奇景光電 (HIMX) 2023 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Himax Technologies Fourth Quarter and Full Year 2023 Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 Himax Technologies 2023 年第四季和全年財報電話會議。 （操作員指示）請注意，今天的會議正在錄音。

I would now like to turn the conference over to your host, Mr. Mark Schwalenberg from MZ Group. Please go ahead.

現在，我想將會議交給主持人，MZ 集團的馬克·施瓦倫伯格先生。請繼續。

Welcome everyone, to the Himax Fourth Quarter and Full Year 2023 Earnings Call. Joining us from the Company are Mr. Jordan Wu, President and Chief Executive Officer; Ms. Jessica Pan, Chief Financial Officer; and Mr. Eric Li, Chief IR/PR Officer.

歡迎大家參加 Himax 2023 年第四季和全年財報電話會議。來自公司的與我們一起參加活動的有總裁兼執行長吳喬丹先生；財務長潘潔女士；以及首席投資者關係/公關官 Eric Li 先生。

After the Company's prepared remarks, we have allocated time for questions in a Q&A session. If you've not yet received a copy of today's results release, please e-mail himx@mzgroup.us, access the press release on financial portals, or download a copy from Himax's website at www.himax.com.tw.

在公司準備好發言後，我們安排了問答環節來回答問題。如果您尚未收到今天的業績報告副本，請發送電子郵件至 himx@mzgroup.us、在金融入口網站上存取新聞稿，或從 Himax 網站 www.himax.com.tw 下載副本。

Before we begin the formal remarks, I'd like to remind everyone that some of the statements in this conference call, including statements regarding expected future financial results and industry growth, 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.

在我們開始正式發言之前，我想提醒大家，本次電話會議中的某些陳述，包括關於預期未來財務業績和行業增長的陳述，都是前瞻性陳述，涉及許多風險和不確定因素，可能導致實際事件或結果與本次電話會議中描述的結果存在重大差異。

A list of factors can be found in the Company's SEC filings, Form 20-F for the year ended December 31, 2022, in the section entitled Risk Factors, as may be amended. Except for the Company's full year of 2022 financials, which were provided in the Company's 20-F and filed with the SEC on April 6, 2023, the financial information included in this conference call is unaudited and consolidated and prepared in accordance with IFRS accounting.

您可以在本公司向美國證券交易委員會提交的截至 2022 年 12 月 31 日的年度 20-F 表格中的「風險因素」部分中找到一系列因素，並可能會對其進行修訂。除本公司 2022 年全年財務資料（已在本公司 20-F 提供並於 2023 年 4 月 6 日提交給美國證券交易委員會 (SEC) ）外，本次電話會議中包含的財務資訊均未經審計，且根據 IFRS 會計進行合併和編制。

Such financial information is generated internally and has not been subjected to the same review and 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 the audited consolidated financial information for the same period. 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.

此類財務資訊是內部產生的，並未經過與我們年度合併財務報表相同的審查和審查，包括內部審計程序和獨立審計師的外部審計，並且可能與同一時期的審計合併財務資訊有重大差異。無論因新資訊、未來事件或其他原因，本公司均不承擔公開更新或修改任何前瞻性聲明的義務。

I would now like to turn the call over to Mr. Eric Li. Eric, the floor is yours.

現在我想將電話轉給 Eric Li 先生。艾瑞克，現在你來發言。

Thank you Mark, and thank you everyone for joining us. My name is Eric Li, Chief IR/PR Officer at Himax. On today's call, I will first review the Himax consolidated financial performance for the fourth quarter and full year 2023, followed by our first quarter 2024 outlook. Jordan will then give an update on the status of our business, after which we will take questions. We will review our financials on an IFRS basis.

謝謝馬克，也謝謝大家的參與。我叫 Eric Li，是 Himax 的首席投資人關係/公關長。在今天的電話會議上，我將首先回顧 Himax 2023 年第四季和全年的綜合財務業績，然後回顧我們對 2024 年第一季的展望。然後喬丹將介紹我們業務的最新狀況，然後我們將回答問題。我們將根據國際財務報告準則 (IFRS) 審查我們的財務狀況。

We are delighted to announce that Q4 2023 revenues and profits both surpassed the guidance, while gross margin was in-line with the guidance issued on November 9, 2023. This was primarily attributable to better-than-expected order momentum in major product categories as well as cost improvements.

我們很高興地宣布，2023 年第四季度的收入和利潤均超過了預期，而毛利率與 2023 年 11 月 9 日發布的預期一致。

Fourth quarter revenues registered $227.7 million, a decrease of 4.5% sequentially, but exceeding our guidance range of a 5.0% to 11.0% decline. Gross margin came in at 30.3%, within our guidance range of around 30%, but down from 31.4% last quarter. Q4 profit per diluted ADS was 13.5 cents, surpassing the guidance range of 9.0 cents to 13.0 cents.

第四季營收為 2.277 億美元，季減 4.5%，但超過了我們預期的 5.0% 至 11.0% 的降幅範圍。毛利率為 30.3%，在我們預期的 30% 左右的範圍內，但低於上一季的 31.4%。第四季每股攤薄美國存託憑證利潤為 13.5 美分，超過 9.0 美分至 13.0 美分的預期範圍。

Revenue from large display drivers came in at $33.6 million, reflecting a sequential decrease of 23.1%. The decline was predominantly driven by prevailing weak macroeconomic conditions amidst the traditional peak seasonality in the fourth quarter.

大型顯示器驅動器收入為 3,360 萬美元，季減 23.1%。下降的主要原因是第四季處於傳統的季節性旺季，宏觀經濟狀況普遍疲軟。

Our TV IC sales declined mid-teens sequentially due to ongoing strict production and inventory control measures of leading customers. Monitor and notebook IC sales both declined double-digits quarter-over-quarter caused by a slowdown in order momentum as customers pulled forward their inventory purchases during prior quarter. Sales of large panel driver IC accounted for 14.8% of total revenue for the quarter, compared to 18.3% last quarter and 16.6% a year ago.

由於主要客戶持續採取嚴格的生產和庫存控制措施，我們的電視 IC 銷售量較上季下降百分之十幾。由於客戶在上一季提前削減庫存採購，導致訂單動能放緩，顯示器和筆記型電腦 IC 銷售量較上季均出現兩位數下降。大面板驅動IC銷售額佔本季總營收的14.8％，上季為18.3％，去年同期為16.6％。

Exceeding the guidance range, small and medium-sized display driver segment revenue reached $163.1 million, a sequential increase of 1.2%. This was underpinned by outperforming sales, particularly in TDDI products for automotive and tablet markets.

中小尺寸顯示器驅動器部門營收達 1.631 億美元，季增 1.2%，超出預期範圍。這是由於出色的銷售表現所支撐，尤其是針對汽車和平板電腦市場的 TDDI 產品。

Q4 automotive driver sales, combining both traditional DDIC and TDDI, experienced a slight decline following the robust order restocking in both during the third quarter. However, Q4 automotive TDDI sales still increased high-teens sequentially, bucking the industry downturn thanks to our solid pipeline of the design-win projects.

