各位投资人、分析师、投资界的朋友以及媒体，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2022年第三季的法人说明会，很高兴能再一次跟各位在线上见面。今天的法说会仍会同时用中英文进行。今天会议整个议程如下：首先会由我这边用英文报告联咏2022年第三季的结果，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，同时也报告第四季的展望。最后会开放给各位Q&A的时间，各位可以透过线上把您的问题先上传给我们，我们IR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、周思诚财务长，还有我本人用中文来回答各位的问题，然后再翻译成英文。Dear investors, analysts and media, good afternoon.
Welcome to Novatek 2022 third quarter online investor conference. My name is David Chen, the vice president and company spokesperson. I will be the host for today's conference. We are so happy to see you all again online. 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's third quarter results in English. After that, our Vice Chairman, Mr. Steve Wang, will provide more details on our Q3 results and Q4 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 Tseng, will process and read all the investors' questions one at a time, both in Chinese and English.
Our Vice Chairman, Mr. Steve Wang, and CFO Mr. Chou, and myself will answer all the questions in Chinese and will be translated into English later on. As usual, please take a look at our safe harbor notice. Let's start with our 2022 Q3 financial highlights. Our net sales in Q3 was TWD 19.56 billion, down QoQ 37.82% from TWD 31.46 billion, YoY down 48.98% from TWD 38.35 billion in Q3 2021. Net gross profit in Q3 was TWD 8.3 billion, down 44.31% from last quarter TWD 14.98 billion, and down 58.11% from TWD 19.92 billion in Q3 2021. Our gross margin in Q3 was 42.65%, down 4.97 percentage point QoQ from 47.62%, YoY down 9.29 percentage point from 51.94%. Our operating expense in Q3 was TWD 4.1 billion, down 18.18% QoQ from TWD 5 billion, and YoY down 14.73% from TWD 4.8 billion. Q3 operating income was TWD 4.26 billion, down QoQ 57.38% from TWD 10 billion, YoY down 71.86% from TWD 15.12 billion.
Our OP margin in Q3 was 21.75%, down 9.99 percentage point QoQ from 31.74%, YoY down 17.68 percentage point from 39.43%. Q3 net income was TWD 4.31 billion, down QoQ 49.27% from TWD 8.5 billion YoY, down 64.92% from TWD 12.27 billion. Overall Q3 EPS was TWD 7.07 versus last quarter, TWD 13.95, a QoQ decrease of TWD 6.88. Last year Q3 EPS was TWD 20.17, a YoY decrease of TWD 13.1. Please take a look at our Q3 consolidated income statement. Next, please take a look at our first three quarters consolidated income statement. Our first three quarters net sales was TWD 87.54 billion, down 11.42% YoY from TWD 98.82 billion. First three quarters gross profit was TWD 41.85 billion, down 13.87% YoY from TWD 28.59 billion. Operating expense was TWD 14.33 billion, up 0.45% YoY from TWD 14.27 billion. First three quarters operating income was TWD 27.52 billion, down 19.82% YoY from TWD 34.32 billion.
First three quarter net income was TWD 23.93 billion, down 14.34% YoY from TWD 27.93 billion. EPS in first three quarters was TWD 39.32, a YoY decrease of TWD 6.58 from TWD 45.90. Next is our Q3 sales breakdown by product line. SM DDIC, which is small and medium driver, accounts for 38% of our total sales. SOC, which is all non-DDIC, accounts for 38%, and LDDIC, which is a large driver IC, accounts for 24%. We have just released our October sales, which is TWD 6.87 billion, month-over-month up 11.37%, YoY down 45.42%. SOC accounts for 38% and driver accounts for 63% of the total revenue. The next slide shows you a brief picture comparing our 2022 and 2021 monthly sales numbers. Next, let's look at other key financial numbers.
