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Operator
Welcome to the second quarter of the NAMO Technology Co., Ltd.' 's 2024 operating results statement meeting. At the beginning of the meeting, your phone will be in business status. Now, let's welcome Dr. Shen Gengxin, who is in charge of strategy and investment relations, to introduce us to today's meeting. Dr. Shen, please. Hello, everyone.
Shen Gengxin
Welcome to the second quarter of the NAMO Technology Co., Ltd.' 's 2024 operating results statement meeting. Today's speaker is Mr. Zheng Shijie, the president of the company. Good afternoon, everyone. The vice president of the Taiwan Management Center, Ms. Shu Yijiao. Good afternoon, everyone. And Mr. Huang Guoliang, the assistant vice president and spokesman for strategy and investment relations. Good afternoon, everyone. Today's meeting is hosted by Mr. Zheng and explains the operating results of the second quarter. Then, Mr. Shu Yijiao, the vice president, will report on various financial indicators. Then, the president will explain the future business outlook. After the explanation, we will start accepting your questions. Thank you, Dr. Shen.
Shen
I would like to thank everyone for participating in the presentation of today's sales results. In 2024, the revenue of the second quarter increased by 7.2% compared to the same period last year, which increased by about 6.7%. The net profit is 14.0%, which decreased by about 0.2% compared to the same period last year, which decreased by 3.3%. The EPS of the second quarter is NT$0.62. The EPS of the first half of this year is NT$1.22. In terms of driving power, with the return of the main machine, the average driving power of this quarter has risen to 69%. The windage has risen to about 65%. The average driving power of the combined signal and memory test is about 67%. The average driving rate of the drive IC wind test is about 75%. The power outage is increased to about 65%. In terms of the sales division of the production department, the weight of the wind installation this season is about 22.3%. The combined signal and memory test collection is about 21.9%. The weight of the power outage is about 21.9%. The weight of the product category is about 34.1% for DDI-C products, and about 18.5% for new products. D-RAM is about 14.5% for S-RAM, and 10.2% for logic and integrated signal products. Further, the weight of the overall memory product in this season is about 37.2%. As of last season, growth is about 2.4%. Compared to the same period last year, the growth is about 7.6%. Among them, the land part accounts for about 13.9% of the local revenue. It fell by about 5% compared to last season. Fresh products account for about 22.7% of the local revenue. compared to last season, increased by about 7.3%. As a result of the positive support from Norflash customers, Norflash has grown more than 30% in the last season. Nanflash's revenue ratio this season fell to about 34.8%, which decreased by about 7.7% in the last season. Next, in the system IC and progress speed, In terms of product revenue, the total revenue of the second quarter is about 52.6%, which is about 11.3% of the previous quarter's obvious growth. At the same time as last year, it is close to the same level, with a fast-growing revenue of about 7.6% compared to the previous quarter's growth. As for the mobile IC封測, it is based on OLE and the continuous documents of the car's panel, and large-sized panel panels. Its revenue has increased by about 13.3% in the previous season. In this season, the revenue of DDIC is about 2.6%, which comes from the contribution of car panel panels. COF has also increased by about 32.5% in the previous season. As for the revenue of TTDI products, the revenue of DDIC this season is about 17.8%. The revenue of O-Line products is associated with the customer's active acquisition of art, which accounts for about 23.8% of this year's DDIG revenue. It has increased by about 13.6% compared to the previous season. In terms of the revenue of the end-of-life applications, the revenue of the car industry is about 23.3% compared to the previous season. It has increased by about 14.7% compared to the previous season. 18.7% compared to 27.7% in the previous quarter. The smart action device is 35.6% compared to 3.6% in the previous quarter. In addition, the consumer electronics is 18.8% compared to 3.6% in the previous quarter, which is close to the previous quarter. This is the explanation of the second quarter's operating results. Next, Ms. Su Yi-Jia will report on various financial indicators. After that, we will discuss the future of business. Good evening, everyone.
