Financial Data and Key Metrics Changes - The company achieved a record revenue of $4.3 billion in 2024, an increase of 1.6% compared to 2023, driven by strong customer production schedules in APAC with China OEMs [12][41][46] - EBITDA grew by 22.5% year-over-year, reaching $424 million, with margins expanding by 170 basis points compared to 2023 [40][49] - Net profit improved by 68% to $62 million, with a margin increase of 50 basis points [42][58] - Free cash flow rose to $166 million, an increase of $61 million compared to 2023 [40][60] Business Line Data and Key Metrics Changes - The company launched a record 77 customer programs in 2024, with 45 tied to electric vehicle programs [13][16] - Customer program bookings totaled $6 billion in lifetime revenue, including significant steer by wire production awards [14][20] - The APAC division achieved record revenue of $1.3 billion, growing more than 10% compared to 2023 [14][48] Market Data and Key Metrics Changes - APAC adjusted revenue increased by 11.7%, significantly outperforming the market by 11.3%, driven by new and conquest program launches [46][47] - North America revenue decreased by 2.9% to $2.19 billion, while EMEA SA revenue slightly declined [48][49] - The company is now the number one steering supplier in the China market among domestic OEMs [12][15] Company Strategy and Development Direction - The company aims to drive innovation and growth, focusing on becoming a leader in motion control technology [5][6] - Key strategies include expanding the customer base, strengthening technology leadership, optimizing cost structures, and targeting emerging markets like China and India [11][12][29] - The company is committed to leveraging AI technology and automation to improve operational efficiencies [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the steer by wire technology, particularly in the China market, which is expected to lead in adoption [33][82] - The company anticipates a flat global OEM production volume in 2025, with expectations to outperform the market by 200 to 300 basis points in revenue [61][63] - Management is actively working to mitigate tariff costs and is preparing plans for compliance with USMCA requirements [76][77] Other Important Information - The Board approved a dividend increase to $22 million, representing a 35% payout ratio, up from a historical 20% [15][40] - The company opened a new facility in Changshu, China, to enhance manufacturing and testing capabilities [26][28] Q&A Session Summary Question: Can you provide more details about the steer by wire project size and content compared to traditional EPS? - Management indicated that the steer by wire system for the North American EV leader is a road wheel actuator, similar to a dual pinion system, with additional safety redundancies [68][69] Question: Are there discussions with OEM customers regarding potential tariffs and production shifts? - Management noted that the tariff environment is dynamic, and they are working with customers to mitigate costs and develop countermeasure plans [75][76] Question: What is the expected steer by wire revenue mix by 2027-2030? - Management expects steer by wire to represent about 5% of total revenue by 2027-2030, with China leading in adoption [82] Question: What is the outlook for the U.S. auto market growth amid tariffs and inflation? - Management anticipates a 3% reduction in North American production volumes, which could be at risk due to tariffs and consumer sentiment [84][85] Question: What is the latest margin guidance for the near term? - Management did not provide specific guidance but indicated a focus on improving margins, with expectations for incremental expansion into 2025 [87]