[Foreign language]各位投资界的朋友、投资人、媒体，大家午安。我是联咏科技的副总经理以及发言人陈建鑫。非常欢迎大家再次来参加联咏科技二零二二年第二季的法说会，很高兴能够再一次跟大家在线上见面。今天的法说会仍会同时用中文、英文来进行。今天的会议的议程如下：首先，会由我这边先用英文报告联咏二零二二年第二季的结果。接下来会由我们的王石尔副董事长，针对Q二的结果做进一步的说明，同时也会报告第三季的展望。最后会开放给各位问答的时间。各位可以透过线上把你的问题先上传给我们，我们IR主管Tony收到以后会帮忙用中文、英文来发问，然后由我们的王副总，还有周胜辰财务长，以及我本人用中文来回答各位的问题，再翻译成英文。Dear investors, analysts and media, good afternoon. Welcome to Novatek 2022 second quarter online investor conference. This is David Chen, Vice President and company spokesperson. I'll be the host for today's conference. We're happy to see you all again online. Hope all is well. Please be reminded that all questions can be sent in by text during the conference. The agenda for today's event will be as follows. First, I will be reporting Novatek second quarter results in English. After that, our Vice Chairman, Mr. Steve Wang, will provide more details on our Q2 results and Q3 guidance. Following that will be our Q&A sessions. As mentioned earlier, if you have questions, you can send them to us online. Our IR director, Mr. Tony, will process and read all the investors' questions one at a time, both in Chinese and English. Our Vice Chairman, Steve Wang, our CFO, Mr. Zhou and myself will answer all your questions in Chinese and will be translated into English. As usual, please take a look at our safe harbor notice. Let's start with our 2022 Q2 financial highlights. Our net sales in Q2 was TWD 31.46 billion, down QOQ 13.83% from TWD 36.51 billion, YOY down 7.77% from TWD 34.11 billion in Q2 2021. Our net gross profit in Q2 was TWD 14.98 billion, down 19.12% from last quarter TWD 18.52 billion, and down 12.73% from TWD 17.17 billion in Q2 2021. Our gross margin in Q2 was 47.62%, down 3.11 percentage points QOQ from 50.73%, and YOY down 2.71 percentage points from 50.33%. Our operating expense in Q2 was TWD 5 billion, down 4.69% QOQ from TWD 5.24 billion, YOY down 3.42% from TWD 5.18 billion. Q2 operating income was TWD 9.99 billion, down QOQ 24.82% from TWD 13.28 billion, YOY down 16.74% from TWD 11.99 billion. Our operating margins in Q2 was 31.74%, down 4.63 percentage points QOQ from 36.37%, YOY down 3.42 percentage points from 35.16%. Q2 net income was TWD 8.49 billion, down QOQ 23.78% from TWD 11.14 billion, YOY down 13.28% from TWD 9.79 billion. Overall, Q2 EPS was TWD 13.95 versus last quarter TWD 18.3, a QOQ decrease of TWD 4.35. Last year Q2 EPS was TWD 16.08, a YOY decrease of TWD 2.13. Please take a look at our Q2 consolidated income statement. Next, let's look at our first half YOY numbers. Our first half net sales was TWD 67.97 billion, up 12.39% YOY from TWD 60.48 billion. First half gross profit was TWD 33.51 billion, YOY up 16.86% from TWD 28.67 billion. Operating expense in first half was TWD 10.24 billion, up YOY 8.14% from TWD 9.47 billion. First half operating income was TWD 23.26 billion, up 21.15% YOY from TWD 19.2 billion. First half net income was TWD 19.62 billion, up 25.29% YOY from TWD 15.66 billion. EPS in the first half was TWD 32.25, a YOY increase of TWD 6.51 from TWD 25.74. Next is our Q2 sales breakdown by product line. SM DDIC, which is small and medium