005380.KS FY2026 Q3 Earnings Call Transcript
Date: 2026-10-29
Source: Financial Modeling Prep

Operator: Ladies and gentlemen, thank you for attending this conference call. We will now begin Hyundai Motor Company's business results conference call for the third quarter of 2026. Once again, the presentation materials can be downloaded from the Financial Supervisory Service's electronic disclosure system at dart.fss.or.kr or from our IR website at www.hyundai.com. Joining us at this conference call are Executive Vice President, Seung Jo Lee, the Head of Planning and Finance Division; Executive Vice President, Zayong Koo, the Head of IR Division; Vice President, [ Kyu Seok Ahn ] of Finance and Accounting Subdivision; Michael Yun, the Head of IR Group; and Vice President, Hyungseok Lee, Head of Planning and Finance Division of Hyundai Capital. We will first have Hyundai Motor Company's presentation on the business results, followed by a Q&A session with the attending investors. [Operator Instructions] Now we will proceed with the presentation by Michael Yun, the Head of IR Group at Hyundai Motor Company.
Michael Yun: Hello. This is Michael Yun, Head of IR Group. We will now begin Hyundai Motor Company's 2026 Q3 business results conference call. Today's presentation will be based on the 2026 Q3 business results presentation file currently posted on our website. This presentation includes quarterly highlights, sales performance and profit analysis. And for quarterly summarized cash flow statement and detailed regional sales breakdowns, please refer to the appendix. First, Q3 highlights. Despite a year-over-year decline in industry demand in the U.S., retail sales grew 3.5% year-over-year, and our market share in the U.S. reached 6.6%, maintaining market share in the 6% range for 6 consecutive quarters. Supported by robust demand, hybrids accounted for 18.2% of our global sales. And in the U.S. market, in particular, the hybrid sales mix rose to 26.8%, continuing the growth momentum of hybrids. As such, despite a decline in global demand amid growing geopolitical uncertainty, we recorded an operating profit margin of 5.9% in Q3, representing improved profitability year-over-year. Next, the sales performance. In the third quarter of 2026, due to a decline in global industry demand and the impact of strikes, global wholesale decreased 11.3% year-over-year to 921,000 units and retail sales totaled 931,000 units, down 10.1% Y-o-Y. Next, I will go over the details about our wholesales by key markets. In the U.S., industry demand declined 1.3% Y-o-Y, while our wholesale volume decreased 9.9% to 232,000 units. However, driven by strong sales led by hybrids and Genesis models, retail sales increased 3.5% Y-o-Y. As for electrified vehicles, hybrid sales increased 18.4% Y-o-Y and accounted for 26.8% of total sales. Supported by such solid retail performance, our market share in the U.S. reached 6.6%, maintaining market share in the 6% range for 6 consecutive quarters. In Europe, reflecting short-term impact from the transition of our lineup towards electrified vehicles, sales decreased by 18%, totaling 123,000 units. However, through continued optimization of our product mix, the share of SUV sales expanded by 6.5 percentage points Y-o-Y to 76%, while electrified vehicle sales accounted for 52.9% of sales. Looking ahead, we will pursue a sales recovery in the fourth quarter, supported by the full-scale rollout of the IONIQ 3 and the launch of key models. In Korea, with fewer working days due to the Chuseok holiday and production disruptions caused by labor strikes, sales decreased by 27.2% Y-o-Y to 131,000 units. However, with solid demand continuing led by the Grandeur Hybrid, the hybrid sales mix expanded 3.7 percentage points to 29.4%. In the fourth quarter, we will pursue a sales recovery through production normalization and full-scale new model launches. Next, I will explain the sales analysis by vehicle segment. Global SUV sales, including Genesis, totaled 571,000 units, accounting for [ 52% ] of total sales. Hybrid sales increased 3.8%, continuing their growth, but EV sales decreased 9.2% Y-o-Y and total electrified vehicle sales decreased 2.7% year-over-year to 245,540 units. This concludes the presentation on sales performance, and I will now continue on with the profits and losses. This page summarizes our income statement. In the third quarter of 2026, revenue decreased by 3.4% Y-o-Y to KRW 45.1 trillion, while operating profit increased by 5.5% to KRW 2.7 trillion. In the Automotive division, due to production disruptions caused by labor strikes and lower sales under challenging market conditions, revenue decreased by 10% Y-o-Y. However, despite such lower sales supported by favorable foreign exchange and contingency measures, operating profit in the Automotive division increased by 24.8% Y-o-Y. In the Finance division, revenue increased by 27.8%, driven by growth in the managed assets. Operating profit, however, declined 18.2% Y-o-Y due to higher operating expenses, including increased interest expenses. Net income decreased 24% to KRW 1.9 trillion. Next is the quarterly