Asustek Computer Inc Regs

Hello. Welcome to the ASUS Quarter 3 2024 Online Investor Conference. Today's conference will be held by ASUS Tech Computer Co-CEO S.Y. Xu and Samson Hu alongside CFO Neku. The conference will be divided into two parts. In the first part, CFO Neku will start by outlining our Quarter 3 financial results. Next, our two co-CEOs will go over the operational strategies and business outlooks for ASUS. For the second part, we will be conducting a Q&A session. You are welcome to raise any questions you might have in the panel on the left side of the webpage. Questions will be collected and answered. Let us start with a presentation from CFO, Mr. Lin. Good afternoon, everyone. Please allow the team to make sure that the slide numbers in the materials we have distributed are consistent with the ones that I have. Please allow us a moment to make sure that the page numbers are aligned. Okay, then please turn to slide number five. Here we have an overview of ASUS brand income statement for Q3 2024. Revenue in Q3 reached $156.7 billion, a quarter-over-quarter increase of 15%, and year-over-year increase of 24%. Operating profit came in at $11.1 billion, up 4% from the previous quarter and 32% from last year. Net income after tax was $12.5 billion, representing a quarterly growth of 6% and an annual growth of 13%. Earnings per share for the third quarter were $16.8 trillion. Gross margin was 17.1% and the operating margin was 7.1%. This is a significant increase. excellent performance. We have significantly outperformed our earlier forecast on both operational and profitability. Breaking down the growth drivers from different perspectives, first on the product side, ASUS has achieved notable market share gains in both gaming laptops and co-pilot plus PCs. We have achieved steady share expansion outpacing in the GPUs. Regionally speaking, China's market has actually driven a substantial portion of growth for ASUS in Q3. This was driven by the popularity of major game titles. and also supported by government economic stimulus and consumer subsidies, both of which have spurred demand and boosted shipments in the China region. From an operational management perspective, the ASUS performance in Q3 met our expectations, with successful inventory management and partial reversals of inventory write-downs contributing to our overall profitability. In summary, these factors underpinned ACES Q3 revenue and profit. Now moving on to the next slide. For non-operating items, investing income totaled $560 million with foreign exchange gains of $2.33 billion and dividend income at $1.09 billion. due to a sizable dividend from an investee company recorded in Q2, there was an approximate $1.8 billion dividend income that quarter, while Q3's dividend income came to $490 billion, totaling now our income in Q3 to around $4.05 billion. Next, on the balance sheet, overall management aligned with our expectations. Net inventory decreased from $145.3 billion last quarter to $138.6 billion this quarter. This met our management targets. For further details, please refer to the slides we have provided. Turning to the next slide, this is our revenue breakdown by business unit. The system business group accounted for 64%, the open platform business group 34%, and the AIoT business group 2%. Recently, Asia contributed 48%, Europe 29%, and the Americas 23%.

Next slide.

Looking ahead to Q4 2020, in terms of market demand, we have had a very high volume of demand for Q3. Currently, Q4 demand appears relatively uncertain. Discussions with channel partners suggest that they will be adopting a more cautious approach to inventory and operational management. For operational management, Asus has achieved significant gains and competitive advantages in the gaming and co-pilot plus PC segments in Quarter 3. We plan to expand investments to solidify our long-term strengths in these two key markets, which we have already secured a lead in. We anticipate that for quarter four, we will have increased R&D and development expenses. Given the potential seasonal demand fluctuations, we will also strategically deploy marketing and channel promotional activities. Considering the overall environment and strategy for quarter four, we expect the quarter to remain relatively stable for ASUS with a focus on preparing for growth cycles. So overall for quarter four, I do believe that the season will prove to be relatively stable. What's important is that going into 2025, we will set up ourselves for success. This includes potential upgrades in gaming products and graphics cards in early 2025, and perhaps the introduction of more diverse AI products, AI PCs, throughout the year. starting from early 2025. These are areas in which we are proactively laying out long-term strategies for. So as for our quarter for outlook, we expect that the PC product revenue will decrease by about 15% sequentially, but it will nonetheless be a 20% year-on-year growth. For components and servers, we anticipate 5% to 10% sequential growth and over 30% year-on-year growth. This concludes the financial outlook. Next, I'll hand the mic to our two co-CEOs for the discussion on the ASUS strategy and operational outlook. Thank you. Good afternoon, investors and members of the media. First, I would like to thank everyone for joining ASUS quarter three earnings call. I am ASUS co-CEO, SY Xu. I am pleased to share ASUS outstanding quarter three 2024 results with you. In quarter three, Asus achieved a record-breaking brand revenue of $156.7 billion, setting a new high. Our net income after tax also reached a record $12.5 billion TWD, with earnings per share at 16.8%. In the first half of 2024, ASUS demonstrated excellent execution, enhancing