Summary of Key Points from the Earnings Call Transcript Industry Overview - The report focuses on the **Telecom Services, Cable & Satellite** industry, particularly highlighting trends in **data center interconnect**, **transport**, **optical**, and **fiber-to-the-home** technologies [2][18]. Core Insights and Arguments - **Ciena**: The company has raised its long-term revenue guidance to **8-11%**, driven by expectations of a normalization in telecom spending. Despite current slower demand, there is optimism due to increasing data traffic from AI workloads, which is expected to benefit optical transport providers [19][19]. - **Coherent**: The telecom segment is showing signs of recovery, although broader macroeconomic conditions have led to revenue declines. There is cautious optimism regarding a potential macro recovery, particularly within the telecom sector [19][19]. - **Fabrinet**: The company reported a return to growth in the telecom segment, attributed to the recovery of traditional telecom demand, new system wins (e.g., Ciena), and steady demand for Data Center Interconnect solutions. Notably, demand for **ZR** (a type of optical technology) now accounts for **10%** of optical revenue [19][19]. - **Calix**: The impact of potential changes to the **BEAD** program remains uncertain. Despite recent inventory digestion affecting growth, Calix is confident in returning to double-digit revenue growth, with or without BEAD support [19][19]. Additional Important Information - The report includes insights from a recent **J.P. Morgan Hardware, Networking & Semis Bus Tour**, which provided a platform for discussions with various industry leaders, enhancing the understanding of current market dynamics [2][19]. - The report emphasizes the importance of **data center interconnect** and **telecom recovery** as key drivers for growth in the sector, indicating a shift in demand patterns that could present investment opportunities [19][19]. - The document also contains various **disclosures** regarding the research methodology, analyst certifications, and potential conflicts of interest, ensuring transparency in the analysis provided [5][11][27]. This summary encapsulates the essential insights and trends discussed in the earnings call, providing a comprehensive overview of the current state and future outlook of the telecom services industry.

Core Viewpoint - Chinese President Xi Jinping emphasized the importance of adhering to the "one country, two systems" policy during the celebration of Macao's 25th anniversary since its return to China, highlighting the region's significant achievements and transformation under this framework [1][2]. Economic Development - Macao's GDP in 2023 has increased to seven times the figure from 1999, with its per capita GDP ranking among the highest globally [1]. - The region is recognized as one of the safest places in the world, with free education from kindergarten to senior high and an average life expectancy of 83.1 years [1]. Social Transformation - Xi noted that Macao residents enjoy more rights and freedoms than ever before, marking a significant social development since the region's return to China [1]. - The city is transitioning from being primarily a "casino city" to a diversified economy, enhancing its role as a world tourism and leisure center [1]. Governance and Future Prospects - The new government of Macao is urged to leverage the advantages of "one country, two systems" to promote high-quality development and improve governance efficiency [1]. - Xi expressed expectations for the government to diversify the local economy and maintain social harmony and stability [1]. Regional Cooperation - The Guangdong-Macao In-Depth Cooperation Zone in Hengqin is highlighted as a model for enriching the "one country, two systems" practice, aiming to reduce Macao's dependence on the gaming sector [1]. - The Greater Bay Area, encompassing 80 million people, presents significant potential for Macao's development [1].

Core Viewpoint - Morgan Stanley has adjusted the target price for Palo Alto Networks from $446 to $223 while maintaining an "Overweight" rating [1] Group 1: Analyst Ratings and Target Prices - The average rating for Palo Alto Networks is "Overweight" with an average target price of $419.49 according to FactSet data [2] - Wolfe Research has raised its target price for Palo Alto Networks to $440 while maintaining an "Outperform" rating [2] - Argus Research has also increased its target price to $443, maintaining a "Buy" rating [2] - HSBC has downgraded its rating to "Underweight" with a target price of $291 [3] Group 2: Market Dynamics - The increasing discount for CrowdStrike and Palo Alto Networks has added pricing pressure in the cybersecurity sector, which may be a reason for the adjustments in target prices by institutions [3]

Core Points - South Korea's parliament passed an impeachment motion against President Yoon Suk-yeol with 204 votes in favor, meeting the two-thirds threshold required for impeachment [1] - The political turmoil began with President Yoon declaring emergency martial law on December 3, citing the need to eradicate anti-state forces [1] - Following the declaration, the National Assembly quickly moved to lift the martial law on December 4, deeming it invalid [1] Timeline of Events - On December 5, opposition parties initiated an impeachment motion against President Yoon due to his martial law declaration [1] - The initial impeachment motion failed on December 7, as most lawmakers from the ruling People Power Party did not support it [1] - On December 8, President Yoon was booked as a suspect for treason related to his martial law declaration [1] - The National Assembly called for Yoon's arrest on December 10, following investigations into the martial law declaration [1] - On December 12, the parliament passed bills to appoint independent counsels to investigate Yoon's alleged insurrection and scandals involving his wife [1] - The second impeachment motion was reported on December 13, leading to the successful impeachment vote on December 14 [1] - With the impeachment passed, the constitutional court will deliberate within 180 days, during which Yoon's powers will be suspended and Prime Minister Han Duck-soo will act as president [1]

