Good afternoon, investors and media friends. Welcome to Lite-On Technology 2022 Q3 Earnings Conference. Due to the pandemic, this meeting is still held online. Today's agenda has three parts. First, CFO Patricia Chou will explain 2022 Q3's financial report and Q4's outlook. Second, President Anson Chiu will explain the operation planning and growth strategies. Next, we will have a Q&A session. We will prioritize those who have provided their organization and name for questions. To ask questions, please click raise hand on top of the screen, and our staff will follow the order, turn on your mic, and invite you to speak. Before speaking, please make sure that your mic is on and state your organization and name. Please limit each chance to two questions to ensure others' right to ask questions. Thank you. Good afternoon, investors and media friends. Today is Q3 earnings conference. We have a new presentation design to explain the operating results of Q3. We hope to show that Lite-On has completed many operational adjustments and transformations this year, presenting a brand new corporate image. Next, I will explain our Q3 2022 results and financial performance, as well as our Q4 outlook. For first-time attendees of this conference, this page gives you an overview of the three major business segments, including Optoelectronics, Cloud & AIoT, and ITC segments. Lite-On's Q3 net sales was TWD 46.2 billion, gross profit TWD 9 billion. The rate was 19.5%. Operating expenses TWD 4.6 billion. The rate was 10%. Operating profit TWD 4.39 billion. The rate was 9.5%. The net sales were the highest in three years, and gross profit and operating profit were also at record highs. Overall, Q3 net sales went up 10% YoY. Gross profit went up 11% YoY. Operating profit went up 25% YoY. These continue to reflect our quality growth. Net sales growth was driven by growth in cloud computing, power, automotive, electronics and high-end photocouplers, with all three business segments growing in tandem. Gross profit in Q3 benefited from product mix optimization, SP improvement, effective control of raw material prices and sources, and continued optimization of capacity utilization. Gross profit grew by 0.2 percentage points YoY. Growth in operating expenses not only reflects growth of net sales but also R&D increase, which is the gradual expansion of R&D mentioned before. In Q3, R&D accounted for the bulk of operating expenses, accounting for 4.1% of net sales, an annual growth of 22%. The cloud power business accounted for the highest percentage of R&D expenses. Growth in operating profit was mainly due to the improvement in YoY operating profit of all three segments. Cloud & AIoT's operating profit went up by more than 50% YoY, while overall operating efficiency and revenue scale continued to improve. Operating profit went up by 1.1 percentage points YoY. Other income was TWD 950 million, including the unrealized evaluation profit on Viziv. Its impact on the overall profit and loss has been greatly reduced compared with H1. Profit before tax was TWD 5.35 billion. Profit attributable to parent was TWD 4.24 billion. EPS TWD 1.86, an annual growth of about 40% and a record high for a single quarter. Both Q3 gross profit and operating profit were at record highs. Over the past three years, despite lockdowns, supply chain disruptions, and fast changes in the political and economic environments, Lite-On has continued to pursue its planned goals and strategies, actively implementing quality growth and gradually achieving the milestones of profitability, improvement, and digital transformation of operations. This year's net sales have begun to show quarterly growth momentum and are expected to continue to increase under the driving force of major new businesses. In the first three quarters, Lite-On's net sales scale continued to grow despite lockdowns and unstable supply chains, mainly thanks to the growth in the share of high-end products shipped by the three major segments. Net sales was TWD 130.4 billion. Gross profit TWD 24.8 billion with a GP rate of 19.1%. Operating expense TWD 13.1 billion. The rate was 10%. Operating profit TWD 11.7 billion. The rate was 9%. Compared to last year, net sales went up 8%, gross profit went up 9%, and operating profit went up 25% YoY. Gross profit and operating profit both reached record highs for the same period. This reflects our rapid, flexible, resilient, and quality growth. Operating expenses were all well controlled, down by 2% YoY. R&D accounted for 4% of net sales, up nearly 20% YoY. The big gap in other income expense compared to last year is due in large part to fluctuations in the recognition of profit and loss on the evaluation of Viziv in two years. We expect that the impact of this non-strategic shareholding evaluation fluctuation on the company's profit and loss has been gradually reduced. This has resulted in lower EPS in the first three quarters YoY. Profit attributable to parent was TWD 10.3 billion, and EPS was TWD 4.51. Optoelectronics and Cloud & AIoT together account for more than half of net sales so far this year. Lite-On's business model is actively shifting towards a 4-3-3 business mix, i.e., 40% of sales from ITC, 30% from Optoelectronics, and 30% from Cloud & AIoT. The Cloud & AIoT segment now accounts for 34% of net sales, and is ahead of its target of 30%. ITC has increased its share of high-end products, and continue to grow net sales and profit this quarter. In