Q1 2025 Himax Technologies Inc Earnings Call
Speaker Change: Hello, ladies and gentlemen. Welcome to the Heimax Technologies Inc. First quarter 2025
Speaker Change: At this time, all participants are in the list, only mode. Later, we will conduct a question and answer session, and instructions will follow at the time. As a reminder, this conference call has been recorded.
Speaker Change: Now I will let you turn the conference over to Ms. Karen Teng, head of IR, NPR, and Himax. Ms. Dow, go ahead, please.
Speaker Change: Welcome everyone to the Heinex First Code, 2020 Fire Learning School. My name is Karen Tao, Head of IRPID at Heinex. Joining me today are Jordan Wu, President and Chief Executive Officer, Jessica Ken, Chief Financial Officer.
Speaker Change: After the communist-prepared comments, we have allocated time for questions in a Q&A section.
Speaker Change: If you have NIO, you save a copy of today's result, release. Please email XX underscore
Speaker Change: or if I am ex at an MV group by US, as is the press release on financial portals, or download a copy from Himax.net for us via www.himax.com.htw
Speaker Change: Before we begin the former remarks, I would like to remind everyone that some of the statements in this conference call, including statements regarding expected future financial results and industry growth are below looking statements.
Speaker Change: They involve a number of risk and uncertainties that could cause actual events or results for different materialities, although they describe in this contrast code.
Speaker Change: Excessful companies were year 2024 financials, which were provided in the company's 20S and firewalls at DC on April 2nd, 2025.
Speaker Change: The financial information included in the coverings call is unauthicit and confiscated and prepared in accordance with IFRS accounting.
Speaker Change: Such information is generated internally and has not been subjected to the same review and scrutiny, including internal auditing procedures and external audits, but it depends on the auditors.
Speaker Change: to which we subject our annual confirmed data findings and statements and may vary materially or to take the confirmed data financial information for the same period.
Speaker Change: The company undertakes no obligations to public leave, update, or revise any formal statements where as a result of new information, future events or otherwise.
Speaker Change: On today's call, I will refer to review the highest compound dating to financial performance for the first quarter of 2025, followed by our second quarter outlook.
Jordan: Jordan will continue to update on the stages of our business.
After reach, we will take questions.
Jordan: You can submit your questions online through their webcasts or if I spawned.
We will reveal the financial on the ISR expenses.
Jordan: Despite the difficult situation, let's slow down due to the number of year holidays.
Jordan: We are pleased to announce that our Q&A revenue was at the high end of Project E-Rage issue on February 13, 2025. It was margin-remaning line with the guidance, why the project is located in the guidance range.
Jordan: First for the revenue registers, 215.1 million dollars, a decrease of 9.3% sequentially reaching the high end of our guidance rate of the decline of 8.5% to 13.5% by the second of three points of the increase year over year.
Jordan: Ghost Margin was 30.5% in line with our guidance of around 30.5% for from last quarters and out from 29.3% in the same period last year.
Jordan: The year-over-year increase was driven by available product mix and continued close optimization.
Human profit per diluted ADS was $0.1144
Jordan: Exceeding in the guidance range of 9.0 to 0.0 percent, for narrowly due to a lower operating
Jordan: Revenue from large dissuade drivers, came in at $25.0 million, fled from last quarter despite the seasonal downturns.
Jordan: This was primarily driven by the spinnersburg by Chinese government subsidies, and that they revive the domestic consumption.
Jordan: Noble, Amanda I.C. Cells, Professor, recorded solid double digit growth in Q1.
Jordan: In contrast, TVIZ self-declined as expected due to customers fully foreign their inventory purchases in the final quarter.
Jordan: Sales of large financial driver ICO accounted for 11.6% of total revenues for the quarters compared to 10.5% last quarters, and 50.1% a year ago.
Jordan: Revenue from the small and medium-sized display driver's thickens total of $150.5 million. Reflecting the sequential decline of 9.8% in the difficult low season.
Jordan: However, the automotive driver's self, including both the traditional BDIC and TDI, I prefer our guidance of a low-team, specialty client to claim just the single-digit from the last quarter.
