[Foreign language] Welcome to our Q1 investor conference again. Before our IR Rodney Liu is going to report the financial numbers to you, I would like to update some news. Yesterday, we just had our board meeting. Because a few numbers of our Independent Directors are going to retire this year, so we are proposing three new Independent Directors. For the new candidates for our Independent Directors, we feel very fortunate and lucky to have Mr. Wei-Shei Lin, who has a very long history in the telecom industry, and also, he is a very experienced and senior management in the telecom industry and company. Also, we feel lucky to have Mr. Jack Huang, who is a very senior lawyer. Also, the partner of the law firm. He has many experiences in the M&A, and we believe that with his joining, that we can benefit from his experience, especially in the M&A side. Finally, we also have a new female candidate for our Independent Directors. An Independent Director, who is Ms. Rose Tsou. She is Ms. Rose Tsou, and she is very experienced expert in the internet industry. That is also the first time in history that we are having a new female Independent Director. We feel very happy to have these new three directors. Hopefully, we can have the support from our shareholders in the shareholder meeting. [Foreign language] In terms of the financial numbers of Q1, thanks to the overall healthy demand, Q1 revenue was slightly above seasonal, up 13% year-on-year and only down 8% quarter-on-quarter. Q1 revenue was TWD 72.5 billion. With the little higher overhead costs for Q1, gross profit was down 12% quarter-on-quarter, but up 47% year-on-year. Gross margin in Q1 slightly contracted to 29.8% from 31.1% in Q4 but substantially increased from 26.5% a year ago. R&D spends increased by 17% compared to a year ago because of the higher investments into the growing areas such as our EV and IA businesses. With a more favorable scale, the R&D spends as a percentage of sales dropped to 8.9% in Q1 from 9.9% a year ago, and only slightly increased 0.2 percentage point from 8.7% in Q4. Likewise, the SGA expense as a percentage of sales also slightly increased to 10.5% in Q1 from 10.0% in Q4 because of the seasonality. It dropped from 13.0% a year ago, thanks to the better scale. As a result, the OPEX ratio shrank to 19.5% in Q1 versus 22.9% in the Q1 of 2020 and only increased moderately versus 18.7% in the fourth quarter of last year. With better GP margin and lower OPEX ratio, operating profit in Q1 improved 279% versus a year ago, while seasonally declined 23% versus the fourth quarter of last year. The OP margin in Q1 was 10.3% versus 3.6% in Q1 of last year, and 12.4% in Q4 of last year. In terms of the performance by segment, year on year, we found the fastest growth in power electronics, and followed by automation, which mainly came from the robust demand in China IA market. While infrastructure had the least growth due to the disadvantaged business environment hurt by COVID-19. Sequentially, we saw a little further acceleration of the IA business as well as our EV solution business, but from seasonal decline for all other businesses. Earning-wise, we had pretty strong year-on-year profit expansions for power electronics and automation, while we also found year-on-year profit improvement in infrastructure from low base. Please note that we have changed the way we present the segment income since Q3 of last year. In the past, the earnings of each segment on this page only stand for P&L of each business unit. Since Q3, all the distributed expenses, such as the corporate expenses, have been allocated into each segment. The non-operating profit was around TWD 1.3 billion in Q1, which was slightly better than usual. In Q1, we had TWD 8.8 billion profit before tax, up 211% year-on-year and down 11% quarter-on-quarter. EBITDA in Q1 was TWD 13.1 billion. Q1 tax expense was about TWD 1.77 billion, representing a stable 20% effective tax rate. The net profit after tax in Q1 was TWD 6.58 billion, up 218% year-on-year and down 11% quarter-on-quarter. The EPS in Q1 was TWD 2.53. [Foreign language] Okay, the first question is, what is the approximate impact of the materials and components price increase on the company's GP margin in Q1? Can this be passed on to the customers? Will this get worse in Q2? [Foreign language] I think in general; the impact is limited because we always have a very long-term business and the contracts with our customers, so we have already prepared for the orders, in terms of the materials and components. Of course, for some of the urgent orders, we still need to prepare extra components and materials for those products. The cost might be a little bit higher, but I think that should be okay. The impact is limited at present. [Foreign language] Can you share the outlook for each product line in the second quarter and the second half? [Foreign language] I think if there are no surprises in the second quarter, all departments will see seasonal growth. The growth rate from season to season seems to be fairly even, mainly benefiting from the more working days in Q2. We shall continue to see the fast year-on-year growth of our EV business. There should be some growth for other businesses. Besides our EV solution business, we also see some further acceleration in our industrial automation business, as well as a little more acceleration in our telecom power business as well. [Foreign language] How much does the copper price account for the cost of goods sold? Can the rise in copper prices be completely passed on? Is there any way to hedge? [Foreign language] We don't use raw material copper very much. We only use copper wires, while the price of copper wires does not fluctuate as much as copper raw materials. Currently, this part has little impact on our financials. [Foreign language] Okay, can expenses still be effectively controlled this year? What is the target of OPEX and sales ratio? OPEX over sales ratio. [Foreign language] If we can see the growth acceleration for this year, the operating expense ratio should have a chance to shrink a little bit or maintain at the current level. As mentioned before, we will still actively make the investments that should be made, especially in R&D of the new products and new technologies. [Foreign language] Is there still room for improvement in DET's GP margin and OP margin? [Foreign language] It depends on their scale, and the product mix. Because Delta Thailand is still a listed company, we will not speak for them here. [Foreign language] The next question is, can you