ChipMOS Technologies Inc (IMOS) 2023 Q3 法說會逐字稿

Greetings, and welcome to the ChipMOS Third Quarter 2023 Results Conference Call. (Operator Instructions) I would now like to turn the conference over to Dr. G.S. Shen of ChipMOS Technology Strategy and Investor Relations team to introduce the management team of the company in conference. Dr. Shen, you may begin.

您好，歡迎參加 ChipMOS 2023 年第三季業績電話會議。 （操作員指示）現在會議請南茂科技策略與投資者關係團隊的沈國勝博士在會議上介紹公司的管理團隊。沈醫生，您可以開始了。

Thank you, operator. Welcome everyone to ChipMOS' Third Quarter 2023 Results Conference Call. Joining us today from the company are Mr. S.J. Cheng, Chairman and President; and Ms. Silvia Su, Vice President of Finance and Accounting Management Center. We are also joined on the call today by Mr. Jesse Huang, Spokesperson and Senior Vice President of Strategy and Investor Relations. S.J. will chair the meeting and review business highlights and provide color on the operating environment. After Silvia’s review of the Company's key financial results, SJ will provide our current business outlook. All Company executives will then participate in an open Q&A session.

謝謝你，接線生。歡迎大家參加 ChipMOS 2023 年第三季業績電話會議。今天加入我們公司的是 S.J. 先生。程先生，董事長兼總裁；財務會計管理中心副總裁Silvia Su女士。發言人兼策略與投資者關係高級副總裁黃傑西先生也參加了今天的電話會議。 S.J.將主持會議並回顧業務亮點並提供營運環境的資訊。在 Silvia 審查公司的主要財務表現後，SJ 將提供我們當前的業務前景。所有公司高層隨後將參加公開問答環節。

Please note, we have posted a presentation on the MOPS and also on the ChipMOS' website www.chipmos.com to accompany today’s conference call. Before we begin the prepared comments, we advise you to review our forward-looking statements disclaimer, which is noted as the “Safe Harbor Notice” on the second page of today’s presentation. As a reminder, today’s conference call is being recorded and a replay will be made available later today on the Company’s website. At this time, I'd like to now turn the call over to our company's Chairman and President, Mr. S.J. Cheng.

請注意，我們在今天的電話會議上發布了有關 MOPS 以及 ChipMOS 網站 www.chipmos.com 的簡報。在我們開始準備評論之前，我們建議您查看我們的前瞻性聲明免責聲明，該免責聲明在今天簡報的第二頁上被標記為「安全港聲明」。謹此提醒，今天的電話會議正在錄音，今天晚些時候將在公司網站上提供重播。現在，我想將電話轉給我們公司的董事長兼總裁 S.J. 先生。程.

Please go ahead, sir.

請繼續，先生。

Yes, thank you, GS. We appreciate everyone joining our call today. We delivered revenue growth, increased utilization and healthy profitability, which we are happy to see given the many market challenges. In terms of Q3 highlights, our Q3 revenue increased 2.5% from Q2 2023. Q3 gross margin came in at 15.9%, down 140 basis points compared to Q2 2023. Net Earnings were TWD 0.8 in Q3 2023, a decrease of TWD 0.06 compared to TWD 0.86 of Q2 2023.

是的，謝謝你，GS。我們感謝大家今天加入我們的電話會議。我們實現了收入成長、利用率提高和健康的獲利能力，考慮到許多市場挑戰，我們很高興看到這一點。從第三季亮點來看，我們第三季營收較2023 年第二季成長2.5%。第三季毛利率為15.9%，較2023 年第二季下降140 個基點。2023 年第三季淨利潤為新台幣0.8，較2023 年第二季下降0.06 新台幣2023 年第二季的 0.86 新台幣。

For the first nine months of 2023 EPS was TWD 1.94. I am pleased to report that our overall utilization rate continues to increase to 63% in Q3 2023. Assembly utilization was at 47% and Testing average was 60%. DDIC continuously increased to 74% and Bumping UT level increased to 65%. Inventories are bottoming out and long-term demand dynamics are healthy. We may see some near term lumpiness but long-term trends are strong.

