Financial Data and Key Metrics Changes - The company achieved a revenue of HKD 18.4 billion, representing a year-on-year growth of 6.1% [1] - Net profit attributable to the parent company was HKD 2.3 billion, up 20.2% year-on-year [1] - Gross margin improved by 0.9 percentage points to 39.4%, while net margin increased by 1.5 percentage points to 12.5% [1] - EBITDA reached HKD 1.97 billion, growing by 1.2% [1] - Basic earnings per share were HKD 0.5909, a year-on-year increase of 21.1% [1] Business Line Data and Key Metrics Changes - Revenue from the China region was HKD 11.98 billion, up 8.1% year-on-year [1] - North America revenue was HKD 4.28 billion, growing by 2.3% [1] - Revenue from Europe and other overseas regions was HKD 1.2 billion, increasing by 2.9% [1] - Home Group revenue was HKD 674 million, a growth of 10% [2] - Other revenue declined by 8.5% to HKD 70 million [2] Market Data and Key Metrics Changes - The Chinese market accounted for 65% of total revenue, while the local market contributed 23.3% [2] - The gross margin for the overall market business was 40.4%, with North America at 37.1% and Europe at 30.3% [2] - Inventory turnover days decreased from 71 to 49 days, and accounts receivable turnover days fell from 40 to 33 days [3] Company Strategy and Development Direction - The company is focusing on enhancing brand marketing and product innovation to adapt to changing consumer preferences [4][5] - Plans to increase market penetration in lower-tier cities and expand e-commerce channels are in place [11][14] - The company aims to maintain a dividend payout ratio of around 50% and has a share buyback strategy [1][9] Management's Comments on Operating Environment and Future Outlook - Management noted that the demand for functional sofas remains strong despite a decline in new housing completions [7][8] - The company anticipates a shift towards the stock housing market and is responding to government policies promoting "old-for-new" exchanges [22] - Management expressed optimism about maintaining stable material prices and controlling shipping costs despite macroeconomic pressures [6][5] Other Important Information - The company plans to open approximately 700 to 800 new stores in the upcoming fiscal year [12][16] - The company is exploring new materials and product innovations to meet evolving consumer demands [21] - The company has established production bases in key regions to support future market growth [18] Q&A Session Summary Question: What new strategies are in place for category and channel management in the current market? - The company will enhance brand marketing and collaborate with major media to strengthen brand presence [4] Question: What is the outlook for overseas market growth? - The company expects to accelerate growth in the overseas market through product innovation and deep partnerships with key clients [5] Question: How will material prices fluctuate? - Material prices are expected to remain stable due to market conditions and geopolitical factors [6] Question: How does the company plan to support dealers and expand e-commerce? - The company will increase personnel for e-commerce collaboration and enhance marketing efforts across various platforms [11] Question: What are the plans for new store openings? - The company plans to open around 700 to 800 new stores, focusing on tiered city distribution [12][16] Question: How will the company maintain competitiveness in the functional sofa market? - The company will invest in R&D and leverage its technology patents to enhance product competitiveness [13][14] Question: What is the company's approach to share buybacks and dividends? - The company will consider share buybacks and dividends based on cash flow and investment opportunities [9] Question: How does the company view the impact of the real estate market on growth? - The company acknowledges challenges from the real estate market but sees potential in the functional sofa segment [8][18]

