ChipMOS Technologies Inc (IMOS) 2024 Q4 法說會逐字稿

And welcome to the ChipMOS fourth-quarter and full-year 2024 results conference call. (Operator Instructions)

歡迎參加南茂科技 2024 年第四季及全年業績電話會議。（操作員指示）

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. Dr. Shen, you may begin.

現在我想將會議交給南茂科技策略與投資人關係團隊的沈國勝博士，他在會上介紹公司的管理團隊。沈博士，你可以開始了。

Thank you, operator. Welcome, everyone, to ChipMOS fourth-quarter and full-year 2024 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.

謝謝您，接線生。歡迎大家參加南茂科技 2024 年第四季及全年業績電話會議。今天與我們一起參加活動的是該公司的 S.J. 先生。鄭先生，董事長兼總裁；以及財務與會計管理中心副總裁蘇女士。我們今天的電話會議還有發言人兼策略和投資者關係高級副總裁 Jesse Huang 先生的參與。

S.J. will chair the meeting and review business highlights and provide more color on the operating environment. After Silvia's review of the company's key financial results, S.J. will provide our current business outlook. All company executives will then participate in an open Q&A session. 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.

S.J.將主持會議並回顧業務亮點並提供更多有關營運環境的資訊。在 Silvia 審查了公司的主要財務結果之後，S.J.將提供我們當前的業務前景。隨後，所有公司高層將參加公開問答環節。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. As a reminder, today's conference call is being recorded, and a replay will be made available later today on the company's website.

在我們開始準備好的評論之前，我們提醒您查看我們的前瞻性聲明免責聲明，該免責聲明在今天的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。提醒一下，今天的電話會議正在錄製中，重播將於今天晚些時候在公司網站上提供。

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

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。先生，請繼續。

Yes. Thank you, G.S. We appreciate everyone joining our call today. 2024 was a year of execution for ChipMOS. We were prudent in our CapEx. We invested in support of capacity required by our customers with a focus on supporting growth. This gave us flexibility in our capital allocation as we returned capital to shareholders through another dividend and recently announced a share repurchase program. Overall, we are pleased with our ability to navigate the industry headwinds that impacted all companies.

是的。謝謝，G.S. 我們感謝今天參加電話會議的各位。 2024年是南茂科技的執行年。我們對資本支出非常謹慎。我們投資於支援客戶所需的容量，重點是支援成長。這使我們資本配置更加靈活，因為我們透過另一次股息向股東返還資本，並且最近宣布了一項股票回購計劃。總體而言，我們很高興能夠應對影響所有公司的行業逆風。

In terms of Q4 and full-year highlights, our revenue for the full year 2024 increased 6.3% compared to 2023. Q4 revenue decreased 11% compared to Q3 2024. 2024 gross margin was down coming in 360 basis points lower compared to 2023 and 440 basis points lower compared to Q3 2024 due to lower UT level and lower OSAT subcon pricing.

從第四季和全年亮點來看，我們 2024 年全年營收較 2023 年成長 6.3%。與 2024 年第三季相比，第四季營收下降了 11%。由於 UT 水準較低且 OSAT 分包價格較低，2024 年毛利率下降，與 2023 年相比下降了 360 個基點，與 2024 年第三季相比下降了 440 個基點。

We achieved net earnings of TWD1.95 for 2024 for the full year 2024 and TWD0.32 in Q4 2024. In terms of the details, our overall utilization rate was 59% in Q4 2024 compared to 67% in Q3 2024. The assembly UT decreased to 54% in Q4, reflecting the continued impact of customer inventory adjustments.

2024年全年淨利1.95新台幣，2024年第四季實現淨利0.32新台幣。具體而言，2024 年第四季我們的整體利用率為 59%，而 2024 年第三季為 67%。第四季組裝UT下降至54%，反映出客戶庫存調整的持續影響。

Average test utilization was 61% and DDIC was 65%. Bumping UT level decreased to 54%. Regarding our manufacturing business, assembly represented 25.3% of Q4 revenue. Mixed signal and memory testing represented 22.3% and wafer bumping represented 22% of Q4 revenue. On a product basis, our DDIC product represented 31.3% of total revenue in Q4, with gold bumping representing about 19.6%.