Core Viewpoint - Macao has emerged as a successful model of the "one country, two systems" policy, demonstrating significant economic growth and improved living standards since its return to China in 1999 [1][5][32] Governance and Political System - Macao's governance under the "one country, two systems" policy has allowed it to maintain a capitalist system while benefiting from strong support from the central government [4][17] - The political system in Macao is characterized by an efficient structure where the chief executive leads, and there are mutual checks and balances among the administrative, legislative, and judiciary powers [13][15] - The local legislature operates through competitive elections, and legislators can directly question the chief executive, showcasing a level of political engagement comparable to Western democracies [14][15] Economic Growth - Since 1999, Macao's per capita GDP has more than quadrupled to approximately 70,000 U.S. dollars in 2023, reflecting rapid economic growth [20] - The government has invested significantly in public welfare, improving housing, healthcare, and education, contributing to a safer environment with low crime rates [21][22] - Macao is diversifying its economy beyond gaming, with growth in sectors such as traditional Chinese medicine, finance, and tourism [24] Cultural Diversity and Inclusiveness - Macao is home to a rich tapestry of cultural and ethnic groups, fostering an environment of inclusiveness and cross-cultural exchanges [28][30] - The city has preserved its historical and cultural heritage while adapting to modern influences, making it a unique blend of East and West [29][30] Future Development - Macao is poised to play a more active role in the Guangdong-Hong Kong-Macao Greater Bay Area development and aims to strengthen its position as a platform for cooperation with Portuguese-speaking countries [25][26][27] - The ongoing evolution of the "one country, two systems" policy in Macao is seen as a new beginning, with potential for further growth and development [32][33]

Core Viewpoint - China is set to upgrade its 5G network to 5G-A standards and promote research and development in 6G technologies, aiming to enhance data infrastructure and facilitate efficient data flow across regions [1] Group 1: Data Infrastructure Development - Draft guidelines have been released for constructing data infrastructure, focusing on upgrading to 5G-A and expanding international communication channels [1] - The plan includes establishing a satellite internet system that integrates space and ground facilities [1] - The guidelines aim to provide a low-cost, efficient, and reliable data delivery environment for both centralized and decentralized transactions [1] Group 2: Technological Advancements - China will encourage exploration of new technological infrastructures, including blockchain and privacy-preserving computing [1] - The country plans to optimize network billing methods and reduce data transmission costs between eastern and western regions [1] - The 5G-A network will achieve peak data rates of 10 gigabits per second for downloads and 1 gigabit per second for uploads, with millisecond-level latency [1] Group 3: Regional Deployment - The deployment of international communication gateways will be balanced across eastern, central, and western regions [1] - Cities like Beijing and Shanghai have already begun offering 5G-A network services in select districts [1]

Summary of the 2025 US Economic Outlook Conference Call Industry Overview - The report focuses on the US economy and its outlook for 2025, highlighting potential paths influenced by political changes and economic policies [2][6][9]. Core Economic Points - **Growth Projections**: The US economy is expected to experience a mild downshift in growth to 2% in 2025, with a slight increase in the unemployment rate to 4.5% [2][6]. - **Inflation Expectations**: Core PCE inflation is projected to decelerate to 2.3% in 2025, down from previous highs [2][6]. - **Federal Reserve Actions**: Anticipated rate cuts by the Federal Reserve include a 25 basis point cut in December 2024 and an additional 75 basis points by the end of Q3 2025, stabilizing at 3.75% [2][6]. - **Labor Market Dynamics**: Labor supply growth is expected to slow, with breakeven payroll growth falling below 100,000 by 2026, while labor demand moderates without triggering a recession [2][6][9]. Economic Risks and Uncertainties - **Policy Uncertainty**: The incoming administration's policies on immigration and trade could significantly impact economic growth and inflation, with potential tariffs on China expected to add 0.2 percentage points to core inflation [10][11][32]. - **Higher Deficits**: A projected federal fiscal deficit of around 7% of GDP in 2026 is anticipated, influenced by the expiration of personal tax components of the TCJA [11][12]. Labor Market Insights - **Unemployment Trends**: The unemployment rate is expected to peak at around 4.5% in the first half of 2025 before improving back to 4.2% by year-end [34][38]. - **Job Growth**: Nonfarm payroll growth has cooled to just over 150,000, with a significant decline in job openings, indicating a balanced labor market [34][38]. Consumer Spending and Income - **Consumer Spending Growth**: Real consumer spending is projected to slow to around 2% in 2025, influenced by changes in disposable income and the saving rate [46][49]. - **Wage Growth**: Compensation growth is expected to moderate, with real labor income increasing by 2-2.5% [46][49]. Housing Market Dynamics - **Residential Investment**: Real residential investment is projected to rise by 3% in 2025, driven by new home sales and construction despite challenges in existing home sales [60][61]. - **Household Growth**: The adult population is expected to grow by approximately 3.8 million per year, with household growth estimates ranging from 0.9 million to 1.2 million annually [63][64]. Corporate Profit Outlook - **Profit Margins**: Domestic corporate profit margins are near record levels, with pretax profits expected to rise by 5-6% in 2025, although this represents a slowdown from previous growth rates [71][73]. - **Investment Trends**: Despite high profit margins, business investment spending remains low, with businesses acting as net lenders rather than borrowers [77]. Conclusion - The economic outlook for 2025 presents a complex interplay of growth, inflation, and policy uncertainties, with significant implications for various sectors including labor, consumer spending, housing, and corporate profits [2][6][11][12].

