Q4 2023 AUO Corp Earnings Call
Wishes by the management team there will be a Q&A session.
Now I would like to hand over to Ms. Judy agile.
Our officer.
Thank you ladies and gentlemen.
Good afternoon.
I'm Julia Chao Auo's IR officer on behalf of the company I would like to welcome you to participate in 'twenty two 'twenty three fourth quarter financial results Conference I'm joined by four executives.
Paul Peng Chairman and group Chief strategy Officer.
Frank <unk> CEO and president.
James Chen senior VP of the display strategy business group and Benson our CFO.
The agenda of today is as follows first of all CFO Ben will go over our 'twenty two 'twenty three fourth quarter financial results and provide you with our guidance for Q1 2024, then our present, our chairman rather well provide you with our opening remark then we'll proceed to the Q&A.
We have collected questions from analysts before the meeting we will address those questions in the first part of the Q&A session. Afterwards, if there are still more questions. We'll open up the line to take your questions.
Now before I turn it over to Ben Please allow me to remind you that all forward looking statements contain risks and uncertainties. Please social spend some time to read the safe Harbor notice on slide number two.
Then please.
Good afternoon.
I would like to run over.
Our.
Fourth quarter financial results.
As Florida seasonality setting in Q4.
And market demand weakened and customers tighten their inventory inventory control era shipman.
Lowered by 14%.
However.
Our vertical business revenue continue to expand.
Helping to partially offset the revenue slide.
In Q4, unless those came in at $63 3 billion down by nine 6% Q O Q.
Due to the store seasonality loading rate floored.
Our gross profit Lord.
Two $2 1 billion.
Okey loss increased to $5 1 billion.
Mainly due to an opex item.
That is the recognition of a one time labor expense associated with the P. S. T C acquisition.
Okay.
Yeah.
Net loss attributable to owners of the company narrowed to $1 5 billion.
Yes.
Yeah.
EBITDA margin was five 4%.
Compare with op loss <unk>.
Net loss narrowed significantly.
Mainly because we have a $3 95 billion of income tax gain in Q4.
Which included.
A T T. A of 3.44 billion NT dollars from the loss carryforwards recognized by our affiliated entities.
This means that according to accounting rules.
Okay.
For our financial forecast going forward during the period, where the loss reduction is usable.
Which is 10 years in Taiwan.
We will likely make use of the D. G. A of 3.44 billion NT dollars.
Okay.
Next slide our full year results.
In 2023, our net sales came in at 248 billion.
But by 1.2 billion Y O y.
During 2023, we worked relentlessly on controlling our opex and improving the vertical business contribution to our revenues helping to boost our profitability as a result.
Gross profit was $4 6 billion op loss was 22 billion.
Net loss attributable to owners of the company was $18 2 billion.
Okay.
EPS was minus 2.37 N T D.
EBITDA $10 5 billion EBITDA margin $4 3 billion per se rather.
Next slide balance sheet.
Thank you for our cash and cash equivalents were 84 billion.
Long term I shall turn combined with $111 9 billion.
At the end of the year, our gearing ratio was 16, 9%.
Flat Q O Q.
In Q4.
Due to lower loading our inventory level stage at healthy levels.
Our inventory amount was 29 billion flattish Q O Q.
Due to the lower shipment our inventory turnover days increased to 44 days.
Next slide cash flow, we generated $6 5 billion from operating activities Capex was 4.3% abelian rather.
Net change in debt was $5 2 billion.
Next slide revenue breakdown.
That's look at the lower right Barton.
Vertical business gained two percentage points to 18%.
Thanks to increasing contribution of the automotive this way H M I.
Helping us too.
Tackle the boom and bust cycle of the panel market.
Okay.
Okay.
On the upper right TV and monitor.
Last 1% and two percentage points to 21, and 12% respectively on the back of Lora Asp's and area shipment.
Against this backdrop of mobile PC and diverse.
Increased by two percentage points to 24%.
Next slide.
Shipments and ASP by area.
Okay.
As demand slowed down.
Shipman went down by 14% Q O Q.
Okay.
A S P increased by 1%.
Thanks to product mix optimization.
Okay.
And increased ore shipments of.
Mid to high end products, such as car displays.
As for our Q1, 'twenty 'twenty four guidance.
Based on our current business outlook, we expect the display business.
To have era shipman.
There will be roughly flat Q O Q.