平均測試利用率為 61%，DDIC 為 65%。碰撞 UT 水準下降至 54%。就我們的製造業務而言，組裝佔第四季營收的 25.3%。混合訊號和記憶體測試佔第四季營收的 22.3%，晶圓凸塊加工佔 22%。從產品角度來看，我們的 DDIC 產品佔第四季總收入的 31.3%，其中黃金增材製造約佔 19.6%。

Revenue from DRAM and SRAM represented 14.6% of total Q4 revenue. Our mixed signal products represented 10.4% of total Q4 revenue. As additional color on our business, our memory products represented 38.7% of total Q4 revenue. Memory product revenue decreased 6.2% compared to Q3 2024, and decreased slightly by 1.3% on a year-over-year basis.

DRAM 和 SRAM 的營收佔第四季總營收的 14.6%。我們的混合訊號產品佔第四季總營收的 10.4%。作為我們業務的補充，我們的記憶體產品佔第四季度總收入的 38.7%。記憶體產品收入與2024年第三季相比下降了6.2％，與去年同期相比略有下降1.3％。

DRAM revenue decreased 6.7% compared to Q3 2024. DRAM represented 14.1% of total Q4 revenue and decreased 15.9% on a year-over-year basis. Flash revenue represented about 24.1% of Q4 revenue, which was down 6.5% compared to Q3 2024 and was up 9.3% on a year-over-year basis.

與 2024 年第三季相比，DRAM 營收下降了 6.7%。DRAM 佔第四季總營收的 14.1%，年減 15.9%。Flash 營收約佔第四季營收的 24.1%，與 2024 年第三季相比下降 6.5%，年增 9.3%。

NOR Flash decreased 4.3% compared to Q3 2024, but increased significantly by 25% on a year-over-year basis. NAND Flash represented 30.3% of Q4 total flash revenue, decreased 6.2% compared to Q3 2024, reflecting the impact of the continued customer inventory adjustments.

NOR Flash較2024年第三季下降4.3%，但較去年同期大幅成長25%。NAND Flash 佔第四季度快閃記憶體總營收的 30.3%，與 2024 年第三季相比下降 6.2%，反映了持續的客戶庫存調整的影響。

Moving onto driver IC and gold bump revenue. This represented about 51% of total Q4 revenue. This was impacted by macro and demand softness and customers' seasonal inventory adjustments. Overall, this segment was down 15.6% compared to Q3 2024 and was lower by 12.8% on a year-over-year basis. Of note, gold bump revenue was down 15.6% compared to Q3 2024 and was up 2.1% on a year-over-year basis while DDIC revenue was also down 15.6% compared to Q3 2024.

轉向驅動 IC 和金凸塊收入。這約佔第四季總收入的 51%。這受到宏觀和需求疲軟以及客戶季節性庫存調整的影響。總體而言，該細分市場與 2024 年第三季相比下降了 15.6%，與去年同期相比下降了 12.8%。值得注意的是，黃金凸塊收入與 2024 年第三季相比下降了 15.6%，比去年同期成長了 2.1%，而 DDIC 營收與 2024 年第三季相比也下降了 15.6%。

Demand related to auto panels contributed about 30% of our Q4 DDIC revenue, which was slightly down about 0.9% compared to Q3, reflecting ongoing customer inventory rebalancing. Total auto panel revenue in 2024 increased 16.6% compared to 2023.

