Q4 2023 Intchains Group Ltd Earnings Call
Okay.
Good day, ladies and gentlemen, thank you for standing by welcome to Eaton change fourth quarter and full year 2023 earnings conference call.
Today's conference is being recorded if you have any objections you may disconnect. At this time joining us today is Mr. Chow with young Chief Financial Officer of in change Mr. Yan will provide an overview of the company's performance and the details of the company's financial results. After that we will conduct a question.
And answer session to take your questions. During the question and answer session. Mr. Yan will go live with the answers in Chinese and the company's representative will provide corresponding English translation.
Before we continue I would like to remind you that today's discussion will contain forward looking statements. These forward looking statements involve known and unknown risks and uncertainties that are based on the company's current expectations and projections about future events that the company believes may affect each financial can.
<unk> result of operations business strategy and financial needs. The company undertakes no obligation to update or revise publicly any forward looking statements to reflect subsequent or current.
Vince or circumstances or changes in its expectations, except as may be required by law.
The company believes that the expectations expressed in these forward looking statements are reasonable it cannot assure you that such expectations will turn out to be correct and the company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other fab.
<unk> that may affect future results in the Companys registration statement and other filings with the SEC with that I will now turn the call over to Mr. Xiaowei Chen the Companys CFO Mr. Yang. Please go ahead.
Thank you operator, and everyone for joining <unk> earnings conference call for the fourth quarter and full year call. It 23.
Today's call, we will provide an overview of our operational and financial performance for the fourth quarter and full year for another story.
With that we will conduct a Q&A session to take your questions.
Hi, Paul its three was a challenging year for the web three industry, while we witnessed sustained rapid innovation in both underlying technology and application layers. The industrial was deeply affected by short term volatility influenced by these fluctuations the companys revenue for the full year.
<unk> decreased by 83% year over year, however, in the fourth quarter of 2023, the cryptocurrency market rebounded significantly from the third quarter downturn.
<unk> sustainable development of application layers as well as heightened.
Hi tons of demand for block 10 products.
This propel propelled us sequential revenue growth of 418% for the fourth quarter and empowered us to deliver our quarterly profitability.
<unk> was also a year offer a backbone milestones going to change in March we successfully listed on NASDAQ in the United States.
Marking the beginning of a new chapter in our department alongside numerous other outstanding firms.
As a young Webster a practitioner Inc.
<unk> has focused on refinery chief processes, and upgrading our wisdom to enhance our core competitiveness.
While persist centrally advising our products and expanding our product and service offerings across the industry value chain.
In the fourth quarter, we entered into an agreement to acquire the Golar <unk> brand.
Office surely entering downstream mining machine production in sales.
Entire transaction as processes Moseley.
And has have been completed today.
Furthermore, our latest 12 nanometer process chip featuring a brand a new algorithm successfully.
Complete IC verification and the trial production processes, and we expect to officially launch our new mining machine products in the second quarter of 2024.
As we step into 2024, we are observing a distinct upward transaction market wide.
Despite lingering short term uncertainties, we remain confident in the industry development photonic 24, and that the long term post specs of a tayo absolutely landscape.
We firmly believe that the ongoing evolution of blockchain technology will not only enhance the website industry, but but also drive deeper integration with traditional industries.
Promoting innovation.
These sectors.
Ultimately this transfer will maintain process were changed people's lifestyle, and propel progress across society as a whole.
As a as a key industry participants.
Change is currently pioneering privacy computing applications in web Street, the development of our first related our new product is nearing completion.
The associated ship product slated for our official tape out anytime at 94.
Furthermore, <unk> talked about before we intend to further expand our investments across the pivotal currency value chain.
Increasing capital utilization efficiency through carefully chosen development opportunities to install at defy the Companys foundation in anticipation of the industry's bull market.
In this dynamic environment, we will leverage our extensive industry experience.
Advanced technological capabilities.
To relentlessly explore and expand the opportunities for the development of web site at the application level.
By propeller integration of blockchain technology was traditional industry, we aim to improve users' lifestyle and drive drive Bryant development across industries and society as a whole.
Now I will provide a brief financial overview of the fourth quarter and full year 2023.
First I'll take a look out of the financial overview for the fourth quarter.