Financial Data and Key Metrics Changes - The company achieved a revenue of HKD 18.4 billion, representing a year-on-year growth of 6.1% [1] - Net profit attributable to the parent company was HKD 2.3 billion, up 20.2% year-on-year [1] - Gross margin improved by 0.9 percentage points to 39.4%, while net margin increased by 1.5 percentage points to 12.5% [1] - EBITDA reached HKD 1.97 billion, growing by 1.2% [1] - Basic earnings per share were HKD 0.5909, a year-on-year increase of 21.1% [1] Business Line Data and Key Metrics Changes - Revenue from the China region was HKD 11.98 billion, up 8.1% year-on-year [1] - North America revenue was HKD 4.28 billion, growing by 2.3% [1] - Revenue from Europe and other overseas regions was HKD 1.2 billion, increasing by 2.9% [1] - Home Group revenue was HKD 674 million, up 10% [2] - Other revenue declined by 8.5% to HKD 70 million [2] Market Data and Key Metrics Changes - The Chinese market accounted for 65% of total revenue, while the local market contributed 23.3% [2] - The overall market business gross margin was 40.4%, with North America at 37.1% and Europe at 30.3% [2] - Sofa sales reached 1.12 million units, with a 25.7% growth in China and a 28% increase in export sales [3] Company Strategy and Development Direction - The company is focusing on brand marketing and enhancing product offerings to adapt to changing consumer preferences [4] - Plans to increase marketing efforts targeting younger consumers who prefer functional sofas [7] - The company aims to expand its market share in the functional sofa segment, which is currently underpenetrated [8] - Emphasis on maintaining a stable gross margin despite market pressures and competition [18] Management's Comments on Operating Environment and Future Outlook - Management noted that the decline in new housing completions has shifted consumer focus towards home improvement rather than real estate investment [7] - The company expects stable material prices despite geopolitical tensions [6] - Management is optimistic about the demand for functional sofas, anticipating significant growth potential in this segment [8] Other Important Information - The company maintains a dividend payout ratio of approximately 50%, with a total dividend expenditure of HKD 1.167 billion [3] - The company plans to open 700-800 new stores in the upcoming fiscal year [12][16] - The company is exploring new markets for brand expansion, particularly in developing countries [15] Q&A Session Summary Question: What new strategies are being implemented for inventory and sales recovery? - The company plans to enhance brand marketing and collaborate with major media to improve brand visibility [4] Question: What is the outlook for overseas market growth? - The company is optimistic about product innovation and collaboration with retailers to drive sales [5] Question: How will material prices be affected? - Material prices are expected to remain stable due to market conditions and geopolitical factors [6] Question: How does the company plan to support dealers? - The company will increase personnel and enhance e-commerce collaboration to improve customer acquisition [11] Question: What are the plans for new store openings? - The company plans to open approximately 700-800 stores, focusing on various city tiers [12][16] Question: How will average price declines affect gross margins? - The company aims to maintain gross margins by targeting different consumer segments with varied pricing strategies [12] Question: What is the strategy for functional sofas and market competition? - The company will invest in R&D and maintain cost advantages to stay competitive in the functional sofa market [13][14]

□微信月活（百万） yoy I 360 1340 1320 1300 1280 1 260 1240 1220 1200 1180 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 5% 4% 4% 3% 3% 2% 2% 1% 1% 0% =微信月活 (百万) 收费增值服务注册用户 (百万) 1600 1400 1200 1000 800 600 400 200 0 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 资料来源：公司公告，东吴证券研究所 毛利率: ● 1Q24总体毛利率为 52.58% (YoY+16pct, qoq+5pct) , 毛利率正增长由于高毛利率收入来源的快速增长，包括 微信，视频号及搜一搜广告收入，小游戏平台服务费等。 ● 1Q24增值服务毛利率为57%（YoY+5pct, qoq-6pct），同比提升由于订阅收入增长，高毛利小游戏平台服务费增 长，以及分部内容成本与运营成本的下降。 联系人:张良卫/张家琦 腾讯(0700.hk): ...