operational efficiency, and advancing AI-driven transformation. This improved our overall effectiveness and produced remarkable financial results, as you can see in the charts. ASUS net income is steadily progressing toward our original targets. Although quarter four may see some seasonal fluctuations, we expect annual profits to meet our projections. As we enter the second half of 2024, We anticipate a new growth cycle driven by AI. ASUS will lead the initial wave of AI PC products, launching several AI platforms and solutions to foster growth within the company and the broader AI field. We will continue to expand our competitive edge and solidify our leading position on the market. Moving on, I will outline ASUS strategy and goals. This year, I think one of the hottest topics has undoubtedly been generative AI. As our chairman, John Ishii, announced at Computex, Asus is transforming into a full-spectrum AI company. He emphasized that AI presents a once-in-a-century opportunity for the PC industry. Leveraging this momentum to drive Asus' growth has naturally become a core strategy for us. Each of our three core business groups has distinct focus areas. The systems BG is fully dedicated to AIBC development and has already achieved solid results in the market. For the AI server BG, following a five-fold growth target achieved earlier this year, is set to start shipping the latest GB200 funnels with client orders expected to commence next year. For the AIoTBG, meanwhile, we are using generative AI to enhance existing products and deliver complete solutions. We believe that this phase of rapid generative AI development is ideal for product innovation, allowing us to secure market leadership and improve customer satisfaction. The second key area is our core product lines. Over the past few quarters, ASUS broader gaming products have come to represent over 40% of our total revenue, making gaming as an essential area of growth. In addition to gaming motherboards and graphics cards, we are maintaining our market share also in gaming notebooks, accessories, especially for keyboards and mice. These two products have received consumer praise, which encourages us to continue to innovate and maximize customer satisfaction to capture this fast-growing market. On the market front, ASUS has traditionally allocated more resources toward the consumer segment and has achieved solid results there. Our latest initiative is expanding into the commercial sector, the commercial PCPU, involves engaging with government, corporate, and business channel partners. For the server, BU is associated with cloud data center clients, and the AIoTBG is focused on various industries. Our goal is to maximize corporate user satisfaction and establish a growth path for new market share strategies through maximizing user satisfaction. The progress should become more visible over time. Regarding AIPC, ASUS is leveraging its strong R&D and innovative capabilities to lead the industry with the launch of the most comprehensive AI notebook lineup in 2024. Our lineups cover consumer, business, creative, and gaming users. With options across Qualcomm, Intel, and AMD platforms, customers have a full range of choices. Given our solid market foundation, we are pleased to announce that ASUS is a leading brand in the Co-Pilot Plus PC market, capturing over 25% of market share. This milestone demonstrates our commitment to innovation and AI leadership. We believe that 2024 is just the start of the AIPC development cycle. The AIPC product upgrade cycle will span multiple years. And ASUS will continue to expand its market influence and deliver top-notch products and services based on our insights into customer demands. Next page. ASUS has long cultivated growth in the gaming segment. achieving a compound annual growth rate of over 15% from 2020 to 2024, highlighting the vast potential of the gaming market and ASUS leadership in this space. In Q3 2024, ASUS gaming PC market share grew 20% year-over-year. This is an impressive feat as our overall market share has reached This impressive growth again underscores our strong market position and leadership. To further strengthen our gaming market advantage, ASUS will continue to invest in developing a complete gaming ecosystem. We aim to deliver the best gaming experience, investing in both hardware and software to elevate user satisfaction and engagement. Now, I'll hand it over to Samson for a more detailed presentation. Thank you. Hello, everyone. I am ASUS Co-CEO Samson Hu. I will now go over the performance of each business group and highlight our key strategies. First, the system business group recorded a year-over-year revenue growth of 15% to 20% in Q3. This was driven by effective execution and product strength. Key factors include prudent inventory management, product portfolio updates, and streamlined product shipment cycles. According to market research, ASUS Q3 shipment volume increased over 10% year-on-year and more than 30% quarter-on-quarter, outperforming the industry average by a large margin. Furthermore, Asus has maintained its leading position in the gaming laptop market. We continue to enhance the Asus gaming experience and push our market share to a record high of over 30%. As previously mentioned, We launched the most comprehensive cross-platform Copilot Plus PCs in 2024. In this initial launch phase, we captured an impressive 25% market share, reinforcing our leadership position. Copilot Plus PCs contributed to a higher than expected share of Acer's overall laptop revenue in Q3, as it reached middle-to-high single-digit numbers. We believe that 2024 is only the beginning of the AIPC growth cycle and we are confident in continuing to leverage