各位投资者、分析师... [Foreign language] 投资界的朋友，还有媒体，大家午安！我是联咏科技的副总经理以及发言人。今天非常欢迎大家来参加联咏科技2023年的第三季的法人说明会。今天线上跟我们在一起的有：联咏的副董事长王守仁先生，还有我们财务长周勝承先生，还有投资关系的处长Tony，以及Yvonne。很高兴能够再次跟大家在线上见面。我想今天的法说会，会同时用中英文来进行，今天的会议的议程，如下：首先，会由我们IR的处长Tony，先用英文报告联咏2023年的第三季的结果。接下来会由我们的王守仁副董事长，针对第三季的结果做进一步的说明，同时也会报告2023年，第四季的展望。最后会开放给各位，Q&A的时间。目前我们已经收到一些投资人的问题，各位仍然可以，透过线上把您的问题，先上传给我们。我们的IR的主管Tony收到以后会帮忙，用中英文来发问，会由我们的王副董，还有我们的财务长，以及我本人用中英文来回答各位的问题，中文来回答，然后再翻译成英文。Good afternoon, everyone. Thank you for joining Novatek 2023 third quarter online earnings call. This is David Chen, Vice President and Company Spokesperson. I'll be the host for today's our conference, and joining me on the call today, our Vice Chairman, Mr. Steve Wang, our CFO, Mr. S.C. Chou, and our IR Director, Tony Tseng and Yvonne. The agenda for today's event will be as follow: First, our IR Director, Tony, will be reporting Novatek's third quarter results in English. After that, our Vice Chairman, Mr. Steve Wang, will provide more details on our Q3 results and our 2023 Q4 guidance. And following that will be our Q&A session. We have already received some questions from our investors, and if you have questions you would like to ask, please send them to us online, and our IR director will process and read out the investor questions one at a time, both in Chinese and English. And our Vice Chairman, Steve Wang, and CFO, Mr. Zhou, and myself, will answer all your questions in Chinese and will be translated into English later. Now, I'll hand over the time to Tony, our IR director, to report our Q3 results. Thank you, David. This is Tony. This is our safe harbor notice, please take a look. The first page shows our quarterly revenues. Our third quarter revenue sequentially declined around 5% quarter-over-quarter to TWD 28.9 billion, also at the high end of our guidance of TWD 28.1 billion-TWD 29.1 billion, but still a big year-over-year growth of 48% from the third quarter during our recent busy year a year ago. Our third quarter gross profit TWD 12.2 billion, down slightly 3% quarter-over-quarter, but still increased 46% year-over-year. As for gross margin, our third quarter gross margin of 42.25% increased from 41.74% in second quarter, and 42.65% a year ago, and exceeding our guidance of 38.5%-40.5%. As for our third quarter operating expense, the operating expense of TWD 5.08 billion down almost flattish quarter-over-quarter, but still increased 24% year-over-year, mainly due to higher R&D expense. As for operating income in quarter three, TWD 7.1 billion in quarter three, down slightly 5% quarter-over-quarter, still increased meaningfully by 67% year-over-year, also partially helped by operating leverage. This page show our operating margin in quarter three at 24.69%, almost flattish quarter-over-quarter-... but up from 21.75% a year ago, and also higher than our guidance, 21.5%-23.5%. As for net income, third quarter reached TWD 6.37 billion, down 7% quarter-over-quarter, partially due to a little bit lower non-operating income, but still increased 47.9% year-over-year. As for EPS, quarter three EPS reached TWD 10.46, down slightly from TWD 11.29 second quarter, but still up year-over-year from TWD 7.07 a year ago. This is a summary for our income statement for quarter three, along with the quarter-over-quarter and the year-over-year comparison. Please take a look. The next page shows the accumulated result income statement for 2023, compared with the same period a year ago. For the first three quarters, revenue of TWD 83.3 billion, down around 5% year-over-year. Gross profit of TWD 34.9 billion, down 16.5% year-over-year. Operating expense of TWD 14.6 billion, but roughly flattish year-over-year. Operating income of TWD 20.4 billion, down 26% year-over-year. Net income of TWD 18 billion, also down 24.8% year-over-year. As for EPS, the first three quarters reached TWD 29.56, down from TWD 39.32 a year