In terms of product structure, in the first quarter, industrial control products accounted for 46.9% of total revenue, strategic products accounted for 21.8%, consumer flash products accounted for 17.8%, and standard DRAM products accounted for 13.5%.
The gross margin of the first quarter of Transcend reached 22.2%, which was the new low level in the past year. This was mainly due to the price drop of NAND Flash and the price pressure of the product, causing the gross profit margin to fall. In the non-operating segment, Transcend held the cash position in the US dollar. The proportion reached 70%. In the first quarter, due to the appreciation of the Taiwan dollar, the exchange loss was impacted.
Looking forward to the second quarter, it seems that the DRAM memory contract price will remain high in the second quarter, NAND will continue to be out of 3D TLC capacity, the market supply will increase, the oversupply situation in the second quarter will continue, and the price will probably continue. As for the industry, as the exchange rate stabilizes, the first quarter's exchange loss is expected to recover in the second quarter.
Looking forward to the second half of the year, Transcend expects that with the increase in the proportion of mobile phones equipped with NAND Flash, which will drive demand, the price pressure on NAND Flash in the second half of the year is expected to ease. Transcend will also adjust its price elastically in due course.
In addition, Transcend continues to strengthen niche strategic products, optimize product lines, including Apple upgrades, solid state drives, etc. In the field of industrial control, Transcend also introduced 3D TLC NAND flash memory embedded solutions, transmission efficiency is equal to MLC Flat (2D) flash memory, but the price is more competitive.