innovation to expand both our market influence and mindshare among customers. Next slide, please. in our open platform business group quarter three revenue grew significantly by 35 to 40 percent year-over-year revenue from graphics cards including both premium and gaming series grew by five to ten percent maintaining our leadership in this premium and gaming segment ai server sales have also achieved several-fold year-on-year growth. For Q3, our internal share of brand revenue in this segment exceeded double digits for the second consecutive quarter. On a four-year basis, as previously stated, our server revenue is on track to grow five-fold by the end of 2024. As for securing new customers and client orders, we have the initial orders for the GB200 units, which will further support our progress in the AI server market. Now moving on to the next slide. For the AIoT business group in Q3, we sustained the high growth momentum from Q2, achieving a 150% year-on-year revenue increase. Their NUC product line in particular was a major contributor, with ASUS expanding AIoT sales channels and broadening its user base to include professional, commercial, and industrial sectors. Now, to give an example, we co-developed a high-performance AIoT NUC platform with Intel, and it was successfully adopted by well-known semiconductor testing and packaging equipment brands for high-speed signal processing applications. I think this is without a question an important investment and an important milestone. The ACES AIoT business group will continue to work closely with partners and advance in areas such as smart cities, smart manufacturing, healthcare, retail and others. Next slide please. Now, thanks to years of strategic investment, ASUS has established itself as a leading gaming brand with ASUS ROG. In August, ASUS achieved over 33% market share in the gaming laptop market, particularly approaching 50% market share in high-end models that make use of the RTX 4080 and RTX 4090 series GPUs. The ROG brand was also recently nominated by the Times Magazine as the world's best gaming hardware brand, a significant honor, I'm sure. Additionally, we have won multiple Best Gaming Laptop awards from major media outlets, further solidifying our leadership in gaming laptops and boosting market share. Looking ahead, ROG is introducing virtual AI assistant. It was unveiled at Gamescom. The virtual assistant leverages the LAMA3 language model and runs on AMD Ryzen AI 300 series devices. It allows users to interact directly with the virtual assistant for an enhanced experience. ROG also unveiled its first thin and light NOC gaming device. which provides high-performance gaming in a compact format. Lastly, we have also continued our engagement with the community to expand our reach to more potential users. Recently, we launched a video series titled Exploring Republic of Gamers. The video features in gaming and tech, sparking strong discussion across gaming media and forums. And it is worth noting that the second video of the series will premiere globally next week to maintain this momentum. And this concludes the operational updates for each of our business groups and key product lines. Thank you. Thank you to our CEOs and CFO. We will now proceed to the Q&A. Please submit your questions on the left side of the web page under the question mark symbol. We will review your questions and address them shortly. Thank you. Our first question comes from Morgan Stanley. First, we would like to congratulate ASUS for its excellent results in quarter three. Now, as you mentioned, that for quarter four, there will be more R&D and retail-related investments and expenses. Can you talk about your operating margin and growth margin expectations for quarter four? I'll be answering this question. Now, firstly, for quarter four, we will be experiencing changes to our product cycles because historically for graphics cards and motherboards, they have sold relatively poorly in quarter four, while for integrated systems products, they have sold well for quarter four. So due to this trend, we have naturally expected that our gross margins will naturally adjust downwards as a cause of the seasonal changes. Now that is of course due to the changes to our component product sales. Now as for operating margin, as we mentioned previously, ASUS is focused on its proactive position in the market both short-term and long-term. Now we know that even though quarter four is perhaps a less performance season, but as we continue to maintain an active stance for R&D and retail promotions, we will We are confident that this will aid in our long-term growth cycles. So overall, we believe that for quarter four, it will match our previously set long-term operating margin targets, which is about a 4% to 5% operating margin percentage. Now going forward into 2025, we expect to see the upgrade cycle for gaming products to kick in, and this will possibly last throughout 2025. Markets such as AIPC and increases to the market penetration of these AIPC markets will also help ASUS ascertain its leading position in the market owing to product upgrade cycles, increasing our company value as a whole. Thank you. The next question comes from JP Morgan. We would like to congratulate Asus for its excellent results in Quarter 3. Can you talk about how big a percentage does the server business group account for? In particular, how much does the AI server contribute? Also, can you talk about the transfers of sales from AI servers? Okay, so for Quarter 3, I think we can... look at this from a few different perspectives. I think back in quarter two, I think that in the earnings calls, we reported that to be 10 to 15%. So for quarter three, we also expect