Jordan: The sequential decline resulted in the winning effect of the Chinese government renew the trade stimulus, announcing mid-August 24, while the remaining other major market-reminced
Jordan: Q1 over ourselves the world's nearly 20% year-over-year, reflecting and going past the movie I Am's hour of technology and the strength that will contact us the most.
Jordan: Our other multi-business, comprising DDIC, TDI, TECON, and OLE IC cells, we amend the largest revenue contributor in the first quarter, representing more than 15% of total sales.
Jordan: Meanwhile, Dr. Ma'sho and Tepplet are both self-decided and expected and made a sub-year festival season.
Jordan: Mr. Lowe and the media and such revised estimates accounted for 17.0% of total sales for the quarter compared to 7.3% in the previous quarter and 6.5% a year ago.
Jordan: The sequential decline was primarily attributable to the essence of a one-time F-16 consumer dual-leading projected costum in the fire-coated, coupled with the moderation in altered multi-tiered construction at the several quarters of L'Obacier-Greau.
Jordan: Let being said, our position in a local community can be in an unrivaled support by increasing ventilation and adoptions on leaf panel meters to your suppliers and automotive manufacturers around the world.
Jordan: We also have a robust supply of over 200 design wind projects that are set to gradually enter mixed production in the coming years.
Jordan: Non-Driver products accounted for 18.4% of top-own revenues of compared to 19.2% in the previous quarter and 15.4% a year ago.
Jordan: The first quarter already expenses were $45.7 million, a difference from 7.0% for the previous quarter and a decline of 9.1% from a year ago.
Jordan: First quarter of early income was 19.1 million dollars on 9.2% of sales, compared to 9.7 of sales last quarter and 4.8% of sales for the same period last year.
Jordan: The sequential decrease was mainly a result of lower self, offset by lower operating expenses.
Jordan: First quarter FX profit was $20.0 million or $0.114 per diluted ADS
Jordan: Compared to $24.6 million or 40 cents, Presidency 80 is last quarter and are from $12.5 million or 71 cents in a superior last year.
Turning to a balance sheet
Jordan: We had $281 million dollars of cash, cash equivalent, and other financial assets of the March 31st
Jordan: This compares to 277.4 million dollars in the same time last year and the 224.6 million a year ago.
Jordan: As of March 31, 2025, we had 33.0 million dollars in long-term unsecure loans with 60.0 million and being the current position.
Our quarter-end inventory of March 31, 2025 was $129.9 million.
Jordan: Lower than 158 points for the median, less quoted, and 201.9 million dollars then period last year.
Jordan: Our inventory removal has barely declined for ten consecutive quarters, so it's picking during the COVID-19 pandemic when the industry was under growing the supply shortage.
Jordan: DSO was 29 days in quarter-end of compared to 96 days left quarter and 23 days a year ago.
Jordan: First quarter capital expenditure was 5.2 million dollars, versus 3.2 million dollars last quarter, and 2.7 million dollars a year ago.
Jordan: First quarter of CAPFs were the many for R&D related equipment for our ICD type business, and ongoing construction of new preschool near our time and headquarter the children of employees.
Jordan: The preschool is scheduled to open in 2026, and we are forcing our commitment to a family-friendly workplace.
Jordan: For you today's call, we announced an annual test dividend of 37.0% per idiot.
Jordan: $12.64.5 million and payable on July 11, 2025, with a payable ratio of 81.1% of the previous year's
Jordan: Hi, Max, we'll continue focus on maintaining a healthy balance sheet, or driving sustainable long conglomerate to deliver value, or shareholders to high distance and share
Jordan: As of March 31, 2025, MS had 115.9 million ideas outstanding. I challenge you from that quarter.
Jordan: and the fully diluted spaces. The total number of ideas outstanding for the first quarter was 155.1 years.
Now, on 10 June , the second quarter, 1025 guidance.
Jordan: We expect second quarter revenues to decrease 5.0% to increase 3.0% to increase 3.0%
Jordan: Of course, margin is expected to be around 31.0.0%, depending on the pattern mix.
