Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — 1-3Q 2024 Earnings Presentation
24 slides from Zhen Ding Technology's earnings presentation, Nov 8, 2024
Slide 1: Zhen Ding Technology Holding First Three Quarters of 2024 Investor Conference
Zhen Ding Technology Holding (4958 TT) First Three Quarters of 2024 Investor Conference November 8th, 2024
Slide 2: Safe Harbor Notice
Safe Harbor Notice ◼ Zhen Ding Technology Holding′s statements of its current expectations are forward looking statements subject to significant risks and uncertainties and actual results may differ materially from those contained in the forward-looking statements. ◼ Except as required by law, we un
Slide 3: Agenda
1 Financial Results for the First Three Quarters of 2024 Eddie Chiang, Chief Financial Officer AGENDA 2 Company Strategy Charles Shen, Chairman 3 IC Substrate Business Update D.J. Lee, Director & Chief Operating Officer 3
Slide 4: Financial Results for the First Three Quarters of 2024
Financial Results for the First Three Quarters of 2024 Eddie Chiang, Chief Financial Officer 4
Slide 5: 1Q~3Q24 Financial Results
1Q~3Q24 Financial Results (Unit: NT$ million, unless otherwise stated) 1-3Q24 1-3Q23 YoY (%) Revenue 115,531 97,002 +19.1% Gross Profit 20,990 15,781 +33.0% Gross Margin 18.2% 16.3% +1.9ppts Operating Expense 14,958 12,875 +16.2% Operating Profit 6,032 2,905 +107.6% Operating Margin 5.2% 3.0% +2.2pp
Slide 6: Quarterly Operation Results
Quarterly Operation Results Revenue 2023 2024 Unit: NT$ million +21% YoY 54,396 50,609 +3% YoY +38% YoY 41,919 31,545 32,510 32,411 23,537 10,000 1Q 2Q 3Q 4Q 6
Slide 7: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1-3Q24 Revenue NT$115.5bn 1-3Q23 Revenue NT$97.0bn 1-3Q24 Applications Automotive/Server/ Revenue YoY% Automotive/Server/ Base Station & IC Substrate, Base Station & IC Substrate, Others, 5.3% Mobile 3.5% Others, 4.6% 11.9% 5.5% Communication Computers Computers a
Slide 8: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2024-9-30 2023-9-30 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 64,714 24.9% 59,979 24.2% 4,736 +0.7ppts Notes & Accounts Receivable 35,675 13.7% 32,141 13.0% 3,534 +0.8ppts Inventories 24,799 9.5% 22,311 9.0% 2,487 +0.
Slide 9: 2013-2023 Financial Summary
2013-2023 Financial Summary Unit: NT$ million Period 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 151,398 Gross Profit 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537 39,888 27,459 Net Income 6,735 7,731 3,456
Slide 10: Company Strategy
Company Strategy Charles Shen, Chairman 10
Slide 11: Business Review and Outlook
Business Review and Outlook 3Q24 revenue set a record high for the same period. All four major product applications delivered QoQ and YoY growth: 1 3Q24 revenue achieved a robust growth and marked a record high for the same period, increasing by 56% QoQ and 21% YoY. Revenue for Mobile Communication
Slide 12: One ZDT: We Offer A Full Range of PCBs for AI
One ZDT: We Offer A Full Range of PCBs for AI From AI Edge Devices to AI Servers – AI Increases Design Complexity for PCBs ZDT Offers the Most Comprehensive and Advanced PCBs for All Kinds of AI Applications 臻鼎AI營收占比 Zhen Ding: Revenue Cloud Contribution from AI Related Products AI Server Edge Serve
Slide 13: One ZDT Strategy Achieved Desired Results, with Record Highs
One ZDT Strategy Achieved Desired Results, with Automotive/ Server and IC Substrate Revenues Setting Record Highs ZDT’s 3Q24 Revenue for Automotive/Server/Base ZDT’s 3Q24 Revenue for IC Substrates Station Continues to Reach a Record High Reached a Record High for Four Consecutive Quarters 1Q22 2Q22
Slide 14: AI Server: Actively Engage with Customers for Future Generation Products
AI Server: Actively Engage with Customers for Future Generation Products 1 We are accelerating the development of PCB and IC substrate products for AI servers. 2 For high-end AI servers, customer demand for high-layer count (HLC) + HDI designs has increased. This is our area of expertise with a lead
Slide 15: Construction of Thailand Fab is Progressing According to Plan
The Construction of Thailand Fab is Progressing According to Plan, with Equipment Installation Scheduled by the End of This Year (Last Dec.) Thailand Prachinburi Park (Phase I) (2024/8/26) Thailand Prachinburi Park (Phase I): Beam-Raising Ceremony ◼ The construction of the new fab in Prachinburi Pro
Slide 16: Kaohsiung AI Park: R&D and Manufacturing Site for AI Products
Kaohsiung AI Park: R&D and Manufacturing Site for AI Products ◼ The Kaohsiung AI Park will be Zhen Ding’s key R&D and manufacturing site for AI related products, to cater to the rising demand of AI applications. 16
Slide 17: Establish Strategic Partnerships with Leading Companies
Establish Strategic Partnerships with Leading Companies 2024/6/17 – Advantech 2024/8/22 – TAIFLEX 2024/10/29 – DuPont Promote digitalization, intelligence, and Deepen collaboration in material research and Enhance end-user applications, advance sustainability of the PCB industry. development, supply
Slide 18: IC Substrate Business Update
IC Substrate Business Update D.J. Lee, Director & Chief Operating Officer 18
Slide 19: IC Substrate Business Update
IC Substrate Business Update IC substrate revenue has set new quarterly records for four consecutive quarters, increasing by 88% for the first three quarters 1 of 2024, which is consistent with our previous expectation: • IC substrate revenue increased by 88% YoY for the first three quarters of 2024
Slide 20: Challenges on IC Substrates in Advanced Packaging
Challenges on IC Substrates in Advanced Packaging The complexity of IC substrates is increasing: High layer counts Large body size Flat surface Accurate production precision 2005 2020 2026 Body Size (mm) 31 x 31 75 x 60 120 x 140+ x20+ Layer count (L) 6 20 28+ x4+ Bump Count 1K 100K 300k+ ~ 500k+ x3
Slide 21: New AI Applications Drive the Demand of High-end IC Substrates
New AI Applications Drive the Demand of High-end IC Substrates 3 3 BT Market Size ABF Market Size 2021~(5G Era) US$100mn 2011~(4G Era) • GenAI, Data Center 2001~(2G/3G Era) • 5G Communication, IoT, Autonomous Vehicles • Smartphone, Tablet • Computer • Computer • Feature phone Mkt Share 0 2005 2006 2
Slide 22: IC Substrate Goals
IC Substrate Goals NT$ 60 bn >50% 15%+/- Top 5 IC Substrate Capex: IC Substrate Revenue: IC Substrate Revenue: IC Substrate Market Share: Plan to invest NT$60bn 2023~2027 Revenue Account for 15 %+/- of Aim to become one of the from 2022~2027 CAGR >50% company’s consolidated global top 5 companies in
Slide 23: Q&A
A) BE HE Zhen Ding Tech. Holding Q&A 23
Slide 24: Thank You
od Co) MH ARAL i . THANK YOU
Zhen Ding Technology Holding — 1-3Q 2024 Earnings Presentation on 6ix