2023 年前 9 個月的每股盈餘為新台幣 1.94。我很高興地報告，我們的整體利用率在 2023 年第三季繼續增加至 63%。組裝利用率為 47%，測試平均值為 60%。 DDIC 持續增加至 74%，Bumping UT 水準增加至 65%。庫存正在觸底，長期需求動態健康。我們可能會看到一些短期波動，但長期趨勢強勁。

Regarding our manufacturing business, our assembly represented 20% of Q3 revenue. Mixed-signal and memory testing represented around 20.1% and wafer bumping represented around 22.7% of Q3 revenue. On a product basis, our DDIC product increased to around 37.7%, with gold bumping representing about 21.3%. Revenue from DRAM and SRAM represented about near 14% of Q3 revenue. Our Mixed-signal products represented about 7.1%. We are benefiting from the diversity in our product line and leadership in key areas like DDIC.

就我們的製造業務而言，我們的組裝業務佔第三季營收的 20%。混合訊號和記憶體測試約佔第三季營收的 20.1%，晶圓凸塊約佔 22.7%。從產品來看，我們的DDIC產品比例增加至37.7%左右，其中黃金上漲約21.3%。來自 DRAM 和 SRAM 的收入約佔第三季營收的近 14%。我們的混合訊號產品約佔 7.1%。我們的產品線多元化以及在 DDIC 等關鍵領域的領先地位使我們受益匪淺。

As additional color on our business, our memory products represented about 33.9% of total Q3 revenue. Memory product revenue was up about 4.4% compared to Q2 2023, but down about 22.9% on a year-over-year basis. DRAM revenue represented about 13.4% of total Q3 revenue. Flash revenue represented about 20% of Q3 revenue, and this was up 10.5% compared to Q2 and benefited from customer restocking.

作為我們業務的額外亮點，我們的記憶體產品約佔第三季總收入的 33.9%。記憶體產品營收較 2023 年第二季成長約 4.4%，但年減約 22.9%。 DRAM營收約佔第三季總營收的13.4%。 Flash營收約佔第三季營收的20%，較第二季成長10.5%，受惠於客戶補貨。

NOR Flash was significantly up around 20.8% compared to Q2. NAND Flash, was up around 13.3% compared to Q2, and represented about 30.2% of Q3 total Flash revenue. Moving onto Driver IC and gold bump revenue, it represented about 59% of total Q3 2023 revenue and increased 2.7% compared to Q2 2023. We expect this to remain healthy over the long-term but may see some softness near-term given end market demand noise. Inline with broader trends this was up significantly around 50.9% on a year-over-year basis.

與第二季相比，NOR Flash 大幅成長約 20.8%。 NAND快閃記憶體較第二季成長約13.3%，約佔第三季快閃記憶體總營收的30.2%。轉向驅動器IC 和金塊收入，約佔2023 年第三季總收入的59%，與2023 年第二季相比成長2.7%。我們預計，從長遠來看，這一數字將保持健康，但考慮到終端市場，短期內可能會出現一些疲軟需求噪音。與更廣泛的趨勢一致，這一數字同比大幅增長約 50.9%。

Gold bump revenue continued to increase and was up 5.2% compared to Q2 2023. DDIC revenue was also up about 1.4% compared to Q2 2023. I am pleased to report that more than 20% of DDIC revenue came from Automotive panels in Q3, which was up 6.8% compared to Q2 2023. There has been some lumpiness as inventory levels are adjusted but we view Automotive as an important long-term growth market for us. We also benefited from rush orders for large panel TVs, which led to a 6% increase in our COF revenue compared to Q2, and represented about 40% of Q3 DDIC revenue.

