ChipMOS Technologies Inc (IMOS) 2024 Q2 法說會逐字稿

Greetings, and welcome to the ChipMOS second quarter 2024 results conference call.

大家好，歡迎參加南茂茂茂 2024 年第二季業績電話會議。

(Operator Instructions)

（操作員說明）

I would now like to turn the conference over to Dr. G.S. Shen of ChipMOS Technologies' Strategy and Investor Relations team to introduce the management team of the company in conference.

現在我想請南茂科技策略與投資人關係團隊的G.S. Shen博士在會議上介紹公司的管理團隊。

Dr. Shen, you may begin.

沈醫生，您可以開始了。

Thank you, operator.

謝謝你，接線生。

Welcome, everyone, to ChipMOS' second quarter 2024 results conference call.

歡迎大家參加芯茂科技2024年第二季業績電話會議。

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.

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。

We are also joined on the call today by Mr. Jesse Huang, Spokesperson and Senior Vice President of Strategy and Investor Relations.

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. will chair the meeting and review business highlights and provide color on the operating environment.

S.J.將主持會議並回顧業務亮點並提供營運環境的資訊。

After Silvia's review of the company's key financial results, S.J. will provide our current business outlook.

在 Silvia 審查了公司的主要財務表現後，S.J.將提供我們當前的業務前景。

All company executives will then participate in an open Q&A session.

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.

請注意，我們已經在 MOPS 和 ChipMOS 網站 www.chipmos.com 上發布了演示文稿，以配合今天的電話會議。

Before we begin the prepared comments, we remind you to review our forward-looking statements disclaimer, which is noted as the Safe Harbor Notice on the second page of today's presentation and in the results press release we issued.

在我們開始準備評論之前，我們提醒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和我們發布的結果新聞稿中被標記為「安全港聲明」。

As a reminder, today's conference call is being recorded, and a replay will be made available later today on the company's website.

提醒一下，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。

At this time, I'd like to now turn the call over to our company's Chairman and President, Mr. S.J. Cheng.

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.

是的。

Thank you, G.S. We appreciate everyone joining our call today.

謝謝 G.S。

We are very pleased with our strong results and business execution in the face of headwinds from inventory adjustments across most end markets.

面對大多數終端市場庫存調整的阻力，我們對我們的強勁業績和業務執行力感到非常滿意。

We delivered strong revenue growth, profit expansion, and drove free cash flow.

我們實現了強勁的收入成長、利潤擴張並推動了自由現金流。

We continue to carefully add capacity, expand our leadership, and build long-term value for shareholders through disciplined capital allocation and by focusing on the highest return opportunities.

我們繼續謹慎地增加產能，擴大我們的領導地位，並透過嚴格的資本配置和關注最高回報機會為股東創造長期價值。

In terms of Q2 highlights, our Q2 revenue increased 7.2% compared to Q1 2024 and was up 6.7% on a year-over-year basis.

就第二季亮點而言，我們第二季營收較 2024 年第一季成長 7.2%，年成長 6.7%。

Q2 gross profit increased 5.8% compared to Q1 2024, while gross margin remained flat over the same period and decreased 330 basis points compared to Q2 2023.

第二季毛利較 2024 年第一季成長 5.8%，而同期毛利率持平，較 2023 年第二季下降 330 個基點。

Net earnings increased to TWD0.62 in Q2 2024, up from TWD0.60 in Q1 2024 and accumulated first half of 2024 EPS is TWD1.22.

淨利從 2024 年第一季的 TWD0.60 增至 2024 年第二季的 TWD0.62，2024 年上半年累計 EPS 為 TWD1.22。

In terms of the details, our overall utilization rate improved to 69% in Q2 2024 from 63% in Q1 2024.

從細節來看，我們的整體利用率從 2024 年第一季的 63% 提高到 2024 年第二季的 69%。

This reflects a combination of an overall improvement in our business and loading levels and a seasonal uptick.

這反映出我們業務和裝載水準的整體改善以及季節性上升。

Assembly utilization increased to 65% and average test utilization was 67%.

組裝利用率提高到 65%，平均測試利用率為 67%。

DDIC was at 75% and Bumping UT level increased to 65%.

DDIC 為 75%，Bumping UT 水準增加至 65%。

Regarding our manufacturing business, assembly represented 22.3% of Q2 revenue.

就我們的製造業務而言，組裝佔第二季營收的 22.3%。

Mixed-signal and memory testing represented 21.9%, and wafer bumping represented 21.9% of Q2 revenue.

