Financial Data and Key Metrics Changes - In Q1 2025, total revenue increased by 10.9% year on year to RMB 32.6 billion, with adjusted net profit reaching RMB 4.6 billion, representing an adjusted net margin of 14% [7][38][44] - Gross profit margin approached 55%, with gross profit growing by 10.4% year on year to RMB 17.8 billion [8][42] - Cost of revenue increased by 11.5% year on year to RMB 14.8 billion, accounting for 45.4% of total revenue [42] Business Line Data and Key Metrics Changes - Revenue from online marketing services grew by 8% year on year to RMB 18 billion, driven by AI technology integration [17][39] - E-commerce GMV grew by 15.4% year on year, with the number of monthly average active paying users reaching 135 million [20][21] - Live streaming revenue increased by 14.4% year on year to RMB 9.8 billion, marking a return to positive growth [28][41] Market Data and Key Metrics Changes - Average daily active users (DAUs) on the Kuaishou app reached a record high of 408 million, with average daily time spent per DAU at 133.8 minutes [13][14] - The overseas business achieved a revenue increase of 32.7% to RMB 1.32 billion, marking its first-ever quarter of operating profit [31][38] Company Strategy and Development Direction - The company is focusing on AI technology integration across its business lines to enhance user experience and operational efficiency [7][11] - Clean AI is positioned as a foundational infrastructure for video creation, with plans for continuous technological iteration and product innovation [49][51] - The company aims to leverage its omni-domain operational advantages to enhance e-commerce and marketing services, particularly in lower-tier cities [66][77] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth in online marketing services in the second quarter, driven by improved client placements [64] - The company anticipates that AI investments will contribute positively to profitability in the medium to long term, with expectations of narrowing losses in AI-related areas [82] - The focus remains on user-centric approaches and long-term technology investments to drive growth and shareholder value [36][45] Other Important Information - The company repurchased approximately HKD 1.42 billion worth of shares, accounting for about 0.68% of total shares outstanding [44] - The average daily advertising spending on IGC marketing materials remained at RMB 30 million [12] Q&A Session Summary Question: Update on Clean AI's commercialization and growth strategy - Clean AI's revenue reached RMB 150 million in Q1, with paid prosumer subscriptions accounting for nearly 70% of revenue [49][50] - The company plans to maintain its leading position through continuous technological advancements and operational activities, particularly in overseas markets [52][53] Question: How AI is empowering existing businesses - AI has significantly improved marketing material production and client conversion rates, with average daily GMV of AI-generated live streaming highlights increasing by over 300% year on year [56][60] - The intelligent customer service system achieved a resolution rate of up to 80% [60] Question: Trends in online marketing services and key growth strategies - The company expects a return to double-digit growth in online marketing services, with strong contributions from content consumption and local services sectors [64][66] - Marketing spending in the short play industry grew over 300% year on year, indicating strong growth potential [66] Question: Strategy for the six eighteen shopping festival - The company will provide significant traffic resources and subsidies, focusing on user engagement and tailored strategies for different product types [72][75] - AI capabilities will be leveraged to empower merchants and improve operational efficiency [77] Question: Investment plan on AI and its impact on profitability - AI investments are expected to increase, particularly in R&D personnel costs, but the impact on overall profit margin will be relatively small [81][82]

Financial Highlights - Revenue increased by 10% to HK$25432 million[12] - Segment Profit for Integrated Logistics (IL) increased by 3% to HK$693 million[12] - Segment Profit for International Freight Forwarding (IFF) increased by 18% to HK$740 million[12] - Core Operating Profit increased by 11% to HK$1200 million[12] - Profit Attributable to the Shareholders increased significantly by 126% to HK$831 million[12] Regional Revenue Performance (1H24 vs 1H23) - Hong Kong revenue increased by 4% from HK$3318 million to HK$3440 million[16] - Mainland China revenue increased by 5% from HK$8089 million to HK$8457 million[16] - Asia (ex-Greater China) revenue increased by 1% from HK$3684 million to HK$3715 million[16] - Americas revenue saw a substantial increase of 39% from HK$4386 million to HK$6092 million[16] - EMEA revenue increased by 3% from HK$3226 million to HK$3310 million[16] - Oceania revenue decreased by 15% from HK$494 million to HK$418 million[16] Integrated Logistics (IL) Segment Profit Performance (1H24 vs 1H23) - Hong Kong IL profit decreased by 11% from HK$288 million to HK$256 million[19] - Mainland China IL profit decreased by 5% from HK$229 million to HK$217 million[19] - Asia (ex-Greater China) IL profit increased by 9% from HK$192 million to HK$209 million[19] International Freight Forwarding (IFF) Segment Profit Performance (1H24 vs 1H23) - Hong Kong IFF profit increased significantly by 263% from HK$9 million to HK$33 million[23] - Mainland China IFF profit increased by 25% from HK$229 million to HK$286 million[23] - Americas IFF profit increased significantly by 65% from HK$125 million to HK$207 million[23] - EMEA IFF profit decreased significantly by 39% from HK$87 million to HK$54 million[23] - Oceania IFF profit decreased significantly by 48% from HK$41 million to HK$21 million[23]