Jordan: The second quote of traffic attributable to Shea Holder is estimated to be in the range of 8.5 to 11.5 cents per fully diluted ads.
Jordan: I will now turn the call over to Jordan to discuss our cheer to 25 outlooks. Jordan, the floor is yours.
Thank you, Karen.
Jordan: To start off, I'd like to quickly comment on the recent abrupt and significant additional appreciation against the US dollar.
Jordan: All of Heimax's red means and nearly all of our coastal soils are well-denominated, providing the natural hatch for iron and cellular activities.
Jordan: In addition, the bulk of our R&D spaces set for employees' salaries are also even done
Jordan: For a police organization, the major item of our innate fences, for our employees, are paid in the low currency of their location for their salaries, their bonuses are all US-other-based.
Jordan: Other major have known US dollar expenses, more than $3.20 of them are related, include utilities and income tax expenses.
Jordan: Why we don't hatch for currency risk of our own US dollar based upon the expenses that the cost of such hatching would usually outweigh the benefit?
Jordan: We do purchase a D-dollar in advance to cover the income tax payable thereby minimizing the
Jordan: Now, I would like to comment on the recent announced, on the recent deal announced U.S. parrhythmic measures which have intensified global trade tensions, triggered by the TNT and
Jordan: Currently terrorists have not had a significant direct impact on Himax's business.
Jordan: Although IC products are not directly exported to the US, instead they are assembled into corners or modules by customers outside the United States and they sell it to the global market.
Incodiate the regular stage.
Jordan: Just a language of all portions, about 2% of how many of these products are shipped directly to the United States.
Almost all of these products are made for sure the entire world.
Jordan: For some customers have requested additional instruments to avoid terrorist duties, many others have opted to deter the orders of meat ongoing terrorist-related atrocities.
Jordan: The key to the second half of the year of World Machimitability remains close with the world continually to close the monetitative element of terrorist incociations.
Jordan: Heimax is deeply its work's temporary supply chain in Taiwan, or for the strength in its supply chain presence in China, Korea, Singapore, and other regions to ensure production flexibility and cost competitiveness.
and to better mitigate your physical risks.
Jordan: To meet the bulk of micro-environment, most panel customers have adopted a met-to-order model, and are typically increasingly
Jordan: In response, we are cared for the voluntary whoever starts, maintaining low inventory levels and continuously controlling over the expenses.
Jordan: Currently, we are further optimizing costs by diversifying both foundry and back-and-pagoget testing, while mitigating risk and enhancing manufacturing flexibility.
Jordan: with products now in mass production and adopted by million automakers.
Jordan: This now only validates our diversify supply chain strategy, by authorizing the scores of steadfast commitment to scaling capacity and cost optimization.
Jordan: Turning to the automotive market of the multivariate business currently accounts for George Harsh, Donnie Teng, Jordan Wu, Donnie Teng
Hymex: Having served the automobile in display monthly for almost two decades, Heimax has maintained a balance global market share across major regions.
Hymex: We are then illustrating technological leadership and offering the industries most comprehensive
Hymex: Combined with over a decade of glorious relationship with global T-1 suppliers and automotive brands, these trends help mitigate potential risk from tariffs and reinforce the long-term stability of automotive business.
Hymex: In addition, Hymnets remains committed to a number of innovative fields, namely, our natural power AI, AI gases, and co-package optics of CTO.
Hymex: Technologies in these areas are approaching maturity and offers substantial growth potential.
Hymex: As a pioneer and leader in kidney technologies, enabling these normal areas, Himax is working closely with supply chain partners, from technology development through to mass production.
to actively expand new business opportunities.
Hymex: These innovative fields are relatively less effective when making aerodynamic fluctuations. And customer development efforts have not slowed due to tariff uncertainties.
Hymex: We expect these businesses to contribute, meaningfully, to both break name and growth margin in the years ahead.
Hymex: Despite the volatile geopolitical environment, Himax continues to actively explore high-growth markets.
Hymex: He said we should close partnerships with industry living companies and continue to expand our global footprint, quality weather in longer competitive advantages.
