Presentation materials are available for download at Nanya Technology's website at www.nanya.com. As usual, we would like to remind everyone that today's discussions may contain forward-looking statements that are subject to significant risks and uncertainties, which could cause actual results to differ materially from those contained in the forward-looking statements. Please refer to the Safe Harbor notice that appears in our presentation materials. Now, I would like to turn the call over to Nanya Technology's president, Dr. Pei-Ing Lee, for the.
common that even the market is worse than expectation. The global economic issues, many concerns have come. Both the unit price and shipment has went down quite substantially. As a result, Nanya's financial performance worse than expectation. Now let me start today's presentation. In my report to you, I'll start with Q3 revenue and result, followed by CapEx and shipment, market outlook, and business review and outlook as usual. First, our Q3 revenue and result. Our Q3 from Q2, and I will explain the reasoning behind. Our gross profit come down to TWD 3.597 billion, at 32.6% versus TWD 7.9 billion at 8.3% versus TWD 5.364 billion at 29.8%.
It comes to our operating income, 2.24 billion TWD versus 1.741 billion TWD. Our net income for Q3 comes to 2.64 billion TWD at 24% net margin, versus 6.575 billion TWD at 36.5% last quarter. Earnings per share for Q3 comes to TWD 0.85 per share versus TWD 2.12 per share last quarter. Our book value comes to TWD 59.29 per share versus TWD 57.4 per share last quarter. For quarterly result comparison of Q-to-Q and year-to-year, revenue come down by 38.9% Q-to-Q. Shipment decreased by low 20%, and ASPs also decreased by low 20%. Exchange rate increased by low single digit%. Okay.
Compared to last year, revenue down by 53.8%, and shipment also decreased by mid-30s%, and ASP decreased by mid-30s%. For result comparison, our net sale, 11.022 billion came down by 38.9%. The reasoning is on the right-hand side. Shipment decreased by low-20s%. ASP also decreased by low-20s%, with exchange rate positive favoring low single-digit %. Gross profit comes to TWD 3.57 billion versus Q2 of TWD 7.958 billion. The gross profit decreased by TWD 4.361 million, TWD 4.361 billion, mainly due to shipment ASP decrease as reported just now. Our operating expense, TWD 2.677 billion, versus Q2, TWD 2.594 billion. It's pretty stable, okay?
Operating income, TWD 920 million versus TWD 5.364 billion. The operating income decreased due to the gross profit decrease. The net income comes to TWD 2.64 billion versus the Q2, TWD 6.575 billion. The net income decreased by TWD 3.935 billion as a result from operating income decreased by TWD 4.44 billion. Exchange rate favorable TWD 320 million and interest rate income also favorable by TWD 246 million. Our quarterly financial highlight trend has indicated every quarter that this past quarter, Q3, has a substantial decline both in revenue wise, in net profit wise, also in gross margin, as well as our net operating margin. Okay?
As indicated in this chart. 2.057 billion. It's also in the normal range for the year. Our Q4 situation. Our beginning balance for Q3 is TWD 94.973 billion. With the cash from operating activity, positive TWD 2.652 billion and CapEx at TWD 7.517 billion. Also financial activity, this is mostly coming from the dividend payout at TWD 7.183 billion cash out. The end balance for Q3 is TWD 82.925 billion. Looking on the right-hand side, our Q1 to Q3 cash flow situation. In the beginning of this year, our cash situation is about TWD 80.7 billion.
Over the past three quarters, our cash from operating activity come in about TWD 20.296 billion, with CapEx 14.061 billion TWD. Financial activity are mostly due to dividend payout at TWD 4.011 billion. Dividend payout for this year is TWD 11.47 billion as a footnote on the left-hand side, left-hand bottom, the footnote. At the end of Q3, our cash flow situation is coming to TWD 82.925 billion. Now it comes to CapEx and bit shipment. Our CapEx and bit shipment on the left-hand side is our CapEx situation. Our original CapEx is, as announced before, it's TWD 28.4 billion.
Now we targeting for this year, the CapEx will come to TWD 22 billion. For Q3, the CapEx is around TWD 27.5 billion as reported just now. The bit shipment on the right-hand side, we are targeting this year, bit shipment will be down to -20%. This is due to unfavorable market situation as I just reported to you. A little bit more detail on CapEx forecast. These two charts here that you see on the left-hand side is a chart describing this year, 2022, our CapEx. Originally, we are expecting TWD 28.4 billion, with two colors on the left-hand side chart. With the color on the bottom is wafer production, wafer CapEx, and the rest of CapEx is only darker color.
