Apacer’s general manager Zhang Jiabiao of the memory module plant stated that the memory market will continue to fall short of supply in 2017 and the DRAM market will fall short of demand in the next two quarters. As for the seasonally volatile NAND sector, it is also expected to be in the third quarter. It will gradually balance, and Apacer’s operational strategy in 2018 will focus on increasing gross margins. The growth momentum will come from rising demand in the industrial control market and consumer e-sports industry. It will be aggressively attacked and seized in 2017 to expand customer acquisition. Driven by the business strategy, Apacer’s 2017 battalion recovered to NT$10,043 million, an increase of 47.22% year-on-year, with an average gross margin of 13%. Although it was lower than the 17% level in 2016, it earned 4.02 yuan per share for the whole year. Since the listing, the board of directors has decided to issue a cash dividend of 2.6 yuan per share with a yield of 6.5%. Zhang Jiaxuan said that 2017 is a rare situation in the past 20 years. DRAM and NAND Flash have risen quarter by quarter, especially the 4th. The quarter was expected to slow down. However, from November to December, the customer’s restocking of stocks was very positive and the operating performance was better than expected. Looking ahead to 2018, Zhang Jiaxuan believes that supply will continue to fall short of demand in the next two quarters. In the fourth quarter, new capacity will be released, but at present, industrial control and server DRAM will not be available in sufficient quantities, and 32G DDR4 that drives the server will continue to increase since 2017. The seasonal factors of mobile phone memory have a great impact. The market sentiment is poor, and it is expected that the third quarter is expected to come up. As for DRAM for graphics, it also benefited from the AI and mining boom. The overall demand is strong. As for NAND, Zhang Jiaxuan stated that due to the substantial price increase of SSD in 2017, The manufacturing giants have invested in NAND production capacity, coupled with significant seasonal fluctuations, there will be an oversupply in the first half of 2018, and the quotations will decline. It is expected that supply and demand will be balanced in the third quarter. The NAND market conditions are volatile, Zhang Jiaxi pointed out. In 2018, it will change the strategy for pursuing revenue in 2017. Instead, it will aim at improving gross profit margins, especially for niche markets such as industrial control, data centers, and servers. Currently, industrial embedded products account for approximately 34% of Yuzhan’s revenue. 35%, overall B2B revenue accounted for more than 60%, B2C products accounted for about 30%, due to the B2B market is relatively stable, the current inventory amount is about 45 million US dollars, while the B2C inventory control is appropriate, the inventory amount is only about 1,000 Ten thousand U.S. dollars With the trend of the Internet of Things, Apacer is optimistic that related smart applications such as AI technology, industrial networking, self-driving, drone and sensing technology applications will gradually heat up, in addition to the memory storage requirements brought by cloud application services, endpoint application data. Accuracy and safety requirements, edge storage is also gradually fermented, driving memory storage capacity requirements. Zhang Jiaxuan further explained that in addition to the industrial control of storage products have been designated by the world-renowned major Internet of things, intelligent application solutions are also carried out with a number of large plants In cooperation, in the future, in addition to continuing to strengthen the global sales strategy, technical support is also an important part of the strategic layout. In addition to stabilizing sources of supply, Apacer's growth momentum will come from the Internet of Things effect in 2018. Strong demand and consumer power in the industrial control market. Competition industry rapid development.
