Group 1: Future Development Trends - The company will focus on deep integration of optical core technologies and application scenarios, actively seizing market opportunities and continuing strategic layout in 2025 [2] - Key areas of focus include: - Security field: Despite a slowdown in traditional security market growth due to macro policies, there is still significant development space in the broader security sector. The company aims to strengthen its advantages in security lenses and expand into high-end overseas security markets and domestic consumer markets [3] - New display field: Early investments in AR/VR, aiming to build capabilities in key processes and equipment for AR optical machines and optical waveguide bonding [3] - Intelligent driving field: Continuous development in light perception and radar perception technologies, with a focus on high-end overseas markets for vehicle-mounted lenses [3] - Infrared lens field: Rapid growth in recent years, with a completed acquisition of Xi'an Weipu in 2024, establishing a research center in Xi'an to enhance technological reserves and market competitiveness [3] Group 2: Strategic Partnerships and Collaborations - The partnership with Yiwentech is based on strategic synergy and technological complementarity, with both companies' development directions highly aligned [4] - The company is actively expanding its market for AR products, establishing friendly partnerships with well-known domestic AR/VR companies such as Dapeng, Xiaopai, Liangliang Vision, and Nader [6] Group 3: Performance and Financial Outlook - In the first half of 2025, AR product shipments showed steady growth, with expectations for continued increases in the second half of the year as new technology solutions are mass-produced and market demand rises [7] - The company reported a loss in the first half of 2025 due to significant investments in independent R&D projects and business undertakings, impacting net profit. Management is implementing strategic adjustments to focus on core technology projects and optimize operational efficiency to improve profitability [8]

Group 1: Governance Structure Adjustment - The transition from the sixth to the seventh board of directors includes key personnel changes, with Li Xiayun appointed as the new chairman [7][8] - The management team aims to create a global, professional, and youthful leadership structure [9][10] Group 2: Key Leadership Focus Areas - Founder Lin Min emphasizes the importance of management team succession and talent development, supporting long-term strategic planning and global expansion [12] - New chairman Li Xiayun outlines the "15th Five-Year" strategic plan, focusing on establishing a dual-circulation operational system and becoming a leading global AR optical display solution provider [17][26] Group 3: Strategic Goals and Initiatives - The core objectives include building a resilient dual-circulation operational system and becoming a key strategic partner for major clients in optical components and modules [26][36] - The company plans to enhance its product matrix and transition from component solutions to display optical module solutions [32][33] Group 4: Support System Development - The organization aims to construct a management system based on "one crystal, two circulations, three platforms, four core assets, and five value levers" to support strategic implementation [38] - Emphasis on technology and market development to enhance collaborative capabilities and support strategic goals [39]

Business Overview - The company, established in 2002, initially focused on security monitoring and later expanded into the high-end camera market, maintaining a significant market share in Japan [2]. - Transitioned to smartphone business due to rapid smartphone development, entering the North American supply chain in 2012 and evolving into a strategic technology partner for major clients [2][3]. - The company has built six production bases, with significant investments in Vietnam, where a second phase is expected to commence production in the second half of 2023 [2]. Growth Strategies - The company has identified three growth curves: 1. Smartphone business as the first growth curve 2. Automotive electronics as the second growth curve 3. AR glasses as the third growth curve [3][5]. - The smartphone segment, particularly the IRCF infrared cutoff filter, remains a major revenue source, with a strong market presence in the Android client segment [4]. Automotive Electronics - The automotive electronics segment includes products like AR-HUD and laser radar window components, with a leading market share in the domestic AR-HUD market [5]. - Despite pricing pressures in the domestic market, the penetration rate of HUDs continues to rise, especially for AR-HUDs, indicating potential for improved profitability as overseas clients ramp up production [5]. AR Glasses Development - The AR glasses segment is still in the R&D phase, with significant potential due to high hardware costs [5][9]. - The company is focusing on developing core optical components for AR glasses, with ongoing collaborations with leading tech firms [9][10]. Future Outlook - The year 2025 is seen as a pivotal year for the company, marking a strategic transition and the opening of new development avenues [6]. - The company aims for a revenue growth target of 0% to 30% in 2025, indicating a focus on strategic adjustments over the next 1-2 years [11].