Financial Data and Key Metrics Changes - MPS achieved record quarterly revenue of $737.2 million, which is 10.9% higher than Q2 2025 and 18.9% higher than Q3 2024 [4][5]. Business Line Data and Key Metrics Changes - Revenue growth was observed across all end markets, with a notable expansion in the automotive customer base, including a major Tier 1 supplier adopting MPS for its next-generation ADAS solution [4][5]. - The company secured its first design win for a full battery management system solution on a robotics platform, marking a shift from being a chip-only supplier to a full-service solutions provider [4][5]. Market Data and Key Metrics Changes - The enterprise data segment is expected to be flat to down 20%, but recent performance has been better than anticipated, with additional customers contributing to momentum [9][10]. - The automotive market is seeing increased adoption of ADAS, with expectations for significant growth in the coming years as more vehicles, including combustion engine cars, adopt these technologies [22][23]. Company Strategy and Development Direction - MPS is focused on innovation and solving customer challenges, investing in new technology, and diversifying end market applications and global supply chains to capture future growth opportunities [5]. - The transition from a silicon-based supplier to a solutions provider is expected to improve gross margins over time, although the process may be gradual [24][43]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to the fluid geopolitical and macroeconomic environment, maintaining a long-term growth strategy [5]. - The company anticipates continued growth in the enterprise data segment, projecting a 30%-40% increase in 2026, primarily in the second half of the year [74]. Other Important Information - The company is currently experiencing a dynamic market with improved predictability in customer orders, although visibility into future quarters remains limited [37][68]. - MPS is actively engaging in the robotics sector, predicting a rise in battery management system solutions as the market for robotics expands [30][32]. Q&A Session Summary Question: Guidance on end market growth expectations - Management noted better-than-expected performance in enterprise data and industrial markets, with a layering of additional customers providing momentum [9]. Question: Thoughts on the AI market and competitive landscape - Management expressed a cautious approach to the AI market, focusing on demonstrating superior technology and customer service rather than chasing trends [12]. Question: Automotive market and ADAS revenue contribution - Management indicated that ADAS currently contributes less than half of automotive revenues but expects significant growth as more vehicles adopt these technologies [20][22]. Question: Gross margin outlook - Management expects gross margins to remain stable in the mid-55% range for the foreseeable future, with potential improvements as the company transitions to more solution-based offerings [41][43]. Question: Enterprise data segment growth drivers - Management highlighted the growth in module business and the high power density products as key drivers for future growth in the enterprise data segment [73][74]. Question: Competitive positioning in new materials - Management confirmed ongoing development in silicon carbide and gallium nitride, while also emphasizing the advancements in traditional silicon technologies [81]. Question: Revenue ramp for new solutions - Management indicated that the revenue ramp for new solutions, particularly in the automotive sector, is expected to begin in 2026, with significant growth anticipated thereafter [31][60].

Core Viewpoint - The company has implemented a "Quality Improvement and Efficiency Enhancement" action plan for 2025, focusing on enhancing operational efficiency and maintaining shareholder interests, resulting in significant revenue growth and product development advancements [1]. Group 1: Business Performance - In the first half of 2025, the company achieved operating revenue of 1,523.66 million yuan, a year-on-year increase of 79.49%, with quarterly revenue reaching new highs [1]. - The automotive electronics sector showed robust demand, contributing to revenue growth across all downstream markets [1]. - Research and development expenses for the first half of 2025 amounted to 361.28 million yuan, up 13.18% year-on-year, with a 51.43% increase when excluding share-based payment impacts [1]. Group 2: Product Development - The company launched over 3,600 product models, including new generation LIN chips and Class D audio amplifier chips, to meet the demands of high-barrier markets like automotive electronics and energy [2]. - External sales revenue exceeded 170 million yuan in the first half of 2025, reflecting a growth of over 30% year-on-year [2]. - The company has initiated mass production of several new products, including a 4-channel 75W Class D audio amplifier and various automotive control chips [2][3]. Group 3: Market Expansion and Sales - The company has established a dedicated sales operation department to enhance sales efficiency and service quality, achieving a shipment volume of 312 million units in the automotive electronics sector in the first half of 2025 [3]. - The cumulative shipment volume in the automotive electronics sector has surpassed 980 million units [3]. Group 4: Financial Management - The company has approved the use of 719.27 million yuan of remaining funds to permanently supplement working capital and has set aside up to 9 billion yuan of idle funds for cash management [5]. - The company has implemented effective inventory management strategies to optimize stock levels and reduce costs [6][7]. Group 5: Governance and Compliance - The company has strengthened its internal control systems and conducted training for board members to enhance governance capabilities [8][10]. - The board has adjusted the number of independent directors to improve governance structure and compliance with regulations [9]. Group 6: ESG and Investor Relations - The company has actively disclosed its ESG practices and received high ratings, reflecting its commitment to sustainable development and social responsibility [11]. - The company has established diverse communication channels with investors, engaging over 100 institutional investors to enhance trust and transparency [12]. Group 7: Shareholder Returns - The company emphasizes a stable profit distribution policy, aiming to balance performance growth with shareholder returns, despite reporting a net loss of 78.01 million yuan in the first half of 2025 [13][14].