ago. This page show the revenue breakdown for our three business lines. The small medium-sized driver accounting for 39%, followed by SoC at 38%, and large driver accounting for 23%. Also for your comparison, in second quarter, these three number was 37%, 36%, and 27%. We also just released our October revenue at TWD 9.5 billion. It's up 38.6% year-over-year, but slightly down from September level. For the first 10 months, the accumulated revenue reached TWD 92.8 billion, down 1.7% quarter-over-quarter. Look at the revenue breakdown for the October. SoC revenue reached TWD 3.4 billion; it's about 36% in October. The other operating income is mainly coming from the NRE part. This page show our monthly revenue trend since the beginning of 2022, and you can see we start to turn; revenue have a positive year-over-year growth from June this year, and this trend continue to the October now. This page show the brief of some key financial numbers, including cash, account receivable, and the inventory. Cash of TWD 455.6 billion, down 28% quarter-over-quarter, and mainly due to cash dividend distribution during quarter three, but still up 15% year-over-year. Account receivable reached TWD 20.6 billion and roughly flattish quarter-over-quarter, but up 47.5% year-over-year, mainly due to the revenue growth. As for inventory, inventory dollar decreased 13% quarter-over-quarter to TWD 9.1 billion, the lowest level over the past two years, and also down 47% year-over-year. Now, I pass the call back to David. Thank you, Tony. The following slide is a recap of our recent major events. We have been ranked in the top 5% of companies in 2023 of the corporate governance evaluation, and then we've been given a in the TCSA Taiwan Corporate Sustainability Award, a Gold Award for our sustainability report. Then we also among the top 100 winners of the Sustainable Citizens Award, issued by the CommonWealth Magazine, that's it. Then we have published our Novatek 2022 sustainability report, and we have given the link both in Chinese and English, for your reference. And the last is that our ISO 50001 energy management system has passed the third-party verifications. And now, I'll turn over the call to our Vice Chairman, Mr. Steve Wang, to provide us more details on Q3 results and Q4 guidance.接下来我们邀请我们的王副董，针对第三季的结果来做进一步的说明，同时也报告第四季的这个展望。 谢谢 David。这个我想刚刚 Tony 呢，已经跟大家报告了我们第三季的这个详细的营业的这个结果哦。那第三季我们的营收呢，比第二季减少了大概 4.5%，这主要是这个 IT 的相关的产品呢，客户在提前呢，在这个 Q2 呢拉货，所以影响了 Q3 的这个出货的这个表现。不过我们的，营收数字呢，仍然达到了这个预期的这个上限。那 Q3 呢，第三季的毛利率呢，42.25% 呢，比第二季的 41.74%，大概增加了 0.51 个百分点，这个比我们的这个 guidance 38%-40... 38%-40% is preferable. I think the main reason is that in Q3 we had an inventory write-down reversal, in addition there was cost reduction, as well as this favorable exchange rate factor, which made the gross margin higher than expected. This is mainly the reason. Now let's talk about the outlook for Q4. For Q4, currently it looks like the overall economic prospects, as well as the international situation, still have uncertainty. Currently, the recovery momentum of terminal demand for consumer electronics is still not very obvious, and at year-end manufacturers will have inventory adjustment situations. Customers currently, for the most part, are still responding with rush orders and short orders. Therefore, we expect Novatek's Q4 guidance to be roughly as follows: On the revenue side, we expect roughly, uh, Q4 to have 200... Uh, approximately Q4 revenue is approximately TWD 26.1 billion-TWD 27.1 billion, approximately TWD 26.1 billion-TWD 27.1 billion. This is calculated using an exchange rate of 32. Then gross margin is approximately between 38.5% and 40.5%, then profit margin is approximately between 21% and 23%. The above simply, first report to everyone Q4's this outlook. Next in Q&A again with everyone answer. OK, thank you, Steve. Tony has already reported our Q3 numbers, so our Q2 revenue