Asustek Computer Inc Regs

If you have any questions, you can ask them on the website. We will answer after the briefing. Thank you. Now, let's have the Finance Minister make the briefing.

Thank you. Hello, everyone. I would like to apologize to everyone for the delay in the previous internal meeting. We had a delay in the legal meeting today, so I am very sorry. We will soon move on to the topic. Please take a look at the 5th page of the video. The 5th page shows the third quarter of the year of 2025. The third quarter of the year, the brand revenue reached NT$1,899 billion. The annual growth is 21%. This revenue is actually another record of the brand's single-year revenue re-innovation. The main promotion of revenue comes from the product line of business users, including servers and commercial computers. The profit of the third quarter reached NT$8.4 billion. The profit of the third quarter reached NT$10.5 billion. The profit of the third quarter reached NT$8.4 billion. The profit of the third quarter reached NT$10.5 billion. The profit of the third quarter reached NT$14.2 billion. The profit of the third quarter reached NT$12.9 billion. The profit of the third quarter reached NT$4.4 billion. From the perspective of the interest rate, the interest rate in the third quarter has improved to a certain extent compared to the second quarter. In the middle, the main promotion includes the entire business environment. There is a turmoil between tariffs and exchange rates. In the third quarter, it is a situation that is more likely to stabilize. The various products and goods of FASO are also achieved according to the company's expectations, or a little more than that. This is what we achieved in the third quarter. Please take a look at the sixth page. This is the main project of the brand's market share chart. In the third quarter, interest revenue was about $600 million, investment revenue was about $1.6 billion, and interest rate revenue was about $1.2 billion. The share profit was about $9.6 billion. So the total revenue from the third quarter is about NT$3.7 billion. Please refer to it. If we look at the seventh page, this is the asset balance sheet of the brand. The main change in operations may be the cash part held by Huasuo. At the end of the third quarter, it was about NT$6.2 billion. This is mainly corresponding to when Huasuo In fact, we have reached the single-year new high of brand revenue once again. So, with the expansion of the revenue scale, we also need to increase the investment in the transportation project, the storage, revenue, and payment accounts. So it is mainly supporting the growth of the operating scale. If you look at the week-to-week weather, because of the increase in revenue, the average week-to-week weather for the third quarter is about 98 days, and the change in the current weather is 102 days. It is in a stable state. Let's take a look at the 8th page, which is about the distribution of Microsoft's brand revenue. From the product category, the system market share is 53%, the open platform market share is 45%, and the IoT market share is 2%. From the region, the Asia region's share is 46%, the European region's share is 32%, and the American region's share is 22%. Let's take a look at the 9th page. This is our proposal for the 4th quarter. First of all, I would like to explain that the 4th quarter is our traditional seasonal quarter. Because it includes a product line like the main motherboard display card. And we have a market that has a leading market share, such as the Asia-Pacific region. The first two seasons will focus on the third season of the new year. So from the third season to the fourth season, Chinese traditional seasonality is a weak season. In this year's fourth season, there are also some other factors, including since the second quarter of this year to the fourth quarter, due to tariffs and the uncertainty of the general economy, it has caused some mistakes in the delivery and consumption mentality, or in the situation of pre-purchasing and pre-consumption. This has also significantly affected the market needs and consumer confidence in the fourth quarter. At the same time, in terms of product cycle, because of the two core businesses of Huasuo, including e-sports products, their product platform has started a new product cycle from the first to the second season of this year. The product cycle of AIPC may start in the first half of the year of 2026. So the fourth quarter is also the transition period of the product cycle. After considering these factors, we proposed the export outlook for the fourth quarter. In the part of the PC product, it is about 10-15% year-on-year. The share of the shareholder and the shareholder is about 5% to 10%, but the annual growth rate is likely to reach 40% to 50%. So in general, the overall revenue of a company in the fourth quarter should continue to achieve a strong annual growth trend. We will also do more good strategic planning and Thank you.

