各位投资界的朋友、媒体、投资人，大家平安。我是联咏科技的副总经理以及发言人陈建兴，非常欢迎大家来参加联咏科技2020年第二季的法人说明会。希望大家在防疫期间都平安健康。由于今天线上也有国外的法人参加，因此今天的法说会会同时用中文、英文并行。今天会议的议程如下：首先会由我这边先报告联咏科技的第二季的结果，接下来会由我们的王守仁副董事长针对第二季的结果做进一步的说明，同时也报告第三季的展望。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上传给我们，我们IR的主管Tony收到以后会帮忙用中英文发问，会由我们的王副董、周胜成财务长以及我用中文来回答各位的问题，再翻译成英文。
Dear investors, analysts, and media, welcome to Novatek 2020 Second Quarter Online Investor Conference. This is David Chen, Vice President and Company Spokesperson. I'll be the host for today's conference. In order to prevent the spread of the coronavirus, we have switched our investor conference to live audio webcast. Please be reminded that your questions can be sent to us by text. The agenda for today's event will be as follows: First, I'll be reporting Novatek's second quarter results. After that, our Vice Chairman, Mr. Steve Wong, will provide more details on our Q2 results and the guidance for third quarter. Following that will be our Q&A sessions. As mentioned earlier, if you have questions, you can send to us by text.
Our IR Director, Mr. Tony Tseng, will be processing and reading out the investors' questions one at a time, both in Chinese and English. Our Vice Chairman, Mr. Steve Wong, our CFO, Mr. S. C. Chou, and myself will answer all the questions in Chinese, and it will be translated into English later on. As usual, let us take a look at the safe harbor notice. Let's start with our 2020 Q2 financial highlights. Our net sales in Q2 was $18.6 billion, QOQ up by 10.18% from $16.89 billion, YOY up 14.14% from $16.3 billion. Our net gross profit in Q2 was $6.23 billion, QOQ up by 11.1% from $5.6 billion, YOY up 19.23% from $5.22 billion. Margins in Q2 was 33.48%, up 0.28 percentage points from last quarter 33.2%. Q2 was 32.05%, up YOY 1.43 percentage points.
Operating income Q2 was $3.16 billion, QOQ up 21.72% from $2.6 billion, YOY up 23.55% from $2.56 billion. Our net income Q2 was $2.56 billion, QOQ up 15.63% from $2.21 billion, YOY up 20.2% from $2.13 billion. The EPS for Q2 was $4.2 versus last quarter $3.63 versus last year same period $3.5. Looking at the other key index, our cash and cash equivalent in Q2 was $22.15 billion, QOQ up 11.11% from $19.94 billion, YOY up 8.34% from $20.45 billion. Account receivable Q2 was $13.05 billion, QOQ down 5.72% from $13.84 billion, YOY down 9.77% from $14.46 billion. The Q2 inventory was $9.46 billion, QOQ up 7.25% from $8.82 billion, YOY up 24.44% from $7.6 billion. Short-term loans Q2 was $1.13 billion, up QOQ 3.5% from $1.08 billion. The unit shipment for Q2 was 871 million, QOQ up 19.8% from 727 million, YOY down 6.24% from 929 million units.
Looking at the sales breakdown by products, Q2 SOC $6.18 billion, QOQ up 24.05% from $4.98 billion, YOY up 36.64% from $4.5 billion. Display driver Q2 was $12.34 billion, QOQ up 5.34% from $11.7 billion, and YOY up by 4.45% from $11.81 billion. We also are releasing our July monthly sales, which comes down to $6.74 billion, YOY up by 24.57%, month-on-month up by 15.2%. As you can see, that SOC comes down to $2.48 billion, driver IC $4.24 billion. If you look at the monthly sales for the first seven months, it comes down to $42.25 billion, YOY up 15% from $36.67 billion. Let's look at the more detailed numbers. As mentioned earlier, if you look at the first half of this year, the top line is $35.5 billion, up 13.6% from $31.25 billion.
Gross profit for the first half is 33.35% versus last year 32.41%. The overall gross profit for first half is $11.84 billion, up 16.88% from $10.13 billion. The operating expense for the first half is $6.07 billion, up 17.64% from $5.16 billion. The operating income for the first half is $5.77 billion, up 16.09% from $4.97 billion. The net income for the first half is $4.77 billion, up 16.44% from $4.09 billion. The EPS for the first half of 2020 is $7.84 versus last year $6.73. Let's look at the Q2 YOY numbers. The top line net sales Q2 are $18.6 billion, up 14.14% from $16.3 billion.
The gross profit Q2 is $6.23 billion, up 19.23% from $5.23 billion. The operating expense Q2 was $3.06 billion, up 15.07% from $2.66 billion. The operating income Q2 was $3.17 billion, up 23.55% from $2.56 billion. The net income for the Q2 is $2.56 billion, up 20.2% from $2.13 billion. The Q2 2020 EPS is $4.2 versus the same period last year is $3.5. Looking at the Q2 QOQ number, the top line net sales Q2 is $18.6 billion, up 10.18% from $16.89 billion. The gross profit Q2 is $6.23 billion, up 11.1% from $5.6 billion. The operating expense Q2 is $3.06 billion, up 1.91% from $3.0 billion. The operating income Q2 is $3.165 billion, up 21.72% from $2.6 billion.
The net income for Q2 is $2.56 billion, up 15.63% from $2.21 billion. The EPS for Q2 is $4.2 versus Q1 $3.63. Looking at the sales breakdown by products, SOC accounts for 33%, and the driver accounts for 66% of our total sales. You can see that the SOC proportion has increased. Looking at our cash and cash equivalents, in end of June, the second quarter, the cash and cash equivalents is $22.15 billion. Excluding the short-term loans, the net cash comes down to $21.03 billion. Note that account receivable, end of second quarter, $13.05 billion. It's down $793 million. The inventory level, end of Q2, is $9.46 billion, up by $638 million. Now I'll turn over to our Vice Chairman, Mr. Steve Wong, to provide us more details on Q2 results and the guidance for Q3.
