Welcome everyone to Parade Technologies Limited 2026 third quarter webcast investor conference. Investor relations of Parade Technologies, Mr. Yo-Ming Chang, will present 2026 third 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 the 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 a question. Welcome to Parade Technologies Limited 2026 third quarter webcast investor conference. Today's meeting will first be presented by Mr. Yo-Ming Chang, investor relations of Parade Technologies. Mr. Chang will present Parade Technologies' third quarter 2026 financial results. During this presentation, your phone will be in mute mode. After the presentation, we will arrange for CEO Dr. Zhao and Mr. Wu, Vice President of Finance, to take your questions in English. In addition, we will reserve the last 15 minutes to take your questions in Chinese. Now I would like to introduce Mr. Yo-Ming Chang, investor relations of Parade Technologies. Mr. Chang, please begin. Now I would like to introduce Mr. Yo-Ming Chang, investor relations. Yo-Ming, please begin. Thanks, Jason. Welcome everyone to Parade Technologies 2026 Q3 webcast investor conference. Parade Technologies third quarter 2026 consolidated revenue was $130.83 million, and the net income was $18.49 million. Its both basic and fully diluted after-tax earnings per share were $0.24 and $0.24 respectively. These results compare to consolidated revenue of $146.14 million, and a net income of $27.24 million, or $0.35 and $0.35 per basic and the fully dilution in the year-ago quarter. In U.S. dollars, the third quarter revenue decreased 2.71% sequentially and was down 10.48% year over year. The gross profit in the third quarter of 2026 was $52.7 million, a decrease over 2.50% from the previous quarter and a decrease over 15.14% compared to the same quarter of last year. On September 1, 2026, Parade announced its PS9010 USB-IF certified USB4 dock controller has been integrated into the Acer ProDesigner PE320QX, a professional-grade monitor for creators. Designed to meet the rising demand for high speed and multi-protocol connectivity in creative workflows, the PS9010 enables the Acer ProDesigner PE320QX to serve as both the ultra-high-resolution display and a high-performance single cable USB4 docking hub. The Acer ProDesigner PE320QX is built to optimize the user experience in workflows where high bandwidth data transfer and multi-display connection are critical. By integrating the PS9010, the monitor seamlessly supports USB4, DP 2.1 and SuperSpeed USB, ensuring robust compatibility with a wide range of host systems and peripherals. With the dedicated USB4 upstream and the downstream facing ports supporting 40 gigabits per second bandwidth, the Acer ProDesigner PE320QX enables effortless daisy chains of secondary high-resolution displays and high-speed storage arrays over a single USB-C connection. On September 7th, 2026, Parade announced in cooperation with FIT, a leading cable manufacturer, the successful deployment of a Parade Ultra Linear Redriver in the OSFP, Octal Small Form Factor Pluggable for inclusion on the June 2026 PF43s InfiniBand Trade Association Integrators' List at both XDR 224 gigabits per second and NDR 112 gigabits per second data rates. Such lists ensure seamless operation with key AI server, XPU and switches. OEM can now feel confident employing Parade LRDs in copper cable solutions from 2-4 meters to reducing power latency and the rack weight, as well as improved rack routing. Parade Ultra Ethernet series of linear redrivers are capable of supporting the latest 802.3dj Ethernet Specification, as well as InfiniBand, UALink, NVLink and OIF standards and extend our commitment to enable the short-reach high performance AI scale out market with low power, low latency solutions. On October 5th, 2026, Parade announced UGREEN has selected Parade's chipset solution for its flagship USB4 hub. Powered by Parade's USB-IF certified PS9010 USB4 dock controller and the PS5513 dual-port USB Power Delivery controller. The hub delivers certified multi-protocol high-speed connectivity, comprehensive peripheral expansion and robust fast charging in a single compact form factor. The new UGREEN USB4 hub address the connectivity demands of modern workstations by equipping users with an all-in-one expansion interface. In addition to host pass-through charging, the hub provides a dedicated USB4 downstream port for daisy chain multiple USB 3.2 10Gbps and 5Gbps ports, a 2.5GBASE-T Ethernet port, dual SD and TF card readers, an HDMI display output and an integrated audio headphone jack. Based on the current business outlook, Parade is providing the following guidance for the fourth quarter of 2026. Revenue is between $95 million-$105 million USD. Gross margin is between 41% to 45%. Operating expense is between $33 to $36 million US dollar. 