Welcome everyone to Parade Technologies Limited 2026 second quarter webcast investor conference. Investor relations of Parade Technologies, Mr. Yo-Ming Chang, will present 2026 second quarter financial results first. During the presentation, all lines will be placed on mute to prevent background noise. After the presentation, there will be a question and answer session in English by CEO, Dr. Jack Zhao, and Vice President of Finance, Mr. Kuowei Wu. We also will remain last 15 minutes for the attendees who would like to ask questions in Chinese. Please follow the instructions given at the time if you would like to ask the question. [Non-English content]. Now I would like to introduce Mr. Yo-Ming Chang, investor relations of Parade Technologies. Mr. Chang, please begin. [Non-English content]. Thanks, Jason. Welcome everyone to Parade Technologies 2026 Q2 webcast investor conference. Parade Technologies second quarter 2026 consolidated revenue was $134.48 million, and the net income was $18.78 million. Its both basic and fully diluted after-tax earnings per share were $0.24 and $0.24 respectively. These results compared to consolidated revenue $133.50 million and the net income of $22.79 million, or $0.29 and $0.29 per basic and fully diluted share in a year-ago quarter. In U.S. dollars, the second quarter revenue increased 6.61% sequentially and was up 0.73% year-over-year. The gross profit in the second quarter of 2026 was $54.06 million, an increase of 6.35% from the previous quarter, a decrease of 6.06% compared to the same quarter of last year. Based on the current business outlook, Parade is providing the following guidance for the third quarter of 2026. Revenue is between $139 million-$153 million. Gross margin is between 40%-44%. Operating expense is between $33 million-$36 million. [Non-English content]. It is my presentation for the 2026 Q2 financial results. Now, I transfer to CEO, Dr. Zhao, to answer your questions. Jason, in the beginning. Yes. Thank you, Yo- Ming. Ladies and gentlemen, we will now begin the English question and answer session. If you wish to ask the question, please press star key and number one on your telephone keypad and you will enter the queue. After you are announced, please ask your question. Should you wish to cancel your question, you may press star key and number two. Thank you. Now please press star one on your keypad if you would like to ask the question. Thank you. Our first question will be coming from Jerry Su of UBS. Go ahead please, Jerry. Thank you. Thank you for taking my question. Just first question, probably just a little bit of housekeeping. Can you give us a breakdown for the second quarter revenue mix? Okay. Thank you for everyone. For the second quarter, the DP [audio distortion]. Ladies and gentlemen— Hello? Hello. Yes. Yeah, yeah, yeah. Okay. I'm not sure. Jerry, you heard my answer? No, I didn't. I think I didn't hear anything. Yeah. Lot of noise. Okay. The DP was 30%. PS, our high speed, is about 45%. TC, our source driver, slightly above 10%. TT, now include our TTED device, is slightly below 15%. Okay, got it. Thank you. Based on your third quarter guidance, it seems like that you're suggesting a little bit stronger than expected demand for PC and notebook market. I think that is a little bit different from the general industry's view. Can you give us a little bit color on the PC notebook demand outlook, or maybe elaborate a little bit about the revenue outlook for each of the categories into the third quarter? Thank you. In the last conference call, I mentioned that our TTED device, which is integrated, the Tcon source driver touch together for notebook panel, will have a good growth in the Q2. It did happen, and it actually grows faster than what I had expected. You see that our TT, which includes that device, now close to 15%. We had a thought it's over 10%, now it's about close to 15%. That's definitely reflect we into the new market, where we win a lot of models and ship quite a lot of device. That's really the story for Q2, and in the TT segment, it is stronger than what we had planned. Into the third quarter, should we still think that TT is going to be the main driver or DP or high-speed are also going to see special growth? Into the Q3, the Q3 is a traditional notebook PC hot season, and that will continue this year has the similar seasonality, even though customer worry about the memory price increase, so on and so forth. In our specific case, our TT, which include our the TTED device, will continue to grow in the Q3, the percentage also will increase. That's more specific SIM, which the new device take a lot of over a lot of the notebook panel segment. This we're happy to see because simply, yeah, notebook panel is just one device, and for Parade itself, we increase the silicon content now has touch integrated to our device, and not only supported the normal touch and also supported the active stylus. The interesting thing is, the