In our latest cross-order cooperation,
Hymex: We established a three-party strategic alliance with Paul Chip and Paul Egan Tronics, the subsidiary of product groups in years, our largest and multi-blurgeococomerate.
Hymex: This collaboration combines Tata Electronics' lead manufacturing and local supply chain integration strengths, Palmchip's mature web manufacturing capabilities,
Hymex: and Himax's BDF display IC and OXI, as well as power ICS and C Technologies to jointly create a powerful ecosystem.
The Collaboration Echoes
We are made in India's strategy of the Indian government.
Hymex: For high-tech areas, hire exploring the huge potential demand of the India market.
Hymex: With that, I will now begin with an update on the large panel drive-out business.
Hymex: In tune to love this plane, draw away his sails, I am expected to decline by a single digit sequentially.
Hymex: proven by customers pulled forward orders placed in iron quarters against the backdrop of Chinese carbon subsidies, boosting domestic consumption.
Hymex: Monitoring normal guidance sales are expected to decrease the Q2 whereas our TMI guidance sales are set to increase sequentially, driven by higher shipments to key and cost of price.
Hymex: Looking ahead in a novel sector, we are observing a growing trend for premium notebooks to adapt all the displays and advanced touch features, partially feared by the rights
Hymex: In addition, we are expanding our high-speed interface product portfolio to support further data transfer rates, lower latency and improved power efficiency.
Features that are critical for nature as in this place.
Hymex: We have made progress on the next generation EDP 1.5 display interface for T-Cunt, for both CLCD and other panels.
Hymex: The high-speed interface supports high frame rates, no power consumption, attentive seek, and high resolution.
TV shows essential for lecturers in their DCs.
Hymex: Through ongoing portfolio expansion and continuous technology innovation, HiRex is well positioned to lead in a relatively evolving landscape of AIB seeds and premium outputs.
Hymex: Telling to the small and media side of this private business, in due to small and media side of this private driver of this business, it is expected to decline single digit from the last quarter.
Hymex: We expect you to, or the most enjoyable resource, including for the D.I., a traditional D.I.C. to decline, maintain, sequentially.
Hymex: reflecting the combined impact of tariffs and the winning effect of China's automotive
This fight is near from Hathley.
Hymex: Hermes's cumulative shipments of automotive D.I. have all paid competitors, with nearly 500 divine projects secured to date, the majority of which have yet to as much production.
Hymex: On top of a continuous influx of new pipelines and design ways across the port, we are well positioned for a continuous growth, further reinforcing our leadership in this space.
Hymex: For automotive TDIC, we continue to see solid shipments for the automotive TDIC for longer non-touch applications, including cartoid plates, SUVs, and rear and rear and side view mirrors.
Hymex: Our evidence is further strengthened by the growth of proliferation of advanced technologies such as LVD, LVDI, or at last, CUSS and its portrayal integration in large display car models.
Hymex: Hermit is the pioneer in built-in D.I. technology, which supports similar integrated
Hymex: physically larger than the inches or spanning peter to peter across the entire width of the
Hymex: Such panels typically require 4 or more LTDM chips, and at least one of them is a T-Cup product panel.
This current platform adopts more of Himex's automotive I.C.E. offerings.
Hymex: Not only reflects strong customer loyalty toward technologies, but also signifies an increase in contemporary force on a propellant basis.
Hymex: How many continues to lead the global automotive display market, holding the 40% share in DVIC, over 50% in TDI, and even higher share in continuous low-demic TK technologies?
Numbers of smartphone in tebliari and sales.
Hymex: We expect you to smart form IT's revenues to decline meetings from last quarter.
Let go of it on all the business.
Hymex: In the automotive oil market, we have forced strategic alliances, we've been in panel makers in Korea, China and Japan.
Hymex: As OLED technology expands beyond premium car models, Himax is where positioned to become the partner of choice and accelerate OLED adoption in vehicles.
Hymex: by capitalizing of our strong presence and proven track record in automotive LCD displays.
Hymex: The region, our first mover advantage, we offer a comprehensive suite of solutions including DDIZ, TKAN, and also touch controllers.