Q3, all three segments reported YoY net sales growth. Cloud & AIoT had the highest annual growth rate of 17%. The high-end gross profit for Optoelectronics exceeded 30%. For Cloud & AIoT, it exceeded 25%. For ITC, it reached over 18%. As you can see on the left, Cloud & AIoT and Optoelectronics have shown a long-term growth trend in net sales since Q1, 2020, excluding the impact of seasonal fluctuations. The CAGR of the two segments combined is 28%. Core applications in Optoelectronics, such as photocouplers, grew 11% YoY. Automotive electronics grew 58% YoY. Cloud & AIoT's IoT products grew 11% YoY, while cloud computing power grew 41% YoY. With rapid growth of Cloud & AIoT, Q3 net sales grew 17% YoY, and operating profit grew more than 50% YoY. This is mainly due to the contribution from cloud computing power systems. Their fast growth this year demonstrate the hard power accumulated from R&D of high-end technologies over the years, allowing Lite-On to develop competitive new products, grasp time to market efficiency, and establish a relatively high technological advantage. In addition, as our supply chain management has become a competitive edge, we can gain a dominant market share in new models and bids from key customers worldwide. Moving forward, in addition to shipment of new generation PSU plus BBU, we are seeing increasing demand for high-spec PSU from data center and enterprise server customers. Lite-On's cloud computing power supply is expected to continue to grow significantly. The high growth of automotive electronics is not only due to the obvious demand in the EV and automotive electronics market, but also due to the smooth shipment of Lite-On's high-end products, such as DC charging piles, Level 2 high-end lighting with heat dissipation module, and camera module for ADAS, all of which have performed well. In view of the rapid growth of the cloud computing power and automotive electronics businesses, we are accelerating our expansion in North America. As for the balance sheet, we maintain a highly liquid, solid, and lean operation with a strong net cash position. We kept a tight rein on inventory. Inventory days decreased by four days QoQ, and cash flow days improved by 11 days, reflecting improved working capital management. Net cash was TWD 36.6 billion, an increase of about TWD 4.5 billion QoQ due to proactive working capital management and net free cash inflows from operations. EBITDA increased by 13% YoY from 30-34. To sum up Q3, net sales were TWD 46.2 billion, up 10% YoY, a single quarter high in three years, benefiting from growth in cloud computing, automotive electronics, and high-end photocouplers. GP and OP for Q3 were both record highs, and EPS was TWD 1.86, an annual growth of 40%, also a single quarter high. The increased profitability came from product mix optimization, aggressive growth in production value and market share, and improved operation through digital transformation. In the first three quarters, despite lockdowns and supply chain instability, net sales reached TWD 130.4 billion, an annual increase of 8% and a three-year high YoY. GP and OP went up 9% and 25% respectively, continuing to show excellent growth. For the first three quarters, GPM 19.1%, OPM 9%, + 1.2 percentage points YoY. EPS reached TWD 4.51. R&D expenses accounted for 4% of net sales, an increase of nearly 20% YoY, mainly in three growth areas for developing software, firmware, and system integration solutions. For Q4 outlook, we expect that revenue and profit will continue to improve as core businesses keep growing. Growth will be driven by high-end cloud computing power, 5G, AIoT, automotive electronics, and photocouplers for green energy and industrial control applications. Despite market uncertainty, the ITC segment continues to grow its high-end product shipments by optimizing its product mix. These are the financial highlights of the first three quarters and the outlook for Q4. Next, I will leave it to President Anson Chiu to explain Lite-On's participation in OCP, as well as the company's business outlook and growth strategies. Thank you. Thank you, Patricia Chou. Dear investors and friends from the media, good afternoon. Lite-On's net sales increased 10% YoY in Q3, with net sales and gross profit growing 10% and 25% YoY respectively, and an EPS of 1.86, increasing 40% YoY, fully reflecting the company's emphasis on quality growth. As we know, this year's growth in ITC products has been slowed by inflation, geopolitics, and the slowdown of the pandemic. However, Lite-On still maintained its growth trend, mainly due to cloud computing power, automotive electronics, and photocouplers for Optoelectronics semiconductors, benefiting from the strong demand for high-end applications. In addition, with the stabilization of raw material supply, Lite-On has the opportunity to demonstrate higher growth than the market in cloud computing power solutions and automotive electronics. For cloud computing power, regarding Lite-On's new integrated PSU plus BBU power management system, highly customized new products have begun to be delivered. Our global server power market share is now over 30%, benefiting from new customers and increasing new orders. The market will continue to move towards high wattage, high efficiency, and high density specifications, and Lite-On's fast development and stable supply are highly recognized by customers. It is expected that new customers will join us in cloud computing