各位投资界的朋友、分析师、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二零二一年第三季的法人说明会。希望大家在防疫期间都很健康、平安，投资也都很顺利。虽然国内疫情有降温，但为了大家的安全，我们决定还是维持线上来进行，如此也可以方便国外的法人也能够参加。今天的法说会会同时用中英文来进行。那今天的会议议程如下：首先，会由我这边先用英文报告联咏二零二一年第三季的结果。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。最后我们开放给各位问答的时间。各位可以透过线上把你的问题上传给我们。我们手上已经有一些问题，那等下会先进行，若还有新的问题，麻烦大家上传。我们的IR主管Tony收到以后会帮忙用中英文来发问，会由我们的王副董还有郭顺成财务长，就我本人用中英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 2021 third quarter online investor conference. This is David Chen, Vice President and Company Spokesperson. I'll be the host for today's conference. Hope everyone is doing well, outperforming the market and staying healthy. We are very happy and fortunate that Taiwan domestic pandemic cases have fallen to nearly zero, but we still have to take precautionary measures to ensure everyone's safety. Therefore, we have decided to maintain 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'll be reporting Novatek 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 session.
As mentioned earlier, if you have questions, you can send them to us by text. Our IR director, Tony Tseng, will be processing and reading out the investor questions one at a time, both in Chinese and English. Our Vice Chairman, Steve Wang, CFO, Mr. Sheng-Cheng Chou, and myself will answer all the questions in Chinese and will be translated into English later. As usual, please take a look at our safe harbor notice. Let's start with our 2021 Q3 financial highlights. Our net sales in Q3 was TWD 38.35 billion, up 12.41% QoQ from TWD 34.11 billion, YoY up 34.29% from TWD 22 billion in Q3 2020.
Revenue in Q3 was TWD 19.92 billion, up 16.02% from last quarter 17.17 billion, and up 162.76% from TWD 7.58 billion in Q3 2020. Our gross margin in Q3 was 51.94%, up 1.61 percentage point QoQ from 50.33%, YoY up 17.49 percentage points from 34.45%. Our operating expense in Q3 was TWD 4.8 billion, down 7.32% QoQ from TWD 5.18 billion, YoY up 44.56% from TWD 3.32 billion.
Q3 operating income was TWD 15.12 billion, up QoQ 26.1% from TWD 11.99 billion, YoY up 254.75% from TWD 4.26 billion. Our operating margins in Q3 was 39.43%, up 4.27 percentage points QoQ from 35.16%, YoY up 20.06 percentage points from 19.37%. Next, our Q3 net income was TWD 12.27 billion, up QoQ 25.39% from TWD 9.79 billion, YoY up 260.37% from TWD 3.41 billion. Overall, Q3 EPS was TWD 20.17 versus last quarter TWD 16.08, a QoQ increase of TWD 4.09.
Last year Q3 EPS was TWD 5.6, a YoY increase of TWD 14.57. Next, let's take a look at our Q3 consolidated income statement. Next slide is our first three quarters consolidated income statement. Our sales in the first three quarters was TWD 98.82 billion, YoY up 71.86% from TWD 57.5 billion in first three quarters of 2020. Net gross profit in the first three quarters was TWD 48.59 billion, up 150.22% from last year TWD 90.423 billion. Our operating expense in the first three quarters was TWD 14.27 billion, up 51.94% from TWD 9.39 billion last year.
2021 first three quarters operating income was TWD 34.32 billion, up year-over-year 242.24% from TWD 10.03 billion in 2020. 2021 first three quarters net income was TWD 27.93 billion, up year-over-year 241.76% from TWD 8.17 billion last year. Overall, first three quarters EPS was TWD 45.9 versus last year TWD 13.43, year-over-year increase by TWD 32.47. Next is our Q3 sales breakdown by product line. SM DDIC, which is small and medium driver, that accounts for 38% of our total sales. SOC business, which is all the non-DDIC, accounts for 33%. L DDIC, which is a large DDIC, accounts for 29%.
We have just released our October sales, which is TWD 12.59 billion, month-over-month down 2.63%, YoY up 66.38%. SOC accounts for 29% and DDIC accounts for 70% of the total revenue. 2021 accumulated revenue, January to October, is TWD 111.41 billion, YoY up 71.22%. Comparing our 2021 and 2020 monthly sales, we are seeing significant YoY growth for the first 10 months of each one. Next, let's look at other key financial numbers. Our cash and cash equivalent in Q3 was TWD 42.79 billion, increased QoQ by 18.49% from TWD 36.11 billion, YoY increased by six hundred and sixty-one point seventy-three percent from TWD 16.35 billion.
Accounts receivable, Q3 was TWD 27.08 billion, increased QoQ 26.56% from TWD 21.4 billion and YoY up 76.5% from TWD 15.35 billion. Inventory, Q3 was TWD 12.28 billion, QoQ up 15.47% from TWD 10.82 billion, YoY up 59.98% from TWD 7.67 billion. Short-term loans, Q3 was TWD 5.63 billion. QoQ decreased by 24.93% from TWD 7.49 billion. The final slide is a recap of our recent major events. We have been selected as Constituent Stocks for the FTSE4Good TIP Taiwan ESG Index, TWSE RA Taiwan Employment Creation 99 Index. We have also entered the top ten of the Commonwealth Magazine Sustainability Award, and also the 2021 Taiwan Corporate Sustainability Awards.
