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spk03: Welcome to the 3rd Announcement Meeting of Nanmao Technology Co., Ltd. in 2024. At the beginning of the meeting, your phone will be in silent mode. Now, let's have Dr. Shen Gongxin, who is a strategic and investor, introduce us to the company manager of today's meeting.
spk04: Dr. Shen, please. Good afternoon, everyone. Welcome to the 3rd Announcement Meeting of Nanmao Technology Co., Ltd. in 2024. Today's speaker is Mr. Zheng Shijie, the president of the company. Hello, everyone. Ms. Shu Yujiao, the vice president of the Taiwan Management Center. Hello, everyone. Mr. Huang Guoliang, the senior vice president and spokesman for strategic and investment relations. Hello, everyone. Today's meeting is hosted by Mr. Zheng and explains the results of the third quarter. Then, Mr. Shu Yujiao, the vice president, will report on various financial indicators. Then, the president will explain the future business plan. After the presentation is over, we will begin to receive your questions. The report of this conference has been uploaded to the Public Information Observation Station and the Southern Technology website, www.chumos.com, for your advanced participation. The second page of the conference report is the title statement of this conference. Today's conference will be recorded. The recording of the conference is expected to be uploaded to the company's website after two hours of the conference, for interested investors to listen. Next, we will give the floor to the Chairman.
spk02: Chairman, please. Thank you, CS. Thank you all for participating in the presentation of the operating results of R&D Technology today. In 2024, the revenue of the third quarter grew by 4.4% compared to the same period last year, which increased by about 8.7%. The net profit rate is 13.9%. Due to the impact of increased cost and decreased driving force, So, compared to last season, it fell by about 0.1%. It decreased by 2% compared to the same period last year. The third season's EPS is NT$0.41. The EPS accumulated in the first nine months of this year is NT$1.63. In terms of driving power, the average driving power of this season fell by 67%. The impact of the wind turbine production line on the customer's adjustment process has dropped to about 58%. The combined signal and body test average operation rate is about 67% compared to the second season. The average operation rate of the system IC wind test is about 75% compared to the last season. The power supply speed has increased to about 66%. In terms of production, In terms of classification, the ratio of this season's customs is about 22.1%. The combined signal and memory test is about 22.8%. The ratio of the gold and silver parts is about 23.2%. The ratio of the product category is about 32.6% of the DDIG products. The gold and silver parts are about 20.5%. The D-RAM and S-RAM are about 13.6%. and 4.6% of the product. In general, the total sales of the product in this quarter is about 36.3%, compared to 1.1% in the last quarter. Compared to the same period last year, the growth is about 16.2%, of which 13.3% in the first quarter. fell by about 1.6% in the last quarter. Plush products accounted for about 22.7% of this quarter's revenue. In comparison, the revenue increased by about 3.2% in the last quarter. In terms of no-customer-backed products, no-plush has grown by about 9% in the last quarter. NAND accounted for about 30.2% of this quarter's revenue. When it comes to customers, In the last quarter, the reduction was about 10.4%. Then, in terms of the sales of the drive IC and metal parts, the total sales of the third quarter was about 53.1%, which was about 4.3% in the last quarter. Compared with the same period last year, it has increased by 0.8%. The revenue of the gold cover has grown by about 14.5% compared to the previous season. As for the air-conditioning of the air-conditioning system, due to the increase in the number of new products from OLE, the demand for leather is lower and lower, which has reduced by about 1.3% compared to the previous season. The new product of COG and OLE has grown by about the previous season, is about 7.3%, while the revenue of this year's TDIC is about 65%. The revenue of this year's TDIC is about 2.5%, which comes from the contribution of the car's right panel. Due to the impact of customer adjustment storage, the revenue of the car's right panel is about 2.7% lower than the revenue of the last year's car. As for the revenue of the TDDI product, is 17.7% higher than the previous year's GDIC. The revenue of OLEG products is increased to about 26.3% due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to the increase in the revenue of GDIC products due to In the last quarter, the number of people in small towns has increased by about 1.6%, and the number of TV stations has increased by 16.3%. Due to the weakening of the large-scale panel, the number of people in small towns has decreased by about 10%, and the number of smart operation facilities has decreased by 39.5%. The number of people who have suffered from sexual assaults has increased by 10.6% in the last quarter, and the number of people in big towns has decreased by about 3.4%. In the last quarter, the number of small towns has decreased by 0.5%, In addition, consumer electronics, which is about 19.6%, has been reduced by 5.2% in terms of customer seasonability. These are the results of the third quarter. Next, Ms. Yu will report to you on various financial indicators. After that, we will discuss future business prospects. Good evening, everyone. Next, please attend the meeting briefing. On the 12th,
