校正紀錄
本檔為 AI 語音轉寫（英文為主、中英夾雜），落地前已校正下列轉寫誤植；未列出者為原文。轉寫品質偏低，僅修可證明者；原 AI 摘要區塊（二次生成，含多處錯誤）不收錄，只留逐字稿。 - booked from 2024 to 2025 → 2026 to 2027（期間錯置；上下文為「今年與明年材料已訂妥、無缺口」，另洽談 2029-2030） - NPO and CPU／MPU and CPU／MPL and CPLs → NPO and CPO（同音誤植，上下文為可插拔光模組 vs 共封裝光學） - AI server, soft-thread, optical → AI server, IC substrate, optical（同音誤植，依下文載板成長脈絡；推定） - growth margin → gross margin（同音誤植，Q&A 為各產品別毛利率） - ABF suffered under duty rate → low utilization rate（同音誤植，依下文「一廠已滿載」脈絡；推定） - last year's second quarter compared to the same period → this year's second quarter compared to the same period last year（期間錯置） - ABSP → ABF、double ADF → double ABF（同音誤植） - PA01 L2 and L6 → PA02 and PA06（同音誤植，PA01 已在前句單獨說明；PA02／PA06 與庫內泰國廠資料一致） - 59-pound additional new bank total → 59 fabs total（同音誤植） - 「22 billion NT dollars」折舊＝NT$220 億（庫內其他來源口徑一致；原 AI 摘要誤寫成 22 億，不採） - 財務數字：2025 營收「182 billion」＝NT$1,825 億（依既有券商法說紀錄校正為精確值）；其餘數字未收錄於逐字稿，無法完整四項交叉驗算 - [待確認] 「Goldman research 圖表中 the tenth part 2028 年 ASP 為兩倍」標的不明；「ECB6」「April and July second 遞件」「1H 約 10%、3Q 12%」（載板占比？）語意破碎，原文保留 - [待確認] 「HDI has the highest profit margins after FTC」「consumer … about 50% margin」「one CD to one star shop」「29 factories」等句轉寫破碎，原文保留 - 主辦單位名稱（開場「Sunbridge at ITCL week」）轉寫不明，未採用
Transcript
Presentation
Speaker01
(00:03:10)OK, welcome everyone and welcome to Sunbridge at ITCL week. Thank you all for joining today's investment meeting with Zhen Ding Technology. Today, we have President Jeff Chien, self-manager Alan Chen, and our spokesman Tony.
張羽含 - 臻鼎-KY, 投資人關係
(00:03:39)And VP Zhang are specialists. Now, we turn the floor to the company. Thank you. Hello, thank you so much for having us here. We will have a brief introduction about Zhen Ding, followed by a short video so everyone can learn about our smart fab. After that, we will have more Q&A time for everyone.OK, sure. Let me start the introduction. You can see from here this is a brief introduction about Zhen Ding. We are the global number one PCB manufacturer for nine consecutive years. You can also see from the revenue part.
張羽含 - 臻鼎-KY, 投資人關係
(00:04:45)Here, this 182 billion was a record high last year, and this year will also reach a record high. Especially, you can see from the first half year's revenue report, because this year's key driver will be the AI server, IC substrate, optical, and edge AI. Especially this part, the revenue has ramped up really quickly.From the first half year, the sampling degree and small mass production will increase. The second half will be even more, and next year our CapEx devotion will start to ramp. Especially for new fabs, we will develop more capacity for the high-end AI PCB. You can see from this red pie chart the server optical module and IC substrate.
張羽含 - 臻鼎-KY, 投資人關係
(00:05:38)Last year, for four years, it only accounted for 11.7%, but this year's first half has accounted for 21.6%. Till the end of 2026, we expect this part will reach 25%, and by 2027 this part will reach 30%. This is the recent business update.For the first half, our high-margin product, especially server transceiver substrate, the YOY has reached 113% and accounted for 21.6%. Also for the revenue part, it also reached a record high. You can see from our first half's gross margin and operating margin, it has come to a really quite
張羽含 - 臻鼎-KY, 投資人關係
(00:06:36)different grade compared to the same period last year. For this growing cycle for high-end PCB, we see this is a really new opportunity and new phase for us. This year is just the beginning of momentum for us, and this lifecycle will gain more 40 to 50 billion revenue this year and after.This cycle till 2030, we think that this growing phase will still continue. For our next phase, the growth through industrial capacity expansion, we have raised our capital expenditure to 80 billion this year and have 22 new fabs under construction.
