Monthly Sales Report for November 2024

Issue on: 2024/12/05

ELAN Monthly Sales Report - November 2024

ELAN Microelectronics Corp. (the Company), a leading touch controller solution provider in global NB market, announced its consolidated net sales of NT$ 981 million for November 2024, down 8.95% YoY and 9.52% MoM. Despite Q4 being the traditional slow season, customers continue to stock up on inventory in advance before Lunar New Year. Meanwhile, to mitigate the risk of tariff policy, some of customers are increasing the order and planning to pull in orders earlier and we are fully cooperating to meet order demands.

The company is actively collaborating and promoting AI features for application in new models, preparing to embrace the coming AI PC era. Observing the trend of customers incorporating more advanced features, such as fingerprint sensor and Haptic touch pad, we maintain optimistic on the long-term development of AI PCs. We are working closely with customers to expand in the AI market, striving to create maximum value together.

The sales breakdown in November 2024: Touchpad Module 46%, Touchscreen Controller 22%, Fingerprint Sensor 10%, Pointstick (PST) 16%, Microcontroller 4%, and 2% from the sales of affiliates. Touch applications, including biometric applications, accounted for 78% and non-touch applications accounted for 22%.

Affected by macroeconomic uncertainties, the recovery of consumer electronics has been slower than expected. However, the company continues to receive short-term boosts, and during the traditional slow season, there is still demand for stockpiling before Lunar New Year and shipments in response to tariff policy. However, NB related orders continue to grow, with some high margin products, including Pointstick and Touchscreen, have reached a better performance than we anticipated. The company is confident in AI PC trend with various

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models launch onto the market, which will also significantly benefit the company in the future. With the high computational power of NPU combined with CPU, GPU and edge computing, the growth momentum of entire supply chain will booth, highly improving work efficiency for enterprises and users, picturing a brand new NB market.

In the NB market in 2025, general market research institutions view the market positively as a gradual growth trend. With a fully prepared AI PC supply chain, most NB available in the market are expected to be equipped with AI capabilities, growth in 2025 is expected to be more significant. Integrating AI-functional hardware chips and software into NB will change the long-standing traditional ecology of the NB market to improve the individuals' or enterprises' productivity demands which are the focuses of the NB industry chain.

ELAN will continue to focus on "content value increase", through existing AI technology to integrate AI functions, algorithms and data to provide better total solutions, which will raise our chips or modules prices to drive up the operating efficiency.

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