Core Viewpoint - In the first half of 2025, the company reported a slight decline in revenue due to downstream customer inventory adjustments, while net profit saw significant growth driven by innovative products and cost management [2][3]. Financial Performance - Revenue for the first half of 2025 was 2.251 billion, a decrease of 0.2% compared to the same period last year [3]. - Net profit attributable to shareholders was 431 million, an increase of 35.7% year-on-year [2][3]. - Net profit excluding non-recurring gains and losses was 340 million, up 35.74% year-on-year [2][3]. - Total profit for the period was 481 million, reflecting a 27.17% increase compared to the previous year [3]. - The net cash flow from operating activities was 437 million, down 17.54% from the previous year [3]. - The company's net assets at the end of the period were 9.020 billion, a 3.42% increase from the end of the previous year [3]. Product and Market Development - The company's profitability improved due to the expansion of innovative products such as ultrasonic fingerprint sensors, light sensors, and security solutions, which began commercial use in Q4 2024 and continued to grow in H1 2025 [2][4]. - The gross margin increased from 42% to 43.3% year-on-year, driven by lower chip procurement costs and new product mass production [4]. - The company maintained effective cost control while keeping R&D and other expenses stable year-on-year [4]. - The under-display light sensor integrates ambient light, color temperature measurement, and proximity sensing, suitable for various devices, with new products expected to launch in the second half of the year [4]. - The small-sized touch control chips gained traction with major brands like Samsung, vivo, OPPO, Xiaomi, and others, benefiting from the increasing penetration of OLED screens in mobile devices [5].

Core Points - The U.S. government is set to implement a new AI diffusion framework aimed at maintaining its competitive edge in AI development by restricting the export of advanced chips [1][2] - Companies like NVIDIA and Oracle are accelerating the shipment of chips and servers to data centers outside the U.S. to mitigate the impact of the new regulations [1] - The new rules require that 50% of a company's total computing power must be located in the U.S., and 75% must be in the U.S. or among 18 allied countries, limiting other countries to only 7% [2] Group 1 - The AI diffusion framework will require U.S. government approval for exporting NVIDIA's advanced chips to most countries [2] - Cloud service providers will need to closely monitor the destinations of their AI chip shipments due to the new regulations [2] - The complexity of the new rules lies in measuring the GPU capacity of cloud service providers across different countries, focusing on total processing power rather than the number of GPUs [2] Group 2 - The new regulations have faced criticism from companies, including NVIDIA, and some Republican senators, who argue it may harm U.S. leadership in AI and chip innovation [3] - NVIDIA's spokesperson stated that the rules benefit foreign competitors and do not encourage investment in U.S. technology [3] - The Trump administration is reportedly considering modifications to the new rules to alleviate their most severe impacts [4]