We got a Gold Award for that. Now I'll turn over the call to our Vice Chairman, Mr. Steve Wang, to provide us much more details on Q3 results and Q4 guidance. Let me repeat, translate what Steve just mentioned in English. The Q3 revenue increased by 12.41%. The sequential rapid growth was attributed to a combination of continued momentum from IT related products. The seasonal pickup of SOC products, an increase of smartphone and automotive DDIC, contribute to the growth. Q3 margin was 51.94%, up 1.61 percentage points QoQ. This was supported by the better product mix and price rise for part of products on the back of higher costs.
As we enter Q4 low season, consumer demand starts to slow down, but we do have expectation on the coming Double Eleven, Black Friday, Christmas sales promotion. As COVID restriction been lifted, people are returning to office for work. This will drive commercial notebook, monitor, automotive, industrial demand. Most of the new smartphone are also adopting OLED display, and we're expecting the OLED demand to pick up momentum. Based on what I just mentioned, our guidance for Q4 is as follow: Revenue will be TWD 36 billion-TWD 37 billion, with an exchange rate of one to 28. Gross margins will be 48%-51% range. Operating margins will be 34%-37% range. Thank you, Steve, for the Q4 guidance. Next, we'll move on to Q&A session. Please be reminded to send in your questions.
We'll start with the questions on hand. Yes, Tony, please.
有几个前面的问题是可能关于大家对第三季的数字还有一些想除掉的。刚刚 management 有提到这个毛利提升的原因，那不知道这里 NRE 的金额是不是也可以粗略一下。
第三季的NRE呢是有八千一百万，那现在看起来第四季呢，大概应该是会有大概九千万左右，所以第三季、第四季应该差不多。The NRE for Q3 was eighty one million USD, and Q4 will be roughly around 90 million.
第二个问题是好几位投资人一起都在问，就说注意到，过去前几季你的营业费用率，并没有随着营收成长而明显降低，但是在第三季的时候一个明显的降低，请问主要的原因是什么？
Well, that's mainly due to the decline in R&D-related expense.
从刚刚公司给的这个PPT里面看到三大产品类的第三季的breakdown，那似乎第三季的成长应该是中小尺寸最高，高于其他两个，那中间有没有特别要再跟大家分享，尤其是OLED这一边的情况。
第三季的中小尺寸的驱动IC的季增长，是比较高，这一部分主要是来自OLED的出货，我们在第三季应该创下了新高出货量，那在Auto OLED方面这个需求，在车载用的这个产品的需求营收，也有增加，所以在第三季的这个营收的成长是最高的。The third quarter revenue, the small medium driver IC seems to occur the large driver IC.
The main reasons is that our smartphone OLED actually had a record high in Q3, and our automotive sales also went up in Q3.
最后一个关于这个财务报表中，大家看到过去好几家公司的IC设计的存货都有大幅的增加，不仅金额，还有片数，那看到联咏的话，是金额增加，片数算是大致维持。那请问一下这里面有没有可以再给一些解释，这其实要怎么看待。
我想存货的金额的增加呢，最主要是因为cost有一些增加了。另外第二个是，后段的这个lead time嘛，事实上也是增加了，比如说像substrate它的lead time也比较长，所以有一些这个inventory，库存的金额也上升了一些。不过总的来讲呢，这个金额应该是增加的是相当有限，应该是在可控制的范围。
Your inventory days increased, absolute dollar increased about 18, roughly in line with your revenue growth. Could you provide more color, and also by which product?
Well, the inventory increase are mainly due to the increase in revenue and cost up. Well, you know, the SOC lead time is relatively longer, especially some of the packaging material, raw materials. Overall, the inventory level in Q3 is pretty healthy.
刚刚这边您特别提到手机OLED这边，那可以在OLED跟TDDI的第三季的量上面，再给我们一些指引呢，然后不知道前三季这两种OLED跟TDDI的出货跟去年同比的情况是怎么样？
以第三季的出货来看，TDDI因为产能的限制，在第三季的出货数量是持平的，不过在OLED上的出货数量是单季新高，对我们来讲，那个出货数量是创下单季新高的。以今年总的来看，现在看起来今年因为产能的一些限制，我们在TDDI的出货，相对去年应该会略微增加，应该会略微增加。不过在OLED这里，看起来今年的出货应该会大于去年，应该会大于去年，而且会是我们出货以来的新高。明年看起来，OLED的出货数量，由于在产能上面我们有一些掌握，相信明年这上面的出货应该还会持续成长。
Okay, once again a little bit more color on your OLED TDDI and FTDI for quarter three, and also the year-over-year growth for the first three quarters for this product or even the overall outlook for this year or even next.
Well, the overall TDDI, we are expecting or we've seen the QoQ relatively flat as we move forward at Q4. Our OLED in Q3, as we mentioned earlier, will have a record high. We are expecting in 2021 TDDI will be slightly up. OLED even though it's a record high, but we still in this year, we still have some constraint in the capacity. As we move forward to 2021, we are expecting to increase more capacity for OLED, so we are expecting next year our OLED will both be better than 2021 as we increase more capacity.
