Magnachip Semiconductor Corp (MX) 2025 Q2 法說會逐字稿

Welcome to MagnaChip Semiconductor second-quarter 2025 earnings conference all. (Operator Instructions)

歡迎大家參加 MagnaChip 半導體 2025 年第二季財報會議。 （操作員指示）

I will now like to turn the conference over to Stephen Pelayo. Sir, you may begin.

現在，我想把會議交給史蒂芬‧佩拉約。先生，您可以開始了。

Great, thank you. Hello, everyone. Thank you for joining us to discuss MagnaChip's financial results for the second quarter into June 30, 2025. The second quarter earnings release that was issued today after the market closed can be found on the company's Investor Relations website. The webcast replay of today's call will be archived on our website shortly afterwards.

太好了，謝謝大家。大家好。感謝大家加入我們，共同討論 MagnaChip 截至 2025 年 6 月 30 日的第二季財務表現。今天收盤後發布的第二季財報可在公司投資人關係網站上查閱。今天電話會議的網路直播回放將於稍後存檔在我們的網站上。

Joining me today are YJ Kim, MagnaChip's Chief Executive Officer; and Shinyoung Park, our Chief Financial Officer. YJ will discuss the company's recent operating performance and business overview, and Shinyoung will review financial results for the quarter and provide guidance for the third quarter. There will be a Q&A session following the prepared remarks.

今天與我一同出席的還有 MagnaChip 執行長 YJ Kim 和財務長 Shinyoung Park。 YJ 將討論公司近期的營運績效和業務概覽，Shinyoung 將回顧本季的財務表現並提供第三季的展望。發言結束後將進行問答環節。

During the course of this conference call, we may make forward-looking statements about MagnaChip's business outlook and expectations. Our forward-looking statements and all other statements that are not historical facts reflect our beliefs and predictions as of today, and therefore, are subject to risks and uncertainties as described in the safe harbor statement found in our SEC filing. Such statements are based upon information available to the company as of the date hereof and are subject to change for future developments. Except as required by law, the company does not undertake any obligation to update these statements.

在本次電話會議期間，我們可能會就 MagnaChip 的業務前景和預期做出前瞻性陳述。我們的前瞻性陳述以及所有其他非歷史事實的陳述均反映我們截至今日的信念和預測，因此，可能受到我們提交給美國證券交易委員會 (SEC) 的文件中安全港聲明中所述的風險和不確定性的影響。此類陳述基於本公司截至本新聞稿發布之日掌握的信息，並可能因未來發展而發生變化。除法律要求外，本公司不承擔更新這些陳述的任何義務。

During the call, we'll also discuss non-GAAP financial measures. The non-GAAP measures are not prepared in accordance with generally accepted accounting principles, but are intended as supplemental measures of MagnaChip's operating performance that may be useful to investors. A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures can be found in our second quarter earnings release in the rest of relations section of our website.

在電話會議中，我們還將討論非公認會計準則 (Non-GAAP) 財務指標。這些非公認會計準則 (Non-GAAP) 指標並非依照公認會計準則 (GAAP) 編制，旨在作為 MagnaChip 營運績效的補充指標，可能對投資者有所幫助。非公認會計準則 (Non-GAAP) 財務指標與最直接可比較的公認會計準則 (GAAP) 指標的對帳表，請參閱我們網站「其他關係」部分的第二季財報。

With that, I'll now turn the call over to YJ Kim. YJ?

說完這些，我現在將電話轉給 YJ Kim。 YJ？

Hello, everyone, and thank you for joining us today on MagnaChip's Q2 earnings call. We continue in Q2 to execute on our strategic T-vote to become a pure play polytechnic in the company, and we deliver the results despite ongoing macro challenges. For Q2 '25, consolidated revenue from continuing operation was $47.6 million, up 8.1% year over year, and above the midpoint of our guidance range. This was our fifth consecutive quarter of year over year growth on apple-to-apple basis.

大家好，感謝您今天參加 MagnaChip 公司第二季財報電話會議。在第二季度，我們繼續執行策略性 T 投票，致力於成為公司旗下專注於理工科的子公司。儘管面臨持續的宏觀挑戰，我們仍然取得了豐碩的成果。 2025 年第二季度，持續經營業務的綜合收入為 4,760 萬美元，年增 8.1%，高於我們預期區間的中位數。這是我們連續第五個季度實現同比增長。

Gross profit margin from continuing operation was 20.4%. It was within our guidance range of 19.5% to 21.5%, though down 2.1 percentage points from a year ago and down slightly from Q1, driven primarily to pricing pressure in China affecting older generation products. We expect our new-generation power product will be more competitive and command better pricing, as we roll out these offerings over the course of the next several quarters.

持續經營業務毛利率為20.4%，符合我們19.5%至21.5%的預期範圍，但較去年同期下降2.1個百分點，較第一季略有下降，主要原因是中國市場價格壓力影響了老一代產品。我們預計，隨著新一代電源產品在未來幾季陸續推出，這些產品將更具競爭力，並獲得更優惠的價格。

As we said before, the catalyst for achieving our financial goals is the successful rollout of our new generation products, including Gen 6 SuperJunction and IGBTs, and Gen 8 medium and low voltage MOSFETs, as well as a full array of follow-on power products. We remain committed to our 3-3-3 strategy of achieving $300 million in revenue and 30% gross margin in three years. Although the exact timing will depend in large part upon macro factors beyond our control, Shinyoung will provide more color in her section.