接下来我们将我们的时间交给我们的王副总，针对第二季的结果做进一步的说明，同时也报告Q3的展望。
各位朋友，大家下午好。我是联咏王守仁。我想刚刚建新跟大家报告了这些数字，我们Q2的营运结果。Q2我们在营收跟净利应该都是创下公司成立以来季度的历史新高。这数字上算是不错，成绩算是不错。Q2的营收成长主要是来自SOC相关产品的出货增加。另外还有一部分是来自大尺寸驱动IC，因为新冠疫情的关系，像Notebook平板这些相关的需求也有不错的成长。小尺寸，尤其是手机这里，它的出货是稍微有减少在Q2这里。Q2的毛利率也比Q1大概增加了0.28个百分点。这主要是因为产品组合比较佳的缘故。所以Q2简单把这个结果跟大家做一个报告。 Q3的Outlook，我们现在来看，因为现在目前各国的政府除了积极在稳控疫情，还有加速疫苗的研发以外，也陆续有推出了一些纾困的计划跟刺激消费的方案，希望说尽快能够恢复经济的正常运作。但是在另外一方面，因为中美关系有一种紧张的态势，看起来有比较升级的迹象，所以可能对未来的一些经济的反弹可能也会有一些不确定的因素。 以第三季来看，以大尺寸的driver这里来看，因为新冠疫情现在目前还是还在延续，所以这些居家办公、远端学习，这些宅经济的需求看起来会从Q2延伸到Q3。所以看起来Q3在宅经济方面的出货需求，看起来仍然可以维持畅旺的水准，尤其像NB、平板，还有这些gaming monitor，这些大尺寸的需求，看起来还是可以延续到第三季。除了这个以外，在TV这里看起来也进入了传统的旺季需求，所以看起来大尺寸方面第三季的需求应该算是不错。 手机方面，现在看起来从应该从七月下旬开始看起来需求已经有逐渐恢复的趋势。尤其是来自TDDI IC的需求看起来是特别强劲。以我们的第三季的状况来看，TDDI的出货应该是会有不错的增加在第三季这里。 车载这里，目前来看Q3仍然还是相对的比较slow一点，还没有完全恢复，不过现在看起来Q4有比较好的迹象，车载的产品来看的话是这样。 以上的这些产品，SOC产品目前我们看到的就是第三季看起来对第二季还是仍然有相当强劲的成长。所以SOC这里看起来第三季也应该会有不错的增加。 所以整个guidance这样来看的话，我们预期第三季的guidance的revenue大概介于大概¥200到¥206亿之间。毛利率应该大概还是介于大概31.5%到33.5%之间。营利率应该可以15.5%到17.5%之间。 以上简单跟大家报告一下，就是第三季的outlook大概是这样。
Thank you, Steve. I'll translate what Steve just mentioned into English. Regarding the Q2 revenue, the growth was mainly driven by the increased shipment of SOC or what we call the non-driver products. The second point is the strong demand for large driver for IT-related products like notebook, monitor, tablet, which is mainly due to the pandemic. The overall small-sized driver in Q2 was relatively weak, so it was down slightly in Q2. As for the Q2 margins, Q2 margin was 33.48%, up 0.28 percentage points Q2.
This is mainly due to the better product mix. Looking at the Q3 outlook, what Steve just mentioned is that globally, governments are all trying their best to contain the COVID-19 virus and also trying to speed up the development of vaccine. We're also seeing that governments are aggressively working on stimulus packages and recovery plans, hoping to resolve the economic crisis. At the same time, we're also seeing that the US-China relations seem to be getting worse, and this has brought in more uncertainties to the economic recovery. We also see that the global pandemic is still spreading and has yet to be contained. Due to the lockdown, continuous lockdown, people still need to work from home and still need to work online or remote learning. This has, therefore, the need for the notebook, tablet, or gaming or monitor-related products will continue to maintain its strength through Q3.
We're also seeing that the TV demand is also picking up momentum and getting stronger as we enter into Q3, the seasonality. As for mobile phones, starting from end of July, beginning of August, we're seeing the demand is slowly recovering. Especially, we can see that the TDDI demand is picking up momentum pretty fast. We're also seeing our TDDI tablet will start to ramp up in Q3. Our automotive-related driver in Q3 is kind of slow, but we are seeing signs of recovery in Q4. As for SOC, we see that it's pretty strong in Q3. So based on the above, our guidance for Q3 is as follows. Revenue for Q3 will be from NT$20 billion to NT$20.6 billion. The exchange rate will be around 1 to 29.5 dollars. The gross margins will be around 31.5% to 33.5% range. The operating margins will be 15.5% to 17.5% range.
Thank you, Steve, for the Q2 guidance. Next, we'll move on to Q&A sections. Please be reminded to send us your questions, and Tony will process and will read it aloud. So please, Tony.
謝謝David。大家好，我是Tony。那Q&A的部分的話，我這邊會用中文先發問，然後我們副董事長會用中文回答，然後我會再用英文問。那David副總會再用英文回答，這樣的一個順序。那我們看到前面幾個問題是關於這個第二季的，尤其是關於SOC。第二季SOC成長24%季對季，想請問一下主要是來自於哪幾種產品？
第二季呢，SOC相關的產品呢，有不錯的這個成長。 我想主要是TV的SOC呢，還有Scaler，尤其是gaming monitor的這個high-end的這個Scaler products呢，有相當不錯的成長。另外當然在這個TCON呢，還有GPL呢，也有一些這個不錯的成長。我想主要還是來自TV跟這個high-end的這個gaming monitor的Scaler的這個成長，在SOC這裡。
Given strong quarter-over-quarter growth of 24% for SOC products in second quarter, could you give more color on individual product lines, such as which line outperformed others? Basically, the strong growth in Q2 is mainly driven by the TV SOC-related products. We are seeing the Scaler for the gaming monitor, the high-end gaming monitor. We are also seeing the timing controller and the power management-related products. So these actually contributed to the growth in Q2.
下一个问题，刚刚副董事长有提到第二季的这个大尺寸跟中小尺寸的季对季的表现情况，但是可以对于OLED DDIC跟TDDI的季对季的出货表现，也能够给一些方向吗？
以第二季这个Q2Q来讲的话呢，在Large Display Driver IC这里呢，我们大概有十几%的这个成长。我想这个从刚刚David的这个presentation资料里面，各位可以看到，这个是在Large Display Driver这里。那在Small Medium Size的Display Driver这里呢，以revenue来看的话，第二季是减少了一些。那这个减少主要是这个TDDI的这个出货呢，大概是持平的。那其实这个减少主要是来自这个TDDI的这个出货呢，是减少的。那这个OLED的这个driver呢，第二季来看跟第一季来讲是flat，是持平的。也就是说呢，第二季的中小尺寸的这个减少呢，主要是因为TDDI driver的出货呢，减少。但是OLED的这个driver的出货呢，看起来在第二季跟第一季来讲是持平的。
Could you provide quarter-over-quarter revenue growth figure for large-sized driver versus small-medium-sized driver in second quarter? Also provide the direction of some figures for the shipments for both TDDI and OLED DDIC in second quarter compared with first quarter. In second quarter, as you can see during the presentation, you can see the unit shipment for the large display driver IC actually Q2 went up by double digits. And as for the small-sized driver, Q2-wise, it's slightly down. It's mainly due to we can see that the TDDI was slightly down Q2 unit shipment, and the OLED unit shipment was flat Q2Q.