張羽含 - 臻鼎-KY, 投資人關係
(00:07:32)Another nine are in the planning stages. Adding our original 28 fabs, we will have 59 fabs developed revenue by the end of 2030. For fundraising plans, we have Leading Interconnect Semiconductor Technology and have submitted the IPOapplication in the Hong Kong stock market in April and July second this year. The IPO stage will finish targeted next year's Q1. This is a business overview for the optical module. We only targeted the high-end optical module like 800G and 1.6T, and afterwards 3.2T NPO and CPO are
張羽含 - 臻鼎-KY, 投資人關係
(00:08:29)still under the sampling stage. After the capital expenditure has expanded more capacity for us, we have targeted to become the world's largest supplier for especially high-end optical module PCB by next year. For the AI server part, we have targeted the high-end GPU and ASIC customers.For this year, we have a small production for them, and for the next two to three generations, we will expand more capacity for them, especially in 2027 and 2028. For edge AI, actually, even though this year is not really a good year for the consumer-grade product,
張羽含 - 臻鼎-KY, 投資人關係
(00:09:19)we still see a low to mid single-digit growth because from the big customer, the unit didn't drop that much. Especially for the ASP, we can transfer for the high-end for the upstream supplier rate marketing ASP rates. Especially for the customer, we can have more space for negotiation.This is the Semicon Taiwan this year. We have showcased the 800G and 1.6T mass production product and also have the next generation XPO and NPO applications. For AI server, we have launched our high-end HDI product with up to 34 layers.
張羽含 - 臻鼎-KY, 投資人關係
(00:10:15)This part is also the sector of our biggest capacity devoted to. This is the price mass research, and you can see it's totally different from this decade 2020 to 2030. The CAGR has gone up to 9.5%, and this kind of shortage also showsfrom our customers' demand. Also, the market scale is following this trend, especially from the high-end PCB and also IC substrate. The shortage, as we can see, will still continue in 2028. Our supply booking phase has come to 2028； we have no more capacity for even more new customers.
張羽含 - 臻鼎-KY, 投資人關係
(00:11:18)Here, how we engage with AI： we have more focus on edge AI before because last year it was up to almost 90% of consumer-grade product, but this year we will have more focus on AI server and optical module.After five years, we can see there is even more opportunity in physical AI parts, especially for vehicles and robots. We have started to engage with customers and started the sampling degree for new products.So we want to build a One ZDT platform. We didn't transfer the consumer-grade products HDI and IC substrate to AI infrastructure because from the consumer-grade customer, the demand is still strong, and we have a long-term
張羽含 - 臻鼎-KY, 投資人關係
(00:12:15)partnership with them. So we will not remove their product line to new customers just because we see the trend is even high margin. We want to really cherish this kind of relationship with our big customer, but we want to engage more in the new trend like AI infrastructure. Our new capacity will be more focused on the high-end HDI, HLC, and IC substrate part.More new customers have started to engage here. This is the revenue target from 2010. We have targeted ourselves to earn more than 10 billion each year. This year will be a lot of difference. We have gained 40 to 50 billion more this year, and afterward, it will follow this trend, and we believe it will be even more.
張羽含 - 臻鼎-KY, 投資人關係
(00:13:15)Here, we hosted the Global Supply Conference in Shenzhen on July 24. You can see there were 247 suppliers who came to our activity, no matter fromglass or copper or even facilities drilling suppliers. They have all come to join with us from here. Many investors might ask about upstream supplier shortage problems, but actually, you can tell that this year's upstream materials we have booked from 2026 to 2027. So for this two-year
張羽含 - 臻鼎-KY, 投資人關係
(00:14:01)for this year and next year, we are not in that kind of shortage. We are negotiating with them for the material in 2029 to 2030. So if you ask if it is in shortage, it is. But for this year or next year, we have no gap compared to and supply our material for the downstream customers.Here is the optical module demand. This is research from your group, and many investors will argue about when NPO and CPO have appeared, the pluggable might disappear. This kind of problem, but actually, you can see from this chart next year and also in 2028,
張羽含 - 臻鼎-KY, 投資人關係
(00:14:53)even though NPO and CPO have started, you can see the pluggable usage is still strong because we can see from the second-tier or third-tier CSP customers, no matter from the cost or even if you want to fix your rack or you want to make any transfer, optical module will be a lota lot cheaper than NPO and CPOs.We think that this trend will follow actually from this chart. For the unit in the optical module market, we have more focus on 800G, 1.6T, and 3.2T. This year's shipping unit 800G will oversee 1.6T, but you can see from the revenue part, it will be 50 to 50.