Summary of Key Points from the Investor Day Conference Call Company Overview - The conference call is focused on a major financial institution, likely a bank, discussing its strategic framework and financial outlook for the upcoming years [1][2][3] Core Industry Insights - The banking industry is currently facing a volatile backdrop, with challenges stemming from geopolitical tensions, inflation, and fiscal deficits impacting economic outlooks [13] - The institution has a strong customer-centric approach, serving 84 million US customers and managing $4 trillion in assets under management (AUM) [9] - The bank has maintained a leading position in various sectors, including a 11.3% share of US retail deposits and being the number one in 22 of the top 125 markets [9] Financial Performance - The bank reported record revenues for 2024, even excluding gains from Visa B shares, with a consistent focus on generating long-term shareholder value [8] - The bank has achieved a tangible book value per share compound annual growth rate (CAGR) that is more than double that of its peers [12] - The bank expects net interest income (NII) to remain around $90 billion, with potential for slight improvement in 2025 [14][15] Expense Management - The adjusted expense for 2025 is projected to be about $95 billion, with a focus on maintaining discipline while investing for long-term growth [17] - The bank has seen a $26 billion increase in expenses over the last five years, but revenue has grown by $54 billion during the same period [20] - The impact of a weaker dollar may exert upward pressure on expenses, but the overall effect on pre-tax income is expected to be insignificant due to hedging strategies [18] Technology and AI Investments - The bank plans to spend approximately $18 billion on technology this year, with a focus on modernization and efficiency [22] - About 65% of the bank's applications now run on cloud infrastructure, up from 50% last year, contributing to significant engineering efficiencies [24] - The bank has been investing in AI for over a decade, with applications in risk management and operational efficiencies, particularly in customer service [26][27] Credit and Allowance Dynamics - Current credit results do not indicate significant deterioration, with charge-offs normalizing on the consumer side [30] - The bank has designed five economic scenarios to forecast near-term expected losses, with a weighted average peak unemployment rate of 5.8% factored into their allowance calculations [32][33] - The bank is prepared to build additional reserves if unemployment rates approach projected levels, with potential needs estimated at around $3 billion under certain scenarios [34] Regulatory Landscape - The bank advocates for a coherent and transparent regulatory framework that avoids duplication and allows for effective risk management [43][44] - The bank has excess capital above current requirements, which it views as earnings in store, and is considering its deployment strategy carefully [41] Growth Opportunities - The bank remains open to inorganic growth opportunities, including acquisitions, while being cautious based on past experiences [56][57] - The bank's consumer and community banking segment has seen consistent growth, with a focus on expanding its digital banking platform and wealth management services [76][77] Economic Outlook - The bank has outlined four potential economic scenarios ranging from a soft landing to a deep recession, with varying impacts on deposit balances and credit metrics [82] - Despite uncertainties, the bank expects to see modest growth in deposits and credit card balances, driven by strong customer acquisition [83][87] Conclusion - The bank is positioned for sustained future success through strategic investments in technology, a focus on customer relationships, and a commitment to navigating regulatory complexities while maximizing shareholder value [29][50]

We have a proven operating model that is supported by a consistent strategic framework Complete Global Diversified At Scale ⚫ Continuously investing in the future while maintaining expense discipline ⚫ Focus on customer experience and innovation Long-term shareholder value ⚫ Customer centric and easy to do business with ⚫ Comprehensive set of products and services ⚫ Focus on safety and security ⚫ Powerful brands ⚫ Fortress balance sheet ⚫ Risk governance and controls ⚫ Culture and conduct ⚫ Operational resi ...