與汽車面板相關的需求貢獻了我們第四季度 DDIC 收入的約 30%，與第三季相比略有下降約 0.9%，反映了客戶庫存的持續重新平衡。2024年汽車面板總收入較2023年成長16.6%。

Regarding TDDI, benefited by rush orders in Q4, TDDI represented around 20.8% of Q4 DDIC revenue and decreased slightly by 0.8% compared to Q3 2024, while OLED declined to 23.5% of Q4 DDIC revenue. Impacted by seasonal destocking, it decreased 24.6% compared to Q3 2024. However, we benefited from a higher OLED penetration rate and share gain with OLED revenue increasing more than 27% for the full year 2024.

TDDI方面，受惠於第四季的緊急訂單，TDDI佔第四季DDIC營收的20.8%左右，與2024年第三季相比略有下降0.8%，而OLED則下降至第四季DDIC營收的23.5%。受季節性去庫存影響，較2024年第三季下降24.6%。然而，我們受益於更高的 OLED 滲透率和份額成長，2024 年全年 OLED 收入將成長超過 27%。

On an end-market basis, total revenue from automotive and industrial represented about 23.5% of Q4 revenue. This was slightly down 2.6% compared to Q3 2024. Smartphone revenue represented 37.2% of total Q4 revenue and was down 17.1% compared to Q3 2024. This reflects the industry-wide impact of softer end demand and seasonal destocking.

從終端市場來看，汽車和工業總收入約佔第四季營收的 23.5%。與 2024 年第三季相比，略有下降 2.6%。智慧型手機營收佔第四季總營收的 37.2%，與 2024 年第三季相比下降了 17.1%。這反映了終端需求疲軟和季節性去庫存對整個產業的影響。

Consumer-related revenue represented 20% of total Q4 revenue which was down 9.9% compared to Q3 2024. TV panel demand represented 14.9% of Q4 revenue, which was down 19.6% compared to Q3 2024, reflecting broader demand softness of large panels. Computing accounted for 4.4% of Q4 revenue. which was up 15% compared to Q3 2024.

消費者相關收入佔第四季總營收的 20%，與 2024 年第三季相比下降了 9.9%。電視面板需求佔第四季營收的 14.9%，與 2024 年第三季相比下降 19.6%，反映出大面板需求普遍疲軟。計算業務佔第四季營收的4.4%。與 2024 年第三季相比成長了 15%。

Now let me turn the call to Ms. Silvia Su to review the fourth-quarter and full-year 2024 financial results. Silvia, please go ahead.

現在，請 Silvia Su 女士回顧一下 2024 年第四季和全年的財務表現。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 an TWD32.79 against USD1 as of December 31, 2024. All the figures were prepared in accordance with Taiwan International Financial Reporting Standards.

謝謝你，S.J。我們簡報中引用的所有美元金額均為新台幣。以下數字是根據 2024 年 12 月 31 日 32.79 新台幣兌 1 美元的匯率。所有數據均依照台灣國際財務報告準則編製。

Referencing presentation page 12, consolidated operating results summary. For the fourth quarter of 2024, total revenue was TWD5,400 million. Net profit attributable to the company was TWD232 million in Q4. Net earnings for the fourth quarter of 2024 were TWD0.32 per basic common share or USD0.19 per basic ADS. EBITDA for Q4 was TWD1,388 million. EBITDA was calculated by adding depreciation and amortization together with operating profit. Return on equity in Q4 at 3.7%.

參考簡報第 12 頁，合併經營績效摘要。2024年第四季總營收為54億新台幣。第四季歸屬於該公司的淨利為2.32億新台幣。2024 年第四季淨收益為每股基本普通股 0.32 新台幣或每股基本 ADS 0.19 美元。第四季 EBITDA 為新台幣 13.88 億元。EBITDA 是透過將折舊和攤提加上營業利潤計算得出的。第四季股本回報率為 3.7%。

Referencing presentation page 13, consolidated statements of comprehensive income compared to Q3 2024. Total Q4 2024 revenue decreased 11% compared to Q3 2024. Q4 2024 gross profit was TWD515 million with gross margin at 9.5% compared to 13.9% in Q3 2024. This represents a decrease of 4.4 ppts. Our operating expenses in Q4 2024 were TWD432 million or 8% of total revenue, which decreased 3.8% compared to Q3 2024.