Financial Data and Key Metrics Changes - In Q1 2024, the company's revenue increased by 0.9% year-over-year, with a currency-neutral growth of 4% and same-store sales growth (SSSG) of 2.2% [2] - Gross profit margin (GPM) improved by 2.4 percentage points to 60.4%, and adjusted EBITDA margin increased by 0.4 percentage points to 18.8% [2] - Net profit attributable to shareholders rose by 18.8% year-over-year, and operating cash flow turned positive with a net inflow of $55 million [2] Business Line Data and Key Metrics Changes - Revenue growth for Samsonite brand, Tumi, and American Tourister was currency-neutral year-over-year at 7%, 2%, and 3% respectively [2] - Tumi's performance is expected to improve in H2 2024 as inventory levels normalize, despite facing high base effects in Q1 and Q2 2023 [2] Market Data and Key Metrics Changes - Revenue growth in different regions was as follows: Asia (+8%), North America (+0.3%), Europe (-0.5%), and Latin America (+18%) on a currency-neutral basis [2] - In mainland China, Q1 revenue grew by 23% year-over-year on a currency-neutral basis [2] Company Strategy and Development Direction - The company aims for revenue growth in Q2 2024 to be in the mid-to-high single digits year-over-year, with expectations for H2 to outperform H1 [2] - The company plans to maintain an advertising expense ratio of 7% and an adjusted EBITDA margin of 20% for the full year [2] Management's Comments on Operating Environment and Future Outlook - Management noted a strong growth trend in April 2024, particularly in Europe, and expects Q2 to show strong growth [2] - The company expressed satisfaction with performance in China, despite some weakness in Q2, and anticipates strong tourism demand to continue driving sales [2] Other Important Information - The company expects full-year revenue growth to be in the high single digits to low double digits [3] - The latest market capitalization is $42.2 billion, with Bloomberg consensus expecting an adjusted PE of 12x for 2024 [2] Q&A Session Summary Question: How does the company view future revenue growth? - Management sees strong growth in Q2 2024, with expectations for H2 to outperform H1, particularly in Europe [2] Question: What is the outlook for Asia and Tumi? - Tumi's performance is expected to improve in H2 2024, with strong growth anticipated across North America, Europe, and Asia [2] Question: How does the company view EBITDA margin performance and guidance? - The company expects overall EBITDA margin to improve in H2 2024, maintaining its guidance for the year [2] Question: Which regions are underperforming in the current consumer environment? - India is noted as a weak performer, while China is performing satisfactorily [2] Question: What is the company's approach to discount management and maintaining margins? - The company aims to balance sales growth with maintaining good profit margins and brand positioning [2] Question: What are the sales trends expected in different regions? - Europe is expected to see strong sales growth in Q2, while India faces significant promotional pressure [2]

Financial Data and Key Metrics - Revenue increased by 26% YoY to RMB 37.2 billion, driven by a 19% increase in average store count and a 9% YoY comparable same-store sales growth [9] - Adjusted net profit rose by 28% YoY to RMB 6.2 billion, with an adjusted net margin of 16.6%, up 0.2 percentage points YoY [16] - Gross margin reached a historical high of 43.4%, up 4.1 percentage points YoY, primarily due to increased overseas revenue contribution and TOP TOY's margin optimization [9][16] Business Line Performance - **MINISO Mainland China**: Revenue grew by 16% YoY to RMB 25.0 billion, with same-store sales recovering to 98% of 2023 levels [16][21] - **MINISO Overseas**: Revenue surged by 53% YoY to RMB 12.2 billion, with direct-operated markets contributing 58% of overseas revenue, up from 46% in 2023 [16][23] - **TOP TOY**: Revenue increased by 55% YoY to RMB 2.1 billion, with 160 stores operating across nearly 70 cities [12][18] Market Performance - **North America**: GMV grew by 108% YoY, contributing 13% to overseas GMV, up from 7% in 2021 [24] - **Latin America**: GMV increased by 40% YoY, remaining the largest contributor to overseas GMV at 38% [24] - **Asia (excluding China)**: GMV rose by 34% YoY, contributing 36% to overseas GMV [24] Company Strategy and Industry Competition - The company aims to achieve 50% IP product sales by 2028, leveraging