AI servers to fall in this range. AI servers still account for the majority of our server business group sales, about 80% of the business group. As for quarter four, we expect that The growth will probably be a continuous growth from season three, or quarter three. But as for whether we will be able to acquire more orders from competitors, that is something that we cannot make clear at this moment. But what I will say is that we are... committed to the cultivation of this product segment, this market segment, and to the expansion of the business group as a whole. So I'm sure that as long as we provide competitive products, we will be able to get more orders. Thank you. The next question comes from JP Morgan. As you mentioned before, the first wave of GB200 orders have already arrived. Can you confirm when you expect to ship those GB200 servers and also can you talk about the clients to which the servers are going to and also the profitability from the GB200 products okay I will answer this question now for the first three quarters our products center on the H100 chips starting October we have started to see H200 and GB200 chips and as we mentioned we have started to receive orders for GB200 chip products but Currently, we are in the validation stage, which means there will be less shipments for validation purposes. Now, per customer expectations, we expect to officially increase volumes by quarter one 2025, but that will ultimately depend on how nvidia is able to supply us with chips we are overall optimistic about the prospects of these orders we will work closely with suppliers to ensure that our server products can be delivered properly to satisfy customer demands for the next question from commercial times we would like to ask the co-ceos whether asus is how ASUS is performing in the gaming PC and the commercial PCs for its Europe, Americas, and China regions. Okay, so I think that for Europe, Americas, and China, I think that was something that was already covered by CFO Lee Woo. So in terms of the relative percentages, it's more or less corresponds to what we have already talked about. But as for the China market, I think it accounts for the highest percentage. This has indirectly correlated to our excellent results for Quota 3. The main cause of which, I think, is because of the release of the game Wukong Black Myth. because this was a AAA title with relatively high hardware demands. And this popular software has driven the sales of these high-end hardware. This, in combination with subsidies from the Chinese government that targets both the high-end notebook and the gaming notebook laptop markets, have significantly benefited Asus. okay so the next question from the commercial times again can you talk about whether you are seeing the replacement cycles for commercial PCs to kick in right now for 2025 how do you treat the prospects for the market as a whole okay so for the commercial PCs I think there are a few factors at play here firstly is Windows 10 is starting to reach an end of life status. So starting from early next year, we anticipate that Windows 11 will drive some replacements of the commercial PCs. Other positive factors also come from the fact that the PCs from the work from home period during COVID will likely start to be replaced starting early next year. So these two factors in tandem will likely aid in the sales of commercial PCs next year. Another topic of discussion, of course, is AI PCs. Now for the AI PCs will mainly benefit the consumer market or mainly the commercial market. We do see AI PCs play out in both markets. So the whole, we think that Talking about commercial PCs, both Windows 11 and the COVID-driven upgrades and replacements and implementation of AI PCs will all be positive driving factors. Okay, the next question comes from UBS. Will ASUS consider using mergers as a way to promote the growth of its server business unit? And also, in terms of manufacturing strategies, If ACES is relying on in-house manufacturing or external contractors? And a more detailed question is regarding your GP200 products. Are you manufacturing them based on the MDL72 versions or the MDL36 versions? Asus has always been open to the possibilities of mergers, provided there are good opportunities and good partners. We are open to the possibilities of mergers. But besides mergers, Asus has invested a lot of resources to increase the R&D capabilities for Asus in terms of the server market segment. So starting last year, we have had some very experienced foreign hires coming to the company to help us better our growth. Regarding our manufacturing strategy, I think ASUS has started as a brand, which is why for manufacturing, we have partnered with EMS for manufacturing. But the service segment, due to the nature of the product, we may adopt a slightly different strategy for major clients like Google and other cloud service providers they hope that the clients they hope that the suppliers they work with can take care of everything from design to manufacturing without the need of relying on external manufacturers which is why we've also received requests for this sort of streamlined production from our clients which is why we are now actively planning such manufacturing possibilities. We have a production line planned for the States that is expected to commence operation by the end of this year. And regarding our GP200 products, our orders are focused on the MVL72, the premium spec version of the products. Thank you. The next question comes from Morgan Stanley. Can you comment on the newly elected President Trump and how his policies regarding tariffs and supply chains may impact ASUS. Okay, I think that this is of course a very topical issue. Now, for this issue, I will be answering it from two perspectives. From a market expansion perspective, we reply by distributing our market, And the second is from the supply chain perspective, which is about, of course, supply chain resilience. Now, sourcing from supply chain resilience, President Trump was, of course, the one that sorted the so-called U.S.