Good evening, investors and media friends. First of all, I would like to welcome you all to participate in the Q3 of FASO 2025. I am Director-General Xu Qianyue. Next, I will introduce our future strategy and outlook. In Q3 of 2025, although the entire market has changed dramatically, there are also many outside disadvantages. However, in the case of all colleagues dying, we still handed out very good results. In Q3 of 2025, Huasuo brand revenue reached NT$1,899 billion, annual increase reached 21%, and created a record of single-year historical high. Here, I would also like to thank all colleagues for their efforts and customers' support. The future growth of China will focus on the following three big pillars. The first is the game market, the second is the consumer market, and the corporate market. As mentioned, the corporate market includes the very popular AI Server related product business. As shown in this video, in our performance composition, the related business in the game market accounts for about 41%, the related business in the consumer market accounts for about 29%, and the related business in the corporate market accounts for about 30%. This combination supports both our short-term growth trend and long-term diversified development. At the same time, we also see that several major business blocks have achieved strong growth year-on-year, especially in the business of the corporate market, which has achieved a growth of 100% annual growth, and game business has also achieved positive growth in YYY. Therefore, we are full of confidence in this year's annual revenue growth. In addition, although there are different BUs in China that are responsible for different product lines, the business of these three product blocks is actually a combination that allows us to achieve and at the same time improve the brand positioning of China and strengthen the goal of expanding the market share. Among them, game related business is still our most important business project. It can not only improve the image of the brand, but also bring higher returns. The business of the consumer market is focused on maintaining reasonable profits and expanding the overall market share. The business of the corporate market is our fastest growing project. It is also the project with the most investment resources in the past two or three years. This is due to our correct strategy and the strong demand for products such as AI server and edge computing. We will continue to use innovation and customer commitment as the core to drive growth. Looking forward to the future, Microsoft will continue to use users as the center, using outstanding products, services, and integrated solutions to deepen the influence of games, consumption, and the business market, and become a reliable technology partner for global enterprises, creating continuous value for customers, partners, and shareholders. Next slide. Next, let's talk about our product strategy for AI. Our current strategy is Ubiquitous AI, Incredible Possibilities. We strive to create an efficient and reliable AI ecosystem for our customers, as well as a complete solution. We hope to use the most extensive and optimized products and services to help industries quickly land on AI applications. We provide comprehensive products, software, and services for the entire artificial intelligence ecosystem, covering artificial intelligence infrastructure from cloud-based artificial intelligence to edge-based artificial intelligence equipment and artificial intelligence applications. The above products and services are the core of the user based on flexibility, speed, cost, and all-round resources to ensure that customers can get the most out of various application scenarios. Our product covers the largest AI server, to the personally used Copilot Plus PC and Edge IoT devices. as well as covering work spaces, creators, healthcare, industry, and daily artificial intelligence, as well as different application scenarios and solutions in various industries. We are committed to building these barriers so that companies and consumers can quickly deploy artificial intelligence technology and application determination. Microsoft's solid AI ability to promote broader product layout, from cloud, edge, software, to physical AI, to create a complete ecosystem. I think this is a very popular topic in recent years, and many people are very concerned about it. In particular, we believe that AI technology has made rapid progress in recent years. in the future, there will be a lot of growth in the next few years. In fact, ASUS has long seen this trend and has long invested in related resources. In fact, I think in 2016, we launched Xampple. In 2024, we announced to Meta that we are cooperating on smart glasses. This is a very good example. Next slide. Here, I'd like to share with you an example of an AI technology application in China, and its actual benefits. We created a smart AI assistant on the online e-commerce website of China. We call it AI Assistant. This AI assistant is driven by AI technology. The system provides 24-hour timely resources and smart response. Our starting point is to use people as the basis. We hope to be able to interact with customers in a deeper way. to provide a lower maintenance cost for the overall operation and achieve a higher order conversion rate. After the actual import, we see that after the smart AI assistant is imported, it is converted into measurable business results. There are probably a few below. What customers feel is a more individualized interaction. The recommendation rate of e-commerce businesses has also increased by 7 times, and the order conversion rate has increased by 11 times. Our e-commerce team, through intelligent and automation, has reduced the cost of overall resources and services. Compared with the cost of real customer service, the cost of customer support for each case has been reduced by 95%. Through the recommendation and support functions of artificial intelligence drive, the overall conversion rate has also been increased. The number of views on the page has increased by 7 times, and the interaction time has also increased by 8 times. These are all very good results that we have seen so far. In the next few weeks, we will continue to track and expand the online business of different areas to provide better services to customers. Next page. In addition, as one of the leading manufacturers of e-sports ecosystem and the first brand of e-sports products, Microsoft's ROG continues to advance our products and diligently manage the entire ecosystem. Recently, Microsoft and Xbox have successfully brought the console experience into the field of Windows consoles, and launched the ROG Xbox Ali. As soon as this product was launched, it was awarded the Best Invention Award at the Time Magazine in 2025, and received the same praise from many media outlets. After absorbing the feedback from many first-generation Ally customers, we increased the capacity of the battery, optimized the design of the exterior, and the overall heat dissipation, and cooperated with Xbox to make the user interface a complete update. to make the overall user experience more similar to a single-use game console. After the launch of the new product, with strong performance and smooth experience, it has gained the praise of many consumers, the media, and KOL. At the same time, it has created a hot sales performance, further consolidating ROG's leadership position in the high-end gaming ecosystem. In addition to the launch of new products, we continue to deepen the business of the entire community, and at the world's largest game exhibition GamesCon, which is at the Cologne Game Exhibition, we show our latest e-sports innovations and organize related events at the exhibition to gather the global gaming community, ROG's innovation experience and the 30th anniversary of the graphics card to interact with the players. Fans have shown their love for ROG's live events, creative activities, and social interactions around the product and the year-end celebration. The lively crowd and online sharing have further strengthened ROG's spirit of innovation and the brand image of players. Through Gamescom, ROG has successfully ignited the popularity of the global community, strengthened the emotional connection between brands and players, and demonstrated our spirit of players as the core brand and continued innovative leadership. Next slide. Thank you. This year marks the 30th anniversary of ASUS' graphics card business. We launched our first graphics card in 1996. Over the past 30 years, ASUS has continued to lead in graphics technology and has accumulated over 130 million graphics cards. Connecting these graphics cards can go around the world for a week. Each graphics card carries the passion for innovation of ASUS and the commitment to global players. This is not just a solid achievement, but also symbolizes the innovation and trust of ASUS in the eyes of global players. In order to celebrate the 30th anniversary of the creation of the graphics card, we released the 30th anniversary limited edition of ROG MATRIX GeForce RTX 5090 during the Cologne Game Show. Not only does it show our ambitious engineering technology, this 30th anniversary limited edition graphics card has the highest working frequency of up to 2730MHz and offers the highest performance. At the same time, it also shows our close cooperation with NVIDIA. The media and fans focused on the performance and design of the Matrix RTX 5090. NVIDIA's global sales director for GeForce, John Miller, also attended the Gamescom event to celebrate NVIDIA's long-standing partnership with China in the past 30 years. In the past 30 years, Microsoft's display card business has been very successful. Our market strategy is actually quite simple. The leading advantage of the product, in addition to the deep cooperation of partners and active community participation, can bring long-term competitive advantages. Our cooperation with NVIDIA is an excellent example. not only to jointly develop high-end graphics cards, but also to jointly design the entire marketing strategy of the market, integrate graphics card heat dissipation and appearance design, and organize related community activities to improve the influence of both brands. The few photos posted on this PPT clearly show this strategy. This is our introduction to the 30th anniversary of the graphics card industry. Next, I will give the floor to Sanden. Sanden, please give us more details. Thank you.