Our revenue was $75 5 million RMB or $5 million in the fourth quarter, a year over year increase of five 3%.
Increase was mainly due to primarily.
Was due to one off sales of.
In intelligent growth products, which generally generated $12 6 million RMB in revenue in fourth quarter trends I'm sorry.
Our cost of revenue.
Decreased by 29, 3% year over year to $14 1 million RMB or 2 million U S dollar in the fourth quarter.
Due to the sales of the <unk> intelligence, a lot of products, which have be recorded inventory write downs of 11 million RMB in the previous quarters of 2023.
Our total operating expenses increased by 17, 9% year over year to $22 8 million RMB two 3.2.
2 million U S dollar.
Fourth quarter, primarily due to an increase in all categories of operating expenses specifically.
Research and development expenses increased by 42% to $2 14 million RMB or $2 million for the fourth quarter comments on history from 10 million RMB for the same period of 2022.
The increase was primarily attributable to an increase in IP expenses and labor cost for the design of the IC chips.
Sales and marketing expenses increased by seven 6%, a five 3% year over year to $1 8 million RMB or 0.3 million U S. Dollar in the fourth quarter, mainly due to an increase in personnel related expenses.
General and admin expenses increased by 316.
6% year over year to 7 million RMB or $1 billion in the fourth quarter largely due to an increase in lease related expenses labor costs and professional expenses.
Our interest income increased by 22, 3% year over year to $4 2 million RMB or 0.6 million U S. Dollar in the fourth quarter, mostly attributable to our effective fund management.
Other income decreased by 29, 6% year over year to $7 5 million RMB or $1 $1 billion in the fourth quarter.
Primarily due to the decrease.
In grants received from the local government.
Our net income was.
$8 1 million RMB or $1 1 billion U S dollar in the fourth quarter.
Basic and diluted.
Net earnings net earnings per ordinary share was 0.07, RMB <unk> <unk> in the fourth quarter. Each ads represents two of our company's class a ordinary shares.
Now, let's look at our full year of $100 three financial results.
The revenue was $82 2 million RMB or $11 six.
$6 million in 2023, a year over year decrease of 83, 6%. The decrease was mainly due to the challenging crypto currency market in 2023, which resulted in decrease in sales volume and average selling price of our ASIC chips.
Cost of revenue decreased by 15, 9% year over year to $73 1 million RMB or $10 3 million U S dollar in <unk> history.
The decrease was mainly attributable to the decrease in sales volume of our ASIC chips, largely offset by hour by an inventory write down and a prepayment write down totally.
Totally approximately.
24 7 million RMB.
Total operating expenses increased by 15, 7% year over year to $7 5 million RMB or $10 4 million U S. Dollar in Chinese honestly, primarily due to increase in sales and marketing expenses and general and administrative expenses.
Partly offset by research and development expenses.
Our R&D expenses decreased by 12.
6% to <unk>.
$42 3 million RMB, <unk> 6 million U S. Dollar is one three.
$48 4 million RMB in 2022.
The decrease was primarily attributed attributable to the different stage of hour.
Our research and development projects for <unk>.
During the respective period offset by increase of labor cost and depreciation and amortization amortization expenses.
Sales and marketing expenses increased by six 5% year over year to $6 5 million RMB <unk> 9 million U S. Dollar and 143, mainly due to an increase in personnel related expenses.
General and admin expenses increased by 118, 1% year over year to $25 2 million RMB or $3 6 million U S. Dollar in 2023.
Largely due to an increase in rental expenses labor costs and professional expenses.
Interest income increased by 15, 5% year over year or two.
$16 8 million RMB or $2 4 million U S. Dollar in most of the layout to build or to our effective fund management.
Other income decreased by 55, 6% year over year to 30 32.
So 13 million RMB or $1.9 million in 2023, primarily due to a decrease in grants received from local government.
Our net loss was <unk> $6 8 million RMB, all three eight media U S dollar in one country.
Our basic and diluted net loss per ordinary share was.
<unk> two to RMB or 0.3.
U S dollar in 2023, each ads represents two of our company's class a ordinary shares.
In California, three industry volatility access great pressure on our business development, resulting in year over year declines in.
In both topline and bottom line performance, however, as the industry evolves.