driver, accounts for 39% of our total sales. SLIC, which is all non-driver IC, accounts for 33% of our total sales. The third is the large display driver IC, which accounts for roughly 28% of our total sales. We have just released our July sales, which is TWD 6.87 billion, month-over-month down 15.84%, YOY down 45.07%. FOC accounts for 34%, and the display driver IC accounts for 66% of the total revenue for July. Next is the monthly sales compared 2020 to 2021 for your reference. Next, let's look at other key financial numbers. Our cash and cash equivalent in Q2 was TWD 70.26 billion, increased QOQ by 3.61% from TWD 67.82 billion. YOY increased by 94.56% from TWD 36.11 billion. Accounts receivable, Q2 was TWD 21.41 billion, decreased QOQ 10.52% from TWD 23.93 billion, and YOY slightly up 0.04% from TWD 21.4 billion. Our inventory level, Q2 was TWD 18.84 billion, QOQ up by 15.31% from TWD 16.34 billion, YOY up 74.09% from TWD 10.82 billion. Our short-term loans, Q2 was TWD 0. The following slide is a recap of our recent major events. Our AGM has approved the distribution of a TWD 51.5 per share cash dividend. Ex-dividend record date was on July twelfth, and the dividend will be paid on August twelfth, 2022. Now I'll turn over the call to our Vice Chairman, Mr. Steve Wang, to provide us more details on our Q2 results and Q3 guidance. Okay, let me just translate what our vice chairman just said. For 2022 Q2 revenue, it was TWD 31.46 billion, and it was lower than our guidance, at TWD 34.5 billion, and QoQ down 13.8%. This is mainly due to increasing global inflation, pandemic lockdown, and the drastic drop in consumer-related product demand. For example, smartphone, TV, notebook. As for the Q2 margins, it was 47.62%, which is in line with our guidance, but QoQ decreased by 3.11 percentage points. This is mainly due to cost increase and ASP erosion. Looking at the Q3 outlook, the global inflation, interest rate hike, and pandemic, etc., continues to impact our third quarter, and macro economy uncertainty has led to the weak demand in consumer-related products. On the inventory level, as you know, earlier, there was supply chain shortage, mismatch, transportation, hardware ship forward restrictions, and port on backlog. All these issues have caused the channel inventory to pile up. The brands and OEM players are aggressively making inventory adjustment, and thus turning more conservative. On the panel maker side, we can see that they're also cutting down capacity and lowering down their utilization rate to cope with the weak demand. The above scenario actually has impacted Novatek's business, and we're expecting our revenue moving forward to Q3 to decline. Our guidance for Q3 revenue will be between TWD 19.1 billion-TWD 20.3 billion at an exchange rate of TWD 1.1 to 229.8. The gross margin will be within the range of 42%-44%. Gross margin will be 42%-44%. Operating margins will be 23%-25% range. 23%-25% range. Thank you, Steve, for the Q3 guidance. Next, we'll move on to Q&A session. Please be reminded to send in your questions. Tony will be collecting the questions, and we already have some questions on hand, and we'll try to answer those questions first. Tony. [Foreign language] 谢谢，各位大家好，我是Tony。