Dear investors and analysts, good afternoon. I am the Head of IR department, Liu Yanfeng, and the host of today's event. Our Annual Investor Day creates a platform for candid and sincere communication with the capital market. Your presence makes this event all the more valuable. On behalf of Sunny Optical Technology, I would like to extend a warm welcome and sincere gratitude to all of you. We hope through this event we can jointly analyze industry trends, discuss the company's growth from a new perspective, and witness brand new opportunities for the optical industry in the AI era. Today's agenda consists of two sessions. Session one is the corporate presentation, where our core business leaders will share market opportunities and the business layout, with all presentation materials available on our official website. Session two is the Q&A, during which senior management and the business heads will address all your concerns one by one. After the meeting, we have prepared a dinner for everyone, offering you more chances to interact with the management team over dinner. Now, please allow me to introduce the company representatives attending today's event. They are Executive Director and Chairman, Mr. Wang Tan Jiong. Executive Director and CEO, Mr. Wang Wenjie. Vice President and CTO, Mr. Gu Bo. Vice President and Joint Company Secretary, Mr. Ma Jianfeng. Vice President and the General Manager of Zhejiang Sunny Optical Intelligence Technology, Sunny Zhongshan Optics, Sunny Instruments, Mr. Wang Zhongwei. Co-president of Ningbo Sunny Smart Autotech Company Limited, Mr. Xie Qiansen. Deputy General Manager of Zhejiang Sunny Optics, Mr. Zhao Liefeng. Senior IR Director and Joint Company Secretary, Ms. Wong Pui Ling. First, let's invite Mr. Wang Tan Jiong, Chairman, to deliver the opening remarks. Welcome. Dear investors, analysts, and distinguished partners from all sectors, good afternoon. Thank you for taking time out of your busy schedule to visit Sunny Optical Technology and to join our Annual Investor Day. On behalf of the Board Director of Sunny Optical Technology, to extend the warmest welcome and sincerest gratitude to all of you. It has been less than three months since our 2025 full-year result briefing. Frankly speaking, the external macro environment has not seen fundamental improvement, yet a series of internal transformation at Sunny merit our close attention. First, following the renewal of our management team, the outcomes of organizational reform are emerging, and our platform plus business metrics management model has greatly optimized resource allocation and utilization efficiency, which will ultimately be reflected in our operating performance. Second, we have entered a new strategic phase driven by dual engines. They are product value and capital value. We have set up a brand new investment platform in Hong Kong, Sunny Capital, to systematically build our capital market ecosystem. This platform helps us seize industrial high ground, secure supply chain stability, and incubate new growth drivers. Third, we have further ramped up R&D investment and built a global innovation network. We have established diverse research institute branches in domestic innovation hubs, including Shenzhen and Ningbo, as well as Europe, the birthplace of modern optics. We have formally appointed fellow of the Canadian Academy of Engineering, Mr. Gu Bo, as Group Vice President and CTO. This will remarkably accelerate the commercialization of Sunny Optical's cutting-edge technologies and elevate our core competitiveness. Later, our management team will walk you through the latest progress of each core business segment. Fellow Gu Bo will deliver a thematic presentation focusing on how the company leverages core optical capabilities to embrace the era of AI computing power. We sincerely appreciate the longstanding attention and support from all investors and analysts. We hope today's communication will help you gain a clearer picture of our strategic plannings for navigating industry shifts, our latest business progress, and our layout plans for the future. We look forward to hearing your valuable insights to help us refine our development direction and optimize our strategies. As we enter the AI era, constant emergence of new scenarios and demands across the optical industry bring both challenges and a far broader room for growth. We firmly believe that with our long-established optical expertise and open collaborative development mindset, Sunny Optical will seize the historic opportunities brought by the AI computing revolution and share the dividends of this era with all our investors. Thank you all. Thank you, Chairman Wang Tan Jiong, for your wonderful speech. Next up is our core foundational business. The headset products serve as a cornerstone for Sunny Optical's anchor business. It is an incubation hub for technological innovation amid headwinds from rising memory chip prices and the weight on the overall mobile market, high-end flagship phone keep expanding market share through iteration. Next, let's welcome Mr. Zhao to give us the updates of the headset business. Welcome. Dear investors, analysts, and industry partners, good afternoon. Welcome to our Investor Day. I am Zhao Liefeng from Sunny Optical. Sunny Optical has cultivated the optical industry for years. We consolidate our long-term development foundation through profound technological accumulation, abundant customer resources, and differentiated product capabilities. While consolidating our core headset imaging business, we fully deploy various emerging imaging tracks to capture the incremental growth opportunities. Today, themed with Master Light, Expand Boundaries, Intelligent Imaging for More Scenarios, I would like to talk about the cooperative strategic layout accompanying the industry trends. I will comprehensively analyze the studies of full-scale layout in intelligent imaging from four dimensions, the intelligent imaging trends, product upgrading trends, core platform technologies, and premier intelligent manufacturing, and thoroughly interpret our core competitiveness. First, let's analyze the underlying development logic of the current intelligent imaging industry. As the core carrier for perceiving the physical world, imaging delivers two key values to AI. First, it acts as a visual perception medium to help AI interpret the real physical world. Second, deep integration of imaging hardware and AI algorithms greatly optimize shooting performance across all scenarios. On this basis, carriers of user interaction portals keep iterating. The industry has gone through eras dominated by TVs, PCs, and smartphones as mainstream interaction portals. It is now entering a diversified new stage featuring smartphones paired with wearable devices. We believe the competitive landscape of terminal handset makers will shift in the future, with AI manufacturers accelerating in the ecosystems and further promote the development of this industry. In the mobile phone imagings, right now, we have faced two pressures. In the supply chain, we have seen the imbalance of the supply chain at a cost that has been high. There have been more and more companies coming into the game. The competition had been more ferocious. This had required the industry to accelerate its differentiated innovation. In terms of the market scale, the shipment had been dropped. However, the structure of the product had been more and more premium. It has effectively offset the slowdown of the shipments, especially its reduction of the revenues. From 2026 to 2030, the premium cameras percentage would be increased from 48.8% to 55%. At the same time, for the mobile phone companies, with the accumulation of the imaging technologies would accelerate their deployment in handset, extended lens, and smart glasses, and some other smart hardwares. In terms of the industry growth data, we expect that from 2026 to 2030 in the new tracks of the smart imagings, it will have a cargo of 35%. It is a very strong momentum. Generally speaking, we believe that in the handset industry, we still have a greater room for expansion for smart imaging, and we are very optimistic about the fundamentals of the company. We have formed a dual competitiveness, very effectively offset the pressure on the cost in the industry. On the one hand, based on our optical technologies, we can build a moat. On the other hand, with the AI-empowered manufacturing, we are able to improve the quality and increase the efficiency. The next, based on the demand of the smart imaging technologies in the market, I'd like to analyze our four scenario solutions, technologies, and manufacturing capabilities. Combined with the variations and changes of the market, right now, we have seen four different development trends. On the left-hand side, you can see the extreme miniaturization and the ultra-thin handset as well as the folding handset is pushing the imaging modules into thinner, smaller, and stronger. At the same time, we need to expand the battery capacities, and there are more numbers of the components. The X- Y dimensions need to be further small. It's not an option, instead both of them are necessary. The second trend is professional imaging. The flagship handset is benchmarking against the professional cameras. We have multiple functions, such as the multiple identification. In terms of the videos, we have the video stabilization capabilities, greatly increase the speed and the precision. Combined with the wider dynamic range and the low noise point, we are able to produce the cinematic portrait video. Third will be our overhauled full focal length experience. For the mobile imaging has now evolved from single telephoto to dual telephoto and stepless continual optical zoom, and now even the external attachable lenses, expandable lenses, is also demoed outside our venue today. It enabling the seamless switching between portrait and ultra-telephoto shots across the full focal range. Large image sensor and large-aperture telephoto lenses enhance the texture of our telephoto portrait shots, while telephoto macro capabilities fill the gaps in the professional macro photography. Full focal range imaging is moving from functional enough to premier user-friendly. Fourth is the high integration. Our module's footprint has now compressed continuously with integrated modular lenses design and lens magnet bonding solutions, accelerating mass adoptions to enhance the integrations to deliver more functionality within less space. For all these market trends, we have now a full solution provided by Sunny Optical Tech.. Now I would like to expand more to address our four industry trends outlined above to talk about our solutions and technology. First is our main camera business segment. In 2026, the ASP of our main camera product has a notable year-on-year increase, alongside sharp expansions in shipments of large image sensor main camera modules. That has brought us a lot of contribution. As we can see, our main camera business is therefore achieving both rising shipment volume and higher unit prices driven by product mix optimizations. We offer three core upgrade main camera solution. One is variable aperture plus Quad-Cam ultra- miniaturized lens module. This product's core value lies in the drastically shrinking in X- Y dimensions without compromising optical performance. Technologically, our self-developed Quad-Cam edge technology is combined with our hybrid lens solution, has now entered a mass production at KK volume scale. Supported by high precision AOI assembly technology, Sunny Optical Technology has mastered integrated assembly of variable apertures, motors, and lenses. The second one is our ultra wide large dynamic