ChipMOS Technologies Inc (IMOS) 2025 Q2 法說會逐字稿

Greetings, and welcome to the ChipMOS Second Quarter 2025 Results Conference Call. (Operator Instructions)

您好，歡迎參加 ChipMOS 2025 年第二季業績電話會議。（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 G.S. Shen 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 Second Quarter 2025 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 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.

謝謝您，接線生。歡迎大家參加南茂科技 2025 年第二季業績電話會議。今天與我們一同出席的公司有董事長兼總裁程紹江先生和財務與會計管理中心副總裁蘇女士。我們今天的電話會議也邀請了發言人兼策略與投資者關係資深副總裁 Jesse Huang 先生參加。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 審查公司主要財務業績後，S.J 將提供我們目前的業務展望。隨後，所有公司高層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. 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簡報的第二頁和我們發布的結果新聞稿中被列為安全港通知。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鄭紹基先生。先生，請繼續。

Yes. Thank you, G.S. We appreciate everyone joining our call today. Second quarter results came in as expected with strong memory product demand offsetting macro softness in auto and industrial and the higher NTD headwind. We continue to leverage our leadership position as we build long-term value for shareholders, and we will remain conservative in our CapEx spending as we keep our balance sheet strong. We are prioritizing supporting our customers, increasing market share, expanding profitability and building shareholder value.

是的。謝謝，G.S. 我們感謝今天參加電話會議的各位。第二季業績符合預期，強勁的記憶體產品需求抵消了汽車和工業領域的宏觀疲軟以及新台幣上漲的不利因素。我們將繼續利用我們的領導地位為股東創造長期價值，同時我們將在資本支出方面保持保守，以保持我們的資產負債表強勁。我們優先支持客戶、增加市場佔有率、擴大獲利能力和創造股東價值。

In terms of Q2 highlights, our revenue increased 3.7% compared to Q1. Q2 gross margin was 6.6%, which decreased 280 basis points compared to Q1. Q2 net losses were TWD0.75 per share due to higher foreign exchange loss of approximately TWD0.97 per share. In terms of the details, our overall utilization rate was 65% in Q2 with an improvement in memory products. The assembly UT was up to 64% and the average test utilization was also up to 67% in Q2. Regarding DDIC was 66% and bumping was 63%. Regarding our manufacturing business, assembly represented 27.9% of Q2 revenue led by a recovery in our memory products.

從第二季的亮點來看，我們的營收較第一季成長了3.7%。第二季毛利率為6.6%，較第一季下降280個基點。第二季淨虧損為每股0.75新台幣，原因是外匯損失增加約每股0.97新台幣。具體來說，我們第二季的整體利用率為65%，記憶體產品有所改善。第二季組裝UT高達64%，平均測試利用率也高達67%。其中DDIC為66%，bumping為63%。就我們的製造業務而言，由於記憶體產品的復甦，組裝業務佔第二季收入的 27.9%。

Mixed signal and memory testing represented 23.9% and wafer bumping represented 23.2% of Q2 revenue. On a product basis, our DDIC product represented 23.5% of total revenue in Q2, with gold bumping representing about 21.2% of Q2 revenue. Revenue from DRAM and SRAM represented 16.3% of Q2 revenue. Our mixed signal products represented 10% of Q2 revenue. As additional color, our memory products represented 45.3% of Q2 revenue. Memory product revenue increased 21.2% compared to Q1 and increased 17.6% on a year-over-year basis. This benefited from pricing and volume. DRAM represented 15.7% of Q2 revenue and significantly increased 19.8% compared to Q1. Niche DRAM also significantly increased 29.3% compared to Q1. Flash revenue represented about 29% of Q2 revenue, which was up 21.7% compared to Q1 and was up 23.1% on a year-over-year basis.

混合訊號和記憶體測試佔第二季營收的 23.9%，晶圓凸塊加工佔 23.2%。從產品角度來看，我們的 DDIC 產品佔第二季總收入的 23.5%，其中金礦開採約佔第二季營收的 21.2%。DRAM 和 SRAM 的營收佔第二季營收的 16.3%。我們的混合訊號產品佔第二季營收的 10%。另外，我們的記憶體產品佔第二季營收的 45.3%。記憶體產品營收較第一季成長21.2%，較去年同期成長17.6%。這得歸功於定價和數量。DRAM佔第二季營收的15.7%，與第一季相比大幅成長19.8%。與第一季相比，利基 DRAM 也大幅成長了 29.3%。Flash營收約佔第二季營收的29%，較第一季成長21.7%，比去年同期成長23.1%。

NAND Flash represented 39.6% of our Q2 Flash revenue. This is up 27.6% compared to Q1 and significantly increased around 40% on a year-over-year basis. NOR Flash increased 25.3% compared to Q1 and increased 21.2% on a year-over-year basis.