第一个，是关于第二季的数字，管理层刚刚有提到整体的营收跟毛利的结果的主要原因，但是不知道可以就各三大产品线第二季的表现，还有哪一个，三大产品线中的毛利哪一个有比较受到影响。 [Foreign language] 以第二季的结果来看，以三大产品线来看，SoC 下滑的幅度是比较小的。手机下滑的幅度是比较大的，这个是第三季营收的结果。那以毛利率来看的话，主要是因为刚刚提到的成本上升，那有些产品的售价下滑，所以毛利率有下降。这个主要跟面板的驱动 IC 受到的影响是比较大的，比如说手机的 DDIC 的产品，售价受价格影响是比较大的。SoC 相对是比较平稳，这是大概第二季的情况。 Yes, management already mentioned about overall trend for revenue and gross margin in the second quarter. Just wondering if you can provide more color for your 3D business in terms of quarter-over-quarter trend as well as the margin trend in second quarter? Well, in second quarter, the revenue was mostly impacted by the display DDIC, and mainly of the smartphone TDDI. As for the SoC is relatively kind of stable, and the margin was mainly impacted by ASP erosion and the cost increase. [Foreign language] 第二个问题就是，关于您的营业利率，三十一点七四%，是较指引的 32% 到 35% 稍低，请问主要的原因为何？ [Foreign language] 第二季的营业费用金额相较于第一季减少了2.46亿，但是因为营收低于指引，故营业利润率低于预期。 Your operating margin was 31.74% second quarter, lower than the guidance of 32%-35%. What's the major reason? For the Q2, OPEX decreased QoQ by TWD 246 million. Our revenue was lower than our guidance, and this in turn affected our OP margin, missing the guidance. [Foreign language] 我们注意到您的业务外获利在第三季——第二季还是维持在高档的5.12亿，跟第一季相比还要高。请问主要的原因为何？ [Foreign language] 第二季的营业外收入主要是来自于汇兑盈余的4.07亿，以及利息收入的0.96亿所贡献。 We noticed your non-operating income in second quarter stayed at a high level of TWD 512 million, compared with TWD 485 million in the first quarter. What were the major factors? For the Q2 non-operating income, mainly the forex gain of TWD 47 million and interest of TWD 96 million. [Foreign language] 第二季最后一个财务问题，也是很多投资人关心的，就是说大家注意到存货增加到高点188亿，季堆积成长了15%。请问现在的存货天数为何？那主要的原因是什么？还有主要是哪种产品？ [Foreign language] 第二季的存货188亿，如果换算天数的话，大概是103天。我想这个应该是个manageable。那因为生产的这个cycle time比较长，大概三到四个月，那当需求下滑的时候呢，我们大概需要两个季度来调整。不过因为有供应面的风险考量呢，我们的策略上，我们可能会维持比正常时期稍微略高的水平，在未来的库存控管上面。那主要的库存产品呢，我想应该主要都是跟面板相关的产品为主，不过这些库存品呢，应该都不是dead，这些应该都是可以卖掉的产品。 We noticed inventory dollar further increased by 15% quarter-over-quarter to TWD 18.8 billion. Wonder which means how many inventory days, and what are the major reasons and for which product? Well, based on the inventory level, Q2, the days of inventory will be around 103 days. Looking at the inventory level and management, think that it should be manageable. Shouldn't be a problem. Well, the overall inventory level mainly due to the longer cycle time, which takes about three to four months. Under this current weak demand, it will take around two quarters to adjust the inventory level. Basically, we'll be strategically maintaining a slightly higher than normal level of inventory because considering the supply risk due to pandemic. The main inventory level are the display-related products, and we have reviewed our current inventory level and expect the digestion in the market shouldn't be a problem. [Foreign language] 刚刚主要是回答了投资人对于第二季的一些数字上的一些问题。那接下来我们看到问题最多的，当然大家很关心未来的这个需求与展望。所以想请问一下管理层对于整体的需求或是订单，有没有觉得在什么时候可以落底？但是如果现在能见度比较不好的话，那可以分享一下第四季目前看起来的趋势为何？ [Foreign language]在今年的下半年的需求呢，回到基本面，我们还是要持续去密切观察总体经济的发展。基本上呢，我们还是看这个市场对需求的回升状况，来判断什么时候可以落底。不过我们现在观察到的就是，品牌系统厂呢，为了突破这个不景气，看起来在第四季也会推出一系列的新机种，来刺激市场的需求。我们来看，希望第三季的营收呢，希望是我们今年2022年的营收的低点。 When will overall demand for your orders reach the bottom? If the visibility is not clear yet, how about the sequential trend into the quarter four compared with quarter three? Well, as for the second half of, you know, the demand, we still need to look at the overall macro economy. Basically, you know, looking at the Q4, I think it will really depend on the market demand recovery. What we see at this moment is that a lot of the OEM and brands, they're launching new products in order to stimulate the market demand. Hopefully Q3 will be the lowest point of 2022. [Foreign language] 刚刚管理层讲了整体的趋势，但是就三大主要产品线，像 TV、IT、手机的趋势为何？那有没有哪个产品相对看起来比较持稳，或者比较有机会先反弹？ [Foreign language] 以几个重要的消费电子产品来看的话，由于TV已经提早下来，所以我们的观察，应该现在第三季有可能是低点，有可能是低点。那手机来看的话，刚刚提到的就是第四季看起来有一些新机种的推出，比如说像高级产品，像折叠屏这些的产品，或者像一些VR的这些产品，应该会推出来。那当然接着我们就看这个sell through，到时候这个情况是怎么样，我们会来观察。所以PC相关的，像notebook啊，或者是monitor啊，看起来Q三、Q四应该还是会持续有这个库存调整的这个情形。 How about the order trends for your three major product lines, such as the TV, IT, and the smartphone? Which end product has been more resilient and which one could bounce first? Well, as we all know that the TV demand has declined earlier than the other product line, so it is relatively at a lower point. We're expecting in the fourth quarter, the TV demand to get better. As for the smartphone, there'll be new smartphone model launch in Q4, and we need to monitor the sell-through situation. For the monitor, PC, and the notebook, the inventory adjustment will extend to Q3 and Q4. [Foreign language] 您跟客户之前有说有签了一些订单，现在要如何执行与商谈？ [Foreign language] 我想这个跟客户的订单呢，基本上我们还是跟客户来协商这个怎么弹性处理的这个方式。那比如说，因为现在市场不好，那是不是延长执行的时间，或者是，因为我们的产品线也比较多元，所以是不是看看可以更换其他的产品，类似这样的一些弹性处理的这个方式。 Also wonder how you will execute or negotiate with customer for those signed contracts? Well, as for the working with our customers, we need to keep a very close kind of relationship and working closely with our customers to maintain and try to maintain certain degree of flexibility. For example, extend execution period or replace with new products. These are some of the flexibility that we're working with our customers. [Foreign language] 请问在2022年，公司看到有出货量或营收有产品线会有机会维持正成长的吗？ [Foreign language] 以我们现在来观察，如果把下半年的营收把它给看清来的话，像车用啦，或者是一些公共的产品啊，还有一些跟影像处理相关的类似安防的产品啊，今年应该还是营收上会有所成长。 Which product lines will still grow revenue or units year-over-year positively in 2022? Well, there are a few areas that we still expect growth, and that will be like automotive or industrial application or image-related product like the surveillance, should expect growth this year. [Foreign language] 这边您对OLED车用产品或其他新产品，可以分享一下您的中长期看法吗？ [Foreign language] 我想这个，对中长期呢，我觉得我们应该还是持正面的这个看法。比如说像OLED的产品，除了手机以外呢，事实上我们也扩大到其他的这个应用，还有这个custom-based。其他的应用，比如说像OLED TV的driver，或者是OLED的这个tablet这个driver，或者甚至这个OLED notebook的这个driver，还有这个timing controller，像这些的这个应用的扩充呢，在OLED这里呢，应该还有蛮大的这个空间。另外一个就是custom-based呢，也持续的在这个扩大。那在车用方面呢，事实上除了现在我们已经在出货的这个DDI，就是driver IC呢，还有这个DDIC呢，另外呢，在T-Con呢，这里我们现在都已经是在出货了，而且是出货给这个tier one的这个customers。