金凸塊營收持續成長，較2023 年第二季成長5.2%。與2023 年第二季相比，DDIC 營收也成長約1.4%。我很高興地報告，第三季超過20% 的DDIC 營收來自汽車面板，其中與 2023 年第二季度相比增長了 6.8%。隨著庫存水準的調整，出現了一些波動，但我們認為汽車市場對我們來說是一個重要的長期成長市場。我們也受惠於大面板電視的緊急訂單，這導致我們的 COF 收入較第二季成長 6%，約佔第三季 DDIC 收入的 40%。

Regarding TDDI, it represented around 21.9% of Q3 DDIC revenue, with OLED at about 14.4% of Q3 DDIC revenue, which is up 3.7% compared to Q2 OLED revenue. On an end-market basis, total revenue from Automotive and Industrial was up slightly over Q2 and represented about 20.3% of Q3 revenue. Smartphones represented about 33.7% of Q3 revenue, and increased 2.5% compared to Q2. Consumer represented 23.6% of Q3 revenue, and increased to 13.3% compared to Q2. Lastly, TVs and Computing as an end market, accounted about 17.7% and 4.7%, respectively.

TDDI 約佔第三季 DDIC 營收的 21.9%，OLED 約佔第三季 DDIC 營收的 14.4%，較第二季 OLED 營收成長 3.7%。從終端市場來看，汽車和工業領域的總收入較第二季略有成長，約佔第三季營收的 20.3%。智慧型手機約佔第三季營收的 33.7%，較第二季成長 2.5%。消費者佔第三季營收的 23.6%，較第二季增加至 13.3%。最後，電視和電腦作為終端市場，分別佔約 17.7% 和 4.7%。

Now let me turn the call to Ms. Silvia Su, to review the third quarter 2023 financial results. Silvia, please go ahead.

現在請蘇女士來回顧一下2023年第三季的財務表現。西爾維婭，請繼續。

Thank you S.J. All dollar amounts cited in our presentation are in NT dollars. The following numbers are based on the exchange rates of TWD 32.24 against USD 1 as of September 29, 2023. All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards. Referencing presentation Page 12 consolidated operating results summary.

謝謝你，S.J.我們的演示中引用的所有美元金額均以新台幣為單位。以下數據是根據截至 2023 年 9 月 29 日新台幣 32.24 兌 1 美元的匯率。所有數據均根據台灣國際財務報告準則編制。參考第 12 頁的簡報合併經營績效摘要。

For the third quarter of 2023, total revenue was TWD 5,582 million. Net profit attributable to the Company was TWD 581 million in Q3. Net earnings for the third quarter of 2023 were TWD 0.80 per basic common share or USD 0.50 per basic ADS. EBITDA for Q3 was TWD 1,701 million. EBITDA was calculated by adding depreciation and amortization together with operating profit. Return on equity of Q3 was 9.6%.

2023年第三季總營收為新台幣55.82億元。第三季歸屬於公司的淨利為新台幣 5.81 億元。 2023 年第三季淨利為每股基本普通股 0.80 新台幣或每股基本美國存託股 0.50 美元。第三季 EBITDA 為新台幣 17.01 億元。 EBITDA 是透過將折舊和攤提與營業利潤相加計算得出的。第三季股本回報率為9.6%。

Referencing presentation, Page 13 consolidated statements of comprehensive income compared to 2Q '23. Total 3Q '23 revenue increased 2.5% compared to 2Q23. 3Q '23 gross profit was TWD 889 million, with gross margin at 15.9% compared to 17.3% in 2Q '23. This represents a decrease of 1.4 ppts. Our operating expenses in 3Q '23 were TWD 439 million, or 7.9% of total revenue, which is about 0.6% lower compared to 2Q '23. Operating profit for 3Q '23 was TWD 487 million, with operating profit margin at 8.7%, which is about a 0.9 ppts decrease compared to 2Q '23.