its strong IP conversion capabilities and partnerships with brands like Disney and Chiikawa [9][12] - TOP TOY's profitability improved significantly, with gross margin increasing by 8 percentage points YoY, driven by optimized product mix and higher bargaining power with suppliers [8][12] - The company plans to open 900-1,100 new stores globally in 2024, with a focus on high-quality locations and direct-operated markets [9][12] Management Commentary on Operating Environment and Future Outlook - Management highlighted the strong growth potential in overseas markets, particularly in North America and Europe, where the company has seen rapid GMV growth [24] - The company remains confident in achieving its full-year growth targets, supported by its strategic focus on IP products and high-quality store expansion [6][9] Other Important Information - The company's IP product sales accounted for 26% of total sales, with overseas IP shipments growing by over 100% YoY [12] - TOP TOY's store count increased by 44 YoY to 160, with plans to expand to over 250 stores by the end of 2024 [12][18] Q&A Session Q: Domestic same-store performance by city tier and the impact of large stores on average transaction value? - The company is refining its large-store strategy, with successful openings in key locations like Guangzhou, Shanghai, and Beijing, aiming to optimize the store model [2] Q: Single-store performance and location selection in the US? - The US market continues to show strong growth, with same-store sales increasing by 30-40% YoY in Q1 2024 The company plans to add 80-100 new stores in the US in 2024 [3] Q: Domestic gross profit margin (GPM) decline and future trends? - Domestic GPM is lower than the group average, with tier-1 cities recovering to 98% of pre-pandemic levels, while lower-tier cities saw a low single-digit decline Future GPM improvement will be driven by product mix optimization, including increased sales of blind boxes and travel-related products [4] Q: Drivers behind the 21% YoY increase in overseas same-store sales? - The increase was primarily driven by higher brand awareness, new customer acquisition, and product mix optimization, with IP products now accounting for 40% of sales [5] Q: Plans for Chiikawa pop-up stores? - The company plans to open over 10 pop-up stores in cities with high youth populations, such as Wuhan, Chengdu, and Xi'an [6] Q: US market unit economics (UE) model? - The company did not provide detailed UE metrics but noted significant cost-saving opportunities in logistics and distribution [7] Q: Reasons for TOP TOY's target adjustment and same-store sales growth drivers? - TOP TOY's improved profitability is attributed to a healthier competitive landscape, increased bargaining power with suppliers, and optimized product mix, leading to an 8 percentage point increase in gross margin [8]

Financial Data and Key Metrics - The company expects a double-digit growth in overseas markets, potentially between 10% to 20% [2] - Domestic market revenue is expected to remain flat [2] - Free brand business is projected to grow by 10% to 20% [2] - Medical sector is expected to see a high single-digit to low double-digit growth, excluding additional R&D investments [2] - Capital expenditure for 2024 is estimated to be around 1 billion, similar to 2023 [2] - The company aims to maintain a dividend payout ratio of around 35% [2] Business Line Data and Key Metrics - Growth in 2024 is expected to be driven mainly by disposable products, while refillable products may see a slight decline [1][2] - Cannabis vaporizers are expected to maintain a growth rate of over 20% [2] - The company is investing in new product lines, particularly in medical and beauty sectors, with expected returns in 2025 and 2026 [2][3] Market Data and Key Metrics - The US market saw a decline in the second half of 2023 due to the impact of non-compliant disposable products [6] - The company is preparing for potential bans on disposable products in Europe and the US by developing new product lines [4][5] - The company's free brand, VAPORESSO, is expanding in Europe with new product offerings [5] Company Strategy and Industry Competition - The company is focusing on differentiated products and new technological routes to stay competitive [1] - It is preparing for potential regulatory changes in Europe and the US by diversifying its product portfolio [4][5] - The company is investing in R&D to develop new solutions