Group 1: Company Overview and Market Position - The company has established partnerships with major domestic clients and is actively expanding into international markets [1][2] - The 200G and below low-speed optical modules have achieved stable mass production, while 400G/800G high-speed modules are in the sample testing phase with expected small batch shipments in Q2 2026 [1][2] Group 2: Strategic Development and Capacity Expansion - The company adopts a customer demand-driven approach for capacity expansion, focusing on small batch production to explore market needs before scaling up [3] - A stepwise development strategy is employed, starting with mature products to build customer resources and industry experience before moving to high-value products [3] Group 3: Importance of 200G and Below Optical Modules - The decision to prioritize 200G and below optical modules is based on their strong demand stability and significant economies of scale, which enhance market competitiveness [5] - Stable mass production of these modules supports the development of high-speed module production lines and improves overall operational efficiency [5] Group 4: Core Competencies and Innovations - The company has strong capabilities in scaling production and converting laboratory technologies into market-ready products, which benefits the optical communication business [6] - Emphasis on innovation and cost structure optimization through continuous process improvements and automation enhances competitive advantages [7] Group 5: Micro LED Technology Strategy - The Micro LED optical interconnect technology addresses key issues in high bandwidth and high-speed scenarios, positioning the company for long-term growth in optical communication [8][10] - Current focus is on achieving breakthroughs in core light source technology and building intellectual property barriers for future industrialization [10] Group 6: Smart Terminal Business Outlook for 2026 - The smart terminal business is expected to recover in 2026 due to global layout strategies, automation improvements, and diversification of product offerings [10]

Group 1: Technology and Product Development - The company has made significant breakthroughs in optical modules and optical chips, with traditional 100G and below products achieving mass shipments to leading equipment manufacturers, steadily increasing market share [1] - The company has successfully completed the R&D project for 400G/800G high-speed modules, which are now in the customer sample verification phase [1] - The 25G DFB laser chip has reached mass production capability, and the 2.5G optical chip is advancing towards mass production to achieve core material independence [2] - The company plans to launch 50G and above DFB chips and CW light sources by 2026, focusing on Micro LED technology to meet AI deployment needs for low latency, high bandwidth, and low power consumption [2] Group 2: International Operations and Market Strategy - The company's overseas factory capacity utilization has significantly improved, with the Vietnam base's annual production capacity reaching 11 million units, effectively meeting order demands from North America and Europe [3] - The establishment of stable overseas factories and local market strategies has ensured a steady supply of overseas orders, reducing trade risks and enhancing delivery flexibility [3] Group 3: Market Position and Competitive Advantage - The company is focusing on upgrading its LED industry chain amid structural pressures from traditional markets and high-end application demands, with Mini/Micro LED technologies showing strong growth [4] - The company’s Mini RGB chip is the smallest commercially available chip in the industry, and its Mini/Micro LED display module capacity has reached 25,000 square meters per month, maintaining a leading position in the high-end direct display market [4][5] - The Mini/Micro LED product market share exceeds 85% in the P1.5 and above category, positioning the company as a leader in the LED chip segment [5] Group 4: Transition to High-End Manufacturing - The company is transitioning from traditional manufacturing to high-end manufacturing, focusing on compound semiconductors and optical communication chips to build future core competitiveness [5] - The company is pursuing multiple technology routes, including enhancing Mini/Micro LED technology, advancing the R&D of 25G DFB laser chips, and exploring Micro optical interconnect technology for computing scenarios [5] - The company aims to strengthen its differentiated competitive edge through the "Orange Star Dream Factory" platform, enhancing collaboration across the industry chain [5]