talk about the demand status and outlook for laptops and servers? Is the shipment affected by the shortage of components and the visibility for your orders? [Foreign language] The demand for laptops and servers still seems to be quite strong in the short run. Although the shortage of parts and components is heard from time to time. This is mainly in downstream assemblers, which is an indirect impact for us and should be a short-term phenomenon. However, the visibility of this business is low, and it is difficult for us to make any forecasts. [Foreign language] Does the outbreak of COVID-19 in India affect the company's investment plan in India? How much capacity do we currently have in India? How much the operation of the factory affected by this? [Foreign language] Yeah, I think the current situation in India is indeed worrying, and it's quite serious. Now, we also have some confirmed cases in the local companies. The only thing we can do is we will try to do our best to help and fight the pandemic through Delta Thailand. However, at this stage, India accounts for a very low part of our overall operations, so the impact is still limited. [Foreign language] Do you have any target for industrial automation this year? Inovance is quite optimistic about their growth. Is this also the case for you? Has the competition from Chinese companies intensified? [Foreign language] The industrial automation market is very large. We have this internal goal of double-digit growth every year. The Chinese market was already very strong last year, and the base was relatively high, but we still maintain a pretty nice growth so far. In terms of the competition, I think the competition is everywhere. The competitors are not only in China but also from other areas, from other regions. The only thing we can do is we need to equip ourselves with better technologies and better services to our customers. [Foreign language] Can you tell us more about the benefits that our own factories' automation? How much the factory automation has brought to the company's GP margin in the past few years? [Foreign language] I think we continue to strengthen our internal smart manufacturing. That has seen some cost effectiveness in the past two or 3 years. How much it can be depends on the status of each unit and the changes in the production line. [Foreign language] The market has been relatively sluggish in the past few years. Is this year more optimistic? Does 5G deployment in various countries see any acceleration? [Foreign language] We have seen some acceleration in telecom power since the fourth quarter of last year, mainly because of the improvement in the order situation in the United States as well as the deployment of 5G. [Foreign language] Currently, the market is worrying about the construction slowdown of data center. What do you think about this? [Foreign language] I think, of course, in the short term, the demand for infrastructure or the construction plan for infrastructure or IT equipments will, of course, change or fluctuate and see ups and downs in the short run. In the long run, driven by the growth of artificial intelligence applications, I believe there is still a lot of room for growth. [Foreign language] The EV business continued to grow in the first quarter. Does it help the loss situation? What percentage of revenue is expected to account for this year and next year? [Foreign language] Our EV business accounted for about 5% of total sales in the first quarter. It seems that it will continue to rise in the short term, but the precise ratio still depends on the status of other businesses. However, the loss situation has not changed much from last year, because the main reason is that despite the substantial growth in the revenues, our investment has also accelerated. Hopefully that we are able to see the break-even point within one to 2 years. [Foreign language] Do you have any exposure to the China EV market? [Foreign language] Yes, of course, we do have an exposure in the China EV market, but we mainly work with the Western OEM, which are the car makers. We have the joint venture with those Western auto makers in the China market, but we don't really work directly with the Chinese car makers. [Foreign language] Any exposure to the e-bus and e-motorcycle, e-bike, or electric industrial vehicles? [Foreign language] Yes, of course. We have been working on these kinds of electric vehicles, not only on the commercial cars, but also on other kinds of the vehicles. We already have 1% to 2% revenue from these other applications. [Foreign language] What's your capacity expansion plan for passive? How much capacity do you need? [Foreign language] Given the strong demand for passive components and the robust demand in the market, we continue to expand our capacity. Especially, we will have more new capacity in our Wuzhong plant and new Tainan plant. In terms of the CapEx for last year and this year, the board of Cyntec has approved about TWD 1.6 billion and TWD 1.2 billion. Those plans are in the execution. [Foreign language] How do you see the outlook for the second quarter and of course, for the second half of this year? [Foreign language] Currently, we still expect a normal seasonality. Normally, we will have maybe double-digit sequential growth in the second quarter, and then we might have maybe a high single-digit growth in the third quarter, and it's still too early to say for the fourth quarter. [Foreign language] More people are taking the vaccines in Taiwan. People are allowed and able to travel again. Will we see a surge in your expenses again? [Foreign language] I think it's still very far away. Even people are taking the vaccines, it's still quite far away from that, people are allowed to travel around. Even that, people are allowed to travel around, I don't think that we will have many traveling activities all of a sudden. [Foreign language] Apple has announced their strong results just last night, but in terms of the shipment in Q2, they remained relatively conservative because of the shortage in components. Do you see any impact on this? What is the reason for the strong and fast growth for Cyntec, given the slow demand for smartphones? [Foreign language] I think currently, for the second quarter, we remain cautiously optimistic. We actually have very little control of the supply chain. In terms of the customer's needs, we will try to fulfill. I think there are two main reasons for the fast growth for our passive components. One is the higher penetration rate in 5G smartphones. Another one is