Crypto related applications are increasingly embraced by regulators and the mainstream in wafers.
We have clearly assess the that the industry has entered entered a new upward cycle in this space.
Anticipate a much broader range of web three applications to emerge we remain confident in the long term prospects of the Webster industry and are deeply committed to its development as such we continue to pursue initiatives that bolster our competitiveness Anders.
Strengthen our foothold along the value chain.
As we step into 2024.
We'll increase our investment in progress.
<unk> exploring development opportunities within the industry to better position ourselves.
For sustained long term growth.
Thank you for your continued support we look forward to updating you on our progress in the future.
Now I'd like to turn the discussion over the operator for any questions.
Thank you and as a reminder, press star one one to get in the queue and wait for your name to be announced to remove your question simply press Star One again, if he would like to ask your question in Chinese. Please also translated in English.
I'll pause just a moment to assemble the roster.
One moment for our first question.
And it comes from the line of less Canyon with the policy Amtech Group. Please proceed.
Thank you for taking my question.
Can you please provide some insight into market conditions in the quarter and that impact on sales growth.
Well as your outlook for 'twenty 'twenty pool.
Thank you.
Thank you for the question.
Yeah.
So if you do the hunting for social we're starting on a quasi ETR Fernando Chunghwa.
Oh.
Senior differently to show down Peter.
<unk> here from <unk>.
This is a highly harder in <unk> <unk>.
<unk> put onto the Eagle equation now show data in Shanghai Silos, Siloed ramping I think Daniel basket with open job.
Our son yet to.
<unk> the social work at all.
We're meeting our chip resi issue downgrades into Central Hall, Yorkshire shell attention recently.
In fourth quarter, driven by the anticipation of the PTC ETF of promo and other positive industry developments.
Surprised of mayor of crypto currency, especially bitcoin rebounding into a varying degrees as a result.
Robust data growth in downstream products orders.
Our fourth quarter sales to $5 million, marking a return to our profitability up two consecutive quarters of losses.
Cindy enhancing point on the Telecom Asia. When we play also on Elektron I'm wondering if we're going to add seats.
If only in a monster julianne combo that changing xiaomi <unk> <unk> DRG to pay countertop Hoelscher currently it's a pilot the OPM. So two women will change into July.
So as in Shanghai, when you touch on the summer.
Sure Yeah. So just on that <unk> should have phase one penny women's downhill CFR.
<unk>.
Being shot at that one.
Looking ahead to 2024, given the clear market recovery trends our outlook for the year has improved.
The company's newly announced products featuring <unk>.
12 nanometer process nodes are scheduled to hit the market no later than the second quarter. Additionally, we have accelerated the chip tape out process.
Currently we have initiated multiple projects relating it to the 12 nanometer process node technology.
Particularly in the field of privacy computing and cutting edge non computing chips.
We aim to conclude today's projects R&D.
Publicity closed later in the development of before second quarter.
Awesome, Thanks for the young portfolio, 14% that <unk>.
<unk> got a smaller box.
Can you to the higher the Buda, we see from that.
Well mobile has also come with GT the Chinese how we use her.
Don't get actual Yanzhou haynesville residential beds are transitory own father, Cheng Cheng and put you in teaching centers meaningful global function.
It sounds like a woman Nangahar website, Javier Campos Undrawn unwieldy Shanda web sandridge with Chipotle.
John.
In 'twenty 'twenty, four we will ramp up our investment in R&D to pursue our higher returns on capital However, given the ongoing interest rate volatility.
I'm able to provide a specific financial forecast for the year now.
Nevertheless, with ample financial reserves and long term and a diversified industrial grade in a stretch fit as well as prudent operational.
To control practices we.
We are confident in our ability to grow alongside the Webster industry and emerge as a leading provider of maps for infrastructure.
Thank you for the answer now let's move to the last question. Thank you one moment please.
Yeah.
Alright. He comes from the line of Maryann that age with case of investments. Please proceed.
And now it's just about anytime soon right.
What's your on Guangzhou, Shanghai Slingshot go shall shall go down.
I E are the south shore.
Okay.
Thanks.
Could you. Please provide insights on your post acquisition strategy for the go shall brand and.