And the blended ASP denominated in the dollar is anticipated to be down by mid single digit percentage points Q O Q.
Q1's loading rates will be dynamically adjusted based on market conditions.
This concludes.
The briefing on the Q4 results and the guidance for Q1.
Now before we proceed to the Q&A session, we will have Paul to give you than opening remark.
Ladies and gentlemen, good afternoon.
I would like to add an additional note two cfos.
Statement about the reason of blended ASP E beam.
Besides.
The adjustment in our product mix the memories and another main reason is that.
T V.
Ah well account for a slightly higher ratio in our key Q1 revenue.
But before I start I'd like to first welcome you to participate in our Q1 financial results Conference.
Now I'd like to quickly go over our Twentyish one interim results the keyword of 'twenty Chinese food three was inventory inventory control the entire ICT industry chain has been working very hard on lowering inventory levels from the perspective of AUO, our full year revenue came.
Now 248 billion.
In the first half we had to deal with inventory corrections of ours and all of our customers.
Coughing, there panel purchasing to be rather conservative however, in the second half as inventory levels resume normal and the advent of <unk>.
The year end holiday season also helped seasonal momentum was more visible.
Our full year revenue in 2023 grew by about 0.5% Y O y mainly.
Benefit came from the revenue of vertical business.
Our vertical business grew by nearly 20% in 2023, helping to offset.
Partially that flight of.
Our panel revenue.
It also helped to improve our.
Our loss as the entire company.
In 2023, the consumer market was relatively weak.
However, we benefited from the growth of the automotive displays.
Our automotive display revenue exceeded 40 billion for 2023.
The growth momentum was especially strong for our integrated products, we call them F. F E M.
Or display HDMI their contribution to revenue continued to increase.
However, the growth of these segments was not strong enough to offset of the stores seasonality for consumer products.
Resulting in 10% drop in our panel revenue in the fourth quarter.
Great.
And the loss was also.
Increased in Q4 in 2023.
Market conditions were bleak in the first half and gradually recovered in the second half.
However.
We're still seeing.
Unfavorable conditions affecting the macro economy, including.
Ongoing more inflation high interest rates. These factors are still around.
<unk> the.
The global economic activity and consumers' consumption capabilities.
Dragging down the pace and magnitude of market demand recovery.
The performance of commercial products was weaker.
In terms of our financial structure, our inventory turnover increased by three days Q O Q in Q4.
While the inventory amount was flattish Q O Q.
Great.
The lower revenue cost me, if the inventory turnover days increased.
Our gearing ratio was 16, 9% still requesting at a healthy level.
As I've said 20 to 30 consumer market was relatively weak it was evident in the muted growth of the year end promotions.
During the double 11, Black Friday, and the lunar new year holidays.
And growth was quite depressed.
However, there are also positive signs for example.
As mentioned the industry focused on controlling inventory levels.
The entire industry chain has been very prudent in how they manage their inventory levels and today the inventory levels have returned to healthy state.
That is why after the.
Year end holiday season, there was no problem of inventory Pileup Intel.
In terms of the entire supply chain.
Pamela may.
Bakers have been working on.
Addressing their inventories piled ups and improving their inventory management.
Companies are focusing on producing the amount as needed.
And also.
In response to the market demand they are just in their logging rates.
In terms of 'twenty 'twenty four we are seeing some signs of market recovery in terms of the IV segment. Yeah T. C has been gaining traction at the CES. This year. There are three hotspots one is the I T C.
Second electric vehicles and the other as micro Leds.
In terms of AI T C.
The advent of Hec and window updates will likely trigger a new wave of PC replacement cycle.
The previous replacement cycle.
T six took place in 2020 on the back of the pandemic boom.
This year. The <unk> segment is expected to see another replacement cycle, which usually happens once in every four years set.
Secondly, if we look at the large sized TV panels.
As we.
We'll have the advent of the Euro Cup and Olympic games.
Usually these kinds of sports events will likely help boost demand, especially for the demand of large size high spec television sets.
Looking at the macro economy in 'twenty 'twenty four while there are still uncertainties, we believe.
That we can be prudently positive about.
Macro conditions is the following.
Factors can be content effectively first.
Inflation in U S. Today inflationary pressure has been going down in the U S.
And it has to be lower too.
Arrange that can be anticipated.
And people are anticipating.
Interest reduction opportunities for the second half of this year the second factor as warm.
