Management of Zhongji Innolight Co.,Ltd. (SHE: 300308) held an emergency conference call to firmly deny widely circulated rumors of a destructive price war in 1.6T optical modules and concerns over AI capital expenditure. The company revealed that real orders for 2027 have already been placed, extending the visibility of AI demand to 2028.
Following declines in US AI-related stocks overnight and rumors circulating in the market that "1.6T optical module quotes from Dongshan/Cambridge had fallen to $600," panic set in regarding the sustainability of big tech capital spending. To address market concerns, Zhongji Innolight management convened an unscheduled investor conference call on Tuesday to provide a centralized clarification on pricing rumors, order books, the competitive landscape, and gross margin outlook.
Management directly addressed the core issue at the start, aiming to reassure the market. They emphasized that next year's 1.6T product pricing is "definitely far higher than the rumored levels" and stated that their understanding is that no competitor is offering such low prices. The relevant rumors are "seriously inconsistent with the facts." Management reiterated that the industry is healthy with robust demand, and the company's pricing is competitive, allowing it to maintain stable gross margins and revenue, contrary to the performance damage described in the rumors.
Five Core Points Addressed by Management
The 1.6T price rumor is seriously false. Management stated the company's 1.6T product price for next year is "definitely far higher than the rumored level," and competitors do not have such low prices. From a weighted average ASP perspective, the rumor is "very outrageous."
Demand visibility extends to 2028. Management stated, "Almost all customers have already placed orders for 2027," and these are not general guidance but real orders. Some key customers have provided specific demand guidance for new products in 2028, with amounts described as "very large."
The rapid ramp-up of new products will effectively boost gross margins. Management expressed "great confidence in maintaining stability" in gross margins. New product gross margins in 2027 will be higher than mature products, and their rapid ramp-up will drive company gross margin growth.
No vicious industry competition exists. Management noted the industry has normal annual price adjustments, but with current strong demand, tight material supply, and scarcity of 1.6T delivery capacity, there is no mainstream behavior of "prices dropping by tens of percent."
The proportion of optical connections in capital expenditure is rising. Management indicated that while optical modules previously accounted for less than 5% of CSP capital expenditure, this proportion is now increasing and accelerating, driven by product iterations like 800G, 1.6T, 2.4T/3.2T, and NPO/CPO.
"Rumored Prices Are Very Outrageous," 1.6T Mass Delivery Capacity Remains Extremely Scarce
Regarding the market's fear of a "price war" and vicious competition, Zhongji Innolight management dissected the logic of annual optical module pricing negotiations. They pointed out that the industry's routine annual price adjustment depends on the supply-demand balance for that year. Against the backdrop of surging demand and extremely tight materials from 2025 to 2026, the quotations from mainstream suppliers are generally healthy.
"There is no vicious competition in the industry like people imagine, similar to some other sectors," management stated directly. They pointed out that 1.6T products come in multiple versions like EML and silicon photonics, and different transmission distances like DR, FR, and LR, making a blanket price meaningless. "From the weighted average ASP perspective, the rumored price is very outrageous."
The more core logic lies in the extreme scarcity on the supply side. Management emphasized that not all manufacturers can deliver 1.6T products on a large scale. "From the second half of this year to next year, I believe that only a few manufacturers will be able to deliver 1.6T products." Regarding new entrants, management stated that new suppliers are currently concentrated in 800G, while 1.6T has a long certification and introduction cycle with higher barriers. The number of 1.6T suppliers for top-tier customers remains limited, and the industry landscape hasn't deteriorated.
Not Just General Guidance! 'Real Orders' for 2027 Already Placed, Visibility Extends to 2028
Responding to pessimistic market sentiment about AI capital expenditure peaking, Zhongji Innolight provided highly incremental information with actual order visibility: AI demand is not weakening; in fact, visibility has extended to 2028.
"I can tell you very clearly now that almost all customers have already placed orders for 2027," management revealed during the call, specifically emphasizing, "This is no longer general guidance, but real orders. These orders strictly specify how many products need to be delivered each month."
Data shows that demand in 2027 will see a considerable increase compared to 2026. The certainty for 800G and 1.6T is particularly strong, and new products like 2.4T and NPO will emerge. More surprisingly, some key customers have already provided the company with specific demand guidance for new products in 2028, with strong demand and large amounts.
Management countered market panic with underlying business logic: "If the capital expenditure of these major customers were unsustainable, they would have no reason to tell us their 2028 demand – that's a very simple logic."
