Hello, everyone. Welcome to our Q3 2021 investor conference call. Today we will have our new CFO join us with this call, who is Mr. Po-Wen Yu. Mr. Po-Wen Yu is a very experienced financial officer in the company. Okay. As usual, we will have our IR officer, Rodney, to report to you the Q3 numbers, and then after that, we will have a Q&A session. You may raise your questions through the platform, and they will be reread and answered later in the Q&A session. As usual, all the financial numbers are reported based on IFRS, and the consolidated numbers have been reviewed by CPA. Now we will review the financial numbers of Q3. Q3 revenue was TWD 79.6 billion, up 3% year-over-year and 1% quarter-over-quarter. Limited by the global supply chain disruption, Q3 revenue was slightly below seasonal. Due to a combination of materials and components price increases and a high base from last year, the gross profit was down 5% quarter-on-quarter and 9% year-on-year. Gross margin in Q3 fell to 28.3% from 30.1% in Q2 and 31.9% a year ago. In Q3, the R&D expense was down 1% QoQ and up 4% YoY. Likewise, the SG&A expense was down 1% QoQ and up 2% year-on-year. Therefore, the OPEX in Q3 was down 1% QoQ and up 3% YoY. Ratio-wise, the R&D expense as a percentage of sales slightly dropped to 8.6% in Q3 versus 8.8% in Q2 and 8.6% in a year ago. SG&A as a percentage of sales also slightly contracted to 9.9% in Q3 versus 10.1% in Q2 and 9.9% a year ago. Q3 OPEX shrank to 18.5% versus 18.9% in Q2 and 18.5% a year ago, with an unfavorable product mix, OP margin in Q3 was 9.8% versus 11.1% in Q2 and 13.4% in a year ago. In terms of the performance by segment, limited by the global supply chain disruption, sequentially, we found mild growth for Power Electronics and Infrastructure while seeing a seasonal decline in Automation. Year-over-year, we saw strong improvement for Automation and modest increase in Power Electronics, while Infrastructure had a little negative growth due to the disadvantageous business environment hurt by the pandemic. Earnings-wise, due to the components and materials cost inflation, year-over-year, we saw some profit contractions for each segment and seasonal earnings decline for Automation and Infrastructure, along with a mild increase in Power Electronics. Here again, we provide a breakdown, a sales breakdown by segments for your information. The non-operating profit was around TWD 509 million in Q3. The significant decline in others was mainly related to the loss. Mainly the loss related to the flooding in Thailand. In Q3, we had TWD 83 billion profit before tax, down 27% year-on-year and 18% quarter-on-quarter. EBITDA in Q3 was TWD 12.7 billion, which was down 18% year-on-year and 12% quarter-on-quarter. Q3 tax expense was about TWD 1.7 billion, representing a stable 20% effective tax rate. The net profit after tax in Q3 was about TWD 6.4 billion, down 16% QoQ and 24% YoY. The EPS in Q3 was 2.45. Now we will have a look at the accumulated numbers of year-to-third quarter. The year-to-Q3 revenue was TWD 230.9 billion, up 13% from a year ago. Again, due to the increased prices in a variety of components and materials, GP margin year-to-date Q3 slightly fell to 29.4% versus 30.8% a year ago, with gross profit up 8%. R&D expense as a percentage of sales fell to 8.8% from 9.1% a year ago, while the SG&A as a percentage of sales also dropped to 10.2% from 11%. The OPEX ratio year-to-date Q3 fell to 19% from 20.1% a year ago. Due to the softer GP margin in Q3, the OP margin year-to-date Q3 slightly contracted to 10.4% from 10.6% a year ago, with OP increasing by 11%. Year-over-year, we found a pretty fast revenue growth for Automation and Power Electronics, followed by a mild improvement in Infrastructure. Profit-wise, except a little contraction for Infrastructure, we found significant earnings expansion for Automation and some improvement for Power Electronics. Here again, we provide a sales contribution, I mean, the breakdown by segment for your reference. Year-to-Q3, we had about TWD 3.1 billion non-operating profit. In total, we had TWD 27.2 billion pre-tax income, up 11% from a year ago. Our EBITDA year-to-Q3 was TWD 40.1 billion, which was up 10% from a year ago. The tax expense year-to-Q3 was around TWD 5.5 billion, representing a 20.2% effective rate. The EPS in the first three quarters was TWD 7.91, up 14% year-over-year. Now we will answer the questions from the audience. The first question will be, I mean, in terms of the Q4 of this year, how do you see the component shortage and cost inflation, also the power outage in China and the increasing energy price, how do you see those impact on the short-run operations of Delta? I think those are the headwinds for us in the near term, especially for the cost inflations and the supply chain challenges, because in the short run, I believe the costs will remain at a higher, relatively higher level. The question is we need to discuss and negotiate with our customers about the cost sharing. Okay, I have some points to add on. In terms of the supply chain shortage or the supply shortage, I think that there is not only the direct impact on those. Also, there are some, I mean, supply chain challenge on the customer's side. For example, taking our EV solution business, for example. For example, because those OEM clients, they also suffer from the components and material shortages. That which actually limiting our capability of delivering our products. In that case, we are not able to even though we have a healthy order flows, but we are not able to really deliver the products to our customers. In order to be more conservative, we will write down some of the values of those inventories. That is also some of the reason why we have a higher cost, I mean, in Q3. The second question will be related to the chips shortage, especially for the global OEMs. When do you, I mean, expect to see it easing, and what's the impact to Delta? The supply chain issues indeed have substantial impact on the