而这个也包括了这些一些新的EV的公司，就是纯电动车的这些的公司。那未来呢，我想我们应该会扩大这个designing的这个机种，在这些这个车用的这个新的机种上面。另外还有一个就是AR、VR的这个应用呢，看起来现在客户的这个designing的activity也不少，所以我们对未来呢，这些长期的这些产品呢，应该还是有这个相当的这个期待。我想这个几个比较typical的这个产品先给大家做一个报告。 Wonder if the management can share your mid-to-long term view of OLED, automotive, and other new products? Well, we maintain a mid-to-long term positive view on our new product lines. For example, looking at the OLED, we are expanding those OLED to other new applications. For example, TV, tablet, notebook, not just driver, but also the T-Con timing controller. For example, on the automotive side, besides just DDIC, we also expanded to DDI, and we are already shipping to tier one customers. Again, not just the driver, but also the timing controller and also to the EV vehicles. We are seeing a lot of opportunities on the VR and AR, and it's already in mass production now. Of course, we also see a great opportunity in the ASIC product, which a lot of the customers have that special needs, and we can provide them those kind of ASIC products. [Foreign language] 下一些我们看到一些问题是关于大家对于供应链的供需的这些问题。第一个想请教一下管理层这边对今年下半年在驱动IC跟SoC供需的情况，那有机会降价吗？ [Foreign language] 以今年的供应在下半年来看，目前看起来大部分的供应都是正常的。目前看起来供应应该都是正常，而且可以满足需求。只是有部分因应短单的情形，可能需要做一些调整生产，这是在 wafer 这里的 supply 的情况。当然现在因为市场需求比较 weak 一点，所以我们也请供应商供给时间，所以看起来部分的产品在下半年有些有机会可以降低成本，是有机会可以降低成本。 Now we switch the question to about the supply chain. First is, how about demand supply situation in the foundry in the second half of this year for both DDIC and SoC? Any chance to lower the cost? Well, the overall supply and demand on the foundry side is normal. There are some rush orders that need to be pulled in for some special products. Currently, we are working closely with our vendor to survive the storm together and expect some cost down for certain parts. [Foreign language] 也可以请管理层分享一下现在对2023年晶圆供应在您两大产品线，驱动IC跟SoC的供需的看法吗？ [Foreign language] 基本上应该还是看需求的变化情形。目前来看，初步观察应该大部分可以正常供应，应该大部分可以正常供应，除了少部分特殊的 process node 的，可能目前还是在持续的协商当中，大概是这样的一个情形。 Wanted to know your view on the foundry demand supply for next year for both DDIC and SoC. Well, it will really depends on the overall demand. Currently the foundry supply is normal and only certain nodes have supply tightness that we are negotiating with our supplier. [Foreign language] 也请管理层分享一下，之前有跟晶圆厂签了一些合约，那现在要如何执行与商谈。 [Foreign language] 基本上，我们仍然继续跟这个供应商在协商，怎么样的一个变通的处理方式，怎么样来弹性处理这个。但是我们在 Q2 的财报中，已经有这个估算了，而且在给各位的 Q3 的毛利率的 guidance 呢，我们也已经把它给考虑进去了。 Also wonder how the management execute or negotiate with foundry suppliers for your contract? We'll continue to negotiate with our supplier and try to maintain degree of flexibility. As for our Q2 and Q3 numbers, actually we have already booked provisions in Q2. For Q3 guidance, we have also included related provisions. [Foreign language] 也想请教管理层对于封测这边，对您的驱动IC跟SoC的供需状况在下半年，有机会降价吗？ [Foreign language] 目前来看，封测的供应看起来应该也是正常的，应该也可以满足我们的需求。有关成本降低的部分，有部分的产品，我们也跟协力厂大家来协商，怎么共度时艰，一起来过这个需求比较弱的这段期间。 