are TWD 28.9 billion, Q2 down 4.52%, but up by 47.88%. The revenue for the third quarter decreased by the 4.52% quarter-over-quarter. This is mainly due to our customers IT product pull in in Q2, and hence affected Q3 shipments. The overall revenue reached near the upper bar of our guidance. As for the Q3 margins, Q3 margin is 42.25% quarter-on-quarter, which is improved by 0.51 percentage point. This is also better than our guidance of 30%-40%. This is mainly due to the reversal gain of... From the inventory write-down, and also some from cost down, and also the favorable Forex. And looking at Q4, well, due to the economic uncertainty in Q4, and then the consumer end demand rebound is not very significant. And then we also seeing some year-end inventory adjustment, and then most customers are managing the situation by relying on short and rush order. So based on the above, we anticipate our Q4 revenue guidance will be as follow. So revenue will be TWD 26.1 billion-TWD 27.1 billion, that will be at an exchange rate of 1 to 32, and our gross margins will be within the range of 38.5%-40.5% range. And the operating margins will be from 21%-23% range. That's the guidance for our Q4 2023 numbers. So next, we'll move on to Q&A sessions. Please be reminded if you have questions that you would like to ask, you can send it online and we'll collect them and try to answer them one by one. So we'll move on to Q&A sessions. And Tony, we already have some of the questions on hand, so please go through some of those questions first, and then we'll collect more as we approach the end of that questions list. 谢谢David，那，我想先问管理层，就谢谢刚刚给的第四季的指引，那可以就对第四季公司主要的几个终端应用的需求，还有库存水准的趋势分享一下看法吗？ 以第四季来看，目前手机呢，我们看到的需求确实有回升的情形。... 尤其是TDDI的这个拉货补库存呢，来备这个年底的这个促销，备货年底的这个促销呢，看起来是比较明显的，像年底的双十一啦，Christmas、元春的这些备货促销。那NB这里，PC这里呢，看起来是只有小量的这个回补的情况，这个需求呢，Q4看起来有略微增加。但是电视呢，看起来第四季呢，是进入这个传统的淡季，是进入传统的淡季。车用这里呢，第四季呢，客户也有部分库存，库存的这个调整，需求也稍微软减少。那VR的部分呢，目前看起来第四季呢，是出货的尾声，所以看起来的需求是，下来，看起来需求是下来。以上大概简单把几个跟我们比较相关的这个应用呢，跟大家做一个报告。 Could management share the view on the sequential trend across major applications in terms of inventory level and the demand into quarter four this year? Oh, the smartphones, we are seeing some demand rebound, particularly on the TDDI, restocking and we seeing some rush orders. And as for the notebook, we are seeing some small rebound, notebook and PC, including PC, and these are on the back of preparation for the year-end promotions such as Double Eleven, Christmas, and, Chinese New Year. And then, as for the TV, we are seeing that it is entering the low season, and so it, it will decline QOQ. And the automotive side, it's also seeing, inventory adjustment, so the demand will also decline. And for the VR product line, it's entering at the end of the delivery, so the also the unit shipment will come down in Q4. 那，谢谢管理层分享对终端市场应用别的的一些趋势看法，那可以提一下对公司的三大产品线在第四季营收季对季的表现情况会是怎么样的呢？ 以刚刚给家的大那个数字，第四季我们三大的营收产品线来看的话呢，在大尺寸的驱动IC这里呢，QOQ呢，营收这里看起来会略增，这个主要是刚刚提到的NB呢，看起来有小量的这个回补备货，所以这个大尺寸驱动IC这里看起来营收季对季有略增。那中小尺寸的这个营收呢，看起来会略减，虽然呢手机的TDDI的出货回升了，OLED的这个需求呢也持续，但是因为VR的出货呢进了尾声，另外在Auto的出货呢也有一些减少，所以呢，QOQ的营收会稍微略减，QOQ会稍微略减。那SOC的部分呢，由于TV相关的SOC啦，还有scaler啦，跟安防啦，进入这个传统的淡季，所以营收的减少的幅度呢会比较大一点，营收减少的幅度会比较大一点。以上简单跟大家报告一下三个产品线的状况。 Consequentially, could management also provide your quarterly revenue trend across three business groups for quarter four? Well, looking at the large Driver IC product line, we are expecting that it will increase slightly quarter on quarter. It's basically helped by notebook restocking. And as for the small and medium Driver IC, despite a sequential growth for smartphone TDDI, OLED, TDDI, OLED Driver IC, but the overall small and medium Driver IC product line will decrease slightly quarter on quarter. This is mainly due to the lower VR and auto product shipment. And as for the SOC product line will also decrease, but will with a larger QOQ trend. This is mainly due to the slow season for both TV SOC and monitor scaler and also some of the surveillance product line. 