New Product Ramp-Up to Drive Gross Margins, Optical Modules Are Not Low-Tech 'Assembly Plants'
With a solid order book, the company expressed strong confidence in future profitability. Management stated that orders for 2027 are "very good" in terms of both volume and price. Due to the tight supply-demand situation, various suppliers are being very cautious with their quotes. As new products for 2027 begin to ramp up, their gross margins will be significantly higher than existing mature products. "The rapid ramp-up of new products can effectively drive the company's gross margin growth."
Furthermore, the call strongly rebutted the market's underestimation of the technological barriers in the optical module industry. Management clearly stated: "I strongly oppose simply comparing the optical module industry to some other industries in the past, or believing this industry has no technical barriers and is just an assembly industry – these statements interfere with everyone's judgment of the industry."
Management pointed out that the proportion of optical connectivity products in downstream clients' capital expenditure is accelerating. This is partly due to rapid technological iteration (1.6T mass production in 2026, 2.4T/3.2T and NPO in 2027-2028) and partly due to a surge in application scenarios. The previous market perception was a 1:3 ratio of GPUs to optical modules, but management revealed that as AI cluster sizes grow, "the number of optical modules corresponding to each computing chip is further increasing, at least doubling, or even more."
However, regarding the market-hyped concept of "optical replacing copper within the cabinet (scale-in)," management maintained an objective and cautious stance, stating, "We haven't seen such rapid substitution happening yet. This part might take a longer time."
The following is the original text of the conference call:
Management:
Good evening, investors.
This conference call tonight is primarily in response to requests from some investors and analysts to address today's market performance, the company's stock price, market rumors, company operations, and industry conditions.
First, I want to address some of today's market rumors. There are widespread rumors in the market that the price of 1.6T optical modules in the industry has dropped to $600, or even lower. Some also believe that some newly entered manufacturers have offered very aggressive prices.
On this, I want to clearly state the following two points:
First, the company's price for next year's 1.6T products is definitely far higher than the rumored levels. There is no vicious competition in the industry like people imagine in other sectors. To our knowledge, competitors do not have such low prices either. Therefore, these rumors are seriously inconsistent with the facts.
As I mentioned in previous meetings, the overall industry is healthy. The current reality is that demand is very strong, raw materials are very scarce, and the delivery capacity for 1.6T products is extremely limited. Not all manufacturers can deliver 1.6T products on a large scale. From the second half of this year to next year, I believe only a few manufacturers will be able to deliver 1.6T products.
Second, the actual prices are not as outrageous as the market rumors suggest. There are also claims in the market that the company's gross margin and performance will be affected. As we emphasized in previous calls, the company's prices are competitive while also allowing the company to maintain stable gross margins and revenue. This is not the situation described by the market rumors.
The second issue I want to address is the very pessimistic sentiment that emerged after stock prices of related overseas companies and other related industries fell. The market worries whether capital expenditure is sustainable or if there are fundamental problems with this development model.
In response, we can only share information based on the actual demand situation we observe in the optical module industry and from our downstream customers, including CSP clients and equipment vendors.
I can tell you very clearly now that almost all customers have already placed orders for 2027. Some customers have even given us their orders for 2027. These are no longer general guidance but real orders. These orders strictly specify how many products need to be delivered each month. Therefore, there is no need to worry about the lack of visibility for 2027.
Demand in 2027 is very clear. Compared to 2026, whether it's 800G, 1.6T, or potential new products like some 2.4T and NPO, the certainty is quite strong, and the growth rate is significant, especially for 800G and 1.6T. Additionally, some key customers have already provided us with specific demand guidance for new products in 2028. The demand is very strong, and the amounts are very large.
If the capital expenditure of these major customers were unsustainable, they would have no reason to tell us their 2028 demand – that's a very simple logic. Customers have clearly communicated their 2028 demand to us, and the procurement amounts for new products are very large.
Regarding demand, I want to clarify two key points:
First, many rumors about next year's product pricing are untrue, seriously untrue.
Second, regarding demand for next year, and even the development guidance provided by some customers for 2028, customers' capital expenditure continuity is strong. They are optimistic about the industry and willing to continue investing.
Analyst:
I have two questions.
First, you mentioned earlier that some customers have already provided guidance for new products in 2028. Are these new products mainly for scale-out or scale-up? If they are scale-up products, is there corresponding guidance for scale-out?
Management:
The new products we refer to mainly include 2.4T products for 2028, as well as NPO and XPU products. These are very new products for us and the entire industry.
