Good afternoon and Happy New Year to everyone. Thank you for joining Novatek 2024 Q4 Online Earnings Call. This is David, Vice President and Company Spokesperson. I'll be the host for today's conference. Joining me on the call is Novatek's Vice Chairman, Mr. Steve Wong, our CFO, Mr. S.C. Chou, and our IR Director, Tony and Yvonne. The agenda for today's event is as follows.
First, Tony will report on Novatek's Q4 results in English. Following that, our Vice Chairman will provide further details on our Q4 results and the guidance for the Q1 of 2025. Next, we'll have a Q&A session. We've already received some questions from our investors, and if you have any further questions you would like to ask, please send them to us online, and Tony will review and read out the questions one by one in both Chinese and English.
Our Vice Chairman, Steve, and Mr. Zhou, and myself will answer all the questions in Chinese first and later on translate it into English. Now, I'll hand over the time to Tony, our IR Director, to report our Q4 results.
Thank you, David. This is Tony, the IR Director. Let's first take a look at our safe harbor notice. We already reported our Q1 revenue. Q1 revenue of TWD 25.3 billion exceeded our guidance of TWD 24 billion-TWD 25 billion, but sequentially declined by 9% from TWD 27.9 billion and also down around 7% year-over-year from TWD 27.2 billion a year ago. Now, let's look at our gross margin result.
Our gross profit of TWD 10 billion in Q4 also down around 10% quarter over quarter from TWD 11.07 billion in quarter three, and then down 11% year-over-year from TWD 11.3 billion a year ago. Now, this is our gross margin trend. Our Q4 gross margin of 39.51% also made the high end of our guided range of 37%-40%.
But this is slightly down 23 basis points from quarter three and also down almost 200 basis points year-over-year from a year ago. Now, let's look at our operating expense. Our Q4 operating expense of TWD5.06 billion slightly increased around 5% from quarter three and also slightly up 2% from a year ago. As for our operating income of TWD4.9 billion, decreased around 21% quarter over quarter and 22% year-over-year, I think due to sales decline and also a little bit lower margin.
As for operating profit margin, our Q4 operating margin of 19%. Our Q4 net income of TWD4.8 billion was down around 9% quarter over quarter and also 10% year-over-year. The last line is our EPS. Our Q4 EPS of TWD7.89 was down TWD0.75 quarter over quarter and also down TWD0.87 year-over-year.
Now, this is the overall summary of our quarterly income statement for Q4 and also compare with quarter three as well as a year ago, Q4 2023. This page also shows our full-year result for 2024 compared with 2023. For 2024, our revenue of TWD 102.8 billion was down 7% year-over-year. Gross profit of TWD 41.5 billion also down about 10% year-over-year. Operating expense of TWD 19.7 billion was almost flattish year-over-year, and now look at the net income of TWD 20.3 billion, is down around 13% year-over-year.
EPS of TWD 33.43, down TWD 4.89 from 2023. This page also shows our revenue breakdown by three product groups for Q4. The largest group remains small-medium driver, which accounted for 41% in Q4, slightly down from 42% in quarter three. Second largest segment, SoC, system on chip, represented 37% of our Q4 revenue.
The weighting was unchanged compared with quarter three. Lastly, as for large size drivers, sales weighting in Q4 was 22% up from 21% in quarter three. We already released our January revenue last month. Our January revenue of TWD8.48 billion was down 3% year-over-year and almost flattish month over month. Also, there is a revenue breakdown for our January revenue.
One thing we'd like to highlight here is SoC business of TWD3.38 billion already accounting for almost 40% of our monthly revenue in January. This page shows the monthly trend for 2024 compared with 2023. As you can see, pretty much it is year-over-year decline, but we already see this trend and gradually narrowed towards December last year. Then the next page also has the January revenue compared with 2024.