正如我們之前所說，實現財務目標的催化劑是我們新一代產品的成功推出，包括第六代超結和IGBT、第八代中低壓MOSFET，以及全系列的後續功率產品。我們將繼續致力於「3-3-3」策略，即在三年內實現3億美元的營收和30%的毛利率。雖然具體時間安排很大程度上取決於我們無法控制的宏觀因素，但Shinyoung將在她的專欄中提供更多細節。

We’ve already launched 28 new-generation products in the first half of 2025 and are on track to meet our previously stated goal in 2025 for 40 new-generation Power Analog Solutions products. We will start to see initial new-generation product revenue by the end of 2025 and meaningful impact in the second half of 2026. We are exploring all options to accelerate our new generation product roadmap and now targeting more than 50 new generation products by the end of 2025.

我們已於2025年上半年推出了28款新一代產品，並預計在2025年實現先前設定的目標，即推出40款新一代Power Analog Solutions產品。到2025年底，我們將開始看到新一代產品的初步收入，並在2026年下半年產生顯著影響。我們正在探索各種方案，以加速我們新一代產品路線圖的實施，目前的目標是在2025年底推出50多款新一代產品。

We expect these new generation Power products to drive higher revenue and, given the smaller die sizes, yield 20% to 30% more die per wafer in our Gumi fab. When new generation are fully ramped within a couple of years, these new products are expected to drive higher gross margins compared to the previous generations.

我們預期新一代Power產品將帶來更高的收入，由於晶片尺寸較小，我們龜尾工廠的單晶片晶圓晶片產量將提高20%至30%。當新一代產品在幾年內全面量產時，預計這些新產品將帶來比前幾代產品更高的毛利率。

Breaking down the business lines. Power Analog Solutions, or PAS, revenue was $42.3 million, up 7.7% year over year and 6% quarter over quarter, PAS represented nearly 90% of total revenue.

細分業務線。 Power Analog Solutions（簡稱PAS）營收為 4,230 萬美元，年增 7.7%，季增 6%，佔總營收的近 90%。

Power IC revenue was $5.4 million, up 11.1% year over year, and up 10.2% sequentially. We continued to see strong design win activity in Q2, reflecting customer acceptance of our new Power products. We achieved 71 total design wins in the quarter, up 61% from the 44 design wins in Q2 of last year. 23 of the design wins, representing 32% of all wins were for new products.

電源IC收入為540萬美元，較去年成長11.1%，季增10.2%。第二季度，我們持續保持強勁的設計贏單勢頭，反映出客戶對我們全新電源產品的認可。本季我們共獲得71個設計贏單，較去年同期的44個設計贏單成長61%。其中23個設計贏單（佔所有贏單的32%）為新產品。

These new innovative product families open new high-value market opportunities for MagnaChip, in automotive, industrial, and AI applications. We currently expect these three market opportunities to represent more than 60% of MagnaChip’s future product mix in 2028, up from 51% in 2024. We already have ongoing engagements to penetrate Automotive markets, which we expect to reach over 10% of our revenue by 2028, from less than 5% in 2024.

這些創新產品系列為 MagnaChip 在汽車、工業和人工智慧應用領域開闢了新的高價值市場機會。我們目前預計，到 2028 年，這三大市場機會將佔 MagnaChip 未來產品組合的 60% 以上，高於 2024 年的 51%。我們目前已持續推進汽車市場的滲透，預計到 2028 年，汽車市場占我們營收的比例將從 2024 年的不到 5% 上升至 10% 以上。

Some notable design win activity included. In the Communication segment, we had six new design wins, up from one in Q2 a year ago. We continue to win power sockets for both mainstream and flagship AI smartphone models, including multiple newly launched smartphones, and also, in upcoming foldable AI smarphones.

其中包括一些值得關注的設計訂單。在通訊領域，我們獲得了六項新的設計訂單，比去年第二季的一項有所增加。我們繼續為主流和旗艦AI智慧型手機型號贏得電源插座訂單，其中包括多款新推出的智慧型手機，以及即將推出的可折疊AI智慧型手機。

We also had power design wins for tablet and smartwatch applications. In the Computing segment, we achieved 10 new design wins in Q2, compared to zero in the year ago quarter. Most of these wins are related to PC power applications using our new SuperJunction Gen 6 products. SuperJunction Gen 6 products are also being adopted into new TV models for 2026 in the Consumer segment, where we had five new design wins in Q2’25, which was equal to the amount from the prior year ago quarter.

我們還獲得了平板電腦和智慧手錶應用的電源設計訂單。在計算領域，我們在第二季度獲得了10個新的設計訂單，而去年同期為零。這些訂單大多與使用我們全新第六代SuperJunction產品的PC電源應用有關。在消費領域，第六代SuperJunction產品也正在應用於2026年推出的新電視機型。我們在2025年第二季獲得了五個新的設計訂單，與去年同期持平。

In Industrial, we secured 47 additional design wins, up from 36 in Q2 ’24. We saw particular strength in China for LED lighting, again, leveraging SuperJunction Gen 6. We also expanded into 5G battery management systems with our new medium voltage Gen 8 products.

在工業領域，我們新增了47個設計訂單，高於2024年第二季的36個。我們再次看到了中國在LED照明領域的強勁表現，這得益於SuperJunction第六代技術。我們也憑藉著全新的中壓第八代產品，拓展了5G電池管理系統領域。

Within Automotive, we had one new design win in China for a PTC heater application and have now begun mass production for other key vehicle systems such as Idle Stop Go, AC inverters, electric oil pumps, and car chargers destined for vehicles in Japan, the USA, and Europe.

在汽車領域，我們在中國贏得了 PTC 加熱器應用的新設計，並且已經開始為其他關鍵車輛系統進行大規模生產，例如怠速啟停系統、交流逆變器、電動油泵和汽車充電器，這些系統將用於日本、美國和歐洲的車輛。

In Power IC, we had two design wins, which is the same as the number of wins in the year ago quarter. We are targeting additional design wins for LED drivers for 2026 TV models from multiple TV makers in Korea.