and technologies, particularly in the medical and beauty sectors [2][3] Management Commentary on Operating Environment and Future Outlook - The company is optimistic about future growth, particularly in 2025 and 2026, as new product lines mature [2][3] - Management is cautious about the regulatory environment in the US and Europe, particularly regarding disposable products [1][4] - The company is prepared to adapt to market changes and regulatory shifts by leveraging its R&D capabilities [4][5] Other Important Information - The company has a strong cash position, with cash and deposits totaling approximately 16 billion [5] - It is open to increasing share buybacks if necessary [5] - The company uses a mix of USD and RMB for customer settlements, with complex arrangements for large clients [6] Q&A Session Summary Question: Trends for refillable and disposable products in 2024 - Disposable products are expected to drive market growth, while refillable products may see a decline due to regulatory pressures [1] Question: CBD growth trends in 2024 - CBD growth is expected to recover in the second half of 2024, driven by new product launches and market recovery [2] Question: Cash flow, capital expenditure, and dividend guidance for 2024 - The company expects strong cash flow, with capital expenditure similar to 2023 and a dividend payout ratio of around 35% [2] Question: Revenue and profit guidance for 2024 - Revenue is expected to grow in overseas markets, while domestic revenue remains flat. Profit growth is expected to be in the high single-digit to low double-digit range, excluding medical R&D investments [2] Question: Impact of US flavor ban and FDA enforcement - The company is cautious about FDA enforcement and the potential impact of flavor bans, but remains optimistic about its product portfolio [4] Question: New product launches in Europe - The company is preparing to launch new products in Europe, including larger-capacity refillable products, to adapt to potential bans on disposable products [4] Question: Pricing pressure from large clients - Pricing pressure from large clients is decreasing as the focus shifts to differentiated products and innovation [5] Question: R&D investment in HMB market - The company is investing in R&D to develop new solutions and technologies, particularly in the HMB market, with expected returns in the future [5] Question: Free brand strategy in Europe - The company is expanding its free brand, VAPORESSO, in Europe with new product offerings, including bottled e-liquids [5] Question: Share buyback plans - The company is open to increasing share buybacks if necessary, given its strong cash position [5] Question: US market decline in H2 2023 - The decline in the US market in H2 2023 was due to the impact of non-compliant disposable products and changes in customer stocking patterns [6] Question: Currency settlement arrangements - The company uses a mix of USD and RMB for customer settlements, with complex arrangements for large clients [6]

Financial Data and Key Metrics Changes - The company's total revenue for Q1 2024 was RMB 160 billion, representing a year-on-year growth of 6% and a quarter-on-quarter growth of 3% [41] - Gross profit reached RMB 84 billion, showing a year-on-year increase of 23% and a quarter-on-quarter increase of 8% [41] - Non-IFRS operating profit was RMB 59 billion, up 30% year-on-year and 19% quarter-on-quarter [41] - Non-IFRS net profit attributable to shareholders was RMB 50 billion, reflecting a year-on-year growth of 54% and a quarter-on-quarter growth of 18% [41] Business Line Data and Key Metrics Changes - The gaming segment saw a mixed performance, with flagship games like "Honor of Kings" and "Peacekeeper Elite" experiencing revenue declines in Q1, but showing signs of recovery in March with year-on-year growth [44][45] - The advertising revenue from online ads was RMB 26.5 billion, a year-on-year increase of 26%, driven by increased engagement and AI ad targeting [26] - The revenue from financial technology and business services was RMB 52 billion, showing a year-on-year growth of 7% [27] Market Data and Key Metrics Changes - Domestic game revenue grew by 3% year-on-year, indicating a general recovery trend [42] - International game revenue also increased by 3% to RMB 14 billion, remaining stable in constant currency terms [42] - The video account user engagement time grew by 80% year-on-year, with video accounts now having double the