notebook panel with touch function, attach rate increase in the quarter by quarter in the general market. We enjoy those kind of trend with our device, which is quite complicated and without competition so far. Okay. Thank you. Very clear. A follow-up question on this year's outlook. I think previously, Jack or Yo-Ming has expecting that this year revenue probably can see, I do not know, mid single- digit or 10% growth year-over-year. I am just wondering now you have provided the quarter guidance, and 4Q probably, you should have some idea. How should we think about the revenue outlook for this year based on the current forecast? Yeah. We had a more positive view in terms of our business. That was early this year. At that time, the DRAM, the price impact is not that significant. We saw a lot of our customer being impacted because the high price of the DRAM and the storage, which really suppress the demand side. You particularly see the gaming side of notebook demand decrease a lot. We were looking forward to see. So far the Q3, the trend is good, but we are waiting for, see the Q4, whether we can make a few percentage increase versus last year. Definitely that is what we hope. That is continue the Q3 and Q4. The Q4 so far, the PO receiving looks good, but we do not want to commit too early. Okay. Got it. Fair enough. Last question, I will go back to queue. Just for the ASIC-like business, can you provide some update, particularly, maybe a little bit more detail on timeline or when will you start tape-out in mass production? I think the customer you are targeting on probably has its own schedule, for the second half 2027 launch. I am just wondering, based on your current timeline, are you confident that you can meet your customers' parallel schedule? How should we think about the revenue contribution as well as gross margin? Thank you. I think we are progress well. It is a complicated device, and we have a two device there. It is pretty complicated device and a big device. The project, we put a lot of R&D resourcing to. The project progress well, we did a lot of system design, with our customer together to early look at the performance and the software capability and the system level testing. Even on the FPGA side, we are already doing this. We are looking forward on time to tape out our chip. As we shared, sometime later of this quarter, the first chip will tape out. Second chip will be quickly tape out as well. We think those chips will contribute to our revenue in the later of 2027 as we shared last quarter conference call. During the quarter, we have a more talk, engage with executive of our customers. I think the confidence level is getting higher. By working with the engineering team of our customer and, yeah. Hopefully the thing, once we tape out, we will have a more clear picture, and especially when chip come back how healthy the chip is. Those are what we're certainly looking forward. All right. Okay. Thank you. Thank you, Jack and Yo. Thank you. Next one, Tiffany Yeh, Morgan Stanley. Go ahead, please. Thanks, Jack. Thank you for taking my question. My first question, just want to ask about your tech quarter margin. I think it came a little bit shy of street estimates. May I ask the impact behind this? Is it because of the material price hike or impact more on the foundry side? Yeah and I have follow up. Thank you. Thank you very much for the notice on those gross margin. I think as we shared the last quarter, especially the OSAT price increase in the quarter suddenly. The OSAT, the second side, it's not only increased once. It has been increased multiple times. As we are addressing the cost increase and by two direction. One is to share, communicate with our customers, and like to have a share some cost increase with our customers to reflect the product price increase. As for ourself, we have to looking for more cost-efficient chip, the OSAT price, to improve our gross margin. We work on the both side very hard, try to recover our gross margin, as we have been doing. Hopefully, the next few quarters, we can see the improvement. Got it. On the pricing adjustment side, when do you expect this to take effect? Next year, or maybe in fourth quarter? Thank you. Some of our parts, we're segment by segment to do it. Some of parts already in place, price already reflect in place. Some of them are in this quarter, we're talking to customer. It's segment by segment going and selective product to adjusting. Certainly, your OEM customer will not be happy, but you have a good communication with them to reflect what current situation. I think they all understand. It's a negotiation, but most of them willing to take some of price adjustment, yes. Got it. May I ask the magnitude of this price hike? Is it 10%, 20%, or even higher? As you mentioned, we see several times of price hike from our suppliers, YTD. Yeah. Yeah. The OSAT price increase, it's like what you said, and it's widely reported and published by the