Qisda Corporation ($2352)

Hello, investors. Good afternoon. Welcome to Qisda Corporation 2025 the Fourth Quarter Results, our Investor Conference. This conference is chaired by Chairman, Peter Chen. We also have executives in this conference, which includes President, Cally Ko; CFO, Jasmin Hung; and GM of Information Technology Business Group, Daniel Hsueh; GM of Medical Business Group, Harry Yang; GM of Business Solutions Business Group, Joshua Tzeng; GM of Networking and Communications Business Group, April Huang and our CIO, Michael Wang. Today's conference is estimated to take 1 hour. Agenda is as follows: First, CFO, Jasmin, will walk us through the 2025 fourth quarter financial results and business highlights; and Chairman, Peter and President, Cally will bring us the business update and future outlook, followed by GM of each business group to give us a briefing about the business performance. And we will enter the Q&A session. [Operator Instructions] Before we commence, we want to remind you to pay attention to the safe harbor notice as the presentation might be subject to risks. We would like to invite you to spend some time to read through the content on Slide 4, safe harbor notice. Thank you very much. Next, we will hand over to our CFO, Jasmin, to walk us through the 2025, the fourth quarter financial results and business performance.

Hello, investors. Good afternoon. I am CFO, Jasmin Hong. First, I will bring you the fourth quarter performance. First of all, we will briefly introduce Qisda Group. Our business spanning from information, technology, medical and smart business solutions, AIoT and networking communication. We have a global presence. Our manufacturing site located in Taiwan, China and Vietnam. Our sales offices Worldwide, we have more than 200 locations. Our R&D center mostly located in Taiwan and China. Our capital was NTD 19.27 billion after capital reduction last year. Now it is NTD 15.8 billion. In recent years, we focus on ESG-related and taking care of our employees. We have won multiple awards. We have won area award for 3 consecutive years, and we have won 7 consecutive years for Best Company to Work for HR Asia, and we have also won 6 APSAA and TSAA awards. And for revenue breakdown, Asia accounted for 52%; America, 30%; Europe, 17%. As to our major business groups, our original IT business, revenue was NTD 107.9 billion. The purple blocks are our high value-added business groups. Medical accounted for 15% of total revenue, reached NTD 30.3 billion. This is the first time exceeding NTD 30 billion scope. And we have 2 -- then you hospitals located in Nanjing and Suzhou. We also provide pharmaceutical health care channels and medical management consulting services. Those are our medical services, and we also have equipment and consumables and dialyzers. For BSG, revenue accounted for 17%, reached NTD 36 billion, hit record high. Therefore, in 2025, Medical and BSG, both business group hit record high revenue-wise. And CG revenue was NTD 22.5 billion, accounted for 11%. Others, mainly the BenQ material, manufacturing, battery materials and polarizers. For the fourth quarter financial results, the fourth quarter highlight, revenue was 52.2%, down by 4%, down by NTD 1.9 billion. OP income amount NTD 0.61 billion, down by NTD 0.55 billion Y-o-Y. Profit attributable to Qisda was NTD 0.05 billion, down by NTD 0.14 billion Y-o-Y. And EPS was NTD 0.03, down by NTD 0.07 Y-o-Y. That was not ideal. The drop of revenue was due to the IT business affected by tariff and exchange rate, the decrease in the United States market, especially in display, the revenue down by NTD 2.9 billion. As to the operating income affected by IT business and polarizer, the price drop and demand weakened. Therefore, Denky material turned into a loss that caused an impact to the operating income amounts. As to each business group, IT business revenue was NTD 26 billion, down by NTD 3.1 billion, down by 11%, mainly because of the monitor revenue was impacted by the weakened demand from the United States, although the gross margin and OP income margin went up. However, the OP income amount went down. So compared to the same period last year, it