ChipMOS Technologies Inc (IMOS) 2024 Q3 法說會逐字稿

Greetings, and welcome to the ChipMOS' third-quarter 2024 results conference call.

大家好，歡迎參加南茂科技 2024 年第三季業績電話會議。

(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 third-quarter 2024 results conference call.

歡迎大家參加茂茂2024年第三季業績電話會議。

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有董事長兼總裁鄭世傑先生；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 more color on the operating environment.

S.J. 將主持會議並回顧業務亮點，並為營運環境提供更多色彩。

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

在 Silvia 審查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，我們在今天的電話會議上發布了有關 MOPS 和 ChipMOS 網站 www.chipmos.com 的簡報。

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，該免責聲明在今天演示文稿的第二頁和我們發布的結果新聞稿中被標記為安全港通知。

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.

現在我想把電話轉給我們公司的董事長兼總裁鄭世傑先生。

Please go ahead, sir.

請繼續，先生。

We appreciate everyone joining our call today.

我們感謝大家今天加入我們的電話會議。

Our results were strong in the third quarter.

我們第三季的業績強勁。

We are pleased with our business execution in the face of headwinds from inventory adjustments across most end markets, which is being seen by the broader industry and is not specific to ChipMOS.

面對大多數終端市場庫存調整帶來的阻力，我們對我們的業務執行感到滿意，這是更廣泛的行業所看到的，而不是 ChipMOS 特有的。

At the same time, we continue to focus on improving operating leverage, operating expense management and overall efficiency of our business.

同時，我們持續專注於提高營運槓桿、營運費用管理和業務整體效率。

We are carefully adding capacity through disciplined capital allocation to meet higher growth opportunities.

我們正在透過嚴格的資本配置謹慎地增加產能，以滿足更高的成長機會。

As a result, we are expanding our leadership and building greater value for shareholders over the long term.

因此，我們正在擴大我們的領導地位，並為股東創造更大的長期價值。

In terms of Q3 highlights, our Q3 revenue increased 4.4% compared to Q2 2024, and was up 8.7% on a year-over-year basis.

就第三季亮點而言，我們第三季營收較 2024 年第二季成長 4.4%，年增 8.7%。

Q3 gross profit increased 3.4% compared to Q2 2024, while gross margin remained flat over the same period, impacted by cost increases and a lower assembly UT and decreased 200 basis points compared to Q3 2023.

與 2024 年第二季相比，第三季毛利成長了 3.4%，而同期毛利率則持平，受成本增加和組裝 UT 降低的影響，與 2023 年第三季相比下降了 200 個基點。

Net earnings of TWD0.41 in Q3 2024, and TWD1.63 for the first nine months of 2024.

2024年第三季淨利為新台幣0.41，2024年前九個月淨利為新台幣1.63。

In terms of the details, our overall utilization rate was 67% in Q3 2024 compared to 69% in Q2 2024.

從細節來看，2024 年第三季我們的整體利用率為 67%，而 2024 年第二季為 69%。

The slight decrease came from assembly UT which decreased to 58% in Q3, impacted by customer inventory adjustments.

略有下降來自於組裝UT，受客戶庫存調整影響，第三季下降至58%。

Average test utilization and DDIC both held the same level as Q2 2024 were 67% and 75% respectively.

平均測試利用率和 DDIC 均保持與 2024 年第二季相同的水平，分別為 67% 和 75%。

Bumping UT level slightly increased to 66%.

碰撞 UT 水準略有增加至 66%。

Regarding our manufacturing business, assembly represented 22.1% of Q3 revenue.

至於我們的製造業務，組裝佔第三季營收的22.1%。

Mixed signal and memory testing represented 22.8% and wafer bumping represented 23.2% of Q3 revenue.

混合訊號和記憶體測試佔第三季營收的 22.8%，晶圓凸塊測試佔 23.2%。

On a product basis, our DDIC product represented 32.6% of total revenue in Q3, with gold bumping representing about 20.5%.

從產品來看，我們的DDIC產品佔第三季總營收的32.6%，其中金塊約佔20.5%。

Revenue from DRAM and SRAM represented 13.6% of total Q3 revenue.

DRAM 和 SRAM 營收佔第三季總營收的 13.6%。

Our mixed signal products represented 10.6% of total Q3 revenue.

