Ladies and gentlemen, welcome to AAC Technologies 2021 Q1 Results Investors' Webcast and Conference Call. This presentation will be conducted in English. Question and answer sections will be in English and Putonghua in the live channel, with English simultaneous interpretation in interpretation channel. At this time, all participants are in a listen-only mode. If you wish to ask questions after the presentation, please dial into the live channel before Q&A session starts. You will need to press star one on your telephone to be in the question queue. I will now hand over to your host today. Please go ahead. Good afternoon. Welcome to AAC Technologies Q1 2021 Results Conference Call. I'm Maggie Huang, Investor Relations Director of AAC Technologies. I'm glad to have our CEO, Mr. Benjamin Pan, Managing Director, Mr. Richard Mok, EVP and CIMO, Mr. Kelvin Pan, CFO, Ms. Dan Guo, and our Optics Business Group's Chairman, Mr. Jack Duan, and the CEO, Mr. Zhu Bingke, joining us today. Before we start, we would like to remind you that copies of our result announcement and the presentation are both available on our website. We would also like to draw your attention on the disclaimer on the last page of this presentation. Some information we discuss today may contain forward-looking statements. With that, I'm going to present our results for the quarter. In the first quarter of 2021, the group achieved a revenue of RMB 4.29 billion, representing a year-on-year increase of 20.6%. The demand of the global smartphone market is on a recovering trend. The major overseas customers' peak season had a delayed start in Q4 last year. Various business segments of the group had further penetrated into domestic Android markets. All of the reasons above contributed to a significant year-on-year growth of the group's total revenue. Benefiting from improved operating efficiency, effective cost control, and the continuous optimization of product mix, the overall gross profit margin increased by eight percentage points year-on-year to 31.2%, and the net profit increased significantly year-on-year to RMB 532 million. The revenue contributed by optics business continued to increase in Q1 2021, which accounted for 15.7% of the total revenue, indicating a healthy growth trend of optics business. For optics business, the group's market share continued to grow, while gross profit margin of plastic lenses reached 36.3%. For the 1G5P hybrid lens products, mass production and shipment were completed in the first quarter of 2021. Differentiated user experience will accelerate the introduction of other high-end hybrid lens products. For the camera module business, shipment increased steadily. Gross profit margin started to turn positive in the first quarter, and high-end projects progressed smoothly. Acoustics Segment enhanced management efficiency helped the Gross profit margin of Android acoustics products to improve. The standardized small cavity speaker module to be launched is expected to fit the market trend of stereo acoustics. By improving user experience, it will further strengthen the market competitiveness as well as profitability for the segment. For Electromagnetics Drives and Precision Mechanics Business, our haptics feedback solution leverage on the high performance X-axis haptics motors provides a high-quality user experience for all application connections in the ecosystem. This helps to enhance customers' haptic perception in order to promote product upgrade and integration of our customers. For the precision mechanics business, the group expanded smoothly in new businesses such as notebook and tablet. With respect to the MEMS segment, our market share in the smartphone market further increased. Moving forward, the group will accelerate the expansion in IoT, smart home appliances, wearable devices, and automotive markets. We believe a sound financial position is critical to the sustainability of the group's development, which ensures the group's ability to continue to innovate and develop in the future. As at March 31, 2021, net operating cash inflow amounted to RMB 872 million, with CapEx of RMB 1.1 billion. Out of the total CapEx, about 68% are for product lines and about 31% are for the constructions. Net gearing ratio stood at a healthy level of 2.7% with a cash position of RMB 6.71 billion as at 31 March. The group remains prudent in financial management and stringently manages capital expenditures and R&D expenses to conduct active liquidity management. In the first quarter of 2021, along with an increase in shipment of plastic lens and a steady growth of the camera module business revenue from the Optics Segment increased by 175.7% year-on-year to RMB 674 million. The production yield and the production efficiency of the optics business have improved, especially with overall gross profit margin increased by 18.1 percentage points year-on-year to 27.8%. The market share of the group's plastic lens business further expanded with the steady improvement in the production yield and efficiency. The gross profit margin of plastic lens products reached 36.3%, which indicated the group's capabilities in terms of technology, operation, and production management had further improved. The proportion of 6P and above high-end plastic lenses has increased in Q1 2021, and is expected to increase continuously. Furthermore, we have successfully obtained the supplier certifications for certain Android flagship smartphones and will steadily increase our market share among overseas Android customers. We will continue to optimize production costs and the product mix, and expecting the gross profit margin continue to improve in 2021. The group's unique WLG hybrid lens products have been mass-produced and shipped as scheduled in the first quarter. The customer's phone is already released to the