Group 1 - The market is primarily focused on tariff disruptions and the pace of interest rate cuts in the US [1][2] - On August 12, President Trump signed an executive order to extend the 24% tariffs for another 90 days, which aligns with market expectations [1] - The "secondary tariffs" issue remains a short-term concern, as the Trump administration imposed a 25% tariff on Indian products due to India's purchase of Russian energy [1] Group 2 - The July US CPI data was lower than expected, with core CPI slightly exceeding expectations, leading to increased concerns about economic recession [2] - The decline in food and energy prices contributed to the overall weakness in CPI, while services, particularly summer travel, were significant contributors to CPI increases [2] - Despite concerns about tariffs causing long-term inflation pressure, the actual inflation growth rate is not as high as anticipated, with a forecasted year-end CPI of 3.2% [2]

Core Viewpoint - The company reported a recovery in revenue and gross margin to average levels in Q1, benefiting from a balanced supply-demand structure in the LED downstream market and reduced price competition, but maintains a cautious outlook for the second half of the year due to uncertainties in international situations and unclear tariff policies [1][2] Group 1: Q1 Performance - In Q1, the company's revenue and gross margin returned to average levels, primarily due to a balanced supply-demand structure in the LED downstream market, which effectively reduced price competition [1] - The product mix has been continuously optimized, with capital expenditures and expenses showing a downward trend [1] - The proportion of non-visible light and automotive products in the product mix increased, accounting for 15% and 14% of revenue, respectively, while the share of lower-margin backlighting and lighting products decreased [1] Group 2: Outlook for Q2 and Beyond - The company expects Q1 revenue to remain flat compared to the same period last year, influenced by tariff impacts and one-time revenue from the previous year [2] - Due to the unpredictable impact of tariffs, increased uncertainties in international situations, and exchange rate fluctuations, the company has adopted a more conservative view on its previously anticipated single-digit growth for the year [2] - The planned factory establishment in Thailand is currently on hold due to unclear tariff policies, but the company hopes to realize the initial vision in the future [2] Group 3: Future Product Growth - For 2025, non-visible light and visible light segments are expected to grow above the average growth rate, while the lighting and backlighting segments are projected to remain flat [2] - The flat growth in the backlighting segment is attributed to the strategic disposal of certain products to other investment companies last year [2] - The company is aware of demands from clients in Europe and the U.S. for supply chains to have "non-mainland China production capacity" and will continue to monitor changes in international trade situations to meet customer needs and market challenges [2]