混合訊號和記憶體測試佔第二季營收的 21.9%，晶圓凸點測試佔第二季營收的 21.9%。

On a product basis, our DDIC product represented 34.1% of total revenue in Q2, with gold bumping representing about 18.5%.

從產品來看，我們的 DDIC 產品佔第二季總營收的 34.1%，其中金塊約佔 18.5%。

Revenue from DRAM and SRAM represented 14.5% of total Q2 revenue.

DRAM 和 SRAM 營收佔第二季總營收的 14.5%。

Our mixed-signal products represented 10.2%.

我們的混合訊號產品佔 10.2%。

As additional color on our business, our memory products represented 37.2% of total Q2 revenue.

作為我們業務的額外亮點，我們的記憶體產品佔第二季總收入的 37.2%。

Memory product revenue increased 2.4% compared to Q1 2024, and increased 17.6% on a year-over-year basis.

記憶體產品營收較 2024 年第一季成長 2.4%，年增 17.6%。

DRAM revenue decreased 5% compared to Q1 2024 and represented 13.9% of total Q2 revenue.

與 2024 年第一季相比，DRAM 營收下降 5%，佔第二季總營收的 13.9%。

Flash revenue represented about 22.7% of Q2 revenue, which was up 7.3% compared to Q1 2024.

快閃記憶體收入約佔第二季營收的 22.7%，較 2024 年第一季成長 7.3%。

NOR flash also benefited significantly from customers rebuilding inventory levels and increased more than 30% compared to Q1 2024.

NOR快閃記憶體也顯著受益於客戶重建庫存水平，與2024年第一季相比增加了30%以上。

NAND flash represented 34.8% of Q2 total flash revenue and decreased 17.7% compared to Q1 2024.

NAND 快閃記憶體佔第二季快閃記憶體總營收的 34.8%，較 2024 年第一季下降 17.7%。

Moving on to driver IC and gold bump revenue.

接下來是驅動 IC 和黃金收入成長。

This represented about 52.6% of total Q2 revenue.

這約佔第二季總收入的 52.6%。

This was up 11.3% compared to Q1 2024 and flat on a year-over-year basis.

與 2024 年第一季相比成長 11.3%，與去年同期持平。

Of note, gold bump revenue was up 7.6% compared to Q1 2024.

值得注意的是，與 2024 年第一季相比，Gold Bump 營收成長了 7.6%。

We benefited from large panel rush orders and stable demand from auto panels.

我們受益於大量面板搶購訂單和汽車面板的穩定需求。

OLED growth helped drive DDIC revenue up 13.3% compared to Q1 2024 and large panel rush order helped COF significantly grow 32.5%.

與 2024 年第一季相比，OLED 成長有助於推動 DDIC 收入成長 13.3%，大面板緊急訂單幫助 COF 大幅成長 32.5%。

Auto panel contributed about 26% of our Q2 DDIC revenue.

汽車面板貢獻了我們第二季 DDIC 收入的約 26%。

This growth tracks with our prior comments.

這一增長與我們先前的評論一致。

We continue to view automotive as an important mid- and long-term growth market for us.

我們繼續將汽車視為我們重要的中長期成長市場。

Our track record of quality excellence and required qualifications gives us a competitive edge in serving auto customers.

我們卓越的品質記錄和所需的資格使我們在服務汽車客戶方面具有競爭優勢。

Regarding TDDI, it represented around 17.8% of Q2 DDIC revenue with OLED at 23.8% of Q2 DDIC revenue and was up 13.6% compared to Q1 2024, driven by customers' restocking.

TDDI 佔第二季 DDIC 營收的 17.8% 左右，OLED 佔第二季 DDIC 營收的 23.8%，在顧客補貨的推動下，較 2024 年第一季成長 13.6%。

On an end market basis, total revenue from automotive and industrial represented about 23.3% of Q2 revenue.

從終端市場來看，來自汽車和工業的總收入約佔第二季營收的 23.3%。

This was up 14.7% compared to Q1 2024.

與 2024 年第一季相比成長了 14.7%。

TV panel demand represented 18.7% of Q2 revenue, which was up 27.7% compared to Q1 2024.

電視面板需求佔第二季營收的 18.7%，較 2024 年第一季成長 27.7%。

Smartphone-related demand represented 35.6% of Q2 revenue, which was flat with Q1 2024.

