDDI business.

我只想開始 TDDI 業務。

It sounds like you're seeing some nice traction, given some pricing tailwinds this year.

鑑於今年的一些定價順風，聽起來你看到了一些不錯的牽引力。

But outside of that, do you think some of the strength is really being driven by overall market growth or share gains as well?

但除此之外，您認為某些優勢是否真的是由整體市場增長或股票收益推動的？

Definitely, it is driven primarily by our share gains and the market momentum.

當然，這主要是由我們的股票收益和市場勢頭推動的。

Certainly, 5G is going to help.

當然，5G 會有所幫助。

And certainly, that, together with the current -- the issue of capacity constraint are also in unique position for having a mature and sizable and ready-to-offer capacity that all these factors combined, I think, is going to add to our strong momentum expected for this year opportunity end.

當然，與當前的產能限制問題一起，我認為擁有成熟、可觀且隨時可提供的產能，所有這些因素結合起來，將增加我們強大的產能。勢頭預計今年機會結束。

Okay.

好的。

That's helpful.

這很有幫助。

And then just curious if you could comment your thoughts on what channel inventory looks like in the Chinese smartphone market?

然後只是想知道您是否可以評論一下您對中國智能手機市場渠道庫存情況的看法？

It's a tricky question.

這是一個棘手的問題。

You're talking about smartphone, right?

你說的是智能手機，對吧？

Am I correct?

我對麼？

Yes.

是的。

Okay.

好的。

Okay, it's a tricky issue because the coronavirus situation, I think it's making things pretty blurry for us for the time being.

好的，這是一個棘手的問題，因為冠狀病毒的情況，我認為它暫時讓我們的事情變得非常模糊。

Although I think things will get clarified soon.

雖然我認為事情很快就會得到澄清。

Having said that, though, I mean, the situation is indeed evolving.

話雖如此，但我的意思是，情況確實在發展。

I think I would like to probably further elaborate on your question.

我想我可能想進一步詳細說明你的問題。

I think I mentioned earlier in my prepared remarks that we have taken into account overall, let me rephrase it.

我想我之前在準備好的評論中提到我們已經整體考慮到了，讓我重新表述一下。

We have discounted already the impact coming out of the virus into our guidance, right?

我們已經將病毒帶來的影響納入我們的指導，對吧？

And so what we've seen, we have counted in our guidance.

因此，我們所看到的，我們已經計入了我們的指導。

And on top of that, we have further widened our guidance on the low end just in case because, as I said earlier, it's still evolving.

最重要的是，我們進一步擴大了對低端的指導，以防萬一，因為正如我之前所說，它仍在不斷發展。

And so you asked me, so effectively how much impact the coronavirus is going to have on our Q1 results.

所以你問我，冠狀病毒將對我們的第一季度業績產生多大影響。

I would say, around 10% or even more of our all sales.

我想說，大約占我們所有銷售額的 10% 甚至更多。

And that is primarily coming from small panel, in particular, smartphone.

這主要來自小型面板，尤其是智能手機。

And so the smartphone TDDI impact.

智能手機 TDDI 的影響也是如此。

Now I'm sure you're all -- you are going to wonder why smartphone and why not glass panel?

現在我敢肯定你們都是——你們會想知道為什麼是智能手機，為什麼不是玻璃面板？

I think long story short, it is primarily because as many of you know, the larger the panel size, the less likely the panel makers are going to outsource their module assembly to third parties and vice versa.

我認為長話短說，這主要是因為正如你們許多人所知，面板尺寸越大，面板製造商就越不可能將其模塊組裝外包給第三方，反之亦然。

So in the case of TV, it is highly unlikely.

因此，在電視的情況下，這是極不可能的。

Actually, it is -- we have not seen that at all that panel makers are outsourcing their module assembly to outsiders.

實際上，我們根本沒有看到面板製造商將他們的模塊組裝外包給外部人員。

i.e.

IE。

panel makers are making their modules themselves.

面板製造商正在自己製造模塊。

And smartphone happens to be the smallest in size in display.

智能手機恰好是顯示屏尺寸最小的。

So it is the most likely that the module assembly is outsourced to third parties.

因此，模塊組裝最有可能外包給第三方。

Some of them are actually designated by end customers.

其中一些實際上是由最終客戶指定的。

Now it is the marginal side of the operations, which purchased our ICs, the front end side.

現在是運營的邊緣側，購買了我們的 IC，前端側。

So right now, what we're seeing is that a lot of small players specialty module assembly houses who are primarily focusing on smartphone for the reasons I mentioned earlier.

所以現在，我們看到的是，由於我之前提到的原因，很多小玩家專業模塊組裝廠主要專注於智能手機。

They are business because they are smaller in size, their business is not entirely in order, right?

他們是生意，因為他們的規模較小，他們的生意並不完全正常，對吧？

They are -- some of them, even the boss, all the employees are being effected of the office because of all these constraints created by the various situation.

他們是——他們中的一些人，甚至是老闆，所有員工都受到辦公室的影響，因為各種情況造成的所有這些限制。

And also, it is a lot more likely to -- for such smaller module houses to react quickly to any other changes because IC for small panel size accounts for a larger percentage of the low cost.