參考第 13 頁的簡報，與 2024 年第三季相比的綜合損益表。2024 年第四季總營收與 2024 年第三季相比下降了 11%。2024 年第四季毛利為 5.15 億新台幣，毛利率為 9.5%，而 2024 年第三季為 13.9%。這意味著下降了 4.4 個百分點。2024 年第四季度，我們的營業費用為 4.32 億新台幣，佔總營收的 8%，與 2024 年第三季相比下降了 3.8%。

Operating profit for Q4 2024 was TWD117 million with operating profit margin at 2.2%, which is about a 4.7 ppts decrease compared to Q3 2024. Net non-operating income in Q4 2024 was TWD155 million compared to net non-operating expenses of TWD65 million in Q3 2024. The difference is mainly due to the positive foreign exchange impact of a TWD210 million from the foreign exchange losses of TWD73 million in Q3 2024 to foreign exchange gains of TWD137 million in Q4 2024.

2024年第四季營業利潤為1.17億新台幣，營業利益率為2.2%，較2024年第三季下降約4.7個百分點。2024 年第四季淨營業外收入為 1.55 億新台幣，而 2024 年第三季淨營業外支出為 6,500 萬新台幣。差異主要由於2024年第三季外匯損失7,300萬新台幣至2024年第四季外匯收益1.37億新台幣，產生了2.1億新台幣的正外匯影響。

Profit attributable to the company in Q4 2024 decreased 22.4% compared to Q3 2024. The difference was mainly due to the decrease of operating profit of TWD304 million and partially offset by the increase of net non-operating income of TWD220 million and decrease of income tax expense of TWD17 million. Basic weighted average outstanding shares were 727 million shares compared to Q4 2023.

2024年第四季公司應占利潤較2024年第三季下降22.4%。差異主要由於營業利潤減少3.04億新台幣，部分被營業外淨利增加2.20億新台幣及所得稅費用減少1,700萬新台幣所抵銷。與 2023 年第四季相比，基本加權平均流通股數為 7.27 億股。

Total revenue for Q4 2024 decreased 5.7% compared to Q4 2023. Gross margin at 9.5% decreased 10.6 ppts compared to Q4 2023. Operating expenses decreased 3% compared to Q4 2023. Operating profit margin at 2.2% decreased 10.3 ppts compared to Q4 2023.

2024 年第四季總營收與 2023 年第四季相比下降了 5.7%。毛利率為 9.5%，較 2023 年第四季下降 10.6 個百分點。與 2023 年第四季相比，營運費用下降了 3%。營業利益率為 2.2%，較 2023 年第四季下降 10.3 個百分點。

Net non-operating income in Q4 2024 was TWD155 million compared to net non-operating expenses of TWD137 million in Q4 2023. The difference is mainly due to the positive foreign exchange impact of TWD332 million from the foreign exchange losses of TWD195 million in Q4 2023 to the foreign exchange gains of TWD137 million in Q4 2024 and the increase of interest income of TWD14 million and partially offset by the adverse impact of share of associates accounted for using equity method of TWD57 million from share of profit of associates accounted for using equity method of TWD56 million in Q4 2023 to share of loss of associates accounted for using equity method at TWD0.6 million in Q4 2024.

2024 年第四季淨營業外收入為 1.55 億新台幣，而 2023 年第四季淨營業外支出為 1.37 億新台幣。差異主要由於2023年第四季外匯損失1.95億新台幣至2024年第四季外匯收益1.37億新台幣，產生了3.32億新台幣的正向外匯影響，以及利息收入增加1,400萬新台幣，部分被2023年第四季權益法核算的聯營公司利潤5,600萬新台幣至2024年第四季權益法核算的聯營公司虧損60萬新台幣產生的權益法核算的聯營公司虧損5,700萬新台幣的不利影響所抵銷。

Profit attributable to the company decreased 51.8% compared to Q4 2023. The difference is mainly due to a decreased operating profit of TWD598 million and partially offset by the increase of net non-operating income of TWD292 million and decrease of income tax expense of TWD56 million.