Okay. Thank you, Mr. Chen. Hello, everyone. I am Chief Executive Officer Hu Shubin. I will now share with you some of our key strategies and the results of the third quarter. First, I would like to share with you the key direction and strategy of our growth. First of all, we maintain a stable leadership position in the consumer market. Whether it's consumer PC or marketable, we continue to contribute to the company's stable revenue and profit. Secondly, in the e-commerce market, we continue to dominate the leading position in the market. As the world's first e-sports brand, we use complete product line, innovation, and immersive experience, and at the same time, we promote community management to continue to strengthen our leadership advantage in the e-sports market. . . . . . . . . Thank you. . . . . That's it. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Thank you. . . . . . . and one of the manufacturers of GB300. This also fully displays our excellent design capabilities in the AI market, as well as the strength and efficiency of early implementation. At the same time, we have received large orders of CSP of multiple global weight classes, which has expanded the operating scale and competitiveness of FASO in the market. On the other hand, in terms of version cards, we continue to maintain the G14 status, the first in the G14 market. Especially, the display card has grown more than 30% in the third quarter. Among them, the product combination of the RTX50 series has reached 80%. This not only promotes the upgrade of the entire market, but also brings a unique gaming experience to global players. In addition, our third-generation display has grown by more than 20%. In particular, in the high-end OLED electronic display, it has gained market-level praise, and sales have skyrocketed. This also highlights the leading position of Huawei in the high-end display market and the electronic market. Thank you. As for the AIoT 4月群, the overall third quarter growth was between 10% to 15%. Among them, the newly launched Ascent GX10 fully showcased the advanced layout in the field of HAI. This one provides a high-tech AI supercomputer with petaflop-level computing capabilities. . . . . . to realize the vision of AI without a hand. This also represents the determination of FASO to be a leader in the solution of AI. In addition, I would like to share with you that at this year's Taipei Automotive Exhibition, ASUS IoT uses AI without a hand to create a new industry as the theme, and shows the integration of end-to-end AI software. Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Thank you. 那我想這些都充分展現華碩的卓越的這個品牌信義 那持續的創新承諾以及以人為本的這個企業文化 那這些都提供華碩整個品牌所有產品現在市場以及在所有全球的消費者裡面的一個地位的一個肯定 謝謝各位