How they are expected to influence south and performance. Thank you.
Sit here Nick.
So you cannot do a cultural hang on I'll watch I'll, let John Turner.
So in general it's home to the play.
You guys from English agenda original hover and Ting.
Consequently from geographical to show the pin pad.
How the transfer or shuttle one track coach it had a <unk> <unk> to a central social data.
Just as in Canada.
Uh huh.
<unk> heard she'd holiday <unk>.
We successfully closed the deal today, starting tomorrow the company will stimulus take over the go shop brand its global sales website, and social media channels sales enable us to directly market and to sell mining machines and other computing products equipped.
With our <unk> chips and the go shop brand on a global scale, except in certain regulated regions.
I'm trying to position for snowmobile, so chunghwa lesions, our website digital social she can shop, our moods changing one fantastic costumer digitizing cash <unk> wider chokes.
<unk> solar handling of AVO tool.
Shockey Magic holding up he gets you the shallow <unk> nikko.
Way answer will either website <unk> dot has sugar to reshuffle Sheila.
From a strategy perspective.
The chance to aim to become a leading provider of <unk> infrastructure.
We have already conducted extensive R&D efforts and blockchain infrastructure products beyond HTC chips.
Acquiring <unk> brand and the memory its brand influence among downstream users.
We are establishing new independent sales channels for the company its future <unk> III products.
So if the macro gaucher concentrate country, Australia, either one not to you to answer to a short <unk> Shang hi shelter at home with our Tempe.
<unk> per share.
Kind of hernia double Eagle Ford Wuxi will know who filed the umpqua.
For <unk> some of them took a deal continue to.
So a constant the EAC of AT&T G that'd be helpful.
Therefore, the brand acquisition and represents a stretch.
A significant more export a short term impact on sales and performance.
Ultimately dependent on the product offering and industry dynamics.
Kevin a mortality of blockchain industry. It is a very challenging for us to quantify the impact at this point. However, we believe it will yield highlight positive outcomes in the long run.
Thank you for the answer let's move to the next question.
And I'm not showing any further questions in the queue I will just conclude this period.
Conference for today. Thank you all for participating and you may now disconnect.
[music].
Good day, ladies and gentlemen, thank you for standing by welcome to Eaton changed fourth quarter and full year 2023 earnings Conference call. Today's conference is being recorded if you have any objections you may disconnect. At this time joining us today is Mr child, where young Chief financial officer of <unk>.
Range, Mr. Yan will provide an overview of the company's performance and the details of the company's financial results. After that we will conduct a question and answer session to take your questions. During the question and answer session. Mr. Yan will deliver the answers in Chinese and the company's representative will provide.
Corresponding English translation before we continue I would like to remind you that today's discussion will contain forward looking statements. These forward looking statements involve known and unknown risks and uncertainties that are based on the company's current expectations and projections about future events that occur.
He believes may affect its financial condition, we sold of operations business strategy and financial needs. The company undertakes no obligation to update or revise publicly any forward looking statements to reflect subsequent events.
Events or circumstances or changes in its expectations, except as may be required by law.
Although the company believes that the expectations expressed in these forward looking statements are reasonable it cannot assure you that such expectations will turn out to be correct and the company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other.
Factors that may affect future results in the Companys registration statement and other filings with the SEC with that I will now turn the call over to Mr. Xiaowei Chen the Companys CFO Mr. Yang. Please go ahead.
Thank you operator, and everyone for joining <unk> earnings conference call for the fourth quarter and full year call. It 23.
On today's call, we will provide an overview of our operational and financial performance for the fourth quarter and full year.
After that we will conduct a Q&A session to take your questions.
Alright.
The challenging year for the web through industry, while we witnessed sustained rapid innovation in both underlying technology and application layers.
Industrial was deeply affected by short term volatility influenced by these fluctuations the companys revenue for the full year of telephonics decreased by 83% year over year. However, in the fourth quarter, all clinical history, the cryptocurrency market rebounded significantly from the third quarter.
Turn.
Driving sustainable development of application layers as well as <unk>.
Hi tons of demand for blockchain product.
This propel propel to sequential revenue growth of 418% for the fourth quarter and empowered us to deliver our quarterly profitability.