張羽含 - 臻鼎-KY, 投資人關係
(00:15:54)Next year, no matter unit part or revenue part, 1.6T will increase even higher and strongly oversee 800G.This is the brief roadmap from GPU server and ASIC server. Many investors might worry about oversupply issues, but you can see no matter from the next generation's product, no matter from the technology degree orlayer account of the PCB or the surface of how PCB might account, this will use a lot of our capacity, so evenin this chart, we can see the shortage will not stop till 2028. For the 2029 to 2030 situation, we are still checking, but we can see the shortage will not stop, especially from the ASP part.
張羽含 - 臻鼎-KY, 投資人關係
(00:17:04)This is research from Goldman. Next year, the ASP for the tenth part has come to this grade, and in 2028, the ASP for the tenth part comes to even two times degree. So this shortage will still continue even though in 2029 to 2030.This is our technology capability in ABF substrate. We have suffered in this part for many years, but this year we have breakeven in Q1 and submitted our application for IPO in July 2. So this part, when our market scale and technology degree have gone even higher, even high-end IC substrate.
張羽含 - 臻鼎-KY, 投資人關係
(00:17:59)This part, our margin will start at margin, and no matter the revenue will expand really quickly. This is the server optical and IC substrate. The percentage comes to 21.6%, and in 2030, we expect this part will come to 45 to 50%, but for the actual number, it will go even higher with mass production.And we have overseeded the consumer-grade product because for the percentage, we are still checking if the consumer-grade product will come even higher in 2030. For the expenditure, we have 22 new fabs under construction, nine more fabs in the planning stage in Huai'an part.
張羽含 - 臻鼎-KY, 投資人關係
(00:18:53)By the end of this year, they will have six more new fabs. PCB new fabs have completed across the different three campuses, and the fourth campus broke ground in April this year.It also goes with high-end PCB. It topped out by August 10 and finished construction and cast comments production in next year's March. In Shenzhen campus, there will be three more new fabs in the campus three.
張羽含 - 臻鼎-KY, 投資人關係
(00:19:28)Oh no, not three more new fabs. This is the campus three that broke ground in July 2022, 2026, and will have three more smart new fabs. Also, with the high-end PCB Leading Technology, also broke ground in this year's September and will target the high-end ABF product for Thailand fab one. It is also targeted the high-end HDI and hasmass production in last year's third quarter. Because for the ramp-up and progress, it has gone really smooth. This year's July has achieved breakeven. There are four more new fabs that have finished construction and will have production expected to commence from this year's fourth quarter and next year's first quarter. We expect to have small mass production.
張羽含 - 臻鼎-KY, 投資人關係
(00:20:27)This is the Huai'an campus, and this part we have built it to become the world's largest PCB campus. We will have even more new capacity in this part. Here is our Shenzhen campus. These three different campuses are our original part, and this is the new campus we broke ground in this year's July.This is the leading Shenzhen campus, campus two, which has a playground in this year's September. This is our new fab, new campus in Thailand, and here this PA01 is theonly fab that has contributed revenue currently. This part spent one year from master production last year. Thank you, and it grows smoothly and comes to breakeven in this year's July, but this
張羽含 - 臻鼎-KY, 投資人關係
(00:21:34)or different new fab, the blue part, has finished construction, and PA02 and PA06 will go even faster because this two part is for high-end AI PCB. For our different subsidiary, you can take a look. We have more focus on our product line in China because no matter from the construction, from our manpower,or even the government support, we have more efficiency in this part. But this year, we have come to have more international customers, so we have many aggressive plans, especially in Thailand and Kaohsiung. For the smart fab part, this is also a key reason why we can't have that much like 22 new fabs
張羽含 - 臻鼎-KY, 投資人關係
(00:22:32)under construction at the same time. We even want to build a new campus in a totally different country like in Thailand. That is why we equal the web benchmark level of smart fab with the semiconductors. Even though you go to TSMC's fab, you can see this kind of level of the smart fab andthat is also the factor why we want to build new fabs instead of buying old fabs. Because for the future high-end PCB, we need to input for this kind of smart fab start manufacturing level so we can fulfill the customer need. Here is the R&D expenses. This year's first half is slightly higher than before.