gimbal OIS module that can help us to achieve a flagship image level. The OIS stability has multiple features such as big angle, low noise. It has surpassed our mainstream performance in the OIS systems major in the market. The next one is the [non-Gol linear system]. That can shrink the X- Y sizes. Our self MOB ultra low size architecture with the molding technology, packaging balance, stability, and cost effectiveness. The next one is the periscope telephoto product. Another driver of lifting our overall ASP. It serves as the growth engine of Sunny's imaging business. We're going to talk about three of this segment. The left one is the large sensor, large aperture cemented prism periscope module. It uses the cemented prism module with large aperture, large image size. It accelerates the incoming of the light accepting, for large periscope, miniaturized has been accomplished by this module, it also achieved KK production. To ensure that at the same size of the product, we can receive the most of the light. The second solution is the integrated module actuator multi-reflection periscope module. This solution overcomes the challenges in complex optical path design. We have the fully stacked own R&D actuator prism, and system. We can have an ultra-high zoom optical system. By our own universal capabilities, SPIM packaging and SEF system, we have optimized the precision control of our actuator, we can shrink the height of the actuator. The next is ultra high pixel continuous zooming periscope module. This realizes the high resolution of the overall focal length. Comparing to the double periscope solutions in the industry, we have lower power consumption with smaller size. Comparing with the double periscope system, we deducted 40% of the size takes inside the handset modules. Besides that, we have our extended product solutions as well. We have two main solutions, which gives us a new growing point. On the left and right, we can see the long focal length expanded lens sets. On the left-hand side, 400-mm focal length. It reaches 17.4 x of the zoom. We use GM + G solutions. You can connect it to the handset camera sets. It can reach a DSLR level solution. On the right-hand side, we can see the 200-mm focal length one. It is the lightweight extended lens set. It is light, but without compromising its quality. In this product solution, this is the new growing point in our handset long focal length solutions portfolio. This is a new foundation for our new growing point and contribute a structural momentum to our business. On the right-hand side, we can see the integrated component product. Here we have offered the opto-mechatronic integrated solution, which helps our customer to iterate the products rapidly. Now we have already have the AA technology for G+ P projects. This optical design lens is a set with multiple group plus variable aperture plus large image size main camera. On that basis, we have made our own deployment in this new technology. With layout on multiple group continuous zoom and variable aperture. With all of these, cannot leave our own pipeline of R&D in Sunny Optotech. First of all is our R&D capability for high-end optical material faced with increasingly stringent imaging requirements. Together with our partners, we co-develop high-end optical resins with our own material suppliers, which are fully applied to our premium main and telephoto lenses. Many of these materials have breakthroughs in technical bottlenecks, including low stress, high refractive index, high temperature resistance, and low dispersion, laying a solid foundation for higher resolution and manufacturing yield of high-end lenses. Meanwhile, driven by the growth of auxiliary lenses and communication business, we have entered strategic cooperations with CDGM for core glass raw materials to consolidate our material supply chain and support the R&D and mass production of our new materials. Second is our in-house R&D capabilities for core prism components. Here we will talk about our three cutting-edge prism technologies. One is the single slot, multi-slot prism technology. We have realized the world's first mass production in the industry. It further shrinks our module size for folded optical paths to realize outline miniaturization and is compatible with lens OIS to enable larger aperture with depth achieved. Number two is our optical power prism technology. We master the full core processing, including cementing, grinding, and molding to boost system light efficiency and optimize image quality. On the right-hand side, we can see the five reflection cemented prism technology. The industry first five-fold optical path architecture for extended optical path length. Combine the low reflection, low transmission aperture, and air layer aperture to stray light can be suppressed at multiple levels. The third is the precision glass molding capability. On one hand, we own the industry first non-edging multi-cavity molding technology, enabling one-stop forming of multiple structural lenses to cut production cost and improve the distribution precision. On the other hand, we master special molding technology paired with glass thermal folding and exclusive release film processes to realize mass production of full spectrum optical lenses, including free form surface and [micro rays]. These capabilities also empowers our optical communication business across sectors with two unique strengths. First, leveraging our profound optical system design and simulation expertise. We effectively miniaturize the lightweight optical modules. Second, with submicron high precision assembly technology, it improves our processing accuracy and mass production efficiency, simultaneously delivering a solid support for scale expansion of optical communication business. Beyond underlying the material and component capabilities, comprehensive in-house requirement R&D forms the core foundation of our differentiation. We provide one-stop solutions covering optical imaging, precision, mechanical design, AI technology platform, high speed, high precision, motion control and equipment control, enabling equipment to support process design. Our equipment now features the core, including visualization, product data, monitoring process, and full quality traceability for the improving product efficiency and yield of multi-stage lens. Sunny is now fully building a premium intelligent manufacturing system centering the AI empowerment digital twin business foundation across delivery and quality, AI intelligent platform, and lean production. We independently build the pioneering AI platform to coordinate and optimize optical design, manufacturing process, quality control, and equipment management to lift the yield and production efficiency. Next one is our agile and customization rapid response supported by parametric design and flexible production lines. We implemented a personalized customization product model with tailored solutions for each customer. Three is full chain traceability, quality assurance. Unique codes run through the full product life cycle through AI visual quality, guarantee stability, delivery, and consistent high quality. The persistent pursuit of ultimate optical performance is the permanent underlying theme of industry development, aimed at intensifying the industry component. AI will further empower the imaging industry, driving comprehensive progress in both R&D and manufacturing as a core pillar for competency improvement. Master light expansion boundaries, intelligent imaging for AI scenarios based on our major industry trends. Sunny will keep advancing optical innovation while stabilizing our core mobile imaging business. We will accelerate market penetration of new imaging products, including handheld gimbals, action cameras, and auxiliary lenses. Deploy diversified synergy tracks for revenue growth and seize long-term dividends for image industry. Thank you Thank you, Mr. Zhao, for your insight, for sharing. We now have a clear understanding that optical imaging acts as a critical medium for AI to perceive the physical world. Optical applications still boast remarkable growth even in mature markets. Yet Sunny Optical's vision stretches far beyond the handset screens. Let's turn our attention to broader tracks. AI has penetrated all scenarios of intelligent driving, smart cabins, and smart automotive lighting, bringing forth abundant new opportunities. Next, let's welcome Mr. Xie to present under the theme of global leader in automotive optics. Let's welcome. Dear investors and analysts, good afternoon. I am Xie Qiansen from the Sunny Auto tech, we are preparing for the IPO, we had handed in the A1 filing. Due to the compliance issues, I cannot share with you a lot of the key indicators, including our product and technology trajectories or roadmaps. I would like to share with you more about the macrotechnology development, including the industry trends. First of all, I would like to talk about three aspects. The first is the intelligent driving systems, especially the upgrade of the perception system. The second one is the intelligent cockpit with the HMI, the human-machine interaction, and also the AI lighting systems that connect with the perception and the manifestation of the light and the shadows. Let me start with the intelligent driving, the perception layer. 2026 is the first year of the L3 and L4 commercialization. In 2026, globally, the L3 legislation has been in the forming, and in China, some of the OEMs have gradually laid out the L3 vehicles for mass production. 2026 is also the L4 commercialization. Around the world, there are over 20 cities with the approval for the robotaxi commercial operation. For example, the top company in North America in 2026 has been operating and mass producing the robotaxi. Number three, the algorithm platforms had been switched from the hundreds TOPS to thousands of TOPS. This kind of upgrade also brought us with opportunities in the upgrade of the smart hardwares, such as the pixel upgrade. Before, we could not increase the performance of the hardwares because it is limited by the computing power. Now, once we have addressed the computing power issue, now the perception hardwares, such as the LiDAR, we will be able to greatly upgrade the pixels. First, in the vehicle cameras, there have been more numbers, so it's increased to 12 to 15 units per vehicle. Previously in the L2+ level, we have the 3MP to 8MP combinations, but at the L3 levels, it's more about 8MP for coverage and even to over 17 MP. In terms of LiDAR, the previous standardized spec is a 1MP LiDAR, in the L3 level, we will have a three to six LiDAR, with one main LiDAR and some other blind spot or short-range LiDAR. In terms of the harness, previously we have 192 lines. Gradually, we would upgrade it to 896 units. These are some of the upgrade in pixels. Another part is about the diversification of the features or the upgrade of the features. At the L3 and the L4 level, the intelligent driving system needs to work all the time. You may have a sense that when you are driving at high speed in the expressways, there might be some bugs hitting the surface of the LiDAR or the cameras, which will affect the performance. How can we get rid of those stains and the bugs in real-time? The optical systems in some extreme environment may have a fogs. With the fogs and dust on the surface of the camera, how can we get rid of it? For both the camera and the LiDAR, we would have a lot of self-cleaning systems and active heating functions to make sure that the smart driving system can work properly all the time. This is adding the value to these smart driving hardwares. Next, I'd like to talk about another important part of the