[Foreign language]
Dear investors, analysts, and media, welcome to Novatek 2020 First 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 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 first quarter results. After that, our Vice Chairman, Mr. Steve Wang , will provide more details on our Q1 results and Q2 guidance. Following that will be our Q&A sessions. As mentioned earlier, if you have any questions, you can send them to us by text. Our IR Director, Mr. Tony Chen, 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. S.C. Chou, and I will answer all your questions in Chinese and will be translated into English. As usual, please take a look at our safe harbor notice. Let's start with our 2020 Q1 financial highlights. Our net sales for Q1 2020 is TWD 16.89 billion, QOQ up by 2.21% from TWD 16.5 billion, YOY up 13.01% from TWD 14.946 billion. Our gross profit in Q1 was TWD 5.6 billion, QOQ up by 5.24% from TWD 5.39 billion, YOY up by 14.38% from TWD 4.9 billion. Our gross margin for Q1 was 33.2%, QOQ up by 0.95 percentage point from 32.25%, YOY up by 0.39 percentage point from 32.81%. Our operating income in Q1 was TWD 2.6 billion, QOQ up by 6.5% from TWD 2.44 billion, YOY up by 8.15% from TWD 2.4 billion.
Our net income for Q1 was NT$2.21 billion, up QOQ 22.7% from NT$1.8 billion, and YOY up by 12.38% from NT$1.96 billion. The EPS for Q1 was NT$3.63, and last quarter was NT$2.96, and last year Q1 was NT$3.23. Next, our cash and cash equivalents Q1 was NT$19.93 billion, QOQ up by 11.31% from NT$17.9 billion, and YOY down 1.59% from NT$20.26 billion. Accounts receivable Q1 was NT$13.84 billion, QOQ up by 3.77% from NT$13.34 billion, and YOY up by 1.43% from NT$13.64 billion. Our inventory in Q1 was NT$8.8 billion, up QOQ 40.8% from NT$6.26 billion, YOY up by 18.57% from NT$7.43 billion. Short-term loans in Q1 is NT$1.08 billion, last quarter was zero, and last year's same period was NT$1.35 billion.
Our Large Panel Driver 384 channels equivalent unit shipment in Q1 was TWD 727 million, QOQ down by 1.08% from TWD 735 million, and YOY down by 18.95% from TWD 897 million. Let's look at the sales breakdown by products. The two main product lines are the SoC and the Display Driver ICs. Our SoC Q1 was TWD 4.98 billion, QOQ up by 3.04% from TWD 4.83 billion, and YOY up by 12.29% from TWD 4.43 billion.
Our Display Driver in Q1 was TWD 11.7 billion, QOQ up by 1.42% from TWD 11.55 billion, and YOY up by 12.45% from TWD 10.41 billion. We have also released our April monthly sales. Our April monthly sales net sales come to TWD 6.54 billion. This is our record high, and this YOY accounts for 18.56% growth and MOM-wise 12.6% growth, and the SoC line contributed TWD 2.023 billion, and the driver line contributed TWD 4.398 billion.
If you look at the monthly sales in detail, you can see that for the first four months, we have experienced the YOY double-digit growth for all four months, and the accumulated January to April comes down to NT$ 23.43 billion, up 15% YOY from NT$ 20.46 billion last year. Let's look at our YOY consolidated income statement. Our net sales for Q1 2020 was NT$ 16.89 billion, up 13.01% from NT$ 14.94 billion. Our operating expense for Q1 2020 was NT$ 3 billion, up 20.37% from NT$ 2.498 billion. Our operating income for Q1 was NT$ 2.6 billion, up 8.15% from NT$ 2.4 billion. Net non-operating Q1 was NT$ 130.59 million, up 317.76% from NT$ 31.26 million. The net income for Q1 was NT$ 2.2 billion, up 12.38% from NT$ 1.96 billion. The EPS for Q1 is NT$3.63 versus NT$3.23. Let's look at the QOQ consolidated income statement.