market. This is a milestone development for our optics business. We received positive feedback from our customers, and we continue to work closely with customers on the application for this product in other mobile phone models. Currently, we are having close dialogues with leading global OEMs with respect to the 1G6P hybrid lens projects. Projects with two pieces of WLG glass lenses are steadily in progress. It is expected that samples will be sent to customers by the end of this year. In terms of production capacity expansion, the Chongqing glass lens plant was completed at the end of last year, and the Czech molding tool plant is expected to be completed in the second quarter of this year. Our production capacity will be improved significantly, which will boost the customers' confidence to adopt hybrid lens instead of traditional plastic lens. The camera module business has shown a steady progress as planned. The group's camera module R&D and manufacturing capabilities have been well-recognized by customers. Its gross profit margin has turned positive in the first quarter of 2021. The high-end 48 mega project is also on track. Going forward, the group will continue to improve high-end camera module manufacturing capabilities. Operation of the VCM production lines has begun, and certified shipments in small batches have been made to customers. In the first quarter of 2021, due to the major overseas customers' peak season partially postponed, the revenue from the acoustics segment increased by 47.5% year-on-year to RMB 2.1 billion. With the management of acoustics product lines continued to be optimized and the cost reduction and efficiency enhancement efforts through project-based closed-loop management, the gross profit margin rose by 11.4 percentage points year-on-year to 37.4%. With the stereo and multi-track solutions becoming standard features for flagship and foldable phones, and gradually penetrating into the low and mid-tier models, we expected the market size of the acoustics industry to increase. With a smaller size and good sound quality, the group's standardized small cavity speaker module is seen to be perfectly fit to the stereo design and promote the popularity of stereo acoustics. The standardized small cavity speaker modules will be launched in Q2 2021. The standardized products will be able to fully leverage on the group's advantages in automated production, thus effectively increasing the capacity utilization rate and improving the gross profit margin. In the first quarter of 2021, due to a decline in unit price for electromagnetic products from a major customer and a decrease in shipment volume of the metal casing business, revenue for the combined segment decreased by 27.3% year-on-year to RMB 1.23 billion. Due to increased profit margin from the metal casing business, the combined gross profit margin for this business segment increased slightly by 1.9 percentage points from the same period last year to 25.5%. The total shipment volumes of X-axis haptics increased steadily year-on-year, mainly because we have successfully promoted the X-axis haptics Android market. The Android haptics shipment increased by about 60% year-on-Q. The haptics solution launched by the group has a precise, exquisite, and rich human-computer interaction function, which provides the best user experience and enhances consumer haptic perception. We have received positive feedback from the customers. The group will continue to promote product upgrade and integration for customers to improve end-user experience. The effect of product upgrade is expected to show more results in the fourth quarter of 2021, thus driving a potential multifold shipment volume growth in 2021. The group's precision mechanics business was affected by customer shipment decline, and its revenue decreased notably compared to last year. However, benefiting from the flexible assessment of production capacity and effective cost control measures, the gross profit margin remained relatively stable with a slight increase. Relying on the advanced precision manufacturing capabilities, the group's metal casing business has gained leading market shares in the flagship models and high-end smartphones among major customers. In response to an uncertain external environment, we are proactively expanding into different product markets. At the moment, we have successfully introduced multiple smartphone brands in metal casing business, and entered notebook and tablet metal mechanics markets. It is expected to result in higher production utilization and mitigate business risk. In the first quarter of 2021, given the increase in market share, revenue from the MEMS segment grew by 42.2% year-on-year to RMB 283 million, and gross profit margin remained stable from the same period last year to 16.7%. To meet rising market demand, we have successfully expanded the production capacity of MEMS microphone this year to 120 million units per month. While maintaining a high market share in the smartphone market, the group will continue to expand into IoT, smart home appliances, wearable devices, and automotive markets. TWS earphones and notebook markets have demand for product upgrade for microphones with a higher signal-to-noise ratio, smaller size, and lower power consumption. Further market penetration in these markets will help to improve the proportion of high-end MEMS products. On sustainability front, we continue to strive for best practice for ESG in the industry. Our disclosure adheres to the top international standards, maintaining a high level of transparency, and to be more efficient and responsible in ESG management. We've received several key ESG awards, including HKICPA Best Corporate Governance Awards 2020, grand award in Best Large-Cap ESG Report, which fully demonstrates markets and industries' recognition