revenue and operating income analysis. Revenue benefited from favorable FX rates contributing KRW 0.66 trillion, while decreased global wholesale resulted in a negative volume effect of KRW 3.44 trillion. Additionally, higher incentives resulted in a negative mix effect of KRW 0.69 trillion. Despite higher revenue from the finance division driven by growth in managed assets, total revenue decreased 3.4% Y-o-Y. Regarding operating profit, as shown on the slide, the negative volume and mix effects were offset by positive factors, including favorable FX effects and cost reduction from contingency measures. As a result, operating profit increased by 5.5% to KRW 2.7 trillion with an operating margin of 5.9%. The last is the SG&A and net profit. Despite higher raw material costs, our Q3 cost of goods sold ratio decreased by 1.7 percentage points to 83.8%. SG&A decreased 19.2% to KRW 4.6 trillion, mainly due to lower sales warranty provisions resulting from the decrease in quarter end exchange rates. However, nonoperating income decreased by 71% Y-o-Y and net profit decreased by 24.2% to KRW 1.9 trillion. This concludes the presentation of the 2026 Q3 business results. Thank you. Next, Executive Vice President, Seung Jo Lee, the Head of Planning and Finance Division, will assess the company's Q3 business results and update of the 2026 annual guidance.
Seung Jo Lee: Good afternoon. This is Seung Jo Lee, Executive Vice President and Head of Finance Division. I'll now present Hyundai Motor Company's 2026 Q3 business performance, Q3 dividend and the 2026 annual guidance update. Third quarter production well fell short of plan, scheduled summer vacation and the Chuseok holiday reduced the number of working days compared with the same period last year, and the strike further affected output. Because of the production disruption caused by the fire at a parts supplier in the second quarter, our inventory was limited. We plan to recover volume through higher production in the third quarter, but the reduced working days and the strike impact delayed that recovery. As a result, global wholesale sales volume decreased 11% Y-o-Y to approximately 920,000 units. The lower volume led to a 3% Y-o-Y decline in revenue to approximately KRW 45.1 trillion. Next, I would like to explain operating profit. Operating profit increased by approximately KRW 140 billion year-over-year to approximately KRW 2.7 trillion. This was achieved despite of higher fixed cost per unit due to lower production, rising raw material costs and increased incentives in key markets, which added pressure to profitability. Favorable foreign exchange effects, lower U.S. tariffs driven by differences in tariff rates and cost optimization activities offset these headwinds. The operating margin rose 0.5 percentage points to 5.9%. Due to domestic plant production disruption that continued from the second quarter through the third quarter, not only the domestic sales declined, but shipment volumes from exports to key markets also decreased. In addition, sales volume in the Middle East continued to shrink. The impact of these global volume declines amounted to approximately KRW 1.1 trillion Y-o-Y. Also due to the prolonged Middle East conflict and inflationary pressures, we incurred a cost burden of approximately KRW 500 billion from higher raw material prices in the third quarter. To elaborate on raw material prices, as previously anticipated, major raw materials such as steel plate, aluminum and plastic peaked in the second quarter and have since turned down. However, even though prices are trending lower, the magnitude of the earlier price increase was significant. And with the resolution of geopolitical issues delayed, spot prices have remained at high levels since the second quarter and continue to be elevated. When considering the time for raw material sourcing from production, shipment and sales before the impact takes lead time to be reflected in our financial results, the cost burden for the current quarter has increased due to past raw material price increases. For some raw materials, prices continue to rise due to expanding AI investment worldwide and ongoing geopolitical supply-demand issue. As a result, we expect the raw material cost burden to persist through the fourth quarter. However, to offset this cost burden, we pursued cost optimization activities, which offset approximately KRW 500 billion of the cost increase, including higher raw material prices. In addition, although U.S. sales volume declined Y-o-Y as lower global sales resulted from the production disruption, the U.S. share of wholesale sales in the third quarter exceeded 25%. Hybrid sales volume and share both increased Y-o-Y and the mix effect in the third quarter was slightly positive compared with the same period last year. With regard to foreign exchange, the Korean won has recently returned to a strengthening trend. However, the average exchange rate increased by KRW 38.1 Y-o-Y, resulting in a favorable average exchange rate effect of approximately KRW 500 billion. In addition, as the decline in the period-end exchange rate expanded the foreign