智慧型手機相關需求佔第二季營收的 35.6%，與 2024 年第一季持平。

Computing accounted for 3.6% of Q2 revenue and increased 15.3% compared to Q1 2024.

計算業務佔第二季營收的 3.6%，較 2024 年第一季成長 15.3%。

Lastly, consumer-related demand represented 18.8% of Q2 revenue and was flat compared to Q1 2024.

最後，消費者相關需求佔第二季營收的 18.8%，與 2024 年第一季相比持平。

Now let me turn the call to Ms. Silvia Su to review the second quarter 2024 financial results.

現在請蘇女士來回顧一下2024年第二季的財務表現。

Silvia, please go ahead.

西爾維婭，請繼續。

Thank you, S.J. All dollar amounts cited in our presentation are in NT dollars.

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。

The following numbers are based on the exchange rates of TWD32.45 against $1 as of June 28, 2024.

以下數字是根據截至 2024 年 6 月 28 日新台幣 32.45 兌 1 美元的匯率。

All the figures were prepared in accordance with Taiwan-International Financial Reporting Standards.

所有數據均依據台灣國際財務報告準則編製。

Referencing presentation page 12, consolidated operating results summary.

參考簡報第 12 頁，綜合經營績效摘要。

For the second quarter of 2024, total revenue was TWD5,810 million.

2024年第二季總營收為新台幣58.1億元。

Net profit attributable to the company was TWD451 million in Q2.

第二季歸屬於公司的淨利為新台幣4.51億元。

Net earnings for the second quarter of 2024 were TWD0.62 per basic common share or $0.38 per basic ADS.

2024 年第二季淨利為每股基本普通股 0.62 新台幣或每股基本美國存託股 0.38 美元。

EBITDA for Q2 was TWD1,558 million.

第二季 EBITDA 為新台幣 15.58 億元。

EBITDA was calculated by adding depreciation and amortization together with operating profit.

EBITDA 是透過將折舊和攤提與營業利潤相加計算得出的。

Return on equity of Q2 was 7.2%.

第二季股本回報率為7.2%。

Referencing presentation page 13, consolidated statements of comprehensive income compared to 1Q '24.

參考簡報第 13 頁，綜合損益表與 24 年第一季的比較。

Total 2Q '24 revenue increased 7.2% compared to 1Q '24.

與 24 年第一季相比，2024 年第二季總營收成長了 7.2%。

2Q '24 gross profit was TWD815 million with gross margin at 14% compared to 14.2% in 1Q 24.

2024 年第二季毛利為新台幣 8.15 億元，毛利率為 14%，而 24 年第一季毛利率為 14.2%。

This represents a decrease of 0.2 ppts.

這意味著下降了 0.2 個百分點。

Our operating expenses in 2Q '24 were TWD460 million, or 7.9% of total revenue, which increased 7.1% compared to 1Q '24.

我們2024年第二季的營運費用為新台幣4.6億元，佔總營收的7.9%，比24年第一季增加7.1%。

Operating profit for 2Q '24 was TWD374 million, with operating profit margin at 6.4%, which is about a 0.3 ppts decrease compared to 1Q '24.

2024 年第 2 季營業利潤為新台幣 3.74 億元，營業利益率為 6.4%，較 24 年第 1 季減少約 0.3 個百分點。

Net non-operating income in 2Q '24 were TWD128 million, which decreased TWD29 million compared to 1Q '24.

2024 年第 2 季營業外淨收入為新台幣 1.28 億元，較 24 年第 1 季減少 2,900 萬元。

The difference is mainly due to the decrease of the foreign exchange gains of TWD128 million and partially offset by the increase of gain on disposal of non-current assets held for sale of TWD72 million and interest income of

差異主要是由於匯兌收益減少 1.28 億元新台幣，但部分被持有待售的非流動資產處置收益增加新台幣 72 百萬元和利息收入增加 72 百萬元所抵銷。

[TWD17 million].

[1700萬新台幣]。

Profit attributable to the company in 2Q '24 increased 2.9% compared to 1Q '24.

與 2024 年第 1 季相比，2024 年第 2 季公司應佔利潤成長 2.9%。

Basic weighted average outstanding shares were 727 million shares.

基本加權平均流通股為7.27億股。

Compared to 2Q '23, total revenue for 2Q '24 increased 6.7% compared to 2Q '23.

與 2023 年第二季相比，24 年第二季的總營收比 23 年第二季成長了 6.7%。

Gross margin at 14% decreased 3.3 ppts compared to 2Q '23.