media on the cost increase. For us, we are working with our customer to reflect those increase. Yeah, different product has a different increase, but has been executed, and some of them are quite meaningful to reflect our cost increase. Got it. One more follow-up from me. Do you expect second quarter gross margin to be the trough of the year? Only what I would say, yeah, hopefully it is kind of bottomed there. Well, that certainly is our hope will move up as we go. At the beginning of quarter, we didn't realize that magnitude change is so big. As now we know, we are doing multiple steps to address these issues. Got it, got it. My second question, just want to follow up on the Standard-plus customers overall that their demand is quite strong. Do you have a preliminary outlook for their demand into 2027? Thank you. I think they're pretty healthy. Right? The demand remain pretty good, I would think. Based on the forecast they give us, so-called the long-term forecast, I think 2027 will be the reasonable year. We all develop multiple chip with them. Some of them will start the production in later of 2027 or 2028. They will make a contribution to us. For them, I think the business is a lot more predictable compared with others, because the impact to them seems, the DRAM impact to them seems not as big as the other customer. Got it. My final question, sorry. What's your view on the PC shipment into 2027? The overall market. Yeah. This is a good question, I had a chat with the OEM industry leaders, I think that 2026 has been caused by the DRAM price increase and suppressed the demand side. AI still remains the big thing for the high tech or the company. AI demands more computing power, notebook PC remains as a fundamental need for productivity and for our daily life. With the sub view of 2026 shipment, I think people all know it's a big drop. We think that 2027 will have a hope to be better than 2026, to grow. Fundamentally, it's a demand of better notebook, those AI edge calculation might need a more powerful one there. Hopefully, another segment might be interested, just like you have a edge of small computing the box. It's getting popular as well. Those are the things added together, and we keep our view positive for 2027. Got it. Thank you, Jack. Thank you, Yo-Ming, and congrats on the great third quarter revenue guidance. Thank you. Next question, Carol Wong, HSBC. Go ahead, please. Hi, thank you for taking my question. I have a few follow-ups. Just one for the ASIC-like. Could you share some details on the potential ASIC and the margin? Is that the ASIC-like products, the ASIC margin probably better than the current product line? I think the single device price in Parade's portfolio is high, right? We're talking about $10, $20, those kinds of range. Gross margin, we are in check with our corporate gross margin. However, those are the assumption, the current yield thing. If yield have improvement, we might have to do better. That's available there. If yield not doing as good as we calculated, yield is not as good as the corporate margin, but should be in the neighborhood of our corporate margin. That's what I can share with you. Okay. Thank you. Yeah. Sorry, I just joined a little bit late, so it might be already discussed, but just want to know more about how fast the ASIC-like contribution or tape-out would be. No, we said that it will be the latter of 2027 on the revenue contribution side. The project is moving forward and doing well. We are excited, really, as we had the working together with our customer system together with our emulation system, their emulation system, and doing the software adjustment. To make sure once chip come back and everything's ready. That's a big chip. We have two chips to go. We're all excited why we work very hard. Got it. Pretty clear. I also have a follow-up on the data center related. Previously, you've been discussing about the PCIe or ACC cable. Could you give us some updates on any changes, any updates, any design wins in the data center related product line? During the Q2, we have been using our acquisition, the asset, which is, we have the silicon germanium cable driver, for 112 Gb and 224 Gb. The particular 224 Gb, our customer made a 100 Gb per second Ethernet cable. As a 1.6T Ethernet cable. We're using that cable, participate PlugFest in New Hampshire, in U.S., New Hampshire. We sent a big team over there doing the system level testing. The result looks pretty good, we're surprised. That's the first time we participated, the device looks good. Those for the ACC cable for data center on those Ethernet, we're talking about 3, 4, 5 m, those cables. On the PCIe Gen 6 side, those, the cable using what was pre-developed in the PCIe solution. Those cables are working with the server guys for the data center, one of our leading server guy needs those cables, we're working pretty close. Those are a little bit shorter cable, still, they will need those cable for the