perception layer, that is the LiDAR. Right now, the industry trend is OEM self-development. This is the key I will talk about today in LiDAR. If it is developed independently by the OEMs, then we would have the satellite clustering of the LiDAR. That means we will have the restructure of the division of the work in industry. On the left-hand side, you can see some traditional types of the LiDAR, some short-range, some long-range LiDAR, and the hardware and the computing units, the controlling unit are all integrated. That is to say, the LiDAR manufacturers would be responsible for everything, including the hardware, the control, and the computing. Going forward, the trend is that the OEM will have the self-developed LiDAR, and the hardware, and some core units, such as the computing and controlling parts, would be integrated in the central processor. What they need is an integrated hardware system. For companies who are specialized in module and optical technologies, there will be more opportunities. The second part is in some technological pathways. With multi-year development and iteration, the technology has been more and more homogenous. LiDAR have been developing towards the modularized solutions. The traditional way is, as you can see on the slide, we have the integration of the camera and the LiDAR. Previously we have one camera and one LiDAR, and we mostly have the mechanical integration and the calibration. With the new solutions in 2026, we could have the shared optical pathway with the LiDAR and the camera, and the receiving for LiDAR as well as the chip of the camera are separated. With the shared optical pathway, we can extremely simplify the extrinsic calibration as well as the accuracy of the system. We have put together more factors about optical technologies and the module capabilities. Another trend for LiDAR in the future is called the RGBD chip integration. That means there is a sense and a camera, a lens. LiDAR solution would develop towards the modularized way. Next, the big part is about the cabin perception. The development of the cabin perception is more about vision upgrades, the pixel upgrade, and the multi-model fusion. With this trend, you could see that the demand is coming from the compliance requirement for legislation in China and abroad. For example, we need to have the DMS, OMS. That means the monitoring systems for the driver and the passenger. With this rigid demand, the in-cabin camera need to be upgraded, and we would have the combination with the milliwave radar and the thermal forming cameras, and some microphones. It's not like the simple integration of the 2D image information. Instead, we were to have a more diversified informations to be integrated, so that we can monitor whether the driver is driving in the tired status, and we can monitor the fatigue-ness and healthy level of the driver. We would also have some other perceptions and sensations of the driver and the passenger. Another thing about the in-cabin technology, which we have been worked on, is the HUD. The current evolution of the HUD is more and more from a W-HUD to AR-HUD. The W-HUD is composed of a traditional LED screen and some light systems. The mostly produced HUD usually have a problem that is a small FOV and the short range of the projection, therefore it could not have the integration of the AR technologies. Going forward, if we wanted to develop the AR-HUD, then we need to switch from the liquid crystal technologies to DLP and LCoS. It includes a lot of lighting and imaging, and turning systems, and some freeform surfaces. It includes a lot of the optical components. HUD upgrading towards the AR-HUD would ask us to further increase the added value of the optical components and technologies. Next, I'd like to talk about the smart headlights. Traditionally, the headlight is mainly used for illumination. Step by step, a lot of the domestic and overseas automobile manufacturers, especially the EV companies, have been using some smart headlights, which is used for projecting some signals and signs so that the vehicle can interact with the pedestrians. For example, we have gradually switched from the multi-kilopixel to million- level pixels. Just as the HUD's development trends, the headlights would also include a lot of the projection and lighting and optical systems so that we can further increase the added value. The last part I want to talk about is called AI lighting. This concept, we just covered the intelligent perception and the in-cabin interaction. We need to think about how to take advantage of these external perceptions, and with the internal cloud computing and some algorithms with the empowerment of the AI to allow the HUD smart lighting, headlight, and the in-cabin systems to output some execution level information. With that, we're able to have a closed loop in the system. For perception, including the LiDAR and the camera, we are able to obtain some external information, and then we have the full vehicle computing platforms, including the cloud computing platform, and we're able to do the computation and operation, and then connect it to HUD smart lighting and the cabin interaction. We are able to increase the comfort level and the safety for the driver. This is about the AI lighting system. We can do more in these aspects. I had shared with you the latest development and the trends of smart perception, AR-HUD, and cabin interaction involving some product upgrades. It can bring more development opportunities for Sunny. Thank you very much. Thank you, Mr. Xie, for your in-depth analysis. Beyond automotive solutions, Sunny Optical has built a full layout covering AI glasses, humanoid robots, and a wide range of AI hardware as we explore the physical AI world. Next, let's welcome Mr. Wang Zhongwei to deliver his presentation themed, Optics as the Foundation AI Expanding the Frontier: Advancing Toward the Boundless Opportunities. Let's welcome Mr. Wang Zhongwei. Dear investors and analysts, good afternoon. Next, I would like to share with you [Non-English content] our Pan-IoT business. These are our very popular content, and one is the optical module, and there are three bridges, and the other is the physical AI. For these three bridges, here in Sunny, we think that the optical module is the bridge between the computing power and the signal. I'll probably not go too deep in that because Dr. Gu is going to talk about that later on. The second bridge is that we think that the perception module is a bridge of AI computing and physical AI. This is the perception and interconnection modules. For AI glasses, we think that the AI glasses bridge the human cognition and the physical AI. As you can see, this is the embodied AI technology framework and our eco STEM map. If we talk about AI, we cannot neglect this triangle. One is data, and then it's computing power, and then it's the body itself. The three bridges we see, as we can see, where are those three bridges? One is that if we want to get data, we need to have interaction with the environment or the surroundings. That, we need to have the perceptions of real-world data, including the real robot data or the embodiment-free data. Some of the public companies, they're pretty trendy these days, as we can see the companies listed, multi-spectrum-listed companies and so on. In terms of AI glasses, it is between the embodiment and human beings. Embodiment and the human. How can we use the physical AI after this technology matures, and AI glasses have become an important tool for that. For optic modules- Is solving between the cloud and edge transmission of data. Here, I would like to talk more about that. Why is data collection is now becoming more important? The logic is really similar to the automotive industry. Why the cars, the vehicles, they don't need to collect? Well, actually, they're collecting the data as well. It's just they do it in the back end. For robots and automotives or the auto vehicles, you can actually compare them. But in terms of the robots, we cannot put men in robots, but we can put people or men inside the vehicle. For instance, you're driving the vehicle, and the data's been collected by the vehicle. Later on, we just need to process it, to tag it for the big data and to train the models and so on, because we have really high-level autopilot. From L0 to L5, we can align them with the different stages of human plus robot. But we cannot just set a man inside a robot, we now have an industry of data collections and companies. Currently speaking, we can see that can probably differentiate into three different stages. One is the basic vision plus IMU or the era of standalone data capture device. Second is rapid adaption of UMI plus EAGLE solutions. Third one will be the mature stage of fully integrated multimodal data acquisition. The differences between them is the dimensions of data collection. The way of collecting it's becoming more diverse. In terms of simulation, the simulated ability of the real world is becoming more competitive. What we're seeing today, the data acquisition device have very fast growth opportunities. The data is provided by a company. As we can see, the cost of this device is pretty high. It depends on the complexity of data acquisition. Normal connection is not that expensive. You just need a normal camera. If you need more 3D remote control, remote data collections, it is going to be more costly. Something between HKD 100,000-HKD 200,000 for one unit. That is about data acquisition device, and this will probably be a continuous developing industry. The data after acquired depends on its complexity. The data is actually pretty worthy as well. From lower-tier data to higher-tier data, to only a few bucks to a few hundred bucks per hour. Especially some datas in some vertical areas, it is going to cost you more. You need all these datas to run the robot. From Sunny's perspective, why do we want to expand ourself into this industry? For all these years, for data acquisition and the visual systems of a robot is really alike. From hand tracking, head trackings, to all different sensors inside a robot. If we put it into all these hardwares, the platform technology actually is pretty similar. We have already put ourselves into X-ray industry quite a long while in terms of wearable solutions. We have now an EAGLE. This is actually an EAGLE data collection device. Second, I would like to talk about the humanoid robots. We think that it is going to be the ultimate form of physical AI, because after collecting the data, we have all these different datas for different scenarios, then humanoid robots can then be lended and commercialized. In this part, I think we have this different few stages. In Stage 1, we have the basic for industry repetitive task. In Stage 2, maybe commercial usage like retail services and so on. This is the intermediate level. In Stage 3, after it becomes an advanced intelligent, it probably is going to be really versatile and flexible to provide different services, non-repetitive services. For the data I have collected from Goldman Sachs, as you can see, in 2035, it probably will have a very, very strong growth. Maybe in 2 million unit, maybe more. For Sunny, we have really put ourselves inside this domain for quite a long time. From 2015, we started to invest in this industry. It has been more than 11 years. From the head tracking system, the localization and perception system, to the waist and chest safety perception systems to the manipulation perception systems on hand, to leg the obstacle avoidance perception systems. We are all making ourselves in these parts as well. For humanoids, robots, we do not have a really large-scale shipments, especially for