張羽含 - 臻鼎-KY, 投資人關係
(00:23:27)But for the full year, we will come to dilute it into six to eight percent. This is the payout ratio remains fifty percent. For the ESG part, we have valued this part for even more than ten years, and we have a professional team focused on this rating. In the future, we will also improve our ESG rating part and fulfilleven more degree. For the financial result, this year's second quarter compared to the same period last year, we have better performance, especially from the gross margin, operating margin, and net margin part.
張羽含 - 臻鼎-KY, 投資人關係
(00:24:15)But for the expenses, we have higher costs than before due to the CapEx devoted to the new fab construction and increased manpower. For the full year, we expect to dilute it to 12 to 13 percent. Regarding depreciation, we will start it from mass production.So this part will go higher slightly for the full year, around 10 to 15 percent, coming to 22 billion NT dollars. This is the first half's financial result you can review. This is our quarterly operation result for our gross margin and net margin.
張羽含 - 臻鼎-KY, 投資人關係
(00:25:11)Because last year we had 88% of consumer-grade products, we still suffered from the off-season and peak season situation. This year, we expect a slight incline because many mass productions will come in the second half, so it will look similar. But for next year or 2028,we can maintain a high utilization rate. For the revenue breakdown, you can take a look at the red charted part. The revenue degree will also reach a record high. Regarding the balance sheet,you can see that even though our capital expenditure has reached a record high this year, cash flow and liabilities remain at a healthy rate. We also have three different
張羽含 - 臻鼎-KY, 投資人關係
(00:26:26)fundraising plans under planning, especially for ZDT. We have the ECB6 for Avary, a fundraising plan, and also for Leading Technology, the IPO plan is ongoing. These are preparations for next year's capital expenditure. This is the last decade's financial summary.You can see that even though our capital expenditure has reached a record high this year and has steadily increased over the last ten years, our revenue is also following this trend and steadily rising. Although our CapEx is at a record high this year, for risk, we have reduced it to a
張羽含 - 臻鼎-KY, 投資人關係
(00:27:17)really low phase because, no matter from the downstream customer or upstream supplier, we have signed LTAs with customers. That is why many new fabs are under construction, supported by customers and upstream suppliers.So if you ask about the risk for this year,
Q&A
Speaker02
(00:28:00)we have the highest capital expenditure but the lowest risk for us. Thank you. Is there any question？ A little bit about margin targets.
凌惇 - 臻鼎-KY, 發言人
(00:28:17)Sorry, your question is about gross margin for each product sector. We didn't introduce our gross margin by different sectors. Actually, consumer computers compared to servers up toAnd I see substrates right now, the red color parts are higher than consumer grade. Normally, the first half is low season, and the gross margin gap between first and second half is around 5 to 8 percentage points. But this year, the gap is shortened. Looking at product sectors over the last couple of years, HDI has the highest profit margins after FTC, and in recent years, highly common IC substrate server products are under development.
凌惇 - 臻鼎-KY, 發言人
(00:29:06)We just turned around from low profit margin to much higher than corporate average from this year. That is why this year is tremendous. We targeted more IC substrates with high margins, and the margin is even higher than last couple of years, starting from this year, so it is different.Yeah, so right now the margin ranking is first up to module, then IC substrate, server, AI, and consumer computers come after. Smartphones took the biggest share for the last couple of years, over almost 60%, but this year you will see it come down to around 50%.