power this year and next year, and the growth rate can reach over 20% in the next two years. Recently, our new products were exhibited at the Open Compute Project in San Jose, United States. We showcase our Open Rack specification solution and the new generation of liquid-cooled power supply system proposed by Lite-On. Let me explain to you a little bit about Open Compute. Basically, we have two highlights. The first one is that it is the next generation Open Rack third generation system architecture. This architecture integrates our existing rack, and also PSU plus BBU and power shelf. With a high integration of all of these, we propose to the market such an integrated system solution. Our second highlight is that we believe that in the future, in cloud computing moves towards high efficiency, such as AI computing, machine learning, et cetera. The demand will continue to move towards high wattage in the future. Heat dissipation is a thorny issue, so we expect to see that in such a high heat environment, the traditional methods can no longer satisfy the future heat dissipation needs. As you know, in the system, in addition to CPU and GPU, power supply is also a major heat generation point. From this perspective, we cooperate with heat dissipation related partners in order to develop a new generation liquid-cooled power supply system. This is something that we propose as our solutions in the exhibition. That's about cloud computing. As for automotive electronics, in addition to our existing L2 AC car charger products, we continue to add new American car brand certifications through new product design and development. We will also cooperate with charging station operators in Europe and the United States to launch 30 kW DC charging piles in Q4 to enter the high-end commercial fleet market. To meet the future business opportunities in cloud computing and automotive electronics, we have leased a factory in Dallas, and initially, we expect to invest $2 billion to set up a new manufacturing base. Our goal is to start production in Q2 next year to exceed ten billion in revenue by 2025. As for Q4's outlook, driven by the rapid growth of cloud power solutions, 30% YoY, 5G small base stations and AIoT, automotive electronics, which is about 20% YoY, and Optoelectronics semiconductors, photocouplers, which is more than 10% YoY, Q4 operations are expected to move towards continuous revenue and profit growth. The company will continue to pursue the 4/3/3 growth strategy and move forward to quality growth. Thank you again for your participation today, and we wish you all good health and every success. Thank you for your explanation. Now is the Q&A session. We will open the floor. To ask questions, please click raise hand on top of the screen, and our staff will follow the order. Invite you to turn on your mic and to speak. Before speaking, please make sure that your mic is on and state your organization and name. Please limit each chance to two questions only to ensure others' right to ask questions. Thank you. Now we open the floor. The first one is Wu Shao-Wen from Commercial Times. Shao-Wen, please turn on your microphone and ask your questions. Is it clear? Hello. Very clear. Please go ahead. Well, Mr. President talked about Dallas. I didn't quite understand, so I want to ask you lease a factory aiming for mass production in Q2 next year? So by 2025, the output will achieve TWD 10 billion revenue or something like something else? Okay, let me answer your question directly. Shao-Wen, because of time pressure, we first leased a factory in Dallas. There are currently two product lines. The first one is cloud power and PSU and BBU. This is the first, and the second is Level 2 AC charger. These two product lines, according to our current plan, by 2025, the production output in the U.S. will have a chance to exceed TWD 10 billion. In the long term, where will we invest to establish our own factory and manufacturing center? Well, that's for longer term. It is still being planned now, so this is to briefly answer your question. Okay, here's my second question. You just talked about cloud power in Q4. The annual growth will be 30%, which will be roughly the same as Q1 to Q3. Does it mean that Q4's cloud power revenue will be better than in Q3? Yes. So Q4's total revenue will be better than in Q3? Yes, according to our current estimation. Thank you. You're welcome. The next one is Hank from China Life Insurance. Please turn on your microphone and ask your questions. Thank you, management team for your time. I want to ask you briefly, Q3's gross profit declined QoQ slightly. What would be the reasons? And also the OPM from Optoelectronics and ITC also went down. The revenue went up, so is it because of expenses or something else? Thank you, Hank, for your questions. There are two questions. The first one is that in Q3, the gross profit rate went down slightly from Q2. What would be the reasons? Second, in terms of OPM in Optoelectronics, it went down slightly from the previous quarter. What would be the reasons? Hank, let me answer your questions. You can see that in our three business segments, the distribution of revenue, in Q3, Optoelectronics accounted for lower, the percentage went down, and it's clear that, in terms of consumer applications, it suffered more from unfavorable macroeconomic factors. That is reflected in especially visible light product shipment. This, in turn, is reflected in our overall gross