Hymex: It's worth noting that our advice on its own say or touch control technology, both an inter-treated signal-to-noise ratio, exceeding 45 TPs.
Hymex: is delivering reliable performance, even under challenging operational conditions such as God-wary, all the way to the center.
Hymex: The solution entered mass production in 2024, and an increasing number of these global brands are recklessly adopted for their premium car models.
Hymex: We expect to be a key beneficiary of the shift to all that it plays for the automotive industry over the next few years. I am knocking the new girls' driver for us, that further re-imposis our working leadership.
and the decision.
Hymex: We have expanded our comprehensive order to follow into the tablet and novel markets, covering DDIZ, T-Con and touch controllers through partnerships with all the panel makers in Korea and China.
Hymex: Several new projects are stated to a demonstration with cocktail brands later this year.
Hymex: Meanwhile, we are developing regulatory features such as active sizes and gaming models to further enhance our product differentiation and competitive effects.
Hymex: In the smartphone of the market, we are making solid progress in our collaborations with customers in Korea and China, and expect mass production to start later this year.
Hymex: I would like to now turn to our long drive-by-see business update, where we expect the second cornering to increase low-pins sequentially.
First, for the update of our T-com business.
Hymex: We anticipate Q2 T-car sales to increase high-teens sequentially, primarily due to increased shipping of T-car for no-book and automotive products.
Hymex: Automotive ticker sales are set to increase by double digits in Q2, fueled by a strong pipeline of over two high-grade design-width projects, gradually entering mass production.
Hymex: with a steady influx of new projects coupled with growing medication and widespread adoption of one of our TVTK in both premium and mainstream car models worldwide.
Hymex: Heimax continues to maintain an archived leadership position with the dominant Mark Schwalenberg.
Hymex: In a second quarter, we expect TKR visits to account for over 12% of all of the bills, with not about contributions from automotive TKR.
Hymex: Our industry-leading lobotomy T-Cut eliminates the post-cut effect often seen in SUDs caused by backlight leakage typical of conventional TSA LCD panels
It is a very crisp, high fidelity images on the windshield.
Hymex: Oh, I don't want to take our business. It's well positioned for our girls over the next few years.
Hymex: Su Xingqiu is to the White Xi, Ashuloh Power AI Center's Institution, a cutting-edge and point AI integration featuring industry-deeds, Ashuloh Power AI processor, always on CMOSI sensor, and CNN-based AI algorithm.
Hymex: In the rapidly evolving AI landscape, Wi-Fi AI technology stands out for its expertise in all device AI, categorized by remarkably low power assumption, operating at a single digit
Hymex: and April is AI functionality, inventory-powered, endpoint devices. Additionally, Wi-Fi AI significantly extends battery life, and improves all data processing efficiency.
by how low the impact from the main processor.
Hymex: These attributes are locked near to TNT's across a wide range of everyday fancy power and point applications.
Hymex: Evidence by production of Wi-Fi AI across diverse applications, including Norfolk's
So there is system, axis control, small retail, and many others.
Omnobul
Hymex: Building over the surface of their notebooks, whether AI is expanding into additional
Hymex: The current assumption is for the field by the rise of the RITC.
Hymex: its wide-size, archival power, all-device inference capabilities align seamlessly with the industry's shift towards more intelligence, context-aware and energy-efficient computing.
Wi-Fi's advanced local interested technology enables real-time high-position user engagement.
Hymex: Detection by analyzing presence, emotion, supporting the process of intelligent features, such as [inaudible]
Hymex: Case Tracking, Special Expression Reformation, Voice Command, Adaptive Screen TV, Secure Identity, Authentication, and many others.
This features enhanced interactivity.
Wai Zai: Once I also continue to achieve significant market success in the course of various sectors, such as Smart O'Lock, where we will introduce the world's first Smart O'Lock with 24th, 7th century monetary.
Poverty, Biometric Exist, Puzzle Resonation, and NIPage Production.
Wai Zai: Several of these very right solutions are for mass production later this year.
Wai Zai: One side also powers smart retail. It's identified by our collaboration with E-Link on E-Sandage.
