Group 1 - The company hosted a research meeting with nine institutions, including asset management and securities firms, to discuss its business operations and strategies [1] - The company reported a decline in gross margin this year due to rising labor costs, raw material prices, and a downturn in the market environment [2] - The company is focusing on new applications in the semiconductor field, which is currently in the R&D stage, indicating potential for significant growth if progress is made [2] Group 2 - The company's optical encoder products primarily generate revenue from traditional sectors like elevators and servo systems, but it is expanding into new application areas such as CNC machine tools [2] - The company is actively developing its semiconductor ultra-precision equipment, leveraging its existing optical systems and encoder technologies [2] - The company confirmed that large orders announced in May will be delivered according to contract milestones, with revenue recognized upon delivery [2] Group 3 - The company indicated that shareholder reductions in holdings may be due to personal funding needs, while also aligning its semiconductor business strategy with that of its major shareholder [3] - The collaboration with Changguang Aerospace is based on business synergy, despite being in different fields, as they share overlapping customers and applications [3]

Group 1: Company Products and Applications - The company's optical systems and space structural components have applications in satellites [2] - The K9 glass business, although small, will be retained as part of the overall business [3] Group 2: Financial Performance and Market Conditions - The decline in gross margin this year is attributed to rising labor costs and raw material prices, along with a downward market trend and military product pricing [2] - The company has a stable market position in traditional product categories, but is exploring new semiconductor fields, which are currently in the R&D phase [3] Group 3: Strategic Considerations and Future Directions - The optical encoder products primarily generate revenue from traditional applications like elevators and servo systems, but the company is expanding into new areas such as CNC machine tools [3] - The company is actively developing its semiconductor equipment capabilities, leveraging existing products like precision optical systems and encoders [3] - The large order announced in May will recognize revenue based on delivery milestones [3] Group 4: Shareholder and Corporate Governance - The recent share reduction by major shareholders was driven by personal funding needs, as the major shareholder is a research institution reliant on self-raised funds for certain projects [4] - The company's semiconductor business layout is aligned with the strategic direction of its major shareholder, with ongoing capacity building and talent acquisition [4] - The assessment model for the company is based on the evaluation criteria set by the Chinese Academy of Sciences [4]