profit. I think this answers both of your questions. The shipment was impacted, so the operating profit and its margin were also affected. Thank you. Understood. I also want to ask you. I was also asking about ITC. The revenue was higher in Q3 than in Q2, but the OPM also went down slightly. Is it because you start to lower prices or is it because of product mix changes? Okay, the second question is about the ITC segment. The OPM in Q3 compared to Q2 went down slightly. Is it because of market prices or product mix changes? Well, Hank, I think it's mainly due to product mix changes. This year so far, we haven't encountered pressure from clients in terms of lowering prices. Of course, the market situation in ITC is not good in terms of volume. The volume has been going down. As we said a while ago, in terms of power, we move towards higher end, higher wattage and workstations. Through such product mix improvements, our ASP continues to improve despite the volume going down. This is why we don't see a going down of the revenue. The overall profit, the CFO has just said Optoelectronics suffers from the impact of visible light products, and we know that Optoelectronics has a higher GP, and this is why in Q3, GP was impacted this way. Understood. Thank you. Thank you. The next one comes from Kinvest Capital, Zi-Fan. Zi-Fan, please ask your questions. Okay. My first question is this, You now have two BBU suppliers. How do you select BBU suppliers? And how much does BBU account for in your revenue? And what will be the price difference between the new and the old platforms? This is the first question. The second question is this. In terms of Optoelectronics and Cloud AIoT, could you tell us the percentages in Q3 of photocouplers, automotive, and Cloud AIoT, and also their outlook for next year and growth factors? Thank you, Zi-Fan, for your questions. There are a couple of questions. First of all, our new generation BBU, the new generation BBU suppliers, how do we select our suppliers? And what is the current selection situation? And BBU accounts for how much of our revenue? This is the first question. She also mentioned our new cloud computing platform and the old platform. What is the price difference between them? Okay, let me first answer the question on BBU suppliers. How do we select our suppliers? Well, we mainly need to consider the cooperation relationship between both sides. We have selected two Taiwanese suppliers so far. As for BBU's revenue percentage, the shipment is little, so it's still single-digit%. We expect to see that next year. Well, BBU's shipment takes time. We believe that the revenue, once the factory is set up and ready, the revenue scale will start to gradually increase in Q2 next year. The third question is about automotive, well, the percentages. Well, such percentages change from quarter to quarter on the market. I can tell you that AIoT and also automotive. AIoT accounts for a bigger share than automotive. Automotive now accounts for roughly 6%-8% in the entire company. Next year, through its growth, we will have a chance to see more than 10% for automotive. Sorry, I think one of my questions was not answered. I was asking about the price difference between the old and the new platforms. Okay. There won't be much difference because we only make minor adjustments in the power design. The BBU itself is not that different. So from SB's perspective, the old and the new platforms are roughly similar. There's a question from InfoTimes. Today, we saw on the slides that automotive and cloud had 30%-40% growth. Next year, what will be the growth for automotive and cloud? Well, for cloud, as I said at the very beginning, over the next two years, we aim to maintain 20% of growth. That's something for sure. As for automotive, there are two parts. If we look at the current car charger products, this year has a three-time growth compared to the same period last year, and next year, it will be at least doubling. As for camera modules and car lighting, I think the growth will be double-digit, roughly. Okay. The second question from InfoTimes is this. The first question is about automotive and cloud, and the second question is about the overall outlook for the company next year. Well, I think for this question, nobody would have an answer at this moment because according to our current thinking, most people are relatively conservative about the economic outlook next year. Regardless of the economic outlook for next year, we will continue to focus on the areas that will continue to grow on the market. For example, just as I said, cloud is a growing market, automotive electronics is also one, high-end photocouplers is yet another one, industrial control, AIoT, 5G, etc. This is why we say that our growth has been focused on these areas which can better resist macroeconomic volatilities. I am still optimistic about the overall revenue next year, which will still be better than this year. The next question comes from Shao-Wen Wang of Commercial Times. Shao-Wen Wang, you can directly pose your questions. Hello. I remember that in the last conference, Mr. President mentioned that the OPM in H2 would be better than in H1. Do you still maintain this same opinion? Well, if we look at H1 and H2, the OP in H2 is better than in H1. Will Q4 be better than Q3? Well, Q3's revenue will be relatively higher and OPM GP will remain roughly the same. Of course, there are still uncertainties. Basically, we are