LOTES — Interim / Quarterly Report 2024

Mar 13, 2025

嘉澤端子工業股份有限公司

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Brief Company Introduction

As many of you may know, LOTES specializes in design and manufacturing interconnection solutions for Server, PC, Automotive, Industrial and Medical.

LOTES maintains full control over our manufacturing processes through in-house integration.

This unique capability not only enhances our flexibility in customer support but also accelerates our ability to deliver cutting-edge solutions ensuring we stay ahead of market demands.

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Stamping Die Injection Mold
沖壓模具 塑膠模具
100% of design and
fabrication in house
100% 自行設計及製造
Assembly Jigs Automation Machines
組裝治具 自動機
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Revenue EPS(NT$)

Revenue & Key Ratios

Gross margin(%)

Operating margin(%)

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	Revenue & Key Ratios 0 10 20 30 40 50 60 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Revenue EPS(NT$) Gross margin(%) Operating margin(%)	Revenue & Key Ratios 0 10 20 30 40 50 60 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Revenue EPS(NT$) Gross margin(%) Operating margin(%)	Revenue & Key Ratios 0 10 20 30 40 50 60 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Revenue EPS(NT$) Gross margin(%) Operating margin(%)	Revenue & Key Ratios 0 10 20 30 40 50 60 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Revenue EPS(NT$) Gross margin(%) Operating margin(%)	Revenue & Key Ratios 0 10 20 30 40 50 60 3,000 4,000 5,000 6,000 7,000 8,000 9,000 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Revenue EPS(NT$) Gross margin(%) Operating margin(%)
	3,000 4,000 5,000 6,000 7,000 8,000 9,000	0 10 20 30 40 50 60 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24
Unit: Million (NT$)		Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 21,391 27,099 24,483 30,088 4,839 5,733 6,075 6,146 6,651 7,269 7,032 5,726 5,722 6,463 6,539 6,347 7,438 8,066 8,300 1,969 2,187 2,434 2,636 2,898 3,016 3,386 2,603 2,589 3,072 3,215 3,256 3,856 4,244 4,411 998 1,104 1,148 1,054 1,218 1,190 1,205 1,073 1,088 1,148 1,223 1,227 1,290 1,454 1,552 970 1,108 1,260 1,582 1,680 1,865 2,141 1,530 1,500 1,923 1,991 2,029 2,566 2,790 2,858 709 925 1,004 1,383 1,495 1,980 1,466 1,181 1,284 1,867 1,259 2,105 2,264 2,061 2,845 33.32 44.49 50.58 82.77 6.85 8.91 9.5 13.03 14.21 17.91 13.55 10.96 11.56 16.77 11.36 18.57 20.01 18.33 25.86 48.84 47.7 50 50.1 40.53 38.16 40.06 42.89 43.57 41.49 48.16 45.46 45.35 47.54 48.93 51.31 52.22 52.62 53.15 19.98 19.33 20.73 25.75 25.25 25.66 30.45 26.72 26.22 29.76 30.31 31.97 34.8 34.59 34.44 191.13 249.92 242.14 261.15 233.72 266.59 272.80 361.10 304.98 355 380.41 406.31 286.69 299 319.81 136.55 186.44 181.67 195.87 178.24 218.27 225.61 313.77 268.69 316 340.14 363.57 258.85 269 287.54 52.32 31.70 31.66 30.80 33.02 28.58 26.39 23.91 27.3 24.13 22.58 21.57 27.71 26.63 24.4
Yearly Revenue		21,391	27,099	24,483	30,088
Quarterly Revenue
Gross profit
Operating expense
Operating profit
Net profit
Yearly EPS(NT$)		33.32	44.49	50.58	82.77
Quarterly EPS(NT$)
Payout R(%)		48.84	47.7	50	50.1
Gross margin(%)
Operating margin(%)
Current ratio(%)
Quick ratio(%)
Debt ratio(%)

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Business Coverage

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Strategic
Customers LINTES
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Revenue share 2022 2023 2024 Q1’24(63.76E) Q2’24(74.69E) Q3’24(80.88E) Q4’24(83.47E)	29~30% 26~27% 34.1% 33~34% 36~37% 31~32% 35%	12~13% 13~14% 12.25% 12~13% 12~13% 11~12% 12~13%	25~26% 28~29% 27.47% 27~28% 25~26% 28~29% 28~29%	12~13% 12~13% 9.8% 9~10% 9~10% 11~12% 8~9%	3~4% 5~6% 6.32% 5~6% 5~6% 6~7% 6~7%	4%~5% 2~3% 2.67% 2~3% 3~4% 2~3% 2~3%	12% 9~10% 7.31% 8~9% 7~8% 7~8% 6~7%
Current main product	-CPU Socket -DDR -PCIE	-SODDR -M.2 -I/O -PD Cable	-All types of connectors	-Connectors -Mechanical parts	-Connectors -Wire harness	-Connectors -Wire harness	-High end Docking cable -AOC, AEC
Market trend (by Volume)			→ or	→ or	→ or	→ or
Sales outlook	(2)	(4)	(3)	(5)→or	(1)	(5)	(5)
Future product plan	-CPU Socket -HSIO & Cable -SOCAMM	-SODDR5 -M.2 Gen 5.0 -USB4 -CAMM2	-Customized	-Customized	-Customized	-Customized -Medical	-High Speed Cable

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2025 Content Growth Overview

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Segment Key Growth Trends in 2025

▪ Intel’s Eagle and AMD’s Bergamo/Turin penetration rate to grow from average 30% – (2024) to average 60 70% (2025). Server ▪ Intel’s Birch Stream entering the market with an expected 10 – 15% penetration rate. ▪ Continued growth in PCIe cables . ▪ SOCAMM and QD will start contributing. AI-Related ▪ Increased demand for power connectors and cables . Products ▪ LGA connectors (GPU sockets) identified as a potential business opportunity. ▪ Growth driven by higher adoption of: Desktop Socket V1 (Intel), Socket AM5 (AMD), DDR5 , and PCIe Gen5 . ▪ Laptop Expected higher penetration of SODDR5 , M.2 PCIe Gen5 , and USB4 Type-C .

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Market Update

Market Update	Market Update	Market Update	Market Update
Server Laptop Desktop
ODM Average Production Volume	2022 1.2KK/M 2023 975K/M 2024 1.18KK/M Q1’24 : 1KK / M Q2’24 : 1.1KK / M Q3’24 : 1.3KK / M Q4’24 : 1.3KK / M Q1’25 : 1.25KK/M	2022 12.5KK/M 2023 11.7KKKK/M 2024 10.6KK/M Q1’24 : 10KK / M Q2’24 : 10.5KK / M Q3’24 : 11KK / M Q4’24 : 11KK / M Q1’25 : 10KK/M	2022 6.5KK/M 2023 5.5KK/M 2024 5.5KK/M Q1’24 : 5.0KK / M Q2’24 : 5.2KK / M Q3’24 :6.0KK / M Q4’24 :6.0KK / M Q1’25 : 5.4KK/M

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February drop

million NT$	Jan	Feb
2024	2,563,729	1,419,384
2025	2,677,630	2,208,096
YoY	4%	56%
MoM		-18%
Cumulated YoY		23%

The observed decline in February's revenue is primarily attributed to the Lunar New Year festivities.

Typically, employees require approximately two weeks to resume full productivity post-holiday, leading to a temporary lull in business activities.

Given the impact of the Lunar New Year, it's advisable to assess January and February's performance collectively to obtain a more accurate representation of the company's financial health.

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