下一个问题是第二季的毛利继续创上市后的历史新高。那刚刚有提到除了这个产品组合外，不知道在NRE的金额方面是否也可以提一下，还有是来自于哪些产品？
这个NRE在第二季呢，我们是有一些的这个收入，大概有一亿多一亿八千万，大概有一亿八千万左右。那这个主要的这个NRE主要是来自一些这个SOC产品的一些这个NRE的这个费用。那这个ASIC product呢，事实上是我们也是未来的这个一个重要的一个方向。所以在这里我们会朝这个方向来做。至于说这个NRE在未来会有多少，这个是很难去做一些projection说到底是未来会有多少。只是说我们如果有一些ASIC project的时候呢，它会有一些NRE的这个收入。
You continue to post a record high growth margin in the second quarter since the listing and hit the high end of your guidance. Could you provide more color on your high-end products as well as your NRE income and from which products? We have $180 million NRE in Q2, and this is mainly from SOC products for the ASIC product. As you know, ASIC product is a trend for us, and we'll continue to try to get more ASIC products. Of course, if there's more ASIC products, there will be more NRE contribution. So it's hard to tell how much, but we'll try to secure more ASIC products moving forward.
谢谢。接下来几个也是关于第二季财务的数字。看到我们注意到第二季除了毛利提升外，营业费用率也比第一季有降低。想请教一下改善的主要原因？
营业费用率下降其实最主要还是因为营收的成长。其实如果用营业费用的金额去看，我们Q2对Q1是增加了2%。
We notice you not just improve your gross margin, but the operating expense as percentage revenue also reduced quarter over quarter. What are the major reasons behind this improvement? The operating expense Q2Q down slightly mainly because the revenue actually went up. Okay. But if you look at the absolute amount, Q2Q-wise, actually the operating expense went up by 2%.
下一個問題，投資人也是持續關注我們的這個存貨的情況。那他們注意到這一季的存貨金額繼續成長7%季對季，到達95億。那可以請財務長這邊解釋一下這個上升的原因嗎？還有主要來自於什麼產品？
這個第二季的這個存貨有一些增加，我想主要來自三方面。第一個就是說現在因為我們的這個SOC的產品在Q2、Q3都有不錯的成長，這些SOC的產品事實上它要做一些back end，所以它的cycle time是比較長的。所以這個也會造成這個部分的這個庫存的增加。第二個主要現在是這個我們的營收在Q2、Q3應該都會持續的這個continuously up，所以我們在存貨這裡也會準備這個多一點。第三個是目前看起來這個foundry supply這個比較看起來比較緊，比較tight。所以在這裡來講，我們也有這個cycle time也變得比較長，所以我們在這上面也會多準備一些貨。謝謝副董。
We notice you had a big jump in inventory at the end of the first quarter, and now second quarter lease amount continues to increase by 7% quarter over quarter. Could you give us some more color on lease and from which products? Yes, the inventory level in Q2 actually went up slightly Q2Q. The main reason behind it is three reasons. First of all, as you can see that our SOC product line, it's actually pretty strong. A lot of the SOC products actually, the back end and altogether, the lead time is actually longer. So due to the cycle time, that will have some impact on our inventory level. On the other hand, as you can see that our revenue is also growing, so we need to be prepared for the revenue growth. So the overall inventory level normally it will go up. Of course, I mean all of you know that the current foundry situation is very tight. So we need to add some inventory to prepare for that.
最后一个关于第二季的财务数字是我们注意到第一季是正的业外一亿多，到第二季是负的四千多万。那这边可以解释一下里面主要的项目是什么，有比较大的改变吗？主要是第一季的台币贬值了大概是0.82%。那产生的汇兑盈余是9,100万。那第二季刚好台币是升值了大概1.97%。那造成的汇兑损失是9,600万。那这两季的差异就是所造成差异的原因。
Well, the net non-operating actually is mainly due to forward flows.
我们目前把第二季主要对数字的回顾的问题结束了。那我们现在开始主要是对于之后的一些展望的问题，我们这边开始整理。那第一个问题就是说，因为刚刚副董事长有提到第三季季对季的成长应该是以SOC的最高，所以我们会以SOC的产品先开始讨论。那第一个问题是想请教一下关于TV SOC第三季的成长的展望是怎么样？
今年之前副董事长有提到看法是蛮乐观的。那不知道现在的看法是有什么改变吗？以我们第三季的这个SOC相关的product呢，会有不错的成长，主要最大的部分金额最大的部分应该会来自TV SOC的这个single chip这个control TV controller的这个成长。那以这个今年来看，我想我们在market share上呢，应该是有一些gain，所以今年事实上持续有这个不错的这个成长。这个预期呢，跟我们原来之前呢，事实上是一致的，并没有说有很大的这个不同。
Given the more positive outlook from SOC product into the quarter three, some questions will be answered from the SOC side and also by product group. The first question is, could you give more color about the TV SOC for quarter three? And also your view for your growth outlook for TV SOC product in 2020, and what are the reasons for the strong growth? Okay. The Q3 SOC, the strength actually is coming mainly from TV controller of the TV SOC related product. The growth in this TV SOC is mainly due to the market share gain. Actually this is pretty in line with our expectation. So this is moving forward as expected.
請問一下在這一個部分，晶圓的供應有緊缺嗎？
在TV SOC的所使用的大部分都是先進的製程，特別是在22的28奈米的製程，現在看起來供應商還是比較緊一點，所以cycle time也是有比較長，變得比較長一點。
Is the foundry supply, I think at the 12 inch, tight at this moment? Yeah, as you know, the SOC product mainly uses advanced nodes like 22 nano, 28 nano, and these nodes actually the supply and demand is relatively tight, and the cycle time has increased.
