Gogoro Inc (GGR) 2023 Q2 法說會逐字稿

Welcome to the Gogoro Inc. 2023 Q2 Earnings Call. This session will be recorded. I'd like to introduce Bruce Aitken, CFO of Gogoro, who will kick us off.

歡迎參加 Gogoro Inc. 2023 年第二季財報電話會議。本次會議將被記錄。我想介紹一下 Gogoro 的財務長 Bruce Aitken，他將為我們揭開序幕。

Thanks, operator, and thanks to everyone for taking the time to join us today. I'm Bruce Aitken, CFO of Gogoro, and I'm pleased to welcome you to our second quarter 2023 earnings call. Hopefully, by now, you've seen our earnings release. If you haven't, it is available on the Investor Relations tab of our website, investor.gogoro.com. We will also be displaying the materials on the webcast screen as we go. We're looking forward to sharing our Q2 results as well as providing guidance on what we're seeing as the outlook for the balance of 2023. Before our CEO of Horace Luke shares, I'd like to introduce Michael Bowen of ICR, who will share the process for today's call and provide some important disclosures. Michael?

謝謝接線員，也謝謝大家今天抽空來加入我們。我是 Gogoro 財務長 Bruce Aitken，很高興歡迎您參加我們的 2023 年第二季財報電話會議。希望您現在已經看到了我們的收益報告。如果您還沒有，您可以在我們網站 investor.gogoro.com 的「投資者關係」標籤上找到。我們還將在網路直播螢幕上即時顯示這些材料。我們期待分享我們的第二季業績，並就我們對 2023 年平衡前景的看法提供指導。麥可？

Thanks, Bruce. I'm sure you're all looking forward to hearing from Horace and Bruce on behalf of Gogoro. But before that, allow me to remind you of a few things. You are currently on mute. If you have a specific question, please use the chat function in the system to submit questions, and we'll answer as many as time allows. After Horace has given a brief overview of Gogoro and some of the business highlights from Q2. Bruce will go a bit deeper into the Q2 financial results. During the call, we will make statements regarding our business that may be considered forward-looking within applicable securities laws, including statements regarding our second quarter 2023 results.

謝謝，布魯斯。我相信大家都很期待聽到 Horace 和 Bruce 代表 Gogoro 發表的演說。但在此之前，請容許我提醒你幾件事。您目前處於靜音狀態。如果您有具體的問題，請使用系統中的聊天功能提交問題，我們會在時間允許的範圍內盡可能多地回答。之後 Horace 簡要介紹了 Gogoro 和第二季的一些業務亮點。布魯斯將更深入地介紹第二季的財務表現。在電話會議期間，我們將就我們的業務做出可能在適用證券法中被視為前瞻性的聲明，包括有關我們 2023 年第二季業績的聲明。

Management's expectations for our future financial and operational performance, the capabilities of our technology, projections of market opportunity and market share, our potential growth, statements relating to the expected impact of the COVID-19 pandemic, supply chain issues and other headwinds facing the company. The company's business plans, including its expansion plans, the company's expectations relating to its growth in overseas markets, statements relating to the potential of our strategic collaborations, partnerships and joint ventures, statements regarding regulatory developments and our plans, prospects and expectations. These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed prior to market open today and in our SEC filings. We undertake no obligation to update forward-looking statements, except as required by law.

管理層對我們未來財務和營運績效的期望、我們的技術能力、市場機會和市場份額的預測、我們的潛在成長、與 COVID-19 大流行預期影響有關的聲明、供應鏈問題以及公司面臨的其他不利因素。公司的業務計劃，包括其擴張計劃、公司對其在海外市場成長的預期、有關我們的策略合作、夥伴關係和合資企業的潛力的聲明、有關監管發展的聲明以及我們的計劃、前景和期望。這些聲明並非承諾或保證，並且受風險和不確定性的影響，可能導致其與實際結果有重大差異。有關這些風險的資訊可在我們今天開市前發布的收益新聞稿和我們提交給美國證券交易委員會的文件中查閱。除非法律要求，我們不承擔更新前瞻性聲明的義務。

Further, during the course of today's call, we will refer to certain adjusted financial measures. These non-IFRS financial measures should be considered in addition to, not as a substitute for or in isolation from IFRS measures. Additional information about these non-IFRS measures, including reconciliation of non-IFRS to comparable IFRS is included in our press release and investor presentation provided today. Now over to Horace.

此外，在今天的電話會議中，我們將參考某些調整後的財務指標。這些非國際財務報告準則的財務指標應作為國際財務報告準則的補充而不是替代或孤立地考慮。我們今天提供的新聞稿和投資者介紹中包含了有關這些非國際財務報告準則指標的更多信息，包括非國際財務報告準則與可比國際財務報告準則的調節。現在輪到賀拉斯了。

Hi, Michael. Thanks for joining our call today. We're pleased to have this opportunity to meet with you and provide an update on the second quarter 2023 results and guidance for the rest of 2023. As we mentioned last quarter, 2023 started off with a very challenging macroeconomic environment and set of economic data. While we continue to see strong overall interest in the markets that we serve, the macro environment in Taiwan remained relatively weak. We fully believe that the foundational work we are conducting will ultimately result in electric vehicle demand, but it is always difficult to accurately predict the timing and degree of EV adoption, in which we compete already have a large installed base of ICE vehicles.

你好，麥可。感謝您今天參加我們的電話會議。我們很高興有機會與您會面並提供有關 2023 年第二季度業績的最新信息以及 2023 年剩餘時間的指引。儘管我們繼續看到我們所服務的市場整體上受到強烈關注，但台灣的宏觀環境仍然相對疲軟。我們完全相信，我們正在進行的基礎工作最終將帶來電動車的需求，但要準確預測電動車的採用時間和程度始終很困難，而我們競爭的領域中已經擁有大量內燃機汽車的安裝基數。

Each market will transition to electric vehicles based on a combination of factors: government support, product availability, pricing, infrastructure readiness and customer willingness to adopt EVs. We believe that this shift in mindset will occur in conjunction with market awareness of our product and services. The long-term future remains bright in the face of some near-term challenges, and we remain excited for the future of vehicle and infrastructure electrification. We continue to see strong interest across the region and around the world for sustainable 2-wheel transportation. And when our products are reviewed and tested our battery swapping hardware, platform technology and our vehicles constantly are being chosen for both B2B and B2C deployment in a variety of countries and for a variety of business models.

每個市場都將根據多種因素轉型為電動車：政府支援、產品可用性、定價、基礎設施準備以及客戶採用電動車的意願。我們相信，這種思維轉變將隨著市場對我們的產品和服務的認識而發生。儘管面臨一些短期挑戰，但長期前景仍然光明，我們仍然對汽車和基礎設施電氣化的未來感到興奮。我們持續看到整個地區乃至全世界對永續兩輪交通工具的濃厚興趣。當我們的產品經過審查和測試時，我們的電池更換硬體、平台技術和車輛不斷被選中用於不同國家和不同商業模式的 B2B 和 B2C 部署。

While hardware is critical, it is our end-to-end software ecosystem and our network optimization, security and integrated operating tools and platform, which really sets Gogoro apart. We're on track for market availability in India and the Philippines later this year. In India, we announced a strategic agreement, the first is kind with India state of Maharashtra to manufacture our Smartscooters, Smart Batteries and Gogoro Station in the state as well as deploy Gogoro battery swapping across the state. For Gogoro's effort and investment to bring the new industry of battery swapping to the state, Gogoro has been offered unprecedented subsidies and financial support. The state of Maharashtra is leading India's transition to electrification, and we're pleased to help. As we said in our earnings release, financial results for the second quarter and for the first half of 2023 are roughly tracking to our forecasts. We've managed cost effectively and have increased gross margin and adjusted EBITDA for the first half of 2023.