我們的混合訊號產品佔第三季總營收的 10.6%。

As additional color on our business, our memory products represented 36.3% of total Q3 revenue.

作為我們業務的額外亮點，我們的記憶體產品佔第三季總收入的 36.3%。

Memory product revenue slightly increased 1.1% compared to Q2 2024 and increased 16.2% on a year over year basis.

記憶體產品營收較 2024 年第二季小幅成長 1.1%，年增 16.2%。

DRAM revenue slightly decreased 1.6% compared to Q2 2024 and represented 13.3% of total Q3 revenue.

與 2024 年第二季相比，DRAM 營收略有下降 1.6%，佔第三季總營收的 13.3%。

Flash revenue represented about 22.7% of Q3 revenue, which was up 3.2% compared to Q2 2024.

快閃記憶體收入約佔第三季營收的 22.7%，較 2024 年第二季成長 3.2%。

NOR flash also benefited from customers rebuilding inventory levels and increased 9% compared to Q2 2024.

NOR快閃記憶體也受惠於客戶重建庫存水平，與2024年第二季相比增加了9%。

NAND flash represented 30.2% of Q3 total flash revenue, impacted by customer adjust inventory, and decreased 10.4% compared to Q2 2024.

受客戶調整庫存影響，NAND快閃記憶體佔第三季快閃記憶體總營收的30.2%，較2024年第二季下降10.4%。

Moving on to driver IC and gold bump revenue, this represented about 53.1% of total Q3 revenue.

接下來是驅動 IC 和金凸塊收入，約佔第三季總收入的 53.1%。

This was up 4.3% compared to Q2 2024 and generally flat on a year-over-year basis.

與 2024 年第二季相比成長 4.3%，與去年同期基本持平。

Of note, gold bump revenue was up 14.5% compared to Q2 2024, while DDIC Revenue was slightly down 1.3% compared to Q2 2024.

值得注意的是，Gold Bump 營收較 2024 年第二季成長 14.5%，而 DDIC 營收較 2024 年第二季小幅下降 1.3%。

New OLED project production helped offset macro softness in large panel demand.

新的 OLED 項目生產有助於抵消大尺寸面板需求的宏觀疲軟。

COG represented about 65% of Q3 DDIC revenue and grew 7.3% compared to Q2.

COG 約佔第三季 DDIC 營收的 65%，較第二季成長 7.3%。

Demand related to auto panels contributed about 25% of our Q3 DDIC revenue, which was down about 2.7% compared to Q2, reflecting ongoing customer inventory rebalancing.

與汽車面板相關的需求約占我們第三季 DDIC 營收的 25%，較第二季下降約 2.7%，反映出客戶庫存的持續再平衡。

Regarding TDDI, it represented around 17.7% of Q3 DDIC revenue, while OLED grew to 26.3% of Q3 DDIC revenue.

TDDI 佔第三季 DDIC 營收的 17.7% 左右，而 OLED 則成長至第三季 DDIC 營收的 26.3%。

This was up 9.2% compared to Q2 2024 driven by new OLED project production and customer restocking.

受新 OLED 專案生產和客戶補貨的推動，與 2024 年第二季相比成長 9.2%。

On an end-market basis, total revenue from automotive and industrial represented about 21.2% of Q3 revenue.

從終端市場來看，來自汽車和工業的總收入約佔第三季營收的 21.2%。

This was up slightly 1.6% compared to Q2 2024.

與 2024 年第二季相比，略有成長 1.6%。

TV panel demand represented 16.3% of Q3 revenue, which was down 10% compared to Q2 2024, reflecting broader demand softness of large panels.

電視面板需求佔第三季營收的 16.3%，較 2024 年第二季下降 10%，反映出大面板的整體需求疲軟。

Smartphone revenue represented 39.5% of total Q3 revenue, which was up 10.6% compared to Q2 2024, led by new OLED projects.

在新 OLED 專案的帶動下，智慧型手機營收佔第三季總營收的 39.5%，較 2024 年第二季成長 10.6%。

Computing accounted for 3.4% of Q3 revenue, which was mostly flat with Q2 2024.

計算業務佔第三季營收的 3.4%，與 2024 年第二季基本持平。

Lastly, consumer related revenue represented 19.6% of total Q3 revenue, which was up 5.2% compared to Q2 2024, due to seasonally typical customer restocking.