Our cash and cash equivalent in Q3 was TWD 39.6 billion, decreased QoQ by 43.64% from TWD 70.26 billion, YoY decreased by 7.46% from TWD 42.79 billion. Account receivable, Q3 was TWD 13.97 billion, decreased QoQ 34.373% from TWD 21.41 billion, YoY decreased 40.41% from TWD 27.08 billion. Inventory, Q3 was TWD 17.18 billion, Q2 down 8.8% from TWD 18.84 billion, YoY up 39.94% from TWD 12.28 billion. Short-term loans, Q3 was 0. The following slide is a recap of our recent major events. As you can see that we've been awarded numerous awards and then some rankings, and then Novatek was selected as some of the constituent stocks for various index. I'm not going to go through that in details, but this is just for reference. Now I'll turn over the call to our Vice President, Mr. Steve Wang, to provide us more details on our Q3 results and Q4 guidance.
Good afternoon, everyone.
非常欢迎各位来参加今天我们线上的法说会。刚刚David先已经把第三季我们营运的结果，跟大家做了相当详细的数字报告。第三季主要是因为产品需求，消费性产品的需求激动，还有品牌系统厂在清库存，面板厂减产因应，所以我们的营收较第二季减少了大概37.8%。第三季的毛利率也比第二季减少了4.97个百分点，这个主要还是成本上升，售价下滑所导致的结果。往前展望第四季，现在来看第四季，大环境持续受到通膨升息，还有俄乌战事的影响，总体经济的前景看起来还是有不确定性。消费性产品的需求仍处疲软的状态。而面板在经过一段时间的库存消化，还有厂商的生产调整以后，看起来报价有逐渐止稳的迹象。OEM厂为了准备传统节日的促销活动，看起来最近部分的机种有急干补货的情形，像接下来的双十一、双十二，还有Black Friday、Christmas、春节等节日的促销活动。但是实际的拉货力度，我们仍然要观察接下来这段时间终端销售的状况再来决定。那以现在的大环境状态，我们现在给的Q4的guidance，在营收这里，我们目前估计大概是介于TWD 188亿到200亿之间，这个是用汇率32来计算。毛利率应该会介于38.5%到40.5%之间，而营益率会介于18.5%到21.5%之间。以上，简单跟大家做一个说明。Let me translate that into English.
Our 2022 Q3 revenue was TWD 19.56 billion, was within our guidance, but QoQ down 37.82%. This is mainly due to the rapid freeze of consumer demand, the brands and OEM makers' inventory digestions, and also the panel maker production cut to cope with the weak demand. As for the margins for Q3, it was 42.65%, which is in line with our guidance but QoQ decreased by 4.97 percentage point. This is mainly due to ASP erosion and cost up. Looking at the Q4 outlook, the global economy is still impacted by inflation, rising interest rate, Russia-Ukraine war. Therefore, the macro economy is still full of uncertainties. The consumer market demand is still weak. After a period of inventory digestions and capacity cut at panel maker side, the panel price has stabilized. The brand and system maker OEM has started to place new orders.
We've seen some rush orders to prepare for coming seasonality like Double 11, Double 12, Black Friday, Christmas, and Chinese New Year. We still need to watch closely the final sell-through numbers. Based on the above, our guidance for Q4 is as follows: The revenue will be within the range of TWD 18.8 billion to TWD 20 billion, at the exchange rate of 1 to 32. The gross margins will be 38.5%-40.5% range. Operating margins 18.5%-21.5%.
Thank you Steve for the Q4 guidance. Next, we'll move on to Q&A session. Please be reminded to send in your questions. Currently we already have received some questions, Tony will read it out and we'll try to answer them one by one. As I mentioned, if you have follow-up questions, you can send them in, and we'll process them and we'll answer them.
Tony, please.
第一个问题是关于刚刚管理层给的第四季的营收的指引，可以就产品线别或者应用别稍微再告诉我们整个趋势是怎么样的。
以第四季我们给的guidance，188亿到200亿这里，我们目前所看到的情况是中小尺寸这里的营收应该会增加。这个主要是因为手机这里使用的OLED driver的新机种会增加。联咏受惠于新机种采用OLED的增加了，所以我们在第四季这里营收会有增加。但是TDDI这里看起来是下滑的。在大尺寸这里，因为刚刚提到有一些rush orders，所以我们看到大尺寸这里的营收应该可以略升。那SOC相关的产品，由于进入了季节性的影响，看起来会衰退，所以整个三大产品线第四季的情况是这个样的。
Thanks for your quantitative guidance for quarter four. Could management provide more color on the sequential trend for your three business group or by application?