NAND Flash 占我們第二季快閃記憶體營收的 39.6%。與第一季相比成長了 27.6%，與去年同期相比大幅成長了 40% 左右。NOR Flash較Q1增加25.3%，較去年同期增加21.2%。

Moving on to Driver IC and Gold Bump revenue. This represented about 44.7% of Q2 revenue. Headwinds included ASP and foreign exchange with revenue down 9.4% compared to Q1 and down 17.9% on a year-over-year basis. Of note, Gold Bump revenue decreased 7.6% compared to Q1 and was up 11% on a year-over-year basis. Our DDIC revenue was down 10.9% compared to Q1. Demand related to auto panels contributed more than 32% of our Q2 DDIC revenue, which down about 13.9% compared to Q1. Regarding OLED, this represented about 24.5% of our Q2 DDIC revenue and decreased 14.7% compared to Q1. On an end market basis, total revenue from automotive and industrial represented about 25.9% of Q2 revenue. This was about 1% lower than Q1.

繼續討論驅動 IC 和 Gold Bump 收入。這約佔第二季營收的 44.7%。不利因素包括平均售價和外匯，營收較第一季下降 9.4%，較去年同期下降 17.9%。值得注意的是，Gold Bump 的營收與第一季相比下降了 7.6%，但與去年同期相比成長了 11%。我們的 DDIC 收入與第一季相比下降了 10.9%。汽車面板相關需求貢獻了我們第二季DDIC營收的32%以上，與第一季相比下降了約13.9%。就OLED而言，這約占我們第二季DDIC營收的24.5％，與第一季相比下降了14.7％。從終端市場來看，汽車和工業總收入約佔第二季營收的 25.9%。這比第一季低約 1%。

Smartphone revenue represented 37.4% of Q2 revenue and was up 7.3% compared to Q1. TV panel demand represented 11.8% of Q2 revenue, which was down 13.8% compared to Q1. Consumer-related revenue represented 20.8% and computing accounted for 4.1% of Q2 revenue, respectively.

智慧型手機營收佔第二季營收的37.4%，較第一季成長7.3%。電視面板需求佔第二季營收的11.8%，與第一季相比下降了13.8%。消費者相關收入佔第二季營收的 20.8%，計算收入佔 4.1%。

Now let me turn the call to Ms. Silvia Su to review the second quarter 2025 financial results. Silvia, please go ahead.

現在，請容許我請 Silvia Su 女士回顧 2025 年第二季的財務表現。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 TWD29.18 against USD1 as of June 30, 2025. All the figures were prepared in accordance with Taiwan International Financial Reporting Standards. Referencing presentation, page 12, consolidated operating results summary. For the second quarter of 2025, total revenue was TWD5,736 million. Net loss attributable to the company was TWD533 million in Q2. Net losses for the second quarter of 2025 were TWD0.75 per basic common share or USD0.51 per basic ADS. EBITDA for Q2 was TWD1,302 million. EBITDA was calculated by adding depreciation and amortization together with operating profit. Return on equity in Q2 was minus 8.8%.

謝謝，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 2025 年 6 月 30 日 29.18 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。參考簡報第 12 頁，合併經營績效摘要。2025年第二季總營收為57.36億新台幣。第二季公司淨虧損為5.33億新台幣。2025 年第二季淨虧損為每股基本普通股 0.75 新台幣或每股基本 ADS 0.51 美元。第二季EBITDA為13.02億新台幣。EBITDA 是透過將折舊和攤提加上營業利潤計算得出的。第二季的股本回報率為-8.8%。

Referencing presentation, page 13, consolidated statements of comprehensive income. Compared to Q1 2025, total Q2 2025 revenue increased 3.7% compared to Q1 2025. Q2 2025 gross profit was TWD379 million with gross margin at 6.6% compared to 9.4% in Q1 2025. Our operating expenses in Q2 2025 were TWD424 million or 7.4% of total revenue, which increased 3.2% compared to Q1 2025. Operating profit for Q2 2025 was TWD21 million, with operating profit margin at 0.4% compared to 2.1% in Q1 2025. Net nonoperating expenses in Q2 2025 was TWD682 million compared to net nonoperating income in Q1 2025 was TWD82 million. The difference is mainly foreign exchange, which went from a gain of TWD62 million in Q1 2025 to a loss of TWD690 million in Q2 2025. We expect this to have less of an impact in Q3.