各位投资界的朋友，大家午安！欢迎大家来参加谱瑞公司2026年第三季线上法人说明会。首先由我跟各位报告谱瑞公司2026年第三季财务数字。本公司2026年第三季合并营收为美金130,083万元，税后净利为美金1,849万元，除权后基本与稀释每股税后盈余为美金0.24元，约当新台币7.69元，及美金0.24元，约当新台币7.67元。而去年同期合并营收为美金146,140,000元，税后净利为美金27,240,000元，除权后基本与稀释每股税后盈余为美金0.35元，约当新台币10.45元，及美金0.35元，约当新台币10.43元。2026年第三季合并营收较前一季减少2.17%，较去年同期则减少10.48%。在营业毛利方面，本公司第三季营业毛利为美金52,710,000元，较上一季减少2.5%，较去年同期则减少15.14%。西元2026年9月1日，谱瑞公司宣布通过USB-IF认证的PS9010 USB4扩充基座控制晶片，已导入宏碁专为创作者打造的专业级萤幕ProDesigner PE320QX，因应创作工作流程对于高速与多协定连线日益增长的需求，PS9010让Acer ProDesigner PE320QX同时支援超高解析及高效能单缆线USB4扩充基座。Acer ProDesigner PE320QX针对高频宽资料传输与多萤幕连接为关键需求的工作流程，最佳化使用者体验。透过导入PS9010，完整支援USB4、DisplayPort 2.1以及SuperSpeed USB，与各式主机系统及周边装置具备高度相容性。专属USB4上游连接埠与下游连接埠支援40Gbps传输频宽，让Acer ProDesigner PE320QX仅透过单一USB-C连线，即可轻松菊链串接多台高解析度显示器与高速储存装置。西元2026年9月7日，谱瑞公司宣布与知名缆线制造商FIT展开合作，已成功将谱瑞超高效线性讯号重驱器导入OSFP八通道小型可插拔模组，并于2026年6月列入InfiniBand贸易协会PF43s整合厂商清单，支援XDR 224Gbps及NDR 112Gbps两种资料传输速率。此类清单确保产品可与主流AI服务器、XPU以及交换器无缝协同运作。现在OEM厂商可以安心在2到4公尺铜缆解决方案中采用谱瑞线性讯号重驱器，除了降低功耗、减少延迟与机柜重量，同时也优化机柜内的缆线布线作业。谱瑞超高效乙太网系列线性讯号重驱器可支援最新802.3dj乙太网规范，同时相容InfiniBand、UALink、NVLink以及OIF各项标准，持续以低功耗、低延迟的解决方案，投入支援短距离高效能AI扩充的市场需求。西元2026年10月5日，谱瑞公司宣布绿联旗舰级USB4扩充基座选用谱瑞晶片组解决方案。此扩充基座搭载通过USB-IF认证的PS9010 USB4扩充基座控制晶片，以及PS5513双埠USB电源传输控制晶片，提供通过认证的多协定高速连线能力，完整的周边装置扩充功能，并将强大的快速充电整合至单一精简机身当中。全新绿联USB4扩充基座，因应现代工作站的连线需求，为使用者带来一体式扩充界面。除了主机端直充充电外，此扩充基座配置专属USB4下游连接埠，支援菊链串接功能、多组USB 3.2 10Gbps与5Gbps连接埠、2.5GbE乙太网络埠、SD与TF双读卡机、HDMI影像输出，以及内建耳机音讯插孔。基于目前对2026年第四季的展望，我们预期合并营收为美金95到105百万元，合并毛利率为41%到45%，合并营业费用为美金33到36百万元。It is my presentation for the 2026 Q3 financial results. Now, I transfer to CEO Dr. Jack to answer your questions. Jason, you may begin. Yes. Thank you, Yuming. 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 1 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 2. Thank you. Now first question will be coming from Annie Chen of UBS. Go ahead, please. Hi, this is UBS, Annie Chen, on behalf of Jerry Su. Thank you for taking my question. My first question is, could you provide the revenue mix for Q3 2026 and also the outlook by each segment into Q4 2026? Thank you. I understand your question is about Q3, what is the percentage of each segment? The answer is, for DP, was slightly lower than 30%. The PS, our high-speed product line, is around 45%. The TC, our source driver, was about 10%. And TT, which include our TTED device, exceeds 15%. Got it. Thank you. Maybe as a follow-up, or as a next question, could you give us some color on the near-term notebook demand and your outlook for 2027? Yeah. Do you see like Yes, it has been better on the past Q3. From the IDC report, our own results reflect notebook had a pretty big reduction in the Q3 or in the second half. That pretty much resulted from the first half. Many OEMs expected the components or DRAM increase, so they pre-order quite many parts in the first half of 2026. In addition, the OEMs also increased their notebook price in the July time frame this year, which also reduced the demand from the consumer space of demand. Certainly, the current AI spending squeezed the IT budget for the commercial notebook, the purchasing. So those are the factors impact the Q3 or the Q4 notebook demand reduction. Moving forward, what do we expect? The notebook still in 2026 Productivity, important that the tools, especially for the current AI computing demand. Recently, NVIDIA introduced those notebook for AI computing. We think those will expand the notebook market, hopefully, from traditional consumer commercial to more computing inference. All the notebook unit wise, as the research report will be flat type of thing with 2026. But we think the value wise will increase, as the high-end notebook demands lot more high-speed device. Yes, understood. As for the third