slightly decreased. High value-added business revenue was NTD 27 billion, up by NTD 1.4 billion, up by 6%. The 3 major business, Medical, BSG and NCG in the fourth quarter compared to 2024, the fourth quarter were all on upward trend on a Y-o-Y basis. Medical revenue grew 6%. Gross margin slightly increased. OP income margin and OP income amount decreased on a Y-o-Y basis, mostly impacted because -- first of all, BenQ Hospital, the second phase operation in the second quarter of 2025, the early investment in the hospital, the human resources, the preparation. In 2025, the second phase operating effect was not manifesting. This is the early investment. And in 2026, we hopefully via those early investment, we can produce the operation effect. Other than that, we have invested in Nobel Baby Ding Drug Store. In 2025, the performance was not as ideal as 2024. Therefore, the medical business group, the revenue went up. However, the OP income went down compared to the same period last year. BSG revenue grew 5%. Gross margin slightly increased. OP income margin and op income amount decreased Y-o-Y, mainly because some of the overseas subsidiaries affected by China, Hong Kong, Macau, their clients, their credit factors leading the account receivable was listed as a provision of doubtful accounts. As to NCG, revenue went up, gross margin, OP income margin and OP income amount also went up on a Y-o-Y basis. The whole year performance, revenue was NTD 207.9 billion, up by NTD 6.2 billion, up by 3%. OP income amount was NTD 3.2 billion, down by NTD 1.33 billion Y-o-Y. Profit attributable to Qisda was NTD 1.14 billion, down by NTD 1.02 billion, and EPS was NTD 0.64, down by NTD 0.47 Y-o-Y. The major factors were aligned with the fourth quarter situation, tariff and wars and exchange rates, increasing our costs, some subsidiaries turned into a loss. And IT business also affected by the weakened demand, we enjoyed a profit, but the operating income amount went down with multiple factors, OP income amount went down. Respectively, IT revenue was NTD 107.9 billion, down by NTD 2.6 billion, down by 2%. This aligned with this fourth quarter situation. High value-added business revenue was NTD 103.1 billion, up by NTD 10 billion, up by 1 OP income amount decreased on a Y-o-Y basis. That was because of the investment in Medical Business Group and BSG account receivable was listed as a provision of doubtful accounts. Medical revenue and BSG revenue in Qisda Group reached more than NTD 30 billion scope and also hit a historical high. The Board of Directors has approved on January 22 to invest approximately NTD 3.2 billion to acquire around 35% stake in ESTech with the aim of expanding the acoustic and high-end audiovisual market, and we paid a cash dividend of NTD 1 per share. Payout ratio was around 156%. This has been the policy we have mentioned in the recent year to have a stable dividend policy. Even when our EPS was NTD 0.64 and we paid NTD 1 per share. So the payout ratio was 156%. Let's take a look at consolidated statement of comprehensive income. The major factors we have explained earlier. Now we will briefly explain the figures. The fourth quarter revenue was NTD 52.1 billion. Gross margin was 17.1%, exceeding 17% again. Unfortunately, operating income was affected by multiactors. So operating income was not enjoying an increase. Operating income margin was 1.2%. Net income attributable to Qisda was only NTD 52 million. EPS was NTD 0.03. It was the lowest in the recent quarters. Compared to the same period last year, revenue down by NTD 1.9 billion, OP income down by NTD 550 million, net income attributable to Qisda down by NTD 139 million, EPS down by NTD 0.07 Y-o-Y. Consolidated statement of comprehensive income whole year. The whole year revenue was NTD 207.9 billion. Gross margin was record high, 16.8%. OP income was NTD 3.1 billion. OP income margin was 1.5%. Starting from 2026, we want to increase the OP income with multiple factors impact and accrual expenses last year, and we want to adjust the operating structure and bring a better outcome in gross margin and OP income margin. Net income attributable to Qisda was NTD 1.143 billion. EPS was NTD 