optimistic that this year. Well, this year is a bit special because we know that in the past, consumer products in Q4 were relatively weaker, but this year we have automotive and cloud added. This year, the situation we are seeing is that in Q4, we will still have a chance to be better than in Q3. The next one is Anne from Nomura. Anne, please raise your questions. Mr. President, Miss Jiebo and Julia, good afternoon. Can you hear me? Yes, please go on. First of all, I just want to confirm what Mr. President said about PSU, the old and the new generations, the design change. The prices are similar. Do you mean to say that, for example, this year's mainstream is 3K to 3.5K, and next year it's, 4K, and the prices are more or less the same? Well, let me organize this question. This question is about the new and the old generations PSU and the price difference between them. Mr. President? Well, I think maybe there was some misunderstanding. 3K watt and 5K watt have different prices. I want to clarify that the entire design change doesn't jump from 3K to 5K watt directly. The wattage usage and also design, content are adjusted only slightly, not significantly. The mainstream now is still 3K watts. From SB's perspective, there isn't that much change. Okay. Sorry, I want to follow up. Do you mean to say that if it's still 3 kilowatt and the difference between the old and the new generations is only design change, so the prices are similar. If we move on to 3.5 and 4 kilowatt, the ASP will go up a lot? Yes, because, by then the ASP will become more expensive with higher wattage. Okay. It's clear now. My second question. We know that PCs, notebooks, and consumer products, the market has been sluggish relatively. In H1, there were some opportunities to reflect the increasing prices of raw materials. Now in H2, the demand has been dropping a lot. Do you worry about some price pressure? Well, I think it's not a question of worry. This is a market mechanism. There are normal adjustments, ups and downs, and prices go up and down depending on supply and demand balance. What we need to do is that when cost goes up, we need to renegotiate with clients because raw materials and components become more expensive, and our clients are also clear about the market situation, so we adapt accordingly. When the market is the other way around, then raw materials become cheaper, and in that case, we are also willing to actively reflect that with our clients. We are long-term partners, so we have built trust with each other. Such price ups and downs are considered a normal mechanism. Understood. Thank you. I will return to my queuing. The next one is Wu Shen-Liang from Hua Nan. Please turn on your microphone and directly ask your questions. Hello, management team. Good afternoon. I have one question. Mr. President, in the video you showed the new generation liquid cooling power supply system. We are very interested in that. Well, this is something that many people have been working on, so I don't know, well, in your company, what is the progress roughly, and who will be your future clients? For example, some cloud white label server companies or who will be your targeted clients? And also, for such a product, how much will it contribute to future reve nue and growth? Okay, let me first organize the questions. Thank you for your questions, Shen-Liang. Today we showed the new gen liquid cool power supply system, the new cloud computing system, and this. What is the progress, and also who will be our targeted clients, and when will they start to contribute to our revenue? These are the three questions. Okay. To answer these questions, we need to return to the beginning. In the past, Lite-On focused more on ODM and OBM businesses. Over the past two years, we have adopted a new strategy, and with a business transformation, we want to go from a component and module provider to a system, subsystem or system solution provider or an optimization provider. With this thinking in mind, when we develop ORv3 power supply system or what you just saw in the video, the new generation liqui d-cooled power supply system, these are all based on this thinking. Our thinking is based on future market needs, and we make design and R&D according to future market needs. It's not something specially tailor-made for specific clients. When we have such a product designed, then we approach actively the clients who in the future, in terms of their product design and applications, may use such a solution. These clients basically are the ones we will have to approach. They could be white label companies, they could be cloud companies, or they could come from other areas as well. Let me give you an example, a simple example. As I mentioned, power supply generates heat, and our thinking is simple. Heat gets generated from power supply, then why don't we do something before heat is generated? Why do we have to wait for heat generation before we start heat dissipation? If before heat generation, we can already do something to dissipate heat, I'm sure that the effects will be better than waiting for heat generation. This is an example to explain to you that all of our future products and solutions aim to solve pain points on the market or on the client side. Only when we launch the product will we start to see revenue gradually. It's not something that can be immediately delivered to clients and create revenue. Such a solution is proposed to clients with such pain