參考第 13 頁的簡報，與 2023 年第二季相比的綜合收益合併報表。與 2023 年第二季相比，2023 年第三季總營收成長了 2.5%。 23 年第 3 季毛利為新台幣 8.89 億元，毛利率為 15.9%，而 23 年第 2 季毛利率為 17.3%。這意味著下降了 1.4 個百分點。我們23年第3季的營運費用為新台幣4.39億元，佔總營收的7.9%，比2023年第2季下降約0.6%。 23 年第 3 季的營業利潤為新台幣 4.87 億元，營業利潤率為 8.7%，比 23 年第 2 季下降約 0.9 個百分點。

Net non-operating income in 3Q '23 was TWD 231 million, an increase of TWD 8 million compared to 2Q '23. The difference is mainly due to the increase of the foreign exchange gains of TWD 17 million and share of profit of associates accounted for using equity method of TWD 9 million. This was partially offset by the decrease of interest income of TWD 17 million. Profit attributable to the Company in 3Q '23 decreased 7.6% compared to 2Q '23. This primarily reflects a decrease of operating profit of TWD 34 million and the increase of income tax expense of TWD 22 million and partially offset by the increase of net non-operating income of TWD 8 million.

23年第3季營業外淨收入為新台幣2.31億元，較2023年第2季增加800萬新台幣。差異主要是由於匯兌收益增加新台幣1,700萬元及權益法核算的聯營公司利潤增加新台幣900萬元。這被利息收入減少 1700 萬新台幣部分抵銷。 2023 年第 3 季公司應佔利潤比 2023 年第 2 季下降 7.6%。這主要是由於營業利潤減少了3400萬新台幣以及所得稅費用增加了2200萬新台幣，但部分被營業外淨收入增加800萬新台幣所抵消。

Basic weighted average outstanding shares were 727 million shares. Compared to 3Q '22, total revenue for 3Q '23 increased 6.2% compared to 3Q '22. Gross margin at 15.9% increased 0.4 ppts compared to 3Q '22. Operating expenses decreased 3.7% compared to 3Q '22. Operating profit margin at 8.7% increased 1.1 ppts compared to 3Q '22. Net non-operating income decreased TWD 172 million compared to 3Q '22. The difference is mainly due to a decrease of foreign exchange gains of TWD 131 million and share of profit of associates accounted for using equity method of TWD 79 million. This was partially offset by the positive valuation impact of financial assets at fair value through profit or loss of TWD 37 million which resulted from the gain of TWD 4 million in 3Q '23 and loss of TWD 33 million in 3Q '22.

基本加權平均流通股為7.27億股。與 22 年第三季相比，23 年第三季的總營收比 22 年第三季成長了 6.2%。毛利率為 15.9%，較 2022 年第三季增加 0.4 個百分點。與 2022 年第三季相比，營運費用下降 3.7%。營業利益率為 8.7%，與 2022 年第三季相比增加了 1.1 個百分點。營業外淨收入較 2022 年第三季減少 1.72 億新台幣。差異主要是由於匯兌收益減少新台幣1.31 億元以及按權益法核算的聯營公司利潤減少新台幣7,900 萬元。這部分被以公允價值計量且其變動計入損益的金融資產的正面估值影響所抵消，該影響源於 23 年第三季收益 400 萬新台幣和 22 年第三季虧損 3,300 萬新台幣。

Profit attributable to the Company decreased 13.6% compared to 3Q '22. The difference is mainly due to a decrease of net non-operating income of TWD 172 million, the increase of income tax expense of TWD 9 million and partially offset by the increase of operating profit of TWD 90 million.

公司應占利潤較 2022 年第三季下降 13.6%。差異主要是因為營業外收入減少新台幣1.72億元、所得稅費用增加新台幣900萬元，並被營業利潤增加9,000萬元部分抵銷。

Referencing presentation, Page 14 Consolidated statements of financial position and key indices. Total assets at the end of 3Q '23 were TWD 45,078 million. Total liabilities at the end of 3Q '23 were TWD 20,603 million. Total equity at the end of 3Q '23 was TWD 24,475 million. Accounts receivable turnover days in 3Q '23 were 84 days. Inventory turnover days was 54 days in 3Q '23.