接下来我这边的问题就是，看大家目前进来的最常问的一些问题，那第一大类应该是关于需求还有一些掌握，刚刚管理层有提到一些，不过这边的题目会更明确一点。第一点就是最近的感觉很多的这个电子需求爆发的扎实，那不知道公司如何...公司这一块的占比的 exposure 也比较高，请问公司如何降低需求爆发的冲击？
就像我刚刚跟大家报告的，最近消费品的需求确实是有比较趋缓一点，不过因为整个的wafer的supply看起来仍然很紧，所以我们也是积极地去调整生产的产品组合。不过以面板厂来讲的话，他们也是去减产这个TV的面板，也是调整生产的产品组合，像比如说像IT的面板，所以我们也是配合这个面板厂，去调整供应，增加IT方面的驱动IC。
We have seen a slowdown about TV recently. I just wonder company how to reduce the impact from the slowdown?
Well, as you know, the consumer side, the demand has slowed down a bit. What we are experiencing is the overall capacity, what you're seeing now is still relatively tight, so we have adjusted our product mix. We also see that the panel maker side, as we mentioned, the TV as a consumer product has slowed down a bit, so the panel maker also adjusted the production line allocation to more on the IT side.
那公司管理层有觉得这个TV需求有觉得什么时候可以止稳甚至回升吗？
跟大家报告的就是说，看样子，TV 呢，许多面板厂应该都有稍微减产，所以如果这个市场的需求没有很大的变化，当到一个程度呢，应该就可以止稳。如果以现在大家的看法呢，most likely 可能在 Q1 底应该有机会吧。
Also, I wonder, do you expect the TV market to stabilize or even improve in the rest of the year?
As mentioned earlier, the panel maker are, you know, reducing the utilization rate or product mix. Basically based on what's going on, we do expect most probably in Q1 the ASP will stabilize.
第二个，刚刚管理层有提到大概的这个整体第四季的需求的情况，那不知道这边还有没有要补充的，那甚至不知道是不是可以分享一下现在对第一季的初步的看法。
以现在来看的话，第四季的这个需求，就我跟大家报告的，如果说跟第一季...
再来看第一季的话，因为第一季有这个春节的季节性关系，所以看起来可能跟往年的变化不大。不过以第四季来看，刚刚提到的就是消费类的需求是有比较 weak，像 TV 啊，或者是 Chromebook，不过刚刚提到的 commercial notebook 啊，monitor 啊，或者像 auto 啦，或者是手机的 OLED，看起来需求相当不错。那这些东西，看起来到第一季，以现在来看的话，应该是可以持续下去才对，应该是可以持续，变化不会很大。
As I have mentioned briefly about the Q4 outlook by application, could you give more color on product market as well as some early sales of first quarter?
Well, what we see in Q4 is that we are expecting in Q4 the consumer to be kind of slow down a bit. On the commercial side, we still see, you know, a strong demand on the commercial side. As we move forward to Q1, we do expect the demand will be sustainable or move forward to Q1. We obviously that Q1 the it will be relatively stable.
刚刚提到了这个第四季的需求下滑，刚刚管理层提到，但是不知道管理层可以稍微就三两三并线提到，提一下这个季税季的情况，那还有在量和价上面可能的情况是怎么样？
第四季。
在第四季，第四季。
第四季的话，就是刚刚提到的，如果说以我们的这个出货来讲的话，就是手机方面看起来出货的营收应该可以略微的增加，但是在这个大尺寸的driver跟这个SOC方面的这个出货的金额，可能会略微的减少。
You mentioned about the quarter four guidance earlier. Just wonder, can you give more color about the quarter-over-quarter growth by your three major business groups?
Well, we're expecting the small medium size business to grow up sequentially in Q4. For the large DDIC, we're expecting it to slow down decline a bit in Q4.
大家也对于我们去到IC产业，另外也很关心的就是整个面板的产业，不知道您刚刚也简单提到了面板有一些减产的情况，可以跟我们分享一下，目前减产的情况或产能利用率的情况吗？
跟大家报告，我们看到的是面板厂确实有去调整它的生产产品组合。那现阶段来讲，TV目前看起来是有比较减产的情形。那这样的一个情况，可能会延续到第四季或者是第一季吧。但是，同样的，他们在一些其他的应用，像刚刚提到的commercial的notebook啊，或者是monitor啊，或者是车载方面，他们也会去调整这样的一个产品的生产组合。
Regarding your driver business, so investors also wonder if you can share some view of the panel industry in terms of the output reduction as well as the utilization rate at this moment.
Well, as mentioned earlier, the panel maker, actually they are adjusting their utilization rate and also, I mean, adjusting the product mix. I think the situation will continue from Q4 to Q1.
他也想说，不知道您对于面板，因为在整个产业这么多，不知道说您觉得面板的价格在明年有什么时间点，可能机会直接回温呢？
这个基本上还是问面板厂会比较适合。我们的看法是，其实，基本上还是 supply demand 来决定这个未来的情形。但是因为现在这个，世界做这个 TV 的面板的国家或者区域呢已经比较少了，所以看起来，如果说大家在这上面的投产呢降低的话，我想应该在一个时间点，应该有机会这个回弹回来。
Follow up on the panel market, would you expect any time soon the panel price to stabilize or even improve?
Oh, of course, this question will be best to ask the panel maker. Of course, it basically depends on supply and demand. As you know, as Steve mentioned that the currently globally, there are only two places really have the panel industry like in China and Taiwan. I do believe the situation will be you know, more stable.