最後，消費者相關收入佔第三季總營收的 19.6%，與 2024 年第二季相比成長 5.2%，這得益於季節性典型的顧客補貨。

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

現在請蘇女士來回顧一下2024年第三季的財務表現。

Silvia, please go ahead.

西爾維婭，請繼續。

Thank you, S. J.

謝謝你，S.J.

All dollar amounts cited in our presentation are in NT dollars.

我們的簡報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 TWD31.65 against USD1 as of September 30, 2024.

以下數字是根據截至 2024 年 9 月 30 日新台幣 31.65 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 頁的綜合經營績效摘要。

For the third quarter of 2024, total revenue was TWD6,068 million.

2024年第三季總營收為新台幣60.68億元。

Net profit attributable to the company was TWD299 million in Q3.

第三季歸屬公司淨利為新台幣2.99億元。

Net earnings for the third quarter of 2024 were TWD0.41 per basic common share or USD0.26 per basic

2024 年第三季淨利為每股基本普通股 0.41 新台幣或每股基本普通股 0.26 美元

[adds].

[補充]。

EBITDA for Q3 was TWD1,640 million.

第三季 EBITDA 為新台幣 16.4 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 remained very healthy in Q3 at 4.9%.

第三季的股本回報率仍然非常健康，為 4.9%。

Referencing presentation page 13 consolidated statements of comprehensive income.

參考示範第13頁綜合綜合損益表。

Compared to Q2 2024, total Q3 2024 revenue increased 4.4% compared to Q2 2024.

與 2024 年第二季相比，2024 年第三季總營收較 2024 年第二季成長 4.4%。

Q3 2024 gross profit was TWD843 million, with gross margin flat compared to 14% in Q2 2024.

2024 年第三季毛利為新台幣 8.43 億元，毛利率與 2024 年第二季的 14% 持平。

Our operating expenses in Q3 2024 were TWD449 million, or 7.4% of total which decreased 2.5% compared to Q2 2024.

2024 年第三季營運費用為新台幣 4.49 億元，佔總費用的 7.4%，較 2024 年第二季下降 2.5%。

Operating profit for Q3 2024 was TWD420 million, with operating profit margin at 6.9%, which is about an 0.5 ppts increase compared to Q2 2024.

2024年第三季營業利潤為新台幣4.2億元，營業利益率為6.9%，較2024年第二季增加約0​​.5個百分點。

Net non-operating expenses in Q3 2024 were TWD65 million compared to net non-operating income of TWD128 million in Q2 2024.

2024 年第三季的營業外支出淨額為 6,500 萬新台幣，而 2024 年第二季的營業外收入淨額為 1.28 億新台幣。

The difference is mainly due to the adverse foreign exchange impact of TWD98 million from the foreign exchange gains of TWD25 million in Q2 2024 to the foreign exchange losses of TWD73 million in Q3 2024, decrease of gain on disposal of non-current assets held for sale of TWD72 million and gain on valuation of financial assets at fair value through profit or loss of TWD18 million.

差異主要是由於2024年第二季匯兌收益25百萬新台幣​​對2024年第三季匯兌損失73百萬新台幣​​產生98百萬新台幣​​的不利匯兌影響、持有待售的非流動資產處置收益減少所致新台幣 7,200 萬元，以公允價值計量且其變動計入損益的金融資產估值收益為新台幣 1,800 萬元。

Profit attributable to the company in Q3 2024 decreased 33.6% compared to Q2 2024.

2024年第三季公司應占利潤較2024年第二季下降33.6%。

The difference mainly due to increase of net non-operating expenses of TWD193 million, primarily due to the adverse foreign exchange impact noted above.

此差異主要是由於上述不利外匯影響導致營業外支出淨額增加 1.93 億元新台幣。

This was partially offset by the increase of operating profit of TWD46 million.

這被營業利潤增加 4,600 萬新台幣部分抵銷。

Basic weighted average outstanding shares were 727 million shares compared to Q3 2023.

與 2023 年第三季相比，基本加權平均流通股數為 7.27 億股。

Total revenue for Q3 2024 increased 8.7% compared to Q3 2023.

2024 年第三季的總營收較 2023 年第三季成長 8.7%。

Gross margin at 13.9% decreased 2.0 ppts compared to Q3 2023.