Also shows the similar trend, the year-over-year decline has narrowed to only below 3% in January. The last page shows some key financial figures for Q4, also compared with quarter three and a year ago. We continue to have a very strong cash position at TWD 48.8 billion in Q4, which is up 16% quarter-over-quarter, but down around 10% year-over-year.
It's mainly due to the dividend distribution during 2024. Accounts receivable remains stable, so it's roughly flattish quarter-over-quarter, but increased around 20% year-over-year. In terms of inventory of TWD 8.7 billion, it's down 7% quarter-over-quarter and up slightly year-over-year. So let me pass the call back to David to also highlight some key events.
Thank you, Tony. The following slide is a recap of our recent major events, and we're happy to share with you that Novatek has received the 2024 Carbon Competitiveness Top 100 Award for straight three consecutive years, and then we also obtained the ISO 14067 Product Carbon Footprint Verification for our driver product line. We also received the 2024 Youth Volunteer Outstanding Unit Award.
For the past 15 years, Novatek Education Foundation Volunteers Team, through collaboration and empowerment, have continuously supported visually impaired students, youth in residential institutions, and disadvantaged children in their learning and growth journeys through practical actions. We are also honored with the 2024 Sports Promoter Long-Term Sponsorship Award. Novatek's long-term sponsorship has helped the local Puli Archery Team members secure spots as national representatives for the 2025 World University Games and also the 2026 Asian Games training team.
Novatek has been also awarded the TCSA Taiwan Corporate Sustainability Award for the eighth time, securing first Platinum Award in sustainability reporting. Regarding the RBA VAP recognitions, we've received the RBA VAP recognition with a high score of 193.8 out of 200. Last of all, please also visit our website for more information on our ESG achievement. Now I'll turn over the call to our Vice Chairman, Mr. Steve Wong, to provide us more details on our Q4 results and Q1 guidance. [Foreign language] 接下来我们邀请我们的王副董，针对第四季的结果做进一步的说明，同时也报告第一季的展望。
谢谢 David。[Foreign language] 刚刚 Tony 呢，已经跟大家报告了我们第四季的这个营运的这个结果。第四季我们在营收上呢，做到了 TWD 25.26 billion，这个较前一季呢，大概减少了 9.3%。我想这主要因为消费性电子产品进入需求淡季，那年底呢，厂商有调控这个库存的结果。不过呢，较我们公司给的 guidance 呢，要好一点，要好一点。另外那个第四季的毛利率呢，39.51% 呢，较第三季的 39.74% 呢，微减了 0.23 个百分点。不过呢，也达到了我们这个 guidance 的上缘。
The revenue for the Q4 decreased by 9.34% QOQ, and while we're down by 6.97%, but exceeded our top line guidance of TWD 24 billion-TWD 25 billion. This decline in revenue is mainly due to consumer electronics low season and the year-end inventory adjustment. And as for the Q4 margins, the Q4 gross margin was 39.51%, QOQ down by 0.23 percentage points, but at the upper end of our guidance.
[Foreign language] 至于有关这个第一季的这个 guidance 呢，目前看起来呢，由于大陆各省推出这个旧换新的补贴政策，以及呢，因为因应这个关税的不确定性呢，有一些提前拉货的这个情形，也刺激了像电视、平板、手机以及 IT 等消费电子产品的需求的增加。因此我们预期呢，Novatek Q1 的营收呢，会较 Q4 呢，有所成长，会优于传统的这个季节性的这个表现。至于说 Q1 的 guidance 呢，我们现在给的营收的范围呢，大概是从 260 亿到 272 亿之间，260 亿到 272 亿之间，这个是用汇率 32.5 来换算的话。那毛利率呢，大概会介于 37% 到 40% 之间。那盈利率呢，会介于 18.5% 呢，到 21.5% 之间。以上简单给大家这个 guidance 的这个范围。
As for 2025 Q1 outlook, the subsidy programs for the swap old for new initiatives throughout China, along with the pull-in due to anticipation of higher tariffs imposed by the United States, have stimulated increased demand for consumer electronics. So we expect Novatek's Q1 revenue to be higher than last quarter and better than normal seasonality. Based on the above, our 2025 Q1 guidance will be as follows.