不知道副董事长这边可以提一下，目前有感觉看起来这一个产品线明年成长的展望吗？因为今年看起来这个您刚刚有提到市占率有持续提升，所以明年的话这边的有什么初步的想法吗？
在TV的SOC这里我想我们会还是会持续的去开发一些这个新的产品，像8K的TV啦，或者是这个high picture quality的这个TV的SOC chip啦。所以我相信我们在这上面应该未来还是乐观的，应该还是乐观的。
Can you provide some initial outlook for 2021 for the TV SOC product? Well, we still maintain our positive view on our TV SOC product as we are developing a lot of new products for the TV related controller, and we also are developing high picture quality products. So based on that, we are positive for next year TV business.
接下来问题是关于所谓的camera SOC主要大家很关心所谓监视器这一块。那不知道今年第三季跟第二季的这个成长的展望怎么样？那今年整个看起来的成长的情况怎么样？那有没有什么特别的原因让造成这个成长？
关于这个surveillance products事实上连有我们在前端所谓front end的这个IP cam，还有这个后端就是DVR跟这个NVR，事实上我们这两个前端跟后端的这个产品事实上都有琢磨，都有开发。那我們在這上面看起來在design wing這裡看起來進行的都蠻順利的。那今年呢，因為這個新冠疫情的關係，事實上對這個所謂的surveillance product事實上是有比較衰退的這個跡象。不過以現在來看，第三季看起來應該可以，目前看起來可以比第二季恢復，意思就是說可以恢復這個看起來可以成長。那Q2Q來看的話是這樣。
You mentioned also interest about the camera SOC business. Would you also provide some outlook for the quarter over quarter growth or the whole year growth for 2020, and what are the major reasons behind this trend? As you know, regarding the camera SOC, we have two parts. First is the front end, which is the IP camera, and also on the back end, which is the NVR or DVR. We have both the products. So far we are making a lot of progress in the design wings and in various clients. But the current COVID virus actually has impacted the demand. So a lot of the demand has delayed a bit. But we are seeing that as we move forward to Q3, we are seeing the demand is picking up momentum as we move to Q3.
另外一個最近大家也比較關心的就是說原本在這一塊海思是最大的這個player，那可能受到美國制裁的話有可能會要退出這個市場。那不知道目前聯詠有感受到這個增加的一些市場機會嗎？
這個我想在未來應該對聯詠來講是一個positive的。但是之前呢，因為有這樣的一個情況呢，所以事實上客戶呢也有keep的一些inventory，所以inventory可能會有一段時間要來這個消化。不過in the long run我們覺得這個應該是一個positive這個to Novatek。
Given the potential actually from the HiS ilicon after the US sanction, what's the opportunity and outlook for this business line next year? Well, in general, I mean the overall situation definitely will benefit Novatek . But the current situation is that due to the trade issue between the US and China, there's some inventory level been built in the channel, and it will take some time for them to digest those inventory levels. But in the mid to long term, we look at it in a more positive view on this business.
因為投資人對這一個行業算是比較不了解，可以請管理層分享一下大概這個市場的量或者營收的規模，還有主要的競爭對手會是誰在這個產業？
目前來講競爭對手當然是有幾家，但是基本上我們這目前在市場上的這個份額呢應該market share還不是很大，所以我想這個在未來呢應該還有不錯的這個成長的空間，尤其是未來市場對這個surveillance product應該還是有這樣的這個持續的這個增加的這個需求。
Based on less familiar with about the surveillance SOC market, could you share some information or color about the market size, the market share, or about the competitive landscape? Well, in this camera related product SOC product, there are few competitors. But for Novatek, our market share is still small, so there's a lot of room for growth as we move forward. You can see that if you look at the surveillance, the demand is still there. So we'll continue to work on that, and we do expect our market share to grow as we move forward.
接下来是关于这个TCON也是联咏这里有市占率第一的。不知道这个第三季跟第二季的成长比较起来怎么样？那今年全年看起来的展望如何？那有没有什么特别看到成长动能的原因？
第三季呢，对第二季呢看起来这个revenue还是成长的在TCON这个上面。那主要的原因是因为这个刚刚提到的这种像notebook啊，这些的这个宅经济的这个需求的成长，以这个in terms of units来讲的话，事实上还是持续增加的。所以我们在Q3对Q2呢，又加上Q3呢TV的这个product应该也开始进入这个旺季，所以我们在这上面会看到TCON的产品还是Q3还是会持续的增加。那当然这个还有一个事情就是说有竞争者呢应该在年底呢应该也会退出这个TCON的这个市场，所以对Novatek来讲这个应该是正面的。
About T-CON, which Novatek ranks number one in the world, could you also provide the outlook on quarter over quarter for quarter three or for the whole year and what are the major growth drivers for your business? Well, regarding the timing controller, due to the pandemic, we are seeing that working from home, some of the IT related product, the demand is still strong, so we are expecting the Q3 T-CON revenue to grow QoQ. The other thing is that for the timing controller, we also supply for the TV.
So if you look at the TV product, it also needs timing controller. As mentioned earlier, as we enter Q3, that's a high season for TV product. So we are expecting the TV controller business also to grow up. So as a whole, the demand in Q3 will be better than Q2. On top of that, we also heard that there is a player exiting in the T-CON market, so this will benefit Novatek.
還有一個就是說想對產業這邊有多一點了解，第一個這邊大家也很熟悉，第一個不知道跟譜瑞競爭的狀況在T-CON的進展情況是怎麼樣。第二個我們也注意到像譜瑞最近有透過幾個併購，也加速進入其他的interface的IC的產品，不知道聯詠這一塊的有沒有什麼規劃？
在只要跟面板相關的這些的interface或者是有這個介面的這些interface的這個chip，我想聯詠應該我們都會都會去進入。那這個最主要是我們在這產品線呢會build up一個full series的這個一個complete series的這個產品在這個T-CON上面。所以這個應該說是我們會全部來做啦，因為我們全部都會來做各種interface。
Based also would like to know the competitive landscape at the T-CON such as versus the Parade as well as any plan for some new interface IC products. Well, as you know, we are in the display market and for panel there's a lot of there's various types of interface that you need to provide for our customers. So for nova tech, we'll provide the full series of product and all the various interface that's needed in the market, we'll have them ready for our customers, so no doubt about that.
关于SOC最后还有一个问题就是说产品线关于power，不知道今年第三季的成长的情况怎么样？
那成长动能的主要原因是什么？由于现在看起来这个因为这个去美化啦或者是这个市场的各种的这个需要的这个power chip看起来是有增加的这个情形，所以我们现在来看第三季对第二季的这个需求还是相当不错。那尤其是像有一些这个mini LED的backlight这个需求看起来有陆续有一些这个新的这个demand出来，所以我们预期这个第三季比第二季应该会增加，应该会增加。
Now moving to the next product line is SOC about the power, so what's the outlook for quarter three on the power product? What's the major reason for the growth? Looking at the power product line, we can see that due to the US, China, the trade issues, actually this has benefited Nova tek, and we are seeing that we are expecting Q3 to be better than Q2. In the power related product, we have also introduced our mini LED backlight, and we are seeing demand picking up momentum in that area also.