毛利率為 13.9%，較 2023 年第三季下降 2.0 個百分點。

Operating expenses increased 2.1% compared to Q3 2023.

與 2023 年第三季相比，營運費用成長 2.1%。

Operating profit margin at 6.9% decreased 1.8 ppts compared to Q3 2023.

營業利益率為 6.9%，較 2023 年第三季下降 1.8 個百分點。

Net non-operating expenses in Q3 2024 were TWD65 million compared to net non-operating income of TWD231 million in Q3 2023.

2024 年第三季的營業外支出淨額為 6,500 萬新台幣，而 2023 年第三季的營業外淨收入為 2.31 億新台幣。

The difference is mainly due to the adverse foreign exchange impact of TWD240 million from the foreign exchange gains of TWD167 million in Q3 2023 to the foreign exchange losses of TWD73 million in Q3 2024; and the adverse impact of share of associates accounted for using equity method of TWD68 million from share of profit of associates accounted for using equity method of TWD63 million in Q3 2023, to share of loss of associates accounted for using equity method TWD5 million in Q3 2024.

差異主要是由於2023年第三季外匯收益1.67億新台幣對2024年第三季外匯損失73百萬新台幣​​產生了2.4億新台幣的不利外匯影響；以及權益法核算的聯營公司份額對 2023 年第三季應佔權益法核算的聯營公司利潤 6,300 萬新台幣，對 2024 年第三季應佔權益法核算的聯營公司虧損 500 萬新台幣的不利影響。

Profit attributable to the company decreased 48.4% compared to Q3 2023.

公司應占利潤較2023年第三季下降48.4%。

The difference is mainly due to an increase of net non-operating expenses of TWD296 million and the decrease of operating profit of TWD67 million.

差異主要是營業外支出淨額增加新台幣2.96億元，營業利潤減少新台幣6,700萬元。

This was partially offset by a TWD82 million decrease in income tax expense.

這被所得稅費用減少 8,200 萬新台幣部分抵消。

As noted earlier, the increase in net non-operating expenses was primarily due to the adverse foreign exchange impact.

如前所述，營業外支出淨額的增加主要是由於不利的外匯影響。

Referencing presentation page 14, consolidated statements of financial position and key indices total assets at the end of Q3 2024 were TWD45,291 million.

參考演示第 14 頁，截至 2024 年第三季末的合併財務狀況表和關鍵指標總資產為新台幣 452.91 億元。

Total liabilities at the end of Q3 2024 were TWD20,449 million.

截至2024年第三季末的負債總額為新台幣204.49億元。

Total equity at the end of Q3 2024 was TWD24,842 million.

截至2024年第三季末的總股本為新台幣248.42億元。

Accounts receivable turnover days in Q3 2024 were 83 days.

2024 年第三季應收帳款週轉天數為 83 天。

Inventory turnover days was 49 days in Q3 2024.

2024 年第三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 September 30, 2024, our balance of cash and cash equivalents was TWD13.777 billion.

截至2024年9月30日，現金及現金等價物餘額為新台幣137.77億元。

Net free cash outflow for the first nine months of 2024 was TWD401 million compared to net free cash inflow of TWD1,089 million for the same period in 2023.

2024 年頭 9 個月的自由現金流淨額為新台幣 4.01 億元，而 2023 年同期的自由現金流淨額為新台幣 10.89 億元。

The decrease was mainly due to a TWD1,851 million CapEx increase and a TWD364 million reduction in cash dividend paid.

減少的主因是資本支出增加 18.51 億元新台幣，現金股利減少 3.64 億元新台幣。

We continue to balance our capital allocation strategy by investing in the long-term capacity and revenue generation areas that will drive our success, while returning value to shareholders through the distribution of dividends.

我們繼續透過投資於將推動我們成功的長期產能和創收領域來平衡我們的資本配置策略，同時透過股利分配向股東回報價值。

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 TWD2,089 million in CapEx in Q3.

第三季我們在資本支出上投資了 20.89 億新台幣。

The breakdown of capex in Q3 was 3.5% for bumping, 53.6% for LCD driver, 14% for assembly, and 28.9% for testing.

第三季的資本支出細分為凸點資本支出 3.5%、LCD 驅動器資本支出 53.6%、組裝資本支出 14%、測試資本支出 28.9%。

Depreciation expenses were TWD1,220 million in Q3.