Now with the update to you that for this year, 2022, is we are expecting total CapEx comes to TWD 22 billion with substantial reduction in wafer CapEx, wafer equipment CapEx, reduced by approximately 40%. For next year is on the right-hand side. Here we have a comparison between this year and next year. We are expecting the total CapEx is about same at TWD 22 billion. However, wafer equipment CapEx will be further reduced by 20% year-over-year. Okay. The CapEx plan for the right-hand side of 2023 is still subject to full directors approval. For market outlook, we're seeing potential global macroeconomic recession triggered by high inflation, interest rate hikes, Russia-Ukraine conflict, and China COVID control measures.
As a result, we're seeing electronic market demand weaker than expectation. However, we're seeing some customer inventory gradually digesting. For the supply side, we're seeing DRAM supplier inventory may increase in Q3, although that, the Q3 financial report still, to be reported, in a couple of days. Some vendor took actions on CapEx reduction, which potentially will slow down, supply growth in the upcoming years. Demand side, we're seeing server market data center construction prolonged and demand pushed back due to rising energy prices and global economic slowdown. For the mobile market, we're seeing average DRAM content increase. However, smartphone annual shipment may turn negative growth for the year. Due to high inflation and also China market weakness, we're seeing high-end smartphone remain relatively healthy. Overall, the smartphone shipment decrease.
For PC market, we're seeing sluggish PC demand and annual shipment likely to decline, widen. For high-end PC, we're seeing it remain relatively healthy. Consumer market, inflation and rising interest rate reducing consumer purchasing power. For TV, set-top box, storage, demand becoming weak. However, networking and automotive DRAM demand stabilizing. For our business review and outlook, finance side for Q3, our EPS is at $0.85 per share. Accumulatively, Q1 to Q3, Nanya EPS comes to $5.009 per share. From operation side, flexible approach in adjusting our product mix and CapEx to better respond to weaker market demand. Our first generation, 10nm-class product is in a small volume production, is currently under customer sample stage. Nanya Technology emission reduction goal also been validated by Science Based Targets initiative.
Macro uncertainty, that's including Ukraine conflict and China market stress and the inflation and interest rate impact to the market. With that, conclude my report to you. Thank you. Let's start our question and answer.
Yes. Thank you very much, Dr. Lee. Ladies and gentlemen, before we begin the Q&A session, I would like to remind everyone to limit your questions to two at a time to allow all participants an opportunity to ask questions. We will begin taking questions from dial-ins first. For webcast participants, please message your questions with your name and company name to Nanya operator in the chat box. Now, for dial-in participants, please press zero one on your keypad if you would like to ask questions. To cancel your questions, please press zero two. As a reminder, it is greatly appreciated that you turn off the speakerphone mode of your device to prevent possible echo effect.
We thank you for your cooperation. Now, for dial-in participants, please press zero one on your keypad if you would like to ask questions. Thank you.
First one to ask questions, JJ Park from JP Morgan. The line is open to you now.
Okay. Dr. Lee, thanks for taking my question. It's hard to limit to the two questions. Looking at the Q3 results, ASP decline looks much severer than the mainstream DRAM price decline. Is it mainly due to the weaker demand or if any, like, further price cut for the consumer electronics, the DRAM kind of niche product? And then your guidance for the-
Full-year bit shipment growth down 20%. Are you looking at the further shipment decline in the Q4? Along with the Q4 shipment guidance, given rising inventory at Nanya Technology, can you expect the momentum for bit shipment growth in 2023?
Okay. Basically, JJ, let me rephrase your question to see if this is what you ask. The first question is, Nanya Q3 ASP decline more than the market average. The second question regarding to Q4, what Nanya expect in ASP situation and shipment situation. Third question is, 2023 market situation.
Yeah, that's correct. Thank you.
Okay. The first question on ASP decline that Nanya situation is higher than the market average. Basically, Nanya has a product portfolio in all kind of different products, including the DDR3, DDR4 and low power D4. From the percentage of shipment point of view, Nanya is more into consumer range. Okay? Also into low density, including 4 gigabit, 2 gigabit, and 1 gigabit or even lower density. For those low density, likely that you will be seeing in a total percentage equivalent weighting is heavier than the other. For instance, the 1 gigabit declining by $0.01, when it comes to 8 gigabit, have to multiply by 8 times. Percentage-wise it's heavier in terms of low density. Okay?