By applications for the small medium driver, we are expecting it to be up QoQ, mainly due to OLED. As for the SOC, it will decline. For the large driver IC, will be flat to up slightly. For the small smartphone DDIC, the OLED will be up. For the TDDI, it will be down.
谢谢管理层的回复。好了，那我们先回头来看一下第三季的，您给的数字中有一些想再请教一下。第一个就是关于您的第三季的营收的最后达成只在原本的中下缘，请问主要的原因为何？那其中三大产品线中或何种终端应用表现比较弱？
以第三季我们营收的结果来看，主要是消费线产品的需求急冻，刚刚跟大家说明的，还有品牌系统厂在清库存、面板厂减产的影响，所以我们的营收是下滑的。以三大产品线来看的话，大尺寸的衰退是比较大的，中小尺寸方面的应用则是其次，SOC相关的产品衰退是比较小一点。
Now we're looking back to your quarter three result. First on your revenues, which only achieved the low end of your target. I just wonder what are the major factors and also which product line or by application were weaker than others.
As mentioned earlier, the decline in revenue was due to the rapid freeze at consumer end demand, like smartphone, notebook, PC, or TV. The brand and system maker, they were undergoing inventory digestion. Panel maker production cut to cope with the weak demand. Based on the three product line, the decline rate is highest at the large DDIC side and then the small medium side. The relatively smaller magnitude is on the SOC side.
第二个问题是关于您的第三季的毛利率，也是在指引的中下缘，请问主要原因为何？还有何种产品的单价较受到影响？
第三季的毛利率，刚刚跟大家报告一样，主要来自成本的上升。这个成本的上升包括了一部分是来自LTA合约估量的相关的成本，以及售价的下滑，还有产品组合的一些变化所导致的。如果哪一种产品的单价受到了影响比较大，其中我想是手机的TDDI产品的售价较受到影响。
A follow-up question on your third quarter gross margin, which also at the low end of your guidance. What are the major factors and also which product were more affected by the price erosion?
Well, the reason for the decline in gross margin was mainly due to cost up, including the provisions for LTA, the ASP erosion, and the product mix. Among all the product lines, I think the smartphone TDDI ASP is relatively impacted the most.
那接下来也想对您指引中的营业利益率，我们注意到只有21.75%，较您的指引为低，那请问主要的原因为何？
主要是因为第三季的营收与毛利率在指引的中下缘，以及我们的研发费用较预期为高，所以营业利益率是低于预期。不过我们的第三季的营业费用的金额相较于第二季，其实是减少了9.09亿，大概减少了18.18%。
Now looking also your third financial guidance, operating margin only reached 21.75% quarter three, below your guidance of 23%-25%. What were major factors?
Well, our Q3 operating margin was lower than our guidance, mainly due to softer revenue and lower gross margin. R&D expense was higher than expected. The overall operating expense declined by 18.18% to TWD 909 million.
我们在看到注意业外的项目在第三季也是金额比较大，到10亿，相对第二季的5亿，请问主要原因为何？
第三季的营业外收入主要是来自于汇兑的盈余，有7.5亿，还有利息收入的1.45亿所贡献。
We also notice you have a big jump as a non-operating income to TWD 1 billion compared with around TWD 500 million in quarter two. What were major factors?
Well, the Q3 non-operating was mostly contributed by forex gain of TWD 750 million and interest income TWD 145 million.
关于第三季最后一个财务的问题，是想请教一下，我们注意到您的存货季对季下滑了9%到171亿，请问现在存货的天数为何？那下滑的主要原因为何？或者是跟什么产品有关？
第三季的存货，我们有下降到170亿，如果换算成存货天数来算的话，大概是111天。我想这些库存品应该都是可以卖掉的，这是manageable。那因为IC的生产的cycle time比较长，尤其之前因为缺货，这个cycle time变长，所以当需求下滑的时候，我们需要大概两到三季来调整这样的一个库存。不过由于供应链的稳定的考量，我们也会动态来调整这样的一个库存。
Next question about your quarter three financials. We noticed your inventory dollar decreased 9% quarter-over-quarter to TWD 17.1 billion. What are the inventory days? What were the major factors?