Also wonder how about the demand supply situation and the packaging testing for both DDIC and SoC? Also wonder any chance to lower the cost in the second half of this year? Well, the supply and demand on the back end currently is normal, and we're expecting partial product line to have some cost reduction. Again, we're working closely with our back end vendor in order to weather the downturn together. [Foreign language] 除了刚刚的晶圆跟封测外，想请教一下其他原物料的供需跟价格走势，还有公司的存货状况。 [Foreign language] 其他的这个原物料呢，我们目前看起来应该供应也都是正常，没有什么这个异常。存货的状况呢，我想应该也是在健康的水平，在健康的水平上。 Also wonder the demand supply situation and the price trend for other parts, and also your inventory situation for these parts. As for the other parts, currently the supply and demand is also normal, and the inventory level on our side is pretty healthy. [Foreign language] 在讨论完关于市场需求以及供需情况下，大家下一块关心的问题是关于毛利率的趋势。第一个问题是想请教一下，公司对于毛利率有想法，觉得何时可以落底？那如果现在能见度还不佳，那想请问一下第四季的趋势跟第三季比较起来。 [Foreign language] 基本上，公司是没有提供这个第四季的猜测。不过，有关毛利率方面，因为我刚刚跟大家报告的有一些预期的 cost reduction，所以我想这个成本应该可以逐渐的跟上，反应。所以我们现在来看的话，毛利率的降幅在第四季应该会趋缓，应该会趋缓，会有这样的一个趋势，会有这样的一个趋势。 Wonder when your gross margin will hit the bottom? If the visibility is not clear yet, how about the sequential trend into the quarter four compare with the quarter three? We haven't provided Q4 guidance at this moment, but moving forward, we are expecting the cost down to catch up with the pace of price decline. Therefore expect our margins decline to be more moderate in Q4. [Foreign language] 刚刚公司讲的是一个整体的趋势，不知道对三大产品线，比如说售价、成本或者个别的毛利率趋势也可以多给一些方向吗？ [Foreign language] 我想这个成本跟售价呢，我想基本上还是跟供需有关系，还是跟供需有关系。不过以我们的这个产品线来看的话，目前来观察，SoC相关的产品呢，在未来两季这里应该看起来售价还是相对稳定，售价会相对稳定。但是手机的TDDI的这个产品看起来，由于有库存调整的这个问题，所以变动相对呢看起来会比较大一点，看起来会比较大一点。不过呢，回到毛利率的本身呢，我想联咏的重点呢，我们还是在这个提升这个技术啊，还有开发这个高附加价值的这个产品，强化这个产品的这个组合，我想这是fundamental，我们要能够提升毛利率的这个方式。 Management already mention about the trend for your overall company. I just wonder if you can provide more color on your three product lines in terms of the selling price, cost or the net gross margin trend? Well, again, as you know, the ASP and costs are subjected to supply and demand. What we see now is that the SoC lines are relatively more stable, moving forward to the next 1-2 quarters. For the smartphone TDDI, we are expecting it to have more fluctuation in terms of its pricing. For us as IC design house, our main focus is enhance the technology strength and how to build more value added product and further improve our product portfolio to enhance our gross margin. [Foreign language] 投资人也很关心这个大陆竞争对手对联咏的影响，还有一些新的晶圆厂开出驱动IC产能造成的冲击。 [Foreign language] 我想在这儿，以Novatek来讲的话，我们强调的是total solution，这个total solution。除了driver IC以外，像timing controller，或者是PMIC，这个power chip之类。第二个呢，我们是一个全方位的，从小尺寸的，提供给客户这个全方位的资源。甚至呢，我们可能也会去扩大这个，不同的面板，或者是不同的driver IC，在不同的，扩大它的applications，或者是这个custom-based，这个是我们在这里会持续来做的。至于说提到这个晶圆的驱动IC产能的开出，我想只要具有竞争力的，或者是先进制程的规格呢，我想联咏都会来使用，联咏都会来使用。但这个fab的厂呢，foundry的公司呢，它也会依照这个市场的供需的情况呢，也会去弹性调整，所谓的产品的组合，也会去弹性生产这个产品的组合。所以在这里来讲，整个产能的开出呢，我们的看法大概是以上这样。 