spk00: In the third quarter of 2024, the total profit and loss of the joint business will be about NT$6.68 billion. The net profit of the parent company is NT$2.99 billion. The net profit of the parent company is NT$0.41 billion. The net profit of the parent company is NT$0.26 billion. The interest, tax, compensation, and profit from the sale are about NT$164,000,000, which is 4.9% of the profit of the owner of the company. On the thirteenth, the third quarter of 2024, the comprehensive review table, compared with the previous quarter, the revenue of the third quarter of 2024 increased by 4.4% according to the second quarter. The third quarter, the operating profit is about NT$804,300,000. The profit rate is 13.9%. The second quarter, the profit rate is 14%, reducing 0.1%. The operating fee is about NT$404,900,000. The operating profit is 7.4%. The second quarter, the profit rate is 2.5%. The operating profit is about NT$402,000,000. The operating profit is 6.9%, which is 0.5% higher than in the second quarter. The operating profit is about NT$65 million. The operating profit is about NT$128 million. The difference is about NT$193 million. The main loss is about NT$730 million. As of last quarter, the net foreign currency exchange interest is about NT$25 million, and the difference is about NT$98 million. The fine for the sale of non-mobile assets is about NT$7,200 million, and the net foreign currency exchange interest is about NT$18 million. The net profit of the company is reduced by about 33.6% in the second quarter. The main difference is that the net profit of the company is increased by about NT$193 million, and the profit of the company is increased by about NT$4,600 million. The average net profit of the company is about NT$7275 million compared to the previous year. The third quarter of 2024 revenue increased by 8.7% in the same period as last year. The profit margin of the business was 13.9%. The profit margin of the same period as last year was 15.9%, which decreased by 2%. The profit margin of the business increased by 2.1% in the same period as last year. The profit margin of the business was 6.9%, which decreased by 1.8% in the same period as last year. The revenue from the foreign trade industry is about NT$65 million. Last year, the revenue from the foreign trade industry was about NT$231 million. The main difference is that this year's net foreign exchange loss is about NT$7,300 million, while last year's net foreign exchange interest was about NT$167 million. The difference is about NT$24,000,000. and the loss of the investment loss of the Law of Law in this quarter is about NT$5 million, while the profit of the investment loss of the Law of Law in the same period last year is about NT$63 million, and the difference is about NT$68 million. The net profit of the company in this period is about 48.4% less than that of the same period last year. The main difference is that the net expenditure outside the business increased by NT$296 million, The total tax revenue will be reduced by about NT$8,200 million, and the profit will be reduced by about NT$6,700 million. The 14th page is the joint asset debt table and the main financial indicators. In the end of the third quarter of 2024, the total assets will be about NT$452.9 billion. In the end of the third quarter of 2024, the total assets will be about NT$204.49 billion. In the third quarter of 2024, the share price of shareholder rights will be about NT$248.4 million, which is the main financial indicator. In the third quarter of 2024, the turnover of bonds will be 83,000. In the third quarter of 2024, the turnover of stocks will be 49,000. On the 15th page, there is a cash flow chart. In the third quarter of 2024, the share price of cash will be about NT$13.7 billion, 3.64 billion yuan. The 16th page, capital expenditure and discount. The third quarter of the third quarter of 2024, capital expenditure is about 20.89 billion yuan. The third quarter of the third quarter of 2024, capital expenditure is divided into three categories by department. The production of new raw materials accounts for 3.5 percent. The production of related production accounts for 53.6 percent. The production of related production accounts for 14 percent. Mixed signal and memory test service related production accounted for 28.9%. In the third quarter of 2024, the cost of rescue was about NT$1.2 billion. In addition, until October 31, 2024, the U.S. Dispensary Act, or ADS, which is circulated abroad, accounted for about 3.9 million units, accounting for about 10.8% of the company's circulation abroad. These are the financial indicators and comparisons of the third quarter of NMT in 2024. Next, Chairman, please provide us with the future business outlook. Chairman, please.
spk02: As the demand for end-of-the-line products is not correct and is affected by customer standardization, we expect that the third quarter of the business will be the peak of this year. Therefore, the business performance of the fourth quarter will be relatively conservative. However, overall, the sales in the second half of the year are still better than in the first half of the year. In this large environment, the strategy will be to prioritize the improvement of the driving force. From the perspective of individual products, in terms of the sales power of the second-generation products, it is affected by the weak need to adjust the customer inventory, which means that there will be minor corrections in the fourth quarter, The power of low-range products remains the same. Flash products and NetFlash products are affected by the lack of demand for consumer products, and the power has been slightly adjusted. The power of low-flash products has been adjusted due to the relationship of customer seasonal adjustment. In terms of drive IC, because of the lack of demand for TV, and the impact of customer back-up adjustment on mobile phones, the power of D4G There will be a certain level of repair in the future. In addition, there is a demand for the car panel. Customers are also in different levels of repair due to the situation of the market and storage. Therefore, the capacity of the product to move ICs in the fourth quarter is greater than that of the first quarter. In addition, in addition to continuing to promote its own priority, The simplified project is also conducting a low-cost silver-chlorinated gold-plated verification with customers. Currently, the reliability test of the medium-sized panel has been carried out continuously. The domestic and foreign customers are very interested in this project. There are already some customers who have continued to be interested in the product. In the future, it can enhance our competitive advantage in automating ICs and maintain the growth momentum of subsequent operations. Therefore, our long-term operations It's still very optimistic. That's the end of the fourth season.