最后SOC刚刚投资人问一个问题就是管理层提到这四个产品，但是不知道大概可以告诉我们这个四个产品在SOC的大概在第二季的营收占比的情况大概是一个怎么样子？
我想这个整个overall来看营收占比应该会比第二季可能会稍微增加一些啦，会稍微增加一些营收占比。
We just discussed the four product lines within the SOC. Wonder if you can give a little bit more breakdown within the SOC product from these four lines? Well, we are seeing that as mentioned, as Steve mentioned earlier, the SOC growth will be the strongest in Q3, so we are expecting the overall SOC contribution in Q3 proportionally will increase in Q3.
那我們剛剛結束目前關於SOC的問題，那線上很多投資人也問關於這個driver的問題，那我們看到是中小尺寸比較多，所以我們會先從中小尺寸開始。那第一個就是想關於問一下關於OLED driver第三季的出貨跟第二季的比較，那不知道現在可以提一下全年的展望的情況是怎麼樣嗎？
以OLED driver這個來看的話，由於現階段看起來這個今年的主要的目標是要去ramp up這個5G的這個手機，所以目前有不少的這個5G的這個手機有一部分採用了這個LCD為了要降低這個成本，因為現在看起來中低階的這個5G的手機看起來賣的是比較好。那最主要的原因是今年要去ramp up這個5G的這個手機，所以我們現在來看OLED的這個driver IC呢，第三季對第二季可能會稍微略微減少一些，會稍微略微減少一些。那如果以整年來看的話，我想可能上下半年大概是50-50吧，你現在來看的話可能大概是這樣的一個狀況。 那這個還有一點就是說，因為現在看起來高階手機賣的比較不好，所以大家用了LCD，所以TTDI的變成增加。不過明年來看的話呢，因為當這個5G這個進入了以後，可能會有更多的這個application會出來，那我們認為預期啊，明年這個OLED應該還是有相當大的一個機會呢，在這個5G的手機的使用呢，應該還是會增加，因為這個portion還是會增加，主要的原因是剛剛講的這樣。
Based on the small medium size driver about the OLED driver, could you provide some guidance for the quarter three versus quarter two in terms of the shipment, as well as the second half versus the first half shipment, and any some early indication for next year outlook? Well, the overall OLED unit shipment in Q3 will be slightly down, but looking at the for the full year, I think the first half and the second half will be 50-50% roughly. What we are seeing at this moment is that, as you can see, a lot of the country are trying to ramp up, especially China, trying to ramp up the 5Gs.
But in order to control the cost, actually a lot of them actually adopted LCD display for the 5Gs model. Because of this, we are seeing that a lot of the TDDI demand has gone up quite strongly in Q3. What we expect is that as the 5Gs ramp up this year and moving forward to next year, the 5Gs, there will be a lot of new applications which will drive the demand for OLED. So we are expecting the OLED for next year should go up as the 5Gs unit shipment goes up, and the new model definitely will adopt more OLED.
接着之前管理层有提到有新的产品OLED TDDI这边也在进行中，这边可以给我们一下这个update的情况吗？
这个OLED TDDI目前我们是在开发中，不过这个也必须要配合这个panel makers在这上面的这个技术的这个进展。现在看起来开发是一切顺利在进行当中。
Management did mention about the OLED TDDI last time, could you provide some update for this product? Well, the OLED TDDI we are developing that very smoothly as scheduled, and so far we have full control of the technology, there's no problem with that. But the only thing is that we need to work very closely with our panel maker, so we have to wait for the panel maker to have the panel develop in order to adopt the solutions. So basically everything is as scheduled, so things are going on smoothly on our side.
那我们接着转到TDDI，大家也投资人还是持续非常的关心，想了解一下今年第三季的出货量跟第二季比较起来大概会是一个怎么样的一个趋势。
就像我刚刚所跟大家报告的，由于这个第三季看起来手机的这个需求看起来有这个恢复的这个情形，增加主要都是来自这个TDDI，所以看起来这个TDDI第三季对第二季的这个应该会有相当大幅度的成长，应该会有相当大幅度的这个成长。
Switching to the TDDI, which investors are very interested, could you provide guidance for your quarter three outlook? As mentioned earlier, we are seeing that the mobile demand is recovering in Q3, and we also mentioned that a lot of this demand will be related to TDDI, so we are expecting our TDDI demand in Q3 to be pretty strong.
您可以提一下似乎您的TDDI表现一直都很好，您可以提一下目前您的市占率的趋势，还有目前初步看明年市场的size，还有您这个出货的展望会是怎么样？
以现在来看的话，我们的market share应该是以今年来讲应该是可能又增加了一些，应该又增加了一些。那明年来看的话，可能现在可能到年底还有一些变化，可能到年底我们再来做这个预测可能会比较适当一点。
Could you share your market share trend as well as some initial view for the outlook for next year? Well, as mentioned about market share, from what we see is that our market share has increased this year, I mean based on the unit shipment that we actually ship. But as for the whole year, it's still difficult to give a clear number; we have to wait till the end of this year to give a more precise number. But in general, our market share should increase this year.
另外大家对TDDI非常关心的就是产能供应的情况，最近也有很多消息关于这个晶圆可能要调涨的情况，不知道实际的状况是怎么样。如果调涨的话，公司会怎么样应对，会对毛利率有影响吗？
目前来看的话，由于这个TDDI的这个demand成长是增加的，所以以这个foundry supply的这个来看的话，目前确实是有比较紧张的这个情况，确实是有比较紧张的情况。如果说这个上面如果有任何的这个售价上的这个成本上的这个调整，我想我们也会跟客户沟通，可能在这上面也会必须要做一些这个成本上面的这个反应，大概是这样。
We heard the foundry supply things pretty tight, and the foundry supplier target to raise the price. Can you comment on that? And if that's the case, will you raise the price afterwards? And any impact to your margins? Well, as mentioned earlier, the demand we're seeing for TDDI is pretty strong in Q3. Due to the strong demand, the supply and demand on the foundry side is also getting tighter. And because of this, we are also keeping a close watch. If the foundry price goes up, we'll discuss with our customer, and we'll try to see how to reflect those costs in order to secure more capacity. So we'll work very closely with our customer.