歸屬於公司的利潤與2023年第四季相比下降了51.8%。差異主要由於營業利潤減少5.98億新台幣，部分被營業外淨利增加2.92億新台幣及所得稅費用減少5,600萬新台幣所抵銷。

Referencing presentation page 14, consolidated statements of comprehensive income. Compared to last year, total revenue for 2024 was TWD22,696 million, which increased 6.3% compared to 2023. Gross margin at 13% decreased 3.6 ppts compared to 2023.

參考第 14 頁的簡報，合併綜合損益表。與去年相比，2024年總營收為新台幣226.96億元，較2023年增加6.3%。毛利率為13%，較2023年下降3.6個百分點。

Our operating expenses in 2024 were TWD1,770 million which increased 2.5% compared to 2023. Operating profit margin in 2024 was 5.6%, a decrease of 3.3 ppts compared to 2023. Net non-operating income in 2024 was TWD373 million, which increased 3.7% compared to 2023. Net profit in 2020 was TWD1,420 million, which decreased 25% compared to 2023, the difference due to a decreased operating profit of TWD635 million and partially offset by lower income tax expense of TWD148 million and increased net non-operating income of TWD13 million. Net earnings for the full year 2024 were at TWD1.95 per basic common share compared to TWD2.60 per basic common share for the full year 2023.

2024 年我們的營業費用為 17.7 億新台幣，較 2023 年增加 2.5%。2024年營業利益率為5.6%，較2023年下降3.3個百分點。2024年營業外淨利為3.73億新台幣，較2023年增加3.7%。2020年淨利為14.2億新台幣，較2023年減少25%，差額是由於營業利潤減少6.35億新台幣，但部分被所得稅費用減少1.48億新台幣及營業外淨收入增加1,300萬新台幣所抵銷。2024 年全年淨收益為每股基本普通股 1.95 新台幣，而 2023 年全年淨收益為每股基本普通股 2.60 新台幣。

Referencing presentation page 15, consolidated statements of financial position and key indices. Total assets at the end of Q4 2024 were TWD45,380 million. Total liabilities at the end of Q4 2024 for were TWD20,306 million. Total equity at the end of Q4 2024 was TWD25,074 million. Accounts receivable turnover days in Q4 2024 were 88 days. Inventory turnover days was 51 days in Q4 2024.

參考第 15 頁的簡報、合併財務狀況表和關鍵指標。2024年第四季末總資產為453.8億新台幣。2024年第四季末的總負債為203.06億新台幣。2024年第四季末的總權益為新台幣250.74億元。2024年第四季應收帳款週轉天數為88天。2024年第四季庫存週轉天數為51天。

Referencing presentation page 16, consolidated statements of cash flows. As of December 31, 2024, our balance of cash and cash equivalents was TWD15,219 million, which represents an increase of TWD2,865 million compared to the beginning of the year. Net free cash outflow for the full year 2024 was TWD938 million compared to net free cash inflow of TWD1,339 million for the full year 2023.

參考第 16 頁的演示文稿，合併現金流量表。截至2024年12月31日，公司現金及現金等價物餘額為152.19億新台幣，較年初增加28.65億新台幣。2024 年全年淨自由現金流出 9.38 億新台幣，而 2023 年全年淨自由現金流入為 13.39 億新台幣。

The difference was mainly due to TWD2,223 million CapEx increase. 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. 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.

差異主要由於資本支出增加22.23億新台幣。我們繼續平衡我們的資本配置策略，投資於能夠推動我們成功的長期產能和創收領域，同時透過分配股利為股東帶來價值。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，然後從總額中減去資本支出、利息支出、所得稅支出和股息。

Referencing presentation page 17, capital expenditures and depreciation. We invested TWD1,872 million in CapEx in Q4 and TWD5,451 million in CapEx in 2024. The breakdown of CapEx in Q4 was 12% for bumping, 32.8% for LCD driver, 23.5% for assembly, and 31.7% for testing. Depreciation expenses were TWD1,271 million in Q4.