spk03: The next issue of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season of the fourth season If you need to cancel the question, please press the rice button and number 5. Thank you. If you need to ask a question, please press the rice button and number 1 on the phone. Thank you.
spk01: Hello everyone, my name is Ren-Ching. I would like to ask you about the earnings call that we had before. We know that CapEx will increase to 20% this year. We still have this prediction. If it is rollover to 2025, we also estimate that CapEx 3 sales to be 20% What numbers can you give us as reference?
spk00: Thank you. Regarding the CapEx in 2024, we estimate that it will be between 20% to 25% in 2024. I think we will try to control it above and below 20%. This is the range between 20% to 25% in 2024. As for 2025, it's still early. I think in 2025, we will try to control the capital as much as possible. I think it will be lower than 20%. I think if we can, between 15% and 20%, I think this is a profit. Thank you, Chair.
spk01: Another thing I want to mention about CapEx is that in the second half of the year, we had an increase of about 3% to 4%. What do we think about next year and the whole year? Because this year's CapEx rate is relatively higher, so next year we also estimate that the initial depreciation will be 3% to 4%.
spk00: I think in the third quarter of this year, there are about 1.2 billion people. We estimate that because this year's CapEx is still a certain degree of CapEx, so we estimate that this year's fourth quarter or next year's first quarter, I actually want to grow by 3% to 4%, there may still be this opportunity. If CapEx can be controlled between 15% to 20% as we just talked about next year, the increase in the cost of saving tax should be a little bit lower.
spk01: I understand. Thank you. I'm sorry, I want to ask about this, although it's only been a little bit since 2005, but there are several questions I want to ask. The first one is, because at the same time, we have seen that in China, there are some companies like Hubei Electronics, Huicheng, or to make some Oleds or other test machines. It's also quite a process. Next year or in the middle of the year, how will the company use what kind of technology to operate these medium-sized companies in a low-cost competitive situation? I will answer your question. Our company is promoting a product called
spk02: Galaxy's突kai Galaxy's突kai is to replace the used materials From the current point of view, many customers Because the price of gold is rising very quickly Many customers have already designed it Relatively speaking, it can greatly reduce this cost Of course, it is also the company's patent So in this regard, it can maintain a better advantage Another one is the optimization of the product At the same time, we are also looking for other applications that do not support IC, such as DDR5, RDL, or Power Management to replace these drives. I understand.
spk01: Thank you very much, Mr. Chieh. I would like to ask, because we just discussed the driver IC, the momentum is relatively We've also seen some large-sized
spk02: In terms of TV, there are some expectations. In addition, in terms of storage, the expectations are almost the same. So at present, I think the worst situation is probably the current situation.
spk01: I understand. Then I would like to ask about We now see that some of the new IT designers who have just been listed in Taiwan, some of their competitors are quite active in OLED or other product lines. Including them, or like the mid-term entrepreneurs, in the future, how will we use to get their orders delivered.
spk02: In this regard, in general, we and the new business owners, I think what you just mentioned is the company that just launched the description meeting. We have been cooperating with iQIYI since 2009. Then in 2019, because of the increase in TDIQ, So for now, we are the top five in terms of business. In terms of OREC, they are also very active. We are a partner in this field. So we have a certain location here. In addition, I just mentioned that we are in the field of silver and copper, and we are cooperating with them in this field. In terms of the performance, we will have a higher coverage.
spk01: Thank you, Chairman. Chairman, I'm sorry to ask this question. The question is about the future. The future, because at present, I see that most of these large factories, these automobiles, are also in a state of decline. Do you think that next year, in this first round, with NAND here, do you think that the recovery situation is relatively better? Which piece of this, its recovery situation in 2025, or in the near future?
spk02: In terms of memory, I think no matter what the situation is, the amount is definitely there. But in terms of consumer electronics, I think the price pressure is the same for everyone. In addition, you just talked about the new growth service, which is DDR5 and low power DDR4. We are currently more concerned about this one. In this regard, we are cooperating with some cards outside the country. In addition, Thank you, Chairman. Thank you. Thank you. Thank you.
spk03: If you have any questions, please press the button on the phone to enter your name and number. Thank you. Now it's time to ask questions. If you need to ask a question, please click on the button on the phone to enter the number 1. Thank you. At present, no one has asked a question online. We will hand over the time to Dr. Shen Gengxin. Dr. Shen, please. Thank you.
spk04: There is a question from a foreign speaker, Dr. Shen Jingyong. I will read it later. What he asked here is, will there be a chance to increase the acquisition rate of R&D technology next year?
spk02: This question is for Director Huang to answer.
spk00: Regarding the ratio, I think, generally speaking, of course, considering the ratio of the ratio, everyone will consider the operating capital of the company every year. In addition to operating capital and capital expenditure, of course, we also have to take care of the general interest. We have said in the past that the ratio principle or direction is about 40% to 60%. This is probably a direction of the company. Thank you, Chairman. Thank you for your participation. Today's meeting is over. You can leave now.
spk04: Thank you. Goodbye.
spk00: Thank you.
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