team. First, I would like to invite President Anson to explain the outlook and growth strategy of the company. All right. Thank you, Julia, and thank you to all of our investment partners and friends from the media. Good afternoon. First of all, I would like to wish you all a very happy new year. For this year of the horse, we hope you all good health, success at work, and of course, good fortune in your investments. I would also like to thank you all for your long-standing support for Lite-On. As you've seen, Lite-On's cloud business has performed extremely well, returning Lite-On to the path of growth in both revenues and profits. This year, as our customers increase their budgets and we launch more AI cloud computing products, we are very optimistic about our performance this year in the cloud business. In 2025, in response to demand from our cloud customers, we saw very rapid growth in shipments in our power management products, including the 33 kW power shelf and the BBU, our high-performance backup battery system. We also gained a U.S. cloud service provider as a customer. In response to this, we continued to expand our operational presence globally. Last year, in key regions such as Taiwan and Vietnam, we more than doubled our production capacity. This year, as our business grows, we will continue to invest more resources and funding in expanding our production capacity in Kaohsiung, in Vietnam, and in North America to satisfy the demand of our worldwide customers in AI computing. In addition to cloud, our optoelectronics and semiconductors business has seen significant growth in high-end infrared light, in the applications of sensors, industrial controls, AI power supply, energy storage, and energy generation. We have long since exceeded 50% market share in power supplies for low Earth orbit satellites, becoming a major strategic partner for our customers. To accelerate our technological development in the field of 5G+ and AI RAN, we announced last month that we would acquire U-MEDIA Communications. The integration of our products and competencies in 5G+, AI RAN, and fixed wireless access or FWA will help us complete our ecosystem from communication to computing with the goal of providing our international telecom customers with a more comprehensive product lineup. In this March at the Mobile World Congress, we will showcase our 5G and AI RAN integration and demonstrate several private 5G network applications across Europe, Taiwan, Japan, and Korea. Looking forward to the first quarter of 2026, we remain optimistic about the momentum of our core business growth, and we expect to achieve both year-over-year and quarter-over-quarter growth. With the introduction of new generation platforms by major cloud providers, this will drive upgrades to power management systems. Our new generation 110kW power shelf will enter mass production in the second quarter. In addition, the HVDC power rack, the high voltage direct current power rack, will become the next driver of our growth momentum. Our 50V DC power rack has entered mass production in the first quarter. The 800 VDC power rack is currently undergoing prototype testing. At GTC this March, we will showcase our new generation solutions for system integration in 800 VDC megawatt scale power supply racks and liquid cooling. We were also invited to give a keynote speech going in-depth on the challenges and solutions facing megawatt scale AI power supply. This demonstrates Lite-On's core competence in high-power AI infrastructure. As you can see, Lite-On is now entering our next phase of growth. We will continue to build upon the foundation of our cloud computing infrastructure to develop more key products and technologies. We will focus on medium and long-term strategic growth with the ambition of becoming the leader in AI computing solutions and achieving our goal of continued growth in both revenues and profits. As we continue in the journey of becoming a world-class sustainable business. That is my presentation. Thank you again for attending and once again, Happy New Year. Thank you, Anson, for your explanation. I would like to invite CFO K.T., who will explain the financial results of Q4 as well as 2025. Good afternoon, everyone. I'm going to present to you Lite-On's Q4 results. Lite-On's Q4 revenue was TWD 44.4 billion, GP TWD 9.6 billion with a rate of 21.7%, OP TWD 4.7 billion with a rate of 10.5%. Net profit after tax TWD 3.86 billion, EPS TWD 1.7. Overall, Q4 revenue went up 16% YOY, in which cloud and AIoT revenue grew by nearly 70% YOY. It went down 1% QoQ. Due to tight memory supply, the pull-in momentum of non-cloud sectors has slowed down. GP went up 18% YOY, and GPM went up 0.3 percentage points YOY. The reason for the QoQ decrease was, as explained in last time, in last quarter, starting from Q4, tariffs have been collected and paid on behalf of other parties. Increased GP and effective cost control led to a 33% YOY increase in OP. OPM, 10.5%, up 1.4 percentage points YOY. OPEX went up 7% YOY, in which R&D accounted for 5.3% of revenue, up 20% YOY. The proportion of cloud computing, 5G, optoelectronic, and new businesses is relatively high. Let's look at 