最后关于一个TDDI，也是上个礼拜五联发科开完法说会有公告，他处分掉了这个毅力到一家这个PE Firm。不知道您对这个的决定对市场或对联咏会有什么样的一个影响？
目前我们暂时是看不到有什么特别的影响。
Yes, we noticed MediaTek announced to dispose its holding Ilitek, which acquired back to 2015 to a PE Firm in China. Have you seen? Do you expect to see any impact to the market or NomarTech for TDDI business? Well, regarding this, we don't see any impact so far.
那接下来大家也是非常關心我們聯詠在這邊的一個新產品。那想請問一下關於這個屏下 OLED 的這個 fingerprint 的量產進度的情況是怎麼樣子？
目前我們現在跟客人那個正在持續的進行這個調試當中，就是在這個手機上面的這個調試。應該一切順利應該沒有問題，應該會在今年年底以前呢，我們應該會進入這個量產的這個階段。
Could you provide some update on your under display fingerprint timetable? Well, so far our OLED FOD, we are working very closely with our customer. We are fine-tuning the product. If everything goes well, so far we are expecting it to go into mass production end of this year.
那由於這個是新產品，市場也繼續成長。不知道管理層可以分享一下您對這個產品明年有一個出貨或營收或市佔率的初步想法嗎？
由於我們是這個剛開始要進入量產嘛，所以在這個出貨量或者營收的這個預估呢，這個可能我們到年底可能才會比較適合來做這個預測。
Could you provide some your expectation for the revenue or shipment number for next year? Well, as you know, fingerprint, we are late comer, so we just started to enter into mass production most probably end of this year. So it would be better that we wait till the end of this year to give more solid numbers. But at this moment, it's difficult to give a number. But so far we are positive that it should go into mass production end of this year.
投资人也是很关心另外一个这个划时代的这个所谓的FTDI整合性的产品，那可以给我们一个时间表。那还有我们也听说另外一家像神盾跟这个Focal也有在做这个产品，不知道这个跟他们的产品相比的情况是怎么样。
有关这个FTDI，事实上我们在技术上都是完全自己开发，在技术上也都是完全有自己掌握。那跟面板厂之间的这个配合的进度呢，看起来也是蛮顺利的。只是说这上面要进入量产可能要再去观察在面板在这上面的这个fingerprint sensor的这个技术的这个进度，才有办法去做比较正确的这个判断。不过以现在的这个进度来看，今年内要进入量产的机会事实上是比较没有，明年可能看这个进度，这个面板厂这里的开发的进度呢，可能明年来看可能会比较能够clear。
On the fingerprint product, could you provide an update on your integrated product FTDI and also your position versus your competitor such as EGIS with FocalTech? Regarding the FTDI solution, as you know, all of these technologies are all developed internally. So we have very full control of the technology. So far product-wise, I mean developments are everything very smooth. We are working very closely with our panel maker. As to the mass production schedule, I think it won't be this year. It will be more of a next year story because we need to work very closely with our panel maker, especially the panel maker has to improve the fingerprint sensor on the panel side. So we'll wait for the technology to be more mature, and it will be most probably for next year, not this year.
最后关于这个中小尺寸，大家也很关心之前管理层提到的一些新产品的进度，像wearable的OLED driver还有mini LED driver的进度。我不知道目前量产的情况怎么样。对于明年的出货量或营收贡献有初步想法吗？
有关wearable的OLED driver，现在目前我们在跟客人都在design in当中，这个在今年可能不会有很大的营收贡献，可能要到明年。至于那个mini LED driver，现在看起来应该在Q3，Q3可以进入这个小量的量产，Q4应该可以进入正点的mass production。主要是因为今年的COVID-19的原因，所以有一些public display，这些事实上在市场上的demand事实上比较weak一点，这个也有影响到了这个mass production的schedule往后延。
As for others more mini size driver, particularly for new product, could you also provide an update on the wearable OLED driver as well as the mini LED driver, and any view for your next year target? Regarding the small size wearable, our product already launched, and it's in the design in process, and things are moving on very smoothly. We are expecting this to go into mass production next year, most probably next year. The other product line you just mentioned about mini LED, mini LED, this is for the display, okay?
So we are seeing that in Q3 our mini LED display will go into small volume production, and in Q4 it will go into larger volume production. So the overall schedule for the mini LED display has delayed a bit because of the COVID-19, because a lot of the public display the demand has come down because of the COVID-19. But we are seeing that the most significant volume will be in Q4, but it will start in Q3.
大家也对这个新产这些新产品的话想了解一下这个主要产业的竞争对手，那想知道联咏相对的利基在哪里。
以这个mini LED driver来讲，我们事实上除了这个driver以外，我们在controller呢，这里都完全有这个技术的这个能力，而且这些技术的这个development呢都是在我们自己家里面，相对于只做这个driver的这个公司是不太一样的。
Could you also provide a little bit more color on the overall industry and also your edge versus your competitors? Well, regarding the mini LED display, besides driver, the other very important product is the controller, which helps to interact with the driver and the controller. And as you know, New A Tech is one of the very few that has the driver technology and the controller technology, so it's all developed in-house. So we have better, you know, in that case we can provide a better solution, a total solution for our customer.
我们这边大致线完成了这个中小尺寸的部分，我们现在到最后的这个大尺寸的部分。那第一个就是想了解一下您这边大尺寸的第三季相对于第二季的展望是怎么样。那我们也注意到上半年的营收年对年衰退，不过似乎到7月慢慢有好转，那也可以分享一下之后看起来的这个展望是怎么样吗？
目前这个对于large display driver IC啊，就像我刚刚讲的第三季看起来需求是相当不错，尤其是刚刚提到的这些IT的product还会持续的，还有这个TV这个在第三季应该也会再上来。但是呢，由于这个目前的这个foundry supply的capacity呢，事实上是比较紧张一点，所以呢，也造成我们这些cycle time也变得比较长。所以在revenue的growth这里呢，也相对有受到了一些限制，会受到一些constraint。不过总的来讲呢，QOQ应该还是会有正向成长的，QOQ还是会有正向成长。
Now we switch to the large size driver business. Could you provide guidance for your Q3 versus Q2 and any outlook for the rest of this year given it's trending to positive year over year from July versus year over year decline in the first half? Regarding the large display driver IC, as mentioned earlier, if you look at the IT product or the TV line, because of the COVID-19, the IT related product demand has gone up, and then the TV entering the high seasonality. So overall Q3 demand is positive. But there is one thing because of the tightness in the 8-inch foundry and the cycle time has been extended, and this will actually become a constraint to our growth. But in general, QoQ basically our large panel driver will grow QoQ. But as I mentioned, the foundry tightness is one issue that will limit our growth.