Our net sales for Q1, as mentioned earlier, were NT$16.89 billion, up 2.21% from NT$16.52 billion. Operating expense Q1 was NT$3 billion, up 4.18% from NT$2.88 billion. Operating income was NT$2.6 billion, up 6.5% from NT$2.44 billion. Net non-operating Q1 was NT$130 million versus last quarter - NT$210 million. The net income was NT$2.211 billion, up 22.7% from NT$1.8 billion. So the EPS for Q1 was NT$3.63 versus NT$2.96. So if you look at the sales breakdown by products, we can see that the SoC accounts for 29% of our sales, and driver accounts for roughly 69%. Look at our cash and cash equivalents: NT$19.93 billion, and our short-term loans: NT$1.08 billion. Then we have left with net cash: NT$18.85 billion, a change of NT$937 million. And accounts receivable: NT$13.84 billion, QOQ change of NT$502.06 million. Our inventory level in Q1 was NT$8.8 billion, up by NT$2.55 billion.
Our board has also approved a cash dividend of NT$10.05, and within that, NT$1.50 from capital surplus. So the payout ratio will come down to 80.6%, maintaining our high payout ratio. So now I'll turn the call to Steve Wang, our Vice Chairman, to give us more details on the Q1 results and the Q2 guidance.
[Foreign language]
Regarding the Q1 revenue, amidst the global COVID-19 outbreak impact, we were able to deliver an exciting result. Our top line not only exceeded our guidance of February 11, our Q1 revenue is also a record high. The growth was driven by both SoC and mobile driver ICs. And as to the Q1 margins, our margins also exceeded our guidance. It's mainly due to the product mix and the NRE.
As for the Q2 outlook, the global pandemic situation is still not well under control, and we can see that the U.S., Europe, India, they're still all under lockdown, and there's still a lot, you know, from the demands, consumer demand side, there's a lot of uncertainties. But the good news is that we're seeing China reopening its factories and it's resuming production. So hopefully the pandemic will not get worse and will be contained very soon. If everything goes well, hopefully the second half, you know, things will get better. Due to the pandemic lockdown, the more people are working from home, and students are switching to remote learning, and this has boosted demand for notebooks, monitors, tablets, and we're seeing rush orders coming in from these applications.
Based on the above, our guidance for Q2 is as follows: our revenue top line will be within TWD 17.7 billion-TWD 18.5 billion, and it's based on the exchange rate of 1 to 30. Our gross margins for Q2 will be within 31.5%-33.5% range. Operating margins will be from 15%-17% range. The Q2 growth is mainly driven by SoC and then also a little bit from the driver IC. Within the SoC, as mentioned earlier, we are seeing strong demand for IT-related products, and for TV SoC-wise, our customer inventory remains healthy, and we are seeing healthy demand coming in. There's also some market share gain within the TV SoC side. As for our DDIC, the growth will be driven by mainly the large panel driver for IT-related applications.
And as to the small and medium panel drivers, it's likely to be flattish, but our OLED driver unit shipments are expected to grow. But our pure driver, TDDI or automotive driver IC, will be down slightly. The slight decline in the TDDI is mainly due to the weakness in the HD demand because of the lockdown in India. So that's basically the Q1 more details on the Q1 and the guidance on the Q2.
Next, we'll move on to our Q&A sessions. Please be reminded that if you have questions, do send us through the text, and Tony will process and read out the questions in Chinese and English, and we'll answer them both in Chinese and English. Yes, Tony, please.
[Foreign language]
Given the record high gross margin in the first quarter, you also mentioned the upside number from partly due to the NRE. Would you provide the amount as well as the product for this NRE income?
[Foreign language]
The question was on the gross margin for Q1 exceeding our guidance. So basically the QOQ increase of the margin mainly comes from the sequential growth of the OLED and the SoC, basically the product mix, which enjoy a higher than corporate average gross margin, and also the NRE from our SoC and driver ICs.
[Foreign language]
The target of 31.5%-33.5% for gross margin second quarter only includes revenue from product or also for the NRE? And also the rough estimate for your NRE income in second quarter?
[Foreign language]
The question is whether the Q2 gross margin guidance 31.5%-33.5% includes revenue from NRE also?
Yes, basically the gross margin guidance that we gave earlier already includes the revenue from NRE, and the NRE for Q2 basically will be a little bit less than Q1, and it will be around more than NT$100 million in Q2. Next.
[Foreign language]
And they would also like to know the ASP and the gross margin trend for TDDI and the OLED driver product in second quarter compared with those in first quarter.
[Foreign language]
How about the second half's margin compared to the first half?
[Foreign language]
Okay, the question was so on the gross margin whether the second half will be better than the first half and about the gross margins of the products for different categories.