參考第 13 頁的簡報，綜合損益表。與 2025 年第一季相比，2025 年第二季總營收成長了 3.7%。2025 年第二季毛利為 3.79 億新台幣，毛利率為 6.6%，而 2025 年第一季為 9.4%。2025 年第二季度，我們的營業費用為 4.24 億新台幣，佔總營收的 7.4%，與 2025 年第一季相比成長了 3.2%。2025年第二季營業利潤為2,100萬新台幣，營業利益率為0.4%，而2025年第一季為2.1%。2025 年第二季淨營業外支出為 6.82 億新台幣，而 2025 年第一季淨營業外收入為 8,200 萬新台幣。差異主要在於外匯，從2025年第一季的6,200萬新台幣收益變為2025年第二季的6.9億新台幣損失。我們預計這對第三季的影響較小。

Loss attributable to the company in Q2 2025 was TWD533 million compared to profit attributable to the company in Q1 2025 was TWD176 million. The difference is mainly due to an increase of net nonoperating expenses of TWD764 million and a decrease of operating profit of TWD95 million, which was offset by the income tax change of TWD150 million from the income tax expense of TWD22 million in Q1 2025 to income tax benefit of TWD128 million in Q2 2025. Basic weighted average outstanding shares were 715 million shares. Compared to Q2 2024, total revenue for Q2 2025 decreased 1.3% compared to Q2 2024. Gross margin at 6.6% decreased 7.4 ppts compared to Q2 2024.

2025年第二季公司應佔虧損為5.33億新台幣，而2025年第一季公司應占利潤為1.76億新台幣。差異主要由於營業外淨支出增加7.64億新台幣及營業利潤減少9,500萬新台幣，但被所得稅變動1.50億新台幣所抵銷，所得稅變動由2025年第一季度的2,200萬新台幣所得稅支出，變更為2025年第二季的1.28億收入。基本加權平均流通股數為7.15億股。與 2024 年第二季相比，2025 年第二季的總營收較 2024 年第二季下降了 1.3%。毛利率為 6.6%，較 2024 年第二季下降 7.4 個百分點。

Operating expenses decreased 7.8% compared to Q2 2024. Operating profit margin at 0.4%, decreased 6.0 ppts compared to Q2 2024. Net nonoperating expense in Q2 2025 was TWD682 million compared to net nonoperating income in Q2 2024 was TWD128 million. The difference is mainly due to the negative impact on the foreign exchange of TWD715 million from the foreign exchange gains of TWD25 million in Q2 2024 to the foreign exchange losses of TWD690 million in Q2 2025 and the gain on disposal of noncurrent assets held for sale of TWD72 million in Q2 2024.

與 2024 年第二季相比，營運費用下降了 7.8%。營業利益率為 0.4%，較 2024 年第二季下降 6.0 個百分點。2025 年第二季淨營業外支出為 6.82 億新台幣，而 2024 年第二季淨營業外收入為 1.28 億新台幣。差異主要由於2024年第二季外匯收益2,500萬新台幣對2025年第二季外匯損失6.90億新台幣產生7.15億新台幣的負面影響，以及2024年第二季持有待售非流動資產處置收益7,200萬新台幣。

Loss attributable to the company in Q2 2025 was TWD533 million compared to profit attributable to the company in Q2 2024 was TWD451 million. The difference is mainly due to an increase of net nonoperating expense of TWD810 million and the decrease of operating profit of TWD353 million, which was offset by the income tax change of TWD179 million from the income tax expense of TWD51 million in Q2 2024 to income tax benefit of TWD128 million in Q2 2025.

2025 年第二季公司應佔虧損為 5.33 億新台幣，而 2024 年第二季公司應占利潤為 4.51 億新台幣。差異主要由於營業外淨支出增加8.1億新台幣及營業利潤減少3.53億新台幣，但被所得稅變動1.79億新台幣所抵銷，所得稅變動由2024年第二季的所得稅支出5100萬新台幣變更為2025年第二季的所得

Referencing presentation, page 14, consolidated statements of financial position and key indices. Total assets at the end of Q2 2025 were TWD43,521 million. Total liabilities at the end of Q2 2025 were TWD20,265 million. Total equity at the end of Q2 2025 was TWD23,256 million. Accounts receivable turnover days in Q2 2025 were 87 days. Inventory turnover days was 50 days in Q2 2025.