參考簡報，第 14 頁 合併財務狀況表和關鍵指數。 2023 年第三季末總資產為新台幣 450.78 億元。 2023 年第三季末的總負債為新台幣 206.03 億元。 2023 年第三季末的總股本為新台幣 244.75 億元。 2023 年第三季的應收帳款週轉天數為 84 天。 2023 年第三季的庫存週轉天數為 54 天。

Referencing presentation, Page 15 consolidated statements of cash flows. As of September 30, 2023, our balance of cash and cash equivalents was TWD 11,312 million, which represents an increase of TWD 1,415 million compared to the beginning of the year. Net free cash inflow for the first nine months of 2023 was TWD 1,089 million compared to net free cash outflow of TWD 428 million for the same period in 2022. The difference is mainly due to the decrease of operating profit of TWD 1,712 million and partially offset by the decrease of cash dividend paid TWD 1,454 million. CapEx of TWD 1,358 million and income tax expense of TWD 351 million. Free cash flow was calculated by adding depreciation, amortization, interest income together with operating profit and then subtracting CapEx, interest expense, income tax expense and dividend from the sum.

參考演示，第 15 頁合併現金流量表。截至2023年9月30日，現金及現金等價物餘額為新台幣113.12億元，較年初增加新台幣14.15億元。 2023 年頭9 個月的自由現金流淨流入為新台幣10.89 億元，而2022 年同期自​​現金流淨流出為新台幣4.28 億元。差異主要是由於營業利潤減少新台幣17.12 億元而部分抵銷減少現金股利新台幣14.54億元。資本支出為新台幣 13.58 億元，所得稅費用為新台幣 3.51 億元。自由現金流的計算方法是將折舊、攤提、利息收入與營業利潤相加，然後從總和中減去資本支出、利息費用、所得稅費用和股息。

Referencing presentation, Page 16, capital expenditures and depreciation. We invested TWD 725 million in CapEx in Q3. The breakdown of CapEx in Q3 was 5.1% for bumping, 38.7% for LCD Driver, 15.3% for assembly and 40.9% for testing. Depreciation expenses were TWD 1,214 million in Q3. As of October 31, 2023, the Company’s outstanding ADS number was approximately 4.3 million units, which represents around 11.9% of the Company’s outstanding common shares.

參考第 16 頁的演示文稿，資本支出和折舊。第三季我們在資本支出上投資了 7.25 億新台幣。第三季的資本支出細分為凸塊 5.1%、LCD 硬碟 38.7%、組裝 15.3% 和測試 40.9%。第三季折舊費用為新台幣 12.14 億元。截至 2023 年 10 月 31 日，本公司已發行的美國存託股份數量約為 430 萬股，約占公司已發行普通股的 11.9%。

That concludes the financial review. I will now turn the call back to our Chairman Mr. S.J. Cheng for our outlook. Please go ahead, sir.

財務審查到此結束。現在我將把電話轉回給我們的主席 S.J. 先生。鄭先生對我們的展望。請繼續，先生。

Thank you, Silvia. We feel comfortable with our market position, diversity of customers, and strength of our balance sheet. Based on the current industry situation and customers’ feedback, there are some ongoing fluctuations in our markets and at our customers that could impact our end results. Therefore, we expect our operating momentum is cautiously conservative in Q4 compared to Q3. This is also in line with what we have heard from some of the largest semiconductor companies. This is mostly an air pocket in the short term because the long-term growth trends remain strong.

