How are the new HUD fixed-point customers of the company? How does the company expect the overseas expansion of AR-HUD?

Crystal Optoelectronics: In the first quarter of 2024, the company added 5 new fixed-points, mainly from Great Wall, Ideal, Dongfeng Lantu, SAIC Volkswagen and other car manufacturers. From the perspective of the rhythm of fixed-point conversion to mass production, there will be fixed-point conversion to mass production every quarter from 2024 to 2027. The models supplied for mass production throughout 2024 are mainly Changan Deep Blue and other models, while Dongfeng Lantu, Geely, 5 Great Wall, and Changan Mazda will be mass-produced from the third quarter of 2024. Ideal, SAIC Volkswagen, Jaguar Land Rover and other fixed-points will be converted to mass production in the next one to two years. In this process, we can see that the gross profit margin of the automotive sector in the first quarter of 2024 has increased slightly compared with 2023, which will give confidence in this fierce market competition. In the short term, the company will tap into gross profit space through internal management cost reduction and continuous follow-up of vehicle manufacturers. In addition, with the implementation of high-end HUD products such as LCOS, especially the continuous conversion of overseas customers and joint venture customers to mass production, it is believed that the gross profit margin of the automotive sector in the medium and long term will return to a reasonable level. In the layout of mid-to-high-end products such as LCOS, because the company has a relatively obvious leading advantage in optical system design and technology iteration, we will accelerate the progress in 2024, especially in the promotion of mid-to-high-end models and overseas customers.