Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — H1 2023 Earnings Presentation
24 slides from Zhen Ding Technology's earnings presentation, Aug 9, 2023
Slide 1: Zhen Ding Technology Holding 1H23 Investor Conference
Zhen Ding Technology Holding (4958 TT) 1H23 Investor Conference August 9th, 2023
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 1H23 Financial Results Ms. Sharon Wang, CFO IC Substrate Business Update AGENDA 2 Mr. D.J. Lee, Director 3 Company Strategy Mr. Charles Shen, Chairman & General Manager 3
Slide 4: 1H23 Financial Results
1H23 Financial Results Ms. Sharon Wang, CFO 4
Slide 5: 1H23 Results Highlights
1H23 Results Highlights 1 The unfavorable macro environment and weak end demand have led to an industry-wide overcapacity. This combined with pricing pressure from customers resulted in a 19.5% year-on-year decline in revenue for the first half of the year. 2 We remain optimistic about future indust
Slide 6: 1H23 Financial Results
1H23 Financial Results (Unit: NT$ million, unless otherwise stated) 1H23 1H22 YoY (%) Revenue 55,082 68,450 -19.5% Gross Profit 7,198 12,990 -44.6% Gross Margin 13.1% 19.0% -5.9ppts Operating Expense 7,867 7,303 +7.7% Operating Profit (669) 5,686 Operating Margin -1.2% 8.3% -9.5ppts Non-Operating In
Slide 7: Quarterly Operation Results
Quarterly Operation Results Revenue Gross Margin (%) 2022 2023 Unit: NT$ million 2022 2023 26.0% 26.3% 19.1% 18.8% 52,902 50,004 16.1% -7% YoY -32% YoY 9.0% 34,534 Net Margin (%) 33,915 14.3% 31,545 13.0% 10.8% 23,537 8.2% 2.7% 0.6% 10,000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 7
Slide 8: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 1H2022 Revenue NT$68.5bn 1H2023 Revenue NT$55.1bn Automotive Radar/Base Automotive Station/Server/Others, Radar/Base 3.5% Station/Server/Others, IC Substrate, 5.1% IC Substrate, 4.5% 3.5% Mobile Mobile Communication, Communication, 53.5% 68.0% Computers and Comput
Slide 9: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2023-6-30 2022-6-30 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 59,916 26.8% 44,480 21.5% 15,436 +5.3ppts Notes & Accounts Receivable 17,496 7.5% 24,951 12.1% (7,455) -4.6ppts Inventories 13,784 5.9% 20,941 10.1% (7,157
Slide 10: 2011-2022 Financial Summary
2011-2022 Financial Summary Unit: NT$ million Period 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenue 44,280 55,369 64,483 75,954 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 Gross Profit 6,993 10,775 11,894 14,323 16,427 12,542 17,833 26,061 27,222 26,584 30,537
Slide 11: IC Substrate Business Update
IC Substrate Business Update Mr. D.J. Lee, Director 11
Slide 12: IC Substrate Business Update
IC Substrate Business Update 1 Bottoming out in the first half of the year, gradually recovering in the second half: • The current market downturn is primarily attributable to high customer inventories. However, the ABF market continues to perform well in certain applications such as AI and HPC. Ove
Slide 13: AI Application – Chiplet Substrate
AI Application – Chiplet Substrate AI Chip Solution Chiplet Substrate Single SOC (System on Chip) High-speed Data Larger die size, more Computing Transmission complicated manufacturing HBM HBM process, and higher costs HBM SOC HBM AI applications require high-speed Chiplet computing capabilities and
Slide 14: ABF Fab's Yield is On Par with Tier 1 Players
ABF Fab’s Yield is On Par with Tier 1 Players Qinghuangdao BT Substrate Fab: Shenzhen ABF Substrate Fab: FCBGA FC-CSP/WB-CSP/Memory 14
Slide 15: IC Substrate Capacity Expansion Plan
IC Substrate Capacity Expansion Plan 2023 2024 2025 2026 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Installation Fab 1 Sample certification SZ ABF (Mid-to high- Substrate end products) Full utilization, target yield: Mass production, target yield: comparable to tier 1 peers Plant comparable to
Slide 16: 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$60bn 2023~2027 Revenue Account for 15 %+/- of Aim to become one of the from 2022~2027 CAGR >50% company’s consolidated global top 5 companies in
Slide 17: Company Strategy
Company Strategy Mr. Charles Shen, Chairman & General Manager 17
Slide 18: 1H23 Review and Outlook
1H23 Review and Outlook 1 In 1H23, we faced headwinds, and focused on product development and operational efficiency optimization: Affected by weak demand in consumer electronics and customer product transitions, our 1H23 revenue decreased in line with industry trends. However, during this period, w
Slide 19: All PCB Segments Will Resume Growth Next Year
All PCB Segments Will Resume Growth Next Year 100% IC ICSSubstrate 80% 60% HDI 40% FPC+Module FPC 20% RPCB (Multilayer) RPCB 0% 2017 2018 2019 2020 2021 2022 2023(F) 2024(F) 2025(F) 2026(F) 2027(F) Unit: US$ million 2022-2027 Product Item 2017 2018 2019 2020 2021 2022 2023(F) 2024(F) 2025(F) 2026(F)
Slide 20: Five Major Global Manufacturing Campuses
Five Major Global Manufacturing Campuses China Qinghuangdao Multiple manufacturing campuses to fulfill clients’ needs Qinghuangdao BT Substrate Park Park Phase 1: mass (FPC & advanced module production in 2022 /SLP High end HDI) China Huai’an India Huai’an Park 1 Huai’an Park 2 Huai’an Park 3 (RPCB/
Slide 21: Zhen Ding Plans to Build a New Fab in Thailand
Zhen Ding Plans to Build a New Fab in Thailand Strategic Collaboration with Local Partner Prachinburi Province, • In response to customer demands and to expand the group's Thailand. global footprint. • Location will be in Prachinburi Province, Thailand. • Investment amount of the first phase is US$2
Slide 22: EPS + ESG – Improvement of ESG Ratings
EPS + ESG – Improvement of ESG Ratings ESG Evaluation Results ESG Highlights and Achievements ► Corporate Governance Evaluation Ranking ► Greenhouse Gas Emissions and Energy Management Ranked between 6% to 20% in the 2023 Corporate Governance In 2022, greenhouse gas emissions (scope 1 and scope 2) p
Slide 23: Q&A
way) FFT BIEL Zhen Ding Tech. Holding Q&A 23
Slide 24: Thank You
a Cy) RHR THANK YOU
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