雖然硬體至關重要，但真正讓 Gogoro 脫穎而出的是我們的端到端軟體生態系統以及我們的網路優化、安全性和整合操作工具和平台。我們預計將於今年稍晚在印度和菲律賓市場上推出該產品。在印度，我們宣布了一項戰略協議，第一份是與印度馬哈拉施特拉邦達成的協議，我們將在該邦生產智慧滑板車、智慧電池和 Gogoro 站，並在該邦部署 Gogoro 電池交換。為了 Gogoro 將電池更換這個新興產業引入該州的努力和投資，Gogoro 獲得了前所未有的補貼和財務支持。馬哈拉施特拉邦正在引領印度向電氣化轉型，我們很高興能夠提供協助。正如我們在收益報告中所說，第二季和 2023 年上半年的財務表現大致符合我們的預測。我們有效地管理了成本，並提高了 2023 年上半年的毛利率和調整後的 EBITDA。

We also continued our growth in battery swapping service revenue and saw a slight increase in our overall revenue on a consistent currency basis versus Q2 of last year. Despite these positive results, our Taiwan sales were slightly below the same quarter last year. And as Taiwan represents approximately 95% of our revenue, there is a direct correlation between Taiwan sales performance and our revenue. We aren't standing still. We're aggressively investing in our Taiwan marketing and retail channel expansion with the opening of 79 Gogoro Express locations in addition to our existing locations, with lots more opening later this year. And we'll continue to build out our product portfolio and have several important vehicle introductions in the coming quarters that will expand our product portfolio, increase sales and grow revenue in both Taiwan and our other markets that we're entering.

我們的電池更換服務收入也持續成長，與去年第二季相比，我們的總收入以一致貨幣計算略有成長。儘管取得了這些正面業績，但我們在台灣的銷售額仍略低於去年同期。由於台灣約占我們收入的95%，因此台灣的銷售業績與我們的收入之間存在直接的相關性。我們並沒有停滯不前。我們正在積極投資台灣行銷和零售通路擴張，除了現有的門市外，還將開設 79 家 Gogoro Express 門市，今年稍後還將開設更多門市。我們將繼續擴大我們的產品組合，並在未來幾季推出幾款重要的車型，這將擴大我們的產品組合，增加銷量，並增加台灣和我們進入的其他市場的收入。

Taiwan vehicle registration in the first half of 2023 have exceeded those of both 2022 and 2021, and it appears that total vehicle volume for 2023 could return to the pre-pandemic level of approximately 800,000 units though that much of this uptick is in lower cost, more affordable ICE vehicles as consumers continue to exercise conservative financial decisions in light of the global economic situation. This consumer conservatism is highlighted by a very low consumer confidence index in Taiwan, which was at a 10-year low in Q1 2023. Electric 2-wheel sales have not mirrored the growth in the overall market. It is not in our long-term financial interest to aggressively mark down our vehicle prices as ICE OEMs are doing today. To do so, we jeopardize our product experience and the quality of service that our customer enjoys today.

2023 年上半年台灣的汽車登記數量已超過 2022 年和 2021 年，而且看起來 2023 年的汽車總量可能會恢復到疫情前的約 80 萬輛的水平，儘管由於消費者在全球經濟形勢下繼續做出保守的財務決策，這一增長大部分是成本更低、更實惠的內燃機汽車。台灣消費者信心指數非常低，凸顯了消費者的保守主義，2023 年第一季該指數跌至 10 年來的最低水準。像內燃機汽車原始設備製造商如今所做的那樣，大幅降低汽車價格並不符合我們的長期經濟利益。為了做到這一點，我們將危及客戶目前享受的產品體驗和服務品質。

We're focused on maintaining our financial performance on important metrics despite the strong short-term competition and continue to believe that we are well positioned for the inevitable shift from ICE vehicle to now electric vehicles. Sadly, every ICE vehicle purchased now is likely to be in use and contributing to the substantial carbon emissions for the next 10 years or so. But given that Taiwan is effectively a replacement market with approximately 700,000 to 800,000 vehicles replaced every year. We are still optimistic about our opportunity to convert ICE owners to electric vehicle owners as we build more products to address even broader market segments.

儘管短期競爭激烈，我們仍專注於維持重要指標的財務業績，並繼續相信，我們已做好準備，迎接從內燃機汽車到電動車的必然轉變。可悲的是，現在購買的每輛 ICE 汽車都可能在未來 10 年左右投入使用並產生大量碳排放。但考慮到台灣實際上是一個替換市場，每年大約有70萬至80萬輛汽車被替換。隨著我們推出更多產品來滿足更廣泛的細分市場需求，我們對於將內燃機車主轉變為電動車主的機會仍然充滿信心。

Getting consumers to feel they can personally and directly play a role in a cleaner environment is important. While purchasing an electric vehicle may be perceived as carrying a higher upfront cost, the total cost of ownership over time continues to favor electric vehicles and the other long-term benefits to health as well as to the environment significantly outweigh any concern consumer, delivery riders, fleet operators or government may have about electrification. All of these factors combined mean that despite achieving solid financial results so far in 2023, uncertainty in the market leads us to a conservative second half outlook, and we are predicting a seasonality-driven second half. Given the potential for an ongoing softness in the Taiwan market, we're updating our full year guidance to a revenue forecast of $340 million to $370 million.

讓消費者感受到他們可以親自、直接地為創造更清潔的環境做出貢獻是很重要的。雖然購買電動車可能被認為具有更高的前期成本，但從長遠來看，總擁有成本仍然有利於電動車，並且對健康和環境的其他長期益處遠遠超過消費者、送貨司機、車隊營運商或政府對電氣化的擔憂。所有這些因素結合在一起意味著，儘管 2023 年迄今為止取得了穩健的財務業績，但市場的不確定性導致我們對下半年的前景持保守態度，並且我們預測下半年將受到季節性因素的驅動。鑑於台灣市場可能持續疲軟，我們將全年營收預期上調至 3.4 億美元至 3.7 億美元。

Our India plans while progressing are not likely to result in substantial revenue in 2023. To address this reality, we've been actively developing multiple new vehicles that will be launched in the next several quarters, both at the high performance and at the affordable end of our product and price spectrum. We're developing for product market fit, not just in Taiwan, but in other countries as well. We continue to learn valuable data and insights through our ongoing pilots. All of this information informs our upcoming vehicle designs and launches. While I can't say much more about these vehicles, they will appeal to a variety of riders continue to demonstrate and extend our technology leadership and offer increased versatility to riders. Additionally, we are testing ways to improve our battery packs, our battery swapping station and our software capabilities and reduce costs for hardware and operations.

我們的印度計畫雖然正在進展中，但不太可能在 2023 年帶來可觀的收入。我們開發的產品不僅適合台灣市場，也適合其他國家市場。我們透過正在進行的試點繼續學習寶貴的數據和見解。所有這些資訊都為我們即將推出的車輛設計和發布提供了資訊。雖然我不能透露更多關於這些車輛的信息，但它們將吸引各種各樣的騎手，繼續展示和擴展我們的技術領先地位，並為騎手提供更多的多功能性。此外，我們正在測試改進電池組、電池更換站和軟體功能的方法，並降低硬體和營運成本。

International expansion is important as we seek to diversify our revenue base. We've been quietly making great progress behind the scene on our expansion into India and other countries. We're localizing supply chains and manufacturing capabilities, increasing our team size and continue to operate pilots, which are receiving great feedback and inform our market launches direction and plans. And perhaps most importantly, we have formalized our investment agreement with the government of the state of Maharashtra, a $1.5 billion investment by Gogoro and our partners, which will enable the electrification of India's largest state by GDP contribution and the second largest state by population with over 110 million people.

當我們尋求實現收入來源多元化時，國際擴張非常重要。我們在向印度和其他國家的擴張方面一直在幕後默默地取得巨大進展。我們正在本地化供應鏈和製造能力，擴大我們的團隊規模並繼續進行試點，這些試點得到了很好的反饋，並為我們的市場發佈方向和計劃提供了資訊。或許最重要的是，我們已與馬哈拉施特拉邦政府正式達成投資協議，Gogoro 及其合作夥伴將投資 15 億美元，使這個印度 GDP 貢獻率最高的邦、人口超過 1.1 億、印度第二大邦實現電氣化。

In June, we announced Gogoro would be entering into an ultra mega project agreement to manufacture vehicles, smart battery packs and battery swapping stations and deploy an open and accessible battery swapping infrastructure in the state of Maharashtra. This follows the MOU that was signed back in January 2023. This project is one of the largest EV investments in India's history with a $1.5 billion investment plan to bring Gogoro's ecosystem into India. Ultra mega projects are strategic investment for over $500 million supported by financial incentives from the Maharashtra government. We are focused on creating a domestic supplier ecosystem that allows for domestic growth and foreign market expansion.