剛剛管理層有提到這個晶圓供應很緊缺，最近這個也有很多版面提到。那我不知道這個第一個漲價的情況是什麼時候會發生，幅度會怎麼樣。那公司這邊對價格或毛利這邊會有怎麼樣的一個影響。那再來就是好像像昨天世界先進也提到八吋可能明年都會緊的話，那不知道對公司在產能的規劃上面有什麼計劃。
确实在八寸的供应呢，确实是这里是比较紧张一些。那当然这个我们也会在这里来加强sourcing的这个能力，这个希望说这个现有的供应商也能够增加这个supply给我们，这个我们会持续来跟我们现有的这个foundry supplier来这个协商。那至于说比较紧，那如果说在成本上有一些必须反映的，我想我们也会跟这个customer呢在这里这个协商看怎么去反映这个成本。
Yes, you mentioned about the foundry supply has been a constraint for your shipments, so we also heard they plan to raise supplies. Just wonder how you cope with this as well as were you raise supplies afterwards as well as any impact to your margins? Well, you're right, I mean the 8-inch fab is very tight at this moment, and I think this is no longer news, everybody knows that.
So what we are doing is that we are asking our existing supplier to increase supply to us, and also we'll be trying to try to get more supply from various fabs. So we are working out with our current supplier. Of course, currently due to the tightness, I mean the foundry price of course might go up. So in that case, we'll also negotiate with our customer how to reflect the cost. The main purpose behind that is to secure more capacity.
接下来问题也是关于大尺寸的，那这也是最近都在一些亚洲的版面看到，就是说对于这个不知道现在从韩系这边的客户直接或间接的占比是怎么样。那做他的产品有没有什么特殊的门槛，或者是说他的单价或毛利会不会比较高？
我想这个大家应该也都知道，就是有关韩系的这个panel makers呢，看起来从今年开始陆续到年底应该会慢慢的退出这个LCD的这个display的这个市场。那当然他们退出了以后呢，有些也就转去outsourcing。那当然这个outsourcing呢，由于这个韩系的这个厂商，由于他们之前的这个interface是比较unique的，那之前有些我们是只有Novatech做这个这个特别的这个driver，这个unique interface的这个LCD driver。所以对Novatech来讲，它应该是一个benefit，它应该是一个benefit。至于说这个毛利，我想这个应该跟一般的这个大尺寸的产品的毛利应该也是差不多了。所以在这里来讲，以这个出货来讲，我们应该是这里可以benefit到这个韩系客户LCD display的这个退出这样。
I think you mentioned about you benefit from the increasing outsourcing from Korean customers. Could you provide some figures such as representative revenue from indirect directly from Korean customers? Also wonder if there's a higher entry barrier to produce their product with higher ASP or even margin? Well, due to the Korean LCD display player existing in the market, and they are more outsourcing to like China, to Taiwan, and this of course benefits Novatek, and we are seeing the increased demand from the Korean player from outsourcing. As you know, the Korean panel maker, they have their own unique interface, which Novatek provides those kind of interface. So because of that, we do benefit from the structural change, and we are gaining share in the large panel driver. As to gross margin, I think this is a pretty similar margin compared to the others, pretty much similar.
刚刚管理层提到，因为这个界面是很unique，所以想知道基本上联咏是这种单子如果放出来的话，会是一个主要供应商吗？或者有一个大概是市占率怎么样的一个估计？那除了这个面板转厂外，除了driver的business外，有看到其他产品的机会吗？
主要是这个刚刚提到，当然他现在的driver的供应商也是会持续供应嘛，只是说他会增加了这个我们在这上面的这个机会，但是他现在的供应商还是会持续的去供应。那对我们来讲，对Novatech来讲的话，那等于是增加了一些这个market。
The Korean outsourcing business, who are your major competitors, and do you have any estimate for your share for this outsourcing business? Well, as you know, the Korean panel maker, they used to have their own in-house supply, and as they outsource the panel, they'll continue to use their in-house in certain proportion, but they'll release more to the outsourcing, and that will benefit Novatek in the sense that our pie actually got bigger, and we can share a bigger share of that. So those are definitely, you know, benefit Novatek.
最后大家也关心说联咏现在已经是大尺寸中最大的供应商，大概share有到25到30个percent。在韩系，尤其三星陆续关厂，甚至LG也可能在追随他的脚步下。您这边有一个中长期，您觉得你在大尺寸市占率的一个目标吗？
我想这个市场的share由于刚刚讲的这个韩系的这个outsourcing，我们在large driver这里应该是会market share应该是会稍微再持续的增加一些。至于说这个目标，这个很难去predict，但是看起来definitely应该这个market share应该是会增加的。
Yes, just wonder given the benefit of Korean outsourcing at your driver business, which you already ranked number one with 30% market share, just wonder if you have any target for the market share in the mid to long term? Well, because of the structural change, definitely our market share will increase, but as to what extent is hard to predict at this moment, but we are very positive.
目前呢，可能要解决的呢，短期内要赶快解决就是foundry supply的这个tight的这个问题呢，可能要先解决才有办法去谈这个毛利share。
Okay, Steve just mentioned another issue is that, you know, in order to grow market share, we have to resolve our foundry supply issues. So far, the 8-inch foundry supply is still tight, and it's not sufficient, and we are working hard to resolve that problem. Once it is resolved, then of course our market share will go higher up.
刚好有个投资人进来问，那刚刚也他们也关心您这边提到很多8吋晶圆很紧的情况，那不知道您这边转到12吋的进度情况是怎么样？
以我们现在来讲的话，8吋还有12吋应该都会去使用，不过看起来大部分现在还是在8吋上面为主，所以基本上还是以8吋的这个需求来看。12吋长期来看是不是有竞争力，这个我们后面再可能还要继续的去观察。
Yeah, you mentioned about a lot of constraints from the foundry supply at 8-inch. Just wonder if you are considering to switch down production into the 12-inch stack for your life size driver. We'll use both 8-inch and 12-inch, but basically at this moment the majority of our large panel driver is still using 8-inch, and in the long run we need to look at the competitiveness of 12-inch versus the 8-inch. So, but currently the majority of those are still in 8-inch.