Revenue will be TWD 26 billion-TWD 27.2 billion, an exchange rate of TWD1 to TWD 32.5. Gross margins will be 37%-40%. The operating margins will be 18.5%-21.5% range. Thank you, Steve, for the Q1 guidance. Next, we'll move on to Q&A sessions. Please be reminded if you have any questions that you would like to ask, please send them to us. So I'll hand over the time to Tony to ask some of the questions that investors already handed to us.
[Foreign language] 谢谢管理层。那刚刚已经给了第一季营收的指引，那可以就这个第一季对公司几个主要的终端应用需求再分享一下您的看法吗？
[Foreign language] 正如我刚刚跟各位报告的，因为第一季有这个大陆的补贴政策，以及这个关税的这个不确定性提前拉货的状况，看起来几个消费性电子产品的需求呢，都有增加的这个情形。以 TV 来讲的话呢，QOQ 看起来是增加的，而且大尺寸 TV 购买的意愿提升，因为补贴的关系。那面板价格呢，也有走高的这个情形。至于这个 MB 或者平板呢，尤其特别是平板呢，这个 tablet 在 QOQ 这里呢，看起来有成长的这个状况。那 monitor 这里呢，季对季来讲呢，看起来也是向上的。这个手机这里呢，Mobile Phone 呢，由于这个旧换新的这个情形呢，需求也有上来，而且中高阶的这个购买意愿呢，看起来也比较提升。那至于这个 Auto 方面呢，看起来是几个 application 里面呢，需求较弱的这个一个应用。
Could you share the view on the sequential trend across major applications into Q1 2025?
As mentioned earlier, the China subsidy programs and also the anticipated higher tariffs actually have stimulated increased demand for consumer electronics. So by product category, the demand for TV is expected to increase quarter over quarter, particularly for large size models. And we also see that the TV panel price is also on the rise.
And as for notebook, tablet, and monitor, all of them are also experiencing growth, while the demand for smartphones is increasing, basically driven by the swap old for new programs, and especially in the mid to high-end segments. But in contrast, the demand for automobiles is relatively soft.
[Foreign language] 那可以请管理层就您的三大产品线第一季的营收季对季的表现为何呢？
[Foreign language] 就从我们这三大产品线来看的话呢，我们季对季来看，第一季大尺寸的这个成长呢，看起来这个幅度是会最大的，看起来这个大尺寸的 driver IC 的成长幅度是比较大的。那 SoC 的产品是次之，至于中小尺寸的这个增幅呢，会比较低一点。那最主要是这个 Auto 汽车的这个出货是减少，不过呢，在手机这里的出货是增加了，特别是 OLED 手机的这个 OLED，还有这个平板的这个 TDDI 的出货呢，是增加的。
Consequently, could you also provide your quarterly revenue trend across three business groups?
Basically, all three product lines are projected to experience quarter-over-quarter growth in the Q1. Among these, the large driver IC segment is anticipated to exhibit the most significant growth, and then followed by the SoC segment. As for the small medium driver IC segment, it's also expected to grow quarter-over-quarter, but at a lower rate, because out of the small medium size segment, the automotive product line basically will decline quarter-over-quarter. For the smartphone, especially for the OLED DDIC and the tablet TDDI, those will exhibit growth quarter-over-quarter.
[Foreign language] 那关于您刚才提到 OLED 手机的这个 OLED driver 这边，那如果就 2025 年在 Android 这边成长的机会或因素的话，有哪一些因素呢？那再加上您可以提一提这个 OLED TDDI 对您 ASP 还有毛利率的影响。
[Foreign language] 由于中国这个补贴的政策呢，提高了消费者购买中高阶手机的这个意愿，所以呢，采用 OLED DDIC 的这个比例呢，看起来应该会提高的。至于这个 OLED TDDI 的这个 ASP 跟毛利率呢，目前我们看起来是会比 OLED DDIC 的毛利要好，而且我们现在 OLED TDDI 的这个客户量产的这个 schedule 呢，目前看起来是 on schedule 会在第二季量产。
Could you also provide a growth opportunity for your Android smart OLED driver IC in 2025 and also provide some comments in terms of impact of OLED TDDI to your ASP and the GP market?