0.64, down by NTD 0.47 Y-o-Y. Next, consolidated balance sheet highlights. At the end of December last year, our total asset was NTD 205.1 billion. Our liability ratio was 71% compared to the third quarter was also 71% remained flattish and book value per share was NTD 18.04. Other items related to liability and asset, there was no major changes. Please refer to the content on the slide. Let's take a look at the major financial ratios. As a matter of fact, a few major ratios. On Q-o-Q and Y-o-Y basis, there was not much changes. One exception was inventory turnover, up by 5 days on a Y-o-Y basis. And in the balance sheet, the inventory amount was NTD 44.8 billion. The amount slightly went up, mainly because of some memory-related materials. We have some advanced material preparation policy to respond to the future price rising and the future requirements. Financial trend. This slide is the quarterly trend. You can look at our revenue starting from the second quarter of 2025 to the fourth quarter, we have been enjoying exceeding NTD 50 billion revenue for 3 consecutive quarters. OP income remained positive continuously, OP income amount dropped on Q-o-Q basis. Gross margin continued to went up. OP income margin went down. For the fourth quarter compared to the same period last year, you can refer to the content on the slide. Let's take a look at business group revenue trend. The purple block, that is the high value-added business revenue consisted of Medical, BSG, NCG and IT high value-added business. The high value-added business group in the fourth quarter, the total revenue was NTD 27 billion on an upward trend. Medical Business Group in the fourth quarter was NTD 8 billion, also hit record high in the single quarter, exceeding NTD 8 billion. In the past quarter, the medical revenue remained stably above NTD 7 billion in the fourth quarter, exceeding NTD 8 billion. BSG also stably growing in the fourth quarter was NTD 9.2 billion. BSG revenue was the second highest in Qisda Group. NCG after 12 in the past quarter in the fourth quarter went up to NTD 6.4 billion. On the lower right, IT regional Business Group, revenue comes from monitor and display. Revenue went on a downward trend that was affected by tariff and exchange rate and also affecting the demand. The fourth business group, the gross margin range, you can look at the yellow highlighted column. We have explained earlier our business group gross margin range. On a Y-o-Y basis, it remained unchanged. The exception was the others. BenQ material, the polarizer, the gross margin went down evidently. And this slide was the revenue breakdown by business group. This is a detailed revenue breakdown. Please refer to the content on the slide. Qisda listed companies in Taiwan, we have 17 subsidiaries, and we provide the separate revenue and operating income and put the figure into the sheet for your reference. The overall performance, as we have mentioned, multiple subsidiaries was impacted. So the overall performance compared to 2024 went down. However, some subsidiaries were enjoying profit. For example, medical Concord Med, revenue went up, net income went up as well, 36% hit historical high. and BSG, MetaAge revenue went up by NTD 3.4 billion, up by 19% Net income up by NTD 0.22 billion, EPS up by NTD 1.2 hit highest in the recent 2 years. [ Grandesys ], it was the new OTC company in 2025. Revenue went up by 49%, net income up by 26%. EPS was NTD 0.17 highest in recent 3 years. IT, data image, net income slightly went down. Simula, the loss decreases. Medical, the net income slightly went down. BSG,et's focus on DFI. The net income decreased. That was impacted by the subsidiary of AC Pillar, the doubtful accounts impacting the net income of DFI, NCG, Alpha Network. Turning into the red, the gap of net income was evident. IDT revenue went up, net income also went up. Thank you Material presented in 2024 earned NTD 199 million. In 2025, it was negative NTD 364 million. So overall, it was negative NTD 564 million Y-o-Y. So overall, in 2026, we expect to return to the normal performance. Thank you. Next, we will enter the business update and outlook session. Let's hand over to Chairman, Peter.