2025 full year results. Revenue TWD 166.1 billion, GP TWD 38 billion with a rate of 22.9%, OP TWD 16.7 billion with a rate of 10.1%. Net profit after tax, TWD 15.1 billion, EPS TWD 6.64. This is a record high in recent years. In YOY terms, benefiting from growth of the three major segments and growing share of high-value businesses, GP went up 28% YOY, and GPM went up 1.3 percentage points YOY. OP went up 29% YOY, and OPM went up 0.7 percentage points YOY. This reflects the synergy of operational flexibility and resilience with high quality growth in high-end businesses. OPEX went up by 28% YOY, in which R&D accounted for 5.3% of revenue, up nearly 20% YOY as well, focusing on enhancing the value of core products and investment in new businesses. Now, let's look at revenue and profit of the three major segments in Q4. In Q4, cloud and AIoT and optoelectronics segments accounted for 63% of revenue, up 4% YOY. OP went up 33% YOY. Cloud and AIoT revenue was $21.3 billion, accounting for 48%, up 35% YOY. Thanks to shipment growth of new generation high-end cloud power products, revenue went up by nearly 70% YOY. OP $3.3 billion, up 86% QoQ. Optoelectronics revenue was $6.5 billion, accounting for 15% of revenue, down 3% YOY. This is mainly affected by the structural adjustment of the consumer electronics market. Visible light cloud computing and infrared light core applications in optoelectronic semiconductors continue to go up. OP was $500 million, up 93% YOY. ITC revenue was $16.5 billion, accounting for 37% of revenue, up 5% YOY, in which shipments of high-end IT power supplies, low Earth orbit satellites, and smart input devices grew. OP was TWD 1.6 billion, up 3% YOY. Current assets in Q4 went down by TWD 5.1 billion YOY. Current liabilities went up by TWD 1.7 billion YOY. The quick ratio and current ratio were 1.15x and 1.5x respectively, which are relatively stable. Net cash position TWD 57.9 billion, down by about TWD 10 billion YOY. The main reasons were the repurchase of TWD 2.3 billion treasury shares, the cancellation of share capital, and more importantly, capital expenditure of nearly TWD 7 billion this year. High-value businesses boost revenue and profit, achieving high-quality annual growth starting from 2021. Let's look at this. In 2025, GPM reached 22.9% and OPM was 10.1%. OP went up 29% YOY, reflecting high-quality double growth. High-value businesses, including cloud and AIoT and optoelectronic, accounted for 62% of revenue in 2025. Back in 2021, it was 51%, in which cloud and AIoT revenue reached TWD 75.1 billion, up 60% compared to 2021. The growing share of high-end businesses has led to overall profit growth. Let's look at Q4 and 2025 operation overview. In Q4, revenue, as I just presented to you a while ago, revenue in Q4 was TWD 44.4 billion, up 16% YOY, in which cloud and AIoT grew by more than 30% YOY. GP went up by 18% YOY. GPM 21.7%, up 0.4 percentage points YOY. OP went up 33% YOY. OPM 10.5%, up 1.4 percentage points YOY. This is benefiting from the growing share of high-value businesses, global optimization of operational efficiency, and also close collaboration with the supply chain. Net profit after tax TWD 3.86 billion. EPS TWD 1.7, up 27% YOY. In 2025, revenue TWD 166.1 billion, up 21% YOY. GP went up 28% YOY. GPM 22.9%, up 1.3 percentage points YOY. OP went up 29% YOY. OPM 10.1%, up 0.7 percentage points YOY. Net profit after tax TWD 15.1 billion. EPS TWD 6.64, up 27% YOY. Core businesses in 2025. Thanks to smooth shipments of new generation AI server power, cloud computing products, and power management systems, cloud and AIoT revenue grew by more than 70% YOY. Visible light, cloud computing, and infrared light core applications in optoelectronic semiconductors continue to grow. In ITC, the share of high-end products went up, and shipments of low orbit satellite power and smart input devices grew YOY. Next, I'd like to talk with you about the BOD resolution on dividend policy. This morning, the BOD just approved a cash dividend of TWD 3 per share for Q4 2025. Including the TWD 2 already paid out in the first half of 2025, the total cash dividend for 2025 reached TWD 5 per share. The dividend policy will be adjusted flexibly based on financial, business, and operation factors. This concludes my presentation to you on Q4 and 2025. Thank you. Thank you, K.T. Now is the Q&A session. We open the floor for questions, and Anson and KT will give you more explanations. Anson, KT, Julia, good afternoon. Happy New Year. I'm Sharon from Morgan Stanley. I have two questions for you. First of all, I would like to ask about the financial numbers, where we see that at the end of the last year, the inventory days went up from 58 the previous year to 69 days in 2025. Can I ask why there was this increase? Was it because of some preparation for anticipated material shortages? That's my first question. My second question is that you mentioned that last year's capital expenditure was about TWD 7 billion. What will be the budget for this year? What big-ticket items will these expenditures concentrate on? How much will production capacity go up? That's my two questions. All right. Sharon had two questions. First