for our ESG performance and reporting. In addition, our ESG performance is well-recognized internationally as well included in the FTSE4Good Index and Hang Seng Corporate Sustainability Index, and we received high ranking by MSCI. We hope to build a truly sustainable business conscientious in environmental, social, and governance aspects with strong corporate governance and risk management structure to bring long-term defensive investment of high growth potential to our shareholders. This concludes the overview of our Q1 financial results. There are more supplementary information in the appendix section for your reference. Our management team are here to take your questions. You can ask questions in Chinese and English. We have simultaneous interpretation in other line from Chinese to English. Thanks. Thank you. We will now begin the question and answer session. [Non-English content] First question is from Huatai Securities. Please raise your question. I want to ask, the first question is about acoustics. Many people are concerned about acoustics. I want to ask the GP margin. There's a big increase to 30%. What's the reasons behind and how sustainable it is? Before it was 40%. Whether it will return to 40%, how do you see the outlook of acoustics? Okay. Thank you for your question. I will answer the question first. Then I will let other colleague and management to add the information. Generally speaking, last year, we faced a severe situation. For the last year's Q1, the baseline was low. For this year, the Q1 is resuming. According to the IDC, the Q1, the global shipment volume for cell phone is increasing. Global is also in the high digit growth, therefore, t he overall shipment volume is very good. In terms of the acoustics and the gross margin has reached 37.4%. It has two reasons. The first is related to the overseas clients, and we have a very sound GP margin. We are also influenced by the external factors. Some, the peak sales was postponed to this quarter, and this boosted the sales of our acoustics. Other than the external factors, we also shared about the information on our management improvement, and we have a detailed management. Those improvement and upgrading of the management also help the growth of our GP margin. For the Android, and it increased four percentage point to 27%. For Q2, it is relatively low season in sales, and we are also influenced by the upstream 3C market. It depends on the specific situation of the market. All in all, we still foresee an exponential increase in the smartphone market, and the market is also focusing on the differentiation features of different smartphones. For this upgrade trend and also the increase of the smartphones, those are the positive factors to us. Combined both external and internal factors, we have the confidence for the GP margin, and we still have a prudent attitude towards the GP margin. I will add a little. This is about the GP margin on acoustics. I also want to mention that, and we emphasize we are technology-oriented, and a technology platform is very important for us. We also see a structural reform in this GP margin. Mr. Guo mentioned the gross margin is less than 27%. It's about 27%, and in the future, this will become stronger. This is due to this small cavity speaker modules and all the market are promoting the stereo products. That's a very important product. This caused a structural reform and change for us. It's not related to the price. In the new platform, the price is a little increased, but more importantly, based on this small cavity speaker module, it caused a fundamental change to the Android system. In the past, we had this 300- 400 modules. Since last quarter and also for this quarter, the change will be very obvious. We will maintain the user experience while develop the small cavity speaker. This is very important for us. We don't have such models, and the modules will reduce from 300 to 400 to 200. Next year, significantly improved our production and also the efficiency of our productivity. In terms of the GP margin of acoustics, we have already returned the profitability track and the GP margin track years ago. My second question is on optics. This introduction is very detailed. You talked about the Czech plant and the Chongqing plant. The overall deployment is broad, and WLG is mass-produced and shipped. What's the strategy on this segment? Any change on its strategy? With the acoustics, it's on the upgrading and some clients are withdrawing. We witnessed a lot of change in the end market. With the change of the market, how do we cope with those changes? For the optics, especially on the export, we are still following our strategy. You will remember in the past, many people think there was a big gap between the profitability margin and the GP margin. Actually, the plastic lens gross margin is about 36%, and in the second quarter, this trend, this momentum, will be stronger. For the fourth quarter and the third quarter, our target and expectation of the gross margin is about 40%, and we have a very prudent attitude towards the ASP of the plastic lens. We will also have this strategy. For the plastic lens, we emphasize the cost. The cost represents our technology and the digitalization technology, as well as management efficiency. From the statistics of the first quarter, it will continue to prove our strategy is correct. From the ASP, and some companies in the industry have a pessimistic attitude toward the ASP. For us, we think the ASP is continuing to decline because of the technology improvements. For these plastic lenses, we think it will still in the growth because the industry is welcoming. Second, we still think, for example, this glass plus the plastic, it will be a very good strength. Glass plus plastic, this is the future trend. Based on this structure, we