參考第 14 頁的簡報，合併財務狀況表和關鍵指標。2025年第二季末總資產為435.21億新台幣。2025年第二季末總負債為202.65億新台幣。2025年第二季末的總權益為新台幣232.56億元。2025年第二季應收帳款週轉天數為87天。2025年第二季庫存週轉天數為50天。

Referencing presentation, page 15, consolidated statements of cash flows. As of June 30, 2025, our balance of cash and cash equivalents was TWD13,662 million, which represents a decrease of TWD1,557 million compared to the beginning of the year. Net free cash inflow for the first half of 2025 was TWD1,667 million compared to TWD1,433 million for the same period in 2024. The difference is mainly due to the decrease of CapEx of TWD332 million, the income tax change of TWD238 million from the income tax expense of TWD132 million in the first half of 2024 to income tax benefit of TWD106 million in the first half of 2025. The increase of the depreciation expenses of TWD224 million and partially offset by the decrease of operating profit of TWD600 million.

參考第 15 頁的演示文稿，合併現金流量表。截至2025年6月30日，本公司現金及現金等價物餘額為136.62億新台幣，較年初減少15.57億新台幣。2025 年上半年淨自由現金流入為 16.67 億新台幣，而 2024 年同期為 14.33 億新台幣。差異主要由於資本支出減少3.32億新台幣，所得稅變動2.38億新台幣，由2024年上半年所得稅費用1.32億新台幣變更為2025年上半年所得稅收益1.06億新台幣。折舊費用增加2.24億新台幣，部分被營業利潤減少6億新台幣抵銷。

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.

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 16, capital expenditures and depreciation. We invested TWD589 million in CapEx in Q2. The breakdown of CapEx in Q2 was 20.1% for Bumping, 31.6% for LCD driver, 20.1% for assembly and 28.2% for testing. Depreciation expenses were TWD1,281 million in Q2. As of July 31, 2025, the company's outstanding ADS number was approximately 3.6 million units, which represents around 10.1% of the company's issued common shares.

參考第 16 頁的演示文稿，資本支出和折舊。我們在第二季投資了 5.89 億新台幣的資本支出。第二季的資本支出細分為：Bumping 20.1%、LCD 硬碟 31.6%、組裝 20.1% 和測試 28.2%。第二季折舊費用為12.81億新台幣。截至2025年7月31日，本公司已發行ADS數量約360萬股，約占公司已發行普通股的10.1%。

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鄭紹基先生，請他介紹我們的展望。先生，請繼續。

Thank you, Silvia. As we look ahead to Q3, we expect cautious end consumer demand given the global economic uncertainty and the early restocking of some consumer products in first half. However, we are encouraged by the strong demand from data center and communications, AI-enhanced products, auto and robotics. We expect this to increasingly benefit our business in the second half of the year and beyond. We also expect to benefit from solid memory product momentum in the second half of the year. There is a DDR4 and MLC NAND supply and demand imbalance led by DDR4 and MLC NAND EOL that will benefit our business. In addition, the solid DRAM and NAND products momentum growth is expected to help improve related UT levels of assembly and test. ROM momentum is also expected to improve in Q3, led by seasonal restocking. Therefore, we expect memory momentum will be better than DDIC in Q3.

謝謝你，西爾維亞。展望第三季度，鑑於全球經濟的不確定性以及上半年部分消費品的早期補貨，我們預計終端消費者需求將保持謹慎。然而，資料中心和通訊、人工智慧增強產品、汽車和機器人的強勁需求令我們感到鼓舞。我們預計這將使我們今年下半年及以後的業務更加受益。我們也預計今年下半年將受益於強勁的記憶體產品動能。DDR4 和 MLC NAND EOL 導致 DDR4 和 MLC NAND 供需失衡，這將有利於我們的業務。此外，DRAM和NAND產品強勁的成長勢頭有望幫助提高相關組裝和測試的UT水平。在季節性補貨的帶動下，ROM 勢頭預計在第三季也將改善。因此，我們預計第三季記憶體勢頭將優於DDIC。

In the meantime, we expect memory products OSAT price increases could help offset material cost increases and improve profitability. In our DDIC product business, we expect demand weakness to remain in Q3 with DDIC products still soft. However, OLED products momentum is expected to benefit from seasonal restocking in Q3. Meanwhile, automotive panel momentum is relatively stable compared to other DDIC products. We are positive about this business over the long term, but understand this is a fluid environment. Regarding our 2025 CapEx, we continue to shift our product mix into higher growth, higher-margin product areas. We are taking a conservative approach with our CapEx budget in 2025, similar to prior years. Our targeted CapEx investments will be in support of growth areas of our business and to reduce depreciation pressure.