of all, about the increase in the number of inventory days. Well, I think you all know that the supply chain, particularly in precious metals, has seen some significant price volatility. It's not just us who want us to have the materials on hand as soon as possible. Our customers also want us to deliver our product as soon as possible. We have been doing some strategic stockpiling in anticipation of increases in material prices. Second, the fourth quarter of last year saw shortages in DRAM. On the customer end, some customers delayed their deliveries to the first quarter of this year, so that also resulted in some growth in inventory. The second question about CapEx, as you said, last year was about TWD 7 billion. This year, it would probably increase to about TWD 11 billion. This comes from some items that you know about, for example, some expansions in Vietnam and in Kaohsiung. These production investments will come online in the third and fourth quarters this year. There will be two major big-budget items this year. First of all, the second phase expansions in Kaohsiung and Vietnam, and also some minor expansions in North America. That's one big-ticket item, the production capacity expansion. The second big-ticket item is R&D investment, because in the coming two or three years, we will be developing new products that are not based on our existing products that we have at Lite-On, because it will be growing demand for higher power. We will need to establish new labs for the new power rack and SST products. There will be new labs and R&D centers coming online. R&D expenditures will be another major item for our CapEx. Good afternoon, Anson. Last time on the investors' conference, you mentioned that the 400V power rack has entered prototyping. Now, what is the progress on mass production? Also, you mentioned that in addition to one CSP customer, there may be new customers. Can I ask about the progress made in acquiring new customers? Second, regarding the cooling project, what is the progress? Because last time you mentioned that there have been prototypes delivered and mass production will begin this quarter. Is that still on schedule? The third question is, you mentioned that SSTs will play a very important role in the future for HVDC and that you've established an R&D center. What progress has been made for the SST R&D center? Okay. For the first question, as I said in my opening presentation, our 50 volt and 400 volt power racks have entered mass production in the first quarter. Of course, the precise amount produced will depend on customer demand, but I can tell you that mass production has started. Of course, currently, it's mostly provided for a single customer, but we also have been providing prototypes to other potential customers for qualifications. Will other cloud service providers end up using this? Well, I can't tell you right now, but looking at the current trends, I think that the CSPs might not be using the 50 or 500 volt solutions, because currently the trends are converging on NVIDIA's 800 VDC solution. The second question about cooling. In the first quarter, there was going to be a customer that we were going to deliver to for CDU and RDHx. At the time, we decided that this was going to be our first major cooling customer, so we were very cautious. We wanted to ensure that this product was very highly reliable. We discussed with this customer to delay the timeline slightly into the next quarter to ensure that the safety specifications and the performance can all be further optimized. The timeline was delayed by about a month. Originally, we were going to ship in the first quarter of this year, but currently we're looking at mass production in March and hopefully, delivery in the second quarter based on our customer's needs. The third question about SSTs, we have indeed established an R&D center. Unfortunately, I cannot divulge where exactly it is, but we are taking two paths forward. First of all, this R&D center of our own, which has already started operations, and second, we are identifying potential partners for collaboration externally to develop new generation SST products. I'm sure that in the very near future, we will be able to provide further updates. Thank you. Anson, K.T., Julia, good afternoon. I'm Doris from BofA. I would like to ask Anson, in your slides, you mentioned that your projections for the share of AI in your revenues will reach 30% this year. I remember that in the last investors meeting, you told us that it would be over 20%. What accounts for this difference? Was it because of optimism regarding the progress of the power shelf or optimism regarding BBUs, et cetera? Another question is, in 2025, what was the ultimate share of AI in revenues? Was it 20%? Are there any details that you can share regarding this? Yes. The projections in the last conference was that the AI share would be 15%-20%. I can tell you now that ultimately, the AI share was over 20%, not by too much over 20%. I think 20 is a good ballpark figure, but it did meet our initial projections, our initial goals. At the time, when we looked at the share of AI for 2026, we calculated it based on the situation in 