vehicle assembly. Therefore, some of the customers, they may push out our delivering of our products. It's very hard for us to forecast when the situation can be eased. We can only do our best and do the things we can control. Okay. There are more some of the noises, I mean, in the China market, including the power outage, including the increasing comparison base and the deceleration of the market growth. Can you talk about like do you see any changes in terms of the IA outlook in China? What's your thought about the outlook for next year? I think in terms of the sector nature we are not a really power-heavy industry, so we are relatively better. Also we have prepared the power generators, the diesel power generators in each plants. We should be fine in that sense. Considering there are many headwinds in the China IM market at this moment. We indeed see some deceleration of the whole market growth. We think that the transformation, I mean, the transition of the manufacturers in China, that is, the trend of transition for the manufacturers in China still remains unchanged. There might be some fluctuations in the near term, but for the long-term trend, I think still remains unchanged. The next question will be: How do you see the market demand for notebooks and servers, and how do you see the outlook for the next year? I think in terms of the end customer size, I think, for those people, they may need some new notebooks. They already got one. But in only in the channels, and they are still building some of the inventories. In terms of the order flow, it's still looking healthy. We will still expect third quarter will be the peak season of this year. If some of the orders being pushed to the Q4 because of the supply shortage. Will we see a better performance in the Q4 compared to the Q3? I think in terms of our order flow is still pretty healthy, but it's not only about the, I mean, the supply, the component supply on our side. It's also about the component supplies, material supplies on our customer's side. For example, if they have some components or material shortage, they may still push out some of the deliveries of our products. It's hard for us to forecast the material supplies of our customers. In terms of the cost sharing you just mentioned with your customers, how is the progress? Will we see the cost sharing in the near term? We actually have been continually discussing and negotiating with our customers on the cost sharing. For some of the customers, we have already successfully increased our prices and shared the cost with them. for many others, and we still need to discuss with the customers, and that is actually the nature of doing business because it's easier, much easier to cutting the price, but it takes longer term to increase the prices. How do you see the outlook for your EV chargers? This year, I mean, that last year, this business was impacted by the pandemic. Again, this year, this business was impacted by the shortages, especially on the global OEMs. We had modest growth for this business. As you can see, the EV, I mean, the cars are being more and more popular. The need of charger facility will definitely go up. If you look at the. If you look at the infrastructure expansion plans by the U.S. governments, and they also plan to invest a lot into the EV charging facilities. Even though there might be some headwinds and the macro headwinds, I mean, in the near term, but because we already have a full series of products, and then we also provide our products into the global markets. I believe that this business is going to be one of our growth drivers in the longer run. Can you provide and give us some color on your energy storage system business? We have been already, I mean, working on the energy storage systems for years. We have also installed a couple of systems, all with over 1 million W. This is, I mean, the energy storage system is also part of the infrastructure. It's also subject to the battery cell supply. I think that for the renewable energy, because the supply of renewable energy is unstable, that is the main reason why the companies or we will need this energy storage system. Another reason is because the power companies, the electric company, they charge the users by different level of power usage. For example, in the peak time, they charge you higher rate in terms of the power usage. In the other time, they charge you lower rate in terms of the power usage. That's the reason why we believe the companies they will need energy storage systems. Especially when there are more and more focus on the renewable energy. In that case, the energy storage system will be a very important part of this whole infrastructure. We are pretty positive about long-term outlook for this business. Currently, because there is actually some tightness in terms of the battery supplies. It still takes some time to see the meaningful growth of this business. How do you see the telecom power business, and how is the progress of 5G rollout? I think we have answered this question and explained it for many times. Even though many people have been talking about the 5G rollout, main reason still remains on the lack of mature applications. There are still very little breakthroughs in terms of the applications. In terms of the 5G rollout last year, the whole environment was hurt by the pandemic. This year, I think that we do see some improvement and recovery for the whole telecom power market, especially in the U.S. and Europe. Any improvements in the loss of your EV business? How do you see the outlook for this business in this year and the next year? I think the delivery of our EV solution business has been capped by the supply challenge as well. As I just explained, it's not only on our side, and also because the shortage, I mean, the component shortage on our customer's side. The delivery of our products has been, I mean, delayed and pushed out. When the whole supply chain tightness being eased gradually, I mean, going