points and demand, and then the revenue will gradually come. ORv3 is one example, and also the new gen liquid cooling power supply system is another example. I think only by 2024 will we start to see that they contribute to our revenue. The next one is Hank from China Life Insurance. Hank, please. Thank you for your time. First of all, I want to ask you, in terms of cloud power clients, there are enterprise and hyperscaler clients. Is it true that hyperscaler clients are more willing to use high wattage solutions? Also another question, it seems that not all the FAANG big tech companies have been introduced into this project. In terms of expanding revenue, do you plan to increase the number of hyperscalers year after year, or do you not yet have a timeline? Hank, thank you for your questions. There are two questions. First of all, in terms of cloud power supply clients, there are two categories, data centers and enterprise clients. So both of them, in terms of high wattage solutions, will they be more willing to adopt such solutions in the future? Second, you talked about these hyperscalers. The number of such clients, what is our thinking about that? Okay. If we look at the end market needs, data centers need more wattage than hyperscalers. This trend hasn't changed so far, and I'm sure that in the future it will continue to be the case, or the demand can be even higher. For example, our power shelf has gone from 15 - 27.5 kW. This is why we have been triggered to develop heat dissipation solutions. That's why. As for increasing the number of hyperscalers year after year. Well, in addition to Super 4 clients, there are some other clients as well. They, for example, this is something that is very popular right now, autonomous driving. These car OEM companies also want to establish their own cloud management systems, so they need such solutions and power. This is an example to tell you that our clients are not limited to Super 4. Our clients in the future, the growth will also come from other clients joining us. Understood. Thank you. It's very clear. I want to ask you another question. Now you have put in the new capacity from the U.S., so do you have a break-even estimation for the revenue? Of course, that's only an estimation, but I want to understand, in order to build the capacity in Dallas in this leased factory, what is the scale for a break-even? Okay. Hank's next question is about that in North America we have new capacity and what is the plan for break-even? I think initially because the scale is smaller, so at the beginning, because of smaller scale, there will be some cost pressure. I think our products are transferred from Taipei, so as long as a certain economic scale can be achieved, we will be able to break even soon. Right now, the point is to build up this factory first. I think this is more important than whether or not we are making profit, because of course, manufacturing cost depends on capacity utilization and also is related to operation efficiency. Initially, within the first two years, we don't focus on profitability. We want this factory to first achieve a certain manufacturing level in the U.S. With that, we can then consider profitability. I think this will be better. Understood. Thank you. Thanks. The next one will be Aaron from Decheng Capital. Hello. Thank you. Can you hear me? Yes, very clearly. I want to ask your management team, every quarter, you disclose the cloud platform growth, and this growth is significantly higher than the market situation. I want to know, with such a high growth, and you will maintain this growth in Q4. From which region do you mainly have your growth momentum? Okay. Aaron's first question is about cloud power computing segment. Well, the growth is significantly better than the market situation. The growth momentum comes mainly from which clients? Well, in terms of cloud, we still focus on the American market. That's our focus. As for why we have been able to grow this fast, well, because initially, our market share was only around 10%, and over the past two years, we have introduced new products and technologies to increase our market share. We said that this year we will have a chance to achieve 30% of market share, and next year we will have a chance to achieve 40%. This is one very imp ortant reason. Okay. Another question. With such a fast growth in market share, from which competitors do you have overlap? Your second question, Aaron. With such a rapid increase of market share, by overlap, do you mean competitors or clients? Competitors. So which are the overlapping competitors? Well, I'm sure that when you plan and when you quote, you face competitors' competition. So when your share grows this fast, I want to know from which competitors have you gained your share and competitive advantages. Well, if you don't know yet about our competitors, we have two major competitors. In this area, their market shares have changed, especially one foreign competitor. It's inconvenient for me to point out the name directly, but this year, our market share mainly comes from this foreign competitor. I was asked a similar question last time. Why are we able to increase our market share this fast? Well, another reason is because over the past two years, supply chains have been a determining factor. You know that we are the second largest power supply supplier, and we have a sufficient supply chain scale and influence. Despite semiconductor price