As mentioned earlier, the China subsidy policy has increased consumer willingness to purchase mid to high-end smartphones, leading to a higher adoption rate of OLED DDIC. And the other question that I asked about the OLED TDDI, the ASP and gross margin for OLED TDDI basically will be better than that of the OLED DDIC. And upon that, I would like to also mention that the customer mass production schedule for the OLED TDDI in Q2 remains unchanged.
[Foreign language] 那也想请问一下，去年新的手机客户在 2025 年的营收贡献有机会比 2024 年增加吗？如果客户将来在驱动 IC 与 TCON 采用更先进的制程，有可能改变目前供应链的板块吗？
[Foreign language] 正如我上次跟大家报告了，持续拓展客群呢，customer base 呢，跟这个应用呢，我想是 Novatek 我们经营的这个方针。公司呢，我们持续会去精进这个研发的技术实力，例如开发这个先进的制程，那产品品质以及量产的能力呢，来争取客户的这个信赖。至于 2025 年的营收的这个增加呢，我想是我们这个努力的一个目标。而且 Novatek 呢，我们已经有先进制程的这个量产经验呢，相信我们有能力呢，配合客户的需求呢，往前这个 migrate，如果客户有这个需求的话。
As for your new customer in the smartphone, could you grow the revenue year-over-year in 2025? If the customer adopts the more advanced node process, will that change the landscape in the supply chain?
As mentioned during our last investor conference, you know, our strategy has always been focusing on expanding our customer base in applications, and this is basically our KPI. We continue to enhance our R&D capability, for example, advanced node, as you just mentioned, and also the product quality and the mass production capacity to build or to earn our customers' trust.
Therefore, our goal is to increase our revenue in 2025. With the Novatek extensive mass production experience in the advanced node, we do believe we can migrate products successfully upon customers' request, so this shouldn't be an issue.
[Foreign language] 那也想请问一下，在您的 SoC 产品这里面，您的 TV Monitor 的 controller 今年成长的机会如何？那其中对于这个对用在手机的这 MEMC 的 ASIC 或所谓的手机独显，不知道今年的进展以及机会如何？
[Foreign language] 由于大陆这个补贴政策呢，会刺激了这个换新的这个需求，也提高了消费者购买这个大尺寸 TV 跟高阶 monitor 的这个意愿呢，事实上也给 Novatek 带来的这个成长的这个机会。至于这个独显 IC，所谓的这个 PQ chip 呢，它确实是带给了中高阶手机有一些好处，特别是在 gaming 的 model。那预期呢，我们预期呢，2025 年呢，采用这个独显的这个 IC 呢的手机的机种呢，还有这个客户呢，应该是会增加的，现在看起来应该是会增加的。
Could you also comment on the growth opportunity for your TV monitor controller in 2025? And also, how about your opportunity at your smartphone MEMC ASIC?
Again, the China subsidy policy, as mentioned earlier, has increased the willingness to purchase large size TV and also the high-end monitor, so this will really bring growth opportunity for Novatek in 2025, and the revenue from smartphone MEMC ASIC, the ASIC chip you just mentioned, is anticipated to grow YoY in 2025, and this is mainly because of new customers and new models. Because, as you know, the MEMC ASIC chip basically can enhance the picture quality, particularly at the high-end gaming models.