凌惇 - 臻鼎-KY, 發言人
(00:30:01)Yeah, so this kind of product portfolio change is good for Zhen Ding's next growth drivers. Okay, going back to the chart you showed before, how much is the market for server optical modules and high-speed substrates, and how much is for mobile communication？ We did not disclose one by one, so we only introduced by prioritizing or ranking the gross margins at each sector. Roughly, up to module right now is over 45%, which is the most high-end and most profitable margin.
凌惇 - 臻鼎-KY, 發言人
(00:30:28)And coming after are IC substrates, especially ABF, because in the last couple of years, ABF suffered under low utilization rate, but right now our first factory is fully utilized, and the second installation is underway. Because of IC substrate shortages, all upstream costs have already passed throughto the end customers' ASP. Yeah, so in the last couple of years, as I mentioned, consumer computers and smartphones have much higher margins than average, but this year's turnaround for web parts is about 50% margin. Right now, most high profit margins go to active modules and active subjects, especially ABF.
凌惇 - 臻鼎-KY, 發言人
(00:31:51)So when you talk about doubling capacity by 2030, shall we have any concern on the margin side？ The red part right now has high margins, and we keep expanding capacity.
Speaker03
(00:32:25)And we
凌惇 - 臻鼎-KY, 發言人
(00:32:47)order in advance for the next couple of years. Every year, capacity expansion would be a drag on the market, not in the near term. So I'm wondering, for new plants setup, how fast can it ramp up production？ For construction to installation to certification and manufacturing, it takes two to three years. So a new plant needs two to three years to come to full production. Okay, so by 2030, there's a 59 fabs total, right？ Yes, yes, double more than double. So is there a case that by 2030 it will be clear on this demand？ Actually, like VV finishing all the
Speaker03
(00:32:50)construction, and then there are many demands, right？ Then you went up the capacity, and then what if by the end of 2030 all the demand is gone？ No, actually, we give you five years foresight, but after that, we are continuously expanding, and the overall trend
簡禎富 - 臻鼎-KY, 總經理
(00:34:02)AI-driven combined with semiconductor and other demand is still very strong. So for the period from new factory construction to mass production, it normally takes two to three years, and we build the new factory first.It's like a real option. We can base on demand to pull in our installation as well as for mass production. But this kind of investment gives us the capacity to fulfill various demands from our customers, and most of those demands have long-term agreements and other prepared contracts, etc. How long are the agreement movements？
簡禎富 - 臻鼎-KY, 總經理
(00:34:56)The contract case by case is three to five years. Right now, because of the shortage for the longer term, especially substrates and server AI after module, these red factors, so because I think you can put it this way： all the demand drivers
凌惇 - 臻鼎-KY, 發言人
(00:35:23)from new applications, new technology, especially you benchmark the semiconductor industries. So it's so different from the used-to-participate mostly in electronic applications with steady growth. So if you look at the last fifty years, the CAGR is very smooth, two to three percent average lastdecades, many decades. But all of a sudden, PCB industry linked to semiconductors, something like more slow for semiconductor but PCB did not follow actually. Right, so all of a sudden PCB connects tightly with semiconductors.
凌惇 - 臻鼎-KY, 發言人
(00:36:22)Because of the form factors, because of the high efficiency performance, because of the energy performance, they highly leverage the PCB's advantage to combine with their product design. So that is, but let's say two to three years in China, but in Taiwan or inJapan, at least three to four years. That is why everybody is facing the shortage in such a longer paper time because it takes time. That is why Taiwan is so hot for the existing plant, so hot because the construction in Taiwan takes at least two to three years, only construction, so it takes three to four years for mass production.
凌惇 - 臻鼎-KY, 發言人
(00:37:15)So the demand is strong and supply takes time. So that's the ecosystem. That is why Zhen Ding always thinkshighly on the supply chains. So we are the check and balance. The demand comes, the contract agreement comes, then we take time for installation and mass production. I just want to learn from you： when you say fifty-nine times in 2030, is it saying that it
Speaker03
(00:38:10)would be about 2032 wrestling calculation to calculate the wrestling more than double？ Thirty-two because you need two to three years to finish the plan, and then you will recognize it as a weapon. If you can see, the small board under that is already ongoing over time. Yeah, so that says that 59 will be totally changed from year to year. Okay, yeah, but the ramp-up, just like we'll take the binding up.