increases and raw materials challenges, our performance is still better than our competitors' performance. This is also why our clients have been giving us many new projects over the past year. We were ready, so we were able to seize such opportunities, and our supply chains can really satisfy our clients' needs. This is why we have been a ble to grow this fast. Got it. Thank you. You're welcome. Thanks. The next one is Anne from Nomura. Anne, please. Anne, can you hear me? Yes. Yes. My first question is about car chargers. The president mentioned that there are some high-wattage fast chargers. I want to ask you about the percentage of DC fast chargers next year and in two years' time. Do you have an estimation of the percentage, as opposed to the entire shipment? Thank you for the question, Anne. Your first question is about EV chargers. We have been putting forward high-wattage products. In terms of Level 3 fast chargers, what is the estimated percentage for next year and in two years' time? Well, over the next two years, we will still focus on Level 2 as our major product. Why do we say that? Well, Level 2's volume, compared to DC, is still larger, so this is something that we value. In terms of the AC to DC ratio in the future, I think according to the current plan, in the future, DC will account for 1/4, while AC will account for 3/4. Yeah, this will be the ratio. Oh, got it. I want to ask you by future, how many years? Well, in 2 - 3 years' time. By 2025, this will be the situation. Understood. My second question, could you update us on your CapEx planning? Because you mentioned some overseas factories. Okay. Your second question is about CapEx. You mean next year? Yes, of course. You can also talk about this year. Okay. In terms of CapEx, at the beginning of this year, we mentioned that it would be TWD 5 billion-TWD 6 billion, and the current implementation corresponds to our expectations. Well, by that I mean the CapEx that has been initiated. That corresponds to our plans. For next year, we are still budgeting for next year. Maybe, we will have to wait until the next conference to give you a clearer answer. Okay. You're still budgeting, right? Do you already have a direction? Will it go up, remain, or go down? I think it will go up, right? My opinion is this. In CapEx, there are two parts. The first part is overseas capacity expansion. The second is in-factory intelligent manufacturing upgrade. This year, we have overseas factories such as Kaohsiung and Vietnam. They have been completed. We wanted to do Thailand, but because of visible light market changes, it is still pending. It's a very small share. Most of our CapEx is put in intelligent manufacturing. Next year, if we continue to move towards Manufacturing 4.0, I think that will follow our current plan. As for overseas factories next year, in addition to Kaohsiung and Vietnam, there will be America and Mexico, as we just said. I think roughly it will be the same as this year or slightly more than this year's CapEx. Thank you. Thank you. We have time for one more question. Shin-So Cho from DigiTimes, please ask your questions. Can you hear me? Yes, very clearly. I want to ask the president to analyze further the development, progress of car lighting. Is it put in the Kaohsiung factory? You mentioned some in-factory manufacturing upgrade, so what is the current situation about that? Shinso, thank you for your question. Shinso mentioned our, car lighting. Is it only in the Kaohsiung factory or where is the production? In which factories? For car lighting, we don't mainly put it in Kaohsiung. We have two factories for that production, in Mexico and in Guangzhou. We will expand on the production in Mexico. As for Kaohsiung, I think, the percentage will be reduced gradually. Could you talk a little bit more in terms of car lighting? What is the capacity development direction? Well, Shinso, your voice is broken and unclear. Is your question about automotive progress and direction? Car lighting, automotive lighting, capacity planning and progress. Could you explain that? Okay, so it's about car lighting capacity planning. We said that for car lighting, according to the current estimation, the annual growth is double-digit. For the Chinese market, we will put it in Guangzhou, and for the overseas market, we will put it in Mexico, basically. In terms of capacity expansion, we will have a chance to expand on the capacity in both of these factories. A follow-up question. You mentioned that your strategy is the 4-3-3. It seems that in terms of Optoelectronics, the percentage is lower than 30%. It's even lower than 20%. The other two segments are different because they have exceeded the 4-3-3 goal. For Optoelectronics, do you have other plans to be able to catch up with the 4-3- 3 goal? Well, for Optoelectronics, in addition to high-end couplers, there is also automotive electronics. Whether it's this year or next year, as the CFO just said, there will be high growth. We maintain our 4 -3-3 idea. Let me add one point. 4 -3-3 is a more midterm goal. Of course, all the products have short-term volatilities, but we expect to see that in the long run, high-end applications have great potential. Thank you for your participation. If you don't have any further questions, we can conclude our conference today. Thank you for your participation. All the content and materials will be published onto our official website. Thank you, everyone. Thank you so much.