參考第 17 頁的演示文稿，資本支出和折舊。我們在第四季度投資了 18.72 億新台幣的資本支出，並在 2024 年投資了 54.51 億新台幣的資本支出。第四季的資本支出細分為：凸塊製造12%、LCD驅動器32.8%、組裝23.5%、測試31.7%。第四季折舊費用為12.71億新台幣。

Depreciation expenses were TWD4,856 million in 2024. As of January 31, 2025, the company's outstanding ADS number was approximately 3.7 million units, which represents around 10.1% of the company's outstanding common shares. That concludes the financial review.

2024年度折舊費用為新台幣48.56億元。截至2025年1月31日，本公司已發行ADS數量約370萬股，約占公司已發行普通股的10.1%。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. Please go ahead, sir.

我現在將電話轉回給我們的主席 S.J. 先生。程先生，請為我們提出展望。先生，請繼續。

Thank you, Silvia. 2025 started out positively for us. We ended Q4 on a strong note and have a strong balance sheet. We are seeing some signs of improvement, but remain cautious.

謝謝你，西爾維亞。 2025 年對我們來說是一個積極的開始。我們以強勁的業績結束了第四季度，並擁有強勁的資產負債表。我們看到了一些改善的跡象，但仍然保持謹慎。

Our team has managed through industry volatility before. We are in close talks with our customers and being careful with our CapEx budget.

我們的團隊以前曾經歷過行業波動。我們正在與客戶密切溝通，並謹慎對待我們的資本支出預算。

We have heard different views this earnings season from companies. Some are more positive than others. For us, we are in the middle. There are new uncertainties around the global economic situation and potential impact from tariffs and new government policies. This is not new, and we are confident in our business outlook.

我們在這個財報季聽到了來自各公司的不同觀點。有些人比其他人更積極。對我們來說，我們處於中間。全球經濟情勢出現新的不確定性，關稅和新政府政策也可能產生影響。這並不是什麼新鮮事，我們對我們的業務前景充滿信心。

Based on what we are hearing from customers and companies in the industry, we expect normal Q1 seasonality from fewer working days in the Lunar New Year. We also expect a small correction as customers continue to adjust inventory levels to target levels. At the same time, we are seeing some positive impact from short-term rush orders. We believe this is from customers trying to secure needed inventory in advance of new tariffs. Strategically, improving our utilization rate will be priority.

根據我們從客戶和業內公司獲得的信息，由於農曆新年的工作日較少，我們預計第一季的季節性將正常。隨著客戶繼續將庫存水準調整至目標水平，我們也預期會出現小幅調整。同時，我們看到短期緊急訂單的一些正面影響。我們相信這是因為客戶試圖在新關稅實施前確保所需的庫存。從策略上來說，提高我們的利用率是首要任務。

In our memory product business, a little correction is expected in the first quarter due to softer demand and seasonal inventory adjustments by customers, which would impact the UT level of related product. However, we are seeing signs of rebounding of NAND flash and niche DRAM demand in Q1.

在我們的記憶體產品業務中，由於需求疲軟和客戶季節性庫存調整，預計第一季將出現小幅調整，這將影響相關產品的 UT 水準。然而，我們看到第一季 NAND 快閃記憶體和利基 DRAM 需求反彈的跡象。

In our DDIC product, despite the improving UT level of TV and smartphone products, we are still impacted by softness in end-product demand. However, we are benefiting some short rush order drove by early restocking for increased tariffs and China subsidy programs and stimulus policy. Therefore, we expect our DDIC product momentum to be impacted less than our memory product momentum.