由於第三季訂單補貨強勁，第四季汽車驅動器銷量（包括傳統 DDIC 和 TDDI）略有下降。不過，由於我們穩固的設計得標項目儲備，第四季度汽車 TDDI 銷售額仍比上一季增長了高位，抵禦了行業下滑的影響。

Meanwhile, our industrial-leading, cutting-edge automotive LTDI products started mass production for Geely Auto's NEVs in the third quarter of 2023. Taken together, this not only solidifies our leadership in next-generation automotive displays, but also reflects the robust market demand for advanced display technology. Jordan will elaborate in a few minutes.

同時，我們業界領先、尖端的汽車LTDI產品於2023年第三季開始為吉利汽車的新能源汽車量產。喬丹將在幾分鐘內詳細說明。

Fourth quarter automotive business encompassing drivers, automotive Tcon and OLED sales, continued to be our largest revenue contributor at over 45% of total sales. For tablet, Q4 sales grew high teens sequentially, exceeding our guidance, driven by successful new product launches by our customers during the quarter. Conversely, smartphone driver sales declined as expected amidst a subdued festival season characterized by sluggish demand. The small and medium-sized driver IC segment accounted for 71.6% of total sales for the quarter compared to 67.6% in the previous quarter and a year ago.

第四季汽車業務包括驅動器、汽車 Tcon 和 OLED 銷售，繼續成為我們最大的收入貢獻者，佔總銷售額的 45% 以上。就平板電腦而言，第四季度的銷售額環比增長了百分之十幾，超過了我們的預期，這得益於我們客戶在本季度成功推出的新產品。相反，由於節日期間需求低迷，智慧型手機驅動程式銷售量如預期般下降。中小型驅動IC部分佔本季總銷售額的71.6％，而上一季及去年同期均為67.6％。

Fourth quarter non-driver sales also exceeded guidance with revenue of $31.0 million, but declined 8.2% from a quarter ago. The better-than-expected performance is attributable to a resurgence in orders from our Tcon product line. Adoption of our automotive local dimming Tcon is rapidly expanding as evidenced by hundreds of project awards across the board. This paves the way for robust growth in coming years, mirroring the success seen in our automotive TDDI. Jordan will share some insights shortly. Non-driver products accounted for 13.6% of total revenues and compared to 14.1% in the previous quarter and 15.8% a year ago.

第四季非駕駛員銷售額也超過了預期，收入為 3,100 萬美元，但比上一季下降了 8.2%。業績優於預期得益於我們Tcon產品線訂單的復甦。我們的汽車局部調光 Tcon 的應用正在迅速擴大，數百個項目獎項的頒發證明了這一點。這為未來幾年的強勁成長鋪平了道路，反映了我們在汽車 TDDI 中取得的成功。喬丹很快就會分享一些見解。非駕駛產品佔總收入的 13.6%，而上一季為 14.1%，去年同期為 15.8%。

Fourth quarter operating expenses were $52.3 million, a decrease of 17.9% from the previous quarter and roughly flat compared to a year ago. The substantial sequential decrease was caused mainly by decreased annual bonus and salary expenses, partially offset by an increase in R&D expenses.

第四季營運費用為 5,230 萬美元，季減 17.9%，與去年同期基本持平。環比大幅下降主要由於年度獎金和工資支出減少，但研發支出增加部分抵銷了下降。

Our standard practice of granting annual bonuses, including cash and RSUs at the end of September each year can lead to higher IFRS operating expenses in the third quarter compared to other quarters of the year. Amidst the prevailing macroeconomic headwinds, we are currently exercising strict budget and expense control with full year 2023 OPEX declining 4.0% compared to the year before.

我們每年 9 月底發放年度獎金（包括現金和 RSU）的標準做法可能導致第三季的 IFRS 營運費用高於一年中其他季度。在當前宏觀經濟逆風的背景下，我們目前正在嚴格控制預算和費用，2023 年全年營運支出較上年下降 4.0%。

Fourth quarter operating income was $16.7 million or 7.3% of sales compared to 10.5% of sales for the same period last year and 4.6% of sales last quarter. The sequential increase was primarily a result of lower operating expenses from lower annual bonus compensation, partially offset by decreased sales and gross margin in fourth quarter. The year-over-year decrease was primarily a result of lower sales and gross margin compared to the same period last year.

第四季營業收入為 1,670 萬美元，佔銷售額的 7.3%，去年同期為 10.5%，上季為 4.6%。環比成長主要由於年度獎金減少導致的營業費用降低，但第四季度銷售額和毛利率的下降部分抵消了這一增長。年比下降主要是由於銷售額和毛利率較上年同期下降。

Fourth quarter after-tax profit was $23.6 million or 13.5 cents per diluted ADS compared to $11.2 million or 6.4 cents per diluted ADS last quarter and $42.2 million or 24.1 cents in the same period last year. It's worth noting that the favorable after-tax profits exceeding operating income reflects the positive tax adjustments made to rectify overestimated tax expenses for preceding quarters this year. As a reminder and for the purpose of year-over-year comparison, we made a divestiture of long-term assets during Q4 2022, resulting in a non-operating income of around $11 million on an after-tax basis.

第四季稅後利潤為 2,360 萬美元，即每股攤薄美國存託憑證獲利 6.4 美分，去年同期稅後利潤為 1,120 萬美元，即每股攤薄美國存託憑證獲利 6.4 美分，去年同期稅後利潤為 4,220 萬美元，即每股攤薄美國存託憑證 24.1 美分。值得注意的是，稅後利潤超過營業收入的良好表現，反映了公司為糾正今年前幾季高估的稅費而做出的積極稅收調整。需要提醒的是，為了進行同比比較，我們在 2022 年第四季剝離了長期資產，導致稅後非營業收入約為 1,100 萬美元。

Now let's quickly review the financial performance for the full year 2023. Revenues totaled $945.4 million, reflecting a 21.3% decline compared to 2022. Persistent subdued global demand, coupled with looming recession concerns, presented significant challenges to our operations throughout 2023. These market dynamics adversely affected both demand and procurement processes of panel customers, particularly in the realm of consumer electronics. Yet, our optimism in the automotive business remains steadfast as automotive TDDI sales witnessed a remarkable surge of over 50%, reflecting the resilience and potential of our largest business segment.

現在讓我們快速回顧一下 2023 年全年的財務業績。然而，我們對汽車業務的樂觀態度依然堅定，因為汽車 TDDI 銷量顯著增長了 50% 以上，反映了我們最大業務部門的韌性和潛力。

Revenue from large panel display drivers totaled $175.7 million in 2023, marking a decrease of 33.5% year-over-year and representing 18.6% of total sales as compared to 22.0% in 2022. Small and medium-sized driver sales totaled $629.2 million, reflecting a decrease of 19.2% year-over-year and accounting for 66.5% of our total revenues as compared to 64.8% in 2022. Non-driver product sales totaled $140.5 million, a decrease of 11.2% year-over-year and representing 14.9% of our total sales, as compared to 13.2% a year ago.