Su Yi - Jia
Next, please refer to the 12th page of the meeting report. The second quarter of 2024, the joint business results of President Hui. In the second quarter of 2024, the revenue will be about NT$580 million. The net profit of the parent company is about NT$450,000. The net profit of the parent company is about NT$0.62. The net profit of the parent company is about NT$0.38. The net profit of the parent company is about NT$150,000. which is 7.2% of the total profit of the parent company. On the 13th, the second quarter of 2024, the combined total loss table compares this quarter with the previous quarter. In the second quarter of 2024, the revenue increased by 7.2% in the first quarter. The profit of the second quarter is about NT$815 million, with a profit rate of 14%. The profit rate of the first quarter is 14.2%, which is 0.2%. The operating fee is about NT$46,000,000. The monthly revenue is 7.9%. The first quarter increased by 7.1%. The operating interest is about NT$374,000,000. The operating interest rate is 6.4%. The first quarter decreased by 0.3%. The operating external income is about NT$128,000,000. The first quarter decreased by NT$29,000,000. This quarter's net foreign exchange interest will be reduced by NT$1028 million, and the interest on the sale of non-slip assets will be increased by NT$72 million, and the interest income will be increased by NT$17 million. The net interest on the sale of non-slip assets will be increased by NT$72 million, and the interest on the sale of non-slip assets will be increased by NT$72 million, and the interest on the sale of non-slip assets will be increased by 727 million shares, compared with the previous year. In the second quarter of 2024, the revenue increased by 6.7% compared to the same period last year. The operating profit was 14%, compared to the same period last year, which was 17.3%, which decreased by 3.3%. The operating profit was increased by 4.1% compared to the same period last year. The operating profit was 6.4%, compared to the same period last year, which decreased by 3.2%. The revenue from the business sector was reduced by about NT$95 million in the same period as last year. The main difference is that the net foreign currency exchange interest was reduced by about NT$1.24 billion, and the revenue from the investment was reduced by about NT$47 million in the same period as last year, and the net foreign currency exchange interest was increased by about NT$7.2 million. The net profit from the parent company was reduced by about 28.3% in the same period as last year, The main difference is that the profit of the business is reduced by about NT$1.48 billion. The income outside the business is reduced by about NT$95 million, and the tax fee is reduced by about NT$6,400 million. The 14th page is the joint asset debt table and the main financial index. At the end of the second quarter of 2024, the total assets were about NT$454.35 billion. In the end of the second quarter of 2024, the total debt amounted to NT$209.19 million. In the end of the second quarter of 2024, the total debt amounted to NT$245.16 million. In the end of the second quarter of 2024, the total debt amounted to NT$85 million. In the end of the second quarter of 2024, the total debt amounted to NT$49 million. On the 15th, Let's take a look at the current cash flow chart. In the second quarter of 2024, the current cash flow will be about NT$146.52 billion. In the beginning of the year, the current cash flow will be about NT$22.98 billion. The current cash flow will be about NT$14.33 billion. In the same period last year, the current cash flow will be about NT$5.17 billion. The main difference is that the capital expenditure increased by about NT$486 million, and the relief cost decreased by about NT$42 million. The 16th, capital expenditure and relief. In the second quarter of 2024, the capital expenditure was about NT$858 million. In the second quarter of 2024, the capital expenditure was divided into 4.3%. Shidong IC wind test related production capacity accounted for 44.7%, wind installation service related production capacity accounted for 28.7%, integrated signal and memory test service related production capacity accounted for 22.3%. In 2024, the second quarter, the rescue cost will be about NT$118,400,000. In addition, until July 31, 2024, the U.S. AdSense, which is circulating abroad, which accounts for 4.2 million units and accounts for about 11.6% of the company's foreign capital flow. These are the financial indicators for the second quarter of NMT in 2024. Next, please provide us with the future business outlook. President, please.
Shen
Based on the current state of the industry and the return of customers, we are relatively optimistic about the overall operating performance of the third quarter. At the same time, with the continuous return of power supply, the second half of the year is still better than the first half of the year. In terms of individual products, in terms of memory, with the gradual improvement of industrial storage, DRAM and FLUSH products still maintain stable power, especially NAND FLUSH and RIGI DRAM. The growth of its power compared to other memory products is much more obvious. In terms of mobile IT, compared to other products, the demand for car panel and OLED is still stable. Related high-speed testing machines also maintain high driving standards, especially in the part of the car panel. In addition, with the support of the new smart mobile phone market, will lead to a further increase in the co2-related wind and wind power of the machine. Therefore, in the third quarter, the power of the drive IC product is still better than the memory product. As for this year's capital expenditure, the memory specifications of DDR3 upgraded to DDR4 and DDR5 will be invested in the relevant testing platforms in the second half of the year. In addition, as the productivity of the production capacity increases and the demand for customers continues to increase, the production capacity acquisition project to carry out DTIC high-speed testing machines will shorten the production capacity expansion process to meet the next DTIC testing capacity demand. At the same time, the plan to build a display factory in the Tainan Science Park as the future Tainan factory area Enhance the test size of products such as side panels and tiles Enhance the performance of subsequent operating growth In addition In addition to continuing to focus on high growth and high productivity Product production expansion In order to improve product combination At the same time, various operating cost controls are continuously carried out. Products improve product quality and and other measures to strengthen the operating system. It is also effective in controlling operating costs, improving profits, and maintaining the performance and competitiveness of post-pandemic people. Finally, on 19 July this year, Namao Group issued a cash incentive of NT$1.8 per share of normal shares. These are the results of the performance of the third quarter of 2024. Next,
Operator
Now, if you need to ask a question, please type the number and number 1 on the phone. Thank you. The first question is from Anthony Liu from U.N.T.A.
