United Microelectronics Corporation (NEW)

Welcome everyone to UNC's 2025 Second Quarter earnings conference call. All lines have been placed on mute to prevent background noise. After the presentation there will be a question and answer session. Please follow the instructions given at the time if you would like to ask a question. And for your information this conference call is now being broadcasted live over the internet. Webcast replay will be available within two hours after the conference is finished. Please visit our website .unc.com under the investor relations, investors events section. Now I would like to introduce Mr. Michael Lin, head of investor relations at UNC. Mr. Lin, please begin.

Thank you and welcome to UNC's conference call for the second quarter of 2025. I am joined by Mr. Jason Wang, president of UNC, and Mr. Chih-Tung Liu, the CFO of UNC. In a moment we will hear our CFO present the second quarter financial result, followed by our president's key message to address UNC's focus on third quarter 2025 guidance. Once our president and CFO complete their remarks, there will be a Q&A session. UNC's quarterly financial reports are available at our website .unc.com under the investors financial section. During this conference we may make forward-looking statements based on management's current expectations and beliefs. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including the risks that may be beyond the company's control. For more detailed description of these risks and uncertainties, please refer to our recent and subsequent violence with the FCC and the RLC security authorities. During this conference you may view our financial presentation material which is being broadcast right through the Internet. Now I would like to introduce UNC CFO, Mr. Chih-Tung Liu, to discuss UNC's second quarter 2025 financial results.

Thank you, Michael. I'd like to go through the 2Q25 investor conference presentation material which can be downloaded or viewed in real-time from our website. Starting on page 4, second quarter of 2025, consolidate revenue was $58.8 billion NT dollars, with their growth margin at around 28.7%. The net income attributable to the stockholder of preparing was $8.9 billion NT, and earnings per ordinary share was $0.71 NT dollars. Welfare treatment in quarter 2 increased to $957,000, up about .3% quarter over quarter. However, the effective NT dollar exchange rate also appreciated a similar magnitude from 32.89 in Q1 to 30.81 in Q2. And utilization rate increased from 59% in Q1 to 76% in Q2. Revenue as a result increased about .6% sequentially to $58.75 billion NT dollars. Growth margin, as we mentioned earlier, reached .7% or $15.8 billion NT. This is already affecting around 3% of the forex impact, 3% point, in quarter 2. Net income reached $8.8 billion NT, or .1% net income percentage rate. EPS is $0.71 NT dollars in second quarter compared to 0.62 in the previous quarter. On page 6, for first half comparison, net income increased by .7% to $115 billion NT. Growth margin reached .7% compared to .1% in the same period of 2024. Net income attributable to the shareholder of the parent for first half of 2025 was $15.67 billion NT or $1.34 in EPS terms. Cash remained over $100 billion, which is about $111 billion NT at the end of first half of 2025. Total equity for the company is now around $337.04 billion NT. HCI just a little bit in the second quarter, mainly due to the better bottom net. On page 9, for revenue breakdown, there is literally no change on a sequential comparison basis. Euro increased by 20% and Asia reached about 67%. IBM edged up slightly to 19% compared to 18% in the previous quarter. In terms of application breakdown, the changes are also very minor. Consumer went down to 33% by 1% and communication increased by 1% to 41%. Advanced technology revenue continues to increase and now revenue below 40 nm represents more than half of the total revenue, which reached 55% in quarter 2, when 22 and 100 nm represent 40% of the company total revenue. On page 13, the capacity breakdown, we will continue to see some minor capacity increase. For the third quarter, the capacity increase will come from mainly 12x in China. After the first six months, our Paypal budget for year 2025 remains unchanged at an estimate of $1.8 billion. The above is the summary of UMC results for second quarter 2025. More details are available in the report which has been posted on our website. I will now turn the call over to President of UMC, Mr. Jason Wong.