第三季折舊費用為新台幣 12.2 億元。

As of October 31, 2024 the company's outstanding ads number was approximately 3.9 million units, which represents around 10.8% of the company's outstanding common shares.

截至 2024 年 10 月 31 日，該公司已發行的廣告數量約為 390 萬個，約佔該公司已發行普通股的 10.8%。

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鄭世傑先生，詢問我們的前景。

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 expected the third quarter will be the high point for the year.

根據我們從行業客戶和公司聽到的消息，我們預計第三季將是今年的高點。

We are taking a conservative view on Q4 given the continued headwinds facing the broader market and uncertainty around continued customer inventory adjustments.

鑑於大盤持續面臨的阻力以及客戶庫存持續調整的不確定性，我們對第四季持保守看法。

Overall, we continue to expect the second half of 2024 will be better than first half of 2024.

整體而言，我們繼續預期 2024 年下半年將優於 2024 年上半年。

This is also in line with what we have heard from some of the largest semiconductor companies.

這也與我們從一些最大的半導體公司聽到的情況相符。

Therefore, UT level improvement is our operation and business priority for ChipMOS.

因此，UT水平的提升是我們芯茂的營運和業務重點。

In our memory product business, a slight correction is expected in the fourth quarter due to softer demand and inventory adjustments by customers.

在我們的記憶體產品業務中，由於需求疲軟和客戶的庫存調整，預計第四季度將出現小幅調整。

DRAM products are maintaining stable momentum with improving end markets.

DRAM產品維持穩定勢頭，終端市場改善。

A slight correction for NAND flash is expected in Q4 primarily due to a weaker consumer market.

預計第四季 NAND 快閃記憶體將出現小幅調整，主要是因為消費市場疲軟。

NOR flash is expected to be impacted by normal seasonal inventory adjustment at customers.

NOR快閃記憶體預計將受到客戶正常季節性庫存調整的影響。

In our DDIC business, we expect to see some correction in Q4 due to soft demand of TV panels and customer destocking in smartphones.

在我們的 DDIC 業務中，由於電視面板需求疲軟和智慧型手機客戶去庫存，我們預計第四季度將出現一些調整。

Meanwhile, auto panel and OLED business momentum has slowed with customers taking a more conservative order pattern in response to the market situation and inventory levels.

同時，汽車面板和OLED業務成長勢頭放緩，客戶因應市場情勢和庫存水準採取更保守的訂單模式。

Therefore, we expect our DDIC product momentum to be impacted more than our memory product momentum.

因此，我們預計 DDIC 產品動能受到的影響將大於記憶體產品動能。

In addition, we are working closely with our customers on our new low-cost silver alloy bump solution on panel level reliability qualification with continued manufacture process optimizations and simplifications.

此外，我們正在與客戶密切合作，開發新的低成本銀合金凸塊解決方案，以進行面板級可靠性鑑定，並持續優化和簡化製造流程。

I am pleased to report that our low-cost silver alloy bump solution has successfully passed the reliability test for small and medium-sized panels.

我很高興地報告，我們的低成本銀合金凸塊解決方案已成功通過中小型面板的可靠性測試。

This is another bright spot for us with some customers' products already starting to design us in, and a lot of interest from both overseas and domestic customers in our solution.

這是我們的另一個亮點，一些客戶的產品已經開始設計我們的產品，國內外客戶對我們的解決方案很感興趣。

We expect our low-cost bump solution will further enhance our DDIC product competitive position.

我們預計我們的低成本凸塊解決方案將進一步增強我們的 DDIC 產品競爭地位。

Overall, ChipMOS is in a very strong position in long-term growth markets with a very strong balance sheet.

總體而言，ChipMOS 在長期成長市場中處於非常有利的地位，並擁有非常強勁的資產負債表。

We will continue to develop long-term customer relationships and provide the support that customers rely on us for and value.

我們將繼續發展長期的客戶關係，並提供客戶依賴我們的支援和價值。

That concludes our formal remarks, we can now take questions.

我們的正式發言到此結束，現在我們可以提問。

Anthony Liu, Yuanta.

劉安東尼，元大人。

Can you please give us some guidelines for 2024 and 2025 CapEx?