Well, as Steve mentioned, the company target is to continue to improve our margin, that's our main target, and we have introduced a lot of new products, and all of these products we do expect them to have better margins, but it's very difficult to project the second half margins because there's still a lot of uncertainties. But basically we'll try our best to improve our margins by introducing more new products and more better products for our customers.
[Foreign language].
Just want to get more color on the competition on TDDI and OLED driver on your gross margin as well as the impact from the tight supply of 8-inch wafer.
[Foreign language].
Okay, the question was on whether there is any impact on the gross margin because of competition and also the tightness of 8-inch foundry. Steve just answered that basically most of our TDDI OLED drivers actually are using 12-inch foundry wafers, so basically the 8-inch doesn't have impact on our mobile driver, and as to the cost of our TDDI OLED drivers, basically there aren't that much change to our cost for ASP, so basically there shouldn't be too much change to our gross margin for these products.
[Foreign language]
Management did mention about the growth for second quarter were mainly from the SoC as well as some driver for IT-related. They would like to know a little bit more color about the individual product momentum within the SoC.
[Foreign language]
Okay, the question is on the QOQ revenue growth by group on the driver side and on the SoC side.
What Steve just said was the both the large panel driver IC and the SoC will be up QOQ, while the small medium size driver IC will be kind of flattish. The mainly large panel driver is driven by the IT-related applications like timing controller, power management, all these stuff. And on the SoC side, you know we have the TV SoC. So far we are seeing our SoC is TV SoC is still pretty, the demand is still pretty good. And basically we do see our customer side, I mean there's still orders are still coming in, and I think this has to do with some market share gain. And on the other hand, I think the inventory on our customer side should be pretty healthy. So basically our SoC and driver we are expecting it to QOQ wise there should be growth.
[Foreign language]
The first question about the product on OLED, they would like to know the impact from the coronavirus as well as the progress on your diversification at both panel and the end customer side.
[Foreign language]
Okay, the question is on OLED shipment and the impact of the coronavirus on the new products and diversification of panel customers. Well, as we gave the guidance last quarter that we are expecting our first half OLED unit shipment to exceed the whole of 2019, and this is still maintaining that views and guidance. And basically what we are seeing is that the Q2 OLED unit shipment should be higher than Q1.
As to the coronavirus impact, basically the design-in and the product launch on our side, the impact is very minimum, but I think what we have to look at is whether on the sell-through , whether the sell-through will be impacted by the coronavirus. Otherwise, our design-in and our product launch, these are all on track. As to the diversification, we are seeing, you know, more panel maker suppliers supplying OLED, so we are working with a lot of them, and a lot of these progress are also on track, so we are adding in more customers and more end customers.
[Foreign language]
Also, further follow-up question on OLED driver, they would like to know the shipment target in the second half versus in the first half.
[Foreign language]
Regarding the OLED for the second half, Steve just mentioned that due to the 5G trend, we are seeing there is an increasing demand on OLED driver, so if everything goes well in the second half and no surprise, we are expecting the OLED unit shipment for the second half to be better than the first half.
[Foreign language]
About the TDDI product, could you give more clarity about the shipment number in first quarter as well as the second quarter, and also your market share trend for TDDI, and also would like to know the percentage of shipment from the new product as well as the impact from the coronavirus.
[Foreign language]
Question was on Q1 and Q2 unit on the shipment for TDDI and the market share, and so what Steve just said is that basically if you look at the Q2 QOQ wise we are expecting the TDDI unit shipment to be slightly down, this is mainly due to the HD TDDI weakness due to the lockdown in India.
As to the new product design win, as you can see, the 5G trend is also driving the demand for high frame rate TDDI, and basically we are the market leader in this area, so we do expect as the 5Gs ramp up the demand for design-in for the high frame rate TDDI will increase, and that would be positive for Novatek.
[Foreign language]
Follow-up question about the TDDI, what's your expectation for the market size in 2020 versus 2019, as well as your shipment target for 2020, and also the adoption and the competition for the new TDDI products
[Foreign language]
According to the recent article, the Will Semiconductor seems to have closed the acquisition of Synaptics Mobile TDDI division without approval of the Taiwan government. Is it correct? And can you also provide some comments to the industry as well as to your company?
[Foreign language]
The question was on the fingerprint whether when will our fingerprint goes into mass production whether it's focused on LCD or OLED panel? Well, our focus will be mainly on the OLED panel. Our fingerprint will be on the OLED panel, and because of the coronavirus actually it has impacted our design-in our technical support on our customer side, but so far other than that I think everything is moving on smoothly, so we'll see how the coronavirus you know situation if it's under control. I think that would be very helpful for our product design-in mass production.
