Summary of Perfect Corp (PERF) FY Conference Call - August 26, 2025 Company Overview - Perfect Corp is a Taiwan-based company with approximately 400 employees, primarily focused on R&D in the beauty and fashion app space [2][3] - The company was founded a decade ago and initially operated as an app maker before transitioning to B2B software solutions for beauty brands [4][5] Revenue Breakdown - Revenue sources: Approximately 50% from the US, 30% from the EU, and 20% from Japan [4][5] - Initial revenue breakdown at listing (2022): 75% B2B and 25% B2C; as of 2023, it has shifted to roughly 50% B2B and 50% B2C, with projections for 2024 indicating 60% B2C and 40% B2B [7][8] - B2C apps operate on a freemium model, with subscription prices increasing from $5-$7 to $79 per year [8][9] Product Offerings - B2C apps include "You Can Makeup" and "You Can Perfect," focusing on photo editing and virtual try-ons [6][9] - B2B services include virtual try-ons for makeup and skin analysis, with clients such as Estee Lauder, LVMH, and Chanel [7][19] - The company has over 800 brand clients and 914,000 SKUs running on its software, showing a growth of over 20% in brand clients since 2021 [19][20] Financial Performance - 2024 growth rate: 12.5%; guidance for 2025 is 13% to 14.5% [25][26] - Gross margin decreased from 79% to 75% year-over-year due to lower margins in B2C compared to B2B [26][27] - Positive operating cash flow with $167 million in cash and cash equivalents [28] Strategic Initiatives - Recent acquisition of Wana for $6 million to enhance offerings in AIAR technology for luxury brands [24] - Focus on reinvesting in R&D for premium Gen AI features and expanding B2B client base [29][30] Market Challenges - The company faces macroeconomic pressures affecting clients like Estee Lauder and LVMH, leading to tighter budgets [42] - Currency exchange issues due to the appreciation of the Taiwanese dollar impacting operational costs [28][29] Competitive Landscape - The company maintains a 90% retention rate in B2B, indicating strong client loyalty [47] - Differentiation from competitors lies in continuous R&D investment and user-friendly app design [44][45] Technology and Innovation - The company is exploring advancements in 3D virtual try-ons for clothing, although current technology is not yet ready for full implementation [37][38] - Color calibration challenges exist across different devices, particularly on Android, requiring significant investment in accuracy [50][51] Conclusion - Perfect Corp is positioned for growth with a strong focus on B2C expansion and innovative technology solutions, despite facing market challenges and competitive pressures [30][42]

Group 1: General Information - The research object is Biyi Co., Ltd., which belongs to the household appliance industry [17] - The reception time was on August 26, 2025, and the listed company's reception staff was the financial director Jin Xiaohong [17] Group 2: Research Institutions - The reception type was a public conference call, and the number of relevant institutional personnel and others was 2 [20] Group 3: Main Content Financial Performance - In the first half of 2025, the company achieved an operating income of 1.157 billion yuan, a year-on-year increase of 34.53%; the net profit attributable to shareholders of the listed company was 53.7122 million yuan, a year-on-year decrease of 21.04% [24] Market Competition - Affected by geopolitical, global economic situations, and national subsidy policies, the competition in the small household appliance market is intensifying [24] Capacity Building - The Thai factory overseas has successfully taken over some orders and completed effective deliveries since early April; the first-phase project of the Zhongyi factory in China has entered the project acceptance stage, and the second-phase project is being promoted simultaneously [24] R & D Progress - The self-developed steam-baking-frying all-in-one machine has initially tried brand direct sales; the R & D progress of each generation of the new product, the sweeping robot, is accelerating, and the first-generation product has been delivered [24] Sales Expansion - The company has vigorously expanded new customers and obtained an intention order from SharkNinja, which is expected to be produced simultaneously in domestic and foreign factories [24] Market Share by Region - Europe accounts for about 59%, Asia about 20%, North America about 11%, and the rest of the regions are relatively scattered [25] Coffee Machine Expansion - The coffee machines currently include Xiaomi capsule coffee machines, semi-automatic Italian coffee machines, and the coffee machines of the self-owned brand Lumo. It has also newly received orders from SharkNinja, and its performance next year can be anticipated [25] Merger and Acquisition Plan - The company currently focuses on the in-depth development of its main products such as air fryers, coffee machines, and environmental electrical products, and uses AI sweeping robots and AR glasses as side products to find breakthrough points [25]