而且，更小的模塊房屋更有可能對任何其他變化做出快速反應，因為用於小面板尺寸的 IC 佔低成本的較大比例。

So they are very sensitive to inventory costs.

所以他們對庫存成本非常敏感。

While a large panel, especially very large TVs, IT accounts for a very small portion of the cost, so there's a concern over there is that they need to make sure that ICs are secured.

雖然大型面板，尤其是超大型電視，但 IT 只佔成本的一小部分，因此人們擔心他們需要確保 IC 安全。

Otherwise, if they continue to produce sale, which they are doing right now, regardless of the various situation.

否則，如果他們繼續生產銷售，他們現在正在做的，不管各種情況。

There will be a fewer shortage when they are ready to ship.

當他們準備好發貨時，短缺會減少。

So that's the kind of explains why the smartphone is the most severely impacted.

這就是為什麼智能手機受到最嚴重影響的原因。

And again, I think after discounting about 10% or even more of the impact that we saw over the last 2 weeks also out of the coronavirus situation.

再一次，我認為在將我們在過去兩周中看到的影響減少約 10% 甚至更多之後，也來自冠狀病毒的情況。

We are giving the guidance.

我們正在給予指導。

And on top of that, we're also widening our lower-end just to accomplish for that certainty.

最重要的是，我們還在擴大我們的低端產品，以實現這一確定性。

Having said that, though, we believe this is short term situation, although, I don't have a crystal ball, so I don't know how long this so called short-term is going to last.

話雖如此，但我們認為這是短期的情況，雖然，我沒有水晶球，所以我不知道這個所謂的短期會持續多久。

But I -- we believe the market is still there.

但我 - 我們相信市場仍然存在。

The 5G is still going to take off.

5G仍將起飛。

And the smartphone, again given our good pipeline, our capacity, our foundry capacity advantage, our design win, et cetera, et cetera.

而智能手機，再次考慮到我們良好的管道、我們的產能、我們的代工產能優勢、我們的設計勝利等等。

I think, most likely, we are going to see explosive growth in (inaudible), too.

我認為，很可能，我們也將看到（聽不清）的爆炸性增長。

So that is already on top of how we indicated around 10% to 20% sequential increase for Q1 expected.

因此，這已經超出了我們對第一季度預期連續增長約 10% 至 20% 的預測。

That is I think I extended answer to your question, Jaeson.

那就是我想我擴展了對你問題的回答，傑森。

No.

不。

That's very helpful.

這很有幫助。

I appreciate that color.

我很欣賞那種顏色。

And then just last 1 for me, and I'll jump back in the queue.

然後對我來說最後 1 個，我會跳回隊列中。

You expecting some pretty nice gross margin net expansion here in Q1 -- sorry, 22% at the midpoint of guidance.

您預計第一季度會有相當不錯的毛利率淨增長——抱歉，在指導的中點為 22%。

Should we assume that, that is the low watermark for the year?

我們是否應該假設這是今年的低水位線？

Do you still expect gross margin to expand as we progress throughout 2020?

隨著我們整個 2020 年的進展，您是否仍然預計毛利率會擴大？

I certainly believe so.

我當然相信。

We expect in 2020, the gross margin to further improve because both smartphone, small size and all the last size from the capacity are both facing constraint.

我們預計 2020 年毛利率將進一步提高，因為智能手機、小尺寸和所有最後一個尺寸都面臨產能限制。

I mentioned again and again earlier in my prepared remarks.

我之前在準備好的發言中一再提到。

So that is going to provide a good price support.

因此，這將提供良好的價格支持。

And also, specifically, for example, TDDI new products, we're going to ensure better ASP, non drivers such as (inaudible), for example, where actually, it's -- we could say the penetration is low for 8K TV, but we do have a major major market position, EBIT really going to take off, right?

而且，具體來說，例如 TDDI 新產品，我們將確保更好的 ASP，非驅動因素，例如（聽不清），例如，實際上，我們可以說 8K 電視的滲透率很低，但是我們確實有一個主要的主要市場地位，息稅前利潤真的會起飛，對嗎？

So again, that is high ASP and high margin.

再說一次，這是高平均售價和高利潤率。

So other loan driver products as well are going to enjoy whether as a SPL margin.

因此，其他貸款驅動產品也將享受是否作為 SPL 保證金。

So I think we have a strong level of confidence that 2019 gross margins is ordinarily well.

所以我認為我們對 2019 年的毛利率通常很好有很強的信心。

And we certainly expect a good rebound from that in 2020.

我們當然預計 2020 年會出現良好的反彈。

(Operator Instructions).

（操作員說明）。

Our next question comes from Suji Desilva with Roth Capital.

我們的下一個問題來自 Roth Capital 的 Suji Desilva。

Congratulations for progress here.

恭喜這裡的進步。

The TDDI market, it seems like it's a tight supply and firm pricing.

TDDI 市場，似乎供應緊張且定價堅挺。

How many quarters do you think that situation can persist before a pricing competition resumes competitively?

在定價競爭恢復競爭之前，您認為這種情況可以持續多少個季度？

Well, I think right now, what we're seeing is the customers and customers included very anxious about capacity access.