在電源IC領域，我們獲得了兩項設計訂單，與去年同期持平。我們的目標是為韓國多家電視製造商贏得2026款電視型號的LED驅動器設計訂單。

Now I’ll provide more details by business segment within Power Analog Solutions. Industrial accounted for approximately 35% of PAS revenue, and declined 1.9% year over year, primarily due to continued weakness in e-bike and solar inverter sales driven by macroeconomic uncertainties and price competition in the e-mobility segment.

現在，我將按 Power Analog Solutions 旗下各業務部門提供更多詳細資訊。工業業務約佔 PAS 收入的 35%，年減 1.9%，主要原因是宏觀經濟不確定性以及電動車領域的價格競爭導致電動自行車和太陽能逆變器銷售持續疲軟。

However, we saw strong sequential and year over year growth in higher performance e-motor applications, LED lighting, and 5G battery management systems, supported by adoption of our new SuperJunction Gen 6 and MV Gen 8 products. Despite the solid growth in e-motors, it was not enough to fully offset the softness in e-bike demand.

然而，由於我們新款 SuperJunction Gen 6 和 MV Gen 8 產品的採用，高性能馬達應用、LED 照明和 5G 電池管理系統的環比和同比均實現了強勁增長。儘管馬達市場成長穩健，但仍不足以完全抵消電動自行車需求的疲軟。

Consumer, which represented 34% of PAS revenue, declined 0.4% year over year due to continued weakness in home appliances, mostly offset by year over year growth in TV applications. As mentioned before, we are targeting our new generation SuperJunction Gen 6 products being adopted for multiple 2026 TV models.

消費性電子業務佔PAS營收的34%，年減0.4%，原因是家電業務持續疲軟，但大部分被電視應用的年成長所抵銷。如前所述，我們的目標是將新一代SuperJunction Gen 6產品應用於2026年的多款電視機型。

Communication, which accounted for 20% of PAS revenue, grew nearly 47% year over year, reflecting increased share in both flagship and mass-market smartphone models. In particular, our low voltage MOSFET revenue for smartphone BatteryFETs increased 32% year over year, and we currently expect to hold the majority position with Korea’s leading smartphone manufacturer in 2026, including in their flagship foldable models.

通訊業務佔 PAS 收入的 20%，年增近 47%，反映出其在旗艦和大眾市場智慧型手機機型中的份額均有所提升。尤其是，我們用於智慧型手機電池場效電晶體 (BatteryFET) 的低壓 MOSFET 收入年增 32%，目前我們預計到 2026 年，該業務將佔據韓國領先智慧型手機製造商的主導地位，包括其旗艦可折疊機型。

Computing, which represented 8% of PAS revenue, was up 45% year over year, driven primarily by higher PC power revenue in Taiwan and China.

計算業務佔 PAS 收入的 8%，年增 45%，主要得益於台灣和中國大陸 PC 電源收入的增加。

Automotive, which represented 2% of PAS revenue, declined 25% year over year, mainly due to slower demand from Korea-based EV makers and some inventory controls from customers in China.

汽車業務佔 PAS 收入的 2%，年減 25%，主要原因是韓國電動車製造商的需求放緩以及中國客戶的一些庫存控制。

On our Power IC business, which represented 11% of consolidated Q2 revenue from continuing operations, grew 11.1% year over year, and 10.2% sequentially. The growth was driven by both TV-LED and OLED power ICs, supported by the introduction of 20 new mid-to-low-end TV models by our customers for 2025.

我們的電源IC業務佔第二季合併持續經營收入的11%，較去年同期成長11.1%，較上季成長10.2%。這項成長主要得益於電視LED和OLED電源IC，以及我們的客戶為2025年推出的20款新型中低階電視機型。

Finally, the shutdown of our Display business is now virtually complete. We are benefiting from end-of-life income streams and continue to explore monetization opportunities for the Display IP assets. China is a huge market, especially for power semiconductors. We started China for China strategy in early 2024 to address the local market opportunities.

最後，我們顯示器業務的關閉工作已基本完成。我們正在受益於停產後的收入流，並將繼續探索顯示器智慧財產權資產的變現機會。中國是一個巨大的市場，尤其是在功率半導體領域。我們在2024年初啟動了「面向中國」策略，以抓住本地市場機會。

However, tariff uncertainty along with competitive pricing pressure on our older generation products in China combine to create a challenging environment that will impact our near-term outlook in the second half of this year. In view of this, we are being proactive and decisive by taking structural actions internally to reduce costs and optimize operational efficiency with a goal to still get close to a quarterly adjusted EBITDA break-even from continuing operations by the end of this year.

然而，關稅不確定性以及我們在中國舊款產品面臨的競爭性定價壓力，共同構成了充滿挑戰的環境，將影響我們今年下半年的短期前景。有鑑於此，我們正在積極主動地採取內部結構性措施，以降低成本並優化營運效率，目標是在今年年底前實現持續經營業務季度調整後EBITDA的盈虧平衡。

We are also accelerating our R&D and product pipeline to differentiate our power product portfolio to be comparable to Tier One levels to command higher prices and margins. We also are accelerating product development for power devices targeted specifically for China for a better cost structure.All of these efforts are to support our long-term financial goals to maximize shareholder value.

我們也正在加速研發和產品線建設，力求使我們的功率產品組合更具差異化，與一線廠商的產品水準相媲美，從而獲得更高的價格和利潤。此外，我們也正在加快專門針對中國市場的功率元件產品開發，以優化成本結構。所有這些努力都是為了支持我們實現股東價值最大化的長期財務目標。

Now, I’ll turn the call over to Shinyoung to give you more details of our financial performance in the second quarter and provide Q3 and full-year 2025 guidance. Shinyoung?