I would say, in general speaking, in each of the sector, that our percentage of decline is relatively similar to the market situation, more or less. Okay? Q4 situation, I'm seeing that at least from a Nanya point of view, I'm seeing that, our ASP decline percentage may be smaller. Okay? This is the current outlook. Okay? However, Q4 still have three months to go. Okay? We still have to deal with hundreds of purchasing order and customer negotiation. On the other hand, though, shipment-wise for Q4, Nanya is expecting our shipment will be somehow slightly better than Q3. Mostly because Q3 is already very bad in certain region of the market. Okay?
Particularly we're seeing that the overall consumer market in China is very bad as of today. We believe that it couldn't be worse than today. Okay? It could be moving from positive side, particularly when the government started to have some stimulation package and purchasing activity happening in China. We're seeing it's going to be becoming better than today. Okay? That answer your question one and question two. As of 2023, this is actually a more complicated question because overall speaking, that you're seeing the supply and demand coming from two sides, both from the supply side and the demand side. In the supply side, we're seeing that the supplier inventory may be increasing in Q3. Okay?
However, supplier is taking action in cutting their CapEx and cutting their future, slowing down their future growth. Okay? This will be balanced by market demand situation. As of today, market demand situation is basically impacted by few factors as I reported to you. The macroeconomic, including the Ukraine and Russian conflict, including global inflation issue, interest rate hiking issue, including COVID control in China issue. Although this basically from a supplier point of view, it is this uncontrollable factor, it has to be adjusted by the external activities. See if the China COVID control situation getting better, is stimulus package getting better, then we will see some recovery. Okay?
Interest rates really happen, how is that going to be impacted on upcoming few quarter? Inflation is already pretty bad, and likely that will couldn't be worse than today. Okay. However, the regional conflict between two different country, those is still continue to be a pessimistic outlook for the future. We don't know when that that's going to be improved. Still, we still have to keep on watching all those negative factor outcome from the next few quarters.
Thank you.
You're welcome. JJ.
Ladies and gentlemen, if you would like to ask questions, please press zero one on your telephone keypad. Now, the line is open to Simon Woo from Bank of America. Go ahead, please.
Thank you, Dr. Lee. Number one question is, would you share your OEM customers' memory chip inventory status? You know, they are not really actively purchasing the chips these days, but they may suggest that they are very potentially normalized chip inventory levels. So when which quarter or which month do you think your customers for smartphone the PC or even hyperscalers or all the OEMs can say normalize the memory to inventory internally? That's the first question. Thank you.
As I indicated that, some of the customer already seeing their inventory gradually decline, but this is not the overall situation. It is a portion of the customer already had inventory adjusted. Also, as a result of the price decline, so many customer already took actions in terms of reducing their inventory. That's already happened. Okay? I'm seeing that the inventory side from the customer side could be getting better. Okay? However, from a supplier side, may be increasing from Q2 to Q3. But as I just also reported, in the beginning of the Q2, really the inventory level from a supplier side is relatively healthy. As of the end of Q3, I believe even the inventory was increased but still should be in a reasonable range.
The situation should continue to be observed and watched out for carefully at the end of Q4.
Yeah. Yeah. Thank you, sir. Another question is, looking at your, here the income statement, the revenue down more than 50% year-on-year. Sorry to say this, the OP margin 8.3%. If the DRAM price remains weaker and weaker for the rest of this year, how are you gonna manage maybe potentially negative margin or operating loss? Maybe one easier way is, yes, you already mentioned CapEx cuts, but how about your production process? How to manage all the fab operation or cash flow risk if your operating income becomes negative? Sorry to ask this, but hopefully we can hear your strategy. Thank you, sir.
Our revenue is down by 38.9%. Okay? It's not 50% hopefully.
Year-over-year basis.
Yeah. Yeah. Okay. So we don't have any plan to have any production cut. Okay? That's not in our plan. Well, our strategy is to adjust our product portfolio. Okay? We have many different product, different customer, different sectors. We'll make adjustment in between. Okay? Also now, we will continue to improve our R&D in the process development and product development. Okay? So far we don't have any plans for production cut. We don't see that we have an immediate need to consider any of those production cut matters. Okay? We already actually shipment is decreased and last year and the year before our shipment is already flat.