Core Viewpoint - Tencent is expected to report first-quarter 2025 earnings on May 13, with earnings estimated at 88 cents per share, reflecting an 18.92% year-over-year growth, and revenues projected at $24.26 billion, indicating an 8.89% year-over-year increase [1]. Group 1: Earnings Performance - Tencent has surpassed the Zacks Consensus Estimate for earnings in each of the last four quarters, with an average surprise of 11.65% [2]. - The upcoming earnings report is anticipated to reflect the impact of various ongoing initiatives across gaming, advertising, fintech, and AI infrastructure [3]. Group 2: Gaming Sector - The domestic gaming sector is expected to show continued momentum from Q4 2024, supported by popular titles such as Honor of Kings and contributions from new releases like DnF Mobile and Delta Force [4]. - All five of Tencent's highest-grossing games recorded year-over-year daily active user increases during the 2025 Spring Festival, indicating sustained user engagement [4]. - Deferred revenue, which grew by a high-teens percentage year-over-year in 2024, is expected to positively impact the top line for the quarter [4]. Group 3: Advertising Services - Marketing services revenues increased by 17% year-over-year in Q4 2024, driven by AI enhancements and strong demand from various sectors including e-commerce and healthcare [5]. - Video Accounts Marketing Services revenues grew over 60% year-over-year, while Weixin Search ad revenue more than doubled, suggesting continued advertising growth [5]. Group 4: FinTech Sector - In the fintech segment, commercial payment revenues were flat year-over-year in the previous quarter, with transaction volumes rising but average selling prices under pressure [6]. - This trend is expected to continue in Q1 2025, with improving consumer demand but ongoing supply-side pricing pressures [6]. Group 5: AI Development - The AI-native application Yuanbao saw a 20-fold increase in daily active users from February to March, although revenue impact in Q1 is expected to be limited due to GPU supply constraints [7]. - Tencent significantly increased its investment in AI development in Q4 2024, with a 21% year-over-year rise in R&D expenses and a 421% increase in capital expenditures [8]. - The company plans to further boost R&D spending and capital expenditures in 2025 to enhance AI infrastructure and model development [8].

Financial Data and Key Metrics Changes - The company reported a 19% year-over-year revenue growth, with a procedure growth rate of 17% [70][68] - The install base growth was 15%, indicating strong demand for the company's products [71] - Gross margins were noted as not perfect, with guidance set between 15% to 17% [71] Business Line Data and Key Metrics Changes - The SP product line saw a significant procedure growth of 94% year-over-year, indicating strong adoption [72] - General surgery has become the largest segment, with healthy growth across all segments [74] - The company has over 11,000 platforms operating in clinical environments, with a total of approximately 18 million procedures performed lifetime [57] Market Data and Key Metrics Changes - The company experienced strength in US General Surgery, with great adoption by general surgeons [65] - There has been a decrease in bariatric surgery due to the rise of GLP-1 drugs, but the company believes this will stabilize over time [63] - The company is present in 70 countries, indicating a broad market reach [85] Company Strategy and Development Direction - The company focuses on delivering value for patients and ensuring that healthcare providers receive value from their products [45] - There is an emphasis on expanding indications and launching new platforms, including the da Vinci V [60] - The company aims to achieve digital excellence and enhance its supply chain capabilities [91] Management's Comments on Operating Environment and Future Outlook - Management acknowledged environmental uncertainties in China and the impact of healthcare worker strikes globally [62][64] - The company is optimistic about the future, with a focus on innovation and growth despite current challenges [61] - Management highlighted the importance of a mission-driven employee population to achieve long-term goals [49] Other Important Information - The company has a strong Net Promoter Score of 75, indicating high customer satisfaction [87] - The company is committed to leveraging artificial intelligence and data analytics to improve surgical outcomes [103] Q&A Session All Questions and Answers Question: Are there any issues with tariffs affecting product sales in China? - The company faces a 125% tariff on products manufactured in the U.S. and imported into China, which has a significant financial impact [96] Question: What is being done to minimize the impact of tariffs? - The company is evaluating its supply chain operations and workflows to mitigate the impact of tariffs while waiting for the trade environment to stabilize [101] Question: How is the company leveraging AI and data analytics? - The company is focused on accessing high-quality data and using it for customer hospital analytics to optimize surgical outcomes [106][107] Question: What are the company's capital allocation priorities over the next two to three years? - The company prioritizes organic investment in the business, looking for technology acquisition opportunities, and returning excess cash to shareholders opportunistically [118]