question, could you provide some updates about your ASIC-like business? Is it taped out? Should we expect this to contribute revenue in second half 2027 or more likely in 2028? Thank you. We're working very hard to tape out those chips, and the progress very well. Those are the two big chips. We did a lot of system verification with our customer. The development progress well. In terms of whether the second half Sorry, I think it's breaking out a little. Can you hear me clearly right now? Yes. Perfect. Okay. Yeah. The customer schedule did not change. We don't expect much of change on the 2027 second half. Yeah. That's the current schedule we have. Thank you. Understood. As for our final question, may we know your initial view on the overall revenue growth outlook for 2027? How should we think about the OPEX? The spending side, we don't expect much change. Maybe a couple percentage increase, that's about it. On the revenue side, we hope the revenue will be better than this year, and really driven by our multiple program and especially our InCell TTED, our hub device. As we said, we may start to have some ASIC revenue contribution. Yeah, that's what we view. Of course, the 2027, our revenue also will very much depend on the broader market demand. Hopefully, the broad market, the components, the DRAM for notebook will stabilize. Yeah, got it. Thank you. Very clear. Thank you, Jack and Yoming. I'll head back to the queue. Thank you. Next one, Joey Lee, HSBC. Go ahead, please. Okay. Hi, Yoming and CEO. Thank you for taking my question. I would like to ask some question about the. In August, you indicate that second quarter might be this year's gross margin growth and supported by the price adjustments and relocation part of your back-end supply and foundry. I would like to know, has the broader price adjustment now been accepted by your major customers? In which quarter should we expect the back-end savings to show up in gross margin? Third, how many percentage in the price increase is transferable to customer from your point of view? Thank you. Yeah. I think that's a good question. Yeah, we do the product line by product line to adjust the price reflecting our manufacturing cost increase. We start to do the end of Q2, Q3, and from now pretty much are completed. So those adjustment reflecting into our financial, it's gradually going up because if the effective day is not, you adjust, you affect it. Some of the customer will negotiate with you. They accepted it, but adjust a few months later. So that's the typical business process. In today's market, the demand is reduced. So it's a tough process to increase the product price. On other hand, our customer understand the manufacturing costs broadly increase. So even though it's tough to them, they largely accepted the price increase. The price increase range is dependent on our cost range, and we basically share some of cost increase with our customer. They may not be full range considered, and that's a lot of negotiation in between. We will see the recovery, our gross margin, in coming quarters, and hopefully, we're more into our guidance instead of a burden to the more center place and those companies. Yeah, that's what we do, is try to achieve that goal. Okay, thank you. My second question is about the auto business. Can you share about the progress of the auto business comparing to Q2, and are there any new customers? Actually, auto business is particularly good from Q2, Q3, and moving forward. It is very encouraging. Since our designing are more associated with more EV car or more advanced cars. Recently, the gasoline price has been up quite long. The EV demand actually going up. We have a top brand name in U.S. with multiple chips. We have a top China EV guys, and are using our chips. Also, we have a more designing or different device designing to those auto customers. We are start to shipping our DP hub, auto-grade DP hub, to the well-known auto manufacturer. That probably will expand more. So yeah, auto is a lot more encouraging and is growing up after many years. We expect the auto will have a double-digit growth year-over-year. That is the sort of bright point for our business. Okay, thank you. My last question is about the data center opportunities regarding