謝謝執行長及財務長,現在進行QA時間,若您有問題要提問,請在網頁左側問號處提問,我們將在彙整所有問題後進行回答,謝謝。

Okay, the first question is from Kaiji Tohku. I would like to ask the company if there has been a significant increase in the price of memory and SSD recently. The company's ability to store and prepare for this aspect, as well as the impact on the interest rate, will this increase be transferred to users in the future? Thank you.

Okay. Okay. China China China . . . . . Of course, we will continue to work closely with all of our D-RAN solid state suppliers to respond flexibly. This includes further improvement of storage. That's it. I don't know. I don't know. I don't know. Thank you.

The next question is from Morgan Stanley and some other legal media friends. I would like to ask, when the company is in its third quarter, does the AI system account for the overall revenue? If we look at the output of GB200 or GB300, how is the company's output? Thank you.

Let me explain this question. If you have participated in our previous conference, you may have heard about our previous estimate of the revenue ratio for the AI server. I think our previous estimate was about 10% to 15%. During this period of time, the market of AI server is very hot. As you can see, the YOY of the entire AI server in Q3 this year is actually 100%. So currently, we can see that within ASUS, the entire AI server occupies almost 20% of the total volume. Of course, some of them are not related to AI server-based revenue. However, the ones with the highest percentage are more than 80% related to AI server-based revenue. Of course, I think everyone is very concerned about the shipment of GB300 and B300. As I mentioned earlier, we are the first batch of shipments. In September, we have already shipped to the relevant customers. So, the entire shipment situation is quite smooth. I think, of course, we will set a very aggressive target within ourselves. Because, basically, in the field of AI server, Thank you.

Okay, let me answer this question.

. . . . . . . . . . . . China China China China China China China China China Thank you.

The next question is from JP Morgan. I would like to ask the CEO, regarding the growth outlook of the PC market in 2026, and the export ratio of AIPC for next year, ASUS has always regarded AIPC as a strategic axis for growth. Could you please share with us the strategy that ASUS will put forward and the goals it aims to implement?

Okay, let me explain this question. I think for the overall PC market view, we believe that in 2026, we believe that the total market volume will be about 2% to 3% of the total market volume. I asked about the AIPC part. I think we can also talk about in terms of this year and next year. AIPC has two different definitions. One is the so-called Co-Pilot Plus PC of Microsoft. In terms of the definition of a system that requires Microsoft to have 40 TOPS NPUs, We estimate that this year's total volume will be between 8% to 10%. We estimate that by next year, there should be more than 20% chance. Another relatively loose definition is Intel's definition is that as long as your system has this NPU part, According to this definition, this year's AIPC will be very close to 30%. Next year, we believe that the entire market share will break between 50% and 60%. Originally, we all expected that AIPC would have a chance to bring a lot of growth in the overall volume of the PC. But because of the current situation, Because the whole application related to AI technology is not as fast as it is expected to be in the case of PC. So now the growth of the entire AIPC is at a more normal speed. But in fact, as I just said, From 30% to 50%, I think this is not too slow. So, in fact, in this part, we still regard AIPC as a very important point for us internally. In terms of the market share of AIPC this year, from Q1 to Q3, the share of AIPC in China has exceeded more than 25%. I think with this market share, we are still ranked first in the market. Of course, we will continue to work hard on this part. Because in fact, AIPC, as I just said, in addition to hardware, I think the biggest impact on customer experience is the so-called software. How to make These truly AI-empowered software brings consumers a very different experience. I think this is the key to enabling AI PCs. Of course, this is not something that can be done by just one company. We are also discussing this with many software companies. Thank you.