接下来大家也对于这个公司在2022年明年有没有，刚刚也好像简单提到对OLED的展望是蛮正面，那不知道这边对这一题而言，提一下哪几项产品成长的机会比较高，或者是不是有什么新产品值得注意，尤其像最近特别提到的一些像元宇宙这样的一个trend。
刚刚有些已经跟大家报告了，看起来我们明年因为有些产能的增加，所以在OLED这里应该是有一些成长的出货。那在车用方面，看起来明年应该也会比今年好，明年也会比今年好。另外在LED的display或者是backlight相关的solution上，明年应该也会看起来会比今年好。另外在安控方面，明年的出货现在应该看起来可以比今年有一些成长。至于最近这个题材比较夯的metaverse，那最主要还是在穿戴的VR这些产品上、应用上，所以我们事实上有一些project都已经在进行当中，所以我想这个在未来应该可以有一些期待，未来应该可以有一些期待。
Management touched on the outlook for OLED briefly for 2022. Could you provide an overall picture of your more positive growth product for next year? Also maybe anything related to the recent hot topic metaverse.
Well, as we mentioned earlier, we are expected to increase our foundry supply next year for the OLED. Definitely the OLED will experience growth next year. Then of course, upon that we have our automotive, which also expect growth, and then we have LED backlight, and then we have also surveillance. Then of course you mentioned about the metaverse, we do have projects, we are working on these projects, so we will give more details as we move forward.
第二个大区块，投资人特别关心的，我想在这个产业是关于毛利率。那不知道第一个就在第四季的话，可以提一下，哪一些产品有成本的增加，然后哪些产品有一些涨价去反映成本呢？
以第四季来讲，有部分的产品确实有一些cost up，不过在这个成本的反映上面，我们也都是有部分产品会跟客户来做这个沟通，来调整这个价格。
I wonder which part of product cost has been pushed up in quarter four, and also which product have you raised the price to reflect the higher cost in quarter four?
Well, in Q4, partially some of the cost has gone up, so we are discussing with our customer to reflect the cost to our customer.
第二个就是关于您这个季的毛利率趋势，您第四季的 guidance 跟第三季给的 guidance 基本上要在第三季后来是有超过，所以这次第四季的话是觉得整体的趋势会稍微往比第三季下滑呢，还是可以一个比较持稳的情况。
你说第四季。
第四季比第三季。
第四季用刚刚给的 guidance 就是，四十八%到五十一%之间吧。目前看起来是大概在这样的一个 range 里面。
Another question about gross margin trend and your guidance for quarter four was similar to quarter three, but your result was much stronger. I just wonder if you can maintain your gross margin in the quarter four, or you will still be slower in the trend.
不过看起来应该不会有很大的变化，应该这是在可控制的范围，应该变化不会很大。Yes, we just gave the guidance for gross margin to be around 48%-51%, but basically we don't expect too much fluctuation on the margin, should be relatively, you know, stable.
那接着这个毛利率还有一个问题，那因为之前有另外一家厂商有提到第一季的趋势，那不知道公司现在初步看起来，第一季的毛利率如果跟第四季相比，有一个可以跟大家分享的想法吗？
就像我刚刚跟大家报告的，由于我们有一些售价上，因为成本的这个cost up呢，我们也适时的有去跟客户做一些沟通。所以目前来看，Q1应该也是在可以控制的范围之内，应该也不会有非常大的这个变化。不过这里要特别强调一下，就是说有关这个售价或者是成本呢，我想这个基本上还是由市场供需来决定的。我们适时跟客户跟供应商来保持这个良好的沟通。
Yes. You mentioned about although you provided quarter four guidance, but you also mentioned about the margin will be pretty stable, very stable quarter four versus quarter three. Could you also provide some early view for your first quarter margin trend?
Well, Steve just mentioned that, yes, there are some areas that the cost has gone up and we have reflected the cost to our customer. Currently looking at Q1, I think the situation is manageable. As mentioned earlier also, the ASP basically it depends on supply and demand. We are keeping a close watch on the supply and demand situation, also updating those situation to our customer, and then to make sure that, you know, reflecting the cost to enable them to, you know, you know, to get the capacity they want.
刚刚在需求这边有讨论过TV跟面板的需求，那公司也初步觉得有机会可能在第一季末这里做一个回稳。那不知道如果这边面板的价或TV的需求回稳的话，你这边驱动IC的售价，或者毛利是不是也会有机会随之更动态地调整？
基本上我们在售价上基本上也会跟这个市场的供需的情况来做一些动态上的调整。
Earlier we discussed about demand supply situation for the TVs or even the panels for early next year. Just wonder if those markets start to stabilize or even improve, would you have more flexibility to reflect your DDIC price?
Well, again, it's a matter of supply and demand, and currently the, you know, foundry capacity is still very tight. We work very closely with our customers.