2023 年大面板顯示器驅動器收入總計 1.757 億美元，年減 33.5%，佔總銷售額的 18.6%，而 2022 年為 22.0%。中小型驅動器銷售額總計 6.292 億美元，同比下降 19.2%。 05 億美元，年減 11.2%，占我們總銷售額的 14.9%，而一年前為 13.2%。

Inventory management also presented unique challenges for us throughout the sluggish demand environment this year. To navigate these circumstances, our primary objectives were the strategic depletion of excess inventory while also tactically controlling our wafer starts. Following quarters of aggressive destocking, which often involved sacrificing short term gross margin, inventory decreased to near historical norms by end of 2023. The remaining stocks feature promising customer design-ins and long product life cycles that lay the groundwork for a more stable outlook in 2024.

在全年需求低迷的環境下，庫存管理也為我們帶來了獨特的挑戰。為了應對這些情況，我們的主要目標是策略性地消耗過剩庫存，同時戰術性地控制我們的晶圓啟動。經過幾個季度的積極去庫存，這往往意味著犧牲短期毛利率，到 2023 年底，庫存減少到接近歷史正常水平。

Gross margin in 2023 was 27.9%, decreasing from 40.5% in 2022. As a reminder, in Q2, we strategically terminated high-cost foundry capacity agreements, leading to a depressed Q2 gross margin of just 21.7%. Despite the temporary margin contraction, this decision liberates new wafer starts from minimum fulfillment constraints while positioning us to capitalize on a turnaround in demand.

2023 年的毛利率為 27.9%，低於 2022 年的 40.5%。儘管利潤率暫時縮水，但這項決定將新晶圓的生產從最低履行限制中解放出來，同時使我們能夠利用需求轉變的機會。

Operating expenses in 2023 were $220.3 million, a decline of 4.0% from 2022, primarily a result of the lower vested portion of the annual bonus compensation awarded to employees in 2023 and preceding years, partially offset by increased salary and R&D expenses. 2023 operating income was $43.2 million, or 4.6% of sales, a decrease from $257.6 million, or 21.4% of sales in 2022. Our net profit for 2023 was $50.6 million, or $0.29 per diluted ADS as compared to $237 million or $1.36 per diluted ADS in 2022.

2023 年營運費用為 2.203 億美元，較 2022 年下降 4.0%，主要原因是 2023 年及之前年度授予員工的年度獎金補償中歸屬部分較低，但工資和研發費用的增加部分抵消了這一影響。 2023 年營業收入為 4,320 萬美元，佔銷售額的 4.6%，低於 2022 年的 2.576 億美元，佔銷售額的 21.4%。

Turning to the balance sheet. We had $206.4 million of cash, cash equivalents and other financial assets as of December 31, 2023. This compares to $229.9 million at the same time last year and $155.4 million a quarter ago. We achieved a strong positive operating cash flow of $68.7 million for the fourth quarter, a result of substantial reduction in inventory across major product lines. As of December 31, 2023, we had $40.5 million in long term unsecured loans with $6.0 million representing the current portion.

轉向資產負債表。截至 2023 年 12 月 31 日，我們擁有 2.064 億美元的現金、現金等價物和其他金融資產。由於主要產品線的庫存大幅減少，我們在第四季度實現了 6,870 萬美元的強勁正營運現金流。截至 2023 年 12 月 31 日，我們擁有 4,050 萬美元的長期無擔保貸款，其中 600 萬美元為流動部分。

Our year-end inventories were $217.3 million, lower than $259.6 million last quarter and $370.9 million at the end of last year. Our inventory level has declined steadily over the last 5 quarters and reached a healthy level by the end of 2023. Accounts receivable at the end of December 2023 was $235.8 million, a decline from $248.5 million last quarter and down from $261.1 million a year ago.

我們的年終庫存為 2.173 億美元，低於上季的 2.596 億美元和去年年底的 3.709 億美元。我們的庫存水準在過去 5 個季度中穩步下降，並在 2023 年底達到健康水準。

DSO was 91 days at the quarter end as compared to 95 days last quarter and 79 days a year ago. Fourth quarter capital expenditures were $15.1 million, versus $2.6 million last quarter and $2.3 million a year ago. Fourth quarter CapEx was mainly allocated to in-house testers for our IC design business in addition to other R&D-related equipment. Total capital expenditures for 2023 was $23.4 million as compared to $11.8 million in 2022.

本季末的 DSO 為 91 天，而上季為 95 天，去年同期為 79 天。第四季資本支出為 1,510 萬美元，上一季為 260 萬美元，去年同期為 230 萬美元。第四季的資本支出主要分配給我們積體電路設計業務的內部測試人員以及其他研發相關設備。 2023 年總資本支出為 2,340 萬美元，而 2022 年為 1,180 萬美元。

As of December 31, 2023, Himax had 174.7 million ADS outstanding, unchanged from last quarter. On a fully diluted basis, the total number of ADS outstanding for the fourth quarter was 175 million.

截至 2023 年 12 月 31 日，奇景光電的流通 ADS 為 1.747 億股，與上一季持平。以全面攤薄計算，第四季流通在外的美國存託憑證總額為1.75億股。

Now turning to our first quarter 2024 guidance. We expect first quarter revenues to decline 9% to 16% sequentially. Gross margin is expected to be around 28.5% depending on the final product mix. The first quarter profit attributable to shareholders is estimated to be in the range of 2.0 cents to 5.0 cents per fully diluted ADS.

現在來談談我們的 2024 年第一季指引。我們預計第一季營收將環比下降 9% 至 16%。根據最終產品組合，毛利率預計在 28.5% 左右。預計第一季股東應占利潤在每股完全稀釋美國存託憑證 2.0 美分至 5.0 美分之間。

I will now turn the call over to Jordan to discuss our Q1 outlook. Jordan, the floor is yours.

現在我將把電話轉給喬丹，討論我們的第一季展望。喬丹，現在你來發言。

Traditionally, business operations in the first quarter decelerate due to the Lunar New Year holidays. This year, exacerbated conditions due to sluggish demand are causing panel makers to strategically lower factory utilizations, in an attempt to support panel pricing and profitability.

傳統上，由於農曆新年假期的影響，第一季的企業營運通常會放緩。今年，由於需求低迷導致的惡化狀況，導致面板製造商策略性地降低工廠利用率，以試圖支撐面板的價格和盈利能力。

In tandem, OEMs and end customers are maintaining their cautious approach with heightened procurement scrutiny, even with inventories now at more manageable levels. This shift has resulted in shortened forecasts and more frequent last-minute orders, ultimately constraining our visibility, particularly in consumer electronics products.