2025. Our projection at the time was about 25%. Now, we believe that it could reach 30%. Actually, looking at it now, personally, I'm even more optimistic. I think the share has a chance to go even higher than 30%. Of course, there would be some differences in the product mix. In addition to the PSU, the power shelf, this year, we will be part of NVIDIA's next generation solution. The 110 kV power shelf will enter mass production, and the higher voltage power rack would also enter mass production. These are all higher priced products than our original 33 kV power product. This will drive revenue growth. Of course, these were not there in 2025, there will be some changes in the product mix. Also, there will be the addition of the liquid cooling products. That's also part of the AI product mix. Also, of course, Lite-On, in addition to power supply products, we also have optoelectronic products and network products. In the future, these will also be important products for AI applications. They are connected to AI as well. If we count those as well, I think 30% would be a conservative estimate. It could be even higher. In the past, we talked about how a lot of Lite-On's revenue came from PCs, so we really focused on the PC share of our revenue. In the future, I think we'll be focusing on the AI share. In the past, we were looking to lower our PC share, but now we're looking to increase our AI share. These are the shifts we've been undergoing, and I'm sure that in the coming years, AI could be account for over half of our revenue. I think that would happen in the future. I hope that answers your question. As I just mentioned, we still focus on power supply. This is our most important product. As for our other products, I believe, such as our AI RAN, and also, VRU products used in it, and also, our cooperation with U-MEDIA, which, will be used in AI RAN in the future. These products in the future will be counted as part of the AI percentage. Hello, Anson. I want to ask a follow-up question, which is about this year's operational growth potential. Will the shortage of DRAM affect IT and consumer products? AI is growing rapidly, so with this kind of, trade-off, how are our GP and OPM be affected this year? Could you give us a broad picture? Thank you for giving me this opportunity to explain this further. This year, there are many challenges, but I believe that there are even more opportunities. As you mentioned, the challenges this year will be ITC products because of the shortage of DRAM. Many capacity has been shifted to AI, so ITC cell phones and game consoles will have limited capacity. Prices will go up, and production volume will go down as a result. In our internal estimation, we believe that there will be some decline. In terms of ITC products, we believe that the decline will be 6%-8% for cell phones. The decline will be 4%-5%. As for game consoles, roughly 2%-3%, roughly at least. That's the decline. Where are the opportunities? We believe that in addition to ITC products, in our other business segments, people are aware that these mature products in the future will not be able to continue to grow in the future because the percentages and our market shares are already very high. We are either number one or number two, so it's difficult for these to continue to grow. About three to four years ago, we started to deploy in non-PC markets, for example, industrial control and standard power supply markets, and also AI edge market. About three years ago, we started to deploy in these areas, and this year, our percentages will go up. Despite the challenges, we believe that our revenue in these areas will continue to grow. Well, but they won't grow as much as the AI area, but they will still grow, in our opinion. As for opportunities, especially in AI, last year, the percentage was 20%. We are confident that this year it will achieve 25% or even 30% this year. Through such a product mix and ASP increase, the full year revenue, we are very optimistic about our revenue growth this year. Because of this product mix in these high-end sectors, in our GP and OP this year will have a chance to perform better than last year. This is something that we are very sure about. I want to have another follow-up question. PMIC prices are also going up, and there is a huge shortage of materials. How will you be affected? In the history of our company, faced with supply chain ups and downs, well, this is not the first time that prices go up. Such a thing has happened many times in history. Our upstream customers and downstream suppliers, we know how to cooperate with each other very well faced with price volatilities. We will continue to cooperate with each other and make efforts jointly in order to enhance our competitiveness. We want to share the cost burden rather than having it concentrated. We continue to enhance our competitiveness this way. We don't have to be too worried about this. In the past, internally, we have established experience and SOPs, so I believe that this won't impact our operation that much. Anson, good afternoon. I have a question about BBUs. Last year, you mentioned that this year's production has all been booked and