Zhen Ding Technology Holding Limited · TWSE:4958
Zhen Ding Technology — Q4 2024 Earnings Presentation
33 slides from Zhen Ding Technology's earnings presentation, Mar 11, 2025
Slide 1: Zhen Ding Technology Holding Fourth Quarter and Full Year 2024 Investor Conference
Zhen Ding Technology Holding (4958 TT) Fourth Quarter and Full Year of 2024 Investor Conference March 11th, 2025
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 4Q24 & 2024 Financial Results Eddie Chiang, Chief Financial Officer 2 Company Strategy Charles Shen, Chairman & Group Chief Strategy Officer (Group CSO) AGENDA 3 Digital Transformation & Empowerment Chen-Fu Chien, General Manager 4 Operation Planning & Execution D.J. Lee, Director & Chief Operatin
Slide 4: 4Q24 & 2024 Financial Results
4Q24 & 2024 Financial Results Eddie Chiang, Chief Financial Officer 4
Slide 5: 4Q24 Financial Results
4Q24 Financial Results (Unit: NT$ million, unless otherwise stated) 4Q24 4Q23 YoY (%) Revenue 56,133 54,396 +3.2% Gross Profit 11,471 11,679 -1.8% Gross Margin 20.4% 21.5% -1.1ppts Operating Expense 5,917 5,424 +9.1% Operating Profit 5,554 6,254 -11.2% Operating Margin 9.9% 11.5% -1.6ppts Non-Operat
Slide 6: 2024 Financial Results
2024 Financial Results (Unit: NT$ million, unless otherwise stated) 2024 2023 YoY (%) Revenue 171,664 151,398 +13.4% Gross Profit 32,461 27,459 +18.2% Gross Margin 18.9% 18.1% +0.8ppts Operating Expense 20,875 18,300 +14.1% Operating Profit 11,586 9,160 +26.5% Operating Margin 6.8% 6.1% +0.7ppts Non
Slide 7: Quarterly Operation Results
Quarterly Operation Results Revenue Gross Margin (%) 2023 2024 2023 2024 Unit: NT$ million 22.5% +3% YoY 21.5% +21% YoY 56,133 20.5% 20.4% 16.4% 54,396 50,609 16.1% 13.1% +38% YoY 41,919 +3% YoY 9.0% Net Margin (%) 32,411 11.1% 31,545 32,510 9.4% 9.3% 23,537 8.0% 4.4% 2.1% 2.7% 10,000 0.6% 1Q 2Q 3Q
Slide 8: Revenue Breakdown – By Applications
Revenue Breakdown – By Applications 2024 Revenue NT$171.7bn 2023 Revenue NT$151.4bn 2024 Automotive/Server/ Automotive/Server/ Applications Revenue Optical & Others, IC Substrate, Optical & Others, YoY% IC Substrate, 4.7% 4.1% 3.3% 5.2% Mobile Communication 5.5% Computers and Computers and Computers
Slide 9: Consolidated Balance Sheet and Key Indices
Consolidated Balance Sheet and Key Indices Unit: NT$ million 2024-12-31 2023-12-31 Change Amount % Amount % Amount % Cash and Cash Equivalents (2) 79,830 30.0% 65,970 27.2% 13,860 2.8ppts Notes & Accounts Receivable 30,959 11.6% 29,503 12.2% 1,455 -0.5ppts Inventories 17,990 6.8% 15,508 6.4% 2,482 0
Slide 10: 2015-2024 Financial Summary
2015-2024 Financial Summary Unit: NT$ million Period 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenue 85,738 82,393 109,238 117,913 120,068 131,279 155,022 171,356 151,398 171,664 Gross Profit 16,427 12,542 17,833 26,061 27,222 26,584 30,537 39,888 27,459 32,461 Net Income 7,731 3,456 6,772
Slide 11: Company Strategy
Company Strategy Charles Shen, Chairman & Group CSO 11
Slide 12: Business Review and Outlook
Business Review and Outlook 2024 revenue increased by 13.4% YoY, exceeding previous expectations and reaching a record high, maintaining as the world’s largest PCB manufacturer for 1 the 8th consecutive year: Among the four major applications, Mobile Communications, Servers/Automotive/Optical, and I
Slide 13: General Manager Dr. Chen-Fu Chien's Profile
General Manager Dr. Chen-Fu Chien’s Profile Education: ► 1985-1990 Bachelor’s Degree with double majors in Industrial Engineering and Electrical Engineering (Phi Tao Phi Honor), National Tsing Hua University (NTHU) ► 1992-1994 Master’s Degree in Industrial Engineering, University of Wisconsin-Madiso
Slide 14: ZDT Outperforms Industry Average, Maintaining #1 Position
ZDT Outperforms Industry Average, Maintaining #1 Position 2024 Global Top 10 PCB Companies Revenue Trend ZDT Maintains a Leading Market Share in the PCB Industry Unit: US$ million 6,000 Maintain at Global #1 for 8 Consecutive Years ZDT 7.3% 5,000 7.0% 7.0% 6.8% 6.8% 4,000 6.3% 6.3% 6.1% 3,000 4.9% 4
Slide 15: All PCB Segments will Continue to Grow in 2025
All PCB Segments will Continue to Grow in 2025 100% 80% ICS 60% HDI 40% FPC 20% RPCB 0% 2019 2020 2021 2022 2023 2024 2025(F) 2026(F) 2027(F) 2028(F) 2029(F) 2029(F)單位：百萬美元 2024-2029 Product Item 2019 2020 2021 2022 2023 2024 2025(F) 2026(F) 2027(F) 2028(F) CAGR Value 31,969 32,674 40,641 38,720 34,
Slide 16: 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 ZDT: Revenue Contribution Cloud from AI Related Products AI Server Edge Server High
Slide 17: Construction of Thailand Fab Progressing According to Plan