下一个问题是想请教管理层，在最近的这几个季的这个第三方报告都看到说，在TV跟手机这边有一些终端品牌的这个市占率开始有一些移动，比如说，中国的品牌上升到第二、第三呢，然后中国的一些手机品牌最近也在中国国内或者海外表现不错。那想请问一下，这样对联咏的话，的机会还是挑战，是一个怎么样的情况呢？谢谢。 这个对Novatek来讲的话，当然是一个机会，因为联咏的这个产品线完整，而且我们有这个竞争力，而且覆盖的客户范围比较广，因此我们觉得是有不错的这个机会。而且经营品牌客户呢，是联咏我们长期的这个经营的一个策略，我想这个是一个不错的机会。 Could management also share your view on the opportunities and the challenges on the recent market share shifts among the major TV of smartphone brand name? ...In short, this is a good opportunity for Novatek, because we'll take advantage of share shifts among customers, given our broad product portfolio and wider customer base, and also, managing our brands is our major target. 由于呢，2023年呢，我想大部分的时间呢，整个供应链呢，都在调整这个库存。那目前来看呢，这个库存呢，已经调整到一个，应该是相对是健康的一个水位，所以我们觉得2024年呢，应该会恢复了这个正常的这个进货。因此呢，我们觉得像手机啦、电视啦、PC啊，车用啦，我们觉得明年2024年呢，应该都有机会来恢复正成长，应该都有恢复的机会来，恢复正成长。至于说这个，AI PC跟这个AI手机啊，我想目前这个都是在概念在推广当中，哦，而且生态系呢，也在建立当中。但是呢，可以肯定的，这个是AI未来的一个应用的趋势，哦。我想也会带来一些这个换机的这个需求，哦，特别是高阶的这个机种呢，会增加，我想这个对应用应该是利的。所以Novatek呢，我们应该是乐观其成，应该是乐观其成。Could the management also share their view on the industry growth for major applications such as TV, PC, smartphone into 2024, and also your views on the recent discussions of AI PC and AI smartphone? Well, as we all know, in 2023, the whole year it's been going on with the inventory adjustment. So with the normalized inventory level across applications, I think the customer's order are expected to resume to normal level, while smartphone, TV, PC, auto shipments in 2024 will return to positive growth. Well, as for AI PC and or smartphone, I think it's still at the early stage. So the penetration of AI, particularly at the high end, will increase as the ecosystem improves, and that will bring a lot of opportunity of you know, the product replacement. So we are very happy to see this kind of trend moving forward. 谢谢管理层刚刚分享明年对这个主要的一些产业的看法，那不知道对，公司的这个主要的的产品线的话，有没有也可以分享一下对明年的一些成长的一个机会。 Indeed, there are some products we feel next year should have some good growth. For example, the first one, mobile phone's OLED driver, OLED driver IC, looks like 2024 should have good growth opportunity, like this foldable phone, or this RAM-less LTPS OLED, or this that needs RAM's LTPO OLED driver. I think these should all have good opportunities. Additionally, in TV's SoC here, next year there are new products, and new customers joining, should opportunity also not bad. Additionally, just mentioned in response to AI trend's specification's requirements, we expect next year PC NB should have some replacement demand, and high-tier proportion's increase, should for us also have good opportunity. Also that automotive part looks like next year should be able to have continuous growth, that ASIC looks like should opportunity also quite good, opportunity also quite good. That's all. Can you also share the view of your revenue growth drivers into 2024 after you already talked about some opportunities for the industry application? Well, Steve just mentioned that the growth drivers in 2024 for Novatek includes the following. And as for smartphone OLED DDIC, particularly from foldable phones and also RAM-less and also LTPS OLED LTPO with RAM. These are some of the products that we are seeing expecting a good opportunity for the smartphone. And as for the TV SoC, we are expecting to have new products and new customers joining in. And the high-end PC replacement demand on the back of AI trend will also be very helpful for the growth in 2024. And then also the automotive related products will see growth also. And of course, last but not the least, the increasing opportunity at the ASIC side also will contribute to our growth in 2024. ... 那，刚刚管理层有提到明年成长的一些，机会。那第一个提到的是手机 OLED 这一块，那不知道公司这边对，OLED，面板在手机还有其他的应用有一些渗透率的预估吗？或者对公司贡献的中长期的一个估计。 我想 OLED 的面板呢，在手机的渗透率啊，目前我们估计大概以今年来看，大概有42.5%，大概有42.5%。那这个比例呢，看起来未来还是会持续的增加，哦，还会持续的增加。