Both NPO and 2.4T have relatively large demand. However, due to specific customer confidentiality, we cannot disclose their specific procurement quantities and amounts. We can only qualitatively tell you that the demand is very large, and customers are continuing to increase this procurement.
Analyst:
Second question, when NPO starts ramping up next year, how is the company preparing regarding light sources and related materials?
Management:
The company needs to prepare not only optical devices but also other related devices including electrical signal devices, PCBs, wireless devices, inductors, etc. We are all proactively planning procurement.
In response to strong downstream demand, the company is preparing in advance through the following specific measures:
First, signing long-term agreements with existing suppliers to lock in their additional production capacity for the next few years.
Second, expanding new suppliers to further secure supply.
Third, strengthening ties with some core suppliers through prepayments or even equity investments.
I believe these strategies are very effective. Many suppliers are now incentivized and willing to actively expand production, and material supply will gradually improve. We expect a phased improvement in material supply in the second half of this year, which will also lead to a significant improvement in the company's expected shipments for the second half.
Analyst:
Thank you very much for holding this meeting at this time to communicate with the market. I have two questions.
First, you talked about pricing in your opening remarks. If there is some adjustment in the price of 1.6T products next year, is the main reason the normal annual price reduction negotiated between the company and customers, or price adjustments caused by intensified competition? We hope the company can further break down the logic.
Second, the market is quite concerned about potential changes in the competitive landscape going forward. Could the company please analyze further how we should understand the company's future competitive position? Currently, many new manufacturers claim they can enter this track and may also solve some optical chip issues. How should we understand the industry's supply-demand situation and the impact on the competitive landscape after potential competitors enter?
Management:
Regarding the first question, the industry has indeed had annual price adjustments in the past. This is nothing new, but it also depends on the supply-demand relationship each year. Especially entering 2025-2026, demand has grown very rapidly, and at the same time, materials have become very tight. Every optical module supplier will quote a reasonable price based on its own cost, product technology, and the share obtained from customers.
At least from the quotes we have observed so far, the industry remains relatively healthy. There is no situation of offering extremely low prices to maliciously grab market share, let alone the market rumor of prices dropping by tens of percent. If any manufacturer does offer such a quote, it is not a common practice among mainstream suppliers.
Furthermore, 1.6T products themselves come in many types, including EML versions, silicon photonics versions, different transmission distances like DR for ~500m, FR and LR for 2km or longer, and multi-mode products for shorter distances. The prices for these products vary. Generally, short-range multi-mode products have lower prices, while medium and long-range products have higher prices sequentially. Therefore, one cannot simply say that 1.6T products have a single fixed price.
Some peers might have gained share in certain specific models and thus given corresponding quotes; prices for other longer-range products will certainly be higher. There might also be price differences between EML and silicon photonics versions. From the weighted average ASP perspective, the rumored price is very outrageous.
Regarding the second question, industry demand is indeed very strong now. Some major customers, to ensure supply, will add one or two suppliers on top of their original two or three. However, some customers have not added suppliers and maintain the original structure. New suppliers are mainly concentrated with specific customers, which does not mean that all customers across the entire industry have significantly increased their supplier base. The overall industry structure still retains its original characteristics.
Optical modules from different manufacturers need to be interoperable because different brands of optical modules might be used in a mixed configuration within the same data center. Therefore, interoperability and technical testing must be completed. These tests require significant technical and R&D resources from customers and are also very time-consuming and effort-intensive. Hence, many customers prefer long-term cooperation with around three fixed suppliers. If the supply gap is large, customers might introduce new suppliers, but the volume and share new suppliers can obtain are also quite limited. Not all optical module manufacturers can freely enter and exit each customer. The industry landscape hasn't deteriorated to that point yet.
Currently, newly entering manufacturers are more concentrated on supplying 800G products. The demand for 800G is indeed very large, so some customers have added new suppliers. The demand for 1.6T will also become large, but its entry barrier is higher. Suppliers first need to pass customer certification, testing, and a complete introduction process, which takes a relatively long time. At least currently, we haven't seen a very large increase in the number of 1.6T suppliers.
From the industry introduction perspective, top-tier customers are the first to use 1.6T products. This year's demand has already become quite large, and next year's volume will be even larger. The vast majority of 1.6T demand is still concentrated among a few top-tier customers, and the number of 1.6T suppliers for these top-tier customers is basically still limited. It's not what the market imagines, with many manufacturers already entering and chaotically competing for 1.6T share.