好吧，我認為現在，我們看到的是客戶和客戶包括對容量訪問非常焦慮。

So unlike, this is a very, very different situation from none of us here.

如此不同，這是與我們這裡沒有人非常非常不同的情況。

So I mean, fair enough, we got this virus situation.

所以我的意思是，公平地說，我們遇到了這種病毒情況。

But I think overall, again, we believe the total market size are not going to -- there could be some small haircuts, although TDDI this year was continuing to grow within the year.

但我認為總體而言，我們相信總市場規模不會 - 可能會有一些小幅度的削減，儘管今年 TDDI 在年內繼續增長。

So we don't think -- we think TDDI share of market is going to further grow this year, and that is going to make the situation tightening situation.

所以我們不認為 - 我們認為今年 TDDI 的市場份額會進一步增長，這將使形勢趨緊。

A real issue for both our direct customers and end customers.

對於我們的直接客戶和最終客戶來說都是一個真正的問題。

So I think in this year.

所以我認為在今年。

Okay.

好的。

That's helpful, Jordan.

這很有幫助，喬丹。

And then the large panel, clearly, the China panel makers are gaining some share from [great].

然後是大型面板，顯然，中國面板製造商正在從 [great] 那裡獲得一些份額。

Can you get a sense of how much of the market is transitioning over?

您能了解有多少市場正在過渡嗎？

And then how much is Himax's share go to China panel makers?

那麼奇景光電在中國面板製造商的份額有多少？

We -- for a large display driver pieces, vast majority of our I think effect share breakdown right now.

我們 - 對於大型顯示驅動程序，我認為我們現在的大部分影響份額都在細分。

I mean, I would say, probably more than happy to say about driver IC for large panel is coming from Chinese customers.

我的意思是，我會說，大面板驅動 IC 來自中國客戶可能會非常高興。

And by the way, we are -- I think we are pretty -- we are #1 or equal #1 in China with a pretty decent market share.

順便說一句，我們是 - 我認為我們很漂亮 - 我們在中國是第一或平等的第一，擁有相當可觀的市場份額。

And in terms of how much China is going to get from the Korean restructuring.

以及中國將從韓國重組中獲得多少收益。

I guess, it's harder to predict this year, even though I don't think I can give you, I can share some insights from 2019 against 2018.

我想，今年更難預測，儘管我認為我不能給你，但我可以分享一些 2019 年對 2018 年的見解。

If you look at the cost output -- cost area output distribution, in 2018, Korea had about 32%, while China had 35% right?

如果你看成本產出——成本區域產出分佈，2018年韓國有32%左右，中國有35%對吧？

So it's 32% against 35% in 2018.

因此，這一比例為 32%，而 2018 年為 35%。

While in 2019, the margin already widened to 28% against 43% or 44%.

而在 2019 年，利潤率已經從 43% 或 44% 擴大到 28%。

And I think the gap is expected to continue to widen further for 2019.

而且我認為差距預計將在 2019 年繼續進一步擴大。

So I think it is safe to say that in 2019, China is going to comment half or more than half of the global gross output for large panel.

所以我認為可以肯定地說，在 2019 年，中國將佔全球總產量的一半或一半以上。

So that's pretty significant.

所以這非常重要。

Yes.

是的。

So quite a move.

這麼大的動作。

Okay, great.

好，太棒了。

And then my last question is on non-driver and WLO, if your lead customer here.

然後我的最後一個問題是關於非司機和 WLO，如果您的主要客戶在這裡。

Is there an opportunity for content gain, given competitive capacity challenges or is that something where that's still expected to be phased out over time?

考慮到競爭能力的挑戰，是否有機會獲得內容，或者隨著時間的推移，這仍然會被逐步淘汰？

I think I cannot elaborate too much on this, given the obvious reason, I can only say that right now, we are providing to our anchor customer.

我想我不能詳細說明這一點，鑑於顯而易見的原因，我只能說，現在，我們正在為我們的主力客戶提供服務。

We are the sole source.

我們是唯一的來源。

And also, we are working on further projects.

而且，我們正在開展進一步的項目。

Some of them maybe will be bigger in size compared to current project.

與當前項目相比，其中一些可能會更大。

And I cannot indicate precisely, exactly when the new project is going to sum up cost rationale.

而且我無法準確指出新項目何時總結成本原理。

I think I just have to keep updating you guys in due course.

我想我只需要在適當的時候繼續更新你們。

And I'm not showing any further questions at this time.

我目前沒有提出任何進一步的問題。

Any more questions from the floor?

還有其他問題嗎？

Without more questions, as a final note, Jackie, our CFO, will maintain investor marketing activities and continue to attend investor conferences.

沒有更多問題，作為最後一點，我們的首席財務官 Jackie 將維持投資者營銷活動並繼續參加投資者會議。

We'll announce the details as they caught up.

我們將在他們趕上時公佈細節。

Thank you, and have a nice day.

謝謝你，祝你有美好的一天。

Ladies and gentlemen, this concludes today's conference call.

女士們，先生們，今天的電話會議到此結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect.

您現在可以斷開連接。