the ACC Redriver. Can you share about the current competitive positioning of Parade's ACC Redriver in this market, and how many percentage of shares do you expect to gain in the future? Thank you. I would think, as we announced, we are engaged with a cable or leading cable to making those ACC cables, and to get a certification qualification. We are pretty much about to complete all those process. We are also in the designing to CSP guys and for their application. We have more customer on the 800 gigabit side. It seems the 800 gigabit is a lot more stable, a lot more easy to use, those cables. Hopefully, we will create some revenue in the 2027 and on those high speed ACC cables. Okay. That is all my question. I will go back into the queue. Thank you. Thank you. Next one, Daniel Yen, Morgan Stanley. Go ahead, please. Hello. Good afternoon, Yu-Ming and Jack. Could you hear me? Yes. Yeah. Hi, Jack. Thanks for taking my question. The first question I want to follow up on the ASIC design business. I recall you do provide some of your target TAM, addressable market, opportunities for this ASIC business into next year. Could you give us your updated thoughts on how should we think about the opportunities? Maybe not only for next year, but for the next few years. Yeah. Yep. Thank you. Okay. I think previous, the ladies asked a question, when we expected to start have a revenue. We expected the second half. The customer schedule to create some revenues in 2027. When you full scale range to ramp up those products in the full range based on the customer forecast to us, will be over 100 million or more. I probably have to give some discount, but well over 100 million for sure. That is why we spend so much effort, so much engineering resource to do it. We would like to do a good job to not only the performance and the cost and the power, I think very important, the power. Those are the things. Besides, we are doing multiple, the ASIC-like business. I think you are focused on something many people talk about. But we have others, and those also will create a revenue later for 2027 and early 2028. It is multiple product going on. So it is not just one or two. There are multiple there. But I know what you are referring to, but I would try to say we have multiple there, and some of them already taped out on the 6 nanometer and those kind of thing are already out. But it is less for people to pay attention to. I see. Thanks. So when you are referring to this 100 million opportunities, is this only one product or that also includes all the chips? You said multiples. Yeah. Multiple chips. There are multiple product there, and some of high-end, some of middle, and there are some of low-end there. Multiple product there. Added together, exceed 100 million, I would think, based on what we understand and our customer told us. I see. In your view, how should we think about Parade's growth in 2027? On one hand, we have these new opportunities. On the other hand, I think it's a pent demand for notebook. Maybe still a little bit, I would say lukewarm. How should we think about what could be Parade's growth in 2027? What could be the new growth drivers? Okay. Basically, I explained to the previous question as well, that the market is similar to 2026, right? The growth engine for us is really one. Very clear our InCell TTED will have a large volume of shipment this year already, have quite successful many millions shipped out. Next year we'll have lot more. So those are the high single digit, the TTED device. But less people talk about. We have a high-speed device, multiple being used for those, the high-end, the notebook for AI application, right? I thought those are the pretty source for those systems. We do hope those systems, even though the price now is high, we all understand, but will take more inference computing since it can stand alone to run the AI inference. Right. So it has its value there. Those we think will generate more attractiveness there. And, of course, our high-speed product, the retimer DP hub and USB hub all will have to contribute. Besides what you had said, later on the ASIC and those kind of thing. We are also getting a lot more excited for the current USB4 v2 market, which we are pretty prepared for those market. I