Speaker Change: It's always on AI tech viewers, such as gender, appearance, and age.
Follow my read-in-time personalised edits.
I'm sorry, I'm sorry, I'm sorry, I'm sorry
Next, I will update on my Wi-Fi module business.
Equip, which pre-trained, no cold or a no cold AI.
Speaker Change: Our Wi-Fi modules simplify our excretion and support diverse use cases, including human presence detection.
Jordan H. Recommission
Just show your recognition.
Fizz, Max, Worst Command Bench
thermal image sensing, power and authentication, and people flow management.
Speaker Change: The London, the Himax Paramell Module, has generated strong engagement across several industries. Multiple design warnings have been secured with mass production, either way, my global customers, for smiling.
Speaker Change: Of course management and smart backlog as we continuously explore additional application opportunities.
Speaker Change: Meanwhile, to meet growing demand for flexible access control, you varied settings.
Speaker Change: The operating device, our pump and suite, now combines pump and recognition and feature recognition with P-hole camera input.
Speaker Change: These are pretty relevant module, not only enhances security by offering multiple layers of biometric verification, but also ensures adaptability across the range, the wide range
Speaker Change: These attributes make it particularly appealing to global brands looking to differentiate their products. We didn't have security, but we used convenience and flexible customization.
Whiteside: Looking ahead, Wi-Fi is poised to scale rapidly across the broader AILP market and emerge as a key growth driver for Himax in the years ahead.
Whiteside: Separatedly, we are bringing the intelligent actual power always on the eye sensing to the eye glasses.
Whiteside: Howard, by real time, Contest the Wear AI running a single-digit mini-watt, Wi-Fi uniquely.
Whiteside: are the diverse tool essentials for active devices, instant responsiveness and all-day better
Whiteside: These advantages have already led to why the AI has been adopted by a leading AI classes platform. We are not going into any new encasement. We are allowing several other prominent global AI and AI techniques for the AI classes.
Whiteside: Why does I suppose always on our sensing, enabling AI devices to detect and analyze the surrounding environment in real time?
Whiteside: This empowers instance-free response and key functionality, such as object recognition, communication assistance, solicitation, and environmental mapping.
greatly enhancing the overall AR experience
Whiteside: providing critical data for more intuitive and natural user interactions in their applications.
Shabbat shalom.
Next we'll have to on WO.
Whiteside: As you may recall, in June 1924, Hermex, in partnership with 4C, the world leader in Silicon for Panic Connectors, has built a state of the world of Silicon for Panic Technology Technology, a critical technology to enable co-peggious optics of CPU technology.
Whiteside: This innovation of CTO integrates cyclophonic chips and optical connectors within management modules, replacing traditional metal wire transmission with high speed optical communication.
The Technology Significantly Interest by Weiz
Whiteside: Boosts a natural transmission rate. We do this signal loss and let it see the lower power consumption and significantly minimizes the size and cost of MCM.
Whiteside: Currently, the support shipments of our first generation, Silica Fultonis Pregnant Solution for engineer and vegetation and trial production are proceeding as planned.
We follow the settlement increase in the coming quarters.
Whiteside: In addition, Himax continues to advance its technology romance in close cooperation with
Talk to you later at 8 o'clock in the afternoon.
Whiteside: We are pleased to see our power in a faulty, achieving significant advancements in the consequences of our next packaging, with number of improvements in automated production
Whiteside: Together, we are actively progressing in process validation and yield optimization to enable
Whiteside: Heimax is exceptionally positioned to capitalize on future growth opportunities in high-performance computing AI inference and data center markets.
Whiteside: Alongside the CTO progress, certain global technology leaders are now engaging our WHO expertise to develop natural resources for our classes.
Whiteside: A testament to the market's growing confidence in Thomas W. O. Technology.
Whiteside: We strong growth opportunities from CTO and their classes in the making. We are as optimistic as ever that our WLO business can emerge as a significant revenue and profit engine for us in the years ahead.
Moving on to our latest advancement, you know, of course, my got this pretty close.