system performance. Those are the two fronts. We work those case, I will share with you guys. The ACC cable on the data center looks pretty promising because the performance are decent, a lot of cable already been built. Hopefully, we'll continue to see whether those will convert to our revenue. Okay. Thank you. My last question will be about the product exchanges. I saw there was an increase in the integrated system solution revenue contribution in the second quarter this year. Just wondering, how about the product in the second half? Are you still seeing the rising contribution of faster growth from the integrated display solution over high speed in second half? How would that impact the margin trending by the end of the year? Thank you. You expect to see our, the integrated solution will continue to grow, at least the second half and 2027, because we have multiple new devices will come out to address the more broader market. We're doing very well on those. Those revenue unit shipment will grow pretty quickly. We're happy on this because we invest many years. In terms of gross margin on this segment, and you also will expect we're getting close to our corporate margin. As device getting mature and the yield getting better. The PS remains our big focus. We continuously see our high-speed PS product line will grow, but percentage-wise, will be different because this, the embedded, the integrated solution, the dollar turn big and the unit shipment getting bigger, and the percentage will grow very quickly. It looks like your PS got surprised. It's really the other side may increase quickly. Okay, understood. That's pretty clear. Yeah. Thank you for taking my question. I'll go back to queue. Thank you. Thank you. Next one, Mike Yang, Bank of America. Go ahead, please. Hello. Hello, Jack. Can you hear me? Yes, yes. Thank you. Okay. Yeah, thank you, Jack, and thank you for taking my question. My first question is kind of a follow-up for the fourth quarter outlook. Previously, you mentioned that hopefully, fourth quarter revenue should still grow by several percentage points on a year-on-year basis. I'm just wondering, does that follow the seasonality, or is there any other factors, including the memory price, to have some impact on your fourth quarter outlook so far? Thank you. I think it will follow largely the seasonality, particularly, we have a TTED device, which win a lot of model, will continue shipping units, and that's additional. Notebook business has been suppressed for a couple of quarters. Hopefully, Q4 will have some improvement. We had experienced not only the memory price increase, we had a shortage of CPU, if you remember, in the Q2 and early Q1. By now, I think CPU for AMD, for Intel, you don't hear anymore. Besides the NVIDIA, the Qualcomm all join to that segment. We keep our view positive and hope and, yeah, later Q3, you would NVIDIA, the system will start the shipping, right? A lot of people pin a lot of hope on this. Let's see how that goes. Okay. Thank you, Jack. That's very clear. My second question is regarding to the foundry price hike. Heading into second half this year and even 2027, is that the case that you are seeing so far? Previously, we were suffering from the offset, the package price, or cost. Now, looking ahead, to your gross margin outlook and also maybe the guidance, does this kind of foundry price hike already being reflected? Thank you. Foundry, we're talking about 2027 will increase the price, right? Certainly, so far, the guidance will have not been included, and we heard that story as well. The foundry might increase the price. Yeah, it's a tough environment. We have to deal with it. I think we are moving quickly to address the back end side of price increase. Yeah, let's see how that play out. Our OEM customer also hear the story, also hear the cost increase, and they may have to go out just what Apple announced, they will have to increase the system price, right? Let's see how that play out. For the consumer PC notebook business in 2026, might be 2027, it's become quite challenging year, and because it's squeezed by the AI applications. Got it. That's very helpful. Thank you, Jack, and I'll go back to the queue. Thank you. Thank you. Next one, Vivian Yang, Nomura. Go ahead, please. Thank you for taking my question. Hi, Jack and Yo-Ming. Just a follow-up on the TTED business. I think you mentioned that TTED demand looks sustainable into fourth quarter and next year as well. Do you have a rough estimate on its penetration rate, or do you have any target? Yeah. We have some model there, it can be quite exciting. It's a complicated model. You might want to talk to Yo-Ming to get those models. So far, under this year, we had expected above 5 million shipments, but now it's much higher than above 5 million units. It's better than what we had expected. Fundamentally, the device has provided a lot of value to the customer. We did not expect the adoption so quick. However, we