同時，即使庫存目前處於更易於管理的水平，原始設備製造商 (OEM) 和最終客戶仍保持謹慎態度，加強採購審查。這種轉變導致預測時間縮短和最後一刻的訂單更加頻繁，最終限制了我們的知名度，特別是在消費性電子產品方面。

To fortify the resilience of our operations, we are actively implementing strategies to optimize costs and diversify suppliers in both foundries and back-end sources to enhance supply flexibility and cost-effectiveness. The recent partnership with Nexchip for the automotive market illustrated our supplier diversification strategy. It also highlighted our strategic approach to better align with customers' regional supply policies, particularly addressing the surging demand in China's automotive industry.

為了增強營運的彈性，我們正在積極實施成本優化策略，並在代工廠和後端來源方面實現供應商多元化，以提高供應靈活性和成本效益。最近與 Nexchip 在汽車市場的合作體現了我們的供應商多元化策略。它也強調了我們的策略方針，以更好地配合客戶的區域供應政策，特別是應對中國汽車產業日益增長的需求。

In addition, our recent presence at the CES provided a comprehensive outlook on our strategic focus for the upcoming years, covering automotive, WiseEye AI and optical technologies. In automotive, our primary revenue contributor, we remain as optimistic as ever given our extensive, unparalleled product portfolio across a broad spectrum of technologies from mainstream LCD technology to the emerging OLED technology.

此外，我們最近在 CES 上的亮相為我們未來幾年的戰略重點提供了全面展望，涵蓋汽車、WiseEye AI 和光學技術。汽車是我們的主要收入來源，鑑於我們擁有涵蓋從主流 LCD 技術到新興 OLED 技術的廣泛技術領域的廣泛、無與倫比的產品組合，我們仍然一如既往地保持樂觀。

Notably, within the automotive LCD display sector, we have secured hundreds of design-wins in TDDI and local dimming Tcon and continue to see ongoing expansion in our pipeline. The majority of these design-wins are slated for mass production in the next 2 years, underscoring our continued market dominance moving forward.

值得注意的是，在汽車液晶顯示器領域，我們已經在 TDDI 和局部調光 Tcon 方面獲得了數百項設計大獎，我們的產品線仍在擴展中。大多數設計成果將在未來兩年內投入量產，鞏固我們在未來市場中的持續主導地位。

Furthermore, our expansion into automotive OLED displays covering all of DDIC, Tcon, and touch controller, bolsters our market share leadership by offering customers an integrated bundle solution. As a reminder, our automotive driver business represented 36% of our total sales in the full-year 2023 and we anticipate it will expand to well over 40% of our total sales in 2024.

此外，我們將業務擴展到汽車 OLED 顯示器，涵蓋所有 DDIC、Tcon 和觸控控制器，透過為客戶提供整合的捆綁解決方案，增強了我們的市場份額領先地位。提醒一下，我們的汽車驅動器業務在 2023 年全年占我們總銷售額的 36%，我們預計到 2024 年它將擴大到我們總銷售額的 40% 以上。

In the AI domain, we are relentlessly dedicated to our WiseEye product line, where we have already achieved industry-leading ultralow power consumption and AI inference performance. Our achievement with WiseEye is also now further supported through strategic collaborations with ecosystem partners and system integration companies covering a broad range of AI applications. Concurrently, we are actively expanding our easy to adopt WiseEye module offering for the endpoint AI market to cater to its diverse needs and capitalize on the extensive opportunities in endpoint AI.

在AI領域，我們堅持不懈地致力於WiseEye產品線，並已實現業界領先的超低功耗和AI推理性能。我們與 WiseEye 合作所取得的成就現在也透過與生態系統合作夥伴和系統整合公司開展策略合作得到了進一步支持，這些合作涵蓋了廣泛的 AI 應用。同時，我們正在積極擴展我們易於採用的 WiseEye 模組產品，以滿足端點 AI 市場的多樣化需求，並利用端點 AI 的廣泛機會。

Looking further out on the horizon, while the realization of LCoS may span several years, the ultra-illuminance Color Sequential Front-Lit LCoS microdisplay that we unveiled at the CES marked a major technology breakthrough that we believe will pave the way for the realization of true see-through AR goggles.

放眼未來，雖然 LCoS 的實現可能需要數年時間，但我們在 CES 上推出的超高照度色序前照式 LCoS 微型顯示器標誌著一項重大技術突破，我們相信這將為實現真正的透明 AR 護目鏡鋪平道路。

In summary, driven by accelerating growth in our automotive segment and expansion beyond our core driver business, we are well positioned for sustainable long-term revenue growth and profitability. Furthermore, our automotive, WiseEye, and LCoS product lines have attracted a strong global client base, which significantly extends our reach and strengthens our presence in markets worldwide while diversifying regional exposure and adding stability to our operations.

總而言之，在汽車領域加速成長和核心驅動業務之外擴張的推動下，我們已準備好實現可持續的長期收入成長和獲利能力。此外，我們的汽車、WiseEye 和 LCoS 產品線吸引了強大的全球客戶群，這極大地擴展了我們的業務範圍並加強了我們在全球市場的地位，同時實現了區域多元化並增強了我們的營運穩定性。

With that I will now begin with an update on the large panel driver IC business. In Q1 2024, we anticipate a sequential decline of single digit in large display driver IC revenue, primarily attributed to weaker-than-expected sell-through during the slow season. As I mentioned, panel makers are deliberately lowering factory utilizations, striving to safeguard panel prices by constraining panel supply amidst the prevailing sluggish market. We expect Q1 sales for TV and monitor ICs to decline quarter-over-quarter. However, Q1 notebook IC sales are poised for decent increase, bolstered by customer restocking following several quarters of muted demand.

現在我將開始介紹大型面板驅動 IC 業務的最新進展。 2024 年第一季度，我們預期大螢幕驅動 IC 營收將季減個位數，主要原因是淡季銷售量低於預期。正如我剛才提到的，在當前市場低迷的情況下，面板製造商正在刻意降低工廠利用率，並努力透過限制面板供應來維護面板價格。我們預計第一季電視和顯示器 IC 的銷量將環比下降。不過，在經歷了幾個季度的需求低迷之後，由於客戶補貨的推動，第一季筆記型電腦 IC 銷售有望大幅成長。

In the notebook market, as customers strive to differentiate and add value to their products, a discernible trend is unfolding, marked by increasing adoption of touch features and AMOLED displays in premium notebooks and upcoming AI PCs. Touch features enhance user interaction and enrich AI user experience while AMOLED display elevates visual enhancements in areas such as gaming and entertainment. It's crucial to emphasize our heightened focus and the growing significance of both technologies.