現在，我將把電話轉給 Shinyoung，以便向您提供有關我們第二季度財務業績的更多詳細信息，並提供第三季度和 2025 年全年指導。 Shinyoung？

Thank you YJ, and welcome everyone on the call.

謝謝 YJ，歡迎大家參加電話會議。

Let’s start with key financial metrics for Q2. Total Q2 consolidated revenue from continuing operations, which includes Power Analog Solutions, PAS; and Power IC, was $47.6 million, which was above the mid-point of our guidance range of $45 million to $49 million. This was up 8.1% year over year, and up 6.5% sequentially on an apples-to-apples basis. This compared with equivalent revenue of $44.1 million in Q2 2024 and $44.7 million in Q1 2025.

讓我們先來看看第二季的關鍵財務指標。第二季持續經營業務（包括 Power Analog Solutions、PAS 和 Power IC）的合併總收入為 4,760 萬美元，高於我們 4,500 萬美元至 4,900 萬美元的預期區間中位數。年增 8.1%，季增 6.5%。相較之下，2024 年第二季和 2025 年第一季的等效收入分別為 4,410 萬美元和 4,470 萬美元。

Revenue from Power Analog Solutions was $42.3 million. This was up 7.7% year over year, and up 6.0% sequentially. Revenue from Power IC was $5.4 million. This was up 11.1% year over-year and up 10.2% sequentially.

Power Analog Solutions 營收為 4,230 萬美元，較去年同期成長 7.7%，較上季成長 6.0%。 Power IC 營收為 540 萬美元，年增 11.1%，季增 10.2%。

In Q2, consolidated gross profit margin from continuing operations was 20.4%, within our guidance range of 19.5% to 21.5%, down from 22.5% year over year, and down from 20.9% sequentially on an apples-to-apples basis. The year-over-year decline was primarily attributable to an unfavorable product mix, driven mainly by ASP erosion, particularly in China. The sequential decline was mainly attributable to the timing of eight certain inventory reserve associated with a Power IC product, coupled with a higher-than-expected revenue in Q2 from pull-ins by a customer due to the uncertainty around tariffs.

第二季度，持續經營業務的綜合毛利率為20.4%，符合我們19.5%至21.5%的預期範圍，低於去年同期的22.5%，較上季下降（以同類比較計算），低於上一季的20.9%。年減主要歸因於產品組合不佳，主要受平均售價下滑（尤其是在中國市場）的影響。環比下降主要歸因於與一款電源IC產品相關的特定庫存儲備時間，以及由於關稅不確定性，客戶在第二季度的採購量高於預期。

The company’s Display business has been classified as discontinued operations from Q1 2025, so all the following figures reflect results from continuing operations.

該公司的顯示業務自 2025 年第一季起被歸類為停止經營業務，因此以下所有數據均反映持續經營業務的結果。

Q2 SG&A was $9.3 million, as compared to equivalent SG&A of $9.7 million in Q2 2024 and $9.7 million in Q1 2025.

第二季銷售、一般及行政費用為 930 萬美元，而 2024 年第二季銷售、一般及行政費用為 970 萬美元，2025 年第一季銷售、一般及行政費用為 970 萬美元。

Q2 R&D was $7.0 million, as compared to equivalent R&D of $5.8 million in Q2 2024, and $5.9 million in Q1 2025. R&D in Q2 increased due to the acceleration of R&D efforts while developing a family of new-generation IGBT and SuperJunction products to target more high-value opportunities.

第二季研發費用為 700 萬美元，而 2024 年第二季的等效研發費用為 580 萬美元，2025 年第一季的等效研發費用為 590 萬美元。第二季研發費用的增加是由於研發力道的加快，同時開發新一代 IGBT 和超結產品系列以瞄準更多高價值機會。

Stock compensation charges included in operating expenses from continuing operations were $0.9 million in Q2, as compared to $1.0 million in Q2 2024, and $0.8 million in Q1 2025. These charges fluctuate every quarter depending on the timing and size of stock award grants.

持續經營業務營運費用中包含的股票薪酬費用在第二季為 90 萬美元，而 2024 年第二季為 100 萬美元，2025 年第一季為 80 萬美元。這些費用每季都會波動，具體取決於股票獎勵授予的時間和規模。

Q2 operating loss was $7.4 million. This compares to an equivalent operating loss of $5.7 million in Q2 2024 and an operating loss of $6.3 million in Q1 2025. On a non-GAAP basis, the Q2 adjusted operating loss was $5.6 million, compared to an equivalent adjusted operating loss of $4.7 million in Q2 2024 and an adjusted operating loss of $5.4 million in Q1 2025.

第二季營運虧損為 740 萬美元。相較之下，2024 年第二季的營運虧損為 570 萬美元，2025 年第一季的營運虧損為 630 萬美元。以非公認會計準則 (Non-GAAP) 計算，第二季調整後營運虧損為 560 萬美元，相較之下，2024 年第二季的調整後營運虧損為 470 萬美元，2025 年第一季的調整後營運虧損為 540 萬美元。

Income from continuing operations in Q2 was $8.5 million as compared with an equivalent loss of $2.2 million in Q2 2024, and a loss of $5.1 million 9 in Q1 2025.

第二季持續經營收入為 850 萬美元，而 2024 年第二季的持續經營虧損為 220 萬美元，2025 年第一季的持續經營虧損為 510 萬美元。

In Q2, we recognized net foreign currency gain of $10.8 million, majority of which was attributable to the non-cash translation gain on certain intercompany borrowings as a result of FX volatility during this quarter. We also booked in Q2 the income tax benefit of $4.1 million, which was primarily due to the tax loss recognized in Korea in connection with the shut-down of the Display business.