在我們的DDIC產品中，儘管電視和智慧型手機產品的UT水平有所提高，但我們仍然受到最終產品需求疲軟的影響。然而，由於關稅上調、中國補貼計劃和刺激政策的提前補貨，我們受益於一些短期緊急訂單。因此，我們預計我們的 DDIC 產品動能受到的影響將小於我們的記憶體產品動能。

Regarding our 2025 CapEx, we are taking a conservative approach with our CapEx budget in 2025, similar to prior years. We plan to carefully invest in new added capacity based on customer demand and UT level. Our focus is on supporting customers as we drive strong free cash flow while reducing the further depreciation pressure and maintain our competitive advantage and strength.

關於我們的 2025 年資本支出，我們對 2025 年的資本支出預算採取保守態度，與前幾年類似。我們計劃根據客戶需求和 UT 等級謹慎投資新增產能。我們的重點是支持客戶，因為我們推動強勁的自由現金流，同時減少進一步的折舊壓力並保持我們的競爭優勢和實力。

Finally, in terms of our capital allocation, we recently announced Board approval of a share repurchase program and another dividend. This reflects our balance sheet strength, strong market position, and our focus on building shareholder value. We prioritize returning capital to shareholders as part of our overall shareholder friendly capital allocation plan. Pending shareholder approval at our May AGM, we will distribute TWD1.2 per common share.

最後，就我們的資本配置而言，我們最近宣布董事會批准了一項股票回購計畫和另一項股利。這反映了我們的資產負債表實力、強大的市場地位以及我們對創造股東價值的關注。作為我們整體股東友善資本配置計畫的一部分，我們優先考慮向股東返還資本。等待 5 月年度股東大會的批准，我們將每股普通股派發 1.2 新台幣。

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

接線員，我們的正式發言到此結束。現在我們可以回答問題了。

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

謝謝。這次我們將進行問答環節。

James Li, Yuanta.

元大金融的李先生。

Can you please give us a revenue and gross margin outlook for Q1 2025?

您能否向我們介紹一下 2025 年第一季的營收和毛利率前景？

We didn't provide 1Q '25 outlook guidance. We will probably wait until 2Q or 3Q to have better visibility. However, we expect our business momentum will improve through 2025, leading to a stronger second half with operating momentum, end markets, and end-customer inventory levels.

我們沒有提供 25 年第一季的展望指引。我們可能要等到第二季或第三季才能有更好的了解。不過，我們預計到 2025 年我們的業務動能將會改善，使下半年的營運動能、終端市場和終端客戶庫存水準更加強勁。

Previously, management mentioned relatively stronger automotive panel and OLED, DDIC business momentum. Can you please give us the outlook for 2025?

此前，管理層曾提到汽車面板和OLED、DDIC業務動能相對較強。能為我們介紹一下 2025 年的展望嗎？

We would still expect to benefit from a higher OLED penetration rate and share gain and also stable display panel penetration in the automotive segment.

我們仍然預計將受益於更高的 OLED 滲透率和份額增長以及汽車領域穩定的顯示面板滲透率。

Do you see some customers reallocate the backend order back to Taiwan due to some foundries in China increasing prices recently?

您是否看到一些客戶因為最近中國一些代工廠提高價格而將後端訂單重新分配回台灣？

Recently, we are benefiting from some short-term rush orders driven by early restocking for increased tariffs and China's subsidy programs and stimulus policy. Additionally, due to the earthquake that happened in January, which caused broken wafers in fabs, we would expect the reloaded wafers would be dispatched to the back end in April.

最近，我們受益於一些短期緊急訂單，這些訂單是由於關稅上調以及中國的補貼計劃和刺激政策而提前補貨所致。此外，由於一月發生的地震導致晶圓廠的晶圓破裂，我們預計重新裝載的晶圓將於四月派送至後端。

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

謝謝。並且我不會在隊列中顯示任何其他問題。我想將電話轉回給 G.S. Shen。

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。我現在把發言權交還給 S.J. 先生。程先生有任何結束語。

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。如果您還有其他問題，請發送電子郵件給我們的 IR 團隊。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。