[Foreign language]
Recently there are a couple of articles about this landscape; Egis just announced the mass production for Huawei as well as BOE's cooperation with Qualcomm on the ultrasonic product; any impact to Novatek?
[Foreign language]
So the question was on the competitor on the fingerprint side and also on the Qualcomm ultrasonic fingerprint product; basically Novatek we don't have any product on the ultrasonic fingerprint line, so it's not related to Novatek, but as to the other competitors or I mean you know there's no impact on us because we are just focusing on our product and designing in, so so far basically there's no impact.
[Foreign language]
Company just provided very solid guidance for second quarter; just wonder if you have any initial visibility for third quarter even for the overall second half.
[Foreign language]
The question was on the Q3 revenue or even on the second half; basically the what Steve just said is that the Q3 visibility is very limited at this moment, but the thing is that if the COVID-19 virus impact or the outbreak really gets under control, I think that will be very helpful, so based on that I think hopefully things will get better, so the second half should you know improve and in that case we do expect second half things should get better.
[Foreign language]
Given the recent announcement of the LCD panel fab closure, will you benefit from this closure in addition to the driver? Also do you have some medium to long term market share target from existing around 30% level?
[Foreign language]
The question was on the closure of Samsung's LCD fab. Will that benefit Novatek and do you know any kind of mid- to long-term market share target versus what you see at 30%? Of course the closure of Samsung's LCD fab definitely a positive for Novatek and Steve just mentioned that because for Samsung they have a special interface and it's very unique interface which Novatek does provide that kind of interface, so basically that would be very helpful for our share in, and as to the Samsung LCD fab, will that fab be transferred to OLED or QLED, but that's a different issue, but basically as long as on the LCD side it should be positive for Novatek and of course the 30% market share that will be not our you know ultimate target but we are striving for higher than that.
[Foreign language]
Okay, the question was on the new product lines on the wearable OLED TDDI, the OLED TDDI, mini LED driver. Currently Novatek already has developed these products and it's in the process of design-in, and the wearable OLED driver we are expecting second half to go into mass production. We also have a tablet TDDI and it should go into mass production the second half, especially with the high frame rate and also with some active pen, and as to the OLED TDDI it's we're developing those things but it also has to work very closely with the panel maker, so it's not just a driver TDDI itself but it also have to work along with the panel maker, so basically we have a lot of product you know activities going on.
[Foreign language]
Now switch the gear on SOC product; you already deliver solid growth for the first four months; could you still grow your SOC business overall for 2020? And also could you provide some guidance for your TV SOC in terms of revenue or shipments? Also, you did mention about some positive progress for new customer on IP Camera; could you provide some updates?
[Foreign language]
The question was on the outlook for SoC and especially on the TV SoC for 2020 and the IP Camera. Well, for the TV SoC for 2020 we are positive on the revenue growth in 2020 and because we're seeing there's a very healthy order coming in, so and then on the second one is on the IP Camera. The IP camera basically you know design-in activities I mean all these are going on pretty smoothly on track, but due to the COVID impact things have slowed down especially in the western countries where due to the lockdown, but hopefully the overall demand should resume in the second half and hopefully that will be helpful to contribute to our revenue for the IP camera.
[Foreign language]
outperformance. And can you provide more color on your strong performance across various lines such as TV SoC, smartphone, even panels compared with your peers?
[Foreign language]
So the question was on the competitiveness on our product line. What Steve just mentioned is that we are focusing mainly on our product and our technology, and we are hoping that we can bring more value to our customer, so you can see that on our small size panel we have like high frame rate, we have the OLED drivers, and a lot of these entry barriers are pretty high, and we are bringing a lot of value to our customers, so hopefully that will bring in more revenue and contribution moving forward.
[Foreign ]
You just mentioned about some progress for your new product for the rest of this year; could you provide a little bit more color on your Mini LED driver as this is a very hot topic in the industry right now?
[Foreign language]
Okay, the question was on the Mini LED driver, so regarding Mini LED driver there are two kinds of applications, one is for the backlight, the other one is for the display especially for the public display, the big public display, and we are expecting our Mini LED for public display to go into mass production very soon, and as to the backlight applications we are still under development and the contribution will be relatively small compared to the public display, so we are actually more positive on the public display of the Mini LED driver.