The Q3 inventory, if the DOI, is around 111 days. We think it is manageable. Due to the longer cycle time of three to four months, usually the drop in demand will take about two to three quarters to adjust the inventory. Taking into account consideration the supply chain stability, we will adjust our inventory dynamically.
Basically, we have review our inventory. [Foreign language] The other reason why our inventory came down is we actually manage our wafer start. We actually control the wafer start the inventory level has come down.
我们回顾完第三季的财务数字，我们这边看到的投资人有些问题都是关于未来的展望。那我们先从第一大类的问题，就是大家关于这种需求跟展望的问题，想请教第一个，公司刚刚给了第四季的guidance，不知道可以分享一下目前初步对第一季有一个怎么样的想法呢？各个的产品应用别的情况是怎么样？那现在到年底了，不知道对明年觉得会有一个正常的季节性的需求吗？
现在要说明年第一季，我想主要还是因为明年第一季有春节的假期，另外还有一些工作天数的减少，所以一般来讲是传统的淡季。不过我想最重要的，明年我们要观察的是产业库存去化的状况，另外还有通膨是不是有受到控制，以及这个需求，我们看是不是可以在3月可以回升上来。那如果说以电视还有手机，以我们现在观察，可能Q1的时候，库存应该是会修正回到正常的水位。不过真正的需求，可能还是要持续观察大环境，尤其是地缘政治，还有通膨。至于说是不是可以恢复到季节性呢？我想这个如果大环境没有太大的变动的话，我想明年的季营收是有可能、有机会可以恢复到季节性的状态。
Now we switch gears to the overall big picture questions. The first question is: could the management provide some preliminary outlook into the first quarter compared with quarter four and also by the major applications? Also wonder if your quarterly revenue will back to the normal seasonality in 2023.
As we all know, Q1 has a less number of working days due to Chinese Lunar New Year and also traditionally low season. We will need to monitor the overall inventory digestion progress, the inflation, and the potential demand rebound in March.
As for the TV smartphone in Q1 inventory, we think it will likely return to normal level, but still highly depending on overall environment, especially the geopolitical development and the inflation situation. The revenue in 2023 are also likely to resume quarterly growth next year.
第二个问题是想请教管理层，不知道2023年全年，哪些产品的展望在出货量或营收有机会是一个正成长的状况？
这个最主要是OLED相关的产品，我想明年我们也是相当看好的，像一些手机的应用，或者甚至是一些TV，或者IT的应用应该是有机会的。另外，在auto所使用的PDDI的产品，明年应该有机会成长。还有VR、AR相关display的driver，还有像中高阶的TV的SOC，比如说4K 120Hz，或是8K的TV的SOC，应该是有机会。另外还有一些ASIC，我们看起来明年应该也有相当不错的机会。
I want to get more color for 2023. Could you expect to adopt your product for the positive unit or revenue growth year over year in 2023?
Yes. I mean, the product lines that has the potential growth will be like OLED related products, like it's been adopted for smartphone, and it will be used on TV and also in some of the IT product. We also seeing the opportunity on the automotive PDDI, and we are expecting it to grow. We also have the VR AR DDIC for the VR AR display, and also mid to high-end TV SOC, for example, the 4K 120Hz and the 8K TV. Last but not the least, the ASIC. We also expecting it to have a good result moving forward.