毛利率為 14%，與 2023 年第二季相比下降了 3.3 個百分點。

Operating expenses increased 4.1% compared to 2Q '23.

與 2023 年第二季相比，營運費用增加了 4.1%。

Operating profit margin at 6.4% decreased 3.2 ppts compared to 2Q '23.

營業利益率為 6.4%，與 2023 年第二季相比下降了 3.2 個百分點。

Net non-operating income decreased TWD95 million compared to 2Q '23.

營業外淨收入較 2023 年第二季減少 9,500 萬元新台幣。

The difference is mainly due to the decrease of the foreign exchange gains of TWD124 million and share of profit of associates accounted for using equity method of TWD47 million and partially offset by the increase of gain on disposal of non-current assets held for sale of TWD72 million.

差異主要是由於匯兌收益減少 1.24 億元新台幣及按權益法核算的應佔聯營公司利潤 4,700 萬元減少，部分被持有待售非流動資產處置收益增加新台幣 72 所抵銷百萬。

Profit attributable to the company decreased 28.3% compared to 2Q '23.

與 2023 年第二季相比，公司應佔利潤下降 28.3%。

The difference is mainly due to a decrease of operating profit of TWD148 million and net non-operating income of TWD95 million.

差異主要是營業利潤減少新台幣1.48億元、營業外淨收入減少新台幣9,500萬元。

This was partially offset by TWD64 million decrease in income tax expense.

這被所得稅費用減少 6,400 萬新台幣部分抵消。

Referencing presentation page 14, consolidated statements of financial position and key indices.

參考簡報第 14 頁，合併財務狀況表和關鍵指數。

Total assets at the end of 2Q '24 were TWD45,435 million.

2024 年第二季末總資產為新台幣 454.35 億元。

Total liabilities at the end of 2Q '24 were TWD20,919 million.

2024 年第二季末的總負債為新台幣 209.19 億元。

Total equity at the end of 2Q '24 was TWD24,516 million.

截至 2024 年第二季末的總股本為新台幣 245.16 億元。

Accounts receivable turnover days in 2Q '24 were 85 days.

2024 年第二季的應收帳款週轉天數為 85 天。

Inventory turnover days was 49 days in 2Q '24.

2024 年第二季的庫存週轉天數為 49 天。

Referencing presentation page 15, consolidated statements of cash flows.

參考示範第 15 頁，合併現金流量表。

As of June 30, 2024, our balance of cash and cash equivalents was TWD14.652 billion.

截至2024年6月30日，現金及現金等價物餘額為新台幣146.52億元。

Net free cash inflow for the first half of 2024 was TWD1,433 million compared to TWD1,950 million for the same period in 2023.

2024 年上半年的自由現金流淨額為新台幣 14.33 億元，而 2023 年同期為新台幣 19.5 億元。

The decrease was mainly due to TWD486 million CapEx increase and TWD42 million reduction in depreciation expenses.

減少的主因是資本支出增加 4.86 億新台幣，折舊費用減少 4,200 萬新台幣。

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.

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.

參考簡報第 16 頁，資本支出和折舊。

We invested TWD858 million in CapEx in Q2.

第二季我們在資本支出上投資了 8.58 億新台幣。

The breakdown of CapEx in Q2 was 4.3% for bumping, 44.7% for LCD driver, 28.7% for assembly, and 22.3% for testing.

第二季的資本支出細分為凸塊 4.3%，LCD 硬碟 44.7%，組裝 28.7%，測試 22.3%。

Depreciation expenses were TWD1,184 million in Q2.

第二季折舊費用為新台幣 11.84 億元。

As of July 31, 2024, the company's outstanding ADS number was approximately 4.2 million units, which represents around 11.6% of the company's outstanding common shares.

截至2024年7月31日，該公司已發行的ADS數量約為420萬股，約佔該公司已發行普通股的11.6%。

That concludes the financial review.

財務審查到此結束。

I will now turn the call back to our Chairman, Mr. S.J. Cheng, for our outlook.

現在我將把電話轉回給我們的主席 S.J. 先生。鄭先生，我們的展望。

Please go ahead, sir.

請繼續，先生。

Thank you, Silvia.

謝謝你，西爾維亞。

Based on what we are hearing from customers and companies in the industry, we are cautiously optimistic entering Q3.

根據我們從客戶和行業公司聽到的消息，我們對進入第三季持謹慎樂觀態度。

The market has been going through a series of challenges with the latest being inventory destocking.