今年 6 月，我們宣布 Gogoro 將簽署一項超級專案協議，以製造車輛、智慧電池組和電池更換站，並在馬哈拉施特拉邦部署開放且可訪問的電池更換基礎設施。這是繼 2023 年 1 月簽署的諒解備忘錄之後的另一個項目。超大型項目是馬哈拉施特拉邦政府財政激勵措施支持的超過 5 億美元的戰略投資。我們專注於創建一個能夠實現國內成長和國外市場擴張的國內供應商生態系統。

Our Swap & Go pilot has been live in India for an exciting three months. We've tallied some impressive numbers so far. The total distance travel has accumulated over 430,000 kilometer, which is equivalent to over 10 trips around the earth. Over 8,500 battery swaps, over 33,000 kilograms of CO2 saved. We are also happy to see that our swapping solution has helped delivery riders in India to increase delivery efficiency and in some cases, as much as doubling their monthly earnings. Perhaps the most compelling data collected during the pilot is that our battery packs and go stations are performing very well under high use, high temperature and unpredictable road condition.

我們的 Swap & Go 試點已在印度進行了令人興奮的三個月。到目前為止，我們已經統計出一些令人印象深刻的數字。總行程累計超過43萬公里，相當於繞地球10多圈。更換電池超過 8,500 次，減少二氧化碳排放超過 33,000 公斤。我們也很高興地看到，我們的交換解決方案幫助印度的送貨騎士提高了送貨效率，在某些情況下，甚至使他們的月收入翻了一番。也許試點期間收集到的最引人注目的數據是，我們的電池組和充電站在高使用率、高溫和不可預測的道路條件下表現非常良好。

In addition, we are also proving that there is additional energy capacity available if the battery chemistry is consumed more quickly via high utilization. We can make that extra energy available to consumers at reduced cost or we can use the extra energy for second life use cases, and we believe we can extract additional value from packs by recycling them at the end of life. We will have an Indian locally manufactured assembled a new vehicle ready for launch in the coming months and will begin deliveries to key customers soon. Locally manufactured battery packs will also begin production in late Q4 2023 or early 2024.

此外，我們還證明，如果電池化學物質透過高利用率更快地消耗，則可以提供額外的能量容量。我們可以以較低的成本向消費者提供多餘的能源，或將多餘的能源用於二次利用，而且我們相信，透過在使用壽命結束後對電池組進行回收，我們可以從中提取額外的價值。我們將在未來幾個月內在印度本地生產並組裝一款新車，準備上市，並將很快開始向主要客戶交付。本地生產的電池組也將於 2023 年第四季末或 2024 年初開始生產。

To support these local operations, we have substantially increased our employee presence in India as well. We're fully committed to the Indian market. Success in India depends on having vehicles, battery packs and go stations that meet aggressive cost target. Depending on factors like vehicle performance and range, our target pricing ranges will be very competitive to the local market. We're aiming to introduce vehicles that meet these pricing thresholds and rival others ICE and electric products already available in the market by Q4 2023 or Q1 2024.

為了支持這些本地業務，我們也大幅增加了在印度的員工數量。我們全力致力於印度市場。在印度的成功取決於擁有符合激進成本目標的車輛、電池組和加油站。根據車輛性能和行駛里程等因素，我們的目標定價範圍將對當地市場來說非常有競爭力。我們的目標是在 2023 年第四季或 2024 年第一季推出滿足這些定價門檻並與市場上已有的其他 ICE 和電動產品相媲美的汽車。

Additionally, developing local supply chain for our battery packs and our go station means that we can reduce costs substantially on the order of 20% to 30%. This will also help us reduce operating costs overall. The issue of climate change has become even more urgent, pushing governments, businesses and individuals to prioritize sustainability and environmental responsibility. Sustainability and green mobility are Gogoro's core value. And in Q2, we continue to make progress towards our objectives of making smart swappable energy available to urban consumers everywhere. Gogoro users have collectively reduced carbon emissions by over 680 million kilograms. We achieved sustainability by utilizing 100% recyclable polypropylene as the shell material for most of our Smart Scooters, promoting resource regeneration and eco-friendly recycling.

此外，為我們的電池組和 Go 站開發本地供應鏈意味著我們可以大幅降低 20% 到 30% 的成本。這也將幫助我們降低整體營運成本。氣候變遷議題變得更加緊迫，迫使政府、企業和個人優先考慮永續性和環境責任。永續性和綠色出行是 Gogoro 的核心價值。在第二季度，我們繼續朝著讓世界各地的城市消費者都能使用智慧可交換能源的目標邁進。 Gogoro 用戶共減少碳排放量超過 6.8 億公斤。我們利用 100% 可回收聚丙烯作為大多數智慧滑板車的外殼材料，實現了永續發展，促進了資源再生和環保回收。

Furthermore, since 2022, we incorporated 40% renewable energy in our factories and certain designated Gogoro stores now operate on 100% green electricity. These efforts marked a significant stride towards the ultimate goal of transitioning to 100% renewal energy usage by 2050. We're the first among our peers to make such a commitment. We recently collaborated with Japanese designer Naoto Fukasawa and MUJI, the Tokyo-based consumer goods and lifestyle company on newly designed Gogoro Smart Scooters along with a range of merchandise and accessories.

此外，自 2022 年起，我們在工廠中採用了 40% 的可再生能源，某些指定的 Gogoro 商店現在使用 100% 綠色電力運作。這些努力標誌著我們朝著2050年實現100％可再生能源使用的最終目標邁出了重要一步。我們最近與日本設計師深澤直人 (Naoto Fukasawa) 和總部位於東京的消費品和生活方式公司 MUJI 合作，設計了新 Gogoro 智慧滑板車以及一系列商品和配件。

Using iconic MUJI design elements and recycled polypropylene plastic, the new Gogoro VIVA and VIVA MIX ME promotes simplicity and sustainability and is part of the joint recycle for -- Good Sustainability Initiative. The Smart Scooter, under the personal curation of Fukasawa, presents minimalist design incorporating recycled polypropylene body components. This initiative aims to inspire consumers in Taiwan to engage in recycling polypropylene plastic waste at Gogoro and MUJI stores and empowers them to contribute small, but meaningful steps towards creating a more sustainable future.

新款 Gogoro VIVA 和 VIVA MIX ME 採用標誌性的 MUJI 設計元素和再生聚丙烯塑料，提倡簡約和可持續，是聯合回收「良好永續發展倡議」的一部分。這款智慧滑板車由深澤直人親自設計，採用了回收的聚丙烯車身部件，呈現出簡約的設計。該計劃旨在鼓勵台灣消費者參與 Gogoro 和 MUJI 商店的聚丙烯塑膠廢棄物回收活動，並鼓勵他們為創造更永續的未來做出小而有意義的貢獻。

While we promote sustainability on the consumer side, the government was also taking actions. In Taiwan, government bureaus and agencies are taking an initiative to commit to sustainable energy and transportation, while implementing corresponding strategies to control pollution by replacing aged government-owned scooters with Gogoro Smart Scooters, which has accumulated over 8,000 vehicles since the program began. We thank various branches of the Taiwan government for their partnership and look forward to extending that partnership both in Taiwan and in other countries as well.

當我們在消費者方面推動永續發展時，政府也在採取行動。在台灣，政府部門正積極致力於永續能源和交通，同時實施相應的污染控制策略，用 Gogoro 智慧踏板車取代老舊的政府踏板車。我們感謝台灣政府各部門的合作，並期待在台灣和其他國家拓展這種夥伴關係。

Recently, a variety of state governments in India, including the government of Goa, Maharashtra, Delhi, Haryana, and Andhra Pradesh have made commitments to transition last-mile delivery fleets, last-mile connectivity fleets, and tourism fleets to electric vehicles.