Plentiful as three was also a year offer a backbone milestones willing to chase you March we successfully listed on NASDAQ in the United States.
Marking the beginning of a new chapter in our department alongside numerous other outstanding firms.
As a young web III practitioner.
In the chance has focused on refining chief processes, and upgrading our wisdom to enhance our core competitiveness.
While persist centrally advising our products and expanding our product and service offerings across the industry value chain.
In the fourth quarter, we entered into an agreement to acquire the Golar <unk> brand.
Officially entering downstream mining machine production in South Beach.
The entire transaction as processes smoothly.
And it hasnt have been complete here today.
Furthermore, our latest 12 nanometer process chip featuring our brand new algorithm successfully.
Complete IC verification in the trial production processes, and we expect to officially launch our new mining machine products in the second quarter of 2024.
As we step into 2024, we are observing a distinct upward transaction market wide.
Despite lingering short term uncertainties, we remain confident in the industry's development photonic 24, and that the long term post specs of a tayo absolutely landscape.
We firmly believe that the ongoing evolution of blockchain technology will not only enhance the website industry, but but also drive deeper integration with traditional industries for.
Promoting innovation within these sectors.
Ultimately this transfer will maintain process were changed people's lifestyle, and propel progress across society as a whole.
As a as a key industry participants in the channel is currently pioneering privacy computing applications in website. The development of our first related our new product is nearing completion.
The associated ship product slated for our official tape out <unk> 24.
Furthermore, even talked about before we intend to further expand our investments across the favorable currency value chain.
Creating capital utilization efficiency through carefully chosen department opportunities to install at defy the company's foundation in anticipation of the industry's bull market.
In this dynamic environment, we will leverage our extensive industry experience.
<unk> advanced technological capabilities.
Two we relentlessly explore and expand the opportunities for the development of web site at the application level.
By propeller integration of blockchain technology was traditional industry, we aim to improve users' lifestyle and drive drive bronc development across industries and society as a whole.
Now I will provide a brief financial overview of the fourth quarter and full year of trying to tell the story.
First I'll take a look at the financial overview for the fourth quarter.
Our revenue was $75 5 million RMB or 5 million U S. Dollar in the fourth quarter of year over year increase of five 3%.
Increase was mainly due to primarily.
Due to one off sales of.
In intelligent growth products, which generally generated $12 6 million RMB in revenue and cross border funds honestly.
Our cost of revenue.
Decreased by 29, 3% year over year to $14 1 million RMB or 2 million U S. Dollar in the fourth quarter due to the sales of the <unk> intelligence a lot of products, which have be recorded inventory write downs of 11 million RMB in the previous quarters of 2023.
Our total operating expenses increased by 17, 9% year over year to $22 8 million RMB two three point.
2 million U S dollar.
In fourth quarter, primarily due to an increase in all categories of operating expenses specifically.
Research and development expenses increased by 42% to $2 14 million RMB or $2 million for the fourth quarter, our content on a three pronged 10 million RMB for the same period of 2022.
The increase was primarily attributable to an increase in expenses and labor cost for the design of the IC chips.
Sales and marketing expenses increased by seven 6%, a five 3% year over year to $1 8 million RMB or 0.3 million U S. Dollar in the fourth quarter, mainly due to an increase in personnel related expenses.
General and at EMEA expenses increased by 316.6% year over year to 7 million RMB or $1 billion in the fourth quarter largely due to an increase in lease related expenses labor costs and professional expenses.
Our interest income increased by 22, 3% year over year to $4 2 million RMB or 0.6 million U S. Dollar in the fourth quarter, mostly attributable to our effective fund management.
Other income decreased by 29, 6% year over year to $7 5 million RMB or $1 1 million U S dollar in the fourth quarter.
Primarily due to the decrease.
In grants received from the local governments.
Our net income was.
$8 1 million RMB or $1 1 billion U S dollar in the fourth quarter.
Basic and diluted.
Net earnings net earnings per ordinary share was 0.07, RMB <unk> <unk> in the fourth quarter. Each ads represents two of our company's class a ordinary shares.
Now, let's look at our full year $100 three financial results.
The revenue was $82 2 million RMB or 11.