本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條刊發。 茲載列藍思科技股份有限公司（「本公司」）於深圳證券交易所網站(www.szse.cn) 及巨潮資訊 網(www.cninfo.com.cn)刊登的公告如下，僅供參閱。 承董事會命 藍思科技股份有限公司 董事長 周群飛 香港，2025年8月25日 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不負責，對其準確性或完整性亦不 發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等內容而引致之任何損失 承擔任何責任。 Lens Technology Co., Ltd. 藍 思 科 技 股 份 有 限 公 司 （ 於中華人民共和國註冊成立的股份有限公司） （股份代號：6613） 海外監管公告 於本公告日期，本公司董事會成員包括執行董事周群飛女士、鄭俊龍先生及饒橋兵先生；及獨立非執行董事 萬煒女士、劉岳先生、田宏先生及謝志明先生。 蓝思科技股份有限公司 2025 年半年度报告 定 2025-005 2025 年 8 月 蓝思科技股份有限公司 2025 年半年度报告全文 第一节 重要提示、目录和释义 公司董事会、监 ...

Investment Rating - The investment rating for the company is "Outperform the Market" [6] Core Views - The company's profitability has significantly improved, with a revenue of 37.55 billion yuan in 1H25, a year-on-year decrease of 7.0%, while net profit attributable to the parent company increased by 15.7% to 1.42 billion yuan [1] - The company is making strategic acquisitions to enhance its capabilities in the AR sector, including the acquisition of Shanghai Aolai and investments in precision components [2][3] - The forecast for net profit from 2025 to 2027 is raised, with expected figures of 3.4 billion, 4.1 billion, and 5.3 billion yuan respectively, reflecting a growth rate of 26%, 22%, and 29% [4] Summary by Sections Financial Performance - In 1H25, the company achieved a revenue of 375.5 billion yuan, with a gross margin of 13.5% and a net margin of 3.7% [1] - The revenue breakdown shows smart hardware at 20.34 billion yuan, smart acoustic systems at 8.32 billion yuan, and precision components at 7.6 billion yuan, with respective year-on-year changes of -2.5%, -34.9%, and +20.5% [1] Strategic Acquisitions - The company plans to acquire 100% of Shanghai Aolai to strengthen its position in the optical waveguide sector, enhancing its core competitiveness [2] - The company is also set to invest 9.5 billion yuan to acquire Mia Precision and Changhong Industrial, which will significantly expand its precision component business [3] Profit Forecast and Valuation - The company has adjusted its profit forecast upwards, expecting net profits of 3.4 billion, 4.1 billion, and 5.3 billion yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 31, 28, and 20 [4][5]