that 2026 will do at least as well as 2025. My question is, looking at now, are there any changes in terms of production capacity, in terms of products, or any customer feedback? Well, I think looking at the current BBU demand, it still exceeds supply, and that's because the new production capacity that came online over the past year is still insufficient to meet customer demand. Over the past year, we've actually nearly doubled our capacity in Kaohsiung. Looking at the situation this year, even after doubling the capacity, we're only just able to meet customer demand. There is no margin whatsoever. We will be continuing to add capacity. That's my first point regarding BBUs. There are no unexpected developments in terms of demand compared to 2025. It's all been following our own projections. Second, in addition to our existing BBUs, we will have a new BBU product for 800 volts. These will need new materials, new electromagnetic cores, et cetera. There will also need to be unique designs produced for this BBU for 800 volts. That's a difference from last year. Good afternoon. I would like to ask a follow-up question regarding BBUs, because Anson, you mentioned a new specification for 800 volts. In this new design, it's probably developed with external partners as well. Are you continuing to use your existing partners, or will there be new sourcing strategies? Our partners have their competencies in this field, but there are some new suppliers with new technologies as well. In addition to working with our existing partners, we will not rule out working with new suppliers. They're not really new suppliers because they are very mature leading players in the industry already. We will start new partnerships with these suppliers. To answer your question, in addition to existing suppliers, we will be working with new suppliers to develop these new higher voltage, 800V products. Let's open the floor to one more question. Good afternoon. I have two minor questions for you. First of all, I would like to ask about the gross margin for the fourth quarter. Compared to the third quarter, there was a significant decrease. What were the factors behind this decline? What are the short-term factors that could be recovered from in the coming quarters, and which are longer-term factors that might affect future projections? My second question is about the 800 VDC solution that will be showcased in March. Currently, what has the progress been in terms of client qualification? When will the small batch shipments begin, and when will the mass shipments begin? Our CFO already answered your first question in his presentation. We had some differences in gross profit between the third and fourth quarter, and I've actually discussed it in the last investor's conference. It was because in the third quarter of last year, we were paying the tariffs for our customers, but the tariff payments were reflected in the top line, in the revenues. That resulted in an illusory growth in revenue and an illusory growth in profits because the tariffs went into the top line, but the costs didn't change. We thought that this was not a faithful reflection of our business performance. In the fourth quarter, we discussed with our customers to adjust how the tariff payments were reflected. We were paying on behalf of the customers and then charging our customers after that. It would not be reflected in the revenue. If you compare the profit margin from the third to fourth quarters last year, the third quarter was about 25%, and then removing the tariff issue, it was about 23%, which is about in line with our fourth quarter margin. Of course, the DRAM shortage also resulted in lower shipments and higher inventory for some of our high power products. Of course, that factor would only affect the first quarter, and in the future, it would depend on the DRAM shortage, but it's not a reflection of the overall market. As for your second question, I think we should draw a distinction between HVDC and the 800 VDC. The HVDC, the 50V DC, the 400V DC products, those are already in mass production, and the exact shipments would depend on our customer demand, of course. As for the 800 VDC, which I talked about, it is currently in prototype testing, and we anticipate that the testing will completed in the third quarter, and we will have some small batch shipments in the fourth quarter. Large scale mass shipments will begin in the first quarter of next year. Yes, it affected by about 1 percentage point. Okay. Finally, some good news to share with all of you. Lite-On's official LINE account is now live. We invite everyone to pick up your phone, scan the QR code on the screen, join our official LINE account, and get the latest information from Lite-On. The content covers important announcements, updates, ESG achievements, our self-produced bilingual program, Lite-On Trend, highlights from international exhibitions, and award information. Feel free to scan the QR code to join us so that you can stay updated. Thank you. All right. This concludes our conference today. All the information can be found on our official website. Thank you for your participation. We wish you a good day. Thank you.