[Foreign language] 还有一个问题关于您的 SoC 中的 TCON，那想请问一下今年 2025 年的成长机会如何？那特别在您这里的 notebook 的 premium segment，还有这个在 auto 这一块的领域这方面。
[Foreign language] 我想 Novatek 呢，我们在高阶的 notebook 这里呢，应该是处于这个领先的位置。至于在导入 AI 的功能以后呢，我想应该会促进了这个 premium model 的这个需求的增加，事实上也给我们带来一些出货成长的这个机会。至于这个 auto 汽车的这个 TCON 呢，事实上 Novatek 已经进入量产了，我想未来会配合这个高阶车种的出货呢来成长。至于这个 TCON 的这个产品线呢，Novatek 呢在这个 TCON 这里呢已经耕耘多时。我想我们技术领先，我们会持续呢提供给客户这个 total solution。或者是一些差异化的设计。
As for TCON, also another major product line at your SoC, could you also comment on the growth opportunity in 2025, particularly at the premium notebook PC and the auto segment?
As you all know, Novatek, we are in the leading position in the high-end notebook, and with the introduction of AI features, this will basically increase the demand for the premium models, which results in unit growth opportunity for Novatek.
And as for the Novatek auto timing controller, we are glad to announce that it's already entering into mass production, and Novatek will benefit from the growth of the high-end models in the future, and as I mentioned several times, that Novatek has a long and strong position in TCON with leading technology and market share, and we'll continue to leverage our position to provide total solution and also differentiation to support our customer needs.
[Foreign language] 您刚刚也有提到 AI，那也就想请教一下您关于相关产品的布局以及机会。那今年最热门这个 DeepSeek 的这个推出的话，对公司会有怎么样的一个机会？
[Foreign language] 基本上呢，Novatek 我们是 focus on 这个 Edge AI devices，所以呢 AI 的手机呢，或者 AI 的 MV 呢，或者 PC 呢，新增了这个 AI 的功能以后呢，应该会刺激终端这个换机的这个需求，也给我们带来了一些这个机会。至于我们原来的产品线，像 TV 呢、Gaming 呢，或者是一些安防啊，这些产品呢，事实上我们也陆续有加入了这个 AI 元素的这个设计。那同时呢，也往这个机器视觉呢，还有智能居家的这个应用来发展，特别是像 gaming monitor 呢，如果加入了这个 AI 呢，事实上让这个 gamer 呢，有更好的这个体验。至于这个 DeepSeek 呢，它事实上这个让这个 AI 的 model 的这个效率提升呢，也就是所谓的评价的这个 AI 的模型呢，我想应该会加速这个 AI 应用的这个落地，而且会使这个 Edge AI devices 呢，会加速来普及。我想这个对 Novatek 应该也是一个机会。
As for AI product, could you also provide your deployment and opportunities for AI related products and also opportunities from the introduction of DeepSeek?
The answer is yes, it will give us more opportunity. For Novatek, we focus on Edge AI device and the introduction of AI features in smartphones, notebook, PC, all of these will stimulate replacement demand. As for TV, gaming, surveillance systems, all of these are incorporating AI elements into the designs. We have also designed in some of these AI features. As you know, this also the trend is also moving towards a computer vision and smart home. This development is expected to increase the further demand for all these products.
As for the Edge AI, basically will drive the higher display specification, especially in the gaming side, which will really help the gamer to have a better experience. With the DeepSeek, I think the AI model will become more efficient, and this will accelerate the widespread adoption of Edge AI applications. As a whole, I think the development in the AI segment will definitely benefit Novatek.
[Foreign language] 那还是想也要请管理层，是不是再也可以给我们更新一下您在 Arm Neoverse 的这个平台，还有在先进制程，比如说四五奈米进展的情况。那还有公司对 ASIC 相关产品的中长期的展望如何呢？
[Foreign language] 我想我们参与这个 Arm 的 Neoverse 的这个合作呢，我想这作为这个 Novatek ASIC business 的一个延伸，这个是为我们将来客户可能的需求来做准备的。Novatek 呢，我们在这个 driver IC 跟这个 SoC 的 product line 呢，我们都有这个 ASIC 的 business。我想这个未来的展望呢，目前我们看起来应该是正向乐观的，正向乐观。
Could you please update your progress at Arm Neoverse platform and the four and the five advanced node process, and also your mid- to long-term outlook for your ASIC-related business?