exchange effect on the warranty provision, both the average and period-end exchange rates recorded positive foreign exchange effects. Next, I would like to discuss the third quarter dividends. Under the Value-Up Program announced in August 2024, we plan to pay a quarterly dividend of KRW 2,500 per share for both common and preferred shares for the third quarter. The record date for the third quarter dividend is November 30, and the dividend payout date is December 30. Regarding our outlook for the fourth quarter, our utilization rate declined in the second and third quarter due to production disruptions at our domestic plants. As the vehicles produced during this period are sold in the fourth quarter, we expect the fixed cost burden per unit to increase. In addition, raw material prices remain elevated, and we expect the cost burden to continue in the fourth quarter. U.S. tariffs remain in effect and geopolitical risks persist. As a result, we expect the global business environment to remain challenging. However, although the launch time of some models have been adjusted due to impact of strike and other factors, domestic plant production has returned to normal since September. In particular, we anticipate improved product mix driven by the growing share of hybrid vehicles, including expanded sales of key new models such as Avante, Tucson GV90 as well as GV80 Hybrid. In addition, through continuous cost competitiveness, improvement initiatives and reduced incentives following new model launches, we plan to pursue company-wide efforts to minimize cost burden and improve profitability. I'll now walk you through the update of the 2026 annual guidance update. We have revised our 2026 global wholesale target to 4 million units, down from our previous target of 4.1 million units. This adjustment reflects lower production in our domestic plants due to labor strikes and parts supply disruptions resulting in reduced export volumes to key markets as well as weaker sales in the Middle East and EMEA due to continued geopolitical uncertainty. In the fourth quarter, we plan to expand supply to major markets as domestic plant operations return to normal. We will also accelerate the production and sales of new models whose launches have been delayed. For 2026, we are maintaining our consolidated revenue growth guidance at 1% to 2%, unchanged from our previous outlook. Lower global wholesale volumes and a weaker Korean won to USD exchange rate are expected to weigh on revenue growth. However, we expect part of this impact to be offset by solid demand in North America and continued growth in hybrid vehicles sales. Now let me turn to our operating profit margin outlook. Since the announcement of our initial guidance at the beginning of the year, geopolitical uncertainties, including the U.S.-Iran conflict and resulting in higher raw material costs and increased cost pressures. In addition, as previously mentioned, a supplier fire in the second quarter and labor strike that continued into the third quarter led to production interruptions at our domestic plants. The decline in Korean won to USD exchange rate has also negatively impacted profitability. Moreover, production disruptions delayed the mass production and launch schedule of certain new models. As a result, the anticipated volume and earnings contribution from new vehicle launches is now expected to materialize later than originally planned. Taking into account these changes in both internal and external operating environment, as well as our YTD performance and outlook for the remainder of the year, we have revised our 2026 operating margin guidance to 5.5% to 6.5%. We also note that recent guidance updates from major global automakers point to a similarly uncertain operating environment. Although the degree of impact varies by company and region, many automakers are facing intensifying competition, including the growing presence of Chinese OEMs in the European market and some have revised their full year outlook downward to reflect these changes. This revision does not reflect any deterioration in our fundamental business competitiveness or earnings generating capabilities. Rather, it primarily reflects the need to incorporate in our full year outlook, the cumulative impact of factors largely outside our control. We remain confident in underlying strength of our business and our ability to deliver sustainable long-term value. For the Automotive division, we have revised our investment plan to KRW 15 trillion, down from our previous target of KRW 17.8 trillion. While maintaining critical R&D investments to secure future competitiveness, we will review investment priorities and execution time to improve capital efficiency. As a result, we plan to optimize investment by approximately KRW 1.8 trillion, primarily through capital expenditure management. With respect to free cash flow, we intend to maintain our existing guidance range of negative KRW 1 trillion to positive KRW 0.5 trillion. Next, Vice President, Hyungseok Lee, the Head of Planning Finance Division of Hyundai Capital, will assess the Q3 results for the finance businesses.