Whiteside: At this play in week 2025, next week in San Jose, we will debut our actual luminous audience, meaning sure they will age from the middle of course, not all this play.
Whiteside: Integrated both the illumination optics as the occult panel into an exceptionally compact perspective, as more as 0.00CC.
and Wayne only 0-2 grabs.
Point to grades
Whiteside: Wearing plasticine up to 350,000 nits brightness, and one movement output, it tests 250 min. 1 maximum total power consumption. Then, we'll straighten our period of optical
Whiteside: The luminance breaks through, ensures excellent high-level visibility, even in bright ambient conditions, while its compact form factor enables the development of sleek everyday
We see industry leading combat form factor, superior presence, and product literacy.
Whiteside: It is ideally suited for natural erosion A.R. Colossus and hemorrhage displays where space weight, thermal constraints are critical.
Gorilla Collaborations will be leading Donnie Teng company in the way.
We are committed.
Now take the long and cold advancements withheld, revitalize, they have gone to this market.
Whiteside: Trump is the expansion and unlock new opportunities for the most official experiences.
Whiteside: That concludes my report for this quarter. Thank you for your interest in TimeX. We appreciate your joining today for and are now ready to take questions.
Speaker Change: Thank you President Wu and ladies and gentlemen, we are now in question and answer session. If you would like to ask the question, please press star key and number one on your telephone keypad and you will enter the queue. After you are announced, please ask your question.
Speaker Change: If you find that your question has been answered before it is your turn to speak, you may press start, too, to cancel the question. Thank you.
Speaker Change: And in addition to submitting questions via form, you may also submit questions through the webcast, where the checkbox is available on the right-hand side of the screen. Thank you.
Speaker Change: Now please press start key and number one on your keypad if you would like to ask the question or you may submit your questions through the webcast system. Thank you.
Speaker Change: Ladies and gentlemen, we are now in question and answer session. You may press star key and number one on your keypad if you would like to ask the question. Thank you.
[inaudible]
Speaker Change: We do have a couple of questions from the online. The first question is, could we extend the validation process for CPL?
Speaker Change: The very patient process is now being conducted by our leading car, our being closely and ourselves, our leading customer and our foundry partner.
Speaker Change: and it is the working purpose at the moment and the process involved primarily the devastation of our current generation of products.
Speaker Change: as well as the newly developed equipment, including manufacturing assembly and testing equipment.
Speaker Change: are involved for the production of the product, and the equipment also includes the...
The manufacturing equipment for the ICU as well as the...
Speaker Change: are the equipment for the funding of the FBI together with the Coors.
Speaker Change: So it's going to be a challenge because not just the products but also the nutrition process are brand new.
It's a primarily in-house development.
Speaker Change: or the size of our high-necks as words falsely. However, we are...
Speaker Change: We believe that the progress is going well and we have a good commitment on the successful
Abort Technology Oh.
Speaker Change: I don't want to comment exactly one, although certainly there's a time limit for what I can, I can, or I can say it's like a very distant future. And once the meditation process is concluded, then now...
Speaker Change: For the particular worry part of the immediate expansion of their capacity, which would not take a long time. And that's how we were get ourselves ready for the mass production schedule for next year.
and in our preparing parts, we mentioned that the support should match.
Speaker Change: and these sample shipments are actually effective for the purpose of such a medication. So what's the medication that is done? And we'll certainly start the next phase which is trial production. I'll try to...
Speaker Change: You know, make sure, you know, nothing is going to go wrong and there also are for a yearly problem of an optimization. So, that's the R.
That's the mind.
Answered for the first question.
Oh!
[inaudible]
Speaker Change: Let's see the idea we never provide for you guys and we do comment on the...
Speaker Change: on the train, we have seen, but we never really, like, you know, the immediate order guidance, we never provide that. So, we have something to do with that at this moment, especially when the microacademic is so high.
Speaker Change: I would, I would, however, again make a certain qualitative comment on the disability of the second class and in short, this year is...
Speaker Change: of particularly low visibility as we all know, especially with tarage uncertainties. And another thing is we are seeing our customers.
Speaker Change: I did especially for the auto-demand in China and you will appreciate auto accounts for now about half of a total sales.