I wonder if management can comment on the potential impact from competitors and the foundry supply from China, particularly for DDIC business. Well, as Novatek's strength, basically is in the display total solution. It's not just the driver IC, but also the timing controller and the PMIC. It's across the board from small, mid to large size display. We are also expanding that to more different applications and more customer base. As you know, this involves a lot of core technologies. As for the foundry, you know, no matter whether here in Taiwan or in China, but as long as there's more competitive or advanced process nodes, we'll try to adopt those nodes to maintain our competitiveness. As for the fab, you know, they always maintain the flexibility in our product allocation depending on the demand situation. [Foreign language] 关于毛利率，最后不知道管理层是不是也可以分享一下您对中长期的一个看法。 [Foreign language] 我想这个刚刚提到这个毛利率啊，基本上我们还是从这个自己本身的这个品质要来能够强化。像我们在这个，Novatek在这个长期的这个技术，我们会持续来深耕。另外呢，我们会加速这个新产品推出，一些附加价值的这个新产品来推出。另外刚刚提到这样产品线的这个应用呢，我们也多元来发展，会多元来发展，避免这个单一产品所产生的这个短期的这个变动，短期的这个变动。所以这些呢，我们能够来强化公司的品质呢，来提升这个长期的这个毛利率。那比如说呢，像在这个大尺寸相关的应用呢，我们会有一些高阶的IT的应用，像加入touch啊，或者是一些gaming方面的这个应用，需要这个high frame rate啦，或者high speed interface啊，或者一些8K的display，这些相关的，或者是high speed interface，像DP 1.5啊，或者是timing controller embedded eDP这样的一些的这个产品，或者是像这个OLED TV的这个driver，刚刚也跟大家报告过了。那在中小尺寸这里呢，当然这个，除了这个大家知道熟知的这个OLED用在这个手机上面啊，那后头呢应用到平板或者是NB呢，这个我们也有这个新产品持续在开发，甚至已经有些已经在交货当中。像这个OLED的TDDI的产品啊，另外还有像那个车载的这个TDDI，车载的这个TDDI，还有这个，应用到这个AR、VR的这些driver，这些。另外还有一些，我觉得比较重要，有一些特殊应用的ASICs呢，事实上我们这里进展呢也不错，这是特殊应用的这些的ASICs。那在SoC产品这里呢，当然除了过去的这个4K 60Hz的TV SoC，在进入这个今年的这个4K 120Hz的TV SoC呢，我们在这上面也有不错的这个进展。另外还有一些跟影像相关的ASICs呢，像PQ，或者跟display相关的high speed interface相关的这些ASICs呢，我想后面也都是联咏我们重要来这个发展的这个方向。要透过这些的这个新的技术或者新的产品的发展呢，我们可以长期来这个提升这个我们的这个毛利率，提升这个毛利率。Also wonder management can provide your view on your mid to long term gross margin trend. As established, Novatek will continue, you know, to invest into new technology and speed up our new product development and diversify our technologies to various new applications and then also to enhance our gross margin. For example, if you look at for the large panel, we have, you know, high-end IT applications, and we also have applications going to gaming, which you need high-speed interface or high frame rate technology, and also moving to high resolution 8K display. We also have the high-speed interface like the DP DisplayPort 1.5, and also moving to the OLED TV. As for the small and medium size, as you all know, we already, you know, launched the OLED smartphone driver and it's already in mass production. We're moving this to notebook OLED and also the OLED TDDI. For the automotive, we have also, you know, started production of TDDI for the automotive. Of course, the new area is the AR and VR, which is also exciting area. Last but not least, we can see that there is also good opportunity and good progress in some of the specific ASICs where a lot of our customers that they have need, and we're making good progress in those areas. As for the SoC side, a lot of the TV are moving from 4K 60Hz to 120Hz. Then we're also seeing a lot of good opportunity in the image related area, for example, the surveillance. Some of the ASICs for the SoC side, we have a lot of ASICs for the picture quality and also some of those that related to very high speed interface. We are launching a lot of these new technology, and all these are, you know, will together help to enhance the value that we can provide for our customers and of course, in turn, you know, help us to, you know, improve our margins. [Foreign language] 最后有几个大家关于其他的问题。