$6 million in 2023, a year over year decrease of 83, 6%. The decrease was mainly due to the challenging crypto currency market implants, honestly, which resulted in decrease in sales volume and average selling price of our ASIC chips.
Cost of revenue decreased by 15, 9% year over year to $73 1 million RMB or $10 3 million U S. Dollar in followed by St.
The decrease was mainly attributable to the decrease in sales volume of our ASIC chips, largely offset by hour by an inventory write down and a prepayment write down totally.
Totally approximately.
The 24 7 million RMB.
Total operating expenses increased by 15, 7% year over year to $7 5 million RMB or $10 4 million U S. Dollar in Tony's honestly, primarily due to increasing sales and marketing expenses and general and administrative expenses, partially offset by research and development expenses.
Our R&D expenses decreased by 12 points.
6% to <unk>.
$42 3 million RMB, <unk> 6 million U S. Dollar is one three.
$48 4 million RMB in Panama.
The decrease was primarily attributed attributable to the different stage of our.
Our research and development of projects for you.
During the respective period offset by increase of labor cost and depreciation and amortization amortization expenses.
Sales and marketing expenses increased by six 5% year over year to $6 5 million RMB <unk> 9 million U S dollar and Counterparties three mainly due to an increase in personnel related expenses.
General and admin expenses increased by 118, 1% year over year to $25 2 million RMB or $3 6 million U S. Dollar in 2023.
Largely due to an increase in rental expenses labor costs and professional expenses.
Interest income increased by 15, 5% year over year or two.
$16 8 million RMB or $2 4 million U S dollar in.
Most of the layout to build or to our effective fund management.
Other income decreased by 55, 6% year over year to 30 32.
So 13 million RMB or 1.9 million U S. Dollar a 2023, primarily due to a decrease in Guangxi <unk> received the front of local governments.
Our net loss was <unk> $6 8 million RMB, all three eight media U S dollar and Quantifies III.
Our basic and diluted net loss per share was.
0.2 to RMB <unk> three.
U S dollar in 2023, each ads represents two of our company's class a ordinary shares.
In California, three industry volatility access great pressure on our business development, resulting in year over year declines in both topline and bottom line performance however, as the industry evolves.
Crypto related applications are increasingly embraced by regulators and the mainstream in wafers we.
We have clearly first of that the industry has entered entered a new upward cycle in this space.
Anticipate a much broader range of web three applications to emerge we remain confident in the long term prospects of the Webster industry and are deeply committed to its development as such we continue to pursue initiatives that bolster our competitiveness and us and strengthen our <unk>.
Along the value chain.
As we step into 2024, we will increase our investment in progress proactively exploring development opportunities within the industry to better position ourselves for sustained long term growth.
Thank you for your continued support we look forward to updating you on our progress in the future.
Now I'd like to turn the discussion over the operator for any questions.
Thank you and as a reminder, press star one one to get in the queue and wait for your name to be announced to remove your question simply press Star One again, if he would like to ask your question in Chinese. Please also translated in English. So we'll pause just a moment to assemble the roster.
One moment for our first question.
And he comes from the line of less Canyon with the policy Amtech Group. Please proceed.
Thank you for taking my question.
Can you please provide some insight into market conditions in the quarter and that impact on sales growth as well.
What is your outlook for 2024.
Thank you.
Thank you for the question Tim.
Pizza as he took the hunting.
So we're starting on a quasi ETR Fernando Chunghwa.
Oh.
And he says you do show dog B B.
<unk> took the ETF with homes what are your cheat sheet.
Hi, Andy how to ensure IEP that'd be wage or a change in our full support.
<unk> put all your question now.
So a doctor the enchant silo Womans side, what happened I think Daniel possible open job, where marathon yet too.
These are people with a social work at all.
Bob <unk>, our chief Resi issue downgrades into Central Hall, Yorkshire shell at <unk>.
In fourth quarter, driven by the anticipation of the PTC ETF of pro and other positive industry developments.
Surprised of mayor of crypto currency, especially bitcoin rebounding into a varying degrees as a result.
Robust data growth in downstream products orders.
Our fourth quarter sales to $5 million, marking a return to a profitability of two consecutive quarters of losses.
Oh, the Australian hunting point on the Telecom Asia. They also in Elektron I'm wondering if we're going to add.