Group 1 - The company announced its subsidiary GoerTek Optics plans to acquire 100% equity of Shanghai Aolai through a share issuance, which will enhance its competitive edge in the wafer-level micro-nano optical device sector [1] - The acquisition is expected to complement the strengths of both companies, significantly boosting GoerTek's core competitiveness and alleviating financial pressure from independent investments [1] - The acquisition will help GoerTek accelerate the formation of mature production capacity in relevant fields, supporting AI smart glasses and AR integrated business [1] Group 2 - GoerTek has established a strong position as a global leader in XR glasses solutions, with advantages in optical components, waveguides, core algorithms, and smart device design and manufacturing [2] - The AI smart glasses ecosystem is rapidly improving, with major brands expected to launch new products, which will likely lead to sustained high sales growth for the company [2] - The company is well-positioned to benefit from the increasing demand for AI+AR glasses, as international giants are expected to accelerate AR industry development from the second half of this year [2] Group 3 - The company announced plans to acquire precision metal structure component company Mia Precision, which is expected to broaden and complement GoerTek's product offerings and enhance overall profitability [3] - The acquisition will deepen cooperation with major international clients and support the company's zero-sum synergy strategy, enhancing product lines and profitability [3] - Strengthening the technical advantages in precision structure components is crucial for consolidating the company's vertical integration capabilities [3] Group 4 - The company maintains a dual-driven strategy of smart manufacturing and precision manufacturing, aiming to build an AI industry ecosystem with a focus on new terminal products [3] - The company expects to see an increase in the shipment volume of various new terminal products while optimizing product structure [3] - The planned spin-off of GoerTek Micro for a Hong Kong listing will strengthen its layout in the microelectronics field, enhancing profitability in the overall business [3] Group 5 - The company forecasts net profits of 3.2 billion, 4.1 billion, and 5.1 billion yuan for 2025-2027, with potential significant profit increases if the acquisition is successful [4] - The company maintains a "strong buy" rating based on these projections [4]

Group 1: Back-to-School Economy - The "back-to-school economy" is experiencing a surge as various learning supplies and electronic products enter a peak sales season [1] Group 2: Sales of Stationery and Educational Materials - In Sanya, Hainan Province, stationery sales have increased by nearly 50% since August, with unique designs and blind boxes being particularly popular among students [2] - Educational materials, including tutoring books and practice workbooks, are in high demand, with parents and students favoring supplementary reading materials [2] Group 3: Hot Sales of 3C Products - The demand for digital products is high, with students eager to upgrade their devices due to various promotional measures [4] - Sales of laptops, tablets, and smartwatches have seen year-on-year growth of 184%, 129%, and 94% respectively during the back-to-school season [4] - Products integrating AI and AR technologies are gaining attention, with students showing interest in AR glasses for their functionalities [5] Group 4: Practical Consumption Trends - Parents are adopting a more pragmatic approach to spending, focusing on the practicality and cost-effectiveness of products [6] - There is a trend towards guiding children in making reasonable consumption choices, with parents comparing prices and seeking subsidies to make purchases more affordable [6]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is accelerating the mass production of AR technology through multiple rounds of investment, indicating a comprehensive layout in the AR sector [9] - The company has achieved self-sufficiency in key AR components, including Micro-LED and optical waveguides, positioning itself as a leading ODM company with deep cooperation with major clients [9] - The forecast for the company's net profit from 2025 to 2027 is 34 billion, 44 billion, and 50 billion RMB, with corresponding P/E ratios of 23, 18, and 16 times [9] Financial Projections - Total revenue is projected to be 98,574 million RMB in 2023, with a slight increase to 100,954 million RMB in 2024, followed by a decrease to 100,222 million RMB in 2025, and then growth to 117,011 million RMB in 2026 and 132,631 million RMB in 2027 [1][10] - The net profit attributable to the parent company is expected to recover from 1,088 million RMB in 2023 to 2,665 million RMB in 2024, and continue to grow to 3,444 million RMB in 2025, 4,387 million RMB in 2026, and 4,951 million RMB in 2027 [1][10] - The latest diluted EPS is forecasted to increase from 0.31 RMB in 2023 to 0.76 RMB in 2024, reaching 1.42 RMB by 2027 [1][10]