Hyungseok Lee: Although profitability faced challenges in the third quarter as external uncertainties persisted, including prolonged instability in the Middle East and rising interest rates, Hyundai Capital and Hyundai Capital America stably maintained a high-quality auto finance portfolio based on the close collaboration with the group. Now let me walk through the details. First, Hyundai Capital. Leveraging our stable funding base, we continue to support group's vehicle sales financing and the share of automotive finance remained at 80% of total earnings assets in the third quarter. New vehicle financing declined due to an unfavorable operating environment, including lower vehicle deliveries, higher market interest rates and intensified competition in the auto finance market. However, we selectively expanded corporate finance to diversify our portfolio and secured additional profitability and earning assets grew 2.4% Y-o-Y. In addition to new vehicle installment financing, our flagship product, we gradually expanded leasing and corporate finance, increasing our asset base. The resulting rise in interest income led to 2.8% increase in operating revenue. On the expense side, we offset much of the impact of rising interest rates by diversifying our funding portfolio. However, interest expense increased due to higher borrowings driven by asset growth. Reflecting higher credit costs from proactive provisioning for corporate finance and larger provisions for liability in light of the softening used car market, operating expense rose 5.8% Y-o-Y. As a result, operating profit declined 26% and pretax profit declined 25%. Our Australian and Indonesian subsidiaries, which are at a relatively early stage of business are also gradually stabilizing their business foundation through continued asset growth and reduction in initial losses. Moreover, we successfully launched our India finance subsidiary in August this year and began offering dealer financing. Going forward, we will expand our business scope in stages in line with local market conditions. In Hyundai Capital, we expanded its financing business into Hyundai Motor's key strategic markets and strengthen the global sales financing capabilities. In the fourth quarter, financial market volatility and economic uncertainty are expected to persist due to geopolitical risks, rising interest rates and exchange rate fluctuations. Hyundai Capital will expand profitability through flexible funding and origination strategy tailored to market conditions and continued cost management. Next is Hyundai Capital America. Despite challenging market conditions in the third quarter, including weakened U.S. auto consumer sentiment, HCA maintained a high penetration rate supported by the group's solid sales and earning assets grew 5% Y-o-Y. Driven by stable asset growth and higher lease income from rising average vehicle selling prices, operating revenue increased 24%. Operating expenses increased 26%, mainly due to higher interest expense and lease depreciation as managed assets grew as well as higher losses on used car sales due to lower used car prices and return -- higher return rates. Although the delinquency rate rose slightly with heightened macroeconomic uncertainty and slowdown in the U.S. economy, we are strictly managing a high-quality portfolio with prime customers at around 90%, reflecting the operating profit and pretax profit declined 22%. In the fourth quarter, an uncertain market environment is expected to continue due to U.S. inflationary pressure and persistently high interest rates. However, despite recent interest rate volatility, U.S. capital markets continue to offer favorable funding conditions and HCA also successfully completed a $1.5 billion funding transaction last September. Backed by ample liquidity of $19 billion as of the end of September and a high-quality asset portfolio, HCA will respond flexibly to future market. This will conclude the presentation of the financial business. Now we will take questions.
Operator: [Operator Instructions] The first question will be provided by Yongmin Kim from Yuanta Securities.
Yongmin Kim: I'm Kim Yongmin from Yuanta Securities. My question is for Hyundai Capital. Usually, I think your sales is more -- has a seasonality. So as of 2024 Q4, you had shown meaningful growth quarter-on-quarter and your sales has been expanding continuously. However, your Q4 outlook for this year, I think it may be due to the big fluctuation of foreign exchange rates and also maybe the big sales of HCA. But how much impact is taken by the FX rate in your finance business to your sales and also your profit and losses? Because your Q3 numbers don't seem that good. Is it mostly because of the U.S.? Or I mean, what is the biggest accountability in terms of these results? Is it the car prices or maybe the interest rate?
Unknown Executive: Thank you for your question. So as far as I understand, I think you had 2 questions. First was regarding the profit and loss, why it has deteriorated in Q3 and also how the FX rate will be affecting the sales and the P&L for Q4? So to answer your first question, yes, our profitability has gone down for Q3. Was it because of the car prices or because of the interest? I think that was your question. I'm sorry. So I'll first answer regarding the Q4 impact of the FX rate. I think it pretty much follows the earnings of HMC. So we are pretty much in line with the way HMC is headed. As for the deterioration of P&L for Q3, we try to match our debt rate as well as our capital rate. And because the interest rate, the long-term interest rate has gone up, that has also resulted in the interest cost for us. So I think that was the biggest impact in these deteriorated results. And also another part would be the used car rate. We have seen some losses in selling the cars that have been returned. And because of higher interest, the delinquency rate has also gone up, impacting our cost. Thank you.