[Foreign language]
Could you provide the update for the supply chain? Particularly we heard the tight supply for 8-inch, also could you provide some color for other key parts for your business?
[Foreign language]
Okay, the question was on the supply chain regarding the recent reports on the tightness on the 8-inch wafer and also about the 12-inch and in other packaging or the other materials. Most of our large panel drivers are using the 8-inch fab and it is relatively tight, but as to the 12-inch it really depends on different processes, the situation is different and as to the other backend testing packaging things are okay at this moment.
[Foreign language]
I have some questions about your financials in first quarter; could you provide more explanation on your credit loss of TWD 80 million as well as your FX non-operating gain of TWD 130 million in first quarter?
[Foreign language]
Okay, the question was on the Q1 there is a credit loss of TWD 80 million and this is basically a provision for the potential bad debts on the back of the coronavirus outbreak as for the non-operating income of like TWD 130 million the major portion came from the FX gain of roughly around TWD 90 million.
[Foreign language]
They also noticed there is a big 40% quarter over quarter increase in the inventory or around TWD 2.6 billion could you provide more color on this big jump and also from which products?
[Foreign language]
Okay, the question was on the Q1 inventory QOQ increased by 40% so they feel increase in the inventory largely because of the increase in the lead time because of the tighter foundry supply and if you look at from days of inventory our number actually is relatively healthy because if you look at Q1 the days of inventory is 73 days if you compare to the 2019 Q1 it was 79 days so basically we view this as pretty healthy so we are not much worried about that。
[Foreign language]
You just announced the cash dividend of NT$10.5, the payout ratio seems to come down slightly over the past few years, what's the major reason behind that?
[Foreign language]
The question was on the payout ratio why it's kind of down a little bit what Steve just said that from company point of view there is no change in the high payout ratio policy so we'll continue to maintain high payout policy however the payout ratio slightly decreased this is largely due to the consideration of the coronavirus outbreak and the uncertainties in the second half so basically it's very just because of the virus issue.
[Foreign language]
The next question is about operating expense given will be higher OpEx ratio in the first quarter will you still can you provide some guidance for your OpEx ratio in the second half or will you still maintain your previous target of 16%-17% for 2020?
[Foreign language]
The question was on the OPEX for the second half. Basically our first quarter OPEX around 17.8% and Q2 we are expecting it around 17%. So but for the whole year I think it will all depend on the second half revenue. If everything goes well no surprise I think that we'll maintain the full year guidance for the OPEX around 17%.
[Foreign language]
You just announced the April revenue which is set another record high but based upon your April revenue as well your second quarter revenue guidance your monthly revenue trend seems to have declined sequentially. Could you provide some color on that?
The question was on the guidance for the second quarter guidance since the April monthly sales was a record high. Does it imply that the May and June revenue will be down sequentially? Steve just explained that because the May 1st there is a Labor Day holiday so we've experienced the pull-in before the holiday so we've seen that the April number went up quite a bit and the other thing is that we also factor in another the issue is you know in June we anticipate that there will be some inventory correction because of the semi-annual financial report so there will be some inventory correction so we did factor in that portion so we'll maintain our Q2 guidance as we gave earlier.
[Foreign language]
Okay, the question was about the Q2 end of Q2 inventory: will it go up or go down, and the answer is that we are expecting the second quarter revenue to ramp up so we did prepare some inventory for that ramp up and so because of that we are expecting our Q2 inventory end of Q2 inventory level to go down.
那目前的问题是这样我们稍微再等一下整理一下看还有没有投资人再进来也有接下来有看到投资人有问关于这个 4 月底的时候美国商务部这边好像有公告一些新的管制那有关于好像是手机方面这一块不知道公司有做了解或评估可能的风险吗.
Based upon the recent announcement from U.S. Commerce Department there are warnings about the smartphone delay as well as some follow-up risks. Have you done some assessment on the back of this announcement?
基本上呢，只要这个全世界的手机啊，这个需求有这么多，我想这个做手机的都是我们的这个要 target 的这个客户。那至于说这个限制的这个内容会怎么样，我们目前会持续来关注。现在很难说这个看这个情况是怎么样，不过只要做手机的，我想基本上我们都会把它当成是我们的客户。
The question was on the US Commerce Department smartphone so we are keeping close watch on that but for us our main goal is to penetrate all the potential smartphone players so we'll continue to do that and the rest we'll just keep watch and how things change.