last year's. We have talked about this as well. In some typical vertical industries, we have some leading samples. In AGVs, in warehouses, and so on, all these navigation obstacle avoidance modules already been placed in use in a relatively large scale. In terms of AI glasses, we think that it is going to take up swiftly, and we have already put ourselves in this industry for quite a long term as well. It probably is going to launch a new growth cycle in consumer electronics. We think that in 2035, it is going to hit 100 million. Currently, seeing this trend, VR is in a relatively stable application, like gaming, entertainment, that is a relatively stable scenario. From merging from smart glasses to AR, we can see that trend, because smart glasses is actually taking some volumes off as well. The next step will be taking our augmented reality into the smart glasses. The next step will probably have more features inside, like gestures, brainwaves and so on. In the next step, the smart glasses will be equipped with the waveguide display system. As we can see, in our own capabilities, we have been cultivating ourselves. How can we put on this glass without any feelings? It's not going to be too heavy and so on. This is what our technology's launch is on, including lightweight prisms, including the high-precision microLED packaging, the ultra-thin VID lens, and also the extreme miniaturization packaging. We can see that the market will probably grow swift. Besides the physical sensing or the physical perception and the AI glasses, in the AI hardware, we have our own portfolio as well. Including the trending intelligent imaging. We have some of our KAs in this industry, including for our microscope line. We will now upgrade this to AI plus Optics, microscopic vision agents. It's called an agent, we'll have sensing, logic, execution, and all the other domains, not just a simple operation like it before. Also for industrial visions, we have our own deployment as well. After empowered by AI, we think that it's a good news for optical industry. In the future, in these domains, we see the market size and the AI glasses in five years will see a very high-speed growth. Maybe even two to three years, we'll see that high-speed growth. That's pretty obvious to see. We can see for JDs and other companies, listed companies, they are taking their steps in as well. Also we have some Optic plus AI niche. Also for the embodied AI, it's going to rely heavily on the optics, because it's going to be vision intensive, and it's going to be a trillion-level market. Finally, I would like to say that in the past, we think that Sunny is a company making hardwares, typically. For a manufacturing industry, we're probably a leading role in that. For these years, I'm using the [Penalty products]. We're limited by the software, the algorithms. We're professional enough, but the commercialization takes longer time, because our own genes is not strong enough in that saying. After being empowered by AI, like Codex Cloud, all these tools and [tray, after being empowered by these tools, I think we have kind of compensate all these elements that we lack of before. Even we're surfacing in some domains as well. In terms of our own advantages in our optical technologies can become a strong card for us. For the growth of algorithm, it takes shorter time. If you want to have our hardware capability, for many companies, it's pretty challenging, and that lies in our gene. That's about all I'd like to share with you. Thank you. Thank you, Mr. Wang, for unveiling the unlimited potential for AI hardware. Aimed at explosive surge in demand of AI computing power, optical technology as the core perception gateway for smart terminals to sense physical world against the spectrum. What new business scenarios can we explore? Please welcome our CTO and fellow of the Canadian Academy of Engineering, Dr. Gu, for his keynote speech, Leveraging Core Optical Capability to Embrace the AI Computing Era: New Strategies, New Tracks, New Future. Ladies, gentlemen, welcome Dr. Gu. Dear investors, analysts, good afternoon. I am Gu Bo, and I am the newly elected Vice President and CTO of Sunny Optical Technology. Today, I'd like to share with you the strategic direction in the AI era and the logics behind it, as well as our mission. That is to embrace the era of AI computing power with the core optical capabilities. New strategy, new track, new future. First, why AI plus Optics? Before I talk about the strategic direction, I'll to introduce you the background of our four decades development. What we have accumulated. In 1984, we started as a township company with a loan of CNY 60,000, and eight senior middle school students have now expanded the company of a great company with high revenues per year and listed on the Hong Kong Stock Exchange. Supporting it is the end-to-end ultra precision laser manufacturing and processing capability. Last year, the company had proposed the idea of expanding from image sensing to Optics plus AI strategic direction. The logic is actually quite straightforward. That is, we have seen the exploding demand for AI computing. Optic technology is not only the core entry point for intelligent terminals, but also is helping us to collecting data, storing data, and processing data. We have seen the exploded development of AI computing power. There is a strong demand for it. The industry background is quite clear, and we have been developing from the dozen kilo, hundreds kilo to megapixels. We have three bottlenecks, the scale up, scale out, and the scale across. In the era of connectivity, the bandwidth, power consumption, transmission range, all of these physical bottlenecks had been restricting our development. When the single GPU's computing capability is not enough, we need to put together dozens of GPU and even hundreds of thousands of the GPUs. Then we have a great demand for the GPU data interchange. Therefore, we have seen the clear trend of further development of optical technologies replacing the copper physical materials. Mr. Wang also had mentioned about it as well. Optic is the core entry point for intelligent terminals to perceive the physical world, and ranging from the smart wearables, smart transportation, smart manufacturing to smart home. Everything will rely on the optical technologies. It is an inevitable path to AGI, that is towards the physical world. Over the past decade, the prosperity of AI has been built on a vast amount of text and image data in the digital world. In the next decade, AI will transcend virtual boundaries and interact deeply with the real physical environment in physical forms and have the in-depth exchanges with the physical world. In the coming decade, with the new CMOS sensors as well as Edge AI, the optical sensing plus AI will break free from the conventional restrictions of camera and image perception and the processing. Instead, we would have the machine centric reasoning about the 3D world. It is no longer about the restoration of the images. It is not allowing the human eyes to see. Instead, we are allowing the AI to see, and we do not necessarily need the images, and we need to allow the machines to understand the 3D physical world. What we need to do is to extend the human eyes in time and space, enabling machines to see visible and invisible information. Therefore, every camera will be more useful, and we need to increase the number of the cameras, and we need to switch from see clearly to understand clearly. The materials deformation and the state recognition via spectral IMU and tactile calibration would be possible. We need to transfer from the passive imaging to the active perception. The edge level reasoning and the chip will also be important. We not only have more numbers of these cameras and components, but also higher value. For us, it means three things. The first is that every terminal would not only have a one, but also maybe five or even 10 cameras. For precision, we can see clearly and then understand deeply. In terms of the edge computing, we are evolving from a passive imaging to active perception. I would like to take today's opportunity to briefly introduce you my personal background. In optical and LiDAR technology, I have 40 years of R&D experiences. The reason for me to join Sunny Optical Technology is that I have identified the strong core optical perception strengths of the company, and we also boast a very clear strategic vision. My mission is to work together with the other colleagues at Sunny Optical Technology to lead the cutting-edge technological planning and R&D execution to accelerate the strategic transformation from the image perception AI plus Optics. Next, let's talk about the core assets, that is our core competitiveness. Why we are able to win. We have mentioned that in 1984, we have evolved from a small township company in Yuyao to an over HKD 40 billion revenue global company listed on the Hong Kong Stock Exchange. What is supporting this kind of evolution is a complete end-to-end optical capabilities. From ultra-precision manufacturing with the module tolerance of 0.0 mm and even nano levels to the systematic design and development and the debugging of the systems. This is unreplicable and a big differentiation. In 2024 and 2025, our R&D expenditure had accounted for almost 8% respectively, and accumulated granted patents is close to 8,000. In terms of the market models, we insisted that 7: 1 model. That means 70% are invested in the product that will give us the return, and 20% is for the development of the shared platform technology, and 10% is for the forward and the prospective layout. This is not only down to earth and pragmatic, but also very forward-looking. It helps us to develop in a steady way, but also aim high. In terms of the market position, you are very familiar with the situation. We are number one in headset lens sets and the number one in headset camera modules. In 2025, our vehicle lens set is 34%, so we also rank number one in this track. This is not the ending point. Instead, this is a starting point for our further development and expansion into the new tracks. From an imaging perception to Optics plus AI, we had been seizing the opportunities brought about by the great demand in the AI computing era. We would leverage our existing AI core capabilities and expand it into the new business scenarios. That is the optical connectivity and optical perception. Let's start with the optical connection. This is a highly interested area in the market that I have already talked about, the market background. That is the scaling up of the computing clusters and the connectivity between the GPUs had been very important, and we need to address the limitation of the data exchangers. Previously we used the copper wires, but now with the physical restraints, we have to use alternative of the optics. This is an obvious trend, optics replacing the copper wires. We have seen the explosive development of the data interaction and the connectivity requirements. We have a bigger demand for the precision optical technologies. Optical connectivity's technological roots is not quite certain yet. One thing we are sure is that the base layer, that is the high precision optical components as well as the high precision coupling, it is always needed in every technological trajectory. In terms of the optical interconnectivity, especially the CPOs, what are the opportunities and why we are able to do it? Because the most challenging part is the collaboration and the coupling of optical paths. If there is a difference of several nanometers, it will be a fail. We have the millimeter and the nanometer level design and the yield management capability. We