Hello, investors and friends from press media. Good afternoon. I am Chairman of Qisda Group, Peter Chen. Our CFO have brought us the presentation pertaining to the 2025 revenue was NTD 207.9 billion. EPS was NTD 0.64. In the past 12 years, we have hit the lowest as to the operating income. This was not ideal, and I want to express my sincere apology to you. We were not performing good enough. However, we want to pay our respect to the right of our shareholders. So for the payout ratio, it was approved by the Board. It was 156%. EPS was NTD 0.64, but we paid NTD per share. As to the share value from yesterday, it was around 4% to 10% and the dividend yield was more than 4%. Hopefully, experiencing the trough, we still want to express our utmost sincerity to our shareholders. And hopefully, we can gain the understanding from the investors. And we didn't deliver a good performance that was affected by multiple factors, and we want to show our dedications in adjustment and changes. So next, I want to announce this. I believe that many of you might have heard or read on the news of today that you might have figured we have a new member, our new President, Cally Ko. Dr. Ko was appointed -- was approved by the Board, officially on board yesterday and our original President, Joe Huang, after being approved by the Board of Directors, he is the Vice Chairman of our company now. And through the strengthening of our organization via Dr. Ko -- Cally's participation and the Vice Chairman and me, myself, we can strengthen the organizational management, the potential and the capability and we can make a major change. The entire organizational capability need to improve. And hopefully, we can expand our horizon. And hopefully, in 2026, although we are facing multiple factors, for example, the war between the United States and Iran, we can still see that the trough we experienced last year, we can return to a better situation. So here, I just want to highlight and introduce our President, Cally Ko. Dr. Ko, who owns the industrial and corporate management dual Doctoral degrees. -- and also on international well-known IT companies. She was also appointed for 3 major companies as an executive. most preciously in the domestic companies, she also has over decades of experiences. She's familiar with AI, cybersecurity, IT and management and so forth. She has reach experiences. And of course, we're also very surprised not only those, as to the business group management, she has also managed business group with the scope over CNY 30 billion and CNY 40 billion. In the past 2 to 3 years, we have been through the transformational phase and the process was not smooth. We need to bring in a splash of living water or we can say that we need the catfish effects. Hopefully, we can introduce the external precious experiences and talents to bring out the organizational performance to be able to meet the expectation of our shareholders and meet the demand of the industry in the future, relying on Dr. Ko's AI professionalism and knowledge to assist us to expedite the AI transformation. Other than that, her international experiences is also rich and personal capability is high that can assist us to perform transformation. And the key message in this conference call was that we have met the trough in the past 12 years. And in 2026, we want to return to normalcy pertaining revenue and OP income. And through the organizational changes, we hope to achieve the goals and we will together dedicate to reach the goal. So next, I will hand over to our new President, Cally Ko. Dr. Ko to bring the brief self-introduction and say hi to you all.

