Financial Data and Key Metrics Changes - The company reported strong growth in Q1, with significant improvements in gross margins, particularly in the Gaming Components and Systems segment, which reached the highest levels in two years [39][41] - The overall revenue growth is expected to continue, with a focus on maintaining low expenses to achieve higher EBITDA margins [58][62] Business Line Data and Key Metrics Changes - The components business experienced notable year-over-year growth, driven by the GPU launch cycle, while peripherals also saw growth, primarily due to the Fanatec acquisition [6][44] - The peripherals segment showed strong double-digit growth throughout 2024, although growth slowed slightly in Q1 compared to previous quarters [42][44] Market Data and Key Metrics Changes - The gaming market continues to expand, with younger demographics spending more time gaming, which supports the company's growth [10][24] - The acquisition of Fanatec is expected to enhance market share in the racing sim products sector, which has a total addressable market exceeding $1 billion [45][52] Company Strategy and Development Direction - The company is focusing on customization and AI integration in its products, aiming to enhance customer experience and product offerings [27][30] - The leadership transition to Tee La is anticipated to bring a stronger emphasis on customization and AI, leveraging her extensive experience within the company [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience to macroeconomic volatility, citing the ongoing GPU cycle as a significant tailwind [23][24] - The company is well-positioned to navigate tariff uncertainties, having already moved much of its production outside of China [16][19] Other Important Information - The company has a low net debt position and is focusing on growing revenue without significantly increasing expenses, which is expected to improve margins [62][63] - The integration of Fanatec into the company's systems has been completed, and there are plans to expand its market reach beyond direct-to-consumer sales [52][53] Q&A Session Summary Question: What impact have tariffs had on the business? - The company has minimized direct shipments from China, with only 19% of US products coming from there, and expects this to decrease to mid-single digits by year-end [16][17] Question: How does the company view its competitive position regarding sourcing? - The company believes it is in a better position than competitors due to its proactive measures in moving production out of China [20][21] Question: How resilient is the business to macroeconomic conditions? - Management noted that economic uncertainty often leads consumers to spend more time gaming at home, which can positively impact peripheral sales [24][25] Question: What changes can be expected under the new CEO? - Tee La is expected to emphasize customization and AI integration, building on her long-standing role within the company [26][28] Question: What is the outlook for the GPU cycle? - The GPU cycle is a significant driver for new PC builds, and the current launch is expected to spur additional revenue as demand exceeds supply [31][34] Question: How does the company plan to achieve higher EBITDA margins? - The strategy involves growing revenue while controlling expenses, particularly by focusing on higher-margin peripheral products [58][60]

Financial Data and Key Metrics Changes - For Q4 2024, net revenue was TWD 141.4 billion, a quarter-over-quarter decrease of 10% but a year-over-year increase of 26% [4] - Gross profit for Q4 was TWD 20.6 billion, and operating expenses were TWD 16.3 billion, reflecting investments in R&D [4] - Net profit for Q4 was TWD 1.6 billion, with an EPS of TWD 2.20 per share [5] - For the full year 2024, net revenue reached TWD 548.5 billion, a year-over-year growth of 22%, with operating profit at TWD 27.4 billion, a 229% increase year-over-year [8] Business Line Data and Key Metrics Changes - The systems business group achieved 20% to 25% year-over-year growth in Q4 2024, with gaming PCs leading at a 35% to 40% revenue growth [35][36] - The open platform business group also saw a 20% to 25% year-over-year growth, particularly in motherboards and graphics cards [38] - The AIoT business group reported over 50% year-over-year growth, driven by the NUC Mini PC lineup [41] Market Data and Key Metrics Changes - Revenue mix by region showed Asia at 44%, Americas at 25%, and Europe at 31% for Q4 2024 [12] - For the full year, Asia contributed 7%, Europe 29%, and America 24% to revenue [12] Company Strategy and Development Direction - The company aims to capitalize on the shift from cloud to edge-based AI, with a focus on innovative R&D and comprehensive AI solutions [13][19] - ASUS plans to expand its AI server market, particularly in Europe and the U.S., and aims for over 30% market share in the gaming PC segment [29][31] - The company is dedicated to promoting AI across various sectors, enhancing user experience through innovative applications [24][27] Management's Comments on Operating Environment and Future Outlook - Management anticipates challenges and opportunities in 2025, particularly due to tariff policies and market shifts [14][96] - The company expects Q1 2025 to show a 20% quarter-over-quarter shrink in the PC market, followed by a 30% growth in Q2 [16] - Management expressed optimism regarding the impact of new GPU releases and the transition to Windows 11 on future sales [55][84] Other Important Information - A cash dividend proposal of TWD 34 per share was passed, representing approximately 80% of profits [9] - The company has been recognized for its sustainability efforts, receiving leadership ratings in climate change and water management [48][49] Q&A Session Summary Question: What are your responses to the tariffs? - The company has prepared by moving inventory to U.S. hubs and is adjusting production locations based on tariff policies [52][54] Question: What positive factors do you anticipate for Q2 2025 growth? - Anticipated growth factors include the release of new NVIDIA GPUs, a new platform for AI PCs, and the transition from Windows 10 to Windows 11 [55][57][59] Question: Can you elaborate on the bad debt situation? - The bad debt is related to a client in India, which accounts for no more than 10% of total server revenue, and management is cautiously optimistic about recovery [61][62] Question: How do you expect the server segment to grow in 2025? - The server segment is expected to account for low to mid-10s in revenue mix, with continued growth anticipated [88][94]