第二季度，我們確認了1,080萬美元的淨外匯收益，其中大部分歸因於本季外匯波動導致的某些公司間借款的非現金折算收益。我們也在第二季確認了410萬美元的所得稅收益，這主要歸因於韓國因顯示業務關閉而確認的稅務損失。

Q2 Adjusted EBITDA was negative $2.1 million. This compares to an equivalent Adjusted EBITDA of negative $1.0 million in Q2 2024, and negative $2.1 million in Q1 2025.

第二季調整後EBITDA為負210萬美元。相較之下，2024年第二季調整後EBITDA為負100萬美元，2025年第一季調整後EBITDA為負210萬美元。

Q2 GAAP diluted earnings per share was $0.23, as compared with equivalent diluted loss per share of $0.06 in Q2 2024, and diluted loss per share of $0.14 in Q1 2025.

第二季 GAAP 稀釋每股盈餘為 0.23 美元，而 2024 年第二季每股稀釋虧損為 0.06 美元，2025 年第一季每股稀釋虧損為 0.14 美元。

Q2 non-GAAP diluted loss per share was $0.08. This compares with equivalent non-GAAP diluted earnings per share of $0.07 in Q2 2024 and non-GAAP diluted loss per share of $0.1 in Q1 2025. The difference between our GAAP and non-GAAP EPS in Q2 2025 was primarily due to the elimination of the non-cash foreign currency gain of $10.8 million that I explained earlier.

第二季非公認會計準則每股攤薄虧損為0.08美元。相較之下，2024年第二季的非公認會計準則每股攤薄收益為0.07美元，2025年第一季的非公認會計準則每股攤薄虧損為0.1美元。在2025年第二季度，我們公認會計準則每股收益與非公認會計準則每股收益之間的差異主要歸因於我先前解釋的1,080萬美元非現金外匯收益的抵銷。

Our weighted average non-GAAP diluted shares outstanding for the quarter were 36.1 million shares and 38.5 million shares in Q2 2024 and 36.9 million shares in Q1 2025.

本季我們的加權平均非 GAAP 稀釋流通股數為 3,610 萬股，2024 年第二季為 3,850 萬股，2025 年第一季為 3,690 萬股。

As part of our stock buyback program authorized in July 2023, we repurchased in Q2 2025, approximately 0.7 million shares for an aggregate purchase price of $2.3 million, leaving about $21.2 million remaining authorization as of June 30, 2025.

作為我們 2023 年 7 月授權的股票回購計畫的一部分，我們在 2025 年第二季回購了約 70 萬股，總購買價為 230 萬美元，截至 2025 年 6 月 30 日，剩餘授權金額約為 2,120 萬美元。

Moving to the balance sheet. We ended Q2 with cash of $113.3 million as compared to $132.7 million at the end of Q1 2025. The two main cash outflow items were, $11.9 million of CapEx, which will be explained separately later, and $6.5 million one-time liquidation cost related to the discontinued Display business.

再來看資產負債表。我們第二季末的現金餘額為1.133億美元，而2025年第一季末的現金餘額為1.327億美元。主要的現金流出項目包括：1,190萬美元的資本支出（稍後將另行解釋）；以及與已終止的顯示業務相關的650萬美元的一次性清算成本。

With respect to the discontinued Display business, we’ve previously estimated total one-time cash cost of approximately $12 million to $15 million. Of this estimated total cash cost, in Q2, we actually paid statutory severance and other employee-related costs of $6.5 million. We originally expected to pay certain contract termination charges in full, along with the statutory severance and other employee-related costs.

關於已停止的顯示業務，我們先前估計的一次性現金成本總額約為1,200萬至1,500萬美元。在這筆預計的現金成本總額中，我們在第二季度實際支付了650萬美元的法定遣散費和其他員工相關費用。我們原本預計會全額支付部分合約終止費用，以及法定遣散費和其他員工相關費用。

However, we negotiated with the respective vendors that the total of $6.5 million of contract termination charges would instead be paid over the remaining existing contract terms of 1.5 years from Q2 2025, and that amount was recognized as part of other charges in the discontinued operations financials in Q2 2025.

然而，我們與各自的供應商協商，總計 650 萬美元的合約終止費用將從 2025 年第二季度起在剩餘的 1.5 年現有合約期限內支付，並且該金額被確認為 2025 年第二季度停止經營財務報表中的其他費用的一部分。

The company has begun to provide limited support for remaining customer obligations, including the sale of end of life, EOL, Display products, which is being conducted by MagnaChip Semiconductor, Ltd., the company’s wholly--owned subsidiary that operates the Power business.

該公司已開始對剩餘的客戶義務提供有限的支持，包括銷售壽命終止、EOL、顯示產品，這些支持由該公司負責電源業務的全資子公司 MagnaChip Semiconductor, Ltd. 負責。

The sale of EOL Display products and the potential monetization of the intellectual property assets of the discontinued Display business is expected to generate cash inflow of approximately $20 million over a period of approximately two years from the second half of 2025. The total amount will depend upon the demand from customers and the outcome of the monetization efforts of the Display intellectual property assets. Any future revenue derived from the Display business will be accounted for separately as part of discontinued operations.

預計從2025年下半年開始的約兩年內，停產顯示產品的出售以及已終止顯示業務智慧財產權資產的潛在貨幣化將產生約2,000萬美元的現金流入。總金額將取決於客戶需求以及顯示知識產權資產貨幣化成果。顯示業務產生的任何未來收入將作為已終止經營業務的一部分單獨核算。

Net accounts receivable at the end of the quarter totaled $28.8 million and $28.3 million at the end of Q1 2025. Our days sales outstanding for Q2 was 47 days and compares to 47 days in Q1 2025. Our average days in inventory for Q2 was 81 days and compares to 70 days in Q1 2025. Inventories, net at the end of the quarter totaled $37.6 million, and $32.6 million at the end of Q1 2025.