If only I know most of the Chilean combo that changing <unk> tacky one channel.
It will take out your top wholesale going to the stockpile.
Okay.
Well no more change in booth Tortuga.
So this is Sean.
In the summer.
Sure Yeah. So just on that <unk> should have phase one penny women's downhill CFR.
<unk>.
It sounds like that one.
Looking ahead to 2024, given the clear market recovery trends our outlook for the year has improved.
The company's newly announced products featuring <unk>.
12 nanometer process nodes are scheduled to hit the market no later than the second quarter. Additionally, we have accelerated the chip tape out process.
Currently we have initiated multiple projects related to the 12 nanometer process node technology, particularly in the first.
Privacy of computing and cutting edge noncompetitive chips.
We aim to conclude today's projects R&D.
Publicity closed later in the development of before second quarter.
Awesome, Thanks for the young portfolio, 14% that.
<unk> got a symbolically ball.
Can you to the higher the Buda, we see some that will move us off of current and future Chinese how we use them.
Don't collateral Yanzhou haynesville residential beds.
<unk> father tagging, one can put you in <unk>.
It sounds like a woman uncle whole website, you can put tundra unwieldy agenda web sandwich, which as you pointed out.
In 'twenty 'twenty, four we will ramp up our investment in R&D to pursue our higher returns on capital However, given the ongoing interest rate volatility.
I'm able to provide a specific financial forecast for the year now.
Nevertheless, with ample financial reserves and long term and a diversified industrial vision and our strategy as well as prudent operational.
To control practices, we are confident in our ability to grow alongside the Webster industry and to emerge as a leading provider of Webster infrastructure.
Thank you for the answer now let's move to the next question. Thank you one moment please.
Alright. It comes from the line of Maryann that age with case of investments. Please proceed.
And now it's just about any time to do that.
What's your on Guangzhou, Shanghai shall go shall shall go down.
I E are the south shore.
And now what you're saying.
Could you. Please provide insights on your post acquisition strategy for the go shall brand and how they are expected to influence south and performance. Thank you.
Sit here Nick.
You cannot have a cultural hang on I'll watch I'll, let John kind of deal.
So generally it's home to the.
You guys from English agenda at you'll hover and Ting.
Consequent wolfram geographical to show the pin pad.
How the central shuttle one track coach it had a huge unmet need should all omni channel coupons.
<unk> <unk> to a central social data.
Cautionary gives us in Canada.
Uh huh.
<unk> heard she'd holiday as an example.
We successfully closed the deal today, starting tomorrow the company will stimulus take over the go shop brand its global sales website and social media channels.
Enable us to directly market and to sell mining machines and other computing products.
With our <unk> chips and the go shop brand on a global scale, except in certain regulated regions.
I'm trying to put it out for most of them will be also chunghwa lesions our website digital social she can shop, a mood change in Guam fans that costumer digitizing cash <unk>.
Clearly unsuitable for Showtime piece on solar handling of items, what are your bullish of magic holding up he gets you that Shiloh Eagle pass shortly.
And then go away once the way ladder website <unk> Doc has seemed to reshuffle Sheila.
From a strategy perspective, interchanged aimed to become a leading provider of <unk> infrastructure. We have already conducted extensive R&D efforts on blockchain infrastructure products beyond HTC chips.
Brian go shop brand and the memory its brand influence among downstream users we are establishing new independent sales channels for the company its future <unk> III products.
So if the macro gaucher concentrate country, Australia, either one not to you to answer the shuffle ear to the Aesop high shelter at home without <unk>.
<unk>.
You kind of hernia, though.
What do we see with <unk>.
For <unk>.
Took a deal continued wave two.
So it goes to the yeti of AT&T to you that's really helpful.
Therefore, the brand acquisition and represents a stretch.
A significant more export a short term impact ourselves and the performance.
We are ultimately dependent on the product offering and industry dynamics.
Gave us a mortality of blockchain industry. It is a very challenging for us to quantify the impact at this point. However, we believe it will yield highly positive outcomes in the long run.
Thank you for the answer let's move to the next question.
And I'm not showing any further questions in the queue I will just conclude this period and conference for today. Thank you all for participating and you may now disconnect.