think the future trend of the hybrid lens and glass and plus plastic will become strong. We also have the WLG technology. They can meet the need of the higher requirements of the smartphones, and also the camera's demand. The GMO mass production has a large gap between WLG, and we have already proved it. Our main clients admit it. From the development of optics, with the completion of the plant in Chongqing and the Czech, we are just followed our plans, and our WLG will challenge 5 million production capacity. The next step, we will challenge 10-15 million production capacity. Maybe there's a little delay than our expectation, but from the strategy as well as the value and the statistics, we can confirm its future development. Thank you for your question. Next question is from Gordon. Good afternoon. I have several questions. First, I'd like to ask about the optics, and you talk about the continued growth of our optics. We don't have a very obvious growth in the first quarter, so this is my first question. Q1 and Q4, in terms of their gross margin, this growth is very obvious and prominent. Okay. For our optics, actually, the sales is seeing a great growth, and this improved significantly. It is due to our production yield, the gross margin reflected this cost control, the detail of the management, those are our core competitiveness. From the fourth quarter, 28%, we improved it to over 30%. Another thing I want to comment on the product mix. We set our sights on the structural optimization of our plastic lens, for this 6P, it's about 4%. It's also improved. For this ASP, it also has a steady growth. Those are the important factors. We are not only considering the shipment volume. The cost control as well as ASP level are also important for us. For the optics and for plastic lens, the revenue is about HKD 100 million. Can you give the intel on the breakdown? Other than this, and the profitability of the optics, and also the loss of the optics. What's the information? Yes. Another growth area is from the module, and the sales for the module is about 15%, and it increased to 25%, and this growth is prominent. For the modules, we started to expand its production capacity, but the gross margin has already reached a high digit. High single-digit growth, this is a very prominent phenomenon in the industry. Second, our plan on the production capacity is in line with the demand of our clients. I will make some supplements. For the Q1, our optics is still profitable, right? It's not reviewed in our report. Actually, optics contributed to our net profit. Yes. This is a very good sign. Yes. The net profit is positive and profitable in Q1, right? Yes. I just want to clarify this. For the second point, other than the plastic lens, the modules accounted the largest percentage. Other than G+P, and this is for the future momentum of the optics. When we tap to the 7P and 8P, actually, the P doesn't mean plastic. P means pieces. It means seven pieces to eight pieces. Those are in the discussions in our Android clients. That's also why we have the confidence in the WLG. We also see this GP margins growth, and the growth is also related to the demand of our clients. Our clients need us to be the main supplier. For the modules, we also have our major clients. For the first quarter, our sales has embarked, and on Q2 and Q3, and even Q4, we will become the Android systems' main supplier. We still follow our own plans to lay a very solid foundation for our development. WLG, I have another question. You also talk about 1G6P, and this will be delivered in the end of this year, right? Any other key products or other main projects on WLG? We mentioned the project in the end of this year, and this is very confirmed. For those main Android clients, we have three to five projects in the progress. At present, we cannot confirm whether this will be completed in the end of this year or not. We want to show our clients to our plants in Chongqing and check. We want to show that we have this confirmed production capacity to our clients first. Thank you for your question. Next question is from CITIC. Good afternoon. We talked about optics and acoustics, but I want to know more information on the management reform and change. What the reform is and what's the detailed change on the management? Compared with the strategy of three to four years, what's the biggest change for the future development? Maybe we invite Kelvin to answer this question. For the management reform and change, it's not only referred to our management, it's also covered on our business and the structure. The multi-product structure needs more efficient management and system. Based on this, we propose the reform on the management. The results and the business mode change have already showed the efficiency of our reform on the management. At the beginning of 2020, and we did the change of departments, and we also set a clear target goal in each production line. For example, the new strategies on the report is the results and the fruit of the reform of the management. We have actively planned for our productions and business development in the future. It not only includes the traditional business, but also some new business segments like automobile and IoT, et cetera. For us, the management reform or the core reform on the management, it includes several aspects. First, each production line and each department are closed loop management, and this will increase the efficiency of our department. Second, for the AAC Optics, we have this equity incentive scheme, and this will also extend it to other departments. Third, all the closed loop management must be directly linked to the incentive schemes. Other than the add of value proposal and their short and long-term strategy, we think the efficiency will be largely improved based