Speaker04
(00:38:39)Yes, obviously, but it depends on the industry situation. So each factory, each catalog will be different. Since we believe that the specification of each product will be changed again in upcoming years. Can we back to the numbers back there？ So I add a little bit if you see.The numbers here are the top 10 of the PCB industry by Prismark. Actually, Prismark currently is the most
Speaker04
(00:39:29)powerful one for the numbers of business industry. While we follow the numbers they update by each quarter, you can see that in 2030 the numbers compared to last year is almost double. So that's just simply revenue-wise, the world trend numbers. If you see the trend like this, and just like I mentioned in the past three quarters, each quarter they update the number has been increased again and again and again.
Speaker04
(00:39:40)So we're just considering the simple number of that double lies of the market. So if you see our expansion and if you have the numbers of whole industry expansion, actually the expansion is not double lies already yet. So to answer your question, yes, we have confidence that the demand will not be dropping, and it's driven by the AI infrastructure right. All the magnificent seven in these two months announced again their CapEx investment will be
Speaker04
(00:40:10)double or triple in the next how many three to five years. So we don't currently have to worry about that question about the substrate distances. So I guess right now current situation, everything's super tight, margins are expanding. I guess do you have a view on how many quarters see that expansion because everyone's continually raising prices？
Speaker05
(00:40:40)And what's the pace of the pricing？ This is also a great impact on ASM. My colleague D.J. just mentioned the investment for the new factory, especially for IC substrates close to semiconductors. So it takes locally times, so the gap of the twenty minutes supply is still large. So you can foresee the
簡禎富 - 臻鼎-KY, 總經理
(00:41:11)price will still maintain healthy growth, and so it is good to contribute to our margin and our market profit structure. And generally speaking, I was wondering, you know, just broadlykind of task that he loves for the industry just given how tight things are. Let me put this way because PCB industry is so transparent, no matter demand or supply, but all of a sudden the demand is changing very fast due to the high-end application and new material, new machinery,
凌惇 - 臻鼎-KY, 發言人
(00:42:08)new design comes into PCB industry. So the most important is our strategy is one CD to one star shop. Our advantage is using smart fab. So smart fab is not only used by IC subject but also the HDM set and PC highly comes.So that's one thing. The other thing is how we face the different pricing strategies because of so transparent. So when the right now the current situation is raw material price hike, no matter is T-glass, E-glass, CC or copper foil or the drilling bits. I think all these key components
凌惇 - 臻鼎-KY, 發言人
(00:43:00)and high-end supply shortage because of such kind of bottleneck, full supply takes also time. So I think that's why we bottleneck the upstream supply side and fully pass through the product price to our end demand.Because usually we are facing differently between consumer because consumers have more bargaining power as they are very competitive. But the AI industry is so different. So PCB takes little very low percentage of bond cost.But it drives key performance for their AI data center or even downstream different applications. So I think that they are willing to accept price adaptation higher cost upstream. So that kind of good ecosystem we are fully utilize.
凌惇 - 臻鼎-KY, 發言人
(00:44:17)That's why and also we leverage China's full efficiency manufacturing and scale up very quickly and cost efficiency very quickly. So it's also very good for our end customer to expand their advantage. So it's a good ecosystem. So I think that there's not much worry about margin expansion.And we think we are taking advantage of these kinds of conditions.Margin expansion in two to three years is generally high because we invest a lot in R&D and not by ourselves but combined with upstream and downstream customers. So I think all these are our advantages.
凌惇 - 臻鼎-KY, 發言人
(00:45:30)I'm going to
Speaker06
(00:45:36)show you a problem smart. Can you show me how to do it？ Wait so far, I think it's a free show from the first half around ten percent and Q3 up to twelve, twelve percent. It means like when you're new customer, give me a preview and what's the status, and maybe in the next check only. The ABF, we have fab two installation stage and fully booked by our customers because of the shortages. So we kicked off a new fab construction last month.
