Q1.What is ADATA’s ticker?
ADATA is traded on OTC market, Taiwan under the ticker symbol 3260。

Q2.Who is ADATA?
ADATA is a leading memory application provider. We buy chips from the DRAM or Flash manufacturer, then make them into modules or end product, such as USB Flash Disk, Flash Card and etc. After those add-on value process, we ship them to our clients, over 1000 distributors in 80 countries all over the world. A-Data now is the No.1 DRAM module provider in Asia, and Flash also ranks No.1 inTaiwan.

Q3.What is the differences between module house and chip manufacturers?
Module house is like the bridge between chip manufacturers and end clients. Therefore we have different business model compare to chip makers. We are less capital intensity. Because we don’t need to invest a lot in advanced technology to keep cost advantage. We are less volatile. Our profitability is rather stable. Channel value and brand value is the most important parts while manufacturing cost is makers.

Q4.When was ADATA’s IPO and at what was the initial offering price?
On October 8th, 2004, at a price ofNTD90 per share.

Q5.ADATA’s capex?
We are not capital-intensed industry. Our capex is limited per year.

Q6. The R&D budgets of memory module makers are fairly limited. What are the opportunities that companies like A-Data have for innovation?
For memory module makers, inventory controlling and channel building are the most important factors of getting profit. Compared with our high sales, the R&D budgets may occupy a relatively small portion. But we put innovation in a very high esteem as one of our core value. This is why we can always provide innovative products and become the leading position worldwide in this industry (No.1 inTaiwan and top 3 worldwide). 

Q7. Is there an opportunity for Taiwan’s DRAM module industry to lead the world, in a similar way to the local motherboard industry?
Of course, there is a good opportunity in Taiwan!!First, we have the given advantage in motherboard industry. Second, there is an incredible DRAM market in Mainland and we have the same both language and culture that facilitate us in entering the Mainland market. The future is prosperous.

Q8.DRAM is basically a commodity. How do A-Data minimize the impact of fluctuating prices and constraints on supply?
The key issue is sales efficiency. When buying DRAM on the spot market, we normally try to make sure that the modules using these DRAMs are sold quickly. It is our target to sell them within 48 hours. This is one of the ways we can minimize the impact of fluctuating prices.