also have a new device to address even broader market, which the previous LTPS type of panel, now we address the oxide type of panel, which the capacity is a lot more bigger, also went to more massive the notebook segment, where also we have a device come out, the TTED to address the high end with the much high resolution, 120 Hz, the refresh rate, the touch, and active stylus. It's pretty powerful, the device. We work with Wacom. I think Wacom also surprised, the single device can do this. You look at the touch. The Japanese Wacom is pretty standard, right? That's our device integration solution. It's so good. They're also surprised. Can we have a rough idea about how many TTED chips are used in one single notebook? Each notebook panel is just one, right? Whatever the number we ship is how many notebook will use it. It's quite a big number, it will getting much bigger. Thank you. I think just a follow-up on previous question on your standard-plus customer. I think we expect a smaller DRAM impact to the customer. Are we seeing they are having some pricing pressure into their suppliers to maybe some pressure from memory? I think they are openly media discussion. They are going to search for the source and the new memory source. I think they will. We see the other OEM already start to use in China, the DRAM, for the outside the U.S., the market. I think they got a choke for the DRAM price. Certainly, they have to defend, to find the memory to use. I think they will address that and hopefully they can come through. I know that Micron is arguing with, saying you cannot, but that's what I think. I saw the other OEM already start to use. Thank you. My last question is regarding your third quarter guidance, because, as in previous questions, I think you mentioned that we are trying to share some cost with customer as well. In terms of third quarter guidance, we know roughly how much would it come from unit and how much comes from ASP? That's pretty difficult to provide analysis, because ASP side will not increase every device as we shared. We increase the product selectively. It's pretty difficult. We also move some of manufacturing side to other place to keep price in check. Just basically try to dodge along the cost increase. Overall, as we paid a lot of attention, put effort there, I would think in the Q3, the margin will slightly improve. Okay. Thank you. Very clear. I will go back to queue. Thank you. Next one, Lucas Liu, KGI. Go ahead, please. Thanks for taking my question. Jack and Yo, can you hear me? Yes. Okay. Just a follow-up from the TTED shipments here. You said that your TTED shipment could be more than 5 million units this year, and— So the original plan is like 5— Yeah. —million. This is— Yeah, now it's more than this number, right? Yeah. I think that's around 3%-5% of all notebooks per year, or roughly maybe 15% of the total touch notebooks. You previously, in the first quarter earnings call, you had said you have 10% share. What's the difference behind that 10% of market share, and what's your view about that market share growth in the future? I think 10% should be not that difficult to go to, and you mean 10% of total notebook, right? There are two reasons. One is the attach rate for notebook panel have a touch is increased quarter by quarter, right? That's the first thing. The another thing is that, yeah, it's really no competition in there. I think to reach the 11% is quite reachable. I think that's the good target for us to cracking, and I hope will be more. That's the goal. Sure. Very clear. My follow-up question is regarding to the competition in the TTED market. Can you share more on your view on the competition, like your competitors such as Novatek or Himax? So far, I don't see they're doing that. We don't see the competition. That device is so complicated. Yeah, so far we have not seen any of this. Especially when you support a stylus, that's really complicated. Since you think the design is more complicated, can you share the incremental ASP between TTED and just a single Tcon between the ASP difference? The TTED has a different category, which will integrate a PSR, which has a frame buffer there or without, right? Also different resolution and things, or support the LTPS or support the [Oxide TFT] type of panels. Price, if you look at it, the whole set of solution will be compatible as you do the discrete. Okay? The set price. We are only one device, you need two source driver, three source driver, plus one Tcon, plus one or two touch chip. Right? We are just single device there, and to add that together, right? Those are the equation there. From customer may see a little bit the price break is from you don't need a Tcon board anymore. The manufacturing is a lot more simpler. More important, you achieve your industry desire that the border is very narrow and the panel is much thinner, because when you do the Tcon board, you have to flip your Tcon board on the back side of