至于平板、NB或甚至车用呢，使用这个 OLED 面板呢，目前看起来还在起步的一个阶段，当然了，预期呢，未来应该会逐步地成长，哦，预期未来会逐步地成长。那联咏来讲的话呢，我们对于各种应用呢，目前都有提供这个 solution，那未来我想应该可以随着这个市场需求的增加而成长，可以随着这个市场的需求增加而成长。 Wonder if you have any estimate on the penetration ratios of OLED panels into smartphones and other applications, and also provide some parity or guidance for related revenue contributions in the mid to long term? Well, the penetration at the smartphone side for OLED, I think we reach about 40+%, 42% around 42.5%, and will continue to increase, while the penetration at the other applications are like tablet, notebook, automotive, I think is still at the early stage, but will gradually rise as we move forward. And, for Novatek, we have provided solutions for various OLED applications, and revenue definitely will grow along with the market. 我们在上周看到一个，台湾主要的面板，也是主要的客户，友达宣布跟奈创合作，在 Micro LED，所以想请教公司对下一代显示器的看法与布局。 我想 Micro LED 呢，是一种新兴的一个显示技术，那由于呢，目前看起来这个成本比较高，售价比较贵，主要是使用在一些特殊用途，上面为主。那期待未来在 cost down 以后呢，能够扩大这个应用的领域，能够扩大应用领域。目前 Novatek 呢，有关这个 Micro LED，我们也有参与开发一些这个相关的产品，目前也有参与开发一些相关的产品。 Given AUO's partnership with PlayNitride on Micro LED, could you also provide your view of the next generation display product and your positioning? Well, you just mentioned about the Micro LED. This is one of the emerging display technologies. As you all know, the currently the cost for this kind of display is relatively higher, and it's mainly used for special applications. But we are seeing also there's a chance that it will expand to other applications. And Novatek is currently involved in developing related products. 那，在最近的法说会上，整个供应链和刚刚联咏都提到说，库存这边已经逐渐降低到正常的水准下。那想请教一下管理层对于明年的经营周，会有机会恢复到正常的季节性吗？ 由于刚刚跟大家报告了，由于2023年整个供应链的库存呢，已经调整得差不多了，所以我们预期明年呢，应该非常有机会恢复正常的这个季节性，应该会恢复正常的季节性。 Inventory levels in the supply chain across product are returning into normal levels, will your quarterly revenue during 2024 to be back to the normal seasonality? Well, as we just mentioned earlier, 2023 inventory adjustments pretty much done. So given the current visibility, there is a possibility the overall industry will return to the normal seasonality in 2024. 刚刚公司的这个PPT上面有显示，第三季季末的存货金额比上一季又下降了十几个点。想请问一下第三季末的存货天数是怎么样的？那也想问一下，是否可以给一下第四季末的库存金额或天数的趋势。 前三季的平均销货天数是74天，那相较于上半年平均销货天数80天，减少了6天。那我们预估第四季末的存货金额约与第三季是相当的。 What are your inventory days as of quarter three this year? And also could you provide the trend in terms of either inventory dollar or days into quarter four? Yeah, based on our CFO, Mr. Chou, he just mentioned that the inventory days for the first three quarters decreased to 74 days and down from 80 in the first half, and 92 for the first quarter. And inventory dollar at the end of fourth quarter will be at the similar level as third quarter. …最近这两个礼拜，我们看到您的晶，整个晶圆的供应链上这边，其中一家力晶提到营收在第三季已经落底，第四季开始有所回升，来自于记忆体跟渠道IC。那想请问一下，公司的产品下单情况也已经逐渐回升了吗？ 联营的库存呢，事实上我们已经调整到差不多告一段落。目前我们wafer的下单呢，都是恢复正常了，都已经恢复正常。 One of the foundry providers, PSMC, I mentioned its quarter revenue have reached the bottom in quarter three, and will improve sequentially in quarter four for both driver IC and memory. So are you, is Novatek increasing your foundry orders across product lines? Well, Novatek has largely completed our inventory adjustment, and we currently have resumed our normal wafer ordering at this moment. 那这边，另外一个就是说，刚刚公司提到了对 2024 年的一些产业跟成长，产品成长的看法，那可以也分享一下对，整个晶圆供需的看法，像 8 寸、12 寸的高压，还有 12 寸逻辑，那您这边多讲话的进展等等的一个方向，谢谢。 以目前来看呢，对2024年的这个需求呢，看来今年的供应呢，大体上应该是没有问题，大体上供应应该不会有问题。那么2024年呢，Novatek的需求呢，我们目前跟供应商呢，也密切洽谈当中，基本上呢，我们已经有所准备，基本上我们已经有所准备。 Would you also share your view on the foundry supply across major product lines and the progress on your foundry diversification? Based on the existing demand forecast that we see at this moment, the foundry supply in 2024 across all the nodes should be adequate. Should be adequate. And according to our customer needs, Novatek, we have already negotiated with our foundry suppliers for the allocation of 2024. So far, things are pretty much in place. So that's most of the questions regarding some of the outlook. So, Tony, please check if there's any other further questions online. I think that's pretty much about more on the outlook side. So now we will switch the gear more talk to some questions about the cost pricing, the margin trend. First question is your quarter, 您的第三季的毛利率，高于指引，那想请问一下，这个主要的原因是什么呢？ It's also... our CFO will answer the question, okay? 第三季的NRE收入是TWD 78 million，那存货跌价回升利益是TWD 302 million。我们第三季毛利率高于指引上限，那最主要刚才，我们副董事长有提过，主要是存货跌价回升，还有成本降低以及有利的汇率因素所贡献。Your quarter three gross margin exceeded the upper end of your guidance. And what are the major factors? Well, the gross margin Q3 was 42.25%, increased by 0.51 percentage point quarter-on-quarter. And as mentioned earlier, it exceeded the guidance. So this is mainly due to a combination of improved product mix and NRE income of TWD 78 million, and the reversal gain of TWD 202 million from inventory write-downs. 那，刚刚管理层给的第四季毛利率的指引中点较第三季结果略低，想请问一下原因为何？ 这样，主要是第三季我们有存货跌价的回冲，另外还有有利的汇率因素。那这个，我们预期第四季不会再有，预期第四季不会有，因为第四季的库存跟第三季是一样，接近。那第四季呢，这个产品的销售组合的改变呢，影响了其中的一部分，另外还有部分产品的售价呢，有一些这个调整，部分产品的售价调整，大概这三个因素，所以会比原，比这个第三季要略低。 Why is your quarter four gross margin guidance is the midpoint is lower than the quarter three? Well, the Gross Margin, as we have seen that the Gross Margin for Q3 benefited from reversal gain of inventory write-down and also favorable forex, whereas such benefits are not available in Q4. Then, we also seen that the product mix and ASP erosion in Q4 will also add some impact to our Q4 margins, and that's the reason why the Q4 margin is guiding lower than Q3. 那，在最近这个整个产业的这个downtrend中，公司整体的毛利率持续较稳，而且较竞争对手高，也比疫情前高。那想请问一下，有可以分享一下您对2024年毛利率的趋势的看法吗？ 我想，毛利率呢，一直是我们，我们一直努力追求的一个目标哦。Novatek呢，我们会持续推出新产品，另外优化产品的组合，特别是高阶的产品，以及这个成本的管控呢，来提升这个我们的这个毛利率。我想2024年呢，我们希望，还是会努力想办法来维持它。 Your gross margin has been higher than peers and also, lows before COVID-19. Will you maintain your gross margin 2024 at a similar level as 2023? Well, as maintaining competitive gross margin is one of Novatek's key targets or key goals. For Novatek, we will target to improve our gross margin via the combination of new product launch and product portfolio, better product portfolio, and particularly for the high end, and also the effective cost management. So based on the above, for 2024, we'll try our best to maintain the margin. 这还是关于售价这一方面。那想请问一下第四季，哪边的产品价格压力还是比较大？那过去几季管理层提到大尺寸驱动IC跟SoC的毛利率是相对持稳，这也还是继续吗？ The large-size Driver IC and SoC, relatively speaking, are more stable, relatively are more stable. In the fourth quarter, some products, although still have this, still have this selling price pressure, but it seems already gradually stabilizing, oh, already gradually stabilizing. As for pricing, which products are facing more pricing competitions into quarter four? Where pricing for large display driver and SoC remain stable into quarter four. The pricing for the large DDIC and the SOC currently remains relatively stable. As for some parts of our products in Q4, we do have some pricing pressure, but the trends have become more stabilized. 下一个问题是关于成本方面，那因为，整体这边的整体供应复苏比较有限，那想请问一下，在第四季或者甚至到明年上半年，主要的生产成本会持续下降吗？还是还有其他降低成本的方法？ Fourth quarter, some products' costs have declined, and we have already recorded it in the Q4 gross margin guidance. The cost reduction, I think the most important is still to rely on our own improvement in competitiveness, including product design technology, yield, etc., to improve this cost competitiveness. Besides this cost down, besides the materials, I think our own design technology and yield are still the key to cost improvement. As for cost, given limited order recovery as your supplier, where your major manufacturing costs, such as foundry and the packaging, further decrease in quarter four and even early part next year. How about other efforts on the cost reduction? As for our Q4, there is some cost reduction in Q4, and we have already factored it into the gross margin guidance for our Q4. More importantly, I think the best way to maintain our cost competitiveness is by enhancing our overall competitiveness by design capability and also improving the yield rate. So if there's any further questions on margins and... 