最近，印度多個邦政府，包括果阿邦、馬哈拉施特拉邦、德里邦、哈里亞納邦和安得拉邦政府都承諾將最後一英里配送車隊、最後一英里連接車隊和旅遊車隊轉變為電動車。

I'd like to invite Bruce to provide more detail on Taiwan and a few of our other international markets and financial update.

我想邀請布魯斯提供有關台灣和我們其他一些國際市場和財務更新的更多詳細資訊。

Thanks Horace. As Horace indicated, the Taiwan two-wheeler market has grown in the first half of 2023, but EV volume is slightly down. In Q2, the total number of registered scooters in Taiwan was 186,549, up 13.4% from Q2 of 2022.

謝謝賀拉斯。 Horace 指出，2023 年上半年台灣兩輪車市場有所成長，但電動車的銷量略有下降。第二季度，台灣註冊踏板車總數為186,549輛，較2022年第二季增加13.4％。

In the first half of 2023, the total number of registered scooters was 363,747, up 11.6% compared with the first half of 2022. The total number of registered electric scooters in Q2 in Taiwan was 20,118 units, down slightly from 21,195 in Q2 of last year. Of these electric scooters, approximately 16,400 were Gogoro and partner-branded vehicles and 14,118 were Gogoro branded. Despite the overall scooter market in Taiwan witnessing a slight uptrend, the pace of electrification has not mirrored the growth in ICE vehicle sales. This situation is largely driven by ICE competitors aggressively reducing prices to spur growth.

2023年上半年，台灣註冊滑板車總數為363,747輛，較2022年上半年增加11.6%。在這些電動滑板車中，約有 16,400 輛是 Gogoro 和合作品牌的車輛，而 14,118 輛是 Gogoro 品牌的。儘管台灣整體踏板車市場呈現小幅上升趨勢，但電動化的步伐並未跟上內燃機車銷售的成長。這種情況很大程度上是由於 ICE 競爭對手大幅降價以刺激成長所致。

Our retail sales strategies are unchanged. We continue to increase our presence via growing our store count from the current 91 to a planned 100 stores by the end of the year, and we believe that the products we have planned for the incoming quarters will improve our competitiveness versus ICE vehicles in the future. In addition, we're targeting 150 Gogoro Quick service community stores by the end of the year, up from approximately 79 such stores that are already operating with clearly many more to follow. We continue to make good progress in other international markets. In the Philippines, together with our partners, the Ayala Group, Globe Telecom and 917 Ventures, we expect to open a Gogoro Experience Center in the coming months, and our pilot is already up and running.

我們的零售銷售策略並沒有改變。我們將繼續擴大我們的影響力，將門市數量從目前的 91 家增加到今年年底計劃的 100 家，我們相信，我們在未來幾季計劃推出的產品將提高我們相對於 ICE 汽車的競爭力。此外，我們的目標是在今年年底前開設 150 家 Gogoro 快餐社區商店，而目前已經運營的商店數量約為 79 家，並且顯然還會開設更多商店。我們在其他國際市場持續取得良好進展。在菲律賓，我們預計將與合作夥伴阿亞拉集團、Globe Telecom 和 917 Ventures 在未來幾個月內開設一個 Gogoro 體驗中心，目前我們的試點計畫已經開始運作。

In Korea, to support growth, our partner Bikebank has expanded the battery swapping network to seven additional cities beyond Seoul and currently have over 84 GoStations operational across Korea. Our Smartscooters and battery swapping solutions have been used for food deliveries in Seoul since 2019 and has received widespread attention and acceptance. We'll continue to work closely with Bikebank to accelerate the transformation of urban mobility and promote sustainable transportation in Korea.

在韓國，為了支持成長，我們的合作夥伴 Bikebank 將電池交換網路擴展到首爾以外的另外 7 個城市，目前在韓國各地擁有 84 多個 GoStations 營運。我們的智慧滑板車和電池更換解決方案自 2019 年起已用於首爾的食品配送，並得到了廣泛的關注和認可。我們將繼續與 Bikebank 密切合作，加速城市交通的轉型並促進韓國的永續交通。

Over the past four months, our pilot program in Singapore has achieved remarkable success, thanks to the support from our partners, Jardine Cycle & Carriage Singapore as well as Foodpanda Singapore. With over 10,000 kilograms of CO2 saved total distances of over 110,000 kilometers driven and over 2,700 battery swaps, we're gathering lots of data from our pilot in Singapore. Extending the use of batteries through second life is important. We've deployed smart traffic lights at a number of major intersections in Taipei Q2 in partnership with Far EasTone Telecommunications, one of Taiwan's leading mobile operators. We're excited to work with Far EasTone on this project to address the risk of traffic signal failure due to sudden power outages in the city.

在過去的四個月裡，我們在新加坡的試點計畫取得了顯著的成功，這要感謝我們的合作夥伴怡和合發新加坡公司以及 Foodpanda 新加坡公司的支持。我們在新加坡的試點計畫中共行駛了 11 萬多公里，減少了超過 10,000 公斤的二氧化碳，並且進行了 2,700 多次電池更換。透過二次生命延長電池的使用壽命非常重要。我們與台灣領先的行動營運商之一遠傳電信合作，在台北市第二季的多個主要路口部署了智慧交通燈。我們很高興與遠傳電信合作進行這個項目，以解決因城市突然停電而導致交通號誌故障的風險。

Gogoro took the lead in partnering with Far EasTone to develop the smart traffic signal uninterruptible power system at the end of 2021. This system utilizes smart batteries to provide real-time power backup ensuring smooth traffic operations. After successfully testing for over a year in Taipei, Gogoro and Far East one have expanded the application and with plans to expand to nearly 200 critical intersections in Taipei by the end of the year, we've created an innovative model for sustainable smart city solutions. And more importantly, we've proven the thesis that there are a great number of second-life opportunities for our batteries.

Gogoro於2021年底率先與遠傳電信合作開發智慧交通號誌不間斷電源系統，利用智慧電池提供即時電源備份，確保交通順暢運作。在台北成功測試一年多後，Gogoro 與遠東一號擴大了應用範圍，並計劃在今年年底前擴展到台北近 200 個關鍵路口，我們創建了一個可持續智慧城市解決方案的創新模式。更重要的是，我們已經證明了我們的電池擁有大量的二次生命機會。

In April, we announced the commercial deployment of Gogoro battery-enabled virtual power plants with Enel X. We have currently deployed a total of 967 locations with plans to increase the total to 2,500 swap station cabinets across 1,000 locations by the end of 2023 to serve both demand and frequency response. We've always believed that mobile energy plays a crucial role in facilitating sustainable transformation, not only in transportation, but also across diverse industries seeking to transition from fossil fuels to electric power or those requiring solutions beyond the limitations of fossil fuels. Leveraging the second life of our batteries, we are effectively addressing a wide range of smart city energy demands, generating new revenue streams and contributing to the advancement of sustainable urban development.

今年 4 月，我們宣布與 Enel X 合作商業部署 Gogoro 電池虛擬發電廠。我們始終堅信，行動能源在促進永續轉型方面發揮著至關重要的作用，不僅在交通運輸領域，而且在尋求從化石燃料向電力轉型或需要超越化石燃料限制的解決方案的各個行業中都發揮著重要作用。利用電池的二次生命，我們有效地滿足了廣泛的智慧城市能源需求，創造了新的收入來源並為推動城市永續發展做出了貢獻。

In summary, despite some near-term market-driven volume shortfalls in Taiwan, we believe we're on track to deliver real value to customers whether through our Smartscooters our Smart Batteries our second life and ancillary service capabilities. We're working hard to deploy Gogoro battery swapping capability in international markets, to broaden our retail footprint and service level in Taiwan, and to continue innovating across our entire product portfolio, both in new products and in Second Life opportunities for fully depreciated batteries.