Unknown Executive: And if I could add on to that, the prices haven't actually changed that much. So that's not really a factor impacting our sales. But overall, for Q3, the wholesale sales have not changed that much, maybe gone down a little bit. But I think the impact -- for the finance business, the impact was to do with the sales profit and also the delinquency rate and the delivery fee that gone up as Hyundai Capital has explained. And I believe that they have reflected that trend to the end of September numbers resulting in such numbers. Thank you.
Operator: The following question will be presented by Eun Young Yim from Samsung Securities.
Eun Young Yim: I'm Eun Young Yim from Samsung Securities. I have 2 main questions. First, in the 2024 CEO Investor Day, you said that for the next 4 years, you're going to repurchase and cancellation the stocks. And I believe that amount is about KRW 700 billion and KRW 800 billion. And by next year, I just want to know if that policy is going to be into -- coming into reality. And the second question is in the operating revenue, I saw that there was other area that showed an increase, which was about KRW 640 billion. So was that part of the cost reduction activities? So these would be the 2 main questions.
Unknown Executive: So to answer your first question, in 2024, we said that we're going to repurchase KRW 4 trillion amount of stock. But after 2024, the business environment changed. So one of the main reasons were because of the tariff. The tariff amounted up to KRW 4 trillion last year, and we believe it's going to be similar this year as well. So if -- considering the changing business environment, we are not sure what the best solution would be. So we are taking that into consideration. So if we have and come up with a solution, we will make sure that we can communicate that with the stockholders. So for the other aspect, I always talk about this every quarter. But every month, we are going through contingency measures, and we are coming up with optimization plans. So we are continuing the cost reduction activities. So -- and we are also going to continue the cost reduction activities throughout the fourth quarter, and we believe that amount is going to increase in that quarter as well.
Operator: The following question will be presented by Joon Sung Kim from Meritz Securities.
Joonsung Kim: I just want to clarify the answer that you've given to the previous question with Samsung Securities because the other part of -- in Q3 for nonoperating P&L has gone down. So what's the exact reason for that? Is that the term and FX rate or some other reasons? So that I just want to clarify that. As for myself, I have 2 questions. First is the shareholder return policy. Compared to '24 and '25, you had given 2 tracks that you're going to take. First is regarding the buyback of treasury stock. Second was through the dividend payout. As for the treasury stock, you bought back -- your plan was originally from KRW 1.5 trillion, which has been downsized to KRW 0.5 trillion, so about maybe 60% to 70% of your original plan. As for the dividend, it has been changed from originally KRW 3 trillion to KRW 2.5 trillion. So if the P&L continues to deteriorate in the future, will you still be holding more importance to dividend over the treasury stock buyback as you have shown in the previous years? My second question is regarding your sales in the domestic market. With the Chinese makers now, the market share becoming over 10%, they're pretty much becoming a big threat. And during the CEO Investor Day, you said that you had a big plan for launching new vehicles and models. Currently, you're selling 50 models. And by 2030, you were saying that you're going to expand this number up to 100 models. However, as of next year and the oncoming years, big Chinese brands such as Zeekr or Chery, they will continue to come into the Korean market and become a big threat. So what is the response that you have in your pocket at the moment? I mean, what models do you have planned to launch at what price strategy? How are you planning to respond to these challenges?