第一个，就是关于库存的这个方向，不知道第三季末，这边管理层可以对金额或天数，给我们分享一下趋势，那你的预期何时可以回到比较合理的水准？因为我们在第二季呢，就开始已经进入这个库存的调整，所以呢，我们在看，现在看起来在第三季呢，这个库存的金额应该可以降低，第三季的这个库存的金额应该会降低。到第四季呢，看起来这个库存的金额呢，可以再进一步的下降，可以再进一步的下降。但是跟大家讲到，我们还是会维持比这个刚刚跟大家报告的比正常时期的这个库存的这个水平会稍微略高一点，会稍微略高一点。Wonder the management can provide your expectation for inventory dollar or days at the end of quarter three or further is back to more normal level. As you know, we started inventory adjustment in Q2, so we expect our inventory dollar to decline in Q3 and further decline in Q4. As we mentioned earlier, we'll maintain a slightly higher than normal seasonal level of inventory in order to cope with the supply risk. [Foreign language] 第二个就是关于公司的现金部位相当高，除了发放这个固定的现金股利外，还有其他的计划吗？ [Foreign language] 我想这个现金的部位呢，我想主要我们是作为投入长期技术的这个研发来使用，还有扩充这个投资来扩充这个产品线。另外当然我们也保持一些弹性呢，在必要的时候呢，方便公司来做这个规划使用。 [Foreign language] 这边，再整理一下问题。 For your rich cash position in addition to the dividend distribution, would you have any other plan? Well, the cash position or mainly we're gonna invest into long-term R&D to broaden our product portfolio. We also need to maintain a certain level of cash for future needs. Yes, Tony, I think you have summed up the question, if you don't have any further questions, please. [Foreign language] 这里我正在整理一下，不过这边因为看有大家都在重复问 revenue 跟 gross margin 的 guidance，那我这边稍微提一下，刚刚管理层是觉得第三季的 revenue 可能会是谷底，那有看到一些第四季的 activity，所以希望第四季的营收有机会回升。那关于毛利率这边，管理层也提到，第四季因为有很多的成本降低的努力，那效果会逐渐趋缓。这是我们刚刚管理层有提到，我在这边跟大家稍微再澄清一下。那关于大家问的就是说，关于第三季您提到的整个营收的 guidance，那可以就三条产品线的季对季的趋势，还有这个在单价跟出货量上稍微再给多一点方向吗？谢谢。 [Foreign language] 以这个Q3的guidance的revenue来看，事实上我们看到的衰退大概三个主要的产品线都会衰退。那如果说要有一个比较大，在大尺寸的这个driver这里看起来会比较稍微大一些，在大尺寸的driver这里会比较大一些。那SoC的产品会稍微比较小一些，比较小一些，这个是第三季的情况。那另外在单价上，刚刚也跟大家报告过，主要还是SoC产品看起来单价上相对是比较稳定的，相对是比较稳定的。那手机方面的TDDI，单价变动会比较大，手机方面TDDI的单价变动会比较大。 Regarding your third quarter guidance, I just wonder if management can provide more color by three business lines as well as how about the units and ASP trends? Well, as for the revenue, we're seeing that the large panel driver will have a bigger decline. As for the SoC, the decline rate will be relatively smaller. As for the pricing ASPs, again, we mentioned earlier, the SoC ASP will become stable, but for the smartphone TDDI, they will have a bigger fluctuation. Remind all of you again, if you have any further questions, please step in. [Foreign language] 我想这一次，下半年的营收的修正，我想这个是大环境的市场需求的下降，还有库存的一个调整。我想联咏公司的体质跟我们技术领先，我想应该是没有改变，应该是没有改变。我们还是应该相当有信心，在经过这波修正以后，我想这个需求应该回到正轨，我们的营运能力、营收应该也可以回到正轨上。 Well, what Steve just mentioned is that the second half, the revenue correction is mainly due to the macro and the inventory adjustment. Basically, what Steve just mentioned is that there is no change in our competitive position, and we are maintaining our technology lead and the confidence that we'll be back on track soon. If there's no further questions, then we'll end our second quarter investor conference here. Thank you so much for joining in and hope to see you again next quarter. [Foreign language] 好，谢谢大家。 [Foreign language] 谢谢大家。