Thank you, Peter. Hello, investors and friends from Press Media. Good afternoon. I am Cally Ko. I am very honored to join Qisda Group. I have been in IT and high-tech manufacturing for over 30 years. In the past experiences, I've learned that technology needed to be implemented to express the value. I will use my cross-country company experiences with Peter. We will lead Qisda within the AI wave trend and to express the synergy. Thank you very much.

Peter speaking. Thank you, President Ko, to say hello to everyone. And I want to highlight that because Dr. Ko was just appointed yesterday. So she still needs some time to get used to the overall operation. So today's conference, basically, I will host today's investor conference. Starting from next quarter, we will return to the normal operation. I will bring the overall economic climate and the high-level trend and analysis for the detailed information of each business group, President will host the entire call. So after briefly introducing President Ko this year, our overall situation, I'll bring you the explanation, the revenue and OP income. We hope to return to normalcy. That said, both in revenue and OP income, we want to exceed our performance last year. This is a clear goal. We will try our best to reach this goal through organizational enhancement and follow-up, we will make some adjustments. Under the AI wave, you can see that the stock market in Taiwan has went up by 1,000 points and globally was affected by war. Taiwan remain to enjoy the export performance. We delivered pretty good performance, and this is because of AI and semiconductor. For AI, in the past, we focused on our BSG, our business solution group. The business distribution starting from 12 years ago, we focus on how to implement AI and the overall solutions, software plus hardware and domain knowledge and to build AI implementation, for example, smart hospital, smart store and smart plan, the total solutions. We have been conducting this for 12 years now. And in the previous presentation, last year revenue was NTD 36 billion. So for AI implementation, we have muscled in pretty early on. Those are the hit aspects in AI area. However, we were left behind in computing power. So AEWIN has developed server that deliver a certain level of know-how. And we have small scale putting effort in this part. And in compute tech, we also showcased multiple times regarding the cooling system and 2-phase immersion cooling solution and server. However, in the past, our team capacity was relatively weak. So we did not catch up. And in NCG, of our network switch, it is also a major product in data center. In the cabinet, we have 3 areas. One is server, the other one is switch such as 1.6 terabytes and 800 gigabyte switch or the 2-phase immersion cooling system, total solution. And 3-in-1, it made a complete cabinet, especially in the high-volt server. And starting from this year, we started to distribute in last year. And in Qisda, we also have a team to develop in server and AEWIN is especially contributing to the 2-phase immersion high-volt server to provide active and effective cooling solution. And Alpha Network starting from last year and the year before that was investing in 1.6 terabyte. So far, the progress was good. And the sampling model was showcased in the past expos. So we are actively using the bigger scope organization of Qisda and the volume, we hope in this year, we can present a better performance in computing power. Qisda will not be absent. And hopefully, in AI industry, we want to appropriately manage the AI industry. We have muscled in AI industry, but the execution speed was not fast enough. And starting from this year, we will actively entering the computing power industry and hope to be a total solution provider in the entire industry. So that is also the reason why we invite Dr. Ko to join us to rely on her AI profession and also her connection with the international companies. With this management, we want to make conversion and also truly attend the AI wave that is booming in Taiwan. Other than that, I also want to report to you that as for the BenQ Hospital, in the past, in the listing process, there are a lot of information we cannot reveal. And of course, you must have figured that last year, December 22, in Hong Kong Exchange, we successfully been listed. The listing price was not ideal. The listing price was more than HKD 9 and now it is only around HKD 4. BenQ Hospital should not take the blend. We're still stably making profit. However, last year in China, the evolution, all the hospital in China was around 80% were in the loss. It also affect the entire hospital, the valuation in Hong Kong Exchange. So you can look it up. The valuation of hospital in Hong Kong Exchange were not high, and that was impacted by the entire environment. And we have successfully been listed in Hong Kong Exchange. And I believe that in the future, we will be more prudently to operate the hospital as long as our organizational structure, I believe that the profit will be improved. And once we got on this track and wait until the entire environment to improve and also our operating structure is getting better with better profit, we can bring out a better performance. And that is the overall explanation on a higher level.

And next, I will invite the GM of each business group to bring us the business performance of each business group, the highlights. First, GM of ITG, Daniel Hsueh to bring us the operation explanation.

Hello, everyone. I'm Daniel. I'm responsible for ITG. Here to report to you the highlight of the fourth quarter and the first quarter outlook. Global display market sales in the fourth quarter remained flattish Y-o-Y. Household market demand slightly increased, yet commercial market demand declined. As for the Qisda display sales amount in the fourth quarter, although household sales amount continued to grow, yet commercial sales declined, overall sales amount decreased compared to the same period last year. In the first quarter global display market sales due to the corporate IT capital expenditures still being prioritized for servers and PCs, demand for commercial market remains conservative. Household market demand is expected to be flattish and Qisda Display overall sales volume is expected to be around the same compared to the same period last year.

And next, CIG. The original GM of CIG, we have made some adjustment. And now the newly appointed GM is Laurence Song. And he's also at the scene. However, he was only appointed very recently. So I will invite him to briefly say hello to everyone and follow up by the highlights of each business group. Okay. Hand over to you, Laurence.

Hello, investors. My name is Laurence. I've been working for Qda over 28 years, and I will take charge of the entire industrial and commercial display and responsible for the business and development. Thank you.