Again, as mentioned in the past, the cooperation with the Arm Neoverse platform basically is the extension of Novatek's ASIC business. So we're preparing in advance for our future customers' requirements. And also we've mentioned many times the ASIC business, both in driver and in the SoC product lines, we have ASICs for many, many years. And the outlook for this business so far looks positive.
[Foreign language] 这个下一个问题就是大家也关心这些货币，最近在这个地缘政治下的这个汇率的波动。那我们也看到台币对韩元的汇率在 44 块，也在今年相对的高点。请问这样的汇率的波动对于公司报价与竞争力是否会有影响？
[Foreign language] 基本上，我们跟客户或者 vendor 的交易，是以 dollar base 来计价。所以目前看起来这个是没有影响的。
At the exchange rate of a high level, TWD 44.8 versus Korean Won, do you see any impact to the pricing and your competitiveness?
As the transactions are all in U.S. dollar-based, so there are no impact at this moment.
[Foreign language] 那接着我们看到一些题目比较是关于这个利润上面的话，第一个问题就是第四季的毛利率在指引的上缘，请问主要的因素？那也可以提一下您的三大产品线第四季的毛利率跟第三季相比的趋势如何吗？
[Foreign language] 正如刚刚跟大家报告的，第四季的毛利率呢，比第三季大概略减了 0.23 个百分点。那这主要的原因是这个产品组合的变动。第四季呢，我们这个 SoC 的产品的占比呢，降低了，主要是这个第一个原因。第二个原因呢，由于金价成本的上涨呢，也影响了一部分的这个毛利率。
The Q4 gross margin was at the upper end of the guidance. What are the major factors? And also how about the gross margin trend across three business groups in terms of quarter over quarter trend?
The sequential decline of gross margin in Q4 by 23 basis points actually came from number one, the product mix, given we have a lower SoC weighting. And the second, it's because of the increase in gold price.
[Foreign language] 那我们看到了您的第一季毛利率的指引终点较第四季的结果稍低，那原因为何？那也想请教一下三大产品线第一季的毛利率趋势会有跟第四季的比较明显的变化吗？
[Foreign language] 以我刚刚给各位的 guidance 呢，目前我们来看呢，预期第一季的毛利率呢，跟第四季去年第四季的毛利率呢，看起来应该变化不大，应该变化不大。
Why is your Q1 gross margin midpoint guidance is lower than result in Q4 last year? And also, how about gross margin trend across three business groups in terms of quarter-over-quarter comparison?
We expect the gross margin in Q1 to be at the similar level to Q4 last year.
[Foreign language] 那因为您的产品有时候价格变动会比较大一点，那想请教一下第一季有哪一些产品价格压力会比较大？
[Foreign language] 因为在去年的第一季呢，客户有这个年度的这个议价，我们在 driver IC 事实上是有面临到一些价格的压力，不过呢，我们也做了一些这个 cost reduction。
As for pricing, which products are facing more pricing competition into Q1 2025?
As you know, we have annual pricing negotiations in the Q1. Based on that, we see the driver IC product lines are facing more ASP pressure. However, we have also implemented efforts in cost reduction, which should help.
[Foreign language] 那一个关于成本这边的一个问题就是想问一下，2025 年在晶圆降价的幅度这边，8 吋跟 12 吋有没有什么差别？那这个趋势跟去年相比是怎么样呢？那也想问一下，降价是逐季的发生还是会比较集中在一个季度？那也想不知道您也是不是可以提一提，最近报价的变化对于中国的供应商跟台湾的供应商的比较有什么差别吗？
[Foreign language] 我想这个成本的这个价格的这个趋势呢，和未来的这个供需呢应该会有密切的这个关系。至于这个我们2025年的这个cost呢，Novatek呢，我们跟各个vendor呢已经有协商共识好了，有关这个材料和这个生产的成本呢，应该2025年呢会比这个2024年呢有一些降低。
As for cost-related questions, would you comment on the cost trend on Edge and 12-inch foundry in 2025 compared with 2024? And also these cost reductions are more greater or more concentrated within certain quarters? And also any changes in terms of pricing discount between Taiwan and China foundry suppliers?