-China trade war. By then, we had already sorted to find different manufacturing partners and suppliers and distribute them across the globe to increase the resilience of our supply chains. This is something that we can adjust dynamically at any time as needed. I'll quote an actual example. Take, for example, our motherboards. Starting from the U.S.-China trade war, we've started to work with supply partners outside of the China region. Now, in terms of motherboards, for the past few years and even now, most of our motherboards that are shipped to America now are manufactured outside of China. As for other products, as we mentioned before, we also have distributed suppliers throughout the globe, which is going to allow us to dynamically adjust our supply chains as needed. As for market distribution, besides the North American or the United States market, The CFO has, of course, also mentioned that we have a market presence in Europe, in Asia, in India, and even in South America. We have a very wide distribution of markets, which is why I think that the trade war will have limited impact for us. Thank you. Okay, the next question comes from KGI Asia. Our question is regarding ASUS' perspective on the PC market for 2025. and also for the AIPC will have higher market penetration in 2025. Okay, I'll answer this one. For 2025, the PC market expectation will fall between 3% to 5% growth. And as for penetration rates of AIPCs, I think that because this year it's considered the... the starting year for AI PCs, but it has proved to be very popular despite its latency. However, it actually accounts for a relatively low number among the total amount of laptops exported. This includes both for Intel and AMD. Now, based on the fact that the new platforms more or less have co-pilot PCs that meet the Microsoft definition, we believe that the AIPCs may have a market penetration rate of 20-30% going into the next year. We believe that for 2026, it might even be possible for AIPCs to account for 60% or even higher of the total laptop sales because vendors across the globe have come to acknowledge how important AIPCs are to the PC industry as a whole. there will not be a vendor that is going to be willing to give up their stake in this rapidly developing market. Which is why for vendors, they will try to match the co-pilot plus PC hardware requirements. But besides hardware, OS and software are also important components of AIPC. Now, for this year, Microsoft is continuing to optimize their Copilot Plus PC operating software. And for the years to come, I think they will continue to promote third-party softwares with AI capabilities to truly drive AI PC. into becoming a mainstream PC option. This is something that we will of course work closely with partners including Intel and AMD to promote the AI PC ecosystem. Thank you. Okay, so right now we see that for the questions that we are seeing, we We seem to have covered most of the questions raised already. If you have any further questions, please feel free to submit them on our network chat, our live chat room. Thank you. Okay, we have a new question from Tachan Securities. We would like to ask Asus about your opinions on Qualcomm. or how they are working or how they are faring for the AIPC trend. I think that Qualcomm is no novice to the AIPC market. However, its initial debut to the AIPC market was perhaps not as successful. But this time, owing to the support from Microsoft, Qualcomm should probably have reached results that they expected. But I think what everyone is most concerned with is how the Qualcomm platform is performing when it comes to software compatibility. Because again, this comes back to the issue of OS and CRT compatibility issues. Now, we believe that these compatibility issues are being solved At the same time, because the ARM platform tends to have lower power draw, we see that clients are actually very satisfied for what the Qualcomm platform has been able to deliver when it comes to battery life. I believe that as a whole, Qualcomm's addition to the PC ecosystem is positive for the consumers because having more competitors ultimately means that there is going to be more variety to choose from for the consumers. Thank you. Our next question comes from Midland Holdings. As the CEO mentioned, you believe that The 2025 PC market will probably be in the low single digits. As for the average sales price, do you have any opinions or inputs? Also, do you expect that the AI PCs will drop to the mainstream price points or how do you think it will behave? Okay, I think this is also a topic that we have covered before because as we mentioned before, AI PCs have certain hardware requirements such as memory. at the very minimum AI PCs has 16 gigabytes in fact most of the models I see have actually 24 gigabytes of memory at the same time because AI PCs has CPU chips that has additional NPU on the die it means that these products will tend to have a higher price than traditional PCs this in combination with other hardware requirements means that AI PCs will have a higher MSRP, higher street price than traditional PCs by one to two price bands, which translates to about 100 US dollars more at the very least. And there's also the fact that as we look at how AI PC chips are coming with new generations, we think that AIPCs will probably still be mostly premium with some models