we started to see some contribution from the auto applications. [Foreign language] Can you talk about your expectation for your EV solution business as well as your EV charger business? [Foreign language] For the first quarter of this year, our EV solution business grew slightly more than 100%. For our external EV chargers, we had a 15% growth. Considering the comparison based, I think for the second half, we might see a little bit slowdown in terms of the growth rate in the onboard business. For the external chargers, I think it will accelerate. [Foreign language] Okay. Can you please talk about the current situation of Delta Thailand, and will the situation in India affect Delta Thailand's operations? [Foreign language] I think I have answered similar questions before. Delta Thailand is still a publicly listed company; we are not able to speak for them. [Foreign language] Do you worry about the double bookings from customer? How do you deal with this risk? [Foreign language] I think at present, we have not observed a serious problem of double bookings. The inventory at the sales end and in transit is still lower than the normal level. Because the production cycle of our products is quite short, usually only a few days, double booking will not be a big risk for us. However, if there are serious problems in the supply chain resulting in some substantial fluctuations in subsequent orders, it will be reflected in the stability of our businesses. This is very difficult for us to control. [Foreign language] How much opportunity do you think that the new U.S. government's infrastructure plan can bring to you? Will be which areas? [Foreign language] I think the big infrastructure plan of the U.S. government; we will mainly see some opportunities in our infrastructure business. For example, our channel power renewable powers and our energy storage system, as well as our EV infrastructure. [Foreign language] We have seen the slow improvement in your networking business for a while. Will we see any improvement for this year? [Foreign language] I think that we have talked about this before. We actually have carried out some reorganization for our networking business. Hopefully, we can see the results as soon as possible. [Foreign language] How does the sharp increase in logistics affect your cost? [Foreign language] The increase in logistics did cause some additional burden on us in the first quarter, mainly in the transportation of first or semi-finished products between different factories. The proportion is not big. Shipping costs for external shipments are usually absorbed directly by our customers, which has very little impact on us. [Foreign language] We got another question from one investor. Do you have any plans to increase your inventory levels? [Foreign language] I don't think that we have such plans, because currently we have the materials or components. We will try our best to complete the production or manufacturing of the products and ship to the customers. [Foreign language] Do you see that Delta, as a company, that you are able to seize more opportunities from the new U.S. government? [Foreign language] I think for the new U.S. government, they have re-emphasized the importance and the seriousness of climate change. I do think that is a very good thing because in Delta, we have been always very concerned about the risks of climate change. We are really happy to see that this issue is coming back to the table. As a company, we always believe that it's actually easier to save the electricity than to generate electricity. It's very complicated to generate more electricity, it's actually much easier to save the energy. That's also what we have been providing value to our customers through many different business lines. For example, we have this smart building business, we are able to help our customers. We can help our customers to be more energy saving in their buildings. I think that is our pitch for many of our businesses. [Foreign language] Do you have any visibility for your EV business? [Foreign language] Any customer, the names of the customers you can mention for this business? I think as I just said, I think many governments and many countries, they are working on their infrastructure for EV. We shall continue to see the higher penetration rate of EV cars. In terms of the names of customers, we are not able to reveal. [Foreign language] Can you share more about your building automation business? [Foreign language] I think that we actually have different solutions for the building automation market. We do have a pitch to improve or increase the power efficiency for the buildings. We want to help our customers to increase their power efficiency and reduce the energy consumption with our technologies and solutions. Within the building, normally the air conditioning consumes the largest amount of energy. Where we have some solutions to tackle such a problem. [Foreign language] Can you give us some update on your M&A progress? Given the strong performance in the stock markets worldwide, would you worry about the valuation of your potential targets? [Foreign language] I think we have been always keeping an eye on the potential M&A targets. Of course, we wouldn't like to overpay for the companies or the acquisitions because we are not a financial investor. I think if we can see a very evident asymmetry with a company that we might still like to have them with us. Okay. For this question, I would like to have our CIO to answer and give us more colors on this. [Foreign language] I think that since the Q3 of last year, actually the whole M&A market has been growing very, very fast. According to one third-party estimate for this year, that you might have 6% overall growth for M&A market. For next year, you might have about 4% growth for next year. I think that is for the overall market. We only focus on specific company or industry. Of course, even the valuation, the whole market, is getting higher. Now, of course, we still need to adjust our methodologies or our strategies in terms of the M&A. I think that the good news for us is, as we just mentioned at the beginning, that we have a new independent director, the candidate, which is Mr. Jack Huang, who is very senior and experienced lawyer in the M&A area. Hopefully, with his help, that we can have more progress and improvements in the M&A side. [Foreign language] Okay, I think that those are all the questions. [Foreign language] Thank you for joining our virtual conference again. Thank you. We will see you next time. Thank you.