凌惇 - 臻鼎-KY, 發言人
(00:45:47)To keep expansions going, the new fab and new campus for ABF substrate will add an additional three to four new fabs for ongoing expansion. How about the price？ As I said, the substrate is currently one of the most constrained in terms of shortage conditions.So the price fully reflects all the upstream costs and the substrate cost. That's why I think the margin supports continued expansion as well. How about BT, yes, sir, so like such order？Actually, if you look at the A1 submission in the Hong Kong Stock Exchange, the BT first queue is higher than ABF, but right now it is third queue. I think ABF is already keeping up. So, are we converting any BT capacity to ABF？
凌惇 - 臻鼎-KY, 發言人
(00:47:34)Not really. Like Vivi mentioned, we focus on expansion in our new fab instead of transferring BT into ABF. When is that Fab 2 for substrate going to run？ Q1 next year. Do you have aguidance for next year's growth for sub-tree and sub-growth？ Not really, yeah, but by your expansion capacities, it showed double ABF compared to those years. That is just volume, right？ Volume orthe revenue as well. But on top of that, there will be price increases, so revenue should be. Yes, yes, probably more than double, yes. So any questions from the online有問題嗎？沒有問題，我們可以放影片。OK, so let us have a smart PAP two to three minutes, our smart PAP in Thailand video。你還有那個音源？
簡禎富 - 臻鼎-KY, 總經理
(00:49:26)應援的已經插了。
張羽含 - 臻鼎-KY, 投資人關係
(00:49:27)我的嗎？我的插了喔，你要用你的方喔。I really need to know. No further questions at this moment. Please allow me to share a video of our factory in Thailand campus。你這個是載這個應該可以有，應該是下面那一個，還有兩個。
Speaker07
(00:50:22)Actually, can I squeeze in a quick question just regarding on it？ Quality, high efficiency, and energy-smart facility. Every aspect of the layout was meticulously planned around optimized production workflows. The entire facility operates under clean room standards, with graded cleanliness zones tailored to specific manufacturing requirements. Sorry, we cannot see the video online. Sorry. Sorry.
Speaker08
(00:50:54)There we go.
Speaker07
(00:51:03)Yup, thank you. From pension's inception, our factory was designed as a high-quality, high-efficiency, and energy-smart facility. Every aspect of the layout was meticulously planned around optimized production workflows. The entire facility operates under clean room standards, with graded cleanliness zones tailored to specific manufacturing requirements. The facility implements a Class 1000 clean room.
Speaker07
(00:51:23)All personnel adhere to strict clean room gowning protocols upon entry. Adopting semiconductor-level intelligence, our manufacturing execution system, MES, serves as the central hub, seamlessly integrating ERP, EAP, APS, AMHS, QMS, WMS, traceability, and other related systems. Fully connected production ecosystem and data-driven synchronization. This interconnected framework enables 100 percent equipment connectivity with automated recipe deployment via EAP.
Speaker07
(00:51:54)Full process traceability through unique 2D codes assigned at material unloading. Linking raw materials, mixtures, and product data. Automation and smart logistics, averaging semi-secs slash GEM protocols. We achieve real-time production data and equipment parameter monitoring.
Speaker07
(00:52:24)Automated visual management of panel handling systems. Intelligent blindside storage for just-in-time material flow. Cross-floor AGV material transport activated by production line requests. Data-driven decision making. Real-time SPC slash QMS quality control with instant measurement feedback. Our centralized command system synthesizes real-time operational data with predictive analytics for rapid executive decision making.TQM-driven lifecycle quality management, end-to-end traceability from design to delivery.
簡禎富 - 臻鼎-KY, 總經理
(00:53:17)A new starting point, a new journey. Function technology where smart manufacturing converges with uncompromising precision. Your vision empowered by a worry-free future. Thank you. Just like the video shows, because this new factory in Thailand is owned by our subsidiary company in Thailand, they adopt small manufacturing, small fab at once. So even in Thailand, we need to face the challenge of multiple nation employees, but still the speed for running up the quality, yield, and even profitability
簡禎富 - 臻鼎-KY, 總經理
(00:53:49)is much better than our competitors. We adopt this smart factory for all new factories, those we are under construction, those 29 factories. So it is also very important because for those high-end market or customer for heterogeneous integration, you need the semiconductor standard for the yield and the quality reliability, sousing smart factory is our competitive advantage, one of our competitive advantages for this. Thank you. So is there any bottleneck of the expansion of the factory？ Bottleneck, bottleneck, say the raw material or the equipment？ Because we maintain a long-term partnership with our supply chain partners, so
簡禎富 - 臻鼎-KY, 總經理
(00:54:45)just like Dun says, the demand is so high, so everyone is trying to get more resources, but you can see usually the stronger or the leader like us will get more resources than the others. That's why we are confident for this expansion, not just with the long-term agreement with our customer, we also have MOU and similar arrangement with our partners.