see. Thanks, Jack. Maybe my last question, more on the near term. Based on your guidance, your gross margin still improved. Actually improved, I think pretty well in full Q. Is it more on the product mix or is it more on the pricing versus the cost? How should we think about that? I would think the previous, also after question was, we had a price adjustment to reflect our manufacturing cost increase. So previously, we are almost getting close to the bottom of the guideline. That is part of result of this. Of course, the product mix towards our high end, especially those TTED, the high speed, the retimer is helping a lot. I see. If I may follow up then, given that you are mentioning there are several new products in 2027, I know it is still a little bit far away, but, yeah. How do you think about your gross margin profile in 2027? As we said, we will adjust to our guidance, like more middle point and hopefully that's the goal. This thing is dynamic. Why the dynamic? The manufacturing cost continue increase. I think you heard that people raise the price pretty frequently, and we are mitigated to the issues, especially on OSAT. We have to pull into a more efficient, more cost-effective area. That's Parade in the process to do it. Basically, we have to survive or to have to serve for our customer, to serve for our investor and, yeah, this dynamically change and that's the goal. But our manufacturing environment is pretty inflationary. I see. Yeah, that's all my questions. Thank you, Jack. I'll be back in the queue. Okay. Thank you. Thank you. Next one, Lucas Liu, KGI. Go ahead, please. Hi, Jack and Yoming, and thanks for taking my question. The first question is regarding the integrated touch and the display solutions. Could you quantify that integrated touch and display shipments in 2026 and your target for 2027? Because now that oxide panels are supported, I am curious about, does the adoption still depend on touch notebooks? Because we are seeing substrate shortage and higher PCB costs, is that possibly to accelerate the adoption by the panel makers, in terms of your integrated solutions? You said many correct thing. You did a lot of good study. What you had said exactly is our thesis for we do integrated solutions to TTED. Also, we consider it as pretty successful in 2026. We are shipping more than 5 million units. Alone, you consider 2025 is almost zero, and 2026 it is quite impressed to move up. Those are the TTED price is high. TTED has many advantage in which you lower power, simplify the manufacturing. Now, you can make a thinner panel, and you can make a narrow border. You actually, as you said, you can really almost, you don't need the PCB for the T-con board. Now it is getting a lot more expensive. We have a technology breakthrough, and we are entering to the oxide space, which will be massive address for notebook panels. We are very exciting for 2027, and we think that we will continue growth in that segment in 2027. We know leading customer are getting very excited for us to move to the oxide base. Previously, I don't think anybody believed we could do TTED in the oxide panel, but we did it, and the chip is already sampled to the customer, and hope and this we can deploy quickly and with volume. The good thing is TTE qualification is very long, and it is very difficult. We have all the customer with us, so we build up the infrastructure as well. Our solution is so secure, we not only can support touch, we can support active pen, Wacom pen. We all pass the Wacom pen. So yeah, although the customer is very exciting for those panels, there are many efficient improvements included. Your T-con is almost, you do not need to, and reduce a lot of cost. Sure. Got it. Very clear. I have a follow-up question regarding your Standard Plus customer, which is recently introducing their new OLED iPad and maybe touch notebooks. Based on my understanding, we are still mainly doing eDP T-con business with them. Is there any possibility that we could do some touch IC business regarding their IT products going forward? Is there any color that you can share with us? We more focus on their T-con side of it. Standard Plus customer has its own strange way and define their supply. So majority our business is two portions. One is on