市場經歷了一系列挑戰，最新的挑戰是去庫存。

Inventory levels have been getting back to normal but are not there yet in all markets.

庫存水準已恢復正常，但並非所有市場都恢復正常。

We expect the broader market condition will continue to improve as we move through 2024 based on the broader market drivers and ChipMOS' specific growth drivers.

根據更廣泛的市場驅動因素和 ChipMOS 的具體成長驅動因素，我們預計，隨著 2024 年的到來，更廣泛的市場狀況將繼續改善。

We expect this will lead to a stronger second half of 2024 with improved operating momentum.

我們預計這將導致 2024 年下半年更加強勁，營運動能有所改善。

In our memory product, DRAM and flash products are maintaining stable momentum with improving end markets and end customer inventory levels.

在我們的記憶體產品中，DRAM 和快閃記憶體產品保持穩定的勢頭，終端市場和終端客戶庫存水準不斷改善。

We are benefiting from customers restocking, which is driving higher momentum growth of NAND flash and Niche DRAM compared to other memory products.

我們受益於客戶補貨，這推動了 NAND 快閃記憶體和 Niche DRAM 與其他記憶體產品相比更高的成長動能。

In our DDIC product, automotive panel and OLED demand remained stable compared to other products.

在我們的DDIC產品中，與其他產品相比，汽車面板和OLED需求保持穩定。

This is leading to a high UT level for our high-end DDIC test platforms, particularly automotive panel portion.

這為我們的高階 DDIC 測試平台（特別是汽車面板部分）帶來了高 UT 水平。

In addition, we are benefiting from customers restocking for new smartphone launches, which is increasing the related assembly and test UT level of COG.

此外，我們還受益於客戶為新智慧型手機發布而補貨，這正在提高COG的相關組裝和測試UT水平。

Therefore, we think DDIC will continue to outgrow memory product momentum in Q3.

因此，我們認為 DDIC 在第三季將繼續超過記憶體產品的成長勢頭。

With regard to CapEx, we currently plan to invest in our memory test platform in the second half of the year to meet demand supporting memory upgrade to DDR4 and DDR5 from DDR3.

在資本支出方面，我們目前計劃在下半年投資我們的記憶體測試平台，以滿足支援記憶體從DDR3升級到DDR4和DDR5的需求。

Based on current customer forecasts and the increasing UT level, we acquired DDIC capacity to expand our DDIC high-end test capacity in short capacity expansion schedule for coming DDIC test capacity demand.

根據目前客戶預測和不斷提高的UT水平，我們收購了DDIC產能，以在較短的產能擴張計劃內擴大我們的DDIC高端測試能力，以滿足未來DDIC測試能力的需求。

In addition, we plan to purchase an idle factory located in the Southern Taiwan Science Park to handle test capacity expansion of automotive panel and OLED in Tainan to strengthen our further business growth momentum.

此外，我們計劃收購位於台灣南部科學園區的閒置工廠，用於擴大台南汽車面板和OLED的測試產能，以增強我們進一步的業務成長動力。

We continue to shift our product mix into higher-growth, higher-margin product areas.

我們繼續將我們的產品組合轉向高成長、高利潤的產品領域。

We are making CapEx investments in support of growth in these areas.

我們正在進行資本支出投資以支持這些領域的成長。

Our strategy is to use these higher-growth, higher-margin areas to reduce operating costs, improve profit,, and maintain business growth momentum and competition advantage.

我們的策略是利用這些高成長、高利潤的領域來降低營運成本、提高利潤，並維持業務成長動力和競爭優勢。

This is also in line with our continued cost reduction, quality improvement and operating strength actions.

這也符合我們持續降低成本、提升品質、增強營運實力的行動。

Finally, as we remain focused on expanding our leadership position, we are equally focused on building value for shareholders.

最後，在我們繼續專注於擴大我們的領導地位的同時，我們同樣專注於為股東創造價值。

Our latest action was returning cash to shareholders in the form of our latest dividend distribution, TWD1.8 per common share on July 19.

我們最新的行動是以 7 月 19 日每股普通股 1.8 新台幣的最新股息分配形式向股東返還現金。

Operator, that concludes our formal remarks.

接線員，我們的正式發言到此結束。

We can now take questions.

我們現在可以提問。

Thank you.

謝謝。

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

此時，我們將進行問答環節。

Anthony Liu, Yuanta.