engagement time compared to Moments [38] Company Strategy and Development Direction - The company is focusing on high-quality revenue sources, including video accounts, mini-games, and e-commerce technology service fees, to drive growth and operational profit [45] - There is an ongoing commitment to repurchase shares, with plans to buy back over RMB 100 billion worth of shares in 2024 while also increasing dividends [45] - The company is investing in AI, platform enhancements, and high-production-value content to support future growth [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery of game revenues and the positive impact of structural changes on reducing business risks [31] - The company anticipates that the growth rate of advertising revenue will slow down in subsequent quarters, aligning more closely with market consensus expectations [5] - Management highlighted the importance of maintaining a focus on high-quality growth strategies and the potential for sustained profit margins across various business segments [32] Other Important Information - The company upgraded its advertising technology platform to help advertisers manage campaigns more effectively, resulting in a 100% year-on-year increase in video account ad revenue [2] - The company is seeing strong growth in wealth management services, with an increase in user numbers and average fund investments [14] Q&A Session Summary Question: How does the company view the future potential and growth plans for key games? - Management noted that they have been updating key games successfully and are confident in the ongoing process, learning from past experiences [6] Question: What are the expectations for profit growth and margin trends in the coming years? - Management clarified that they are pursuing a strategy of investing in platform development and user experience while gradually achieving profitability [6] Question: How does the company plan to leverage AI in its advertising business? - Management believes that AI will significantly enhance ad targeting and management, leading to improved click-through rates and overall ad revenue growth [29]

时间：2024年5月9日 嘉宾：陆总 纪要核心要点 1.经营情况：24年一季度订单量同比下降30%，客单价下降十几个点，去除23年一季度高基数影响依旧疲软，没有明 显向上或向下的迹象。 2.市场竞争：行业早就是充分竞争，不担心新上市竞对加剧竞争环境，预计头部品牌有集中机会，没有大规模降价的 紧迫性。 3.未来增长：增长点主要来自门槛降低后加盟店增长和海外扩张，期待国内需求修复。 纪要正文 一、经营情况： 从2021年8月开始，尽管疫情相对稳定，但收入下滑非常快。22 年当然都很差。23年一季度相对乐观，因为看到恢复 速度非常快，一直到 4 月份表现都是很好的，五一之后市场持续疲软，到现在24 年的 5 月份没有变得更烂，但也没 有好转迹象。2024年1-5月市场很疲软，也有去年高基数影响，抛去以后还是不行。未来走势不好说，向上向下都没 有明显痕迹。 二、未来展望： 公司过去节流已经做的很多了：自动化改造减少了全职员工，转而使用兼职员工；降低了培训需求和损耗，优化了供 应链管理等 接下来要做的是开源： ① 加盟商方面：下线城市的加盟是一个新增长点，目标是今年开设数百至1000家加盟店（实际可能无法达到），目 前 ...

Financial Data and Key Metrics Changes - The industry experienced a growth rate of approximately 10% in revenue, with national registration numbers increasing by about 13%-14% [1][2] - The company aims to maintain a pass rate of 10%, with profit margins expected to reach 18% this year, 20% next year, and a target of 25% [4][6] Business Line Data and Key Metrics Changes - The company has three main product lines: membership services, large classes, and small classes, with the small class segment showing the highest growth and revenue contribution [3][4] - The average revenue per teacher is projected to increase from 570,000 in the previous year to approximately 800,000 next year, driven by efficiency improvements through AI [4][5] Market Data and Key Metrics Changes - The number of teaching positions in the public sector is increasing by about 3%-4%, while the number of teaching positions in private institutions is declining [2][3] - The competitive landscape has shifted, with the market share of leading institutions like Huatu and Fenbi increasing, while Zhonggong's share and revenue are declining [3][6] Company Strategy and Development Direction - The company focuses on balancing pass rates, profits, and revenue growth, with a strategic emphasis on maintaining a pass rate of 10% and improving profit margins [4][6] - The use of AI technology is enhancing teaching efficiency and student satisfaction, which is expected to further improve profit margins [4][5] Management's Comments on Operating Environment and Future Outlook - Management noted that while the industry is experiencing growth, many registrations are driven by employment pressures, indicating that actual training participation may not be as high as reported [1][2] - The company anticipates a gradual increase in job positions over the