While the.
Russell you Crammed War.
Impact has been adapted to by the industry.
The rising.
Let's see conflict.
Has been causing some problems for logistics and transportation.
It may prolong the transportation time, and causing some disruption to container shipping.
Thereby causing transportation cost to increase.
Topically impact will be on the entire supply chain. This is something that we are watching closely.
But.
On a positive note in terms of Europe Asia Transportation land.
Land transportation is an alternative which may help too.
Replace some parts of the aviation transportation.
Another factor that we need to watch closely is political situation.
Many countries, including Taiwan.
Have all well conduct election. This year, we will have to pay attention to this stability of the political situation around the world.
In terms of the <unk>.
Macro environment.
While we haven't seen strong recovery signs.
But at AUO, we remain committed to by assay transformation.
We will continue to.
Dedicate our efforts to develop the vertical business opportunities in 2023, our vertical business.
Revenue has reached 43 billion and we hope that it will up in Chongqing. The three accounted for 17% of our revenue and we will continue to grow this aspect and.
Hoping to.
Drive faster growth.
Compared to the 20% of last year. Moreover, the automotive display segment is taking up a higher revenue share.
And this year as we will begin to recognize the H T. Six revenue in our consolidated performance, we expect that we will be able to accelerate our automotive display growth.
Automotive systems will be a key focus of AUR going forward and it will be one of the key revenue contributors to our revenue going forward.
This is why we believe that while 'twenty 'twenty four will be a challenging year.
It will be a year that we can be prudently positive about.
Moreover, we will work relentlessly towards developing vertical application business, such as mobility retail health care Enterprise and education Intelligence service.
And Green energy, we hope that by leveraging our resources and capabilities in these areas, we will be able to help AUO to.
Become more immune to the boom and bust cycle of the panel industry.
Of course of course, our industry panel makers may have different strategies when it comes to how they tackle the market challenges.
But while we have observed is that.
Every company has to become much more disciplined in how they deal with capacity ramps.
Currently we haven't heard.
For any company has having a plan to build a new factory.
And people have been very agile in how they adjust there.
Loading rates and capacity.
We believe that this will help to bring the.
The overall supply and demand dynamics to healthier state.
Next I'll have frame.
To provide an update on the progress we've made on the access information.
And some of the highlights I would like to share with you. Thank.
I also like to wish you happy new year. Thank you. Okay. Thank you Paul and Frank Good afternoon.
As Paul just share with you.
A U S management team has been very aggressively working toward biaxial transformation implementation.
Our goal is to make AUO.
A company that is focused on our panel manufacturing capability and is able to extend our core competence in display technology to the various vertical markets NCO applications.
In terms of the vertical markets. We currently are focusing on mobility service retail health care.
Enterprise and education intelligence services and Green energy.
Besides fostering internal transformation, we're also setting up subsidiaries.
And working with.
External partners on strategic collaboration to deepen our presence in the ecosystem of vertical applications. So as to make our value chain more comprehensive last quarter, we talked to you about our mobility roadmap.
And we also talked about the acquisition of B C C.
As for the acquisition, we are proceeding with the procedures quite smoothly and we will update you on more progress made.
When they are ready.
Next I would like to share with you some of our exhibition highlights at the recently two concluded international trade shows.
First of all at ECS, which work at concluded just two weeks ago.
We exit exhibited many products advanced products in fact C. S may not be quite.
Quite the consumer electronic show as it was before because in recent years. It has been exited exhibiting more card related products and solutions by participating in CES, we are launching into a new milestone in the mobility services for.
For the past 20 years see AUR has been participating ECS. However, we were there as our panel provider, we may might have rented a booth our private booth.
Around the men exhibition holes and so as to interact with our customers.
But today, we are at D. C. S. We are we were there as a official exhibitor we exhibited right in the halls.
We exhibited our smart cockpit solutions.
So this is why we're so happy to be able to report to you that we were there for the first time as an official exhibitor. This.
Vicki case our comp.
Penetration is in our in the innovation achievements, we displayed transparent enroll about micro L. E D automotive displays and the spark hottie solutions.
We have also been honored with two innovation awards.
The organizer.
The interactive transparent.
Intelligent window.
<unk> has even garnered an innovation award, which quite frankly was a achievement that was better than many of CIT. Many tier one suppliers in the market.
This also represents that the industry and the market.