The next question is from EastBrain. I would like to ask about the company's current view on tariffs and its impact on profit. What is the company's view on the future of the profit and loss ratio? Let me explain this question. In fact, in the third quarter of this year, in addition to achieving the new high of the single-season, there are two other improvements that have been positive for the long term. The first is that we have established the third corner of the corporate market in terms of the overall combination of operations, in addition to the already quite strong consumer and e-commerce markets. So from a long-term perspective, we think this is a relatively more balanced and more resilient operating combination. In the same way, with the help of the high-innovation scale of the third quarter, our third quarter's profit and loss rate has also returned to the 4% to 5% that we had originally set. This is what we are looking forward to, to see the company achieve this kind of profit improvement in advance. In terms of tariffs, up to now, most electronic products are still able to apply such a regulation. So for most electronic products, the current impact of equal tariffs is relatively limited. We are also continuing to pay attention to the 232 semiconductor tariffs. What kind of decision and implementation will it be in the future? But in terms of the current political and economic situation, we are looking forward to Taiwan's industry and Taiwan's government's efforts. After the lockdown, there won't be any special pressure or impact on Taiwan. After going through a short-term surge like tariffs and exchange rates, we expect that in the long term, FASO will maintain a profit margin of 4% to 5% as a company's operating target. Of course, in a different product cycle and a different market cycle, the profit margin may have a reasonable gap. However, if the time is accumulated to a certain period, let's say for a year, we hope to achieve a profit margin of 4% to 5% every year, as our reasonable goal. Thank you for your reference. you Thank you.

Thank you.

We have a question from a global audience. The company has just explained its outlook for the fourth quarter. If we simply use the product of the version card, what is the goal of the Q&Q set by the company for the fourth quarter?

Okay, let me explain this question. Maybe in our report just now, we have mixed the version card with the AI Server part. Because the growth rate of the entire AI Server is high, so maybe the questioner of this Global Human Resource wants to know the part of the separate version card. In fact, in terms of the part of the separate version card, Thank you.

The next question is from TFB. I would like to ask, which countries are the main exporters of China's gas products? Is it the global CSP of Tier 2? Will there be a plan to invest in gas production and capital expenditure in the United States in 2026? Thank you.

Okay, let me explain this question. I think in the past, most of the customers of Microsoft's serverless orders are mainly second tier CSPs in Southeast Asian countries, or customers of NCPs in Southeast Asian countries. I think this year we can have a relatively high growth rate because we have received CSP from Europe and the United States. The order volume of these customers is relatively large, so we will see a growth rate of more than 100%. I think this part, in fact, in the United States, the customer made a deal. Because of some of Trump's policy requirements, I think we will definitely invest in the U.S. production line. Thank you.

Thank you.

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We see that there is a question regarding the display card. If we use the new X50 platform to calculate, what kind of test rate will the new platform have? Thank you.

Okay, let me explain this question. I think we have already mentioned in our report that in fact, the cooperation between Microsoft and NVIDIA has actually lasted for a very long time and the relationship is very close. So, especially the release of new products, I think every generation of new products will be very important, and will also invest a lot of resources to make some differences. So, usually when a new product is released in every generation, our market share is very good. With the release of the 50 series this year, I think the market share we have seen so far is more than 30%. I think this should be the number one position. This is why we have reached more than 30% in the entire YOY of Q3 this year. I think this is a very important reason.

Thank you. Next question. I would like to ask, do you currently see a demand for a server in the corporate market? including the new product of GX10 mentioned in the video. What is your perspective on the product and its competitive strategy? Thank you.

Okay. In summary, it is a very cost-effective supercomputer. In terms of the capability of the order we have received so far, it probably belongs to the relevant units that are needed to develop AI at the local level. This includes a lot of new companies, as well as a lot of big tech companies' laboratories. That's right. Thank you.

Thank you.

The next question is from Nan Shan Ren Shou and some other legal experts. The company mentioned that if the QOQ delivery of the 4th season version is in line with the standard, it means that there will be a discount in the 4th season. Is there a special reason for this? And for the delivery of the AI server in 2026, is there a initial capability and goal? Thank you.

Okay, let me explain this question. Thank you very much to the French friend who asked this question. You are very thoughtful. Actually, I think the server is mainly for 2B customers. In fact, for 2B customers, basically every company has its own server construction process. Because there are so many things to consider in the AI server construction. In addition to the machine room of the server, there is electricity, and these cooling related accessories, etc. So in this part, we will adjust it according to the customer's needs. So it depends on when the customer asks us to ship. In addition, in the part of 2026, I think the market of the entire AI server is still very hot. I think in the second half of this year, the learning of the memory is related to the investment of CSP. Because of the demand of HVN, it is very important for the performance of the entire low-temperature factory. As soon as the demand for HVN of the AI server came up, the entire low-temperature related to PC Thank you.