As you all know, the trends in cost are highly correlated with the supply and demand balance. For Novatek, we have already negotiated with all our suppliers. We are expecting the material cost in 2025 will be relatively lower than 2024.
[Foreign language] 那随着您也提到有一些新产品的推出，也有一些成本下降的机会，那我们有机会看到逐季您的毛利率走稳，甚至有回升的可能吗？
[Foreign language] 我想毛利率呢，一直是公司努力追求的一个目标。至于这个2025年的毛利率呢，我想我们会持续推出一些新产品，还有优化这个产品的组合，特别是这个高阶的产品，以及控管这个成本来提升这个毛利率，我想这是我们追求的一个目标。
With new product introduction and the cost reductions, will your quarterly gross margin stabilize or even improve sequentially during 2025?
Yes, again, maintaining and improving gross margins is always one of our top goals. For 2025, we'll continue to introduce new products and also improve the product portfolio as we've been doing that for a while, and particularly at the high-end segment. Also we'll control the cost to continue to improve the gross profit margins.
[Foreign language] 那我们看到公司的这个毛利率，尤其季毛利率过去两年都在维持在 40% 左右。那请问一下这是公司未来对于投资界毛利率的一个参考方向吗？
[Foreign language] 我想营收的成长跟这个毛利率呢，应该是公司经营的这个两大重要指标，两大增量指标。至于40%的毛利率呢，目前来看短期是我们努力的一个目标。当然长期我们也会继续来努力。
As your gross margin has maintained at about 40% level over the past two years, will at least 40% be the reference point for your gross margin trend in the near future?
Revenue growth and gross profit margins are two main KPIs for Novatek's management. Gross margin of 40% for Novatek is a near-term goal, and as for mid to long term, we'll continue to work on it.
[Foreign language] 那谢谢管理层。那接着我们有些几个问题是比较关于财务数字的。那第一个问题就是说第四季的业外金额有比较比第三季的明显的一个增加。那请问主要的项目与金额为何？
[Foreign language] 卓婶，卓婶你这边麻烦一下。
[Foreign language]第四季营业外收入金额是 7.75 亿，那主要是汇兑利率有 3.54 亿以及利息收入 2.97 亿所贡献。 Now let's switch gears and we have some questions about the financial figures. The first one is what major items for your non-operating income in Q4?
Non-operating income of TWD775 million for Q4 came from interest income of TWD297 million and foreign gain of TWD355 million.
[Foreign language] 那关于第四季的存货金额，我们看到比第三季下降到 87 亿，请问库存天数为何？那也可以给一下关于第一季末的库存金额或天数的趋势吗？
[Foreign language] 第四季末的平均销货天数是 61 天，那相较于第三季末减少了 2 天。那预估第一季的库存金额相较去年第四季是增加，仍处于健康的水位。
What are your inventory days at the end of Q4, given TWD 8.7 billion, and could you also provide some comments for your inventory dollars or days into end of Q1?
The DOI for Q4 were 61 days, down by two days from 63 in Q3. We expect the inventory dollars to increase QOQ in Q1, but it still should be at a healthy level.
[Foreign language] 另外一个项目就是关于营业费用。那我们看到在前几季比较稳定后，第四季似乎有一个金额上的小幅增加，请问原因为何？那我们看 2024 年的金额大概跟 2023 年的金额相差不大，成长有限。那请问一下目前对 2025 年的营业费用有一个指引吗？
[Foreign language] 第四季的营业费用金额相较前三季各季是增加，那主要是研发费用增加所致。那2025年由于研发人员的增加以及先进制程的投入，那预估营业费用相较2024年是增加的。
Why did your operating expense dollar in Q4 increase compared with the amount during first three quarters? Could you provide your preliminary thoughts on your OpEx dollar into 2025 compared with 2024?