Have recognized auo's capability as a supplier of smart cockpit.
Of course as mentioned.
Several highlights at CES this year.
AI.
Automotive solutions.
And large size innovative display applications, despite especially transparent.
Displays.
Of which transparent micro OLED displays gained.
Atlas at the exhibition floor I would like to share with you that almost all the micro L. E D transparent micro OLED displays exhibited on the show floor were provided by AUO, including.
Products exhibited by international first tier brands.
Which worked with AUO to develop the products.
So this shows that AUO has the capability to develop and to research comp.
Compelling solutions alongside our.
Partners.
And we are also able to transition our technology into making viable products.
To sum up I think based on our performance at CES, we not only exhibited our competence at the show floor. We also demonstrated that we are able to deliver real results from technology to applications, including our solutions for micro L. E. D. We have been.
Strategically being able to deliver micro OLED technology transition them from the technology aspect to various applications last year, we shared with you our progress in wearable devices, but this year, we were talking about ultra large size transparent displays.
In the future. We will also continue to work on.
Creating more possibilities for automotive displays.
Moreover, AUO has been leveraging our core capabilities.
To develop a go vertical solutions.
Yeah.
So we are also extending our advantages in the car display marketing.
Added with our micro OLED technology to provide smart solutions cockpit solutions.
Which help has gained market accolades around the world. Another key point I would like to share with you is.
Our exhibition at the.
Health care plus.
First export Taiwan at the end of November or in the beginning of December. This ESCO has become a very important exhibition for demonstrating medical innovation for the first time AUO west there.
And the capacity as a member of the medical business group.
We demonstrated our results alongside AUO health, AUO cared and AUR display plus.
To showcase our solutions in various.
Health care demands, including dishes hold until I see a digital.
Dentistry, <unk> surgical imaging elderly care medical information integration and management as well as traditional Chinese medicine digital detection.
Yeah.
Many of the applications leverage auo's.
Competence built up over the past 10 years in the professional medical display technology. Today. We're also working with ecosystem partners to leverage our leading capacity to develop more diverse medical solutions. So as to address the key point the pinpoints of.
The medical industry.
And to also provide effective solutions, we believe that this segment will post stronger performance than other product lines. This year overall for the past three years you have posted.
Steady growth in our vertical business revenue and the revenue continue to continues to increase year over year of course, we are seeing the strongest.
Growth momentum for our automotive displays and in 'twenty two 'twenty three the segment posted more than 25% of growth Y O Y. This year with the acquisition of ph D. C. We believe the revenue shift group in Asia will be even bigger.
Would you help us to foster our growth to accelerate our development in the smart cockpit solution and automotive display segment.
Thank you for equipment that government this opportunity to share with you.
The achievements that we've made.
Indeed in the company towards transitioning our this is structure and revenue roadmap.
I hope that we will be able to foster faster growth for the entire company so as to achieve our goals.
Thank you.
Okay.
Thank you Frank and Paul for the opening remarks, and we would like to proceed with questions and answers for the first part of the Q U N D. We will address the questions that we have collected previously the first group of questions arent about market updates and outlook.
First of all what is our view.
About 2024.
Global panel supply and demand.
Secondly.
What are the inventory levels that we have observed.
Frank would you please.
Regarding the supply and demand of the panel industry.
To share with you.
That in terms of.
Inventory levels inventory levels have been quite healthy across applications. This year, the focus will be on demand forecast when we'll forecast take place.
However, due to macroeconomic conditions.
People have been more cautious about demand forecasts.
On the other hand.
The industry.
Is producing products based on demand.
Helping to make the supply and demand healthier than the past two years.
Of course, we have observed some segments that are enjoying more robust demand.
Including <unk> applications.
On the back of.
A R T C demand.
And automotive displays in the back of smart cockpit.
The manned.
And the increasing demand for a higher number of car displays and applications inside each car.
These factors helped to boost the demand.
Despite the macro conditions.
As for inventory levels.
As mentioned inventory levels are basically quite healthy across applications.
We have also observed that compared with commercial applications consumer applications now.
Now enjoy higher visibility of demand recovery.
Partly because of the macro conditions impact on enterprises caused enterprises to be more conservative about spending.
Causing commercial demand to be.
Weaker thank you Frank.
Next.
We <unk> procedure applications, we understand that the IC segment has gone through several quarters of inventory corrections.