coming down to the mainstream price points. But again, only to the hardware requirements, the price points will remain high, meaning that the ASP for the PC market as a whole will increase. Thank you. For the next question, it comes from Windrocker Stock Market Consultancy. Now we have a question about the Intel Lunar Lake CPU because this generation of CPUs have integrated low-power DDR5, which gives it a low-power draw advantage. Is it possible that all future x86 CPUs will develop in this direction? And this sort of memory integrated on-demand design, how will it impact PC product profitability? Okay, so I will answer this question. Now, I think that the Lunar Lake generation of CPUs marks an important milestone for Intel because this is the first CPU that Intel is introducing in collaboration with TSMC. We have conducted a lot of internal studies at ACES recording the Lunar Lake CPUs, and right now, we believe that the design behind the Lunar Lake CPUs are very much on track. On the whole, the customer experience is very positive. But the peculiar thing about the Lunar Lake CPUs is the fact that the memory is built into the CPU die. This, of course, has certain distinct advantages when it comes to both performance and battery draw. But besides these advantages, there are also limitations as a result of this change because traditionally, memories tend to be affixed to the motherboard from a traditional PC perspective, which means that clients tend to have more flexibility when it comes to choosing how much memory they want for their PCs. But because Lunar Lake CPUs have their memories integrated onto the die, this means that there's only going to be two choices for the customers to choose from, meaning that there's less choice for the consumers. And at the same time, it's also going to have less expandability when it comes to memory. for system integrators it will also impact them because due to the fact that the memory is being packaged inside the CPU die it will help with reducing the size of the memory on the PCB as a whole it will help them provide a lighter or a smaller design but because of the memory is integrated into the CPU die it will also decrease product flexibility at all so there are pros and cons to this at the same time based on market media reports Intel seems to not want to continue this sort of memory integration architecture for its future CPUs. This is likely a response to the feedback that it has gotten from the market. Thank you. Thank you. The next question comes from Midland Holdings. For 2024, ASUS was able to achieve a five-fold growth for its server business unit. Can you talk about how you anticipate the server business unit to perform in 2025 and also will it surpass the average growth rate of the market? Okay, so right now ASUS is very much committed to the server market segment. It is one of our internal company focuses. We are gradually shifting from the H100 to the H200 to now the GB200 chipsets. We are seeing that there are more and more product demands and customers that are demanding these sort of AI servers products. We are expanding from clients in the Asia regions to clients coming in from Europe and the Americas. So, on the whole, we think that we will actively invested in our AI server business unit but due to factors restricting the PC market in 2025 we actually have more we actually carefully assess how we lay out our company operating target at the end of each year meaning that we will not be able to disclose our plans for the AI server market at this point. We will talk about that in greater detail for our next earnings call, including our plans for our gaming products and our server products. Thank you. Now we have looked through our chat room and seen that we have addressed most of the main topics of interest. If there are any questions that we didn't cover, please feel free to reach out to our team after the meeting via email or phone. Now we will turn the floor back over to our two co-CEOs to conclude the earnings call. Thank you. First of all, I would like to once again thank all employees at Asus for their hard work in delivering such strong results in Q3. We are also grateful for the support of our investors and media for covering our progress. Asus remains focused on key operational priorities, concentrating resources on high growth areas, particularly those related to AI and gaming. While our past performance in the consumer market has been excellent, we also aim to make significant strides in the commercial sector where we will continue to apply our efforts. We look forward to your ongoing support. Thank you. Hello, I am co-CEO Sam Sung-Hoo. I would also like to extend my gratitude to all our media and investors for taking time out of your schedules today to attend our earnings call. Although 2024 is not quite over yet, we anticipate that this will be a strong year overall for ASUS. Looking ahead to 2025, we will continue to solidify our leadership in core areas like gaming, graphics cards, and other products to drive ongoing growth. Furthermore, we plan to invest strategically in business units such as commercial PCs, AI servers, and AIoT, to enhance our competitive edge and establish new engines for growth for the company. I believe that the current wave of AI presents a transformative shift for the ICT industry. Across segments like AIPC, AI Server, and AIoT, from cloud to edge to end devices and spanning both products and solutions, ASUS has laid a comprehensive foundation and is well positioned to capture this momentum. We are confident and determined to seize the new opportunities offered by AIPC's driving growth in the short, medium, and long term to create value for our shareholders. Thank you.