在筆記型電腦市場，隨著客戶努力實現產品的差異化和增值，一種明顯的趨勢正在顯現，其特點是高階筆記型電腦和即將推出的 AI PC 越來越多地採用觸控功能和 AMOLED 顯示器。觸控功能增強了使用者互動並豐富了 AI 用戶體驗，而 AMOLED 顯示器則提升了遊戲和娛樂等領域的視覺效果。強調我們的高度關注和這兩項技術日益增長的重要性至關重要。

Notably, during CES this year, we unveiled industry-leading on-cell AMOLED touch controller and in-cell TDDI for premium OLED and LCD notebooks respectively. Our on-cell AMOLED touch controller is designed to address the demand for accurate touch response and enhanced handwriting capability in the emerging mid-sized OLED displays for notebooks that feature thinner, lighter, brighter and wider color gamut visual experience.

值得注意的是，在今年的 CES 期間，我們分別針對高階 OLED 和 LCD 筆記型電腦推出了業界領先的 on-cell AMOLED 觸控控制器和 in-cell TDDI。我們的 On-Cell AMOLED 觸控控制器旨在滿足新興中型筆記型電腦 OLED 顯示器對精確觸控響應和增強手寫功能的需求，具有更薄、更輕、更亮和更寬色域的視覺體驗。

What distinguishes our touch controller is a comprehensive set of features, which include support for various OLED panel types in rigid, flexible and hybrid, the capability to handle responsive touch operations of up to 10 fingers, and compatibility with various industry-standard active stylus protocols. By expanding our OLED portfolio to include a touch controller IC along with existing DDIC and Tcon, we provide a comprehensive AMOLED notebook solution.

我們的觸控控制器的獨特之處在於其全面的功能，其中包括支援各種類型的剛性、柔性和混合 OLED 面板、處理多達 10 個手指的響應觸摸操作的能力，以及與各種行業標準的有源手寫筆協議的兼容性。透過擴展我們的 OLED 產品組合，包括觸控控制器 IC 以及現有的 DDIC 和 Tcon，我們提供了全面的 AMOLED 筆記型電腦解決方案。

Meanwhile, our recently launched in-cell TDDI for LCD notebooks offers precise touch sensitivity, vibrant multi-finger operation, and acute active stylus functionalities, along with support for large size, high resolution, low power consumption, and slim bezel designs.

同時，我們最近推出的 LCD 筆記型電腦的內嵌式 TDDI 提供精確的觸控靈敏度、生動的多指操作和敏銳的主動手寫筆功能，同時支援大尺寸、高解析度、低功耗和薄邊框設計。

By leveraging these extensive product portfolios, we are well positioned to capitalize on this market shift through collaborations with key Korean and Chinese panel makers where mass production is scheduled to commence in the second half of this year for next generation premium notebook models.

利用這些廣泛的產品組合，我們可以透過與韓國和中國主要面板製造商的合作，充分利用這一市場轉變，並計劃於今年下半年開始批量生產下一代高端筆記型電腦型號。

Furthermore, the incorporation of high-value-added features increases the content value gained per panel while presenting a new opportunity for Himax. Looking ahead to 2025, we anticipate a decent replacement cycle when, armed with leading solutions for high-end market launched lately, Himax's presence in the notebook market will be further lifted.

此外，高附加價值功能的加入增加了每塊面板的內容價值，同時也為奇景光電帶來了新的機會。展望2025年，我們預計將出現一個良好的更換週期，屆時，憑藉最近推出的針對高端市場的領先解決方案，奇景在筆記型電腦市場的地位將進一步提升。

Turning to the small and medium-sized display driver IC business. First quarter revenue is expected to decline high teens sequentially, on the backdrop of traditional low seasonality where demand for consumer electronics remains sluggish.

轉向中小尺寸顯示器驅動IC業務。在傳統淡季背景下，消費電子產品需求依然低迷，預計第一季營收將季減百分之十幾。

Smartphone and tablet sales are projected to decline single digit and double-digit respectively in Q1. Automotive revenue is also expected to decline mid-teens sequentially, following robust order replenishment in previous quarters.

預計第一季智慧型手機和平板電腦銷量將分別下降個位數和兩位數。由於前幾季的訂單補充強勁，汽車業務收入預計也將較上季下降 15% 左右。

In contrast, Q1 automotive TDDI sales are still poised for sequential growth, defying recent reports of slower electronic vehicle demand in China. The swift and ongoing expansion of TDDI adoption, as evidenced by our over 400 secured design-win projects, positions us significantly ahead of our peers.

相較之下，儘管近期有報告指出中國電動車需求放緩，但第一季汽車 TDDI 銷量仍有望持續成長。我們已獲得超過 400 個設計中標項目，證明 TDDI 的採用正在迅速且持續地擴大，這使我們遠遠領先於同行。

With approximately 30% of awarded projects currently in mass production and a continuous influx of new pipeline and design wins across the board, our leadership position is reinforced looking ahead into 2024 and beyond.

目前約有 30% 的獲獎項目已投入量產，且各領域新管道和設計獎項不斷湧現，展望 2024 年及以後，我們的領導地位將得到加強。

Remarkably, automotive TDDI sales are anticipated to account for almost half of total automotive driver sales in Q1. Meanwhile, a prominent trend is emerging as more customers opt for our TDDI or LTDI, coupled with our local dimming Tcon, as their standard development platform for crafting new automotive displays of various sizes.

值得注意的是，汽車 TDDI 銷售量預計將佔第一季汽車驅動器總銷量的近一半。同時，隨著越來越多的客戶選擇我們的 TDDI 或 LTDI，加上我們的局部調光 Tcon，作為製作各種尺寸新型汽車顯示器的標準開發平台，一種突出的趨勢正在出現。

This movement has drawn the interest of leading panel makers, Tier 1s, and car manufacturers across the spectrum, who acknowledge the benefits of our supreme bundle solution to accelerate their new panel development and elevate their product values.

此舉引起了各領域領先面板製造商、一級供應商和汽車製造商的興趣，他們承認我們的最高捆綁解決方案可以加速他們的新面板開發並提升他們的產品價值。

Moving on to our industry leading LTDI. Himax is proud to be pioneering the introduction of LTDI to the automotive display market. Once again, we stand as the first company in the world to initiate mass production of LTDI, starting with Geely Auto's NEVs in the third quarter 2023.

繼續介紹我們領先業界的 LTDI。 Himax 很榮幸能夠率先將 LTDI 引入汽車顯示器市場。我們再次成為全球第一家啟動 LTDI 量產的公司，將於 2023 年第三季從吉利汽車的 NEV 開始量產。

For displays larger than 30 inches, the incorporation of LTDI signifies increased content value for Himax on a per-panel basis, where such large displays usually necessitate 6 or more LTDI chips and at least one local dimming Tcon. This opens a new revenue stream for us and fortifies our market leadership moving forward.

對於 30 吋以上的顯示器，LTDI 的加入意味著奇景光電每塊面板的內容價值將會增加，這種大尺寸的顯示器通常需要 6 個或更多的 LTDI 晶片和至少一個局部調光 Tcon。這為我們開闢了新的收入來源，並鞏固了我們未來的市場領導地位。

During CES this year, Himax presented the most comprehensive product lineup for display semiconductor technologies, ranging from traditional DDIC and TDDI, to cutting-edge LTDI and local dimming Tcon for LCD panel, and extending into AMOLED display solutions. Our AMOLED portfolio, which used to be comprised of DDIC and Tcon, now expands to on-cell touch controller. It's important to point out that the automotive industry upholds stringent standards of quality and reliability, surpassing those of consumer electronics.