Okay. Thank you, Laurence. And he has been serving the TSA Group starting from 1998 and with the R&D personnel background and has been playing an important role in new product development and research. And the projector starting from the baseline engineer, I still remember in 1998, I recruited him even before he finished serving the military. And for our CIG, our commercial and industrial business group to have him as the technology contributor. With the R&D technology, especially in optical products, he has enormous contribution to the development. And also taking over the MIBU, the ultrasound and medical ultrasound. Qisda in the early age for color ultrasound, we are the only vendor providing the portable color ultrasound, we have invested for decades, starting from the notebook size, tablet size and pocket size. the color ultrasound, we provide all serious products. And of course, in Taiwan, we have another competitor who's also manufacturing the pocket size ultrasound, but we provide a wholesome series, and we enter the market the earliest. And whether it's in contract manufacturing or providing service to the world-class color ultrasound clients, we deliver pretty good outcome. Hopefully, relying on the ability of Lawrence in CIG business group, the focus is the past, the projector starting from 1998 until today, it has bring in dozens of billions of profit for the Qisda Group. This is a very rare and precious business. Even until today, we remain the second largest worldwide. The first place is [ Absent ], the second place is BenQ. And in contract manufacturing, we remain in the top 3. For the projector business, it has played an important role to the Qisda Group. Unfortunately, for a projector, the large-format projector is sensitive to the environment, also easily affected by the life span of lighting bolts, adding that there are a lot of substitutional products such as the panel of LCD, 65 inches or even 98 inches, 110 inches, they're getting cheaper and cheaper, therefore, replacing a lot of middle to small-sized application of the meeting room or classrooms and to the large format display, 300 inches or 500 inches is also replaced by the direct view. That is the direct product applied indoor or outdoor, the large LED products and volume in the entire industry is declining year-by-year. Therefore, we need to actively develop new product in CIG business group. What kind of new products? For example, as the direct view, directly display the large LED panel. If you have noticed maybe more than 10 years ago, China has been invested in this part. And in the past 3, 4 years in Taiwan, the industry is actively converting. Now in 5-star hotel or large-scale meeting venue, we no longer use projector. We use indoor LED screen that is bright and with good effect. The indoor product has higher resolution. The brightness is around 1,000 lumens. For outdoor product, the brightness was around 2x, 2,000 lumens for resolution because you look at from far, so it is not that important compared to the indoor products, such as the large LED display in the baseball court. And Qisda also has such technology. So we will have Laurence to lead the business group to be as the General Manager, relying on his profession in R&D technology to be able to expedite the development of the direct view. This is to resolve the large-scale 3,000 inches kits because this market is going to be replaced in Taiwan. If you're going to have a meeting, have a wedding ceremony, if you don't have this kind of indoor or outdoor LED, it is hard to get the order. And of course, we have drums and unmanned vehicles or even robotics that flies in the sky, we call it drones that run in the water. We call it unmanned vehicles and the one run on land, of course, that is robot or robot dog. Those are applied in commercial or industrial usage, and many of them is related to AI. And for the new GM of CIG, Laurence, he will take the lead. And as we said, Cally, our new President, will also provide assistance. And me personally, I have the R&D background. I will also assist in enhancing this part to get back the losing market share for projectors starting from new products to enrich our product portfolio for CIG. And we have pretty wide aspect of technologies. So you can expect that we will have more good product to be able to dominate in the future industry for more than 20 or 30 years to cut over for CIG business Group. So this is my additional information. And next time, I will have Laurence to bring the briefing for CIG. Okay. Next, we will have the GM of Medical Business Group, Harry Yang, to bring us the business operation presentation.

Thank you. Hello, investors and friends from Press Media. I am Harry Yang, the GM of Medical Business Group. I will briefly introduce the highlight of Medical Business Group. In the fourth quarter of 2025, we have exceeded from around NTD 7.7 billion -- NTD 7.8 billion to NTD 8 billion, exceeding NTD 8 billion in a single quarter. And in 2025 whole year, we exceed NTD 30 billion to NTD 30.3 billion, up by 15% Y-o-Y. And for medical devices, we enjoy a better growth, which was 28% Y-o-Y. And for medical business other than hospital, we also have 2 categories. The first category is health care retail businesses, focusing on drug store channels and health care channels. It includes drug stores, hearing aids and dietary supplements. Those are 4 channels. And for this aspect, we have some focus, 4 major focus. First of all, we have integrated the resources in the group and integrate the product line from hearing aids ventilator and some supplementary distribution businesses and aesthetic medicine products and integrating into the same channel into the drugstore. And second, in the drugstore, we have been through the overall optimization. For Ding Ding Drugstore in the early age, they provide mainly maternal and baby products, and we're actively transforming into geriatric products. And in the layout of the drug, we also make some special organization. And for the strategic alliance, we also work with some domestic pet or cosmetic medicine company to form a strategic alliance. And we also establish in-store shops. And lastly, pertaining to the entire M&A merger acquisition, we're actively progressing and because the overall performance of drug stores was not ideal, and we are adopting different approaches. And I believe that soon, we will bring a new update. And the second one is the medical devices. For medical devices, we have 3 major areas. First is the operating room equipment and consumables. Starting from last year, we have launched QMR intelligent quality medical rehabilitation. And this is counted as a new product, and it is well received in the market, and it can be a new future growth momentum. For image, other than the original ultrasound, we also have new products such as fish EcoSounder starting to be shifted and should be working as a new growth momentum. And the third part is dialyzer. For dialysis, we -- compared to other domestic competitors, we have been deeply cultivated. Other than Taiwan plant, we also have plant in Shanghai, China, and the centralized procurement order is still growing. And we also have some new products such as water filtering system and low flex dialyzers and the overall progress was pretty good. And the first quarter outlook, the medical product has been pretty stable, and we remain to be optimistic. The first quarter performance should be good.