管理层刚刚第一个提到的是OLED，而且有在不同的application上，那您可以这边再给大家更清楚的一些讨论，关于这一块产品的机会与挑战吗？
我想这个机会刚刚跟大家报告应该是相当不错，除了手机的应用看起来它的渗透率会逐渐地增加以外，我们也发现到软板OLED有逐渐取代硬板OLED的趋势。另外，在一些IT，像NB、平板，或者是车载使用的方面，也已经开始有陆续采用OLED这样的一个趋势。另外还有一个OLED的TV。当然这样的一个机会，有一些挑战，我想挑战主要是现阶段来看，28纳米高压的产能看起来仍然供应相当紧。另外，当然明年也有可能有一些新的竞争者会进来。目前看到的挑战是这个。
The follow up to your positive comment figure on OLED, could you provide more color on the opportunity and the challenge?
Regarding the OLED DDIC opportunity, we are seeing the higher OLED penetration rate, which is good for Novatek, it's a good opportunity. The trend in replacing the rigid OLED panel by flexible panel is also a positive for Novatek. We also think the wider application to IT like notebook, tablet, automotive, and we also even moving to TV. These are some of the good opportunities that we see. Of course, there are some challenges. As you see that the 28 nano high voltage capacity is still tight at this moment. We also think there will be new competitor in the market.
再一个问题是，我想最近大家都很关心，想了解一下公司可以这边对到第四季或下半年这个库存金额或天数的一个趋势吗？
以我们现在进行的状况，第四季的库存金额应该是会进一步地下降。以目前10月结算出来的库存金额，我们已经看到有在继续减少，所以第四季的库存金额应该可以进一步下降。但是，如同我刚刚讲的，因应供应链的稳定的考量，可能我们若有需要也会去采取一些动态的调整。
Could you provide the expected inventory TWD or days trend into Q4 this year?
We are expecting our Q4 inventory TWD to further decline. Looking at our October inventory level, it is already moving downtrend. Again, considering the stability of the supply chain, we'll be adjusting our inventory level dynamically.
下一个第二个问题，我想刚刚我们提到的这个需求，既然大家很关心我们的毛利率，那第一个问题是关于售价。想问立成，请问一下预期driver IC的售价什么时候可以止稳，或者什么情况下可以止稳？那在您几个driver IC的主要产品线中，有没有哪一个产品看起来是比较有机会先止稳的？
我想基本上，售价和成本是跟供需有关的。目前需求比较weak一点，售价就会受到一些影响。不过以未来来看，我们觉得跌价的空间应该会相对地缩小。如果以产品来看，我想OLED DDI的售价，应该可以相对地比较稳定。那有关毛利率这里，我想最重要的联咏的目标，我们还是希望开发高附加价值的新产品来提升售价。所以有关售价的部分，我想我们的重点是摆在能够开发高附加价值的新产品来提升。
A lot of questions about the gross margin trend. The first question about the pricing. Could management provide public say which timing pricing can become more stabilized or under what kind of circumstance? Which product can be first get stabilized among the three product lines?
Well, basically, ASP and cost, they are subjected to supply and demand. Pricing at this moment basically is under pressure due to the soft demand. However, looking ahead, room for further price erosion will be limited. We are seeing that the ASP for OLED driver IC is relatively stable at this moment. Our focus will be on developing more value-added new products to improve our ASP and margins.
第二个问题是关于成本。请问公司预估生产的成本逐季的趋势会怎么样呢？或者就整体明年跟今年比较起来会是怎么样一个趋势？那不知道是不是还有什么产品或者制程目前供应还是比较紧张的？
由于现在消费性的产品需求比较疲软，所以我们预期部分的产品后续的生产成本应该是有机会降低的。在2023年这里可能会有这样的一个情况。至于说现在供应还是比较紧的，就是刚刚我跟大家报告的，在28纳米的高压制程这里，目前我们看到还是供应比较紧张一点。
The follow-up question is about the cost. Does management have some view on the cost trend into 2023 for the year-over-year comparison for 2023 versus 2022? Also wonder which product or what process still under tight supply?
Well, as mentioned earlier, the consumer end product demand is relatively weak. We do expect the manufacturing cost for part of products will be lowered gradually, and we do expect that moving forward. I also mentioned earlier that the 28 nano high voltage, the supply is relatively tight compared to the others.