劉安東尼，元大人。

Why did gross margin go down as UT level increased in Q2?

為什麼第二季UT水準提高後毛利率卻下降？

Thanks for your question.

謝謝你的提問。

In 2Q '24, gross margin was impacted by higher costs compared to Q1 2024.

與 2024 年第一季相比，2024 年第二季的毛利率受到成本上升的影響。

Electricity charges increased more than [TWD100 million] with the higher normal summer rate, a general charge rate increase since April and UT increase compared to Q1 2024.

由於夏季正常電價較高，電費自 4 月以來普遍上漲，且 UT 較 2024 年第一季增加，電費增加超過 [1 億新台幣]。

Meanwhile, the higher price of gold led gold bump material cost increase.

同時，金價走高導致金凸塊材料成本增加。

Salary and overtime pay also increased with the UT level improvement in Q2.

隨著第二季UT水準的提高，薪資和加班費也有所增加。

Could you comment on the H1 vs H2 ratio maintained the previous call, 47:53, and the gross margin target of H2 based on the ratio?

您能否評論一下維持先前預測的上半年與下半年的比率（47：53）以及基於該比率的下半年毛利率目標？

As I mentioned in the call, we are cautiously optimistic.

正如我在電話中提到的，我們持謹慎樂觀的態度。

We continue to expect our business momentum will improve through 2024, leading to a stronger second half with operating momentum, end markets and end customer inventory levels currently improving.

我們繼續預計，到 2024 年，我們的業務動能將得到改善，下半年營運動能將更加強勁，終端市場和終端客戶庫存水準目前也在改善。

The ratio would be very close as noted on the previous call, which is still depending on end consumer demand.

正如先前的電話會議所述，該比率將非常接近，但這仍然取決於最終消費者的需求。

As for the margin target, we continuously work to improve our cost structure for a better margin compared to H1, such as controlling electricity usage in order to manage electricity charges.

至於利潤率目標，我們不斷努力改善成本結構，以獲得比上半年更好的利潤率，例如控制用電量以管理電費。

What is the company's long-term depreciation as the CapEx increase in H2?

隨著下半年資本支出的增加，公司的長期折舊是多少？

And could you comment on the company's strength and action for the DDIC OSAT competition, including China?

您能否評估一下該公司在包括中國在內的 DDIC OSAT 競爭中的實力和行動？

Let me answer the depreciation question.

我來回答一下折舊問題。

By using 1Q '24 depreciation as a baseline, the depreciation rate of H1 should be around a 1%, 3% quarterly increase.

以24年第一季的折舊為基準，上半年的折舊率應該在每季增加1%、3%左右。

However, it would be up to a 3% to 4% quarterly CapEx increase.

然而，季度資本支出將增加 3% 至 4%。

Regarding the competition, including China, we have always assumed there would be competition in the industry.

關於競爭，包括中國，我們一直認為產業會有競爭。

We always run our business with competition in mind.

我們在開展業務時始終牢記競爭。

We are in a strong position to support customers and are positive about our business going forward.

我們有能力為客戶提供支持，並對我們的業務未來發展持正面態度。

Our focus is on providing a superior OSAT product and service.

我們的重點是提供卓越的 OSAT 產品和服務。

We continue to improve our quality, operations and competitiveness.

我們不斷提高我們的品質、營運和競爭力。

This includes expanding the penetration rate of high-end products such as OLED, automotive panels and high-end TVs to maintain the company's competitive advantage.

這包括擴大OLED、汽車面板和高階電視等高階產品的滲透率，以維持公司的競爭優勢。

We also expect to benefit from a higher quality level requirement for European and American brands.

我們也期望受益於歐美品牌更高的品質水準要求。

Thank you.

謝謝。

And I am not showing any further questions in the queue.

我不會在隊列中顯示任何其他問題。

I would like to turn the call back over to G. S. Shen.

我想將電話轉回 G.S. Shen。

That concludes our question-and-answer session.

我們的問答環節到此結束。

Thank you for participating.

感謝您的參與。

I'll turn the floor back to Mr. S.J. Cheng for any closing comments.

我將把發言權交還給 S.J. 先生。鄭先生發表任何結束意見。

Thank you, everyone, for joining our conference call.

感謝大家參加我們的電話會議。

Please email our IR team if you have any more questions.

如果您還有任何疑問，請發送電子郵件給我們的 IR 團隊。

We appreciate your support.

我們感謝您的支持。

Good-bye.

再見。

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 participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。