本季末的淨應收帳款總額為 2,880 萬美元，2025 年第一季末為 2,830 萬美元。我們第二季的未償銷售額天數為 47 天，而 2025 年第一季為 47 天。我們第二季的平均庫存天數為 81 天，而 2025 年第一季為 70 天。本季末的庫存淨額為 3,760 萬美元，2025 年第一季末的庫存淨額為 3,260 萬美元。

Q2 CapEx, as noted earlier, was $11.9 million of which $9.4 million was used to upgrade the Gumi fab. For the full year 2025, we now expect our total CapEx to be in the range of $32 million to $34 million, which includes approximately $20 million to $22 million CapEx to upgrade the Gumi fab. The annual forecast for the upgrade CapEx in 2025 increased from the previously estimated range of $14 million to $15 million to $20 million to $22 million, primarily due to the timing shift of certain equipment purchases.

如前所述，第二季資本支出為 1,190 萬美元，其中 940 萬美元用於升級龜尾晶圓廠。我們目前預計 2025 年全年總資本支出將在 3,200 萬至 3,400 萬美元之間，其中包括約 2,000 萬至 2,200 萬美元用於升級龜尾晶圓廠。 2025 年年度升級資本支出預測從先前估計的 1,400 萬至 1,500 萬美元到 2,000 萬至 2,200 萬美元有所上調，這主要是由於某些設備採購時間的調整。

In Q2, of the $9.4 million upgrade CapEx, $7 million was funded by the previously announced $26.5 million equipment loan, resulting in our net cash impact from this upgrade CapEx in Q2 be $2.4 million.

在第二季度，940 萬美元的升級資本支出中，有 700 萬美元由先前宣布的 2,650 萬美元設備貸款提供資金，因此該升級資本支出對我們第二季度的淨現金影響為 240 萬美元。

For the full year 2025, we expect approximately 80% to 85% of the $20 million to $22 million upgrade CapEx to be funded by the same $26.5 million equipment loan, to which an interest rate of less than 3% per annum will apply, and the remainder will be funded by the company’s cash. The loan was part of a previously disclosed strategy for Magnachip to make a $65 million to $70 million investment over three years to upgrade the Gumi fab.

就2025年全年而言，我們預計2000萬至2200萬美元的升級資本支出中約80%至85%將由同樣的2650萬美元設備貸款提供，該貸款的年利率低於3%，其餘部分將由公司自有現金支付。這筆貸款是Magnachip先前披露的一項策略的一部分，該戰略計劃在三年內投資6500萬至7000萬美元，用於升級龜尾工廠。

The depreciation cost related to the Gumi fab upgrade CapEx won’t begin to be reflected in our financial statements until 2027. At that time, we anticipate that a more robust portfolio of new generation power products will at least partially offset the impact. This new investment in Gumi is expected to drive development of the new generation power product portfolio and upgrade new tools to optimize product mix and improve gross profit margin.

與龜尾工廠升級資本支出相關的折舊成本要到2027年才會開始反映在我們的財務報表中。屆時，我們預計更強大的新一代功率產品組合將至少部分抵消其影響。龜尾的這項新投資預計將推動新一代功率產品組合的開發，並升級新設備，從而優化產品組合併提高毛利率。

Before we move to the guidance section, let me provide some comments regarding the actions that are being undertaken by the company post shutdown of the Display business. As we’ve disclosed previously, we are prepared to execute all available cost reduction initiatives to align our spending level with a strategy to become a pure-play power company and to achieve certain financial goals.

在進入業績指引部分之前，我想先就公司在關閉顯示業務後採取的行動發表一些看法。正如我們之前所揭露的，我們準備好實施所有可行的成本削減措施，以使我們的支出水準與成為純粹的電力公司的策略保持一致，並實現某些財務目標。

We currently retain a cost structure, which includes some shared functions that historically had supported both Display and Power businesses. One of the initiatives being undertaken is headcount reduction, primarily through some shared functions made redundant through the closing of Display, via a voluntary resignation program that we expect to commence and complete by the end of the third quarter.

我們目前保留了現有的成本結構，其中包括一些過去曾同時支援顯示業務和電源業務的共享職能。我們正在採取的舉措之一是裁員，主要透過自願離職計畫來裁減一些因顯示業務關閉而裁減的共享職能，該計畫預計將於第三季末啟動並完成。

Due to the voluntary nature of this program, we are unable to provide an exact amount of the related financial impact at this time. However, with the execution of this headcount reduction, we target to achieve annual OpEx savings of $2 million to $3 million with the payback period of 1.5 years.

由於該計劃屬於自願性質，我們目前無法提供相關財務影響的具體金額。不過，隨著此次裁員的實施，我們的目標是每年節省200萬至300萬美元的營運支出，投資回收期為1.5年。

Now moving to our third quarter and full-year 2025 guidance. While actual results may vary, for Q3 2025, MagnaChip currently expects consolidated revenue from continuing operations, which includes Power Analog Solutions and Power IC businesses, to be in the range of $44 million to $48 million, down 3.5% sequentially, and down 13.2% year over year at the mid-point on an equivalent basis due to pull-ins by customers in Q2 from the second half of the year, as well as competitive pricing pressure on our older generation products. This compares with equivalent revenue of $47.6 million in Q2 2025 and $53.0 million in Q3 2024.

