Summary of Conference Call Notes Company and Industry Involved - The conference call discusses **兆易创新 (GigaDevice)**, focusing on the **NPU (Neural Processing Unit)** market and **customized storage solutions** within the **AI (Artificial Intelligence)** sector. Core Points and Arguments - **NPU Product Launches**: There is an anticipated wave of NPU product launches, project initiations, and tape-outs due to increasing computational power demands from AI applications across various terminals [1][2] - **Customized Storage Solutions**: The "NPU + customized storage" solution is being recognized as the optimal answer for edge AI by domestic smartphone manufacturers and leading international SoC (System on Chip) companies [1][2] - **Strong Collaborations**: GigaDevice has established deep collaborations with major industry players and is actively engaging with SoC partners, leading to multiple projects in the pipeline [1][2] - **Scarcity of Customized Storage**: Customized storage is highlighted as a scarce resource, with foreign storage giants focusing on HBM (High Bandwidth Memory) and PIM (Processing In Memory) products, showing a delayed and lower emphasis on customized storage strategies [2] - **Domestic Advantage**: GigaDevice benefits from advanced process and capacity support from domestic DRAM leaders, allowing for better alignment with customer needs in AI mobile and PC sectors [3] - **High Demand for Domestic Solutions**: In the context of HBM export restrictions, there is a significant domestic demand for AI storage solutions, indicating a strong market opportunity for GigaDevice [3] - **Core Positioning in the Supply Chain**: The company's edge AI storage products are positioned as critical components within the industry supply chain, warranting attention from investors and stakeholders [3] Other Important but Potentially Overlooked Content - The competitive landscape indicates that Taiwanese competitors are lagging in process technology, resulting in performance discrepancies that could benefit GigaDevice in securing market share [3]

Group 1: Financial Performance - In Q1 2025, the company achieved a sales revenue of 318 million yuan, a year-on-year decrease of 11.00% [2] - The net profit attributable to shareholders was 14.64 million yuan, down 59.46% compared to the previous year [2] - The revenue decline was primarily due to strategic inventory control by major customers, resulting in a decrease of 39.36 million yuan in revenue, which impacted gross profit by approximately 15.08 million yuan [2][3] Group 2: Market Outlook and Strategy - The company remains optimistic about the market opportunities arising from advancements in AI technology and is actively expanding its market presence [3] - Sales expenses increased by approximately 3.82 million yuan compared to the same period last year [3] - The company is focusing on diversifying its customer base and enhancing product offerings to meet various customer needs [3] Group 3: Product Development and Demand - The demand for professional video products has decreased due to inventory control by major clients, while sales in smart IoT and smart vehicle-related businesses have seen growth [14] - The company has launched a product in the industrial and machine vision sector, with positive progress expected as automation demands increase [9] - AI-powered ISP products are currently under development, with anticipated growth in sales volume expected in the second half of the year [12][13] Group 4: Customer Engagement and Feedback - Customers are looking for broader product lines, indicating a desire for the company to expand beyond video business [3] - The company is exploring wireless connectivity products through industry funds, with existing Wi-Fi products already achieving bulk sales [3] - The company is committed to building a robust ecosystem involving original manufacturers, solution providers, and equipment manufacturers to enhance product sales [7]