From the output point of view, Nanya is not an issue in comparison to the market size. Our market share is small and our impact to the market balance is also relatively small.
Yeah. That means that you are expecting maybe DRAM price recovery, maybe in maybe two quarters or maybe.
Market survey, analyst point of view, their reports saying that the market could be recovering in Q2 next year or second half next year. All those potentially are possible, okay? It could come sooner, suppose those negative situation that I just report to you become better sooner. It could become even worse than those ratings if those negative factors that I just described to you prolong even longer. Okay? That's the situation needs to be watched very carefully about those uncontrollable factors beyond what we can do. I cannot give you a very precise point on when the market will be recovering.
Yeah. Sure. That's fair enough, sir. Thank you very much, Dr. Lee.
You're welcome, Simon.
Next one to ask questions is Jeff O'Wyler from Macquarie. The line is open now.
Yeah. Hi, Dr. Lee. Thanks for your time today. First question from me, can you give us an update on capacity and for your 10nm-class capacity? Where does CapEx get you as a % this year and where's the additional TWD 20-20 billion plus get you in terms of what % of your capacity is 10nm-class ready by next year? Thank you.
Our current capacity is around 65K output per month. That's not been changed much. Our CapEx is mostly to prepare our new fab as well as prepare our next generation process and product. That is, namely that's for 1A and 1B preparation. With the beginning of 1A and 1B, we don't see our output will be increasing substantially. Due to the production adjustment, everything that equipment down, equipment up situation and new equipment contribution likely will not add too much on the output. That situation may continue to most of the next year. Likely 2024, we will see some marginal output increasing as a result.
Okay. Follow-up questions. I'd say, what % of your capacity, sir how many K capacity can produce one A, say by end of this year or end of next year?
Today we are expecting, by the end of this year, between 5K-8K of 1A capacity. Hopefully by the end of next year, that capacity will be slightly increased and move to 1B generation.
Okay, great. Thank you very much.
You're welcome.
Ladies and gentlemen, we are now in Q&A session. For dialing participants, if you would like to ask questions, please press zero one on your keypad. Thank you. Next one to ask question, c . Line is open now.
Hello, Julie, you-
Operator.
Okay, you're on the line now.
Thank you.
Okay.
Thank you, operator. This is Julie from UBS, actually. Dr. Lee, thank you.
Sorry about that.
Dr. Lee, many of the technology related question has been asked by analysts. Actually, my question is quite simple. Given your earlier statement that there is a possibility of global recession ahead of us, how likely will Nanya be running at loss as, say, previous cycle we have seen, a loss happening? Or do you think
A very good question. Yes, I just reported that overall competitiveness and overall our ability to serve our customer response to market situation, due to our product portfolio, our market position, our basically technical service, everything. The situation of Nanya today is quite improved from, say, 10 years ago. Okay? Or even as short as 7 years ago. On the other hand, though, if you look at the overall Nanya position in the market. Likely there are going to be a couple of DRAM major supplier in a very similar situation. As the overall supplier side situation is that all the supplier is now very heavily depends on their DRAM business, okay? All of them, okay?
As a result, all the supplier today is doing most of their say CapEx adjustment to what the market growth really need, okay. This situation basically will gradually stabilize the market sooner or later, okay. I don't see Nanya situation will be as bad as 10 years ago, okay. Although we still cannot prevent Nanya from potentially getting into losing money situation instead of continuously profit-making for the last 3 years.
Understand. Dr. Lee, just a follow-up on that. From the current data that you have on hand and visibility, which quarter likely to be your trough quarter in terms of the next couple quarter ahead? What's your view on that?
Okay. There may be two potential direction to discuss on this matter. One is the ASP, the other one is the shipment, okay? Personally, I think the trough quarter was Q3 this year for the shipment, okay? Likely, the shipment for Q4 may improve from Q3 from a shipment point of view. However, ASP may continue to come down for Q4, okay? As of ASP, as it continue to go down on Q1 next year, still yet to be seen, okay? Still yet to be seen. That is what I see as of today to answer your question regarding the trough of Nanya business.
Okay. That's very helpful. Thank you, Dr. Lee.
Ladies and gentlemen, we are still in dial-in Q&A session. If you would like to ask questions, please press zero one on your keypad. Thank you. Next one to ask question, JJ Park from JP Morgan. Go ahead please.