下一个问题是关于今年合约费用，或者所谓的LTA的费用的摊提。请问第四季或者2023年还会有相关费用吗？如果会有的话，有一个指引的方向吗？
刚刚跟各位报告的第四季的毛利率的guidance，我想已经把这个给考虑进去了，already factored in。我想未来我们会持续跟供应商来协商变动的处理的方式，这个我们持续地和供应商在协商。但是联咏使用的wafer，事实上我们只有部分有签约。而这样的一个费用金额，我们觉得它是在可控范围内。谢谢。
Now there are a lot of recent discussions on the provisioning on the foundry contract. Just wonder if Novatek will still incur some legacy costs in quarter 4 of next year. If yes, would you provide some guidance?
Well, the LTA provisions actually already factored into our Q4 gross margin guidance. Basically, we'll continue to negotiate with our supplier to deal with the situation. Looking at the LTA, in general, actually it only accounts for a portion of our overall wafer, and amount in 2023 will be manageable.
最后一个大家也很关心的是关于存货备用的开题，想请教一下目前公司认列的方式与一季账面的费用，以及现在到了年底，会有一次年底一次性打消吗？
存货结账及呆滞损失，我们是依据成本与市价逐批及净变现价值予以衡量，并以公司的存货呆滞签署提拨政策计算，每一季都会依规定去做衡量起列，所以每一季的费用会因衡量的结果而变动，非为一次性的费用。
Also, investor quite concerned about the potential inventory provision. Could you provide now that your accounting rule on this inventory and also roughly quarterly expense and will you incur any year end inventory write down?
Well, our inventory, write down or provisions have been reviewed on a quarterly basis. Based on accounting rules like including lowering the cost, net realizable value and aging days. There won't be one off year-end adjustment.
想请问一下管理层，有预期毛利率何时可以企稳，或者在什么样的情况可以企稳，或者什么样的产品有机会毛利率先企稳。
我想跟大家刚刚报告的，基本上售价跟成本还是跟供需有关的。不过我们认为后面的毛利率应该会逐渐的稳定下来，最主要的原因是后续的生产成本应该是有机会降低，而且库存也会下降，所以我们觉得后续的毛利率的机会应该会逐渐稳定下来。
How of the overall gross margin trend quarter, does management have any view on when your gross margin will become more stabilized, or under which circumstance, or which product among your major driver IC lines could get stabilized first?
Well, as we mentioned earlier, the pricing and costs, they are all subjected to supply and demand. Moving forward, chances are there are in lowering the manufacturing cost and this is expected. As you can see that the inventory level also coming down. Because of this, chances of gross margin getting stabilized is also expected.
下一个问题是想请管理层对这一块面对到大陆竞争最主要的思想。
面对整个产业的竞争，我们其实因应的策略，回到最基本的，还是提升技术的实力，开发具有附加价值差异化的产品，还有优化我们的产品组合来作为基本的竞争策略。尤其是针对不同显示技术，在各种应用，基本上我们都会提供total solution，这个是我们因应竞争的这样的基本策略。但是在终端客户这里，事实上他们也会有对稳定而具有韧性的供应链的这样的一个需求。那我们因为联咏有一些以上的优势，我想我们会是客户长期信赖的合作伙伴。
Could management provide comment on the potential impact in terms of competitors from China?
Well, I think the best way to deal with this competitive landscape is to focus on the enhancement of our design competitiveness and differentiations, also value-added products with the optimal product portfolio for various display technologies and providing the total solution for our customers. You can see that under our current environment, OEM customers are greatly in need of a stable and resilient supplier. Novatek definitely has the position and the capability to meet their needs and continue to be their reliable long-term partner.
下一个还是关于大陆的问题，想请教一下对于大陆今年驱动IC产能开出的影响。
我想只要具有竞争力或者是有先进制程这样的材料wafer，联咏都会来使用。当然大陆的这些fab开出来，基本上它也不是只有做驱动IC，事实上它也包括生产的像CIS，或者是Power、Chip、MCU等。他们会依照工序的情况，去调整产品生产的组合。
Could management also provide comments on the impact from the new driver IC foundry capacity out of China?