同時，我們預期記憶體產品 OSAT 價格上漲可能有助於抵消材料成本上漲並提高獲利能力。在我們的 DDIC 產品業務中，我們預計第三季需求仍將疲軟，DDIC 產品仍將疲軟。不過，OLED產品動能預計將受惠於第三季的季節性補貨。同時，與其他DDIC產品相比，汽車面板的動力相對穩定。我們對這項業務的長期前景持樂觀態度，但也明白這是一個不穩定的環境。關於我們的 2025 年資本支出，我們將繼續把產品組合轉向成長更快、利潤更高的產品領域。與前幾年一樣，我們對 2025 年的資本支出預算採取了保守的態度。我們的目標資本支出將用於支持我們業務的成長領域並減少折舊壓力。

Our strategy is not only expand in these higher-growth, higher-margin areas, but to also benefit from continued cost reductions, quality improvement and operating strength actions to improve profit and maintain business growth momentum and competition advantage. Finally, as we remain focused on building value for shareholders, we just distributed our latest dividend to shareholders in July. This has been part of our overall capital allocation strategy along with share repurchases, CapEx investments and other levers. And we will execute the related capital allocation programs to improve shareholders' equity based on the global economic environment and industrial situation. These programs will be executed after Board approval.

我們的策略不僅是在這些高成長、高利潤的領域擴張，還要透過持續降低成本、提高品質和增強營運實力來提高利潤並維持業務成長動能和競爭優勢。最後，由於我們仍然專注於為股東創造價值，我們剛剛在 7 月向股東派發了最新一輪股息。這是我們整體資本配置策略的一部分，包括股票回購、資本支出投資和其他槓桿。並根據全球經濟環境及產業狀況，實施相關資本配置計劃，以提高股東權益。這些計劃將在董事會批准後執行。

To summarize for you, we continue to leverage our leadership position in memory as we build long-term value for shareholders. Our balance sheet remains strong and is a competitive advantage for us. This gives us added flexibility to support our customers and our long-term growth strategy as we move through the near-term conservatism and uncertainty. We are taking a measured approach during this uncertain time, and we remain cautious in our CapEx spending. We will continue to prioritize supporting our customers, increasing market share, expanding profitability and building shareholder value.

總而言之，我們將繼續利用我們在記憶體領域的領導地位，為股東創造長期價值。我們的資產負債表依然強勁，這是我們的競爭優勢。這為我們在克服短期保守和不確定性的同時，提供了更大的靈活性來支持我們的客戶和我們的長期成長策略。在這個不確定的時期，我們採取了審慎的態度，在資本支出方面保持謹慎。我們將繼續優先支持我們的客戶、增加市場份額、擴大獲利能力和創造股東價值。

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。

(Operator Instructions) Michael Hsu, Yuanta.

(操作員指示) 元大銀行 Michael Hsu。

Can you give us more color about the outlook by product for the second half of 2025?

能否為我們詳細介紹一下 2025 年下半年的產品前景？

As we look ahead to Q3, we expect to benefit from solid memory product momentum in the second half of the year. There is a DDR4 supply and demand imbalance led by DDR4 EOL and strong DDR5 demand that both will benefit our business. To reflect material cost and gold price increases, we also increased memory products OSAT prices in Q3 and expect it could help offset material cost increases and improve profitability. Therefore, we expect memory momentum will be better than DDIC in Q3. As for DDIC, OLED products momentum is expected to benefit from seasonal restocking in Q3. Meanwhile, automotive panel momentum is relatively stable compared to other DDIC products. Lastly, our logic and mixed signal product line should remain stable.

展望第三季度，我們預計下半年將受益於強勁的記憶體產品動能。DDR4 供需失衡，主要由於 DDR4 EOL 和強勁的 DDR5 需求，這兩者都將有利於我們的業務。為了反映材料成本和金價上漲，我們還在第三季度提高了記憶體產品 OSAT 價格，預計這可以幫助抵消材料成本上漲並提高獲利能力。因此，我們預計第三季記憶體勢頭將優於DDIC。至於DDIC，OLED產品勢頭預計將受益於第三季的季節性補貨。同時，與其他DDIC產品相比，汽車面板的動力相對穩定。最後，我們的邏輯和混合訊號產品線應該保持穩定。

Please give us more color to separate the impact on lower Q2 gross margin from DDIC ASP cut and NTD appreciation. Will those conditions continue into Q3?