那另外一个大家对于比较细的问法就是说，那这个毕竟现在有一些波动，那不知道公司管理层有做哪一些事情来维持售价和销量，或者也降低可能的毛利率下滑的压力，来自于比如说晶圆成本或其他成本的增加。
IC design house 的 core competence 基本上还是在技术跟产品，所以基本上我们是朝着提升价值来提高毛利率的方向来思考，用创新技术跟差异化的产品来提供给客户。这个基本的方向是这样。所以基本上我们是由不断地推新产品的设计，提升技术力。另外，提供客户具有竞争力的 solution，这解决方案，然后建立供应链跟客户长期而且稳定的伙伴关系，来提升我们的价值。这个是我们的基本方向。
Okay, you mentioned, has the management team taken any action or measures to maintain your ASP and the quantity and also reduce the potential impact from the margin pressure given on the back of higher component cost?
Well, you know, as a fabless IC design house, our core value is to create value for our customers. Of course, this includes new technologies and new competitive product for our customers, new solutions, and we are strengthening our partnership with our suppliers.
那接着有几个大家也很关心，关于财务方面的数字。那第一个就是公司今年的获利非常的亮丽，就想请教一下，明年对于今年的获利有机会维持在80%的发放率吗？
基本上我们的这个股利呢，还是由董事会来讨论，来股东会来决议的。所以我现在比较难在这儿跟大家报告说这个维持在哪一个百分比这样子。
Given your very strong performance this year, I just wonder if you can maintain your cash payout ratio at around 80% for 2021.
Well, as you know, the overall payout ratio is decided by the board. At this moment, I don't have the number, so wait for the board to make the final decision.
很多投资人也关心的，因为驱动IC还有联咏，股价都从高点有下来，幅度比较大，那公司会有考虑做一些增加股东回报的行为吗？比如说股票股或者特别现金股利。
目前到今天为止，我们是没有这样的一个计划。
I wonder if you have any thought to increase the investors return such as share buyback or special dividend?
No plans yet.
也蛮多投资者对于第三季的营业费用的改变，所以也想请教一下财务长，不知道可不可以给一下对于明年营业全年的营业费用的范围可能会在哪里？
我们2020年的营业费用率大概是16.5%，那今年前三季的营业费用率大概是14.5%。那随着营收的增加，当然我们营业费用率是会有稍微往下的趋势，因为营业费用率还是——它的营业费用率的高低还是决定在营收的大小，那如果我们的营收是明年度还是持续成长的话，我相信营业费用率大概是在14%到15%之间。
Also, given the dramatic change of your OpEx ratio in quarter three, just wonder if you can provide some guidance for your OpEx ratio for 2022?
Our 2020 OpEx, you know, yeah, 16.5 from Q1 to Q3 is 14.5%. If you know, if we increase our revenue as the momentum, then I think it will be maintaining around 14%-15%.
刚刚这些是我们先整理的，但陆续有进来一些问题，我们把它整理成几个产品别或者是其他。那因为刚刚管理层在整个Auto、中小、OLED、Auto这边提到比较多，就我们先从中小尺寸这一边，那公司刚刚有提到对于这几个产品明年的成长的展望，不知道对晶圆需求的情况是不是也可以提一下。
以中小尺寸来看的话，目前看起来wafer还是供应还是蛮紧张的一个情形。不过我们在OLED上面明年确实有增加了一些新的capacity，这个可以来提供给客户，在这上面的需求的增加，在OLED这里。那Auto这里呢，应该也有增加了一些的产能，那看起来这个Auto的需求还是相当的不错，尤其这个有电动车啊，在这上面明年的一些期待。
You mentioned about the growth outlook, particularly for small- and medium-size driver. On the flip side, you also provide some update on your foundry supply growth for this statement.
Well, the overall foundry capacity is still tight, but we do expect to increase our supply for OLED, so the OLED business are expecting to grow next year. Then looking at the automotive, the business is also very good, demand is strong, so we also will increase more supply for the auto also.
就刚刚这三个主要的，呃，主要几项产品中，TDDI已经领先业界在技术跟出货上，不知道您这边可以分享一下您对明年出货的成长的展望，还有明年的市场的成长的情况会是怎么样？
以TDDI来讲的话，它的penetration rate已经到一个程度了，所以我们认为明年在TDDI的成长的百分比会比较低，而在OLED方面的这个成长率应该会比较高。在手机的这个application上面，我们看到的情形是这个样子。
I just wonder if you can give more color on your TDDI shipment, your outlook as well as the market estimate for next year?
Well, the TDDI penetration rate is already pretty high, so we are not expecting a very high growth, but a slight growth for next year. As for OLED, we are expecting a much higher growth rate.
在过去这一年多，这个这一块TDDI的毛利率也上升了很多，那您刚才提到第四季的情况也还是相当不错，不知道说这个接下来您看明年的毛利率趋势，有可以给大家一个初步的想法吗？
我想因为整个的OLED的capacity呢，事实上还是蛮紧的，所以我们在这里的毛利率呢应该还是可以维持。那明年我们会增加一些新的产能出来的，希望可以提供多一点的capacity给这个市场。
Just wondering if you can share some early view in terms of the margin trend for the OLED product next year.
Well, mentioned earlier, the OLED capacity is very tight, so it's still under supply. What we expect is that gross margin should be relatively stable. We also will try to increase more capacity to support the market demand.
那你这边可以提一下在OLED这边的竞争对手的情况吗？
基本上我们在OLED上技术算是相当不错，而且在OLED的TDDI上面，我们最近的样品也已经出来了，我想这个应该是有机会是第一颗这个OLED TDDI这样的一个产品，我们在这上面的技术算是领先的。
Follow up on the OLED side, could you provide the competitive landscape for your OLED driver business?