今年CES期間，奇景光電展示了最全面的顯示半導體技術產品線，從傳統的DDIC、TDDI，到最前沿的LCD面板用LTDI、局部調光Tcon，並延伸至AMOLED顯示解決方案。我們的 AMOLED 產品組合以前由 DDIC 和 Tcon 組成，現在擴展到 On-Cell 觸控控制器。值得指出的是，汽車產業堅持嚴格的品質和可靠性標準，超越了消費性電子產品。

In acknowledgement of these heightened requirements, our recently unveiled AMOLED touch controller IC is meticulously engineered with an industry-leading touch signal-to-noise ratio exceeding 45 dB, making it the ideal solution to meet the needs of flexible OLED panels often required for automotive application. It also provides improved sensitivity to challenging user conditions such as glove-wearing and wet finger operations, guaranteeing exceptional performance with display quality free from interference by touch-display interactions.

為了滿足這些更高的要求，我們最近推出的 AMOLED 觸控控制器 IC 經過精心設計，具有業界領先的觸控訊噪比（超過 45 dB），使其成為滿足汽車應用經常需要的柔性 OLED 面板需求的理想解決方案。它還提高了對戴手套和濕手指操作等具有挑戰性的用戶條件的靈敏度，保證了出色的性能和顯示質量，不受觸摸顯示交互的干擾。

Furthermore, our touch controller supports multi-finger capacitive touch, is compatible with multiple OLED panel types and has the capability to cascade multiple chips in support of larger than 20-inch displays. With project awards from leading AMOLED panel manufacturers, our automotive AMOLED touch controller is poised to commence mass production in the upcoming quarters.

此外，我們的觸控控制器支援多指電容式觸控，相容於多種 OLED 面板類型，並能夠級聯多個晶片以支援大於 20 吋的顯示器。憑藉領先 AMOLED 面板製造商的專案合同，我們的汽車 AMOLED 觸控控制器將在未來幾個季度開始大規模生產。

We continue to strive towards providing the most extensive array of automotive display solutions in the market. This commitment involves fostering robust partnerships with panel makers, Tier 1 suppliers, and car manufacturers across the globe, ensuring comprehensive solutions that cater to a wide spectrum of customer preferences and industry requirements.

我們將繼續致力於提供市場上最廣泛的汽車顯示解決方案。這項承諾包括與全球的面板製造商、一級供應商和汽車製造商建立穩固的合作夥伴關係，確保提供滿足廣泛客戶偏好和行業要求的全面解決方案。

In terms of our smartphone and tablet product lines, we continue to see lackluster demand in the market. On a positive note, our inventory has substantially rebalanced to a satisfactory level. With the destocking process nearly complete, we placed wafer starts for select products starting in Q2 last year. Concurrently, we are diligently working on improving our cost structure through supplier diversification and strategic alliances, thereby positioning ourselves for an anticipated resurgence in demand.

就我們的智慧型手機和平板電腦產品線而言，我們繼續看到市場需求低迷。從積極的一面來看，我們的庫存已基本恢復平衡至令人滿意的水平。隨著去庫存過程接近完成，我們從去年第二季開始為精選產品安排晶圓生產。同時，我們正在努力透過供應商多元化和策略聯盟來改善我們的成本結構，為預期的需求復甦做好準備。

Next for an update on our AMOLED business. As I mentioned earlier, we are actively venturing into AMOLED market by forging strategic partnerships with leading panel manufacturers in Korea and China, spanning a diverse range of applications, including automotive, tablets, notebooks, and smartphones. As I just covered, we have made great progress in automotive, tablet, and notebook markets, where we offer comprehensive solutions covering DDIC, Tcon and touch controller. Mass production for most of these new solutions is expected to commence in the second half of 2024. In the smartphone AMOLED display driver segment, however, the prevailing slowdown in smartphone market demand has led to adjustments to our initial timeline. Nevertheless, collaborations with customers in Korea and China are ongoing with verification and partnership projects underway.

接下來我們將介紹我們的 AMOLED 業務的最新動態。正如我之前提到的，我們正在積極進軍 AMOLED 市場，與韓國和中國領先的面板製造商建立戰略合作夥伴關係，涉及汽車、平板電腦、筆記型電腦和智慧型手機等多種應用領域。正如我剛才所說，我們在汽車、平板電腦和筆記型電腦市場取得了巨大進步，我們提供涵蓋 DDIC、Tcon 和觸控控制器的全面解決方案。預計大多數新解決方案將於 2024 年下半年開始量產。儘管如此，與韓國和中國客戶的合作仍在繼續，驗證和合作項目正在進行中。

I would like to now turn to our non-driver IC business update.

現在我想談談我們的非驅動 IC 業務更新。

First, for an update on our Tcon business. We expect Q1 Tcon sales to increase by single digit sequentially, driven by increasing Tcon shipments for automotive displays and OLED displays for tablets. Despite subdued end market demand, we are actively developing next generation Tcon IC for OLED tablets, notebooks, and automotive applications. The initiative aims to broaden and diversify our product offerings while also positioning ourselves to capitalize on a market resurgence.

首先，介紹一下我們的 Tcon 業務的最新情況。我們預計第一季的 Tcon 銷售額將環比成長個位數，這得益於汽車顯示器和平板電腦 OLED 顯示器的 Tcon 出貨量的增加。儘管終端市場需求低迷，我們仍在積極開發用於 OLED 平板電腦、筆記型電腦和汽車應用的下一代 Tcon IC。該計劃旨在擴大和多樣化我們的產品供應，同時使我們能利用市場復甦的機會。

Thanks to our cutting-edge local dimming technology, Himax is the industry leader in automotive Tcon with an unchallenged leading position of over 100 design-win projects under our belt. At CES 2024, we unveiled our latest local dimming Tcon which features advanced image enhancement with wide color spectrum, ensuring exceptional visual quality that supports resolutions of up to 12Kx1K, and exceptional dynamic contrast enhancement tailored to real time display content, all while adhering to power efficiency and stringent automotive safety standards.

由於我們尖端的局部調光技術，Himax 成為汽車 Tcon 領域的行業領導者，並已成功完成 100 多個設計項目，擁有無可爭議的領先地位。在 CES 2024 上，我們推出了最新的局部調光 Tcon，它具有先進的圖像增強功能和寬色譜，可確保出色的視覺質量，支援高達 12Kx1K 的分辨率，以及針對實時顯示內容量身定制的出色動態對比度增強，同時遵守電源效率和嚴格的汽車安全標準。

The rapid increase in customer adoption reflects the growing traction and trust in our solutions. We expect a decent growth trajectory for local dimming Tcon over the next few years.