Jim would you please talk about our views about the IV segment, ladies and gentlemen, good afternoon.
After six quarters of inventory corrections.
Inventory levels of the ACA cell phone tapping rather healthy at the moment brand shipments.
Started to post growth starting from the fourth quarter of 2023 that was kept Y O y growth.
This was a strong and favorable sign looking ahead at 2024.
As Paul and Frank mentioned.
There are several favorable factors for the <unk> segment to drive this growth.
First of all.
The advent of replacement cycle.
Which will help drive the growth of it segment secondly.
The windows system upgrades upgrading from Windows 10, two when windows 11, or the enablement of copilot functions.
Thirdly, the arrival of AI P C.
Which will accelerate the demand for.
Panels.
Power efficiency.
It will expand the demand for super power saving panels.
Firstly at the World inching inches toward.
The goal of lower carbon emissions brands around the world are demanding.
Low power low temp Super low powers.
Consumption technology platform, which happens to align with.
<unk> technology roadmap.
While Q1 is a Florida season.
And.
Manufacturers will take a prolonged holidays during the lunar new year period.
We believe that after the conclusion of a lunar new year, we will see rising demand from the industry.
Also about the TV segment.
Change would you. Please also provide some comments about TV set sell through.
For this year.
Today in the market imager inventory levels for TV sets.
<unk> been controlled quite nicely in Q4 2023.
Every size continue to rise to a new high.
Resting at 51.7 inch.
During the double 11 sales promotional season in China. The average size was 65 inch in North America, and China, 85 inch and above models.
Posted strong growth momentum in terms of sell through.
Which help too.
Effectively digest capacity and boost demand.
Looking ahead at 2024, they will be several sports events coming up including Euro Cup and Olympic games.
Which will drive the demand for large size models.
And likely trigger a new wave of replacement cycle.
The Euro Cup well.
Begin in June which will likely.
Make that demand.
Restocking demand to happen earlier than usual.
Yes.
Some companies.
Our fearful that it will be too late for them to start restocking.
In February or March so they have started to make Palo purchasing ahead of time.
Helping to boost the demand for TV panels.
Even including mid twos small sized TV panels.
Helping to boost their prices. So it is a quite a positive sign for us to be able to see that.
Right from the beginning of this year there are still some strong signs of demand recovery for from the television segment.
Thank you James the next group of questions are financial related questions, which I will address first of all.
Loading rates lottery.
Floating rates in Q4 lowered to 70% or so in Q1, we will continue to dynamically adjust the loading rates based on market.
Conditions in our product mix.
Depreciation and amortization in Q4, the number was the amount was $8 5 billion for.
For the full year of 2023, $32 9 billion, we expect that the 'twenty 'twenty four amount.
Will be 32 billion NT dollars.
Next capex.
Our capex in Q4 was.
Laura to $4 3 billion as some of the payments.
We're being delayed into this year.
Causing the 20th century cap has at 26.8 billion as for 2020 for the entire year is expected to be less than 30 billion for the capex. So that was.
In reply to finish related questions, ladies and gentlemen, we now open the line to take your questions to ensure equal opportunities for each participant please be reminded to limit. The number of your question to three per call I'm pleased say them all in one go. Thank you.
The first caller is Karen Hong from Citigroup. Please go ahead.
Hi, Thank you for taking my questions.
I have three questions first of all.
I have a question on the impact of Red Sea crisis on product shipments.
There was news that the earthquakes in Japan have made a negative impact on the upstream polarizer production in Japan.
What was the impact on your upstream production due to the earthquakes in Japan, and how long do you expect the impact to last.
The second question that I have is on I T.
Apple is adopting OLED panels.
Could you tell us your view about.
The impact of new display technologies on the LCD industry.
More of a there's a Chinese panel maker.
Ramping as new <unk> production line.
What is your view about the I T segment this year.
Thirdly about your buy access transformation strategy.
Some automotive component makers are saying that overseas demand is weakening.
So could you tell us about what you have observed about automotive demand and the changes in the odor strange.
Thank you.
And this change although if you chose your first and second questions.
In terms of the rest of the crisis, while we have a certain have observed is that as customers move with head they're restocking in production schedule by about two weeks.
Of course.
<unk> will increase slightly.
Some Chinese manufacturers take advantage of the railway transportation.
To deliver their products.
And because of this the impact has been quite limited, but companies aren't going to restock and make preparations ahead of time as for the.