are able to migrate this kind of capabilities into the new scenario, that is the transmitter of the optical connectivity components. Right now, the targeted application scenario is the short range, high speed interconnectivity in the AI computing cluster, and another scenario for application is the optical sensing. That means we are upgrading into the chip level sensing. Vehicle and AI vision have a very high demand for dedicated optical chips. Another thing we need to cover is the synergy across emerging sectors, including the vehicle objects, which is about the LiDAR, heads-up display, HUD, smart lighting, just as what Mr Xie had introduced. In terms of the second part, AI glasses, just now Mr. Wang had introduced the upgrades. The shipment had exceeded 10 million, and we expected within five years it would exceed 50 million. Sunny Optical Technology, with our four decades of development, we are able to provide the full chain optical products for AI glasses and even the ODM capability, original manufacturing capability. In terms of the robotics, from the structured light to ToF to SLAM, and from mechanical arms to the dexterous hands, and to the hand-eye-brain system. We are now working on the establishment of the visual perception to the full machine, and to the co-development capabilities. In order to execute this strategy, what we need is not only technology but also talents. Therefore, this is our dual engine technology plus talent strategy. First, let's take a look at the milestones of technologies in optical interconnectivity and optical perceptions. At the very beginning, in the year of 1966, Charles Kao had proposed the Theory of Optical Fiber Communication, which won him the Nobel Prize. In 1970, Corning had verified his theory. In 2016, Intel introduced the 100G silicon photonics transceivers. This is a five decades span, year- by- year, we have multiple waves of technological evolution. Recently, NVIDIA had launched the silicon photonics switches. For the optical perception, it's the same trend, it started in the year 1666, Newton conducted prism experiments, which had became the foundation of spectral perception. Now in 2025, we have the silicon photonic integrated perception and transceiver chip. For dozens of the years, we have many generations of the development. In our research institute, we have our own two application scenarios and the road maps. In 2026, we already have a 1.6T optical module commercialization and a CPO prototype deployment. This is the first year for this roadmap. Going forward, we believe that in around 2028, maybe CPO would become a standard spec for supercomputing clusters. By 2030, we will have 6.4T-12.8T of optical modules, by then copper wire will no longer be useful, everything will be replaced by optics. By 2034, we expect that the CPO would embed the optical engines into the computer chips. Beyond 2034, we can imagine that the silicon on chips, SoC, the photonic SoC is able to integrate computing, storage, memory, and interconnectivity. It's a very bright future. It's the same for the optical perception. For us, we really need to adopt a three-tier roadmap for technology commercialization. That is, first the mass production, then R&D, then make predictions for the future. This is following the rule of technological development. This year for optical connectivity, we are being verified by the customer, by 2027, we will have a small amount of production. For optical computing, we will have a longer period of technological development. For talent, it's actually really important for a company. From our own role, from only manufacturing to R&D and full solution providers, that is, we need systematic solutions, and also we need talents in all these domains we mentioned above. For that, our strategy is really clear as well. That is, we need our very clear strategy to tell us where we go through a good platform so that people can do real things through good returns to get people, to keep people here. Also we need to attract talents from all over the world. Also we need industry education integration to cultivate interdisciplinary talents through university partnerships. My role is here to drive all these cutting-edge technology together and lend them. Next, I would like to talk about investment value and outlook, because it is a day for investors. As we can see that the AI compute demand growth is a certainty, and that opens the expansion of optical interconnections and perception market. We can see that the physical AI perception and the domains, we are trying to become a supplier to all these three domains. In terms of application layer, the volume and the quality need to improve together. It's not just about the volume of the sensors, but we need higher precisions and also the volumes, including the mobility, home, industry, and wearables. In terms of the model layer, just like Mr. Wang mentioned, it's actually a multi-model data driving our world model's evolution. There's a high possibility that our business will expand from hardware delivery to data services. In terms of the infra layer, just like the optical over copper we mentioned, that is the coupling between our optical hardwares and the optical coupling. As you can see, the application layer volume growth, the model layer data value added, and the infrastructure layer computer scaling. It forms a very closed loop. Finally, why Sunny Optical? On the left-hand side, we can see the three growth, just like our foundations you mentioned. The business leaders mentioned we have high certainties in all these foundation business. For robot AI glasses, they're going to have very swift growth. For the data business and the optical connections, that's going to be a new momentum for our future. For our own core compatibilities, we have our own experience in our optical solutions, hardware solutions. We have our own custom TKAs and the new strategies and the new tracks for the future. Just like our management mentioned, we have capital plus industry tools. What's more importantly, we have clear strategy. All these forms our own competitiveness of Sunny Optical. This is something unique in Sunny Optical. In the past, we want to shoot more clear pictures for the handset to make our vehicles see clear the roads. For the future, we want to help AI understand the world and also to make the computing capabilities being able to base down to the world. For the future 60 years, should be able to be empowered by optics. I would like to say something. I know it's a little over time. First, the past 40 years, we focused on optics, that is not a single knot, but is a coordination of a whole technology line. That is something cannot be duplicated by the newcomers. Second, Optic + AI is not changing it to a new track, but we're putting the old capabilities that we have, put that into a more valuable pool. From only sensing to computing. Third, from large-scale manufacturing, migrating to manufacturing plus system solution. AI empowerment is something that is certain, and in the optic coupling and the optic transmission has been proven by our own customers and trials. This is not just a new track, but also a fundamentally new valuation logic. Sunny Optical's core value is co-creations. Here we would like to invite everyone to communicate more. We'll have our transparent of disclosure ensure long-term value. As you can see, for the past four decades, we enabled phones and cars to see the world. For the decades ahead, we will empower AI to see the world. Thank you. Okay. Thank you, Dr. Gu, for sharing a transformative strategic vision. Next, please join me to welcome CEO, Mr. Wang Wenjie, to deliver a comprehensive summary of all preceding presentations. A big round of applause, Mr. Wang. Dear investors, new and old friends, hello, everyone. Dr. Gu Bo has just delivered his presentation as the group's first Chief Technology Officer. I would like to take this opportunity to elaborate on why we established this CTO role at this time period. Some of them may be mentioned already, but maybe I would like to repeat it again. Finally, I would like to make a clear statement. Over the past few years, we have witnessed the rise of emerging tech giants such as OpenAI and SpaceX. They share one defining trait. As you can see from day one, they zeroed in on fundamental long-term challenges, they entirely align research, insights, engineering systems, organizational capabilities, and long-term objective, forming a full closed loop that spans technological visions all the way to commercial value. These firms have offered powerful proof that the structural productivity has transformed researchers. Computing power and data are now directly form a value-generating systems. This inspires while we continue to meet and create customer demands, now we must proactively orient ourselves towards the development of needs of future society. Together, these two pillars will steer our corporate strategy and product development. That is to say our future roads or future path will not rely on direct consumer demands, but also we need to take future society development and human development into consideration. We need to combine those two things together. Guided by this conviction, we have created the group CTO position led by Dr. Gu Bo. We will collaborate with top-tier university research labs and industrial partners to forge tighter integrations between cutting-edge research, engineering powers, and customer requirements. This ensures that Sunny Optical maintains leading-edge insights and delivers robust real-world implementation aimed the AI-driven paradigm shift in optics. That is from all the way a manufacturing industry developed in Yuyao. Actually, we don't need an active mission to become our CTO in the past, but now it's not that. We need an active mission to become our CTO to lead. The way that we think changes, our own cognition actually changed. Our closed-loop strategy centers on two core pillars, both elaborated in detail by Academician Gu. One is the optical sensing as physical gateway to AI. Second is optical interconnection as the backbone of an infrastructure we just mentioned, a deep introduction was made. We can see that light serves as the critical link and enables perception of the physical world. On the other hand, it connects the computing power of the digital realm. This is the new paradigm we aim to build for the AI era. Moving forward, Sunny Optical will advance along three strategic trajectories. This is very important. This is very important for your own decisions. One, we all know, I would like to say it again. That is deepen our two core foundation business, smartphones and automotive optics. That is our two foundations, and these segments underpin our customer base, mass production expertise, and engineering capabilities. We want to put all these elements together. We want to do more. Smartphones hold structural opportunities via high-end upgrading, while automotive growth lies in intelligent mobility. We will keep advancing towards high-complexity products, high-value modules, and end-to-end system solutions. Second, we will accelerate the development of optical infrastructure for AI computing power. We will steadily industrialize our capabilities, covering precision optical components, coupling assemblies, packaging, and testing for optical interconnection. That is what we mentioned. With the optical infrastructure. Third is to empower new physical AI terminals with our optical expertise industry, including AI wearable glasses, industrial AIoT, and embodied robots are at distinct stages of evolution. Sunny Optical will expand our market and product footprint at a pace tailored to each sector, starting