spk05
Hello, Chairman, Vice Chairman, and Dr. I'm Anthony from U.N.T.A. The first question is about the Gulf War. You can see that the U.T. rate in the second quarter has a relatively high rebound. But the Gulf War has a decline here. I would like to know more about this. If there are any other factors that can affect the interest rate, or other factors that can affect the interest rate, can you give us a detailed explanation? Thank you. Okay.
Shen
I would like to ask the finance director to explain this. Okay.
Su Yi - Jia
I would like to compare the second quarter with the first quarter. Of course, the revenue has grown a bit, but the cost has also increased relatively. So, the interest rate is actually similar to the first quarter. The main reason for the increase in cost compared to the first quarter is mainly electricity bill. Because from April, the electricity bill has been adjusted. There is also the next quarter's electricity bill. In addition, the price has also increased. So the increase in electricity bill is actually quite big. I think there should be more than 100 million new Taiwan dollars in the amount. Of course, the cost of labor and overtime are also increasing due to the increase in the price. In relation to the cost, of course, there is also a certain degree of increase. The other part, the gold price, the gold price part is also continuing to rise. So the gold price for us, the part of oil and material, is actually one of the main reasons for the cost increase. The average cost of low-end and low-end gold prices in the second quarter 6-7% of this growth. So this part also affects the company's net profit rate. The above is the explanation. I understand. Thank you.
spk05
Boss can let me ask a question again. That is to say, for this follow-up, because we are looking at the second half of the year, it is still this true attitude. Then I want to follow up, that is to say, there are two questions. The first is that last time we mentioned that the second half of the year, the ratio is 47 to 53. Is this value still maintained? Secondly, in terms of the gross margin, will the state market be a target for the second half of the year? Thank you.
Shen
I will answer your question. In the second half of the year, it will still be better than the first half of the year. The consumer market is about the same as what we have seen in the first quarter. I don't think there is a big difference. It depends on the consumer market in the second half of the year. Thank you. Finally, I would like to ask about the current situation.
spk05
Because we are targeting the production of memory. We just mentioned that we are testing the production expansion to DDR4 and 5. There is also a continuous expansion in DGIC. For the purpose of saving this year, Are there any changes? The second point is that in the long term, because of the strong competition in the DDIT color industry in China, it seems that there is a continuous situation. How do we see that there will be some competition in the Chinese color industry in the long term?
Su Yi - Jia
I would like to answer the question about the relief part first. Because the company is still continuing to do the necessary capital investment and capital expenditure. So our relief part is actually still rising in the first quarter. For example, in the first quarter and the second quarter, there is about 1% to 3% growth. In the first quarter, I would like to say QOQ. I think in terms of Q3 and Q4, the growth is about 3% to 4% in terms of Q2 and Q3. If the capacity continues to increase, I think next year's capacity will also be in the upper part. Regarding the local customers and customers in other regions in the mainland, I think everyone has such pressure.
Shen
We also actively expand high-end products such as OLED, and high-end TVs. At the same time, we also improve the competitiveness of our quality and productivity management, such as automation, optimization of products, and the competitiveness of the company. At present, I have also seen that some mainland companies, their mid-to-late sales are in Europe, the United States, or Japan. He gradually moved these products to Taiwan's wind farm. We are also one of the consumers. So in this respect, we can only maintain our own competitiveness and continue to strengthen our automated investment to increase the availability of products. At present, it is still under control.
spk05
Thank you very much for your answer. Thank you.
Operator
Thank you. Thank you, Chairman. Thank you for your participation. Today's meeting ends here. You may leave now. Thank you. Goodbye.
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