總而言之，儘管台灣近期因市場原因出現銷售不足的情況，但我們相信，無論是透過智慧滑板車、智慧電池、二次生命或輔助服務能力，我們都能夠為客戶提供真正的價值。我們正努力在國際市場部署 Gogoro 電池更換功能，擴大我們在台灣的零售足跡和服務水平，並繼續在我們的整個產品組合中進行創新，包括新產品和完全折舊電池的 Second Life 機會。

To focus specifically on financial highlights for Q2 of 2023, we continue to see healthy increases in our Gogoro battery swapping revenue, and our performance against our key financial metrics for the first half of 2023 was solid. We saw a drop in our Taiwan-generated vehicle revenue this quarter, but our international expansion continues to demonstrate solid progress that we anticipate will turn into revenue by the end of 2023 and into the future. We expect to continue our investment in research and development, network infrastructure, and international production capacity into 2024 to lay the foundation for our international expansion.

具體關注 2023 年第二季的財務亮點，我們繼續看到 Gogoro 電池更換收入的健康成長，並且我們在 2023 年上半年的關鍵財務指標方面的表現穩健。本季度，我們在台灣的汽車收入有所下降，但我們的國際擴張繼續取得穩步進展，我們預計到 2023 年底及未來將轉化為收入。我們預計在 2024 年繼續對研發、網路基礎設施和國際生產能力進行投資，為我們的國際擴張奠定基礎。

For the second quarter of 2023 operating revenue was $87.2 million down 3.8% year-over-year and up 0.2% year-over-year on a constant currency basis. Had foreign exchange rates remained constant with the average rate of the same quarter last year, revenue would have been up by an additional $3.7 million. Sales of hardware and other revenue for the quarter were $53.9 million, down 10.6% year over year, and down 6.8% year-over-year on a constant currency basis. For the entire powered two-wheeler market, sales in Taiwan in the second quarter were up 13.4% year-over-year, returning to roughly pre-pandemic levels, likely due to deferred purchasing.

2023 年第二季的營業收入為 8,720 萬美元，年減 3.8%，以固定匯率計算年增 0.2%。如果外匯匯率與去年同期的平均匯率維持不變，營收將增加 370 萬美元。本季硬體銷售額及其他收入為 5,390 萬美元，年減 10.6%，以固定匯率計算年減 6.8%。就整個動力兩輪車市場而言，台灣第二季度的銷量同比增長了 13.4%，大致恢復到了疫情前的水平，這可能是由於推遲購買所致。

Sales of electric power two-wheel vehicles have not mirrored this growth. Sales were down 5.1% compared to the same quarter last year. Much of the growth in the power two-wheel market was driven by a very few specific internal combustion engine models that continue to appeal to price sensitive consumers at the expense of competing ICE and electric vehicles.

電動兩輪車的銷量並未反映出這種成長。與去年同期相比，銷售額下降了 5.1%。動力兩輪車市場的成長很大程度上是由極少數特定的內燃機車型推動的，這些車型繼續吸引對價格敏感的消費者，而犧牲了競爭對手內燃機車和電動車的吸引力。

Gogoro vehicle sales volume decreased by 8.1% compared to the same quarter last year, largely driven by Taiwan's consumer confidence index being at a 10-year low at the beginning of 2023, and that typically translates into conservative purchase decisions when customers are refreshing their vehicles. This makes our second-half financial outlook difficult to predict. We view the second half conservatively, and we are expecting our performance in the second half of 2023 to track historical seasonality.

Gogoro 汽車銷售量與去年同期相比下降了 8.1%，這主要是由於 2023 年初台灣消費者信心指數處於 10 年來的最低水平，而這通常意味著客戶在更新汽車時會做出保守的購買決定。這使得我們下半年的財務前景難以預測。我們對下半年持保守態度，預計 2023 年下半年的表現將追蹤歷史季節性。

Battery swapping service revenue for the second quarter was $33.3 million, up 9.6% year-over-year and up 14.2% year-over-year on a constant currency basis. Total subscribers at the end of the second quarter exceeded 552,000, up 14% from 484,000 subscribers at the end of the same quarter last year. This year-over-year increase in battery swapping service revenue was primarily due to our larger subscriber base compared to the same quarter last year, and also attributable to the high retention rate of our subscribers. We continue to see the strength of our subscription-based business model to accrue more customers to maximize our battery swapping network efficiency.

第二季電池更換服務收入為 3,330 萬美元，年增 9.6%，以固定匯率計算年增 14.2%。第二季末總訂閱用戶數超過55.2萬，較去年同期的48.4萬成長14%。電池更換服務收入年增主要歸因於我們的用戶群較去年同期擴大，同時也歸因於我們用戶的高留存率。我們繼續看到基於訂閱的商業模式的優勢，可以吸引更多的客戶，從而最大限度地提高我們的電池交換網路效率。

For the second quarter, gross margin was 15.2%, up from 14% in the same quarter last year, and non-IFRS gross margin was 16%, up from 15.5% in the same quarter last year. The gross margin and non-IFRS gross margin increases were driven by the improved cost efficiencies of Gogoro's battery swapping service operations and an increase in the average revenue per energy subscriber due to a combination of new subscription programs and longer riding distances post-pandemic. These increases were partially offset by the higher production cost per vehicle as a result of lower volumes and promotion expenditures on scooter sales this year, while some of the adverse impacts were mitigated by our favorable product portfolios.

第二季毛利率為15.2%，高於去年同期的14%，非國際財務報告準則下的毛利率為16%，高於去年同期的15.5%。毛利率和非國際財務報告準則下的毛利率成長主要得益於 Gogoro 電池更換服務業務成本效率的提高，以及新訂閱計畫和疫情後更長的騎乘距離帶來的每位能源用戶平均收入的增加。由於今年踏板車銷量下降和促銷費用增加導致每輛車的生產成本上升，部分抵消了這些增長，而我們有利的產品組合減輕了部分不利影響。

For the second quarter, net loss was $5.6 million, down (corrected by company after the call) $115.5 million from $121.1 million in the same quarter last year. This decrease in net loss was primarily due to $178.8 million decrease in listing expenses and a $24.4 million decrease in operating expenses, primarily consisting of an $18.5 million decrease in acquisition-related expense, a $3.2 million decrease in share-based compensation and our tight control on expenses, savings of $2.3 million in expenses for sales and marketing programs and $1.5 million in general and administrative expenses. These decreases were partially offset by an unfavorable change in the fair market value of financial liabilities of $88.5 million.

第二季淨虧損為 560 萬美元，較去年同期的 1.211 億美元下降 1.155 億美元（電話會議後公司進行了更正）。淨虧損減少主要由於上市費用減少 1.788 億美元以及營運費用減少 2,440 萬美元，主要包括收購相關費用減少 1,850 萬美元、股權激勵費用減少 320 萬美元以及我們對費用的嚴格控制，節省了 230 萬美元的銷售和營銷項目費用以及 150 萬美元的一般及行政費用。這些減少被 8,850 萬美元的金融負債公允價值的不利變動部分抵銷。

For the second quarter, adjusted EBITDA was $12.9 million, up from $9.3 million in the same quarter last year. The increase was primarily due to a $2.3 million decrease in expenses for sales and marketing programs, as we implemented more efficient marketing campaigns and a $1.5 million decrease in general and administrative expenses, mainly as a result of cost savings initiatives. The increase was partially offset by a $1.1 million increase in research and development expenses for the development of new products and our international expansion.

第二季度，調整後的 EBITDA 為 1,290 萬美元，高於去年同期的 930 萬美元。成長的主要原因是銷售和行銷項目費用減少了 230 萬美元，因為我們實施了更有效的行銷活動，並且一般和行政費用減少了 150 萬美元，這主要是由於成本節約舉措。但這一增幅被用於開發新產品和國際擴張的 110 萬美元研發費用的增加部分抵消。

We reduced operating cash flow by $41 million compared to the same quarter last year, through tightening our business operations and reduced working capital. We borrowed $22.7 million and paid back $14.3 million in bank loans in the second quarter to finance our investing activities. With a $144 million cash balance at the end of the second quarter and additional credit facilities, we believe we have sufficient sources of funding to meet our near-term business growth objectives.

