Asustek Computer Inc Regs (ASUUY) Q3 2023 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello, welcome to the ASUS Q3 2023 Online Investor Conference. Today's conference will be held by ASUS Tech Computer Co-CEO, SY Xu, Samsung Hu, and CFO, Nick Wu. The conference will be divided into two parts. In the first part, the CFO will outline our Q3 financial results. Next, our two co-CEOs will go over our operational strategies and business outlooks. The second part will be a QA session. You are welcome to raise any questions you might have in the left-hand panel. Questions will be collected and answered. Let us start with the presentation from Mr. Wu. Thank you. So please refer to the fifth slide on the PowerPoint. On this slide, you see the ASUS Quarter 3 2023 Brand Income Statement. For quarter three, we achieved a net revenue of 126 billion, which is a quarter-over-quarter increment of 17%. We were able to achieve a significant growth margin percentage improvement from 12.5% in quarter two to 17.4% in quarter three. The main improvements came from our product mix, and we were able to cycle in new products. For the first half of this year, ASUS was able to complete its inventory adjustment back to normal levels. And so for quarter three, we expect to introduce more products into our product mix and to introduce more innovation into our product cycle. As a result, we were able to achieve a significant growth for our gross margin percentage. I would like to make special mention to our sales allowance, which went from negative 17.7% in quarter two to negative 15.4% for quarter three. Our inventory allowance also went from 2.6% for Q2 to 3.1% for Q3. These two factors have also contributed to our improvements in operating margin percentage. As we are able to make improvements, our operating profit came to 8.4 billion, six times improvement quarter over quarter ...