我先主要就是下面是关于竞争。 OK, then we can proceed with that. OK. OK, then we have some questions about competitions. 那请问一下，这个，您刚才提到这个OLED这一块的outlook，那想请问一下，这个主要的像是供应商台积电、中芯开出28 High V的这个产能的进度跟情景为何？那也看到陆续多家厂商晶圆厂明年开出OLED driver的产能后，对市场或公司的影响是什么？ 我想这个首先具有竞争力或者先进制程的这个晶圆厂呢，Novatek我们都会来采用。我们在这个先进制程上面呢，我们会持续地往前，发挥这个竞争的优势。除了28奈米以外呢，事实上我们也会评估进入这个22奈米高压的这个制程，... 当然除了这个是，制程以外，process以外呢，我想设计，产品设计的也是这个其中的这个关键哦，也是其中的关键。 Now, let's shift question to the competitors. Could you share also with us about the capacity timetable and the bottleneck for TSMC and make 28 nanometer on high voltage with new OLED foundry capacity into next year? Will this cause impact on the industry as well as your company? Yes, for Novatek, we will continue to collaborate with foundry partners. They can provide us competitive and also advanced process nodes. As long as they can provide us these, we'll continue to collaborate with them. And also on the advanced nodes side, we'll continue to move forward to adopt more advanced nodes, to help us stay competitive, such as a 22nm high-voltage process for our driver IC. And in addition to some of these process nodes, I think product design also plays a major role in improving our competitiveness. So it all works together. 那，下个问题是关于这个，请管理层可以分享一下，这个对尤其是大陆驱动IC竞争对手，对公司在大尺寸驱动IC，手机像TDDI，还有OLED这里的影响。 我想对于一些低阶的产品呢，确实会有一些竞争的这个影响哦。Novatek呢，我想我们只有透过提升设计的技能够力，开发具价值与差异化的产品了。第二呢，我们希望说能够提供多元的应用和这个高阶的产品呢，来这个提升这个，竞争的层次。另外还有一个就是优化的产品配套组合呢，来提供客户具竞争力的这个解决方案。也就是呢，我们希望能够透过，提供 driver 加 T-con 加 power，或者是用什么产品的组合呢，来提供给客户这个配套的这个组合，来提升我们在这上面的这个竞争力。 Could also management give some comments on the impact from the competitors, particularly from China, on the large size driver, LDDI and OLED driver? Yes, regarding the competition, as for on the low end side, from the low end product, yes, we do see some impact, due to the competition. But for Novatek, we'll continue to improve our design capability and also try to introduce differentiated products, and also provide broader applications, particularly on the for the high end, and try to offer the total solutions for customer like driver plus timing controller, plus power management IC, so that each solution as a total solution, also, in turn, help our customers to maintain their competitiveness. 那想再请教一下，公司在拓展这个其他地区，像美国、日本、韩国客户的一些，进展，那也根据公司的网站，最近有成立美国办公室，请问一下，这个主要的考量是什么？ I want to continue to expand the customer base, which is a goal that Novatek has always been striving for. Currently, everything is proceeding smoothly according to plan. As for Novatek, we recently established an office in the United States, mainly to respond to market demands, to provide nearby services to US customers, to provide nearby services to US customers. Could you also provide some updates or progress on your customers in Japan, Korea, even in the States, and also the purpose for your newly set up U.S. office? Well, expanding our customer base is one of our key targets, and we're continuing to move on with that target, and currently the progress has been on schedule. And Novatek recently did set up an office in U.S., and the purpose is to meet the market needs, and also to provide on-site service to our customers. 那么，最近这一两年，大家也讨论比较多，这个供应链的分散跟去中国，那不知道公司可以提一下，目前在大陆的，晶圆或封测的供应商，对你的比重是怎么样的，有多长期的目标吗？ 在晶圆和这个封测的方面呢，目前联咏呢，我们已经有使用大陆的供应商，而且已经顺利地配合一段时间。那我们这个因为为了因应客户对于稳定还有具韧性的供应链的这个需求呢，我们一直都有稳健的这个规划。至于那个比重的目标呢，我想重点还是配合客户的需求来做这个安排。 