on this reform on the management. Thank you very much. Thank you for your question. Next question is from HSBC. Good afternoon. I want to ask two questions. The first one is about our electromagnetic drives and precision mechanics, we saw the decline in the revenue, you also mentioned the price decline of the clients. This is the general situation in Android system or in the industry. Can you elaborate on it? The second quarter, you talked about the laptop notebooks, whether this will boost the revenue on this segment. Thank you. Thanks for your question. For our drives and precision mechanics, the decline of the sales is related to different departments and aspects, and also the price accounts of our clients, they will influence the revenue, and also the reduction of the shipment volume of Android products. Those are the reasons for the revenue reduction. For us, we actively develop into the laptops and notebooks, and they have already created the revenue for us, and even we tap into the tablets, and we will increase our production efficiency and our gross margin. It's not easy for us to comment on the export clients because of the confidentiality. I want to emphasize, another driver is from the motor from Android M. The shipment volume is seeing a great growth in the last several quarters, and the growth is about 60%-70%, and the gross margin is sound. For example, our X-axis haptics motors. This will help to solve the problems and also increase the customer's experience as well as gain the market share. Based on those technology, we think this will help us to increase gross margin. My second question is on optics, and the gross margin is increasing on the lenses, and for the ASP, it's also hiking. Therefore, I want to ask whether we still have the potential to increase our gross margin. For the Q2, many people estimated there would not be a large shipment volume of the smartphones. Any reasons you want to share? From the perspective of plastic lens, Q2, we used the same production equipment, but the efficiency will be increased. This is due to the management and the technology. Based on the statistics, the Q2 shipments will be bigger than the first quarter, and this is due to our expansion of our business and work. Those are the fundamentals for our growth. In terms of the ASP, 60, the price will hike. We also had some adjustments on the traditional and old products. This is in line with what you have heard in the market. The gross margin is from technology and also the efficiency of the shipment volume. Okay. Thank you. Next question is from Jeffrey Z. Tai. First question, I want to ask about modules, and Mr. Guo mentioned starting from this quarter, our modules, it's in a high efficiency. For these modules, we just started last year, so why the growth rate is big. What's the outlook for the modules business? I can answer the question. For the modules development, it's based on several aspects. We also changed the management concept. Based on the traditional business, traditional acoustics and optics, we self-developed technology and also learned from the outside experts. For modules, we can rely on the talents of the industry. Modules become the first segment for us. We accumulate and invite the talents of the industry to form a team for us. The development of modules are promising, the modules development is stronger than the first quarter. The production capacity as well as the customer demands are met, we have 45 million. Also the 64 MP, even for some periscope as well other industries, we want to expand our business to those markets. Those are based on the technologies development. Also invited the [PCs] as our management, and also the reform of our business department. Compared with our competitors, we have our advantages, but as well as disadvantages. We have those incentive schemes and a closed-loop management. For some assured production line, we need to find the experts and the talents as soon as possible to speed up our development. This must be in line with the overall reform and efficiency improvement of management. Okay, I don't need to add. My second question, I know we see the shipment volume of a smartphone for the second quarter is weakening and the other factors, for example, the pandemic in India is out of control, whether those will influence our Q2. If there's some change on the external demand or a change of the pandemic, this will cause impact on us, and we are actively discussing with our clients on the production plan. Last year, we also experienced the monetary market that even in such a severe situation, we also faced the shortage of the chips. We still observe an obvious Q-on-Q increase. Facing this severe situation of last year, we constantly improved our detailed management and cost control and reform of our structure and management. We achieved the results on the closed-loop management. This is also related to our results and performance. With this linkage of the results and performance, I think we will continue to improve our profitability. Thank you very much. No further questions. Thank you. Next question is from Credit Suisse, Tina Wong. Thank you, management. My first question is on the Android haptics. You told this obvious results in Q4, this is a multiple shipment growth. This is on the retail product or the large influx of customers. My second question is on optics. Modules will reach its scale effect. I want to ask when you can disclose the shipment volume and in your vertical integration, I want to know the deployment and plan. VCM is in the operation. What's the performance? Any results on its cost control or any influence on the gross margin of modules? For the Android haptics motor, I would like to invite Kelvin to answer. Okay. Is it related to the overall production lines and the strategies? Yes. For the