Well, you know, as all of you know that our OLED technology is, you know, we are leading in the industry. Recently we also have already provided our OLED TDDI to our customer. I think we are still leading in that area.
另外，可能大家也蛮多最近在discussing，就是说，整个产业链有一些调整，在OLED这边，那不知道您觉得在这个两大手机品牌对台湾的TDDI会有一些委外的机会吗？
我想这个机会应该是有的，这个也是我们一直在努力的一个方向。
Given the rapid adoption for the OLED side, I just wonder if any outsourcing opportunity to Taiwan for AMOLED sensor in OLED side?
Well, we have no comment for specific customer, but the opportunity is there, and it's, you know, that's our goal to penetrate all the major brands. That's our goal.
那，回到比较成熟的TDDI，不知道您对——刚提到OLED的毛利，您觉得还是可以维持得相当不错，不知道在TDDI这里如果粗看，未来一季或者是明年呢？
TDDI 我想以现在来看，Q1 应该跟 Q4，我想比较应该变化也不会相当大啦，应该变化也不会很大。
We switch gears to the TDDI gross margin trend. I just wonder if you can provide some early thought for the margin trend?
Well, I think the Q1 margin should be QoQ relatively stable.
另外这边的产品也相对比较成熟，加上前几年中国的厂商也很快地采取，像是韦尔，那不知道这边你有特别感觉到一些竞争的变化吗？
目前来看，我们的客户对我们的需求目前看起来我们还是没有办法满足。
I also want to know the TDDI, the small legacy product, and also given the recent Will Semiconductor's acquisition of Synaptics. I just wonder if you can also provide some comment on the competitive landscape.
Well, currently what we see is that it's still not able to meet the needs of our customers, so it's still under supply. Yeah.
手机这边讲完了，那管理层刚刚也提到蛮多关于车用这一块DDIC的展望，那不知道这边还有没有特别，就成长的幅度、客户或者跟电动车或者毛利率，有没有一些想法可以跟大家分享。
有关auto这个方面的driver呢，我们现在刚刚成祖跟大家报告的，我们看起来明年的出货应该会比今年要成长哦，明年看起来，特别是在DDIC上面，使用在这个车用的这个CID的这个display上面，明年应该会有不错的这个成长，尤其使用在这个电动车上面的这个TDDI的产品。
You already mentioned briefly about your thoughts, your auto business next year. Just wonder if you can give more color on this topic?
Well, we are expecting our auto business in 2022 to outgrow 2021. Currently, we've been providing the TDDI solution to various customers, especially for the CID display. We do expect the CID for the EV penetration rate to go up.
那也可以分享一下，因为你这里这边看这个 auto 这一块，不知道对毛利率的趋势也可以跟我们分享一下吗？
我想应该毛利率还是可以维持的吧，还是可以维持。
also wonder if you can share your thoughts on the margin trend for the automotive driver business?
Well, I think we can maintain the automotive margins. Should not be a problem.
那在我们讲完几大主要的中小尺寸产品线后，您这边可以对您的过去这一两年提到的一些新产品，像是OLED的fingerprint、wearable的driver、OLED driver，甚至FTDI，这边也跟大家update一下你的schedule吧。
以这个屏下OLED，FOD，我们叫FOD，fingerprint over display这一个，目前Q4应该可以进入量产，那明年预计出货量应该会比今年要多，应该明年的出货量会大于今年。那像wearable方面的这个，尤其手表这里，目前是已经有进入量产了，那明年预计应该会比今年要出货会增加，这两个应该是现在的一个情况。
We already covered the featured product for your small medium size driver. Could you also provide an update for your recent new product such as the OLED fingerprint, the wearable or even the FTDI?
Well, our FOD product is going to get into mass production in Q4 and our wearable device, as for the smartwatch, is also getting to mass production in Q4.
不知道管理层这边中小尺寸还有什么需要补充的地方吗？那这边，我们现在到这个，大家也很关心这个大尺寸这边，那因为最近的这个产业的变化也比较大一点，第一点还是想请您提一下这个关于明年的、今年的供给的情况是怎么样的？
以我们现在来看的话，总产能看起来还是紧的。但是，我们看到的是说有些应用，它的 resolution 会往更高的方向来走，就是 resolution 的 migration，尤其是我们看到像 NB 啊，今年来讲，因为 Chromebook 占的百分比还是有增加，成长是有不少，但是明年来看的话，反而在 Full HD 这里用在 commercial 的 notebook 呢，应该是 penetration rate 会提高。所以我们看到的是 resolution 的 migration，明年应该是会有一些，upgrade，会有一些 upgrade。
[Foreign language], we now switch to large size drivers. The first question is about the supply for 2022.
Well, we still see that the foundries for the large panel driver is also tight. Of course, for the large panel driver, as Steve just mentioned, also on the demand side, we are seeing that the application is also moving towards higher resolution. For example, notebook, you know, the Full HD will increase the penetration rate as we move forward to next year.
刚刚管理层提到了这个今年的供给，那不知道在大尺寸，如果您觉得明年在出货量甚至在出货的营业额上面，明年有一个初步的想法呢？
目前来看的话，如果说这个 resolution 可以再往上的话，我想这个出货的量，肯定应该可以会有一些增加。
Just wondering you can provide some outlook for the large size driver into 2022 in terms of shipment or even the
Yes, as we mentioned earlier, if the resolution migration continues to next year, we do expect, you know, the worldwide growth for the large panel driver.