謝謝你，西爾維亞。我們對我們的市場地位、客戶的多樣性以及我們的資產負債表的實力感到滿意。根據目前的行業情勢和客戶回饋，我們的市場和客戶的持續波動可能會影響我們的最終結果。因此，我們預期第四季的經營勢頭較第三季謹慎保守。這也與我們從一些最大的半導體公司聽到的情況相符。這在短期內主要是一個氣泡，因為長期成長趨勢仍然強勁。

In our DDIC product, the UT level of large panel, TV, and smart phone products are impacted by softness in end product demand. That said, we expect Automotive panel and OLED demand to remain stable compared to other products, this leads to the high UT level of high-end DDIC test platforms and some specific high-end test platform are near fully occupied. In the meantime, we also remain positive on Automotive and OLED panels, which are the majority of our customer’s new DDIC projects.

在我們的DDIC產品中，大面板、電視和智慧型手機產品的UT水平受到終端產品需求疲軟的影響。儘管如此，我們預計與其他產品相比，汽車面板和OLED需求將保持穩定，這導致高端DDIC測試平台的UT水平較高，並且一些特定的高端測試平台已接近滿載。同時，我們對汽車和 OLED 面板也保持樂觀態度，它們是我們客戶新 DDIC 專案的大部分。

In our memory product, assembly and test UT are impacted by the continued destocking and softer demand at certain customers. However, we are seeing increasing DRAM rush assembly orders in Q4 compared to Q3 as we benefit from Memory IDMs lowering their UT levels. Coupled with rebounding NAND Flash demand, we think memory product momentum will be better than DDIC in Q4.

在我們的記憶體產品中，組裝和測試UT受到持續去庫存和某些客戶需求疲軟的影響。然而，與第三季相比，我們看到第四季度 DRAM 搶購訂單有所增加，因為我們受益於記憶體 IDM 降低 UT 水平。加上NAND Flash需求反彈，我們認為第四季記憶體產品動能將好於DDIC。

Regarding capacity expansion, we continue to maintain a healthy CapEx level in support of our customers as we drive strong free cash flow. As you know, we pulled some high-end DDIC test platforms into the first half to meet customer demand. As the high-end DDIC test platform UT still remains high level, we will add new DDIC high-end capacity in Q4 based on further customer demand to maintain our competitive advantage and strength.

在產能擴張方面，我們在推動強勁的自由現金流的同時，繼續保持健康的資本支出水平，以支持我們的客戶。大家知道，我們上半年把一些高階的DDIC測試平台拉進來，以滿足客戶的需求。由於高階DDIC測試平台UT仍保持在較高水平，我們將根據進一步的客戶需求，在第四季度新增DDIC高階產能，以維持我們的競爭優勢和實力。

Operator, that concludes our formal remarks, we can now take questions.

接線員，我們的正式發言結束了，我們現在可以提問了。

Thank you. At this time, we will be conducting a question-and-answer session.

謝謝。此時，我們將進行問答環節。

Our first question comes from Stanley Wang from SinoPac.

我們的第一個問題來自永豐金控的Stanley Wang。

Firstly, would you please tell us why Q3 gross margin decreased while UT level improved? Secondly, color on the breakdown of net non-operation income?

首先請您告訴我們為什麼Q3毛利率下降而UT水平提高？其次，營業外淨收入明細的顏色？

There are several factors in gross margin including mix and variable costs. We saw higher electricity costs in Q3, about TWD 67 million, including a higher rate charged and a disadvantageous product mix. The breakdown of net non-operation income, primarily includes the foreign exchange gains of TWD 170 million and share of profit of associates accounted for using equity method of Unimos of TWD 61 million, interest income of TWD 41 million and interest expense of TWD 68 million.

毛利率有幾個因素，包括混合成本和變動成本。第三季電費上漲，約 6,700 萬新台幣，其中包括電費上漲和產品組合不利。營業外淨收入明細，主要包括匯兌收益 1.7 億新台幣、應佔 Unimos 採用權益法核算的聯營公司利潤 6,100 萬新台幣、利息收入 4,100 萬新台幣、利息支出 6,800 萬新台幣。

Could you comment about the sequential QoQ growth in 2023 in your comments?

