What caused the operating profit margin to decline in Q2 compared to the previous quarter, and what is the outlook going forward?
A.
The decline in profit margin was due to the sharp rise in gold prices and start-up costs for the Hoa Binh Plant. We are working to pass on the gold price increases to the customers.
Q.
You established a joint venture with ACCL. What benefits will this bring to both Meiko and ACCL, and how will it impact business performance?
A.
We were seeking a Taiwanese partner to collaborate with in order to enter the High-Layer MLB business. ACCL was also looking for a JV partner in the ASEAN region. Through the JV, we have secured production capacity proportional to our investment share. The total investment will ultimately be around ¥30 billion.
Q.
What is the future outlook for Semiconductor Package Substrates?
A.
Market factors have caused delays to the plan so far. Mass production of memory packages will begin in the second half of the year, and we aim to become profitable from next fiscal year onwards.
Q.
What is the purpose of investing in the Quang Minh Plant?
A.
The purpose is to increase the capacity of the PCBs for smartphones that we currently produce, enable Any-Layer production and enhance high-density capabilities, as well as improving overall productivity.
Q.
Why did automotive and smartphone PCBs underperform year-on-year in Q1, but then recover in Q2? What is the outlook?
A.
Automotive recovery stems from rebounds with existing customers and increasing projects in North America and China. The recovery in the smartphone segment comes from increased orders from existing customers, plus growing orders for high-difficulty PCBs for Chinese smartphones. Gaming and satellite projects are also performing well, though future sales trends remain uncertain.
Q.
New investments have been announced. What are the future investment amounts and funding plans?
A.
Investment is significant this fiscal year, so we will reduce investment temporarily next fiscal year. Any funding shortfall will be covered by borrowing.
Q.
Explanations regarding AI servers have been limited until now. Why has more detail been provided this time?
A.
Specific projects are increasing, and we have reached the stage of considering new plant construction.