透過加強業務營運和減少營運資本，我們的營運現金流與去年同期相比減少了 4,100 萬美元。我們在第二季借入了 2,270 萬美元的銀行貸款，並償還了 1,430 萬美元，以資助我們的投資活動。憑藉第二季末 1.44 億美元的現金餘額和額外的信貸額度，我們相信我們有足夠的資金來源來滿足我們近期的業務成長目標。

Due to the soft demand in the Taiwan market and to reflect our current market outlook and the timing of the realization of our international projects, we are updating our 2023 revenue guidance to revenue of $340 million to $370 million. We estimate that we will generate approximately 95% of our 2023 full year revenue from the Taiwan market. With that financial update, I will hand things back over to Michael for Q&A. Michael?

由於台灣市場需求疲軟，為了反映我們當前的市場前景和國際項目實現的時機，我們將 2023 年收入預期更新為 3.4 億美元至 3.7 億美元。我們預計，2023 年全年約 95% 的收入將來自台灣市場。有了該財務更新資訊後，我將把事情交還給邁克爾進行問答。麥可？

Thanks, Horace and Bruce for the business update, details on financial results and forward guidance. As attendees are formulating your questions, I will ask three questions, which I think are likely on everyone's minds, given what you've just shared. With that said, question number one. You've updated your guidance for the full year. Can you shed a bit more light on why and what leads you to have confidence that you will meet your revised guidance for 2023? And what are your preliminary thoughts for 2024?

感謝 Horace 和 Bruce 提供的業務更新、財務績效詳情和前瞻性指引。當與會者正在準備問題時，我會問三個問題，根據您剛才分享的內容，我認為這些問題很可能是每個人都會想到的。話雖如此，這是第一個問題。您已經更新了全年指導。您能否進一步解釋一下原因以及是什麼讓您有信心實現 2023 年修訂後的指導目標？您對 2024 年的初步想法是什麼？

Thanks, Michael. Well, to be clear, we're really bullish on the global transition from EV from traditional ICE vehicles. Individual markets, we transition at various time and speed based on a number of different factors: government policy, consumer awareness of environmental issues, cost of vehicle and energy, et cetera.

謝謝，麥可。嗯，明確地說，我們非常看好全球範圍內從傳統內燃機汽車轉向電動車的轉變。在個別市場，我們根據不同的因素以不同的時間和速度進行轉型：政府政策、消費者對環境議題的認知、車輛和能源成本等等。

We believe that in that transition, battery swapping will emerge as the best technology in terms of speed and convenience of swapping as well as the standpoint of helping power grids, which are increasingly pressure to manage and support the transition. We have clearly seen this in Taiwan and also through our pilots overseas. In any given quarter of the year, there will be external factors, which will impact that transition.

我們相信，在這一轉變過程中，電池更換將在更換速度和便利性方面以及在幫助電網方面面臨越來越大的管理和支援轉變的壓力方面成為最佳的技術。我們在台灣以及海外的試點中清楚地看到了這一點。在一年中的任何一個季度，都會有一些外部因素影響這種轉變。

In Taiwan at the moment, a mix of macroeconomic factors and aggressive pricing by ICE vehicle makers is creating some short-term headwinds for Gogoro. We don't believe we've maxed up on Taiwan's vehicle sales, but we did experience a slight drop in the unit sales in the first half. We have a lineup of vehicle we expect to launch this year and early next year that we believe will really help.

目前在台灣，宏觀經濟因素和內燃機汽車製造商的激進定價給 Gogoro 帶來了一些短期阻力。我們不認為我們已經達到了台灣汽車銷售的頂峰，但上半年我們的銷售確實略有下降。我們預計將於今年和明年初推出一系列車輛，我們相信這些車輛將真正有所幫助。

As far as meeting our updated guidance, we're working hard to grow our retail footprint and our customer touch points. We're expecting normal seasonal uptick in sales in the second half, and we have vehicle launches planned. These factors combined make us confident we will hit these new targets. 95% of revenue is expected to be from Taiwan, but we should also start seeing more revenue from international markets in the second half as compared to last year.

為了滿足我們最新​​的指導方針，我們正在努力擴大我們的零售足跡和客戶接觸點。我們預計下半年銷售會出現正常的季節性成長，我們已經計劃推出新車。這些因素結合起來使我們有信心實現這些新目標。預計 95% 的收入來自台灣，但與去年相比，下半年我們也應該會看到更多來自國際市場的收入。

Okay. Thank you. We'll move on to question number two. So, you talked about new vehicle launches in the second half and about ongoing improvements in your batteries and stations. Can you share a bit more detail, will these vehicles and improve battery swapping technology to be deployed in India and other places in addition to Taiwan? Thanks.

好的。謝謝。我們繼續討論第二個問題。所以，您談到了下半年新車的推出以及電池和充電站的持續改進。您能否分享更多細節，這些車輛和改進的電池更換技術除了台灣之外，是否會在印度和其他地方部署？謝謝。

Sure. India is a critical market for us and getting products, partners and pricing right for India is really, really important. We're fully committed to India. We're localizing our supply chain and preparing for local manufacturing, both of which will create substantial cost reduction opportunities and qualifies for Indian subsidies. We're always working to improve our battery and station technology. Safety and quality are always first on our mind. The cost, capacity, and other factor matters a lot also as well. We have a number of product improvements we'll be introducing over the coming months.

當然。印度對我們來說是一個重要的市場，找到適合印度的產品、合作夥伴和定價真的非常重要。我們全心全意致力於印度。我們正在本地化我們的供應鏈並為本地製造做準備，這兩項工作都將創造大幅降低成本的機會，並且符合印度補貼的條件。我們一直致力於改進我們的電池和充電站技術。我們始終把安全和品質放在第一位。成本、容量和其他因素也很重要。我們將在未來幾個月推出多項產品改進。

When we develop vehicles, we design for global markets. But at times, we need to localize for local market to meet pricing expectation, logo regulation, or other factors. The vehicles that we have slated for launch cater to the needs of a broad range of customers. We have vehicles, which will satisfy customer concern about affordability, we have vehicles which will appeal to an early adopter of technology, and also we have vehicles who had -- to B2B and B2C customers as well.

當我們開發車輛時，我們是面向全球市場進行設計的。但有時，我們需要針對當地市場進行在地化以滿足定價預期、標誌規定或其他因素。我們計劃推出的車輛可以滿足廣泛客戶的需求。我們的車輛可以滿足客戶對經濟實惠的顧慮，我們的車輛可以吸引技術早期採用者，我們也有針對 B2B 和 B2C 客戶的車輛。

Okay. Thank you. Next question is despite a drop in hardware revenue, you mentioned as you've met a number of other financial metrics. What metrics are you tracking? And what are your expectations for the second half for margin, EBITDA and other metrics that you can share?

好的。謝謝。下一個問題是，儘管硬體收入下降，但您提到已經滿足了許多其他財務指標。您正在追蹤哪些指標？您對下半年的利潤率、EBITDA 和其他指標有何預期？

Thanks Michael. There are always external factors that are difficult for us to control. But what we're trying to focus on is the internal cost structure, which we have control over.

謝謝邁克爾。總是有一些我們難以控制的外在因素。但我們重點關注的是我們可以控制的內部成本結構。

So, we're continuing to invest for international expansion. But despite doing that, we're really focused on cost savings opportunities. We're keeping marketing cost per vehicle flat. We're tightly controlling OpEx, we're generating healthy EBITDA, and we're tracking the healthy growth in battery swapping service revenue. We haven't provided specific EBITDA or margin targets for the second half. We're really focused on establishing solid financial discipline and a solid foundation such that both in Taiwan and as we begin our international expansion, we can continue on that solid financial grounding.