the panel, and even higher panel, we are doing quite a lot and continue doing a lot. As we have talked, we have three projects running. Besides, we are also doing their high-speed side, right? We are shipping their large volume, the converter chip, and we have more opportunity. We are not on the touch or even we promote our touch many times whatsoever, they just define you on those areas. We are at the best. So that is what the case is. You never know because they love our touch, and they knew our touch doing very well. So I do not know how they define their supply. Sure. Okay. That is very clear. Earlier, you have cited that higher back end costs and tightness in maybe like T-glass, lead frames, and testing. How much further cost inflation, including gold and substrates, do you expect in 2027? How should we think about Parade's margin profile moving into next year? As we said, the manufacturing environment is very fresh in it, especially the Taiwan side of it. Because they are squeezed by the AI application. I think it is difficult to measure broadly what it looks like in 2027. However, as we said, we will improve our gross margin, hopefully to more recover from our previous move to the more middle historical level. We are doing a lot of adjustment to stabilize the capacity, to stabilize the price, and include from the different OSAT and the manufacturer. Even our customer asks us to searching for those that more long-term can work with or people more like the consumer type of business to support us. We are start to adopt the policy in the back end. For big customer, we would do supply, manufacturing supply. Hope that will stabilize and we can leverage the dual sites to help that will stabilize. Because otherwise, the increase just single source, very difficult. Our big customer, everybody is encourage us to do this, and encourage us to find other alternative, which has a more stabilized or more eager to do those kind of business. Got it. Very helpful. That will be all of my queues. I will be back to the queue. Thank you. Thank you. Next one, Jamie Ye, KGI. Go ahead, please. Hi, Jack, You-Ming. My first question is about, I think in earlier call, you mentioned that there should be some edge compute AI, because the token now is quite expensive thing in the cloud. Do you see that happening, and do you see that Parade can benefit from that other than the existing ACC project? Do you see any more developments in AI for Parade? I think in the Silicon Valley, more general talk, as you say, the talk on getting a lot more expensive. Enterprise environment, the inference, the computing were getting popular, start from the tenant. We think once those will go to your server room instead of data center, we will have more opportunities. It's more edge calculation. Whether you have a notebook here, right? So the NVIDIA's higher notebook can take it. Or few days ago, you have—or a few weeks ago, Apple with Meta demonstrate that using Apple Studio through USB4 v2 or what is called a Thunderbolt 5 to connect multiple, two or four, the system together to run the Meta, the most leading newest model, and that the result looks very good. In fact, we, Parade, also using quite a lot of AI, generative AI model. We have quite a lot of license. We decided to go ahead and try those models internally to use. Those method, basically doing the offline AI, become very critical. So we have this market there, and if you USB4 v2 connection, yeah, we can do very well. We have all the IPs. So we are starting and work with customers to look at whether those computing will have led to continue grow in the enterprise environment, in the company, those kind of thing. You could back and forth with Apple, the Studio today, through RDMA, the software, and you can run the AI very well via that. You don't really need to go out. We are actually going to try to run our design through on it and see how it goes. So yeah, I think those will be 2027 work group. If you read the report carefully, through the USB4 v2, the latency is very low compared with those Ethernet solutions. Of course, I think Ethernet has much more power, can do training and those kinds. But if you want to have control your token spending and sensitive for your budget, those solutions