the panel. Those are the things add a lot of value to customer. Got it. That is very clear, very helpful. My next question is on the data center side. I assume that there's around $10 million of data center related revenue in 2025. What did the first half in 2026 actually contributed from data center revenue and your future target in 2027? Yeah. We continue to ship our PCIe Gen 5 retimer, even PCIe Gen 4 retimer, we are continuing to ship for the data center on the storage side. Those are stable and the single device price is high. We also ship on the motherboard, on the system side for the redriver, for the storage, and those are the into. I think the 2026 so far, the half year, did not grow that much, but it's equivalent as the 2025. Those are without considering for the cables. Those are the existing, what we have done previously for the design. Got it. For PCIe Gen 6, like active cables, and assume that a 2-3 m, 224 Gb ACC, how many Parade's IC are used, and maybe what's the content? It depend. Some of them need 4 [m], some of them need 2 [m]. It depend on the different cable and different solutions. It's a wide range, right? Yeah. It's a quite wide range. Those single device prices are high as well. Got it. My last question is regarding to the fourth quarter 2026 seasonality. I think your third quarter midpoint is around $ 146 million, and it's flattish against same quarter last year. I think in the first quarter, management has think of maybe +5% year-over-year growth this year. That means, you have to do maybe over $150 million in fourth quarter, which is up sequentially. How do you think about the fourth quarter at this moment? I think you have to remember that the unit shipment of notebook PC, or we address market. Unit shipment on 2026 versus 2025, widely people believe had a 10% reduction, right? If we remain the revenue similar, which equivalent like, we grew about 10% there. If the unit price will be the same as of 2025. On the 2026, on the Q4, as the previous, the people asked and also I shared, I think that we will have a normal seasonality. For us, more specific is TTED will increase. We certainly hope the unit wise for the notebook PC shipment will increase because 2026 we ran into too many things. It was DRAM, the price increase, and then the CPU shortage. Whatever the DRAM price increase, we hope it's already settled. We hope those CPU no longer be shortage. You will have a new CPU joining, the NVIDIA's were joining on the Q3 and certainly Q4. We have two device there or multiple device there associated with that system, those will help. Got it. That's all of my question. I'll be back to the queue. Thanks again for taking my question. Sure. Thank you. Next one, Tiffany Yeh, Morgan Stanley. Go ahead, please. Again. I'd like to follow up on the copper cable front. I would like to ask, like, what's the current target revenue, contribution magnitude, and also the timeline for this product line? Yeah, that's a good question. Right now, we work with cable guy very closely, so far, cable guy has not give us the clear MP time, we push very hard doing the system test and those kind of thing. Hopefully, we can later on, we'll share with you exactly the revenue guidance and those kind of things. Got it. On this product, I would like to ask, what do you think our advantages lie in, compared with our competitors? Our cable guys actually told us our solutions are pretty decent. I believe they already look at other people's, our competitor's solutions. We know PCIe better, we know those competitor better. I think the PCIe would definitely take a lead. On the ACC side, since that was acquisition from Spectra7 last year, we are still getting familiar with those, the ACC cable, the competition, competitor. So far, our key customer, the cable guy, probably you guys all know who are the major player, who using our solution to make cables. The feedback to us is pretty good. We also participate, as I said, to the New Hampshire, the PlugFest, for two weeks there. Result being shared by the committee, the result was good. Got it. Very clear. My second question is regarding the auto front. I would like to ask, what's the current revenue exposure to auto for Parade? It seems that auto market has some recovery, or you can say inventory restocking. Are you monitoring that right now, and what's the outlook for the coming quarters? Thank you. Yeah. Thank you for that question. We are a little bit enjoy the auto cruise. I think it's not like, what do you say, the restocking. It's because our solution are associated with newer, the EV cars, right? Whether they're in the U.S., whether in the China, because we have the number one U.S. EV car as our customer, so as we have a number one EV car vendor in China. Both, they are increased, because around the oil price went up a lot, then suddenly EV car ship a lot. We even had experienced some shortage there. Yeah, EV in the Q3 or Q4, the revenue associated with this was