同样的，我想投资人一直也很关心，就是说像是苹果啊，或者是三星这边直接或间接对台湾的一些采购的这个机会，尤其是进入DDIC，不知道黄礼成可以跟大家分享一下你的想法吗？
我想这个机会相当不错。就如我刚刚讲的，这是我们一直在努力的一个方向。
Also, investor wondering if there's any outsourcing opportunity to Taiwan large size DDIC provider from either Apple or Samsung, directly or indirectly.
[Foreign language]. Okay, Steve just mentioned that we have some product already in mass production, but there are always good opportunity out there and that's our goal.
大家也还是很担心，就是说，很在意，就是说，不知道管理层对于价格跟毛利率的趋势，这有机会是持平、往上还是往下，如果就至少未来一两季来看。
就我刚刚跟大家报告，Q1看起来应该是变化不会很大，还是在可以控制的范围之内。不过还是那一句话，基本上毛利率或者是售价还是由供需来，supply and demand来决定。
Again, investor wondering, could you share the view in terms of ASP or margin trend into the near future?
Based on what we see at this moment, I think the Q1 margins. I don't think there will be big fluctuation for Q1 margin. Of course, again, all these depends on supply and demand. So far what we see based on visibility that we have, I think the fluctuation will be very small.
因为这一块的产品最算是消费的成熟，加上目前有新的这个大陆的产能开出，不知道郭总这边可以 comment 一下整体的竞争环境吗？
以现在来讲，就像我刚刚讲的，总体产能看起来还是没有看到有松动的情形，所以感觉应该看起来还是紧的。甚至像刚刚跟大家提到的，有些我们还在抓挪这个新的capacity。
Given the rising competition from China, along with more capacity there, I just wonder if you can provide some competitive landscape in this LCD IC market.
Well, currently the overall foundry capacity is still tight globally. You know, we are still working on, you know, expanding our new capacity to, you know, to get more and more supply. Basically, it's still tight globally.
那我们这边大概回答目前大尺寸的问题。那大家还有一些问题是关于我们的SOC。那第一个是想，因为在两个月也传到，有一个主要的晶圆供应商在第四季涨价，那不知道对你们SOC产品毛利率的影响会是怎么样？
SM DDIC，就如同我刚刚跟大家报告的，我们在成本上，如果有去增加，我们适时地跟客户做这个沟通来反映这个成本。在 SOC side 的方面，我们也是一样的一个做法。
Also, we recently heard a couple of foundry suppliers will raise the price in the portable. Just wondering the impact to your SOC product.
Well, you know, we keep our customers updated on the supply situation and help them understand the need to raise ASP and, you know, to order to secure capacity. We are working very closely with our customers.
刚刚我们几个产品都有稍微分享一下在明年的一些初步的成长的展望。不知道您这边也可以提一下，对 overall SOC 的明年有机会成长吗？整体而言，或者就个别几个产品可以提一下他们的成长 outlook，或者是给一些排序，谢谢。
以SOC产品来看的话，我们目前看到的是，应该明年在这上面，在营收方面应该还是会持续来增加才是。尤其在出货的数量上，像比如说像TV的SOC，目前我们看到明年应该还是有机会来继续往上成长。那在IP cam上面的surveillance方面的产品，明年看起来应该出货也会来继续增加。那像这个notebook来讲的话，由于明年的结构可能在Full HD的penetration rate也会比较提高。所以在这个T-con方面这个出货，它的这个价值应该也会来提升。或者像TV的120 Hertz，这些的产品应该都是价值上面的这个展示。所以我们认为明年在SOC方面的这个成长还是有一些可以值得期待。
Could you provide overall look or more detail on your SOC product for 2022?
Yes, generally speaking, our SOC revenue for next year should continue to grow. Looking at the unit-wise as the example for TV SOC, we do expect our unit shipment to grow next year. Our automotive surveillance also expect to grow all of next year. For example, the timing controller, we are expecting the value to go up. Like for notebook, Full HD penetration rate will go up. On the TV side, we're expecting the 120 hertz penetration also will go up. All these value up will help our business next year.
那不知道 SOC 这边，你这边有没有一些特别值得 highlight 的新产品？
没有，目前没有。Yeah, that's pretty much.
好，我再整理一下，看看还有没有一些其他问题。看到整体大家还有比较多在问的就是说，因为最近报纸有提到，产业或者联咏荣耀结构薪酬，请你提一下这个对你财务的数字或的人才上面的影响。
IC 设计 house，事实上我们的核心就是产品跟这个技术，所以人才是我们非常重要的一个资产。所以要持续提供员工具有竞争力的薪酬，还有良好的工作环境，我想是联咏我们持续努力的一个目标。由于现在看起来人才在市场上竞争得相当激烈，所以我们也必须要提供具有竞争力的薪酬。
Okay, also the follow up on the OpEx and also the recent news on your structure, salary rate. Just wonder can you give more implication to the talent recruiting as well your OpEx?