Okay, Dr. Lee. Just quick follow-up question. I mean, look at the margin trend this quarter compared to the previous trough quarter back in Q4 2000, also Q4 2019. I think the current margin already below the previous trough level. I think you're guiding that the margin will continue decline until Q4 or possibly Q1 the next year. I'm just wondering, ASP decline is not. It not seems to be severe than the previous downturn cycle, so volume decline seems to be much severe than the previous downturn cycle. What's the current problem?
Is mainly driven by the macro and weakened demand, or is there any sentiment issue in the supply chain, since the price will continue to decline, so they do not buy any DRAM, just hold their purchasing?
I would say... You're talking about margin-wise, your question is potentially going to be worse than the 2000 or 2019 margin-wise. Based on the ASP outlook, I would say there's a potential of worse in the margin, okay? From the market sector point of view, particularly, in terms of region of the market, I see that the China market plays a key factor, okay? Even though Nanya's shipment is around 20-30% shipment to Chinese customer directly. However, indirectly, many of our customer, like, international customer, like, those customer in U.S.A. or in Europe or even in Japan, okay? They have most of their production, okay, is in China.
Indirectly, we are also hurt by those also indirect customer. Or because of customer have their manufacturing in China. Okay? We also seen that other region customer, they also have their Chinese customer as well. Okay? Basically, they also impact by their Chinese customer. As a result, Nanya also impact in this area because our customer had their very end customer in China also impact.
Okay, thank you.
Next one we have is Simon Woo from Bank of America. Line is open to you now.
Yeah. Thank you very much. This past Friday, yes, the U.S. government announced the new policies on the China subsidies. Yes, Nanya Tech does not have any direct operation in China. But Dr. Lee, don't you think that this can be the positive development for Nanya Tech itself if the local domestic chipmakers cannot actively manufacture more advanced memory chips with limited access to the new equipment, new chip design process, et cetera. You have already observed China's efforts, right? For the new chip development, for the DRAM or NAND flash. With the U.S. government's very obvious restriction, do you think that it can be the positive thing for the memory chip industry and also the Nanya Tech itself?
Thank you, sir.
Simon Woo, I think from this issue, this topic as regards, first of all, those U.S. new restrictions to Chinese companies, the details, we still need to do quite a bit of study on those details. Okay? The outcome still needs to be studied. However, I can give you a general comment, like following. Basically, the restrictions are in two different kinds. One is a restriction to the DRAM makers, okay? In this regard, the DRAM maker restriction, of course it will favor market stability and also helping the market recovery. Okay? Now, that's an impact not just specific to Nanya, but also to all the suppliers. The second is a restriction to actually our customers. Okay? DRAM customers. Okay?
Basically in that regard, I would say that any restriction to the customer, shipment to the customer, it's going to be in a way negative impact to the business. Okay? Again, that impact also to all the suppliers. Okay? U.S. restriction is actually covering both the customer side and the DRAM market maker side, and which Nanya will have to do a lot more detailed study to understand how the detailed impact will be.
Yeah, great points there, Dr. Lee. Sorry to say this, but we don't see any meaningful OEM customers names under the U.S. government unverified release. If you are talking about previously known Entity List, yes. You know, Huawei, ZTE, et cetera. You know, this time, the U.S. government public statement indicated only the 31 companies, which are mostly the chipmakers, the equipment vendors. They don't purchase actively the chips.
There are some recently just seeing that 28 more companies were restricted. Okay? We still have to study those 28 companies been restricted.
Oh, I see. Okay. Thank you, sir.
Yeah, please begin.
Thank you, Anji. Before we begin the webcast Q&A session, I would like to remind everyone that our telecom dialing service will end this quarter. We will only use the Cisco Meeting Server system.
Sure.
For future online earnings conference. For the webcast Q&A session, we will start with verbal questions and followed by questions from instant message. I will also remind everyone to change your display name with your name and company name in English version. Also to limit your questions to two at a time to allow all participants an opportunity to ask questions. Now please raise your hand before asking questions. You may also message your questions with your name and company name to Nanya operator in chat box. As a reminder, please turn on your microphone before speaking.
Thank you for your cooperation. Here we have the first question. We have first question comes from Kaylene Liew of CGI. Your line is open now, please go ahead to ask your question. Hello, Kay Lil. Mr. Lil. Your line is open now. You may ask question now.
We don't think we can hear you. We will move on to the next question from SinoPac, Stanley. Stanley, your line is open now. You may ask verbally. You start your question now. Hello, Stanley. Yeah. Please unmute yourself, Stanley.