Earthquakes in Japan.
While the production has been suspended in a certain manufacturer, but our company has already resumed production. Besides there are also other suppliers of polarizers.
Therefore, we don't believe there will be any impact.
Impact in the short term.
As for the.
Potential of Apple to utilizing.
I'll let panels.
Although it has all the applications have been around for some time.
In terms of various display technologies, they each have different advantages.
OLED is light and sling.
But a quiet day requires a higher power consumption.
As the world pursues.
Carbon emissions reductions or net zero.
L T P S.
We'll have a unique advantage.
Going forward.
What will be more important.
Is that we will see a rising demand for AI T C, which will require.
Stronger power saving features for panels.
And LTV is again, we'll present unique advantages we will continue to work with our customers to increase the volumes of such models.
And Frank.
I'd like to address your question relating to the automotive market.
Here I would like to share with you a data point.
In 2023.
The worldwide car cells.
Increased by about 10%.
Boosted by the delayed demand triggered by the Covid pandemic.
In the prior years, the automotive industry change chain was capped due.
Due to shortages of materials.
Last year the growth momentum was quite strong.
Of all the kind of all the current models Evs Y O Y growth was especially strong at nearly.
35%.
Moreover.
New application or new specifications also help boost demand.
Besides used car sales have been depressed for quite some time and finally recovered.
Last year.
Helping to digest some excess inventory.
Looking ahead at this year, if we take a more prudent view.
I think we can project that the global car sales to be up by 3% Y O y.
The overall sales volume will be more stable.
What can be observed is that the demand for smart car smart.
Smart cockpit.
Or the number of displays or the size of displays inside cars will continue to increase rapidly.
This will be aligned with our statement about the double digit growth for car displays for applications and intelligent solutions.
Thank you the answer so we're very clear thank you very much.
The next caller is Lisa Chen from <unk> Securities. Please go ahead.
Management team. Good afternoon, Thank you for providing us with details.
I'm Lisa from Kantar I have three questions first of all I.
Thank you have.
Reached a certain level in terms of your Microalgae D deployment, you have already shipped device products.
Do you have any other device products that may be shift any time soon.
And.
As people are placing more focus on automotive markets and applications I think carmakers.
Are the ones that you would need some time to communicate with so could you share with us the shipment schedule of any other device products.
Second question is relating to your deal with nine play nitride could you provide us with the updates on the schedule.
Thirdly.
You shut down your fab in Singapore.
Do they have any strategic planning.
You mentioned manufacturing positioning could you tell us your projection for the revenue sharing and the progress that you are making these are this is frank.
I would like to answer your questions first of all thing.
Terms of micro L E D.
As we just shared with you we.
We have.
Talked about our efforts in working with partners such as plain nitride.
Two.
Apply our micro OLED applications and technologies in high potential markets, such as Wearables for which we have been.
Shipping product to our customers. The second segment will be T V.
As well as various industrial and commercial applications, where we will be able to deliver.
Transparent displays.
For these segments, we will expect to have a more rapid deployment of technologies.
Which may start from the beginning of this so that they can have the second half this year.
As for the automotive displays we believe by 2026 or 'twenty 'twenty seven.
We will be able to mass produce applications of.
Micro L E D car displays.
As for our partnership with.
<unk> nitride.
For which we are working to build up a new production line.
Our plan is to finish the equipment move in by the end of this year so in the <unk>.
First half of next year, we will be able to.
Perform small batch production.
Currently we are looking at the.
The construction from the perspective of the combined capacity of the two companies. Initially we will work on integrating our manufacturing technologies and to have a better control of the entire industry chain. So as to strengthen our capabilities of microalgae deep manufacturing and improve.
The manufacturing efficiency of the production line.
This is what we are doing as we prepare for improving the El rage of micro L. E D production.
Yeah.
And improving the manufacturing efficiency and for your last question on the Singaporean plant because that plant was a older plant.
It was a gen four five fab.
L. T. P. S. Fab currently AUO is mainly focusing on gen six fab.
So we decided to concentrate on these fabs.
We have already closed down the fab and we will work on.
Managing the equipment and the fab after its closure.
This is an ongoing process we.
We don't have any other questions on the line due to the interest of time we.
We'll conclude today's Investor conference.
If you have any other questions. Please feel free to contact us at the IR Department at AUO. Thank you very much for participating.
We'll see you next time.