slightly increased, just simply because the end customers start to buy more of the EV cars. That's good, we have our DP hub designed to the EVs, they will start to MP in the Q4 as well. We are shipping quite our high speed, the so-called auto USB box solution, we also quite ship some of this. Yeah, it looks encouraging, I would think. Especially our converter and DP hub side, that looks good. Got it. I would like to ask, what's the current Parade content per car right now? You just mentioned you will have several new products in the next few quarters, what's the expected increased content in the car in maybe next year or later this year? Thanks. Yeah. Depend on customer and how many model do they use. For the U.S. guys, I think each car might be in the neighborhood of $3 type of thing. Some of them, people using the DP hub will be more. It's above five and those kind of thing. Unfortunately, the more expensive one may not. Every car, they will use it, maybe the only high-end use it, because they have a multiple panel there. For the China side of EV guys, they deploy our solution model by model to deploy. Now you're getting more the volume increase. Those kind of stories, different customer are act differently. The U.S. customer ones they do they cross border change, but others is model by model deploy. Got it. My last question is, what's the current overall revenue exposure? What's the targeted revenue that you are looking at in the next few years? 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[Non-English content] foundry？[Non-English content]？ [Non-English content] address [Non-English content] relative [Non-English content] backend diversify out, [Non-English content]. Foundry [Non-English content] customer [Non-English content] cost [Non-English content] diversify out, [Non-English content] true [Non-English content]. [Non-English content] share [Non-English content] TTED, [Non-English content] diversify out [Non-English content] foundry [Non-English content] cost [Non-English content]. [Non-English content] cost [Non-English content] very significant to us. [Non-English content] gross margin [Non-English content]. [Non-English content], AIPC, [Non-English content] Jack [Non-English content] AIPC [Non-English content] agentic [Non-English content] inference [Non-English content] high-end [Non-English content]. Edge computing [Non-English content] high-end [Non-English content] cloud run model [Non-English content]？ [Non-English content]. [Non-English content]. [Non-English content]？ [Non-English content] AI. [Non-English content] AI [Non-English content], cloud [Non-English content] exponential increase. Mm-hmm. [Non-English content] in-house [Non-English content] build [Non-English content] open weight model, [Non-English content]. [Non-English content]. [Non-English content] local, [Non-English content] computer [Non-English content] computing power. [Non-English content] edge computing, [Non-English content] model [Non-English content] enterprise [Non-English content] popular, [Non-English content] powerful [Non-English content] notebook, [Non-English content] even [Non-English content] dedicated box. [Non-English content] pay a lot of attention [Non-English content], dedicated [Non-English content] AI [Non-English content] box, [Non-English content] quarter, [Non-English content] hot [Non-English content] Apple [Non-English content]. VR。 [Non-English content] trend [Non-English content] especially [Non-English content] really expensive, afterwards. [Non-English content] experienced，[Non-English content] exponential cost increase. [Non-English content]. [Non-English content], [Non-English content] CPU vendor, system vendor [Non-English content] whether AMD [Non-English content] Intel [Non-English content] focus on data center [Non-English content] computing [Non-English content] customer [Non-English content] data center [Non-English content], focus on more on the edge side [Non-English content] calculation. [Non-English content] enterprise [Non-English content]？[Non-English content] NV [Non-English content]？ Right. [Non-English content] ecosystem [Non-English content]？ [Non-English content] enterprise people will use more. [Non-English content] n eeds, [Non-English content] build [Non-English content] model, [Non-English content] run [Non-English content] design, [Non-English content] design, [Non-English content] design. Right. [Non-English content] find out the world is very expensive using our own model. [Non-English content] run into [Non-English content] expense, [Non-English content] run into [Non-English content] expense. [Non-English content] enterprise [Non-English content]. [Non-English content]. Very sure, it's a lot more cheaper. [Non-English content]. [Non-English content] affordable, [Non-English content] numbers exponential growth. [Non-English content]? [Non-English content] smart [Non-English content]. [Non-English content] Jack. [Non-English content]. Everyone, thank you.