您能給我們一些 2024 年和 2025 年資本支出的指導嗎？

We expect 20% to 25% for 2024 due to previous high-end tester capacity expansion.

由於先前高端測試儀產能擴張，我們預計 2024 年將成長 20% 至 25%。

And roughly 15% to 20% for 2025.

2025 年大約是 15% 到 20%。

Can you please give us some guidelines for depreciation?

您能給我們一些折舊指南嗎？

Would you expect the depreciation to still be 3% to 4% incremental quarterly under the condition of previous higher CapEx?

在先前資本支出較高的情況下，您是否預期每季折舊仍會增加 3% 至 4%？

We expect the depreciation of 4Q24 to 1Q25 would still be around a 3% to 4% quarterly increase.

我們預計 24 年第 4 季至 25 年第 1 季的貶值仍將按季度增長 3% 至 4% 左右。

However, if the CapEx in 2025 would be lower as previous mentioned and the number could be reduced.

然而，如果 2025 年的資本支出如前所述較低，則數量可能會減少。

Maybe it is still too early, I have some questions about the 2025 outlook.

也許現在還為時過早，我對 2025 年的展望有一些疑問。

Firstly, any strategy or action of the company for competition from China?

首先，公司針對來自中國的競爭有何策略或行動？

As mentioned earlier, we are cooperating with our customers for our low-cost silver alloy bump solution on panel level reliability qualification and have successfully qualified for small and medium-sized panels.

如前所述，我們正在與客戶合作開發低成本銀合金凸點解決方案進行面板級可靠性認證，並已成功獲得中小型面板認證。

We are already seeing a lot of interest from both overseas and domestic customers in our solution.

我們已經看到海外和國內客戶對我們的解決方案表現出了濃厚的興趣。

We expect our low-cost bump solution will further enhance our DDIC product competitive position.

我們預計我們的低成本凸塊解決方案將進一步增強我們的 DDIC 產品競爭地位。

Further, we also expect that our UT level could be lifted and then improve our profit with the recovery of end-demand.

此外，我們也預期隨著終端需求的恢復，我們的UT水準可能會提高，從而提高我們的利潤。

In the meantime, we are improving the product mix by increasing the market share of high-profit and margin product, for example OLED, auto panel, flip chip of memory and other mixed signal product.

同時，我們正在改善產品結構，增加高利潤和高利潤產品的市場份額，例如OLED、汽車面板、記憶體倒裝晶片和其他混合訊號產品。

Secondly, please give us more color on the DDIC and memory segments in 2025.

其次，請給我們更多有關 2025 年 DDIC 和記憶體領域的資訊。

Well, it is still too early to comment, however, we expect to see some rush order of large panel DDIC while approaching year-end.

嗯，現在評論還為時過早，但是，我們預計在接近年底時會看到一些大型面板 DDIC 的緊急訂單。

Further, we also see inventory level improving.

此外，我們也看到庫存水準有所改善。

It appears that a couple of fabulous companies in Taiwan and China are aggressively focusing on the OLED market.

台灣和中國大陸的幾家優秀公司似乎正在積極關注 OLED 市場。

Do you see any business opportunity from them?

您從他們身上看到什麼商機嗎？

A couple of them have been our long-time customers. closely follow their product roadmaps to grow together.

他們中的一些人是我們的長期客戶。密切關注他們的產品路線圖，共同成長。

Thirdly, please give us more color for memory outlook in 2025.

第三，請給我們2025年的記憶體展望更多的色彩。

In terms of memory, we are optimistic about the product trend of upgrading commodity DRAM to DDR5 and high-density, multi-chip stacked NAND flash.

記憶體方面，我們看好商用DRAM升級為DDR5以及高密度、多晶片堆疊NAND快閃記憶體的產品趨勢。

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。

Thank you.

謝謝。

I will read one question from foreign institutional investors.

我來讀一下國外機構投資者的一個問題。

The question is asking about the company's dividend policy under the current business situation.

問題是詢問公司在當前經營情況下的股利政策。

To consider the further operation cash, capital expense and shareholders' equity, our dividend policy would still be between 40% to 60% of earnings.

考慮到進一步的營運現金、資本支出和股東權益，我們的股利政策仍將在獲利的40%至60%之間。

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.

我將請 S.J. Cheng 先生徵求結束意見。

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。

Goodbye.

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。