Could you also provide the ratios in terms of the sourcing of foundry and the packaging from China, any long- mid to long-term targets? ... Regarding the foundry and the packaging testing. Well, Novatek has been collaborating smoothly with our foundry and back-end partners in China for a period of time now. Our goal is to meet our customers' needs for stable, resilient supply chain. And so, based on our customer needs, Novatek will plan accordingly. Is there any further questions? 因为刚刚管理层有比较提到说2024年这个成长的机会在ASIC，那我想整个产业对于这个相关的公司的前景是很看好IP或IC ASIC，那管理层可以分享一下你在NRE或者ASIC这边的有些机会，跟展望吗？谢谢。 ASIC是我们已经持续进行了一段时间的这个业务，那这个基本上比较难去predict，说NRE有多少在一年里面，那基本上我们是朝这个方向在做。 Management mention about ASIC will be one of your growth drivers into 2024. Just wonder if you can provide more details on some project or NRE income, regard with your ASIC project? Well, we did mention about the ASIC business is an opportunity and this is an ongoing project, but it's very difficult to predict the NRE. We do see it as an opportunity for us. 那我们看到其他有一些，关于一些财务的数字这边，那，想请问一下，管理层这边可以跟我们分享一下，现在对2024年有一个初步营业费用会在营收的比例的趋势，跟2023年相比怎么样？那还有所得税率，2024年跟2023年相比会是如何？ 我们以第四季预估的营业利率去推估，2023年的全年的营业费用率大概会落在17.6%-17.8%左右，那2024年相关的营业费用金额预估变化是不大的，那但是营业费用率会随着营收波动而变化。另外，我们预估2023年的所得税率大概是18%左右，那2024年预估也是与2023年是相当的。 Could management provide some very preliminary guidance for your OpEx ratio into 2024 compared with 2023, as well as for your tax rate next year? Based upon the Q4 guidance, OpEx ratio for 2023 will be in the range of 17.6%-17.8%. Looking into 2024, OpEx amount will be similar to 2023, while OpEx ratio is subjected to the revenue side. The tax rate in 2023 will be around 18% and at a similar level in 2024. 那，公司刚刚的这个presentation中有提到业外的这个收入的部分在第三季，那请问一下，第三季业外的项目主要是来自于哪些，项目？ 我们的第三季的营业外收入是6.23亿元哦，那最主要还是利息收入，有2.8亿元，以及汇兑利益有3.3亿元所贡献的。 What are major items for your non-operating income in quarter three this year? Well, our CFO just mentioned that the non-operating income has come down to around TWD 623 million in third quarter, and this is largely from interest income of TWD 280 million, and then a forex gain of TWD 330 million. 那公司是IT设计公司，也是，人才这里最重要的资产。那想问一下，可以分享一下公司最近这个员工的年流动率是怎么样的？那跟之前或者同业相比，是怎么样？那，比较好或者比较差的主要因素是什么？ In the past two or three years, Novatek's employee turnover rate is about 5%-6% per year, about 5%-6% per year. Compared to the industry, it should be relatively low, should be relatively low. The main factors are that Novatek, we are committed to providing employees with high-quality salaries and benefits, and a good working environment. For example, we give colleagues childcare allowances, also hoping to help them take care of their children, that's one of them, oh. I think the main reasons are like that. What are your recent employee turnover ratios? How about this compare with your previous performance and the peers, and what are the major factors? The employment turnover rate for the past 2-3 years has been around 5%-6%, and I think this is relatively lower than our previous years and also compared to our peers. The reason why we've been able to maintain the lower turnover rate, I think it's mainly because we provided a relatively better package and incentives for our employees. For example, we do have some benefits to encourage our employees to increase their birth rate and provide them a special package so that, you know, like incentives for them on a monthly basis. I think we have gone through most of the questions. But Tony, please check if there is any further questions that we have not covered. As you mentioned about the OLED driver will be one of your key growth drivers, could you provide your view on the OLED pricing competition into next year? Well, looking at the OLED for 2024, we do expect there will be some competition in next year. But for Novatek, we'll continue to enhance our product and with differentiated product and value-added product. For example, foldable phone and then OLED TDDI, some of these products that will really enhance our competitiveness. I think we have covered most of the questions, and it's about time. So, thank you all for joining in, and wish you all the best. 谢谢，谢谢各位。