Okay. Next, we will have GM of BSG. Joshua Tzeng.

Hello, investors and friends from press Media. I am GM of BSG. In the fourth quarter, our revenue was NTD 9.2 billion. We have exceeded NTD 9 billion for 3 consecutive quarters. The whole year revenue was NTD 36 billion, up by 15% Y-o-Y. And I will explain our 3 major pillars. For enterprise Smart IT, focus on AI, info security, cloud service and networking 4 pillars: increased value for our service, continue to optimize overseas businesses. For enterprise Smart OT, industrial PC entire market momentum was recovering mostly due to the reenabling of global manufacturing industry capital expenditure, expansion of edge AI application and replenishment of demands of smart manufacturing or cybersecurity market, cross-enterprise collaboration to expedite ODM project sample shipment and new server product R&D to develop collaboration opportunity with client and hopefully to receive breakthrough orders this year. For smart automation, semiconductor industry showing optimism, machinery industry is taking a wait-and-see approach. for robotic industry clients showed a rapid upward trend. For OMO smart services, we focus on retail unmanned business opportunity to assist our restaurant clients in digital transformation and strengthen organization for overseas operation. And for the first quarter outlook, we focus on computing power software and services and smart automation core business. And hopefully, through smart solution to assist our client in digital transformation and AI implementation and computing power, we have expanded our capacity and also manage the source of key material, expertising the development of ODM and AI server for software services, strengthen the product portfolio of AI computing products, both localization and cloud computing, expand the cloud market, promote one-stop cybersecurity solutions for smart automation, integrate partner to develop smart manufacturing AI applications such as AOI defect detection, 3D vision deep learning and digital twin. Thank you.

Okay, followed by the GM of NCG, April Huang. Thank you.

Hello, everyone. I am GM of NCG April. For NCG, we have experienced a decline in the first half of last year. Starting from the third quarter, we enjoyed the growth year-on-year. The whole year revenue and profit is turning good quarter-by-quarter, but the second half could not fully cover the loss induced by the first half. So last year, overall, we did not perform good enough. However, in the first quarter, we will maintain the growth momentum from the second half of last year, the growth was majorly coming from the recovery from the industrial client of Switch and also the new market, the new business development in India. Adding that in the second half, it is the traditional peak season for system integration. And we expect the growth momentum in the first quarter can be maintained to carry forward the same growth compared to the same period last year. In the entire 2025, our focus will also be carried forward into 2026, which is the 1.6 terabytes transforming into the data center, the business transformation, we have showcased the model in last year October in the OCP Expo. This is one of the major investment in the last year, and we will continue to implement this year. There's another major investment, which is LBR, which is the license band radio. And we will continue to implement this year. Those are the major investment we have put last year for the future growth momentum. And last year, we also received some new clients. And in the second half of 2026, we will begin the shipment. Therefore, a major highlight in 2026 is to make sure we deliver an ideal time to market for those new cases. So I think in the first half, we will try our best to maintain the growth momentum to present a growth on a Y-o-Y basis. But for the structural growth should be evident in the second half, the growth momentum brought by the new cases.