definitely is alternative. We think, as I talk to the people, the enterprise, the edge, the AI, will start to become a market for company to use that model. Almost every company in the Silicon Valley is thinking about this because the token just too expensive, right? Even ourself, Parade, and we start to have AI to use it, I think, the March, April timeframe. Now the budget already, especially design team, going up very quickly. So, yeah, it's real. Token is not cheap, it's expensive. But today— Yeah. Using the- If- Anthropic. Yeah. If that happened, the players will be your notebook customer? I think it will be somebody like AMD, NVIDIA. They all work for Apples, and we're thinking about those solutions. Yeah. But technically, very much doable. Mm-hmm. I see. Okay, cool. Also, my second question is about text. It demonstrate- I think, sorry. Apple already demonstrated to the market. Okay. Is that using our solution? No, today it is using the Intel Thunderbolt. Okay. But those very much we can do. You have people, they cannot use Intel Thunderbolt, whether AMD or NVIDIA or Qualcomm, they cannot. Yeah. But that is why they use our terminal, do not use Intel's terminal, right? Mm-hmm. Okay, I see. Cool. But- Second question. Yeah. I do not even know who we are leading to, but those are the exciting areas, right? Okay. Second question is very quick about the tax. I think third quarter tax kind of smaller than expected. Can we expect that kind of credit in the future? I think I would like to invite Guowei Wu to explain, our VP of Finance. Guowei Wu, could you jump on this? Yeah. Can you hear me? Yes. Yeah, we can. Okay. Thanks for your question. I think you are looking at a lower tax rate in Q3. Well, that probably just a one time, because you know we have the onshore/offshore tax model, and it highly vary, depends on where the sales are made. We also constantly adjust the rate based on what we see for the current business environment. This is probably just one time, and I will not count it as going forward. For model purpose, I would still suggest using 9% plus. Okay. 9% plus. Okay, great. Yes. Thank you. I think that will eventually converge. Thank you. Mm-hmm. Okay. Thank you very much. Thank you. Next one, Jennifer Ye, J.P. Morgan. Go ahead, please. Hi, Jack. Hi, Yuming. Can you hear me? Yes, go ahead. Yeah, thanks for taking my question. I just have a quick follow-up on the near-term margin and notebook demand. We are saying that we are seeing some destocking for notebook in third quarter and into fourth quarter. Do we have an expectation on how long the destocking will be, like initial view into, let's say, first quarter next year? We do not know exactly, but we do get opportunity to talk to the OEM executive for procurement side of it. They are also disappointed for whatever the current situation. They will, of course, complain a lot. They told us they expect the overall 2027 should be similar to 2026. The thing is largely subject to the DRAM price. The good thing is DRAM price in China is already stabilized, or if not, reduced somewhat in the Q3, Q4. So yeah, if DRAM continue price elevated, notebook price will be in trouble. If the DRAM price stabilized, I think will be better. That is the information. That is the talk I got with those OEM procurement people. Yeah. Understood. Very clear. Second question from me is on the gross margin. So, when we are saying that we expect gross margin to recover in following quarters, do we price in the potential, let's say, foundry price hike or offset, since I think we have some initial discussion now for 2027 pricing. Are we trying to, let's say, negotiate some kind of LTA, to stabilize the pricing at this moment, or are the suppliers not willing to take the LTA yet? Thank you. Lucky enough, we have a bigger LTA on the 22, 28 nanometer. That price are fixed on the wafer. Other were subject to change. But the business for everybody or consumer are not good. So price increase, it's a tough sale. But we understand that what is the current situation is pretty inflationary, and we have to address it. Whether through we dodge it, whether through price increase, whether through other thing, and that's the order. We have to address it. We also want to see what is going on. Yeah. Understood. Very clear. Thank you. Thank you. Ladies and gentlemen, we will now move on to the Chinese question and answer session. Thank you. 