with our core optical components. As you can see, these three structures have different targets, they carry distinct strategy priorities, based on unifying underlying capabilities, chains found on ultra-precision machine, optical components, lenses, and modules, all the way to complete device and system-level solutions. At present, all key strategic projects are progressing smoothly as scheduled. The group maintains solid overall operational performance. As AI reshapes the structure of productivity, we will build upon this foundation, our profound forward-looking insights will set the benchmark for applied research and industrialization. Genuine customer needs will continuously guide our technological exploration. We will drive parallel advancements for our two core pillars: optical sensing and optical interconnections. That is Sunny Optical's strategic choice to rooted in optics. We grow into the AI era. Thank you all. Thank you, Mr. Wang. That concludes all the presentations in our first agenda. We trust all of you now have a fuller, clearer picture of Sunny Optical. We will take a short break and be back at 4:45 P.M. We'll start our Q&A session. Thank you. [Break] Ladies and gentlemen, please be seated. Dear guests, on-site and online, welcome back to Sunny Optical Technology 2026 Investor Day. We now officially kick off the session two, the Q&A with the management. On-site attendees who wish to ask questions, please raise your hand first. After our staff passes you the microphone, please tell us your institution and name first, and limit your questions to only one to two per round. Before we start the Q&A, I'd like to emphasize that today's discussion will focus on non-financial information, mainly covering the market opportunities and the technological trends in core optical tracks, as well as Sunny Optical's competitive strengths, innovations, and strategic layout. Let's invite our first questioner. Thank you, management. I'm Wang Xiaoqiong, [Keener], from Citibank, and I have two questions about the strategies of the new track. Just now, Mr. Wang had introduced that we're talking about the coupling and the bonding packaging capabilities. My question is that, in the handset lens set and the vehicle lens set, will you have some integrated capabilities? For example, the handset lens and the modules would be both on your radar. In optical interconnectivities, would you focus on prism and some other connectivity components? For example, some components that can be connected with the optics, the packaging capabilities of the modules. You also have the technological preparation for the module inspections and the tests. I'd like to know more about what you're going to do, to hear more details. The second question is for Dr. Gu. You talked about the future outlooks about the optical communications, you didn't talk about the 3.2T membranes, but you talked about 1.60T and 12.8T. You also mentioned that the CPO will be a standardized spec for the future, 6.4T and the 12.8T. Is it an optical engine or something else? I'd like to ask about this question for Dr. Gu. Can you shed some light on some breakthroughs in the optical development for the future maybe we didn't notice, and you can talk more about the development pathways for the 6.4T optical modules. Thank you. Well, you are still asking about the deployment or layout of the optical communication business, right? Well, you also talked about the 6.4T-1 2.8T optical modules, I will ask Dr. Gu to answer this question. For your first question, in our business expansion, we would definitely start with the core components. When we are developing those core components business, we are also working on the integration at a systematic and a theoretical level. Why we need to adopt it this way? As we all know, if you only focus on optical coupling or certain optical components, and lack of understanding for the future mega trends, then there might be some problems. You're not comprehensive, holistic, or systematic enough. For us, we start with the fundamental theories, the logics of the optical communication. On the one hand, we focus on the core components, and the other hand, focus on integration. This is a two-pronged way, going forward simultaneously. First, you will see some results of the core components, because we have every capability. It's just a migration. For the integration, it involves a lot of other factors. For example, the architecture of the communication network, the understanding across the protocols, and some test equipment. We are advancing those work in a very ordered way. Currently, we believe that it's going on very smoothly, meeting our expectations. This is my answer to the first question. The next question, over to Dr. Gu. Okay. Thank you very much for your question. In my slide, while we have the central research institute, based on a lot of the source of information, we have made such a prediction, and it's not necessarily 100% accurate. What we wanted to illustrate is that when there is a very high computing speed, especially in the short range, we need to scale up, because we have so many different GPUs all together, and it's useless if you cannot coordinate them well, even when you are computing in a very high speed. The road is just like the channel, and the vehicle is just like the chip. You need to, first of all, have the good road to allow the vehicle to drive smoothly. Currently, in terms of the cars, we don't necessarily have to use the CPO. We are just making a prediction based on existing information. Even if it is not a CPO, maybe it's a MPO, there is a high requirement for the objects. For us, the opportunity is always there. This is my answer to your question. Hello, chairman. Hello, president. Hello, management. I am from Everbright Securities. My name is Fu Tianzi, and I had been attending the Investor Day of Sunny Optical Technology for many years. We have seen a lot of the old friends of the capital markets, and have seen some new faces of the senior management. We have witnessed the development of Sunny from the consumer electronics to the top company in the vehicle lens sets and the module market. You have navigated us through multiple cycles, and now you are entering into the optical communication sector, and we have a lot of expectations. I have two questions for you. The first is that just now Dr. Gu said that in the verification of optical communication, there had been some substantial breakthroughs, but you will start the mass production in 2027. Still limited volumes. Are you very precautious or conservative, or you're just talking about the progress of one project with one customer? The second question is that we have seen some other companies quickly enter into the optical communication sector, and they may focus on some similar product ranges as well. My question is, what is your competitive moat or barrier and the long-term competitiveness in optical communication? I would like to answer your first question. Well, it's not that when you have an order backlog, you are able to deliver. Today, we talk about the year 2027 to deliver. I think it's a reasonable timeline. You know how hard to purchase the chip. Do you know how difficult it is? Well, we had just gotten started. Fortunately, we still have a lot of connectivities in the market. Because of our friends in the supply chain, we are able to get the chips. Whether we are able to deliver this year or next year or the year after, it is heavily dependent on the supply. We have Marvell and Broadcom as our friends. I think it's quite understandable for you as well, because a lot of components are in short supply. A lot of the companies couldn't produce because their vendors could not give them a lead time, specifically. It's a very special period, and I believe that by next year, we are able to gradually solve this problem. If by next year we still don't know when to deliver, I think the world becomes quite unrecognizable for all of us, and how should it be unknown to us for such a long time? We have to admit that this is the reality right now. Whether we're able to deliver this year or next year, it is still a question mark. I feel the same way like you, and I also hope that we're able to deliver this year. Still, there are a lot of restraints. We will try our best to arrange the delivery as soon as possible. About your second question, about the technological pathway, right? Well, this is a complicated issue. We believe that CPO will not be adopted so quickly, and maybe we will have LPO or NPO, which are more pragmatic at the moment. We will not discontinue our exploration and collaboration with the chip and the packaging companies. At the same time, for the modules, packaging and bonding is very important. We do have part of the capability, and we will try to do some pilot-level processing and to combine our capabilities with the need of the optical packaging capabilities. This is the long-term development. Right now, we had been conducting the R&Ds on multiple aspects. For the research institute, we will be more forward-looking and get ready for the future. Let me give you a simple example. I'm not sure whether you have heard about the optical router or not. Well, when we transmit the light, there are multiple beams of the light. This is a basic technology. Optical router is a very interesting technology, and I think it is having a lot of promising applications, and it's a very useful engineering method for optical transmission. We will do a lot of R&D on that as well. Due to some special reasons, we cannot disclose the information before the technology is more mature. Please forgive us. What I can tell you is that we do have multiple technologies under development. Hello. I am from Huatai, Huang Leping. I have two questions. One is that last year we were here, because Jason actually told us a lot of organizational changes. We used the tree map. It is called Tian Di Shu Teng for that graph. That is tree graph, I think. One is about the organizational change, what it has come to effect. How is its performance for last year? Also, you have told us the three-stage development range, mobile, automotive, optical interconnections, and AI glasses. How it is going to cope with the organizational structure is that we are going to start a new BU or branch? Thank you. Thank you, Leping, for your concerns about our organizational structure. Actually, it is. We use the sky, land, tree, that graph, to explore our organizational structure. Our molding platform, our resource platform, and all of these has been strongly constructed, and we invest a lot on all these perspectives. In that domain speaking, it is actually quite effective. I am not going to talk about the exact number, but after we have the resource platforms established, in terms of our own vendor management and optimizations with the supply chains, it is really effective. Our own equipment platform is empowering our different BUs. Actually, we are supplying them pretty strongly. For molding, we can now empower them to different BUs as well. As you can see, our overall competitiveness has been boosted. You mentioned about in the future, will there be a optic communication, optic interconnection BUs? I think it is certainly in the future, but in terms of when we will start that construction, it really depends on our own development situation. In our current structure, some of the optical path can already be covered by our current organizational structure. If we need more technological integrations, more BUs to be integrated, then the new branch will be formed. Because if we emerge new brands right now, comparing to the past, it will be easier, because we have a centralized organization that