Hello, Stanley. Please unmute your microphone.
Okay. Thanks. We still waiting for investor figuring out how to unmute their microphone. We may move on to the instant message question.
Okay.
The first question comes from Aviva Investors, Joyce. Please state again.
Okay. Joyce, your question is, do you see higher interest rate globally as a challenge for your business? The answer is, we don't see high interest rate as a challenge. Okay? High interest rate may slow down macroeconomic growth, but that will take time to make impact. Okay? Now, high interest rate, from the financial operation point of view, Nanya is now cash positive. So we don't have any financial loan, okay, interest bearing loan, so it's not an issue for Nanya from our business operation side. Okay? Your second question is the strong U.S. dollar positive or negative for your business? Strong U.S. Dollar actually currently is helping Nanya in terms of our overall operation. Your number three question is, do you see European energy crisis as a problem for your business?
Of course, European energy crisis has impact on general consumer side. However, from Nanya Europe operation, currently still remain healthy. It is actually as healthy as before the Ukraine and Russian conflict. Okay. At this time, we don't see European energy crisis impact Nanya business. Number four, do you expect your company earnings in July to December 2022, calendar year Q3 and Q4 to be lower or higher than July to December 2021? This I don't remember July to December. Likely 2022 will be worse than 2021. And by how much, this actually 2021 July to December is on a peak. That the
From the earnings and margin point of view, likely, it's going to be a pretty substantial difference. Okay. Now the next question is from Richa Shah from Fubon Securities. Your first question from you, Richa, is Q4 2022 shipment up or down? As I just reported just now that, we are expecting Q4 shipment has a good opportunity of going up. Okay. Your second question is, whether full SKU, utilization is planning to be reduced. We don't have any plan to reduce our utilization. The next question is from YLI Capital, Mr. Chu. Okay. You say expected every quarter, DRAM, contract and the stock price trend, when will be the ASP cost, okay?
In this regard, we're seeing the stock market price being stabilized, okay? It's been stabilized for the last quarter, okay? From the contract pricing point of view, last quarter, the contract price came down, and likely Q4 for the contract price will come down again. However, Nanya specifically, we like to work hard for the price decline margin to narrow down, okay? We are actually expecting the price decline margin to come smaller. On the next question, okay, is from the SinoPac, Stanley. Your question is Nanya 1A and 1B, the production schedule and implementation schedule. Is the customer will reduce their demand to introduce Nanya's 1A and 1B. Okay?
I just reported that our 1A situation is now in customer sample. 1B is now in product piloting. We're seeing the customer are actually pretty proactive and pretty encouraging us to continue to move on our 1A and 1B product. Your next question is 2023, 1A and 1B, the production ratio. I just reported just now for the Macquarie question that we will gradually introduce 1A 1B. However, the production ratio will not be impacting Nanya output significantly in 2023, and likely will have some impact on 2024. Your second question is our peak growth.
As I say that, our 2022 and also 2021 and 2020, our peak growth is not positive, okay? As a matter of fact, it's 2 flat year followed by a down year for peak growth in 2022. In 2023, we've seen that it couldn't be worse than that, okay? Likely 2023 will be slightly improved from 2022. Your next question is considering our supplier is gradually retreating from the legacy specialty market. We're seeing that the Chinese supplier is now also moving to DDR3. Is that going to impact Nanya situation? Will price competition be heavier, and what is Nanya's position on that?
Okay. Your observation of that is true that the major supplier is gradually getting out with Chinese suppliers coming in. Okay. However, we're seeing the major supplier still have far more competitive in terms of their volume and price competitive point of view compared to Chinese supplier. Okay. We're still seeing that the specialty market will be remaining to less supplier and still going to be a very suitable market for Nanya. Okay. We don't expect that the price competition will be as keen as the general market. We continue to expect this market still going to be better.
In terms of this market wise, Nanya will continue to improve our market flexibility by introducing more market product portfolios by introducing into more customer base adding our flexibility adding our competitiveness. Okay. Okay, that basically all the question from the web, right?
Thank you. Thank you for your questions. We may close the conference call today. Thank you. That concludes our conference call today. Please be advised that the replay of the conference will be accessible within three hours from now, which will be available through Nanya Technology's website, www.nanya.com. We hope you will join us again next quarter and coming quarters. Thank you for your participation and have a wonderful day. You may disconnect now.
Thank you and goodbye.