中文提问时间现在开始。如果您需要提问，请在您的话机上按*键以及数字1。当我们读出您的名字后，请开始发问。如果您需要取消发问，请按*键以及数字2。谢谢。目前中文第一位提问的是Cathay Securities Raymond Guo，请提问。 好的，Jack、国威、佑铭，大家好。我有两个问题想要请教。第一个问题是我们怎么看Parade cable业务在明年的成长性，或者是营收的贡献。比方说Jack可不可以针对ACC或者像是一些外部的高速界面的线缆，比方说像Type-C、USB4、HDMI，还有像DP等等，跟大家分享一下这些业务明年怎么看。这是我第一个问题。 [Foreign language] USB-C [Foreign language] USB4 v2 [Foreign language] USB4 [Foreign language] cable, [Foreign language] we already ship quite a bit, [Foreign language] using the Silicon Transmit device, and we're talking about few hundred K this kind of thing. [Foreign language] This [Foreign language] and ACC for ultra fast ACC for 800 gig and 1.6T [Foreign language] is a different market, [Foreign language] or PCIe Gen 6, we're working on the PCIe Gen 6 [Foreign language] cable as well. [Foreign language] PCIe Gen 6 has a more design opportunity, [Foreign language] relatively [Foreign language] simple [Foreign language] because these are our current customer. Most simple is USB, [Foreign language] these are our original customers, [Foreign language] we are very familiar. [Foreign language] Next is PCIe [Foreign language] these, [Foreign language] then the next layer is Ethernet or InfiniBand, [Foreign language] these ultra fast 800 gig, 1.6T [Foreign language] cable. [Foreign language] I believe we have already gone through [Foreign language] a qualification [Foreign language] stage, [Foreign language] we are more confident that our [Foreign language] these just done Spectra7 acquisition [Foreign language] products, quality, performance are good, [Foreign language] so we are quite confident in this. [Foreign language] We have already design in, [Foreign language] and with some customer cable [Foreign language] already all done, [Foreign language] already sent to some CSP [Foreign language] customers, [Foreign language] to do system level test. [Foreign language] Hopefully we'll have a, [Foreign language] we also have test, [Foreign language] we have equipment, [Foreign language] including we have high speed BER, [Foreign language] including we have high speed NVIDIA [Foreign language] switch, NVIDIA [Foreign language] card, NVIDIA [Foreign language] switch, Broadcom [Foreign language] these switch [Foreign language] are all in our laboratory. [Foreign language] We have tested ourselves and it's good, [Foreign language] we will look at this. [Foreign language] But I should be confident [Foreign language] that our [Foreign language] these ultra fast [Foreign language] will contribute some [Foreign language] to our revenue, in the 2027. 那Jack我可以再follow一下，像ACC cable的话，有没有一个大概的想法，比方说明年我们可以怎么估，就说它的trend或者是什么。 我觉得这个还是有点比较，我不想misleading，因为这个Google用了最多，Google 1.6T的data center用得最多。那逐渐rest people，每个provider用的这些number of cable都不太一样。对我们来说，需要估一个number出来有一些difficulty。因为毕竟我们是new comer到这个market上面，或者说这个本身的market，也是一个newly established market。 好，谢谢Jack。我的第二个问题是我想再追问一下我们在PC这一块，像现在如果各家研究机构看明年，PC产业还是会面临到一些逆风，大家都会觉得说我们Parade营运跟PC还是等于是说比重比较高。那我们有没有什么样的一些策略，怎么去克服，比方说今年营收应该就是一个小幅度的衰退，那明年现在看财报环境对我们来说也不是太友善，我们怎么去明年追求一个比较好的成长？有什么样的策略吗？ 当然我们也在做一些是diversify out from我们的PC position，PC notebook position。比如我们说的auto，是different的，完全跟PC行业没什么关系。我们也在high end edge computing上面去做一些事去engage into the AI，这是我们一定想在做的一件事，因为很大的一部分成长会在这一部分，包括edge computing，这是我们在努力的一个方向。但比较realistic，比较看得到的就是我们的InCell的TTED，我们可能比较很快就会bring to you solution, everything。所以这个大概是比较确定的。我们今天的这些DP hub、USB hub都在bring new customer into我们自己的这个area。因为这些DP hub跟USB hub过去都不是我们的business，都是我们newly developed的。 好，谢谢Jack。Jack，我可不可以follow up一下，刚刚同业在问那个ASIC like，刚刚很多人问。我想我可不可以再请教你，比方说我们如果讨论的是这颗南桥晶片组，这个ASIC like业务的话，因为我们的友厂在近期大概都有分享一些他们的突破、他们的优势，可能他们拿到多少份额等等。我还是想，Jack你可不可以针对技术面的角度，从科技的角度来跟大家分享，我想听听看您的观点，友厂讲了一些比较乐观积极的一些订单的配比等等，不知道Jack这边有没有从技术角度，你觉得Parade其实还是有什么样的优势等等。 我想我们的优势，我们的PCIe Gen5都是我们自己developed的，也蛮成熟的。我们在12纳米上面，power is much much lower。我们是not equivalent的，因为我们有些function，老的chip根本没有，这个不是一个one to，这个是orange跟apple在compare。我们有些leading function，我想过去的chip根本没有。所以我也不知道怎么去比，那个power根本没办法比。我想我们的PCIe is almost stable。所以我不知道怎么去比较合适地比，因为有些function它根本不support，过去的根本不可能support。 好的，谢谢Jack。谢谢佑铭。 谢谢。谢谢。非常感谢各位的提问。目前没有其他问题，我们将结束今天的会议。感谢各位参与谱瑞科技股份有限公司2026年第三季线上法人说明会。今天的会议将到此结束，您现在可以离线了。谢谢，再见。 Thank you everyone.