Investment Rating - The report maintains a "Buy" rating for the company [6]. Core Views - The collaboration with Sunny Optical through equity swap enhances the company's competitiveness in AR waveguide technology, which is crucial for the future development of AI glasses and AR headsets [1][2]. - The acquisition of Shanghai Aolai is expected to alleviate financial pressure and accelerate the formation of mature production capacity, allowing the company to seize market opportunities [2]. - The company is well-positioned in the XR optical field, with significant first-mover advantages and ongoing investments in R&D to support the growth of AR smart glasses and AI integration [3]. Financial Projections - The company is projected to achieve revenues of 101.1 billion, 115.1 billion, and 130.0 billion RMB for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 0.1%, 13.9%, and 12.9% [4][5]. - The net profit attributable to the parent company is expected to reach 3.3 billion, 4.1 billion, and 4.8 billion RMB for the same years, reflecting growth rates of 24.0%, 23.1%, and 17.1% [4][5]. - The current price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are projected to be 31, 26, and 22 times, respectively [4].

Investment Rating - The report maintains a "Buy-A" investment rating for the company [5] Core Views - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 577 million yuan, a year-on-year growth of 52.54%, and net profit of 103 million yuan, up 110.27% compared to the same period last year [1][2] - The demand for micro-prisms, automotive electronics, and glass wafers remains strong, contributing to the growth in sales across the company's main product lines [2] - The company is increasing its R&D investment, focusing on high-end products such as AR optical components and silicon carbide wafers, with R&D expenses rising by 22.28% year-on-year to approximately 56.23 million yuan [3] Summary by Sections Financial Performance - For the first half of 2025, the company achieved a revenue of 577 million yuan and a net profit of 103 million yuan, reflecting substantial growth compared to the previous year [1][2] - The projected revenues for 2025, 2026, and 2027 are estimated at 1.48 billion yuan, 1.89 billion yuan, and 2.42 billion yuan respectively, with net profits expected to be 366 million yuan, 516 million yuan, and 669 million yuan [4][9] Market Demand - The company is actively exploring demand in consumer electronics, automotive intelligent driving, and optical communication sectors, leading to increased sales in optical prisms, glass wafers, and aspherical glass lenses [2] - The strategic partnerships with major clients have supported the stable development of the glass wafer business [2] Research and Development - The company is enhancing its R&D capabilities, with a focus on AR products and high-precision optical components, and has expanded its R&D team to 334 personnel, accounting for 11.91% of total employees [3] - The company has obtained new patents, including 2 invention patents and 6 utility model patents, increasing its total to 17 invention patents and 76 utility model patents [3]

Core Viewpoint - The company, GoerTek Inc. (歌尔股份), has signed a memorandum of understanding to acquire 100% equity of Shanghai Aolai Micro-Nano Optics Co., Ltd. and Shanghai Aolai Micro-Nano Optoelectronic Information Technology Co., Ltd. (collectively referred to as "Shanghai Aolai") through a share issuance by its subsidiary, GoerTek Optical Technology Co., Ltd. This acquisition aims to enhance GoerTek's competitive edge in the micro-nano optical device sector [1][2]. Group 1 - The transaction will result in Shanghai Aolai becoming a wholly-owned subsidiary of GoerTek Optical, with the original shareholders of Shanghai Aolai holding approximately one-third of GoerTek Optical's shares, while the original shareholders of GoerTek Optical will hold about two-thirds [1]. - Shanghai Aolai, a subsidiary of Sunny Optical Technology (Group) Co., Ltd., specializes in wafer-level micro-nano optical devices, including optical waveguides and super-surface devices, and has a strong technical team and competitive technology in the field [1]. Group 2 - The acquisition is expected to create synergies between GoerTek Optical and Shanghai Aolai, significantly enhancing GoerTek Optical's core competitiveness and consolidating its market position in the optical waveguide and wafer-level micro-nano optical device sectors [2]. - By merging with Shanghai Aolai through share issuance, GoerTek Optical can acquire existing fixed assets and alleviate financial pressures associated with independent investments, while accelerating the establishment of mature production capacity in relevant fields [2]. - The transaction will enable the integration of high-quality customer resources and project resources in AI smart glasses and AR augmented reality sectors with GoerTek Optical's core competencies in precision optical devices, promoting collaborative development of both companies' businesses [2].