The Construction of Thailand Fab is Progressing According to Plan, with Trial Production Scheduled on May 8th (Dec. 2023) Thailand Prachinburi Park (Phase I) (2024/8/26) Beam-Raising Ceremony (Feb. 2025) Thailand Park Current Status ◼ The phase 1 of the new fab in Prachinburi, Thailand, began equipm
Slide 18: 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, with a focus on providing high-end products. ◼ IC Substrates: We have announced an investment of NT$8bn in equipment to establish a full-pro
Slide 19: Continued Capacity Expansion, Pursuing Stable Growth
Continued Capacity Expansion, Pursuing Stable Growth Capex Capex/Sales (%) Unit: NT$ million 0,000 22.0% 20.1% ◼ As the world's largest PCB manufacturer, we position ourselves as a growth-oriented 5,000 16.9% 17.2% company, continuously adopting our “Early 16.5% 31,149 17.0% 0,000 29,032 Deployment”
Slide 20: EPS + ESG – Improvement of ESG Ratings
EPS + ESG – Improvement of ESG Ratings ► Corporate Governance Evaluation Ranking ► ISS ESG Rating Ranked between 6% to 20% in the 2024 Corporate Governance ISS has upgraded our ESG Rating from "C" to "C+," granting Evaluation for listed companies and selected for inclusion in Zhen Ding "Prime" statu
Slide 21: Digital Transformation & Empowerment
Digital Transformation & Empowerment Chen-Fu Chien, General Manager 21
Slide 22: Digital Transformation + Semiconductor Supply Chain Engagement
Digital Transformation + Semiconductor Supply Chain Engagement Semiconductor Supply 1 Digital Transformation 1 Chain Engagement Operation Supply Industry-Academia 2 Smart Manufacturing 2 Chain Collaboration Senior Talent Recruitment 3 AI Empowerment 3 and Development 22
Slide 23: Smart Fabs for Semiconductor Industry
Through Smart Fabs, Zhen Ding Strives to Be an Essential Partner to the Semiconductor Industry Smart fabs for Industry 3.5/4.0 Unified Identification Big data Management War Room AI Machine Learning CAD CAM CAE PDM PLM CRM SCM Integrated Engineering Design/Planning Systems AQC/APC/AEC ERP/SCM FDC To
Slide 24: Introduce Smart Manufacturing and Digital Transformation into Each Fab
Introduce Smart Manufacturing and Digital Transformation into Each Fab Step by Step to Drive Manufacturing Excellence Under the One ZDT strategy, smart management has been implemented in phases across different fabs. By the end of 2024, 9 new fabs had adopted smart management, while 6 existing fabs
Slide 25: Aim to Continuously Increase Per Capita Productivity
Aim to Continuously Increase Per Capita Productivity ► By enhancing operational efficiency through digital transformation and smart fabs, Zhen Ding’s goal is to achieve continuous revenue growth by 2030 while optimizing workforce management to ensure a steady increase in per capita productivity. Zhe
Slide 26: Operation Planning & Execution
Operation Planning & Execution D.J. Lee, Director & Chief Operating Officer 26
Slide 27: Server/Automotive/Optical Business Update
Server/Automotive/Optical Business Update In 2025, revenue from servers, automotive, and optical will continue to grow. Within the server segment, AI servers will 1 be the primary growth driver: We have successfully expanded from general-purpose servers into AI servers. With the expertise in key man
Slide 28: IC Substrate Business Update
IC Substrate Business Update 1 IC substrate revenue grew by 75.6% YoY in 2024, with the growth rate far exceeding the industry average: • Our IC substrate capacity is strategically focused on high-end products. Our ABF substrates benefited from strong demand for Chiplet and 2.5D advanced packaging p
Slide 29: One ZDT Achieved Desired Results
“One ZDT” Achieved Desired Results, with Continued Growth in Server/Automotive and IC substrates ZDT’s Revenue for Server/Automotive/Optical ZDT’s Revenue for IC Substrates Continues Continues Delivering Double-digit Growth Setting a New Quarterly Record 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q23
Slide 30: Actively Connect with the Semiconductor Supply Chain
Actively Connect with the Semiconductor Supply Chain Zhen Ding has been actively engaging with semiconductor industry organizations and collaborating closely with the supply chain to explore market opportunities in emerging technologies. Member of SEMI Member of Member of Silicon Photonics SEMI Pack
Slide 31: 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 32: Q&A
A) BE HE Zhen Ding Tech. Holding Q&A 32
Slide 33: Thank You
od Co) MH ARAL i . THANK YOU
Zhen Ding Technology Holding — Q4 2024 Earnings Presentation on 6ix