next few years, with a projected annual growth rate of around 3% [2][6] Other Important Information - The company plans to implement share buybacks and dividends as part of its capital allocation strategy [6][9] - The company has seen a reduction in the number of teachers, from 3,900 at the end of 2022 to 3,200 by the end of 2023, while maintaining efficiency [4][9] Q&A Session Summary Question: What is the current market share of the company? - The company believes that the CR3 market share is around 30%, with expectations of continued growth in market concentration [6][9] Question: How does the company plan to achieve a profit margin of 25%? - The company aims to improve the gross profit margin of its small class segment, which is currently below 50%, by leveraging AI to enhance teaching efficiency [4][5] Question: What is the impact of the economic environment on registration numbers? - Management indicated that while registration numbers may slow down in a recovering economy, they do not expect a significant drop due to the consistent demand from various demographics [7][8] Question: How does the company differentiate itself from competitors? - The company emphasizes its online model and superior teacher quality, which allows it to maintain higher pass rates compared to competitors [6][9] Question: What are the company's plans regarding teacher recruitment? - The company does not plan to significantly increase its teaching staff this year, focusing instead on improving efficiency with the current team [9]

Financial Data and Key Metrics Changes - Revenue for Q1 2024 was $1,715 million, up 4.3% sequentially [5] - Gross margin decreased to 13.7%, down 2.7 percentage points sequentially [5] - Profit attributable to the company was RMB 72 million [5] - Total assets at the end of Q1 were RMB 48.2 billion, with total cash on hand of RMB 15.4 billion [6] - Total liabilities were RMB 17.3 billion, with total debt at RMB 10.3 billion [6] - EBITDA was RMB 887 million, with an EBITDA margin of 50.7% [5] Business Line Data and Key Metrics Changes - 8-inch equivalent wafer shipments increased by 7% sequentially to 17.95 thousand pieces [12] - Wafer revenue accounted for 93% of total revenue, while other revenue accounted for 7% [13] - Wafer revenue by application: smartphones (31%), computers and tablets (18%), consumer electronics (31%), connectivity and IoT (13%), industrial and automotive (7%) [14] Market Data and Key Metrics Changes - Revenue from China accounted for 82%, while revenue from America and Eurasia accounted for 15% and 3%, respectively [13] - Utilization rate increased by 4 percentage points sequentially to 80.8% [12] Company Strategy and Development Direction - The company is focusing on capacity construction and R&D to enhance core competitiveness and corporate value [8] - Plans not to pay dividends for 2023 to align with long-term development needs [9] - The company is accelerating the development of technology platforms for mainstream applications, including automotive and IoT [15] - The company aims to maintain its leading position in the market through strategic partnerships and technology leadership [19] Management's Comments on Operating Environment and Future Outlook - The company observed improved IC inventory levels and increased willingness from global customers to build inventory [11] - Revenue and gross margin both exceeded guidance in Q1 [12] - For Q2 2024, revenue is expected to grow by 5% to 7%, with gross margin projected to be between 9% and 11% [7][16] - The company is cautiously optimistic about the second half of the year, with a revenue growth target exceeding the industry average [18][20] Other Important Information - The company is in a continuous high investment phase to expand 12-inch high-quality capacity [20] - The company has achieved laboratory accreditation for its Automotive Reliability Testing Center, supporting its automotive process platform development [15] Q&A Session Summary Question: Inventory levels and customer demand - Management noted that global customers are more willing to build inventory due to market uncertainties [11] Question: Revenue guidance and market conditions - Management provided guidance for Q2, expecting revenue growth and a cautious outlook for the second half of the year [18][20] Question: Dividend policy and long-term strategy - Management explained the decision not to pay dividends for 2023 aligns with long-term development needs [9]