現在來看看我們對2025年第三季和全年的預期。儘管實際結果可能有所不同，但MagnaChip目前預計，2025年第三季度，包括電源模擬解決方案和電源IC業務在內的持續經營業務的綜合收入將在4400萬美元至4800萬美元之間，環比下降3.5%，同比下降13.2%，這主要是由於第二季度客戶對下半年的競爭，以及我們老一代產品面臨的風險。相較之下，2025年第二季的等效收入為4,760萬美元，2024年第三季的等效收入為5,300萬美元。

Consolidated gross profit margin from continuing operations to be in the range of 18.5% to 20.5%. This compares with equivalent gross profit margin of 20.4% in Q2 2025 and 22.0% in Q3 2024.

持續經營業務的綜合毛利率預計在18.5%至20.5%之間。相較之下，2025年第二季的毛利率為20.4%，2024年第三季的毛利率為22.0%。

For the full-year 2025, consolidated revenue from continuing operations is now expected to be flattish as compared to our previous forecast of mid-to-high single digit growth year over year due to a challenging environment related to tariff uncertainty and pricing pressure on older generation products in China. This compares with equivalent revenue of $185.8 million in 2024.

就2025年全年而言，由於關稅不確定性以及中國老一代產品定價壓力等嚴峻環境，我們預計持續經營業務的綜合收入將與去年同期中高個位數增長持平，而我們此前預測的同比增長將與去年持平。相較之下，2024年的持續經營業務綜合收入為1.858億美元。

Consolidated gross profit margin from continuing operations between 19% to 20%, as compared to our previous forecast of 19.5% to 21.5%. The equivalent gross profit margin was 21.5% in 2024.

持續經營業務的綜合毛利率預計在19%至20%之間，而我們先前預測為19.5%至21.5%。 2024年的相應毛利率為21.5%。

Thank you and now I will turn the call back over to YJ for his final remarks. YJ?

謝謝，現在我將把電話轉回給 YJ，請他做最後的發言。 YJ？

In the first half of the year, we made good progress on our goal to become a pure-play Power semiconductor company. We expanded our new generation power product pipeline and focused on increasing customer adoptions across key growth markets, including automotive,iIndustrial, and communications.

上半年，我們在成為一家專注於功率半導體業務的公司的目標上取得了良好進展。我們擴展了新一代功率半導體產品線，並專注於提升汽車、工業和通訊等關鍵成長市場的客戶採用率。

In Q2, in particular, our growth was driven primarily by strong performances in our communications and computing businesses, with each showing revenue growth of over 40% year over year. We also benefited modestly by some pull-ins by customers due to the uncertainty around tariffs.

尤其是在第二季度，我們的成長主要得益於通訊和運算業務的強勁表現，這兩大業務的營收年增均超過40%。此外，由於關稅的不確定性，一些客戶也帶來了一定的收益。

Looking to the back half of the year, we face an uncertain environment due to tariffs and pricing pressures in China. As a result, we currently anticipate a softer second half of the year relative to our prior expectations.

展望下半年，由於中國關稅和價格壓力，我們面臨不確定的環境。因此，我們目前預計下半年業績將低於先前的預期。

While headwinds are impacting our near-term outlook, we are being proactive and decisive, taking structural actions to optimize operational efficiency, while continuing to invest in R&D and CapEx to support our long-term 3-3-3 financial strategy.

儘管不利因素正在影響我們的短期前景，但我們正在積極主動、果斷地採取結構性措施來優化營運效率，同時繼續投資於研發和資本支出，以支持我們的長期 3-3-3 財務策略。

As we shared today, we are accelerating the development of a full array of new generation products to drive future growth, and we expect to see initial revenue contribution by year-end, gaining momentum and having a material impact in the second half of 2026.

正如我們今天所分享的，我們正在加速開發全系列新一代產品以推動未來成長，我們預計到年底將實現初步收入貢獻，並在 2026 年下半年獲得發展動力並產生重大影響。

This acceleration will allow us to roll out more feature-rich, differentiated, and higher-margin products more quickly. We remain committed to maximizing shareholder value and prioritizing a return to profitability.

這項加速將使我們能夠更快地推出更多功能豐富、差異化且利潤率更高的產品。我們將繼續致力於最大化股東價值，並將獲利能力恢復放在首位。

Now I will turn the call back to Steven. Steven?

現在我將把電話轉回給史蒂文。史蒂文？

That concludes our prepared remarks. Now let’s open the call for any questions that you may have. Operator, please go ahead.

我們的準備演講到此結束。現在，讓我們開始回答大家的提問。接線員，請開始。

(Operator Instructions) Suji Desilva, Wealth Capital.

（操作員指示）Suji Desilva，財富資本。

Hi, YJ. Hi, Shinyoung. It's the pull-ins you saw in the first half, some customers with tariff impact. I'm wondering if that's flowing through in the second half all the way to the next few quarters? And whether you largely see the impact of that near term, when you talk about one large customer? So I'm curious how much that affected lingering versus pricing threats for another element of the revenue.

你好，YJ。你好，Shinyoung。你好，上半年我們看到了一些客戶受到關稅影響。我想知道這種影響是否會延續到下半年，甚至接下來的幾季？當你談到一個大客戶時，你是否主要看到了短期內的影響？所以我很好奇，這對收入的其他組成部分——持續性收入和定價威脅——的影響有多大？

Yes, so I think we mentioned the magnitude of the estimate pull-in in the prior time. We saw maybe about $2 million and I think some of that came in into the first half. And we saw some little more in the later part of Q2, especially in the TV-related area. So we think that's a way to compare and have the poll in.

是的，我記得我們之前提到過預估收入的規模。我們估計大概有200萬美元，其中一部分是上半年的收入。第二季後期，尤其是在電視相關領域，收入略有增加。所以，我們認為這是一種比較和進行民意調查的方法。

Okay, great. And then on the gross margin, the wrap down, these things, 1, 2, 2, 3, 4, is that primarily pricing now or are you adjusting utilization for the current environment and our imagine inventowry here?