Unknown Executive: If I could clarify on the repeated question. So you're saying that there was a big drop in our nonoperating profit and losses compared to the previous year. So I think there would be 2 big reasons for that. First is regarding our foreign exchange -- our foreign currency assets. With the FX rate dropping significantly in Q3, the exchange rate loss have become a reason for that. Secondly, because of our share-based evaluation -- the valuation, most -- many of the companies that we have stakes in, their performance in Q3 weren't that good. So that was reflected in the numbers. And just to further clarify, just because I mentioned about the stakes that we have of our affiliates because of the equity method, that really doesn't take a big portion of the drop in these numbers, mostly it's due to FX rate. So the foreign exchange rate has dropped significantly. So that has come from the losses. The losses come from the FX rate. Moving on to your second question for the shareholder return policy. We do understand that previously, the treasury share buyback and the dividend payout has been somewhat balanced. But as of this year, we needed to meet the TPR of 35%, while also giving a payout of KRW 2.6 trillion so far. So I believe you are wondering what our future direction is going to be, what our direction is going to be. As we had -- the Value-Up Program that we had announced in '24 during our CEO Investor Day, we promised to keep a TPR of 35% and to give a minimum of KRW 10,000 to our shareholders. However, as the business environment has rapidly changed, we still do need to keep up to the promise that we have made. So we are still looking into how we can improve the value for our shareholders. And until that plan is finalized and communicated with our shareholders, we do believe that we have to keep the promise of KRW 10,000. So we know that there is a strong voice in the market for the buyback and the dividend ratio to be balanced out. And until we have come out with a concrete plan to do this, we will keep our ears open to listen to the voices of the market and the shareholders. Moving on to your final question. We do know that the Chinese EVs and Tesla, they are really rapidly expanding their presence in the domestic market in terms of shares. And we have a lot of measures in place to defend our market share. We are not going to frequently fluctuate our prices as Tesla or other Chinese OEMs does, because we believe that measure will damage the residual value of our used cars as well as the value of our customers. But we do have in our hands the competitiveness in terms of installment payments as Hyundai Capital had also just mentioned. Because this is our strong suit compared to other OEMs, we have significantly lowered the monthly installment pay for these cars that, in turn, also protects the residual value of our vehicles. Another strong point that we have, which significantly differentiates us from our competitors, especially Chinese OEMs and Tesla is our service network, especially for EVs. In Korea, we have our service points maybe over 1,000 bases, whereas Tesla, we understand they only have 17. If you look at the number of registered vehicles per service centers, for us, it's about 290 vehicles per base, whereas Tesla, each service base is registered with about 1,200 units. The lead time for repairs for us from when the car comes into the garage to leaving or fixed, it takes less than a week on average 5 days. For Tesla, it takes more than 2 weeks. In terms of procuring the parts, we target to get it within an hour and about 92% of the cars that come into our service centers get their parts within an hour, and within a day, 99%. Whereas Tesla, it takes over a week or 2. You also mentioned about the new cars that are to be launched. So we have Avante as well as GV80 Hybrid coming up. And in Q4, we have Avante Hybrid, Tucson, GV90, G80 Hybrid and the Santa Fe facelift coming up as well. In December, I think it's planned to have the facelift and G90 as well. For North America, in Q4, we have Tucson GV80 Hybrid. GV90 will probably come out to the market earlier next year. As for Europe, we have IONIQ 3, which sales have already started. And in Q4, the flagship model there is Tucson. That's coming up. There's also Bayon. China, we have IONIQ V that's coming. In India, we have Bayon and IONIQ P. So we have the launch plan of new cars by each year, and there's a lot coming down the pipeline. And maybe you could say it's too much, but we do have a lot of cars that is on the waitlist. For the prices, there are a lot of factors that are considered to decide a price, but we don't just look at the cost itself. We also look at how we can compete with the competitors in the market, as well as taking a presurvey to see how accepted it is acceptable by the consumers. Thank you. Due to the time constraint, we will take one last question.
Operator: The last question will be presented by Yoonchul Shin from Kiwoom Securities.
Yoonchul Shin: My name is Shin Yoonchul from Kiwoom Securities. So I have 2 questions. First, your operating profit, despite it going up year-on-year, your nonoperating P&L, within that, it shows that the corporate tax is approximately KRW 1 trillion. So it's pretty high compared to the previous years. So is there a big reason as to why the corporate tax is that high? And do you have any plans to lower that down to balance that down in Q4? Second question is regarding the IPO that Korean companies are doing in the overseas market. Because of regulations that ban duplicated listing, many of -- or some of the companies are now canceling their plans to go public. Hyundai Motors, you have experience in going public in the Indian market. So do you have any hits, I suppose, regarding this? I mean, is there something that you can do regarding -- so what is your opinion on the recent regulation regarding the ban?
Unknown Executive: All right. To answer your first question, there really isn't a big reason as to why the corporate tax has gone up. It's just because of the tax rate itself and a big change in the P&L mix. And we believe that in Q4, there's not going to be much change either. Just to clarify, we don't have any other plans to go public of any of our affiliates in the overseas market. But if you are asking us about our position and our opinion on the recent policy change, I think it's a bit difficult for us to give an official opinion. Thank you. This brings an end to the 2026 Q3 earnings call for Hyundai Motor Company. Thank you for your time.
Operator: If you have any questions, please contact Hyundai Motor Company's IR group. Thank you very much for your attention. [Statements in English on this transcript were spoken by an interpreter present on the live call.]