Financial Data and Key Metrics Changes - Total company revenue for Q1 was $44 billion, up 2% year over year, with EBIT adjusted at $3.5 billion and EBIT adjusted margins at 7.9% [26][27] - EPS diluted adjusted was $2.78, with EBIT adjusted slightly down from last year's Q1 performance [26][27] - The company updated its full year EBIT adjusted guidance to a range of $10 billion to $12.5 billion, reflecting a current tariff exposure of $4 billion to $5 billion [8][41] Business Line Data and Key Metrics Changes - U.S. deliveries were up 17% year over year, with market share growing to 17.2%, marking a nearly two-point improvement from the prior year [24][32] - EV sales achieved over 90% year-over-year growth, securing the number two position in the U.S. EV market [28][42] - The margin in North America was 8.8%, well within the target range of 8% to 10% [32][16] Market Data and Key Metrics Changes - The company gained almost two full points of market share year over year in the U.S., with a first-quarter share of the U.S. EV market at 10%, rising to 12% in March [15][32] - Sales of new energy vehicles in China increased by 53% year over year, contributing positively to equity income [33] Company Strategy and Development Direction - The company is focused on increasing U.S. manufacturing capability and supply chains, with a 27% increase in direct purchases in the U.S. for North American production since 2019 [9][10] - GM is moderating EV production to align with consumer demand and avoid heavy discounts, focusing on efficiency and cost reductions across the value chain [12][13] - The company is developing a next-generation software-defined vehicle platform and enhancing Super Cruise capabilities [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in adapting to the new trade policy environment and maintaining strong consumer demand for vehicles [14][40] - The company anticipates a $4 billion to $5 billion impact from tariffs, with expectations to offset at least 30% through self-help initiatives [41][67] - Management highlighted the importance of maintaining cost discipline and focusing on profitable growth despite challenges [30][46] Other Important Information - The company has invested $60 billion in U.S. manufacturing over the last five years and operates a network of 50 manufacturing plants [7][8] - GM Financial performed well with Q1 EBT adjusted of almost $700 million, in line with last year [33] Q&A Session Summary Question: Is there scope for the industry to receive relief on imported vehicle tariffs? - Management expressed hope for continued trade agreements and indicated that implementing offsets will take time [51][52] Question: How does the pace of investments in AV and AI change due to recent disruptions? - Management confirmed ongoing investments in AV and AI, with a focus on personal autonomy and leveraging partnerships to improve efficiency [60][61] Question: Can you clarify the tariff impact and mitigation strategies? - The estimated tariff impact is $4 billion to $5 billion, with a 30% offset from self-help initiatives, not including pricing increases [67][68] Question: How does the company manage vehicles assembled outside the U.S.? - Management stated that they have excess capacity in the U.S. and can adjust production quickly based on market conditions [92] Question: What are the expectations for capital expenditures and potential shifts in production? - The capital expenditure outlook remains unchanged at $10 billion to $11 billion, with decisions on production and capacity being made independently based on returns [95][96]

Financial Data and Key Metrics Changes - Total company revenue for Q1 was $44 billion, up 2% year over year, with EBIT adjusted at $3.5 billion and EBIT adjusted margins at 7.9% [29][36] - EPS diluted adjusted was $2.78, with EBIT adjusted slightly down from last year's Q1 performance [29][36] - U.S. deliveries increased by 17% year over year, with market share growing to 17.2%, marking a nearly two-point improvement from the prior year [26][36] Business Line Data and Key Metrics Changes - EV sales achieved over 90% year-over-year growth, securing the number two position in the U.S. market [31][36] - Sales of redesigned Chevrolet Suburban and GMC Yukon were up more than 30%, with Cadillac Escalade having its best-ever first quarter [19][36] - Fixed costs increased by $400 million year over year due to higher depreciation, warranty pressure, and labor costs [33][36] Market Data and Key Metrics Changes - In Q1, the U.S. EV market share was 10%, rising to 12% in March [17][36] - The company gained almost two full points of market share year over year in the U.S., outpacing every other major automaker [17][36] - Sales of new energy vehicles in China increased by 53% year over year, contributing to positive equity income [36] Company Strategy and Development Direction - The company is focused on increasing U.S. manufacturing capabilities and supply chains, with a 27% increase in direct purchases for North American production since 2019 [11][36] - Plans to moderate EV production to align with consumer demand and avoid heavy discounts offered by competitors [14][36] - Continued investment in battery cell manufacturing