Summary of Accelink's Optical Networking Call Industry Overview - **Industry**: Optical Networking - **Company**: Accelink Technologies, a major transceiver manufacturer focusing on the Chinese domestic market Key Points 1. **Supply Constraints**: EML (Electro-absorption Modulated Laser) supplies will remain tight into 2025, impacting transceiver shipments [2][4] 2. **Demand Dynamics**: The demand for transceivers in China is strong, particularly for 400G products, which are a generation behind the mainstream products in North America [1][4] 3. **Shipment Lag**: Current shipments are lagging behind demand due to component supply constraints, leading to a portion of the demand in 2024 being pushed into 2025 [1][4] 4. **Production Capacity**: Accelink has established a new facility with equipment installed in July 2024, aiming for a production capacity of a few hundred thousand units per month, but is hindered by component supply issues [3] 5. **Market Competition**: Competition in the Chinese transceiver market is expected to intensify as suppliers expand their capacities, which may lead to pricing declines [4][6] 6. **Product Demand**: The construction of 400G long-haul optical networks by Chinese telecom operators is expected to increase demand for Accelink's products, including fiber amplifiers and coherent transceivers [7] 7. **Peer Comparison**: Accelink's insights on demand strength and EML supply tightness align with those of HG Tech, a close peer, but the intensifying competition poses a risk [8] Additional Insights - **Future Outlook**: Accelink anticipates that the demand for transceivers will continue to grow into 2025, despite current shipment challenges [4] - **Investment Implications**: The findings suggest potential investment opportunities in companies like HG Tech, which are also involved in the optical transceiver market [8][9] This summary encapsulates the critical insights from the call regarding Accelink's position in the optical networking industry, highlighting both opportunities and risks associated with supply constraints and competitive dynamics.

Election Dynamics in Wisconsin - Door County, Wisconsin, is a "super swing county" with a population of approximately 30,000, aligning with the national outcome in the last seven presidential elections [1] - In 2016, Trump won Door County by more than 500 votes, while in 2020, Biden won by less than 300 votes [1] - The county has a strong foundation in agriculture and manufacturing, notably shipbuilding, as well as a thriving tourism and catering sector [1] Voter Perspectives - Voters in Door County hold widely divergent views on issues such as the economy, immigration, and abortion rights [1] - Republican voters believe the Biden-Harris administration's policies have caused inflation, while Democratic voters argue that the Trump administration's fiscal stimulus also contributed to inflation [1] - A recent Pew Research Center survey revealed that 90% of Harris supporters believe illegal immigrants primarily take jobs Americans are unwilling to do, compared to 59% of Trump supporters [1] Economic Concerns - The cost of producing 100 pounds (45kg) of milk has increased by 5 USD, with the breakeven point rising to 22 USD, according to a small farm owner [1] - Republican voters are concerned about the Biden-Harris administration's immigration policies, which they believe could lower labor costs for larger farms and create competitive pressure for small family farms [1] Campaign Strategies - Both Trump and Harris are campaigning across key swing states, including Wisconsin, highlighting the state's importance in the upcoming election [1][2] - As of Thursday, Harris' average support rate leads Trump by 0.2 percentage points in Wisconsin, with similar narrow gaps in Michigan and Pennsylvania [1][2] Political Division - Voters emphasize personal likability and trustworthiness over policy issues in their voting decisions [1] - The election is described as turbulent and filled with anger, with concerns about exacerbating public divisions regardless of the outcome [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-40292 two (Exact name of registrant as specified in its charter) Cayman Islands 98-1577238 (State or other jurisdiction of incorporation or organi ...