In the Q4, operating expense increased compared to each of the previous three quarters, preliminarily due to an increase in R&D expense, and due to the increase of R&D engineers and investment of advanced process node, the OpEx amount will increase year-over-year in 2025.
[Foreign language] 那我们看到最终您 2024 年的所得税率是 15.7%，以 2023 年的 17.4% 为低，请问主要原因为何？那请问一下 2025 年全年所得税率是否可维持 2024 年的水准？
[Foreign language] 是的，2024 年受惠于产业创新条例的修正，所得税率相较于前一年度为低。那 2025 年的所得税率预估大概是 16% 左右。
Did you benefit from the new tax act as the tax rate came down to 15.7% in 2024, down from 17.4% in 2023? Will your tax rate in 2025 maintain at a similar level as 2024?
Yes, due to the benefits of the amended tax act, the tax rate decreased to 15.7% in 2024, down from 17.4% in 2023, and we also expect the tax rate in 2025 will be around 16%.
[Foreign language] 那请问一下今年公司的股利发放率可以维持往年的 80% 的水准吗？有考虑增加发放频率吗？
[Foreign language] 过去几年呢，事实上，每年这个股利的发放呢，大概都维持在80%左右的这个high payout ratio。相信今年呢应该也不会有太大的这个变动，不过呢我们这个仍待这个董事会来讨论。至于说这个增加发放的频率呢，目前我们是没有这样的规划。
Will Novatek maintain the cash payout ratio at 18% or plus? Have you considered to increase the frequency of cash dividend frequency?
The payout ratio in the past was around 80%, and it's not expected to change significantly in the future. However, the actual payout ratio is still subjected to the board meetings, and as for the increase in the frequency of cash dividend payout, currently we don't have any plan to change that. We have covered most of the questions. Can we see if there's any other questions that we have not?
[Foreign language] 我看到现在其他的问题中，那大家陆续，前面几家公司给了指引，我们第一季也表现得如副董事长讲的比过去的季节性为强。那大家很在意说，我们目前有没有对 2Q 有一个初步的看法。
[Foreign language] 刚刚跟各位报告了，由于这个第一季有这个补贴的政策，另外还有这个因为关税的不确定性，所以有这个提早拉货的这个状况。所以第二季呢，我想这个还是有需要这个持续的观察，还是有需要持续的观察。
The question is about guidance for Q1 revenue, could you also give us some preliminary thoughts for the Q2 outlook?
As mentioned earlier, the subsidy, China subsidy initiatives and the tariff uncertainty has stimulated some of the demand in Q1, and as for Q2, I think we still need time to keep watch how things change. It's hard to tell at this moment.
[Foreign language] 刚才公司提到了几个成长的这个一些产业产品的情况，那可不可以总体跟我们分享一下现在公司2025年对营收的展望如何，或者至少提一下主要的成长动能会来自于哪一些产品？
[Foreign language] 我想这个今年呢，我们对自己当然要求希望说这个业绩还是能够成长，而且目前来看呢，应该是审慎乐观的，应该是审慎乐观的。
[Foreign language] 会来自于哪一些产品？
[Foreign language] 我想这个刚刚提到了，如果这个消费性电子产品的这个需求如果有回温的话，我想整体来讲呢，对我们的这个营收的贡献呢，应该会都是正向的，不管是大中小尺寸都是一样。
Could you also provide some of your initial thoughts for your revenue outlook for 2025 and what are the major growth drivers for 2025 in terms of business line?
As for the revenue growth for 2025, we are cautiously optimistic. I think it will be more related to consumer product line. Do you have any more questions, Tony?
I think we have covered most of the questions. Okay, thank you all for your time, and see you next quarter.