and sourcing U.S. materials for EV production [15][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in adapting to the new trade policy environment and maintaining strong consumer demand for vehicles [16][36] - The company expects EBIT adjusted guidance for the full year to be in the range of $10 billion to $12.5 billion, considering tariff impacts [44][36] - Management emphasized the importance of maintaining cost discipline and focusing on profitable growth despite challenges [49][36] Other Important Information - The company has invested $60 billion in the U.S. over the last five years and operates a network of 50 manufacturing plants [9][36] - A 25% vehicle import tariff was imposed, but U.S. content vehicles are not subject to this once administrative processes are implemented [37][36] - The company is continuing to evaluate its capital allocation policy while balancing investments and shareholder returns [49][36] Q&A Session Summary Question: Is there scope for the industry to receive relief on imported vehicle tariffs? - Management indicated that the environment remains fluid and they are hopeful for continued trade agreement discussions [54][56] Question: What is the plan for full mitigation of tariffs? - Management stated it will take time to implement manufacturing and supply chain moves, focusing on pricing discipline and cost reductions [55][57] Question: Can you provide details on the guidance and tariff impact? - The estimated tariff impact is $4 billion to $5 billion, with a 30% offset from self-help initiatives [70][72] Question: How does the company view potential pricing actions going forward? - Management emphasized a disciplined approach to pricing, which has led to market share gains without excessive discounting [73][74] Question: What goes into the 30% offset from self-help? - The offset includes increasing U.S. content, working with suppliers for compliance, and maintaining cost discipline [78][80] Question: What is the impact of potential changes in emissions regulations? - Management is monitoring the regulatory environment but is currently focused on compliance until changes are confirmed [84][86] Question: How has the company improved cash generation? - Strong vehicle demand, disciplined pricing, and effective inventory management have contributed to improved cash generation [110][111]

Financial Data and Key Metrics Changes - Seagate reported a 31% year-on-year increase in revenue and an 81% growth in non-GAAP gross profit dollars for Q3 2025 [5][13] - Non-GAAP EPS was $1.90, which is at the top end of the guidance range, despite a 7% sequential decline in revenue [13][20] - Non-GAAP gross margin expanded by 70 basis points sequentially to 36.2% and over 1,000 basis points year-on-year [16][20] Business Line Data and Key Metrics Changes - Nearline revenue represented approximately 90% of mass capacity volume, with shipments of 120 exabytes, down 5% sequentially but up 55% year-on-year [15] - Mass capacity revenue declined sequentially by $145 million to $1.7 billion, representing a 48% increase year-on-year [14] - Legacy product sales totaled $254 million, down 8% sequentially, reflecting expected seasonal trends [15] Market Data and Key Metrics Changes - Cloud nearline revenue and exabytes were up nearly 10% sequentially, almost doubling year-over-year amid a tight supply environment [8] - Demand for mass capacity storage aligns with the cloud CapEx investment cycle and ongoing data center infrastructure build-out to support AI transformations [8][10] - Nearline exabyte demand looks strong through calendar 2025, with visibility of demand extending into the first half of calendar 2026 [10] Company Strategy and Development Direction - The company is focusing on managing controllable factors while executing its aerial density-driven technology roadmap [7] - Seagate's HAMR-based Mosaic drives are positioned as the industry's only three terabyte per disk products, with shipments expected to ramp in the second half of calendar 2025 [7][12] - The company aims to transform its business model to prioritize profits and cash generation while capitalizing on the growth in data generation and value [23] Management's Comments on Operating Environment and Future Outlook - Management expects minimal impact from tariffs on fourth-quarter financial performance and is monitoring the situation closely [6][20] - The demand environment remains intact, particularly among global cloud customers, despite potential tariff measures affecting customer buying decisions [7][20] - The company anticipates free cash flow generation to improve sequentially through the rest of the calendar year [19][20] Other Important Information - The company returned $152 million to shareholders through dividends and ended the quarter with liquidity of $2.1 billion [19] - The debt balance was $5.1 billion at the end of March, with a net leverage ratio of 2.1 times [19] Q&A Session Summary Question: Understanding upside in revenue despite supply constraints - Management confirmed that the guidance for June would have remained the same a month ago, indicating predictability built through the build-to-order process [29][30] Question: Progress on HAMR qualifications and contributions - Management stated that HAMR is growing well, with one major CSP qualification almost complete and more in progress [35][36] Question: Visibility on customer demand and pricing - Management noted that build-to-order models provide visibility into demand, and they expect to negotiate higher prices as they transition to higher capacity products [42][43] Question: Impact of tariffs on financial model - Management indicated that passing through tariff-related costs would be a last resort, and they are focused on maintaining margins to reinvest in the business [50][52] Question: Expectations for revenue growth and gross margin in the back half of the year - Management expressed confidence in revenue growth and profitability, with no reason to change expectations based on current visibility [58][60]