forward, I believe that we will continue to resume the fast growth of this business. Can you further break down your EV solution business into different product segments? We have in terms of our products for the EV cars that we provide mainly two parts of systems. One is the power management system, and the other one is the traction motors and traction inverter, which is the powertrain system. Besides the onboard solutions, like our power management solutions and the powertrain solutions for the vehicles, we also supply some of the cooling fans and passive components to the auto market as well. In the longer future, when the autonomous driving cars are being more and more popular, we may also integrate some of our network products, because you need the communications on board and off board. That is also the opportunities for us. The next question is related to your Delta Thailand subsidiary. We saw some profit contraction this year for Delta Thailand. When will we see the recovery of your gross GP margin? I think we actually recovered from the flood and the pandemic very quickly in terms of our internal operations. In terms of the GP margins recovery, I think that we still need to wait until the easing of the whole supply chain disruption before we see the significant or meaningful improvement of its GP margin. Can you talk about whether you still have, like, any ongoing projects, M&A projects? The M&A is the very important part of our long-term strategies to support our sustainable growth in the long run. We actually have a dedicated team continuing to concentrate in the projects and looking for the potential targets. Recently, we actually acquired a Canadian-based company called March Networks, which is a very experienced company providing surveillance systems. After integrating its operations with our building automation business, I believe that, I mean, it's definitely going to improve our competitive advantages in our building automation solutions. The next question is, there is a car renting company, they actually ordered 10,000 vehicles from Tesla. Are you going to benefit from this? We actually don't comment on any specific clients. Can you talk about your renewable energy businesses, and who are your competitors in this market? In terms of the renewable energy businesses, we provide the solar inverters and wind powers to the customers. I believe that our products and solutions can contribute a lot to the future smart grid, because I mean, when there are more and more EV cars on the road, it's not going to work, I mean, with the current concentrated electricity networks. I believe that is the future trend. Can you talk about the new factory, the sixth one, the factory in Zhongli? I think that because of the geopolitical, I mean, tensions, some of the products, for example, the surveillance products of our building automation business and the networking products, they will be produced and manufactured in Taiwan rather than produced in China. The next question will be the CapEx for this year. I think that because we are still building the some new factories, the CapEx for this year and the next year will be quite similar. Do you have any plans, I mean, adopting the third generation of semiconductors materials? For the third generation semiconductor materials, I think there are a lot to talk about. We have been watching the trend of the third generation semiconductor materials for years. Applications, I mean, for those third generation semiconductors, they will be used in higher frequency applications and/or the higher output applications. The question still remains in terms of the supply is uncertain, but we'll keep an eye on the development of this. Because of the whole supply chain issue, will you expect to see your inventory go up in the next year? I think it still really depends on the whole supply chain situation. If the revenues can go up or can grow faster, then we will see, in terms of the inventory days, go down in that case. The next question will be related to your passive components business. How do you see this long-term growth? For our passive components, I mean, in the old days, we mainly, I mean, they mainly supplied into the, like the smartphone markets and the mobile devices and notebook market as well. In the future, we will supply more passive components to the auto market. For the auto market, I mean, the nature is the beginning is the most challenging part, I mean, when doing business with the OEMs. I think that we have pretty much got the qualifications from the customers. I believe that our passive components business can ride the market growth. Can you talk more about your opportunity in the smart grid? I'd as I said, I mean, currently the electricity supply is still very central in the electricity companies. In the future, the trend will be changed, and they will need more and more fragmented energy supply and a smart grid in order to fulfill the needs. We don't really have much, I mean, exposure to the heavy applications for now, but we will continue to watch, I mean, keep an eye on this market. Can you talk about your customer base, I mean, for your EV charger business? There in terms of customer base for our EV chargers, there is actually a pretty wide range. For example, the OEM, which are the automakers, can be the customers, and the operators can be the customer as well. The government is also one of the customers, and the end users are also a type of the customers as well. In terms of the customer types, it's actually pretty diversified. The next question is, do you have any cooperation with Hon Hai for their MIH platform? We don't have any. I mean, for the time being, we don't have any cooperation with their MIH system for now. I think we have answered, like, all of the questions we have at hand. If you don't have any other questions, I think we will just call it a day. Hopefully, we can see you in person if, I mean, the pandemic situation is away. Thank you for joining us today. Thank you.