客戶採用率的快速成長反映了對我們解決方案的吸引力和信任度不斷提高。我們預計未來幾年局部調光 Tcon 將呈現良好的成長軌跡。

Switching gears to the WiseEye Smart Image Sensing total solution, a cutting-edge endpoint AI integration featuring Himax's ultralow power AI processor, always-on CMOS image sensor, and advanced CNN-based AI algorithm. During CES this year, we highlighted a range of application demonstrations which have swiftly gained adoption across various domains, featuring our industry leading ultralow power and potent AI capabilities.

切換到 WiseEye 智慧影像感測整體解決方案，這是一種尖端端點 AI 集成，具有 Himax 的超低功耗 AI 處理器、始終開啟的 CMOS 影像感測器和先進的基於 CNN 的 AI 演算法。今年CES期間，我們重點介紹了一系列在各個領域迅速得到應用的應用程式演示，展示了我們業界領先的超低功耗和強大的AI功能。

We achieved noteworthy progress with customers, particularly in implementing WiseEye in smart door locks. The collaboration with the China smart door lock leader, DESMAN, marks a groundbreaking feature advancement in the door lock industry, as our ultralow power WiseEye AI, with remarkably low power consumption of just 1 milliwatt, enables the world's first smart door lock featuring uninterrupted surveillance with 24/7 real-time sentry monitoring while at the same time significantly extending battery life.

我們與客戶共同取得了顯著的進展，特別是在智慧門鎖中應用WiseEye。與中國智慧門鎖領導者 DESMAN 的合作標誌著門鎖產業功能的突破性進步，因為我們的超低功耗 WiseEye AI 功耗僅為 1 毫瓦，使世界上第一款智慧門鎖能夠實現不間斷監控，全天候即時哨兵監控，同時顯著延長電池壽命。

We also showcased an adoption of WiseEye in a capsule endoscope, a highly encouraging advancement in the medical area. Our WiseEye AI solution empowers tiny pill-sized capsule endoscopes which are easy to swallow, facilitating smooth medical examination processes. The device consumes minimal power to sustain continuous image capture and transmission for up to 12 hours. This creates a significantly simplified medical process when compared to conventional procedures, which often involves the use of invasive endoscope tubes. We are excited about the potential for this transformative development for the healthcare industry and expect to commence production with a customer in 2025.

我們還展示了在膠囊內視鏡中採用 WiseEye，這是醫療領域的一個令人鼓舞的進步。我們的 WiseEye AI 解決方案使藥丸大小的膠囊內視鏡易於吞嚥，使醫療檢查過程更加順利。該設備消耗極小的電量，可維持長達 12 小時的連續影像擷取和傳輸。與通常需要使用侵入式內視鏡管的傳統手術相比，這大大簡化了醫療過程。我們對這項醫療保健產業變革性發展的潛力感到非常興奮，並預計將於 2025 年開始與客戶合作生產。

Turning to an update on WiseEye2, our new generation AI processor. We are honored to report that WiseEye2 was awarded the "2023 Best AI Product Award" by EE Awards Asia, further elevating Himax's WiseEye AI prominence in the industry. WiseEye2 is pioneering a new standard in endpoint AI benchmarks, earning recognition for its outstanding AI inference capability, industry-leading ultralow power efficiency, and advanced security features.

談到我們新一代 AI 處理器 WiseEye2 的更新。我們很榮幸地報告，WiseEye2 榮獲 EE Awards Asia 頒發的“2023 年度最佳 AI 產品獎”，進一步提升了奇景光電 WiseEye AI 在行業中的知名度。 WiseEye2 開創了端點 AI 基準的新標準，並因其出色的 AI 推理能力、業界領先的超低功耗效率和先進的安全功能而獲得認可。

In the realm of context-aware AI, WiseEye2 facilitates high-precision detection with features such as face mesh, facial landmark, hand gesture, and human pose and skeleton, which expands the intuitive, user-friendly scope of interactive applications in real-life, all achieved with minimal power consumption.

在情境感知人工智慧領域，WiseEye2 透過臉部網格、臉部特徵點、手勢以及人體姿勢和骨骼等功能實現高精度檢測，從而擴展了現實生活中交互式應用的直觀、用戶友好範圍，並且只需極少的功耗即可實現。

Moreover, WiseEye2 streamlines the system integration with a rich set of peripheral interfaces, effectively lowering the system cost for edge appliances by eliminating the need for costly, power-hungry discrete MCUs otherwise required to process various sensor data.

此外，WiseEye2 透過豐富的外圍介面簡化了系統集成，無需使用昂貴、耗電的分立 MCU 來處理各種感測器數據，從而有效降低了邊緣設備的系統成本。

Additionally, WiseEye2 boasts versatile sensor fusion capabilities, encompassing image, video, audio, vibration and thermal inputs. This enables sophisticated, integral and highly accurate detection with low latency, especially suitable in anomaly detection with timely warnings, making it an ideal solution for a range of industrial applications, notably in automated and unmanned factories.

此外，WiseEye2 還擁有多種感測器融合功能，涵蓋影像、視訊、音訊、振動和熱輸入。這使得複雜、完整、高精度的檢測具有低延遲性，特別適合及時警告的異常檢測，使其成為一系列工業應用的理想解決方案，尤其是自動化和無人化工廠。

Alongside our ongoing collaboration with end customers, significant progress is being made in partnerships with major CPU and AP SOC players in preparation for their next generation smart notebooks, AI PCs, surveillance applications and a host of other endpoint AI applications. We will provide more details as they come about.

隨著我們與終端客戶的持續合作，與主要 CPU 和 AP SOC 參與者的合作也取得了重大進展，為他們的下一代智慧型筆記型電腦、AI PC、監控應用程式和許多其他端點 AI 應用程式做好準備。一旦有消息，我們將提供更多詳細資訊。

Concurrently, to meet various application requirements and extend market reach, we are in collaborations with numerous ecosystem partners and system integration companies, offering hands-on development tools and vigorous AI models to streamline customer development efforts and reduce cost for their AI product introduction. The launch of our production-ready WiseEye Modules exemplifies this business model. These modules incorporate Himax's low-power CMOS image sensors, WiseEye1 or WiseEye2 AI processor, and versatile AI models from either in-house or third-party partners.

同時，為滿足各類應用需求及擴大市場範圍，我們與眾多生態系合作夥伴及系統整合公司合作，提供實用的開發工具及強大的AI模型，以簡化客戶的開發工作並降低其AI產品導入成本。我們已投入生產的 WiseEye 模組的推出就體現了這種商業模式。這些模組結合了 Himax 的低功耗 CMOS 影像感測器、WiseEye1 或 WiseEye2 AI 處理器以及來自內部或第三方合作夥伴的多功能 AI 模型。

Meticulously designed with tiny form factors, highly integrated and plug-and-play characteristics, the modules feature user-programmable, pre-loaded AI models to facilitate seamless system integration, lowering the entry barrier and cost for AI development. This initiative is particularly well-suited for early-stage market engagement applications. Furthermore, we continue to collaborate with ecosystem partners to unveil a spectrum of plug-and-play AI modules that incorporate advanced no-code/low-code AI solutions. By leveraging their strengths in specific domains and existing channels, these collaborative efforts ensure we can meet diverse development needs for both software and hardware. Notably at CES 2024, our partnership with Seeed Studio on its battery-powered endpoint AI vision processing module, Grove Vision AI Module V2, significantly underscores our dedication to making AI technology easily accessible.