Financial Data and Key Metrics Changes - Seagate reported a 31% year-on-year increase in revenue, reaching $2.16 billion, and an 81% growth in non-GAAP gross profit dollars [6][15] - Non-GAAP gross margin expanded by 70 basis points sequentially to 36.2%, and non-GAAP operating margin increased to 23.5% of revenue [15][18] - Non-GAAP EPS was $1.90, at the top end of the guidance range, with free cash flow generation increasing to $216 million compared to $150 million in the prior period [20][21] Business Line Data and Key Metrics Changes - Alt drive revenue was $2 billion, down 8% sequentially, while mass capacity revenue declined by $145 million to $1.7 billion, representing a 48% increase year-on-year [16] - Nearline represented roughly 90% of mass capacity volume, with shipments of 120 exabytes, down 5% sequentially but up 55% year-on-year [17] - Sales of legacy products totaled $254 million, down 8% sequentially, while revenue from other businesses remained flat at $157 million [17] Market Data and Key Metrics Changes - Cloud nearline revenue and exabytes were up nearly 10% sequentially, almost doubling year-over-year amid a tight supply environment [10] - Demand for mass capacity storage is aligned with the cloud CapEx investment cycle and ongoing data center infrastructure build-out to support AI transformations [10][11] - Nearline exabyte demand looks strong through calendar 2025, with visibility of demand extending into the first half of calendar 2026 [12] Company Strategy and Development Direction - Seagate is focusing on managing controllable factors while executing its aerial density-driven technology roadmap, which enhances customer value [9] - The company is ramping up shipments of high-capacity drives and expects significant increases in HAMR product shipments in the coming quarters [13][14] - Seagate's transformation towards a profit and cash generation-focused business model is expected to capitalize on the growing demand for mass capacity storage [25] Management's Comments on Operating Environment and Future Outlook - Management expects minimal impact from trade policy changes on fourth-quarter financial performance and is monitoring the situation closely [8] - The company anticipates continued robust demand for high-capacity nearline products, with revenue forecasted to be in the range of $2.4 billion for June [23] - Management remains optimistic about the long-term growth prospects driven by increasing data generation and the value of data [25] Other Important Information - Seagate's debt balance was $5.1 billion at the end of March, with a net leverage ratio of 2.1 times, and plans to continue reducing debt [22] - The company returned $152 million to shareholders through dividends and maintained ample liquidity of $2.1 billion [21] Q&A Session Summary Question: Can you help us understand how and where you got some of the upside in the quarter with the supply shortage? - Management indicated that the predictability built through the build-to-order process allowed them to guide the same revenue expectations a month ago, despite previous operational issues being resolved [29][30] Question: Where are you with HAMR qualifications and how much did it contribute to the March results? - Management confirmed that HAMR is growing well, with significant contributions expected as qualifications progress [34][36] Question: How has your visibility improved regarding new demand from neo clouds? - Management noted that build-to-order agreements provide better visibility into demand, and customers are making data center investments due to the importance of data infrastructure [40][41] Question: Why are margins not seeing more upside in June despite expected increases in nearline? - Management explained that while nearline and cloud demand is expected to be higher, pricing dynamics and contract negotiations will influence margin outcomes [43][45] Question: How do you see the impact of tariffs on your financial model? - Management stated that passing through tariff-related costs would be a last resort, and they are focused on maintaining margins through value-added negotiations [50][51] Question: What is the expected contribution of HAMR to your bits as you progress through calendar 2025? - Management expressed confidence in the increasing presence of HAMR drives as qualifications complete, contributing significantly to future growth [73] Question: How do you see the impact of emerging AI inference storage on your long-term TAM? - Management highlighted the potential for increased storage demand driven by AI applications, emphasizing the importance of data infrastructure [64][66]