Well, as everybody knows that for IC design house, your core value is technology and the right product, competitive products. All these we need good talents to develop those products and technology. As you know, the current, you know, environment, it's getting more and more difficult to recruit. We need to provide competitive package to, you know, to recruit more talents. We are making such a structural, you know, change to attract more talents.
相关的费用补充说明一下，因为这个我们的营收和这个结构调整的费用来讲相较的话，其实影响是不是很大的，所以我们明年营业费用应该还是会处于持平的状况。
Regarding the OpEx, our CFO just mentioned that it will be relatively stable.
再整理一下，看看其他的。那如果大家还有问题的话，麻烦再text给我。那，刚刚我们就几个产品线，管理层都提到了一些想法，或者是这个成长，但是不知道说您可以整体的给大家一个整个——我们刚刚提到说SOC你有提到有机会成长，auto有机会成长，OLED有机会成长，那大算因为high resolution的量上面也有一些机会成长，整体的一个对于公司明年2022年的营收或者毛利率，您这边有一个初步的大趋势可以跟我们分享吗？
基本上来讲的话，刚刚提到的这些出货的成长，或者是有些是revenue成长，这是我们的一个方向，一个努力的方向。刚刚提到的这些成长，我们目前现在的进度来看的话，应该是有这样的一个机会。至于说毛利率来讲的话，我想大家都关心这个，但是基本上我个人的看法还是基本上毛利率还是由自己价值的展现来看，所以我对于我们的产品的开发，或者是技术的进展，我相信我们应该是relatively相对其他的竞争者，应该我们会更有这个条件来维持。
Management mention about the business outlook across some major lines such as auto, OLED, lifestyle driver, even SOC. Just wondering if you can provide overall outlook for your business for 2022 in terms of revenue or gross margin trend?
What we just mentioned earlier regarding some of the product line, those are based on what we see at this moment, and of course, for margins or for performance, it's all related to value, what kind of value we can bring to our customers. Basically in terms of technology or quality or supply capability, I think, Novatek is able to bring those kind of value to our customers. Of course, in the end, it all depends on supply and demand. Besides that, I think the most important thing is the value, what we can bring to the customer. I think so far we are doing a good job in that area.
[Foreign language] 尤其是经过过去这一两年的这个供应链的这个resilience的这种考验，客户呢更肯定Novatek呢，应该可以成为这个我们客户信赖的这个长期的这个伙伴。这个包括了产品开发、技术，还有这个交货的能力，跟质量。 Yeah, after these, the past two years, you know, our customers, you know, their confidence in Novatek has increased and in our, you know, the supply capability, the technology. I think that that's a good feedback from our customer.
关于成本这边，关于管理层也提到说今年的供给似乎是持续的吃紧，但是就不知道说——但是最近好像也有打听说，直接先进这边的涨价的步调会放慢，不知道可以分享一下你对于原材料这边，像今年是不是明年还是有可能要涨价，如果涨价有没有一个幅度的想法，那不知道在其他的原材料这边有没有一些下降的机会。
目前来看的话，wafer 基本上还是，整个供应的情形，以现在来讲的话，看起来供应还是很紧的，overall 的这个 wafer 的 capacity。那至于说其他的材料，目前我们看到的就是，COF 方面是有比较 weak 一点，就是 COF、TAB 他们会 weak 一点。那这个可能跟 TV 最近的这个需求比较 weak 也有一些关系啦。其他的目前我们目前是没有看到有什么特别。
Earlier, you mentioned about high foundry costs rise. I just wonder if the foundry cost will continue to increase year-over-year in 2022. On the flip side, just wonder if there are any ways you can reduce some of your component cost.
Well, overall the wafer side is still tight, so we're not seeing any, you know, sign of easing at this moment. The raw materials. As for the raw materials, we are seeing the overall material is still relatively okay, but they're still, you know, we have to see next year how things turn out. Currently, in general, everything is still kind of tight.
刚刚管理层在提起产品的时候，有一个似乎没有特别提到，可以 update 我们一下 FTDI 的进度吗？
目前我们FTDI的产品，事实上是已经送给客户了，面板客户呢，最主要是因为在这个performance wise呢，还在做一些这个tuning，所以短期内来看呢，要进入量产，目前是还没有时间表。
Also, I'm interested about one of your new product, FTDI. Could you provide the update of this product?
Yes. Our FTDI solution has been delivered to our customer, and they're in the process of tuning the product. So far at this moment, we don't have a MP schedule yet, but it is in the process, designing in process.
关于新产品这边，刚刚管理层有提到，最近的元宇宙这边有提到VR，这边可以再给我们多一点的八卦，或者说，联咏这边会有哪一些相关的产品。
基本上还是在跟 display driver 相关的，因为它是在头戴式的 VR 上的 application 上，所以基本上还是跟 display 相关的。它是在一个小的 display 上要有 high resolution 的这个 application，所以在功耗跟这个 resolution 上应该这个要求会比较高一点。
Could you provide forward color on your exposure to the metaverse?
Well, on some of the products or projects that we're working on, it will be more display related. As you know, for example, headgear kind of VR stuff. This kind of a display will be like for small area with high resolution and then very demanding on the power consumption side. Yeah. Any more questions? Time is about 4:20 P.M. So if there is any one more question, then we'll end the conference call. Okay, if there's no more questions, then thank you so much for joining in, and hope all of you have a good weekend. [Foreign language]. Okay, thank you all. See you next time.