还有一个是关于刚刚一个等于管理层有提到第二季的 HD 的问题，想请教一下 HD 现在大概占你 TDDI 的出货的比例的情况是怎么样。
Follow-up question about the TDDI they would like to know what percentage of shipment or revenue HD product account for either in the first quarter or into the second quarter?
以 HD 的这个产品占我们 total TDDI 以现在来看的话呢大概是在略小于 40% 略小于 40%.
Okay, the question was about the TDDI and how much the HD high definition accounts for how much of the total TDDI. We don't have the exact number, but it should be a little bit less than 40%, around 40%. Yeah, this is very rough, very rough number. We don't have the exact number on hand at this moment.
接下来有一个关于 5G 这方面的不知道公司对目前现在 5G 的产品的这个出货量跟之前相比有什么看法呢。另外一个就是最近产业链有提到说好像有看到一些产品 5G 产品的这个 downgrade 就是说用一个比较低阶的产品因为主要降售价的考虑不知道这个公司有看到吗.
Could you provide some comment on the 5G smartphones as well as the specifications for the panels or for your drivers? You mean the downgrade of the AP or driver or what?
Driver or panels like OLED panel okay. 目前来讲我们是没有特别去看 downgrade 的部分当然也有可能有一些 downgrade 在市场上也有可能不过对我们来讲的话那只要用 panel OLED 的 panel 它就需要用 driver 所以这个对我们来讲应该也是消耗一部分 driver 的对我们来讲是 positive 的.
So for Novatek I mean the question mentioned about the 5G and there is a downgrade on the panel or driver for the 5G phone but for Novatek I mean it doesn't matter whether it's downgrade or whether it's the you know the right spec you know as long as they need the driver we supply them the driver and it's good for us so it doesn't matter.
这边还有一个问题就是投资人也蛮担心说您这边会了解到您的在 driver 客户这边的库存水准吗. Wonder if the company can share some sales on the inventory level at your customer side for both large size driver and the small medium size driver. 目前我们那个关注的结果呢不管是 large panel 或者是 small panels 我们觉得它的 inventory 应该都是相当健康的基本上客户呢很少是累积了很多的库存那我们跟客户之间呢都会有相当频繁的互动来去视市场的情况来调整所以作为我们的客户的一个 partner 我们作为客户的一个 partner 呢我想怎么样的去弹性的供货是我们一直在努力做的一个事情.
The question was on the driver inventory on our customer side so the answer is no matter with the large or the small so far what we saw is that the inventory level on our customer side still looks pretty healthy of course we work very closely with our customer as a partnership and to supply them the driver they need and to understand the situation but so far everything looks healthy.
另外一个问题是关于大尺寸这一边 TV 那今年的所有的在第二季原本的东京跟足球的赛事都受到了延迟您怎么样看这个对公司大尺寸这边产品 driver 或其他产品的影响.
We noticed there is a delay for all sports activities and any impact to your TV SoC or large size drivers.
因为东京奥运还有一些运动赛事的延迟或者一些取消那对一些 high resolution 的 TV 呢确实有看到一些需求的 delay 这个尤其是 8K 的 TV 啦原来是大家 expect 的东京奥运啊因为开始有 8K 的广播所以看起来 8K 的 TV 的 demand 是有一些延迟的情况不过我们觉得 8K 的 TV 它还是一个趋势的产品当然目前它的 penetration rate 不会很高不过它是一个看起来是一个长期的趋势的产品.
Okay the question was on the large panel driver for TV and because of the postponing of the Olympic Games and some of the soccer games will that impact our TV demand the answer is that of course because of the COVID-19 and caused the Olympic and that impacted the Olympic Games to postpone and especially the Olympic Games they're focusing on the 8K broadcasting so because of the delay the demand for 8K will be delayed also but from our view 8K TV still will be the trend so at this moment the penetration rate is still low but eventually we still expect the 8K resolution TV to go up but it will be delayed a little bit.
那我们现在线上的问题都已经回答完毕了 要就看各位是不是还有问题若有的话就麻烦可以 text 进来.
So if any one of you have further questions do let us know or send us a text okay since there is no further questions we'll conclude our Q&A session the replay of the conference will be available on our website www.novatek.com.tw later today and thank you everyone for joining us today and wishing you all the best of health.
谢谢各位 谢谢大家。