这有一位投资人接着发问说，那您刚刚也提到这个大尺寸这边的订单很紧，那您不知道目前出货的满足率的情况是怎么样，还有您觉得有没有观察到有可能double booking的情况？
目前来看的话，double booking的情况应该是不会有的，因为客人看起来目前应该说相当有信心。我认为应该是double booking的情况，因为我们也会去过滤这个客户是不是有没有double booking的这样的一个状况，在做出这样的一个forecast。
Follow up question about the foundry supply. Just wonder what is your procurement ratio at this moment, and are you worried about any double booking at this moment? Well, we are not that much worried about the double booking issue because we do look at the demand and look at the market. So currently I think that's not a big issue for us.
目前這邊產品的部分的問題目前結束了，那有幾個這個大家比較關心公司整個的一個大方向，第一個就是關於產品的策略。那我們看到公司在一些新的產品，不管是OLED進入到像mini LED，那我不知道這裡還有一些什麼樣的一個方向，那是不是有一個這個營收占比或者一個中長期的方向，那也可以提一下這些新產品的毛利跟公司現在的平均值比較起來是一個怎麼樣。 過去來講的話呢，display是比較focus在這個LCD上面，那事實上各位最近也可以看到除了LCD以外呢，像OLED啦，或者是這個mini LED啊，甚至這個mini LED display或者mini LED backlight啊，各種的applications呢，事實上都出來。那聯詠這裡呢，我們身為這個display這個這裡的一個主要的一個player呢，所以我們在各種的這個display的這個technology應該都會去開發，各種產品應該都會去做，這個也不是只有表現在這個display driver上面，甚至跟driver相關的像controller啦，或者是timing controller啦，或者是這個scale controller啦，我們也都會去琢磨。所以我們長期的目標呢，就是各種的這個display technology呢，我們都會去琢磨。
About the overall directions, first is about your product strategy. We notice you have continued to increase the revenue contribution from some new display product. Just would like to know if you can share with us some big direction or what percentage of revenue from this product, any mid to long term target, and any kind of idea about the margin profile for this new product versus corporate average at this moment.
Well, regarding our mid to long term product strategy, as you can see that in the past, we've been always positioning us as a smart display total solution provider, and in the past when people talk about display it's mostly related to LCD TFT, but as you can see now it's moving to OLED, moving to mini LED backlight, mini LED display, and various others. And for Novatek, we'll continue to develop all the various advanced display technology, and not just driver, but controller, scaler, enhanced picture quality, and all these will be considered for our mid to long term technology roadmap. So for us, we'll be still focusing on display, but it will be very broad, and it will cover all the technologies.
再來一個問題是關於明年的展望，在今年這個疫情的影響下，公司還是有營收很亮麗的雙位數的成長，那也在多角化跟市占率的提升，不僅是今年前幾年營收也有雙位數的成長，那也降低對LCD cycle循環的影響。那剛剛管理層也提到大部分的產品看起來這個趨勢都是還蠻正面的進入到明年，那我不知道說現在看起來明年的成長，公司還是有一定的不知道對明年成長的態度，公司是怎麼樣子的想法呢？
我想在这个针对这个new technology或者是advanced的这个product new product这里呢，公司我们都会持续来投入这个研发，所以这个是我们长期的这个方向。至于说这个每年这样的一个情况呢，我想以今年以明年2021年来看呢，我想现在我们来谈可能稍微比较早了一点，不过对于明年我们事实上是有准备了一些新的产品呢，在明年会陆续的来推出。
Novatek has done a pretty successful product diversification and market share increase over the years, helping the company to grow revenue by double digit over the past few years, and also beating the cycle of the LCD industry. You just mentioned about a lot of positive trend or contribution from new product. Just wonder if you can share your view into the next year still positive. As mentioned earlier, we are putting a lot of investment on R&D into the more advanced display technologies, and we are very confident next year we'll introduce more new technology and more new product into the market next year, but as to revenue guidance for next year it's too early, it's very difficult to predict, but we are sure we'll have a lot of new product for next year.
再来一个问题也是关于这个毛利率，我们刚刚有注意到公司这个毛利率在过去几年持续的在优化上跟NRE上有持续很亮丽的一个表现，那我不知道说公司从这个现在往前看起来这个趋势有继续可以维持的情况吗？
我想刚刚有提到了就是说未来我们当然会去开发甚至推出一些新的产品或者是一些新的技术的这个产品，所以在这里来讲主要的这个先期的投入呢都是为了去提高公司这个产品的这个毛利率，这个我想是我们持续的这个努力的一个方向。
We notice Novatek has done pretty successfully as a product mix improvement as well as more engagement with big company for NRE and seeing some upward margin trend over the years. Just wonder if we can continue to see this uptrend into next year and afterwards. We have invested a lot into the new product and advanced display technologies, and the main purpose of that is to improve our competitiveness, and the goal is to improve our margins, so we'll continue to do that and we'll not stop. Basically a lot of new products are under development and some of the products will be launched next year, so if that will be successful of course that will be helpful to our margins
. 谢谢管理层，那我们还最后有一两个问题，一个就是今天电子时报有提到这个联咏似乎在开发AI SoC chip，不知道这边您可以管理层可以再给我们一点点解释吗？
这个电子时报这个我现在没有办法comment，不过我们过去在做surveillance的时候事实上就已经有加入了一些所谓的这个edge computing，就是所谓的这个AI edge AI，所以我们在这个一些希望说能够把这个过去的这个PQ的这个picker quality的这个technology能够加上一些AI能够再去enhance我们在这上面的一些这个产品的这个product的这个quality，那也能够去这个提升我们在这上面产品的这个differentiation。
Just also could you provide some color on so-called AI SoC chip based upon today's headline news at the DigiTime ? Well, we have no comment on the DigiTimes news, but one thing we can disclose is that we've been working on the surveillance and we've been adding edge computing which is edge AI, and what we want to do is you know with the picture quality with the AI we want to enhance the quality and make some differentiations, and we are working on some of these products.
下一个也一个刚刚管理层有提到说看到年底前有一位有一个TCOM的竞争对手要退出，不知道可以提一下名字或他大概是在什么产品线或市占率的情况是怎么样。
Well, the question is about there is one TCOM company existing in the market and the question is which company is that? It's not a Taiwanese company. Yeah, you can figure it out but I can't give you the name. I think it's about time, there's only two minutes left, any more questions? I think that it's pretty much done, so thank you everybody for your time and we'll see you next quarter. 谢谢谢谢大家。