凌惇 - 臻鼎-KY, 發言人
(00:55:14)Supply chain or the equipment, out any type of equipment you guys are waiting for very long that time or something like that？ I think there are several machinery equipments are long-term delivery over twelve to eighteen months.
簡禎富 - 臻鼎-KY, 總經理
(00:55:39)So I think that is why upon the LTA confirmed then we shall have a moral agreement with the payment with the equipment work. What kind of equipment is that？ I think for those equipment we because we have so so longer plant to build new factory, so for those lonely time bottleneck equipment,we issue our order much earlier than the others, so to us because then we need to synchronize the installation time. So maybe bottleneck to the others but for us it is not. We issue our POPR based on the right timing those equipment need to but we still need to wait for that term for 81 now we
凌惇 - 臻鼎-KY, 發言人
(00:56:38)we prepare or we place the order in advance. So that's why I say we synchronize the time for arrival. We have a question on like tea glass supply. I guess what are we doing there to secure more expansion given I've heard that you know some of some of the bigger existing clients in whatever incremental way it comes to us or how we secure them that it will think of them. We are using the similar strategies. We confirm with the order from the clients and we also confirm with the supplier by not only one CCO but so many.
凌惇 - 臻鼎-KY, 發言人
(00:57:34)Because different CCL vendors are focusing different advantage for their own. So I think like at tea glass, Nittobo should be the first one, most high-end. But we also certificate the different vendors like Taiwan Glass, like Grace in China, so many others.And for CCL as well, not only Doosan EMC but also some others. There are many. I think up to eight to ten CCL suppliers. So I think no matter is glass or e-glass is still pricing hikes. So I think these kinds of shortages seem not easy to sufficiently supply yet.
凌惇 - 臻鼎-KY, 發言人
(00:58:29)So I think like our president Jeff mentioned, s
簡禎富 - 臻鼎-KY, 總經理
(00:58:48)ynchronize the demand supply and fully support the transparency of the price, so that we can smoothly keep our expansion and keep gaining market share. I think for the supplier, they will also select their customer. They were not just based on this search demand, they were also considered a long-term relationship even for our customers. So in some situation our customer will bring us and the supplier together to make sure those demand is supply is synchronized so that this demand and supply gap will be shortage.
簡禎富 - 臻鼎-KY, 總經理
(00:59:25)Even though there are a lot of people try to trace in those materials, but since there are so many demands, they also need to justify that. That is why for company like Zhen Ding, we have a long-term partnership with our customer supplier. We have a sustainable growth plan, very transparent and very reliable financial planning that customer can trust us and supplier can trust us too.
Speaker05
(00:59:56)I guess one follow up there. I guess you know we obviously have a very visible input there but I guess when there is like incremental supply coming, they have to decide whether to give it to like you know my partner everything or like how does that decision get made？ I guess given everything is tight, how much to give to
簡禎富 - 臻鼎-KY, 總經理
(01:00:26)in the various layers. I think just like I said earlier, the supplier they select their customer. I think based on partnership, based on the long-term relationship, etc.And for Zhen Type, we maintain very close partnership with our whole ecosystem.So as this slide just illustrates, there are so many important suppliers in this whole ecosystem come to join us, and this is not just one of this kind event. We maintain similar relationship either in big supply chain partnership workshop or individually, our chairman, our COO, etc. We visit our supplier regularly, so we exchange information.
簡禎富 - 臻鼎-KY, 總經理
(01:01:24)Help to maintain a healthy process for the whole ecosystem. I guess the others, they may do similar things, but for supplier they will finally judge which one is more reliable, sustainable, and they don't have partnership. Thank you.
Speaker01
(01:01:41)I'm afraid our time is out, so let's conclude today's meeting, investment meeting with Zhen Ding Technology, and thank you manager Ting and thank you investor in person and online investors. Thank you, thank you very much. By the way, we bring the samples and take a look.