Android haptics motor, it is market-driven. In different scenarios in social media, we can observe that clients show their high expectation on some gaming motor and also those social media scenarios. This is the new demand from the market. We also observed that many Android top clients were actively cooperate with us, and we have the high cost-effective solution and products on this motor. It helps those young customers to experience the new motor. This will create the macro trend, which is based on the eco-system and also the long-term Android deployment. Q1 is just a start, and we think there will be a continued Q-on-Q growth. Based on our customers' demand and also the market, we are still in the preliminary stage. For the second question on modules, we also talked before that the modules production and the layout are in the steady expansion. At current, we have 15 production lines. Every month it's about 7- 8 million per month for the production capacity. Based on the market demand, we may expand the business production line to 13 lines. Of course, we have held a prudent attitude. Modules gross margin for this quarter is very obviously increased. Next quarter is negative, and this quarter is positive. With the scale effect, we are actively and have the confidence for its gross margin of the whole year. I also want to ask about the optics. The inventory of the optics. In the past, we have the increase of the production output. Whether this is in line with your previous plan and strategy? In the Q2 and Q3, this inventory will reach a normalized level. This is for optics. In terms of inventory, the production capacity is in growth. The production will be higher than the sales. Our production is in line with the demand of our clients. Based on our overall production, it's about these three months, and it's similar to last year's level. We have the confidence in the future we will actively promote the sales, and also this will match our production output. Due to the time constraints, we will have the last question. The question is from Citi Research. Thank you, Mr. Pan and Mr. Guo. I have two questions. The first question, you talked about this electronics. From next three to five years, what's the opportunities? What are the opportunities you can share to the long-term investors? Second question is the high-end smartphones. You mentioned on those game smartphones, there's a big upgrade. In the recent, for example, April and May, what's the sales situation of those smartphones in the market? We also heard there's weakening sales in the market in the recent months. What's your opinion on this regard? As for your first question. For the new deployment and the plan on the new business segment, the automobile and electronics, we see some obvious trends. The first is the NEVs. This will bring big changes to the business. Second is on the passenger cars. The passenger cars are in the upgrading and transitional period. Those are the driving forces for us. We are actively to discuss with those automobile companies and also their clients. When we have a detailed progress, I will disclose the information to you. As far as I know, our technology is from the micro technology, we have a lot of opportunities for us to break through. We can create a differentiation based on those points, it's easier for us to be creative. For the game smartphones and the new high-end smartphones, the precision has higher requirements for us. In order to support them, we will focus on the scenario application. We will focus on the scenario support, the scenario support not only limited on the smartphone and data check pad on notebooks or the other game equipment. Those are the new business areas we can tap in. Would you please repeat the last part of your question? The sales? You're asking the sales volume. Some high-end smartphones. Whether you see any recognition and acceptance of those high-end smartphones, any figures on the terminal sales. For our shipment volume, is maintained at a high growth. Kelvin also mentioned that our company is focusing on the client's demand, and they offer our differentiated and unique solutions. Actually, we are leading the transition of the whole industry. It's not only in the Android haptic motor. In different segments, we wanted to offer our customized and differentiated solutions. Therefore, to increase the value of the whole industry, and based on this, we are willing to gain more market share and also increase our profitability. Yes. This is also related to the market situation, and it's not convenient for us to comment on others. For the Chinese market, the mid and high-end market, especially on the customer experience and acoustic and optics and haptics-driven market, generally speaking, I think it meets the expectation, and in some public information, you can also see this. The shortage of chips and the concern of the market cannot be the overlap of concern. It is just a kind reminder, and the statistics also support our opinion. If the functions cannot improve in customer experience, we make some adjustments on the sales. It's also very normal. I think the 5G smartphone, it's very active in the market. Whether this will boost the sales, it's hard to say. That's why we emphasize the experience and acoustic drives and OS, optics drives, and also other customer experience. It's similar in the acoustics. In terms of the software and the hardware, we have reached the preliminary stage. The Android haptics motor will have great growth. We think this will be a very helpful factor in its sales. With the development of haptics, it will boost the sales and increase the customer experience. Our efforts is very confirmed according to the results of our quarter results. Any supplement from management? No further comments. Operator, it can conclude the session.