Well, for Novatek, we'll continue to leverage both the competitive and the advanced node process. As for the foundry player, they will also adjust the product mix based on the market demand, because they don't just supply driver, they also supply the process for CMOS sensor and the power management in applications.
最后可以请关启诚分享一下，对公司中长期毛利率的看法。
对于刚刚跟大家报告的提升毛利率，我想联咏我们最重要的基本的因应，应该还是以长期卫生跟技术，来提升技术的实力。另外，我们会加速新产品的推出，还有产品线的应用多元的发展，来强化公司的体质，来提升毛利率。我想这是最根本的我们要做的事情，在毛利率上面。不过以长期来看，我们有一些产品，我觉得机会应该也都相当不错。比如说像大尺寸的驱动IC，像高阶的IT使用的，还有一些gaming、8K的display，还有一些high speed interface，像有eDP 1.5的TCON产品，还有像OLED的TV。我想在大尺寸这里，应该都是有相当的成长的机会。中小尺寸这里，除了手机的OLED driver以外，还有像MV的OLED driver，还有像OLED TDDI，还有在车载使用的TDDI的产品。另外明年我们也相当期待AR/VR的驱动IC，还有一些特殊应用的ASIC。所以在中小尺寸这里，我们应该有一些期待。在SOC的产品这里，刚刚跟大家报告像4K 120Hz，或者是8K的TV的SOC，还有一些影像处理相关的这些ASIC，比如像跟PQ有关的，或者跟high speed interface有关的这些ASIC，我们应该也都有不错的机会。
What are the main drivers to provide comments on your medium to long term trend for your growth margin?
Well, for the growth margin, the best way, again, is to continue to focus on some new technologies and to speed up the launch of new products, also try to broaden the product portfolio to enhance our competitiveness and also our growth margin. Looking at more in details, for example, for the large panel side, we have application for high-end IT product drivers and the gaming 8K display and also the high-speed interface. For example, the eDP 1.5, TCON, and also OLED for TV. For the small and medium size smartphone and all, we have OLED also used for the notebook, then we also have the OLED TDDI, and also automotive adapting TDDI solution. Next year, we do have expectation on our ARVR solution, and also some special purpose ASIC on the small medium segment.
As for the SOC side, mentioned earlier, we have the 4K 120Hz solution, and we have also ASIC, especially for the picture quality and also the high speed interface.
所以我也蛮关心的，不知道公司这边在最近的这些中美贸易冲突下如何去应对？
我想目前我们在生产方面，也有目前的供应链，我们已经涵盖了大陆、台湾，还有韩国。我想我们会依照客户的需求，做一个最适合的配置，这是在生产方面。而在客户方面，事实上联咏的客户群，我们已经涵盖了各个地区，我们会持续开发具有附加价值跟竞争力的产品，来提供给客户。我想我们在客户的分散这里，应该有相当不错的进展。
What how Novatek cope with the recent political tension between China and the U.S.?
For Novatek, our supply chain has already expanded into Taiwan, China and South Korea. We'll try our best to make the best allocation and adjustment to meet our customer needs.
For those that our customers are also relatively diversified geographically. Novatek will continue to focus on providing competitive and value-added products to our customer, and making sure that they have the stable and resilient supply.
投资人关心说公司的现金除了发到股利外，还有其他的计划吗？比如说库藏股或者是合并的计划。
基本上我们手上有现金，主要还是从事长期技术的研发，还有投资扩充产品线，开发新产品为主。主要我们的用途是这个。当然我们会保留部分的弹性，在必要的时候，方便公司可以做一些规划来使用。这个当然包括了M&A，如果有需要的话。
Now in terms of the cash usage, in addition to the distribution of cash dividend, do you have any other plan, such as treasury or share buyback or M&A?
Well, our cash will be mainly used for long-term tech development and expansions of product portfolio, and the introduction of new product. Part of the cash will be also reserved to maintain flexibility when needs arise.