請給我們更多細節來區分DDIC ASP削減和NTD升值對第二季毛利率下降的影響。這些情況會持續到第三季嗎？

In Q2, gross margin was impacted by lower DDIC test ASP and USD depreciation. Meanwhile, the electricity charge increased TWD102 million due to the higher summer electricity rate charge since May 16. The other factor was materials with the cost of gold increasing more than 30% compared to 2Q '24. Regarding EPS, Silvia, please answer that question.

第二季度，毛利率受到 DDIC 測試 ASP 下降和美元貶值的影響。另外，因5月16日起實施夏季電費調漲政策，電費也增加1.02億新台幣。另一個因素是材料，與 2024 年第二季相比，黃金成本上漲了 30% 以上。關於 EPS，Silvia，請回答這個問題。

More on your question for the impact to gross margin from foreign exchange rate and electricity. Gross margin decreased about 1.5 ppts due to NTD appreciation and decreased about 1.6 ppts due to higher electricity charges, which increased TWD102 million due to the higher summer electricity rate. As for EPS, the major factor is the lower gross margin, including ASP cut and higher costs like electricity and separately, the higher foreign exchange loss of TWD690 million.

關於匯率和電力對毛利率的影響的問題，請再討論一次。毛利率因新台幣升值而減少約1.5個百分點，因電費上漲而減少約1.6個百分點，其中因夏季電價上漲而增加新台幣1.02億元。至於每股收益，主要因素是毛利率較低，包括平均售價下調和電力等成本上升，另外還有6.9億新台幣的外匯損失增加。

Will those conditions continue into Q3?

這些情況會持續到第三季嗎？

We are increasing memory products OSAT prices in Q3 about 5% to 18% and expect it can help offset material cost increases from substrate and gold prices in order to improve profitability. Meanwhile, we expect the foreign exchange rate will be more favorable to our operations. Further, OLED product momentum is expected to be better. July revenue was announced and August revenue is on track. So even though there is still a lot of uncertainty, we are still optimistic entering Q3.

我們將在第三季將記憶體產品 OSAT 價格提高約 5% 至 18%，並預計這可以幫助抵消基板和黃金價格的材料成本上漲，從而提高獲利能力。同時，我們預期外匯匯率將更加有利於我們的營運。此外，OLED產品勢頭預計會更好。七月收入已經公佈，八月收入情況正常。因此，儘管仍有許多不確定性，但我們對第三季仍然持樂觀態度。

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。

Thank you, operator. I will read one last question from foreign institutional investors. The question is, are you making a change to your dividend policy for 2026? Will you pay a dividend next year?

謝謝您，接線生。我讀最後一個來自外國機構投資者的問題。問題是，您是否會改變 2026 年的股利政策？明年你會派發股息嗎？

We just distributed our latest dividend to shareholders in July. This has been part of our overall capital allocation strategy along with share repurchases, CapEx investments and other levers. Although the company faced headwinds in the first half of the year, along with the broader industry, our focus and operational strength have put us in a great position with accumulated unappropriated retained earnings, which are sufficient to support a stable dividend payout. We do not expect any change in our policy, but our management and Board review the overall capital allocation strategy on a regular basis and remain cautious in our CapEx spending according to the market situation to set priorities in the best interest of the company and shareholders.

我們剛剛在七月向股東派發了最新一期股息。這是我們整體資本配置策略的一部分，包括股票回購、資本支出投資和其他槓桿。儘管公司在上半年以及整個行業都面臨逆風，但我們的專注度和營運實力使我們處於有利地位，累計未分配留存收益足以支持穩定的股息支付。我們預期我們的政策不會發生任何變化，但我們的管理層和董事會會定期審查整體資本配置策略，並根據市場情況謹慎決定資本支出，以優先考慮公司和股東的最佳利益。

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。現在請鄭紹基先生發表最後評論。

Thank you, everyone, for joining our conference call. Please e-mail 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，請發送電子郵件至我們的 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。

Statements in English on this transcript were spoken by an interpreter present on the live call. The interpreter was provided by the company sponsoring this event.

本記錄中的英文陳述是由現場翻譯人員宣讀的。翻譯由贊助此活動的公司提供。