因此，我們將繼續投資以實現國際擴張。但儘管如此，我們真正關注的是節省成本的機會。我們保持每輛車的行銷成本不變。我們嚴格控制營運支出，創造健康的 EBITDA，並追蹤電池更換服務收入的健康成長。我們尚未提供下半年的具體 EBITDA 或利潤率目標。我們真正注重的是建立堅實的財務紀律和堅實的基礎，以便我們無論是在台灣還是在我們開始國際擴張時，都能繼續保持堅實的財務基礎。

All right. Thank you, Bruce. Operator, at this point, let's go ahead and open up the line for the Q&A session. Thank you.

好的。謝謝你，布魯斯。接線員，現在讓我們繼續開啟問答環節。謝謝。

Thank you. (Operator Instructions) Our first question comes from the line of Angelina Chen with JPMorgan. Your line is now open.

謝謝。 （操作員指示）我們的第一個問題來自摩根大通的 Angelina Chen。您的線路現已開通。

Hello. Thank you, Horace and Bruce. I'm Angelina from JPMorgan, and I'm filling in for Bill. Can you hear me?

你好。謝謝你，賀拉斯和布魯斯。我是摩根大通的安潔莉娜，我正在取代比爾。你聽得到我嗎？

Yes, we can hear you, Angelina.

是的，我們能聽到你的聲音，安潔莉娜。

Great. So just two questions from us. First of all, when does the company expect to turn operating profits profitable? And the second one is regarding international revenue exposure. What percentage of the revenue do you expect from overseas business in 2024 and beyond? Thank you.

偉大的。我們只想問兩個問題。首先，公司預計何時實現營業利潤扭虧為盈？第二個是關於國際收入風險。您預計2024年及以後海外業務的營收佔比為何？謝謝。

I'll take the second part first, Angelina. As you know, we're saying that, this year we're 95% of our revenue will be Taiwan-based. That leaves the small balance to come from international markets. We will be launching vehicles. We will be launching service in multiple markets in the second half of this year. So we do expect the 2024 percentage to increase pretty substantially. We're not giving out targets on that quite yet. I guess, I can say stay tuned for the November call where we'll try to provide some guidance on 2024. But we do expect substantial growth, specifically from India, but potentially from other markets as well.

我先看第二部分，安潔莉娜。如你所知，我們今年 95% 的收入將來自台灣。剩下的小部分餘額則來自國際市場。我們將發射車輛。我們將於今年下半年在多個市場推出服務。因此，我們確實預期 2024 年的比例將大幅增加。我們尚未公佈這方面的目標。我想，我可以說，請繼續關注 11 月的電話會議，我們將嘗試提供一些有關 2024 年的指導。

In terms of operating profit, again, as mentioned to Michael's question just a minute ago, our goal is really to set ourselves up for a tight financial structure in Taiwan as we think about the future. All of our R&D costs are born in Taiwan. All of our corporate overhead is born in Taiwan. So when we add international business, it comes with very low overhead and should contribute to our being able to meet our operating profit goals more quickly.

至於營業利潤，正如剛才回答邁克爾的問題時提到的那樣，在考慮未來時，我們的目標實際上是在台灣建立一個嚴密的財務結構。我們的研發費用全部產生於台灣。我們公司的所有管理費用均產於台灣。因此，當我們增加國際業務時，它帶來的開銷非常低，並有助於我們更快地實現營業利潤目標。

Thank you. (Operator Instructions)

謝謝。 （操作員指令）

All right, operator. In the meantime, this is Michael Bowen again from ICR. We do have a write-in question from Daniel at UBS. I'll start with the first one. There is a second one. But the first one is, could you please give us some color on the competitive landscape of electric two-wheelers in India and what are Gogoro's strengths and weaknesses compared with the other brands?

好的，接線生。同時，我是 ICR 的 Michael Bowen。我們確實收到了來自瑞銀的丹尼爾的書面提問。我先從第一個開始。還有第二個。但第一個問題是，您能否向我們介紹一下印度電動兩輪車的競爭格局，以及與其他品牌相比，Gogoro 的優點和缺點是什麼？

Great, thanks. I'll take that question, Michael. So, as we look at the landscape in India, one of the first thing we saw was it was clearly a play for a more sophisticated, proven, high-powered battery swapping technology to really help service at the very beginning the B2B segment. There's a lot of vehicles today that are very, very low power with batteries that are what we call swap-outable instead of really swappable. They would have -- lots of cables that actually connect with different connector where -- a user would have to remove certain piece of the vehicle in order to swap out the battery to really mimic a swap-out experience.

太好了，謝謝。我來回答這個問題，麥可。因此，當我們觀察印度的情況時，我們首先看到的是，它顯然需要一種更複雜、更成熟、更強大的電池更換技術，以便在 B2B 領域初期真正為服務提供幫助。如今，許多車輛的電池功率都非常低，我們稱之為可更​​換電池，但實際上並非可更換電池。它們會有許多電纜，這些電纜實際上與不同的連接器相連，使用者必須拆除車輛的某些零件才能更換電池，以真正模擬更換體驗。

For us, with Gogoro, we've been really focused on swapping experience from ever since we founded the company. And that means of doing in just seconds has really blown away most of our -- the people that have actually ridden and touched and swapped the battery without pilot. And I think there's a huge opportunity for us when it comes to providing proper two-wheelers that is powerful, that is durable and then as well as very usable and cost effective in that market. So I think that as we look around, there really wasn't too many direct comps, so to speak. But as we look at dollar for every kilometer, we certainly see that we have a very, very great opportunity ahead of us.

對我們來說，自從成立 Gogoro 公司以來，我們一直非常注重經驗的交流。這種在幾秒鐘內就能完成的操作確實讓大多數真正騎過、觸摸過並在沒有飛行員的情況下更換電池的人感到震驚。我認為，在提供強勁、耐用且實用、具有成本效益的兩輪車方面，我們擁有巨大的機會。因此，我認為，環顧四周，確實沒有太多直接的可比性。但當我們考慮到每公里的美元價值時，我們當然看到，我們面前有一個非常非常好的機會。

All right. Thanks, Horace. And the second question from Daniel at UBS is as the network expansion might need significant CapEx. How does Gogoro convince local partners in the overseas markets to make such a move?

好的。謝謝，賀拉斯。瑞銀的丹尼爾提出的第二個問題是，網路擴張可能需要大量的資本支出。 Gogoro 如何說服海外市場的當地合作夥伴採取這樣的措施？

Great question. So as you look at Taiwan, one of the fundamental reasons -- several fundamental reason where we do actually carried CapEx in Taiwan. The first really had to do with the fact that we're such an early mover that we had to actually prove out the technology, prove out the fact that we can actually have sticky subscribers on our network. They are paying for these batteries over time. And today, I think we've been able to do that very successfully. The second thing is that led us to make a decision to carry the CapEx on the network in Taiwan is because in Taiwan, very much like Japan and other parts of kind of the Northeast Asia, the interest rate and the cost of capital is just so low when it comes to basically debt capital.

好問題。所以當你看台灣時，其中一個根本原因——我們確實在台灣進行了資本支出。首先，我們是先行者，因此我們必須真正驗證這項技術，證明我們確實能夠在網路上擁有黏性使用者。他們會隨著時間的推移支付這些電池的費用。今天，我認為我們已經非常成功地做到了這一點。第二件事是我們決定在台灣進行網路資本支出的原因是，台灣與日本和東北亞其他地區非常相似，債務資本的利率和資本成本非常低。

So for us, the ability to actually leverage that and actually create more value in the company was -- definitely was something that we talked about a lot and we made a conscious decision to carry CapEx in Taiwan. But when it comes to going overseas, a place like India where easily, it sells 20 times more vehicle per year than the island of Taiwan or in markets like Southeast Asia, where there will be just a lot of other, I would say, markets that are also very much larger than Taiwan.