該模組經過精心設計，具有小巧的尺寸、高度集成和即插即用的特點，並具有用戶可編程、預加載的人工智能模型，以促進無縫的系統集成，降低人工智能開發的進入門檻和成本。該計劃特別適合早期市場參與應用。此外，我們繼續與生態系統合作夥伴合作，推出一系列包含先進無程式碼/低程式碼 AI 解決方案的即插即用 AI 模組。透過利用他們在特定領域和現有管道的優勢，這些合作努力確保我們能夠滿足軟體和硬體的多樣化開發需求。值得注意的是，在 CES 2024 上，我們與 Seeed Studio 在其電池供電的端點 AI 視覺處理模組 Grove Vision AI Module V2 上的合作，極大地彰顯了我們致力於讓 AI 技術易於訪問的決心。

After years of dedicated efforts to enhance our AI capabilities in ultralow power AI processing and image sensing for endpoint AI applications, we believe that our WiseEye AI business will emerge as a multi-year structural growth driver for Himax.

經過多年的專注努力，我們致力於增強在超低功耗 AI 處理和端點 AI 應用影像感應方面的 AI 能力，我們相信我們的 WiseEye AI 業務將成為奇景光電的多年結構性成長動力。

Lastly, I would like to provide an update on our optical product lines. Himax is a distinguished industry leader with a diverse range of optical and optoelectronics products crucial for building emerging metaverse applications. We strive to innovate and advance various technologies in this arena, including Wafer Level Optics, 3D Sensing, Liquid Crystal on Silicon, among others, pushing the envelope in a variety of fields. Our technological expertise and extensive manufacturing experience are evident in growing clientele for AR/VR goggles and ongoing engineering projects.

最後，我想介紹一下我們的光學產品線的最新情況。 Himax 是一位傑出的行業領導者，擁有對於構建新興元宇宙應用至關重要的多種光學和光電子產品。我們致力於創新和推進該領域的各種技術，包括晶圓級光學、3D 感測、矽基液晶等，推動各領域的技術突破。我們的技術專長和豐富的製造經驗在 AR/VR 眼鏡和正在進行的工程項目不斷增長的客戶中得到了充分體現。

Now, let's review some recent progress we have made. First, on our advancements in LCoS, a technology where Himax boasts a decade-long expertise and proven track record of shipments for AR goggles with global leading names. Our latest breakthrough Color Sequential Front-Lit LCoS Microdisplay offers unparalleled industry-leading brightness of up to 180,000 nits, providing ultra-luminance performance in vibrant RGB displays.

現在，讓我們回顧一下我們最近的一些進展。首先，我們在 LCoS 方面的進步，奇景光電在該技術上擁有十年的專業知識和與全球領先品牌合作的 AR 眼鏡出貨量的良好記錄。我們最新的突破性彩色順序前照式 LCoS 微型顯示器提供了無與倫比的業界領先亮度，高達 180,000 尼特，在生動的 RGB 顯示器中提供超亮度性能。

It also features superior optical power efficiency, a compact form factor, and ultra-lightweight design which make it the best choice for the next generation of see-through AR devices. Currently, Himax is actively involved in follow-up engineering activities in collaboration with key tech players and anticipates significant opportunities in the coming years.

它還具有卓越的光能效率、緊湊的外形和超輕的設計，使其成為下一代透視 AR 設備的最佳選擇。目前，奇景光電正積極與主要科技公司合作進行後續工程活動，並預計未來幾年將迎來重大機會。

Next, let's discuss the recent introduction of nano-imprint optical film technology in automotive lighting by Himax's subsidiary, CMVT, in collaboration with Ta Yih Industrial, a global leader in automotive lighting manufacturing. The state-of-the-art technology was implemented within a leading-edge LED Edge-Lit Type automotive lighting.

接下來我們來探討奇景光電公司CMVT近期與全球汽車照明製造領導企業大億工業合作，在汽車照明領域推出的奈米壓印光學薄膜技術。最先進的技術是在尖端的 LED 側光式汽車照明中實現的。

By leveraging our nano-imprint optical film, side-emitting LED light is reflected or refracted towards the illumination direction of the automotive lamps, ensuring uniformity, minimizing fixture size, and enabling precise control of light, compared to conventional direct-lit type automotive lighting. This results in enhanced efficiency, reduced LED usage, and the ability to create versatile patterns at a significantly lower cost. This groundbreaking development unlocks not only extensive visual possibilities for automotive lighting, but also interior light decoration design as well as related illumination applications. We will provide more updates as they come about.

透過利用我們的奈米壓印光學薄膜，側發射 LED 光會被反射或折射至汽車燈的照明方向，與傳統的直下式汽車照明相比，可確保均勻性、最大限度地減小燈具尺寸並實現對光線的精確控制。這不僅提高了效率，減少了 LED 的使用，而且還能夠以顯著降低的成本創造多種圖案。這項突破性的發展不僅為汽車照明開闢了廣泛的視覺可能性，還為室內燈光裝飾設計以及相關照明應用開闢了廣泛的視覺可能性。我們會及時提供更多更新資訊。

We believe our optical and optoelectronics technologies is poised to play an important enabling role in developing next generation metaverse applications. We are committed to advancing this technology suite, collaboratively expanding application possibilities with industry leaders who are deeply devoted to advancing their next-generation metaverse-related products.

我們相信，我們的光學和光電子技術將在開發下一代元宇宙應用中發揮重要的推動作用。我們致力於推動這套技術套件，與致力於推動下一代元宇宙相關產品的產業領袖合作拓展應用可能性。

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

對於非驅動IC業務，我們預計第一季營收將環比下降個位數。

That concludes my report for this quarter. Thank you for your interest in Himax. We appreciate you joining today's call and now ready to take questions.

這就是我本季的報告。感謝您對 Himax 的關注。感謝您參加今天的電話會議，現在我們準備好回答問題了。

(Operator Instructions) I'm showing no questions at this time. I would now like to turn it back to Jordan Wu for closing remarks.

（操作員指示）我現在沒有任何問題。現在我想請喬丹吳作最後發言。

As a final note, Eric Li, our chief IR/PR officer, will maintain investor marketing activities and continue to attend investor conferences. We will announce the details as they come about. Thank you and have a nice day.

最後要說的是，我們的首席投資者關係/公關官 Eric Li 將繼續負責投資者行銷活動並繼續參加投資者會議。一旦詳細資訊公佈，我們將會立即發布。謝謝您，祝您有美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。