has been established, and then BUs are just like branches, and we are not that challenging in terms of resources compared to the past. By initiating new strategy, talent is the key. We are going to introduce more high-end talents, all types of talents, and also we are going to cooperate with universities, higher education organizations as well. You are probably going to ask that, so I just elaborate that. I have our second question is for Mr. Wang. In your opening remark, you mentioned three points. One is about renewing the management team, second, establishing a branch in Hong Kong, and third, global R&D network. In the past decades, we are covering Sunny Optics. We are growing internally. That is what we saw. In the future, what is your thoughts about internal growth and outreaching growth? How do you balance that? Because I can see that the company is investing some investments in Hong Kong. I do not know what is your strategies on that. Thank you. In the past, in our capital markets, we do not have a lot of voice. Now we have our new strategy, is that we want to make new friends in the capital market to use our own influence to expand our own friend circle. That is part of our growth. Thank you. Thank you, management. I am [Xia Jun]. I have two questions for the management. First is Academician Gu. You mentioned that we can actually have landed one generation's mass production, one generation and pre-research one generation. We talk about optical perceptions, optical storage, and so on. We have different products in there. Are there any products you can share with us and their landing situations and the pace of it? That's the first question for Academician Gu. Second question I would like to direct to Mr. Wang. You mentioned our data business. That is our data collection equipment. According to your words, that collecting in one multi-dimensions and these different scenarios, these different types of products, what's our layout today? What kind of portfolios do we have now? In the future, what's our commercialization path to these products and also mass productions? What's it going to be like? What's the pace of it? That's my two questions. Thank you. Let me answer the data collection. One, in terms of from the hardware perspective, we all know that Sunny's really good at the hardwares, right? In terms of our systematic capabilities, we're quite good at that part. In our team in Hangzhou, we have 11 years of investments. In terms of hardware, in terms of these products, I think we can complete the task easily. In terms of single collections, it's quite easy. You can just tape your phone on your head and you can do that job as well. If you want to do a UMI plus EAGLE, that the format of the data, what type of content of the data do you need? We need to have a very deep define or clear definition in terms of hardware. It's not just a simple hardware. We are making collaborations with a few data collection companies, making discussions with them and cooperations with them. Another thing is that from Sunny's perspective, because ourself, Ningbo, is a city famous for manufacturing industry. Nowadays, we have a lot of job positions to be optimized, and cost optimizations for data collection positions. We ourself is a large data generation factory. We have cooperations with other manufacturing industries in Ningbo as well. We're talking with them to how do we collect the data? We have got two path. One is it will all be completed by Sunny. That's a way. The second way is to have cooperations with our external players. We're taking considerations. That echoes what Academician Gu mentioned, that from hardware collections to data processing. We're probably going to do it together, both data itself and the hardware will develop together. In terms of hardware, with top KAs, we're talking to them, pure hardware. With data companies, just like I mentioned, one is cooperation, and the second way is that we can do it independently. Both of them are possible. Thank you for your question. The way we mentioned is quite generalized. For instance, from imaging, it's just pure imaging. In the future, we need to analyze that image. For instance, we need to see its own light spectrum. We're not just detecting its position. Also we maybe need to know its UMIs and so on. The product you have right now under mass production and the next generation of the product will under R&D. If you look to the future, maybe it's about integration of chips and other things. That's all the way speaking. In terms of optical interconnections, just like we mentioned in the last question. In China, we have a lot of users. They're still under 1T. They're still in 800 gigs. As you can see, the trend, you can try to analyze the trend. The CPOs, if you're not going to use it, in the future, they probably will need to use it. LPOs and all these different solutions. That doesn't mean that you don't need to prepare the next- generation of product. You need to have things in your arsenals to keep it ready for the next- generation. For instance, in terms of the light source, people have different views, people have different technological paths, some mature, some immature. In the U.S., it's the same. No matter what, we need to find our own possibilities of Sunny. Thank you. I'll have two more question. Thank you. One is that you've mentioned the external environment is still the same. We've seen three month ago, we've seen the first quarter is actually pretty good. If we're seeing the second quarter, the change within this quarter, do you remain the same perspective towards the market, including your handset business and your automotive business? Second is that I know that I cannot mention exact numbers. I would like to ask some other issues. One is that for the growth of RMB, in terms of overseas clients, do you have more opportunities because of that influence? Is it a good effect to you? Thank you. It's about the exchange rate. One is about the data of the industry from three month ago. You probably know quite well about the data of the industry. Three months later, it's going to remain the same. Probably the handset, if we need to have another few folds of growth, we don't have that high possibility. In the beginning of the year, we thought that the price increase in memory is just temporary. Now I don't think it's temporary. It's going to be a long-term. I was actually thinking that the cellphone should have a change. Do we really need memories to have in cellphones? Can we have AI inside of the handsets? If it does, we'll have new demands. The situation will change then. Within the industry, there's a saying. From the current formation of the handsets is we've actually finished a high-speed growth period. Really, we need to have AI phones, AI handsets. I think maybe next year or the year after next year, we'll probably have this new formation of handsets being released. That requires the GSM companies and the cellphone companies or the handset companies to work together. That's not profitable enough for themselves if they work it singly. They're still holding the line because the hardwares of handsets, it's not making money. It's earning monies via apps, applications. If AI can take the profit of the applications, probably these handset companies will have different ways of different ideas, maybe. I think it's going to a parallel situation. Both app will be there, the apps will be there, the AI will be there. I think that's a higher possibility for the future. Maybe let me put this way. In the past, smartphones, the functionalities of the smartphones, we only use partially of them. That is because it's actually quite difficult or complicated to operate. Maybe for the future, it's going to become easier if that day comes. Our smartphone will then again be rising. It's two things comparing to the things we mentioned in the beginning of the year. In the beginning of the year, what we mentioned is about the memory, and it still remains the same. For the handset or the phones itself, is it going to have another new directions of development or new possibilities? I think it is. I think the possibility is there. Every time when the crisis comes, there's crisis and there's opportunities. We do think that the industry is still optimistic and with a lot of imaginations. Dear friends, dear investors or analysts, you know that we actually are acquiring many chips, no matter phones, auto vehicles, LTEs. We're increasing the procurement of chips, our overseas income is growing as well. As you can see, the exchange rate of incoming and outgoing, actually the gap is not that large, we don't have that huge influence of exchange rate. Thank you, management. I'm Andy from Morgan Stanley. My question is that I've just read the news that is Aolai, affiliated to Sunny, it just started production of its Shanghai Lingang factory. With this factory, we do have the capability of producing semiconductors. For us, when we are switching into the optical communication sectors, will it be helpful, for example, whether we're able to adopt those semiconductor equipment for the optical components and in CPO, MPO, regarding the precision of the processing will be increased. I'm wondering whether this factory will contribute to our competitive edges in the future. This is the first question. The second question is that when we're developing the potential customers, do we focus more on the domestic ones or more on overseas ones? To be more specific, in CPO sectors, we noticed that in Taiwan, China, some customers, when we are developing those technologies, they may have some advantages. When we are developing and researching those components of the CPOs, will we consider collaborating together with those Taiwan companies? For your first question about Aolai. The second question is about the customers of CPO. Well, I believe that this factory in Shanghai will definitely contribute to the processing of some special components in optical communication, because we know that the semiconductor optics, we have the micron and the nanometer processing, a lot of the components in optical communication requires the specific technologies. I definitely believe there is value here. As for in what specific product it will contribute to, I don't have the information for you right now because it's quite complicated, to be honest with you, the Sunny Aolai production line, the capacity might not be enough when we have the high demand. The technology can be shared. That is to say, the equipment we have there, the capabilities we have there will be useful for us when we run some test experiments, et cetera. As for the customers for the optical communication sectors, we will develop both the domestic and overseas customers. Taiwan is part of China, right? You can count it as part of China. We did not have a set alone plan for it. We would develop both the domestic and overseas customers, please rest assured. Given the structure of the customer base, we would definitely push both domestically and internationally, and we will not limit ourselves to certain regions. Hello, management. I am [Julia] from Dayi Investment. I have noticed that not long ago, you have invested in Aishun Optoelectronics, which specializes in the optical modules. Can you share with us the reason of making this investment? Does it mean that you will also pay more attention to the optical modules in the future? Just now, Mr. Wang also mentioned that for a lot of the sectors, the upstream material is in short supply, such as DSP. If you focus on some other modules, it's not related to DSP. I'm wondering whether these two things can be correlated together. Does it mean that you're going to pay more attention to