好的，太好了。然後關於毛利率，總結一下，這些東西，1、2、2、3、4，主要是現在的定價嗎？還是您正在根據當前環境和我們想像中的庫存調整利用率？

So the pricing pressure for sure, Suji, that's kind of revenue all over vision from the mid-high single vision to flatish, and also that's impacting our gross margin obviously. So we baked in previously and the pricing condition and pressure became more severe. So that's kind of dragging down our gross margin.

所以，Suji，價格壓力肯定存在，這會影響從中高端單視窗到平板視窗的整個收入，而且這顯然也影響了我們的毛利率。我們之前已經消化了價格壓力，但價格狀況和壓力變得更加嚴峻。這在某種程度上拖累了我們的毛利率。

But at the same time, because the older generation product, we are kind of feeling the pressure there. So utilization rate is actually -- I mean, that's definitely getting impacted as compared to previous forecast.

但同時，由於老一代產品，我們也感受到了壓力。所以利用率實際上——我的意思是，與之前的預測相比，這肯定會受到影響。

So lower utilization than our previous expectation, along with this kind of pricing pressure, the ASP origin is impacting our second half. And that's how you're kind of seeing our soft. and all looking at the second half of 2025.

因此，利用率低於我們先前的預期，再加上這種定價壓力，平均售價的波動正在影響我們下半年的業績。這就是我們所看到的疲軟，所有這些都將展望2025年下半年。

All right, thanks, Shinyoung. Thanks, YJ.

好的，謝謝，Shinyoung。謝謝，YJ。

(Operator Instructions) Nick Doyle, Needham and Company.

（操作員指示）Nick Doyle，Needham and Company。

Yeah, thanks for taking my questions. Just wondering if you can talk about where you're seeing strength in the communications, like which applications driving strength in the communications end market? Thank you.

是的，感謝您回答我的問題。您能否談談您認為通訊領域的優勢所在，例如哪些應用程式正在推動通訊終端市場的發展？謝謝。

Yes, so if you look at our remarks today, we had more design wins in the communications. So from one to five models we had, and so we are seeing the trends from the new models that launched in 2025. So that from mid-range to flagship AI smartphones, and then the new launched AI portable phones. That's where we feel growth.

是的，如果你看看我們今天的發言，你會發現我們在溝通上贏得了更多設計勝利。我們的機型數量從一款增加到了五款，所以我們看到了2025年新機型的趨勢。從中階到旗艦AI智慧型手機，再到新推出的AI隨身手機。這就是我們感受到成長的地方。

And also in the computing area, we had more design wins, and that also contributed to the more design win. And then we are also seeing pipeline for the AI server as well.

在計算領域，我們獲得了更多設計訂單，這也有助於我們獲得更多設計訂單。此外，我們也看到了AI伺服器的管線建設。

Okay, and then if I could just ask about the OpEx and the EBITDA breakeven. mean, you're saying you're targeting hopeful breakeven by the end of the year. Does that mean you can really take down OpEx, you know, $1 million to $2 million by the end of the year to be determined based on the voluntary employee dynamic? Thanks.

好的，那麼我可以問一下營運支出和息稅折舊攤提前利潤（EBITDA）損益平衡點嗎？您說的目標是在年底前實現損益平衡。這是否意味著您真的可以降低營運支出，也就是在年底前降低100萬到200萬美元，具體數字將根據自願員工的情況而定？謝謝。

Thanks, Nick. So, I mean, that's why we still target to get close to adjusted EBITDA breakeven in Q4 2025. So, we are executing this voluntary resumption program. We are going to do that launch and execute it by the end of Q3.

謝謝，尼克。所以，我的意思是，我們仍然致力於在2025年第四季實現調整後EBITDA的損益平衡。因此，我們正在執行這項自願復工計劃。我們將在第三季末啟動並實施該計劃。

So, you're going to see the impact in Q4 for sure, but our currently estimated range is like $2 million, $3 million office reduction, like that's of annual basis. So, if you kind of divide it by four, just roughly, that's kind of half million to like $0.75 million, reduction in OpEx and mainly coming from the SG&A.

所以，你肯定會在第四季看到影響，但我們目前估計的年度辦公室成本減少幅度在200萬到300萬美元之間。所以，如果除以四，粗略計算，營運支出的減少幅度大概在50萬到75萬美元之間，主要來自銷售、行政和管理費用（SG&A）。

Thank you. Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I will now like to the call back over to Steven for closing remarks.

謝謝。謝謝。女士們，先生們，現在隊列中沒有其他問題了。現在請史蒂文作最後發言。

Okay, thank you. Before we conclude, I just want to give everyone a quick reminder on our upcoming investor conference. August 20th, we will present at the th Annual Needham Virtual Semiconductor & SemiCap one-on-one conference.

好的，謝謝。在結束之前，我想快速提醒大家我們即將舉行的投資人會議。 8月20日，我們將出席第19屆Needham虛擬半導體和SemiCap一對一會議。

Attendance at the conference is by invitation-only. For interested institutional investors, please contact your respective sales representative to register and schedule one-on-one meetings with the management team. Please look for details of our future events on MagnaChip's Investor Relations website.

本次會議僅限受邀者參加。有興趣的機構投資者請聯絡您相應的銷售代表進行註冊，並安排與管理團隊的一對一會面。請造訪 MagnaChip 投資者關係網站，以了解我們未來活動的詳情。

With that, this concludes our Q2 earnings conference call. Thank you and take care.

我們第二季財報電話會議到此結束。謝謝大家，保重。

Ladies and gentlemen, you may now disconnect. Thank you for your participation.

女士們，先生們，現在可以斷開連接了。感謝您的參與。