因此對我們來說，真正利用這一點並為公司創造更多價值的能力是我們經常談論的事情，我們有意識地決定在台灣進行資本支出。但說到海外，像印度這樣的地方，每年的汽車銷售很容易就比台灣島多 20 倍，或者像東南亞這樣的市場，我想說，那裡還有很多其他市場，它們的規模也比台灣大得多。

Putting that all on gearing that CapEx on our own would not only be not -- doesn't make financial sense, but also as well as very expensive. So for us, we've been actually in talks with several partners in which they -- we would then basically divide and conquer, in which we will be able to actually have partners also put in the capital to do such -- to deploy the network. So I can't speak too much detail about as to how we're going to do that. But the idea is for Gogoro to expand, not using our own capital going into those markets but instead, basically creating a win-win situation with the partner to do so.

將所有資本支出用於槓桿化不僅不符合財務要求，而且成本非常高。因此對我們來說，我們實際上一直在與幾個合作夥伴進行談判，然後我們基本上會分而治之，我們將能夠實際上讓合作夥伴投入資金來部署網路。因此我無法詳細透露我們將如何做到這一點。但 Gogoro 的想法是擴張，不是用我們自己的資本進入這些市場，而是與合作夥伴一起創造雙贏的局面。

Operator, do we have any teed up? We have another online question, if not?

接線員，我們有準備好嗎？如果沒有的話，我們還有其他線上問題嗎？

(Operator Instructions) I'm showing no phone questions at this time.

（操作員指示）目前我沒有顯示任何電話問題。

Okay. We have another online question. So the question is, could Gogoro sell batteries, energy storage solutions directly to customers and businesses around the world and say, like the way Tesla has their energy storage products like Powerwall and Powerpack Europe and US are huge markets for battery energy storage. So, could you elaborate on that? thank you.

好的。我們還有另一個線上問題。所以問題是，Gogoro 能否直接向世界各地的客戶和企業銷售電池和儲能解決方案，就像特斯拉擁有 Powerwall 和 Powerpack 等儲能產品一樣，歐洲和美國是電池儲能的巨大市場。那麼，您能詳細說明一下嗎？謝謝。

Great. Our main focus when we started the company is really to progress sustainability and apply every technology and every product that we do to do so. In Taiwan's case, I'll use Taiwan is an example first, in Taiwan's case, the primary use of the battery and you have to remember, they're kind of portable power packs at the moment, the primary use is really for mobility where somebody would use the battery to basically go from point A to point B and in the vehicle mainly.

偉大的。我們創辦公司時的重點實際上是推動永續發展，並應用我們所做的每項技術和每一款產品來實現這一目標。就台灣而言，我首先以台灣為例，就台灣而言，電池的主要用途是，您必須記住，它們目前是一種便攜式電源組，主要用途是移動，人們基本上會使用電池從 A 點到 B 點，主要是在車輛中。

But on the side, waiting for the soft our batteries are idling on the -- on what we call the rack side, which is the station side. There's plenty of opportunity for those batteries to really work in partner with the grid to do ancillary services such as demand response or frequency response. That's -- really think of it as a complementary business in that particular case. Now, batteries -- on our batteries, there is a lot of life left actually after mobility. For us, the ability for the battery pack to power a family of two up a very, very steep hill, will require the battery to be in a certain amount of state of health in order to not have that voltage drop.

但在一側，等待軟啟動時，我們的電池處於閒置狀態——在我們所謂的機架側，也就是站點側。這些電池有許多機會與電網合作提供輔助服務，例如需求響應或頻率響應。在特定情況下，確實可以將其視為補充業務。現在，我們的電池在移動後實際上還剩餘很多使用壽命。對我們來說，要讓電池組能夠為一個兩口之家爬上非常陡峭的山坡提供電力，就需要電池處於一定的健康狀態，以免出現電壓下降。

Now, the ability for us to actually use that battery post that life, there's still plenty of actually cycles and life left in those batteries. We're now working on a lot of solution to enable, as Bruce said earlier in the call, to use that battery pack to also create both UPS solution or our backup solutions as well as storage solutions.

現在，我們實際上可以在電池壽命結束後繼續使用，因為電池實際上還可以使用很多次，而且壽命還很長。正如布魯斯在通話中早些時候所說，我們現在正在研究許多解決方案，以便使用該電池組來創建 UPS 解決方案或我們的備份解決方案以及儲存解決方案。

Don't have too much to share other than we're working on that technology because there's just so much more life left in the batteries that we have in the field today. Since we launched the platform, not many battery packs have actually been retired off the network. And for us to actually see that in volume, it was going to take many more years in order to do that. But in a sense, we're preparing to that.

除了我們正在研究的技術之外，沒有太多資訊可以分享，因為目前我們在現場使用的電池的使用壽命還很長。自從我們推出該平台以來，實際上並沒有太多電池組從網路中退役。而我們要真正大規模地實現這個目標，還需要很多年的時間。但從某種意義上來說，我們正在為此做準備。

Now, when it comes to can we actually create battery packs and create solutions there storage and sell it. I think that there's always room for a lot of technologies to apply to sustainability.

現在，說到我們是否真的可以製造電池組、創建解決方案、儲存並出售它。我認為很多科技在永續發展方面都有應用空間。

We are one of the largest consumers of battery cell in our industry because the sheer size of the deployment that we have, we have now over 1 million battery packs deployed. And we will continue to work on creating these packs and enabling different parts of the world to take advantage of them.

我們是業界最大的電池消費者之一，因為我們部署的電池規模龐大，現在已經部署了超過 100 萬個電池組。我們將繼續致力於打造這些產品包，並讓世界各地都能利用它們。

Thank you. (Operator Instructions) And I'm showing no current questions in the queue. I'll hand it back to you, Michael.

謝謝。 （操作員指示）我沒有顯示隊列中的當前問題。我會把它還給你，麥可。

Thank you, operator. At this time, I will hand the conference back over to Horace for a few closing remarks. Horace?

謝謝您，接線生。現在，我將把會議交還給賀拉斯，請他作一些結束語。賀拉斯？

Great. Thanks, Michael. If I could leave you guys with three simple takeaways, they would be, number one, we continue to work tirelessly to open the India market. I'm proud of the work that the team on the ground has put in and we're on the verge of great things in India. We're thankful for the support of the Maharashtra government. The program they created for us and the amount of support financially they have actually lend us, it really is a program, first of its kind in India. And I think that will really help us achieve a successful launch in India overall, not just in the state of Maharashtra, but overall in India.

偉大的。謝謝，麥可。如果我可以給你們留下三個簡單的要點，那就是，第一，我們將繼續不懈地開拓印度市場。我為實地團​​隊所做的工作感到自豪，我們在印度即將取得偉大的成就。我們感謝馬哈拉施特拉邦政府的支持。他們為我們創建的這個項目以及他們實際提供給我們的資金支持數額，這確實是印度第一個此類項目。我認為這將真正幫助我們在印度全面成功上市，不僅是在馬哈拉施特拉邦，而是在整個印度。

The second point I want you guys to take away is that the Taiwan EV market and our sticky subscriber base will continue to grow, and the trend to electrification will continue both in Taiwan and in other countries. We're pleased to work with the government in both Taiwan and India to assist in this transition.

我希望大家記住的第二點是，台灣電動車市場和我們的黏性用戶群將持續成長，而且無論是在台灣還是其他國家，電氣化趨勢都將持續下去。我們很高興與台灣和印度政府合作，協助這項轉型。

Number three, product and technology improvements and upgrades are important, and localizing manufacturing will also help reduce cost. Our technology and platform ecosystem remains best in class, and we look forward to making that ecosystem available more broadly as we expand internationally. Thanks for calling in, and thanks for supporting Gogoro as we seek to make smart, swappable energy available to every urban riders in the world. Thank you, everyone.

第三，產品和技術的改進升級很重要，在地化生產也有助於降低成本。我們的技術和平台生態系統仍然是一流的，我們期待隨著國際擴張，該生態系統能夠得到更廣泛的應用。感謝您的來電，感謝您對 Gogoro 的支持，我們致力於為世界上的每位城市騎乘者提供智慧、可更換的能源。謝謝大家。

The conference has now concluded. Thank you for attending today's call. You may now disconnect.

會議現已結束。感謝您參加今天的電話會議。您現在可以斷開連線。