Speaker Change: may not be as effective as before because, you know, consumers have been through quite a bit of such things and now everybody is aware of the global uncertainty.
Speaker Change: So, that is a concern area for customers and that is reflected in our Q2 rather conservative guidance.
Speaker Change: because our customers are saying, you know, for the tariff, you know, how the tariff negotiation is good for nobody knows, and then...
Speaker Change: Another thing is, it's a sure Chinese government, likely it's going to notch new programs.
To boost the whole economy however, what is the progress?
Speaker Change: is a major unknown. We start so, so we were actually able to grow our automotive
This is about 20% of the last year.
Fourth, we'll shoot the throws. I think we are.
Speaker Change: A fairly commented in the shipping growth in new technology areas, i.e. TDI, TKLA, LTDI, because our pioneer in position and the strong design with pipelines in these areas.
Speaker Change: And I'll just point out again that I want Mark to share to you this new technology areas. I always are aware of 50% globally.
Speaker Change: And we have seen a positive adoption of such new technology. So in this area we are very committed.
Speaker Change: We may see some decline in the traditional D.I.C. area as we will continue to be partially replaced by the D.I.
Speaker Change: However, I would also like to point out the traditional D.I.C. work.
Speaker Change: Some types of automotive display, such as dashboard, side mirror, rear mirror, and SUV would never need touch function added.
Hello?
in a very unique proprietary thermal imaging sensing technology.
Speaker Change: We love the company because our technology and technology is a perfect fit.
Speaker Change: because in their very image and the proprietary design, there are some more sensors, these are
Speaker Change: and our optical solution can also be very effective to improve the optical design and in addition
Oh.
Speaker Change: Our ArcelorPower AI is a perfect fit for the thermal image sensing solution, because
Speaker Change: You know, the benefit of some old image, some old image compared to visual image such as the
Speaker Change: of Kiffin Privacy Concert, you know, the way, and also, it was well, in the international business, right? And that is certainly, those are the end-of-witnesses of simulations, or
Speaker Change: They are key components, actually, be something we can supply and provide very good support for that and also our special technology as well as probably the perfect fit.
Speaker Change: Some of our images together with our show called AICAD create a very good, very convincing implications for our joint customers.
Speaker Change: So, we are together working on new generation of design and we are to actively promote the technology together.
Whether it will portray shows or customer faces, and we...
Speaker Change: We believe obsidian's summary is really successful and hopefully we will see next year, hopefully we will certainly see a meaningful world.
is a very unique proprietary technology.
Speaker Change: to offer a similar image together with AI. We three develop cost, reasonable low cost.
Quire, you know, reasonable, reasonable solution.
Speaker Change: and the point of their stretch is very, very unique, uniquely low signal noise.
So, their application can be...
Speaker Change: So we are quite excited about this and so we are going to work very closely
Oh!
And what else?
Speaker Change: OHO EC, Minim IV, Remederation for CPM-related products. We mention...
Speaker Change: The last one is called, this field will only be central contribution, so they are...
Speaker Change: But we don't know where I'm going to comment exactly, so I would say, you know, by the time it starts, official mass production, the contribution will be meaningful, but so hopefully that will be...
Speaker Change: Support next year. Effectively?? next year, and we will not prepare to comment at
HELLO?
Speaker Change: The key role next for the CDO project right now. Again, we need to get the brother and the process very negative. And I think that's the...
Speaker Change: That's obviously the bottleneck. And certainly our customers will have their own technical challenges to deal with. But, again, I think it is everybody's objectives that we are going to bring this up to most production next year. And I think we are quite competent and excited about this joint objective. Thank you very much.
I think, let's, uh, let's, uh, let's hold it for all of you.
Questions? We received so far.
Speaker Change: Okay, and also as a final note, Karen Tiao, our head of IRRPR, where my name is Sir Wapetian activities, I continue to attend Mr. Coverances.
Speaker Change: Thank you President Wu and ladies and gentlemen, this concludes first quarter 2025 Ernie's conference. You may now disconnect. Thank you and goodbye.