再来这个问题是想请教一下，因为注意到公司2022年营业费用率变动比较大，不知道说对于2023年可以给一个初步的指引方向吗？
以2022年的预测营收数字去估算，我们2022年的营业费用率大概会落在17%左右。那2023年的相关营业费用的金额变化是不大的，但是营业费用率会随着营收波动而变化。
As we notice the big volatility in terms of operating expense ratio during 2022, I wonder if you can also provide some guidance for 2023.
Given the guidance for Q4, the operating expense ratio for 2022 will be around 17%. The operating expense amount during 2023 will be stable, the operating expense ratio will be subjected to the revenue fluctuation. We've gone through a lot of the questions. Tony, there's still some more questions. If you have new ones, do let us know.
一个问题，关于现金的这个部分，不知道公司这里对于明年的股利政策是不是会有所改变呢？
根据我们过去几年的这样过来的这个情形，事实上我们都每年保持的payout ratio，keep在80几%。我想对这样的一个policy，我们短期内应该是不会有很大的变动。
OK, follow up question about your cash usage. Just wonder if you can provide some early thoughts for your dividend policy next year.
Well, for the past many years, our dividend policy was pretty much maintaining pretty high payout ratio. We don't think there will be any major changes to that policy at this moment.
基本上这个还是要由董事会开会来决定。
Again, this has to be decided by the board.
下一个问题是，刚刚有讨论一些存货，也提到金额的下降。那请问一下公司有没有觉得这一次跟之前的金融风暴的循环比起来，现在的天数跟那时候相比，或者下降到什么样子的一个水准，才是一个比较健康合理的水准？
以现在我们手上的库存的金额，如果再进一步的下降，我想应该也是可以控制到跟过去差不多一样的水平。不过这个如我刚刚提到的，我们也要考虑到以目前这样的外在环境的情况下，我们对于供应链的稳定，我想还是会把它拿进考虑。
Follow up question is about the inventory. Just wonder, you provide some guidance for inventory dollar and the days. Wondering do you expect when your inventory return to normal, anytime early next year, or what's your comment?
Well, based on the current inventory reduction rate, I think it should go back to a normal level. As mentioned earlier, in order to take into consideration the stability of the supply chain, we need to do some adjustment. Basically, I think the inventory level should be healthy.
Yes, see if there's any more questions.
刚刚管理层对于2023年的新产品有提到ASIC，那后来也有提到好像在中小尺寸，不知道这边可以再多给投资者一些color吗？
你是说中小尺寸的ASIC？
Right.
因为我们基本的核心竞争能力是在驱动IC显示，还有显示技术跟影像处理相关的产品。所以我们在这上面，应该有受到了不少客户的肯定。所以我们在这会有不少的ASIC产品产生出来。基本上，这个涵盖了刚刚讲的驱动IC的部分，或者TDDI，或者是一些影像处理相关的ASICs。
You mention about the ASIC as one of the major growth opportunities into 2023. Would you provide more details on your ASIC product for next year?
Yes. As you all know, the core competence for Novatek is the display and image technology. Our technology has been very well accepted by a lot of the big customers. That brings in a lot of opportunity for ASICs, including driver, picture quality, high speed interface. These are some of the areas that will be providing to our customer. We can take one more question.
有一两个问题都是关于刚刚管理层也提到了，对OLED这个产业跟对联咏明年都是一个很重要的产品，但是你也有提到竞争对手这边，不知道在这一边是不是可以再琢磨一点。
我想有关OLED的产品，事实上我们有不少具有竞争力的产品，或者是一个技术领先的产品，现在事实上都已经在设计当中。而这些产品在未来应该会陆续地推出来。所以我想在这里我们应该有算是技术领先的不错的一个先机。所以在这里我想应该明年可以有一些期待。
Earlier you mentioned OLED also is one of your major growth opportunity into next year. Also you mentioned about some competitions, I just wonder if you can provide more details.
Yes. Then for Novatek, we have developed quite a number of leading-edge OLED display technology, and it has been designed in to various customer. We do have high expectation move forward next year. Well, thank you so much for joining in for our 2022 Q3 investor conference. Thank you so much, and see you next quarter.
谢谢各位。
谢谢各位。