Next, due to the limited time, we will briefly answer the questions compiled so far. First, pertaining the dividend policy, should we have CFO to elaborate?

Thank you for paying attention to this topic. As a matter of fact, Qisda in the recent year for the financial and strategic investment has bring in an evident cash dividend income. So for the dividend to be paid in 2026 and for the estimated cash dividend should align. So it will not cause a major financial burden to us. Thank you for the affirmation. For the financial performance, we have well planned, although our payout ratio was 156%, and we paid NTD 1 per share. Our financial status is healthy. Please rest assured.

The second question pertaining to the BSG, the capital expenditure scope. Can we have GM to answer this question?

Thank you, investors and friends from press media. We have seen that AIoT, especially in computing power, edge computing, AI server has pretty good development, and our teams are actively getting orders. And we also acquire approval from President and Chairman to expand our production lines pertaining the remodeling plants and equipment procurement and human resource adjustments and the focus should be such expenditure. We'll be focusing on the -- aligned with the future development. And for details, the figures, the focus is in our subsidiary, DFI. So we should elaborate in DFI-related meetings. So our industry is not a heavy capital investment. So the capital expenditure is not as heavy. So it should not cause a major burden.

The third question is in 2026, each business group ranking and the breakdown of the first and second half. Pretty evidently, the first half and second half revenue-wise should be 46% to 54% revenue-wise in each business group, the one that enjoy an evident growth in 2026 supposed to be the BSG Business Solution Group, AIoT business group. Last year, it was NTD 36 billion, and this year should grow steadily and medical also enjoy a 10% or even 20% growth. And those 2 business are relatively stable. As to NCG, although in the past 2 to 3 years was not ideal, that is because of the lower performance in base period. For example, last year compared to 2024, it was better. So this year compared to last year, we should return from the trough. As to the CIG and ITG, the product is projector and display. And this year, it contains more uncertainties. So compared to last year, it should remain flattish or enjoy a slight increase. So that is the rough ranking. And the fourth question is pertaining to the profit improvement, what is the specific approach. First, for those subsidiary who's suffering from loss, we need to improve the performance. From the last slide of our CFO's presentation, a lot of subsidiaries were suffering from a loss last year. And in the past 1 to 2 years, we have been through restructuring and many subsidiaries suffering from loss well, starting from the first quarter, will turn into the black. And part of them in the second quarter, we should see a better outcome. And the second half of this year, the majority of them should return to profit. And this is the first thing for improvement of those subsidiaries who is suffering from a loss, and those losses will offset the profit. The improvement of those subsidiaries should bring an evident outcome. And most of them, starting from the first quarter, we should see the change. The change in the first quarter was not as evident. And starting from the second and the third quarter, it will become more and more obvious all the way to the fourth quarter. Those subsidiaries suffering from a loss should turn into the black. Such changes -- and of course, for those company enjoying a profit, we want to expand the effect. For example, BenQ Medical through organic growth and non-OP income, we have publicized and it should increase greatly on profit. And there are many subsidiaries under BSG also enhancing the profit. And that is the second part. The third part is for technology. either it is AIoT related or AI related, as we have shared earlier, our development in server or cooling system or 1.6 terabyte switches and so forth, those supposed to bring contribution in the second half of this year. Through the major -- 3 major areas, the improvement, the profit performance in 2026 compared to 2025, the improvement should be greater than revenue. That is because the revenue went up by NTD 6.2 billion. However, our profit has been struck by the trough in the past 12 years. And this year, we will spend more effort and time for our subsidiaries to improve their health and to help them to turn into the black for those who is enjoying the profit, we want to expand the effect. With participation of Cally, bringing her profession in AI, we want to bring a different outcome in the AI industry. We want to see the evident outcome. We will not be absent. And this is my overall responses. We should answer all the questions. Thank you. That is today's presentation and Q&A session. Our investor conference ends here. Thank you very much for participating in Qisda Corporation Investor Conference 2025 Fourth Quarter Results. We will upload the audio and video material after the call.

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