您能否在評論中評論一下 2023 年環比環比增長？

As I mentioned earlier on the call, according to the current industry situation and customers’ feedback, our customers are being impacted by ongoing broader market softness in most end markets. We felt confident in October. However, UT level of large panel, TV, and smart phone products were impacted by softness in end product demand and likely will be for the coming period. Memory product momentum will be better than DDIC in Q4. We expect it would be flat QoQ in Q4.

正如我之前在電話會議中提到的，根據當前的行業狀況和客戶的回饋，我們的客戶正受到大多數終端市場持續更廣泛的市場疲軟的影響。十月我們充滿信心。然而，大型面板、電視和智慧型手機產品的UT水平受到終端產品需求疲軟的影響，並且可能會持續一段時間。第四季記憶體產品動能將優於DDIC。我們預計第四季將環比持平。

Could you comment about DDIC price pressure currently?

您能否評論一下目前 DDIC 的價格壓力？

Regarding to the price issue, as the high-end DDIC test platform UT remains at a high level, we will add new DDIC high-end capacity in Q4 for OLED and Automotive panel. We would expect to still maintain the price level of high-end testers due to higher UT rate for OLED product. For low-end testers and COF, we are taking this on a customer by customer basis and retaining some flexibility in the OEM price to the further improvement of the utilization rate.

關於價格問題，由於高階DDIC測試平台UT仍處於高水平，我們將在Q4增加新的DDIC高端產能，用於OLED和汽車面板。由於 OLED 產品的 UT 率較高，我們預期高階測試儀的價格水準仍將維持不變。對於低端測試儀和COF，我們會根據客戶的情況進行處理，並在OEM價格上保留一定的靈活性，以進一步提高利用率。

Please give us the 2024 outlook and comment on our dividend policy.

請給我們2024年的展望並對我們的股利政策發表評論。

This is early for us to provide a view on 2024. We would normally do that after our budgeting when we report Q4 results. Regarding to dividend policy, it will be based on our payout ratio policy.

對我們來說，現在提供對 2024 年的看法還為時過早。我們通常會在預算完成後報告第四季度的業績時這樣做。關於股利政策，將基於我們的派息率政策。

It looks like the revenue from mixed-signal has declined a lot, could you explain the reason? Furthermore, for mid- to long-term, is the company developing new product lines for business other than memory and DDIC?

看起來混合訊號的收入下降了很多，你能解釋一下原因嗎？此外，從中長期來看，公司是否正在為內存和DDIC以外的業務開發新的產品線？

Within mixed-signal products, we see increased revenue QoQ from products like E-compass, however, product display peripheral chips revenue significantly declined. To your second question, yes we have been developing more business in the areas like sensor, E-compass and flip chip package with the advantage of having bumping and assembly capabilities.

在混合訊號產品中，我們看到電子羅盤等產品的收入環比增加，但產品顯示外圍晶片收入大幅下降。對於你的第二個問題，是的，我們一直在感測器、電子羅盤和倒裝晶片封裝等領域開發更多業務，並具有凸塊和組裝能力的優勢。

Thank you. And I am not showing any further questions in the queue. I would like to turn the call back over to GS.

謝謝。我不會在隊列中顯示任何其他問題。我想將電話轉回給 GS。

That concludes our question-and-answer session. Thank you for participating. I’ll turn the floor back to Mr. S.J. Cheng for any closing comments.

我們的問答環節到此結束。感謝您的參與。我將把發言權轉回給 S.J. 先生。鄭先生發表任何結束意見。

Thank you everyone for joining our conference call. Please email our IR Team if you have any more questions. We appreciate your support. Goodbye.

感謝大家參加我們的電話會議。如果您還有任何疑問，請發送電子郵件給我們的 IR 團隊。我們感謝您的支持。再見。

Ladies and gentlemen, this concludes today’s conference call. Thank you for participating. You may now disconnect.

女士們先生們，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。

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[本筆錄中的英語陳述是由現場通話中的口譯員說出的。]