the optical module? The second question is that, can you give us more information about the sample delivery in the second half of the year, and what will be the product involved? Also for next year, you said that you will have the small-scale mass production in next year, and what will be the products involved? Because we have such a wide range of the products. I would like to hear from you about some more details. We don't have any quantitative guide. We do not share any financial information on this event. For you, the question cannot be specifically answered. Even if I know the answer, I cannot tell you right now. We will promote the development of the core modules and the optical modules at the same time, just as I had mentioned before. The investment of the Aishun Optoelectronics Technology, well, it's just an investment, as simple as that. Whether it's a signal for us to focusing more on optical modules, that's definitely true, because we have a big investment here. Usually, the investment only accounts for a small percentage of the revenue. This one is relatively quite big investment. What we will do is to accelerate the development of optical communication. We use some capital market operations to help us to do that. Just as our Chairman had mentioned, we didn't do many of the capital market operation before. This is one of them. We will also have the integration between AI and optical communication. You may know later about more details as we have made some important investment in this aspect as well. Such as data collection and handset module manufacturers, robotics, et cetera. If they are able to contribute to the integration between AI, optical perception, and conducive for the industry development and our own business development, we may make some investment. All of these are laying solid foundations for our strategic layout going forward. Thank you, management, for giving me this opportunity to ask the question. I have three questions. The first, because Sunny Optical had evolved not only from the handset lens sets and the vehicle lens sets, but also had expanded to other sectors. For these core businesses, you are always number one. For the investors, the most important question may be, what kind of track would you like to access? To be more specific, in AI plus Optics, I'm not asking for a near-term guidance. I'm wondering in what aspects would be a potential market or what is the market potential? In my understanding, the first step is to develop some components, and the second step is to develop the second generation CPO coupling. Could you share with us more details? How large is the pie in this market, and what are you specifically going to do? This is my first question. My second question, you also mentioned that we're going to have some investment, use some capital market tools. I wonder, apart from making investment, from the operations perspective, what capabilities do you think are possible to be included through the means of M&A? In other words, what kind of capabilities do you want to acquire through M&A? The third question, it's related to the Aolai factory, and I wanted to know. It seems that there is an equity switch swap between Aolai and the Goertek. If you wanted to access the optical communication industry, Aolai is very important, but why do you want to have a swap with Goertek? Our handset and vehicle business is mostly to C- business. Now in the optical communication business, I think it's mainly about 2B customers, such as the cloud companies. When you complete such a switch, what kind of switch of capabilities would occur? Because we seldomly see companies that focus both on 2C and the 2B market. You have asked the three questions, right? Well, I'm sorry. Well, the moderator said that you should limit your questions into one or two. You have asked the three questions, so I have already forgotten your first question. Can you be more straightforward? What are your two questions? Okay, let me simplify. The first question, can you share with us how big the market is, and what are the specific areas are you going to focus on? You're talking about the planning of the optical communication, right? Okay, this is our first question. Okay. The second question is, what kind of capabilities do you want to obtain by making the investment in a capital market, for example, for the optical communication business? You may realize that you lack certain capabilities, and you can acquire those kind of capabilities through investment. Can you share with us about that as well? Okay. It's still about strategic planning. It's about resource matching. Let me try to answer your question. You talked about planning and how promising the market is, and I think all of you understand it clearly. We will definitely trust the bigger scale of the market. If it is not tens of billions of scale, we won't access it. The second thing is that I have already told you that we will focus on both the components modules and the products, and what kind of capabilities we still lack. Well, honestly, we do lack multiple capabilities, but how to fill those gaps, we're still having a discussion and consideration right now. It's a long-term thing, and the main reason is that for optical communication and optical interconnectivity, the development trajectory is of high uncertainty. I am being very frank and candid here. Maybe year- by- year, there will be very big changes. Generally speaking, using optical technologies for connectivity, and phasing out copper wires with optics, and the development of optical computing and storage will definitely be the trend. In the end, we need to fully utilize the core features of optical communication. What we lack right now, to be honest, previously we have the image perception or the geometric optics. This was our strength. Now what we lack is the physical optics, and we need to accumulate more capabilities in this aspect. This is a focus. As for what specific technologies in physical optics, it's quite complicated because it's such a big range. Centering around optical communication, we do believe that we will have a very thorough plan. The latest version of the plan will be completed by the end of October this year. This is also why we invited Mr. Gu to join us. In the past few years, the company mainly focused on the optical imaging. What we need to do now is to switch more to the optical communication and interconnectivity. The underlying logic is the same, but in terms of the application, there is some inconsistency here. I would like to mention, by the way, about the Aolai factory. Well, together with the Gu, we can enable the company to develop better, and that is the simple reason. This time, you have seen that we have respectively added another HKD 500 million as the equity, but there is no big change of the percentage of the share. This means, we are determined to have long-term development. Together with the Goertek Optical, we made the investment. It's not a simple swap, and we will not leave it alone, and we will follow up with the future development and conduct a very close cooperation with the Goertek Optical and boost the development of our ally. Well, due to the interest of the time, we have the last question. If you want to ask the question, please raise your hand. Dear managements of Sunny. I am very honored to bring up the last questions. My name is Delian. I would like to pick up the topic to ask that is in terms of handsets. Just like Mr. Jiong mentioned that the storage situation may be a long-term impact. In terms of the scale of the impact, what's it for Sunny, and where can the turning point be? In this period of time, how do you tackle that issue? In terms of for the auto vehicles. We can see that since this year to the second half of the year, maybe the growth in this market will change as well. What's your perspective towards the market, and how do you take on that situation? Thank you. Probably I'll answer the handset. In terms of the handset business, just like I mentioned last time in the roadshow, we have two KAs growing for other clients. It's not very ideal for them. We don't have a big change since our last roadshow. There was a news that is for the Largan, they don't want to manufacture the Apple's lens. The reason is not that, but our market share is growing as just like what's being seen outside. What we rely on is our clients inside China and overseas client. In this business domain, comparing to our competitors, we're doing relatively good, I think. The overall industry, it's going down. That's also fact. We don't have significant change since our roadshow, during the end of March. It's just a little bit more challenging. For the automotive industry, we can see that the selling figures of these vehicles is still there. In terms of the sensors on the auto vehicles, that's what we're majorly doing. The sensors onboard these vehicles, SUT, LiDARs, beams, and so on. These vehicle sensors, the amount of them is actually increasing, especially inside China. We are doing L2 + applications, and by the end of this year, a lot of these players will launch L3 autopilot systems. Their cameras, their LiDARs, camera modules, a lot of them needs to be upgraded. If we're talking about cameras or camera modules in L2 + for the front view, we have a few 8MP cameras, but the surroundings and the rear view is just 3MP. If you want to go to L3 level, all these will be upgraded to 8MP. The pixels is improving. For L2 +, including L3 autopilot, all these players in the market, a lot of players in this market last year. These new players, including BYD and the Geely. They're making their moves in this stage. A lot of major players inside China will be migrating themselves from L2 to L3. For overseas market, our high-level autopilot. The speed of onboarding these sensors is not as fast as the markets in China. For overseas, a lot of these car brands, L 2, L3s, they are now going into mass productions as well, especially for the European players since 2026. Although there is pressure in terms of the sales figures of the automotive vehicles, the amount of cameras or these sensors required on these vehicles is actually increasing, especially for the North American player, as you know. They have more than 20 cities approval to do their autopilot trial. L 4 levels will be adopted as well. For the North American brand, they are using 17MP cameras and a few LiDARs. We heard that 17MP has been onboarded the vehicle. The upgrade of the resolution, and also the amount has been increased. All these are value-added for these car brands. For the new energy vehicles players, AI HUD is making their moves as well. The eye beams, intelligent lightings. For the onboarding rate, it's not that high in the market. After being onboarded by the new players of the new energy car brands in China, I think this will gradually pick up or become standards in the market. The overseas players will follow up, especially for the high-end OEM players in overseas, including HUD, smart beams, and so on. These new products will give us growth as well. That will be all. All right. Due to the limitation of time, we know that there are a lot of unanswered questions, but at the banquet, we welcome our investors to have exchange with our management. That will conclude our main venue's agenda, and we sincerely thank you for your trust and support, wishing you smooth work and every success. Thank you. All on-site guests, you are invited to proceed to Area A of the conference center, and please take a seat at the table number indicated on your guest badge. The management team will join you shortly for the dinner, and we look forward to further exchanges with all of you. Thank you.