As one of the first manufacturers in the industry to supply 1.6T products, we have achieved a very significant competitive advantage. With several core top-tier customers, we have gained good shares, strong competitiveness, and very good prices.
For even higher-end products, such as 2.4T, more advanced technologies are required, including Coherent Lite, silicon photonics, and thin-film lithium niobate. Currently, only a very few suppliers in the entire industry can provide these high-end products to customers. Another example is NPO, which has very high requirements for silicon photonics chips, electrical chips, and new packaging types. The number of suppliers currently capable of participating in this field is also very small.
The entire industry is rapidly iterating. Driven by requirements for higher speed, higher bandwidth, lower power consumption, and different application scenarios like scale-out, scale-up, and scale-in, demand for high-end products is constantly being released. In these markets, the number of current competitors is still very limited. It's not what people imagine, with many manufacturers able to enter. Customers have very high requirements for customization capabilities, product technology, and performance. Only companies with corresponding technical capabilities can become qualified suppliers.
Therefore, I don't think the industry's supply landscape has deteriorated as much as people imagine. On the contrary, this industry has high technological content, and the technology curve is becoming steeper. For the company, development opportunities in the next few years will become more abundant, not narrower.
Analyst:
You just mentioned that the company has higher visibility for orders in 2027. With strong demand and many new products, does the company have any directional outlook for gross margin or net margin in 2027?
Management:
From the current situation, the company's orders for 2027 are very good in terms of both volume and price.
Industry demand is indeed very strong, but material shortages also bring some difficulties. Under these circumstances, I believe that various suppliers in the industry will be very cautious in their quotes. Quoting must consider one's own situation, as well as the key products and the supplier's share in those products.
Regarding gross margin, we are very confident in maintaining stability. When new products for 2027 start ramping up, the gross margins of these new products will definitely be higher than those of currently mature and mass-shipped products. The rapid ramp-up of new products can effectively drive the company's gross margin growth.
In the future, when the company enters new application markets, such as optical connectivity solutions for the scale-up domain, leveraging the company's technical capabilities and leading position in the industry, we will be well-positioned to deliver products to customers and achieve good gross margins, thereby further enhancing the company's overall gross margin level.
Analyst:
We also saw market rumors today. 1.6T products have many models from SR to ZR, which must correspond to different prices. So summarizing with a single price is indeed very absurd.
I want to ask about the most important increment next year. Everyone has been discussing the increment from scale-up. We have also noticed that in solutions like NVIDIA's NVL576, the second-layer scale-up network between cabinets might use NPO products. Inside the cabinet...
Analyst:
You mentioned today that the company's visibility for downstream customer orders in 2028 has improved. I believe this information is very important for boosting market confidence.
From the perspective of the proportion of optical connectivity in data center investment, could the company further share what new product forms might appear in the potential solutions of downstream major customers in the future, and the incremental application of optical connectivity products in scale-up networks? Even if the market has some different expectations for the growth rate of capital expenditure in 2028, the proportion of optical connectivity in total capital expenditure might still increase rapidly. Therefore, from the perspective of the entire industry, this track may still have structural increments that cannot be ignored. Please introduce further from this perspective.
Management:
I believe that the proportion of optical modules or the entire optical connectivity product in the capital expenditure of large technology companies is continuously increasing, and the speed of increase is accelerating.
In the past, the proportion of optical modules in CSP customers' capital expenditure was probably less than 5%, especially in the era of traditional internet and traditional data centers. This proportion is now gradually increasing, mainly for the following reasons:
First, product technology iteration is accelerating.
Starting from 2023, key customers began using 800G products; by 2026, 1.6T began deployment. In the future, even higher-rate products like 2.4T and 3.2T will emerge, gradually launching around 2027-2028. Additionally, there will be scale-up optical connectivity products for higher bandwidth needs, including NPO and CPO, as well as even higher-rate products like 3.2T, 4.8T, and 6.4T. Interconnection between multiple data centers, buildings, and campuses will also use Coherent Lite or coherent products, and the demand will become very large.
These all belong to optical connectivity products. The proportion of optical connectivity products in total capital expenditure will further increase because the product price curve for the entire industry is actually trending upwards, not downwards. This is one of the healthy aspects of the industry: first, technology iteration is very fast; second, the average selling price (ASP) is increasing.
The reason for the price increase is that products are becoming more high-end, with higher technological content and bandwidth, and the overall BOM cost is also increasing. Moreover, the number of suppliers capable of participating is not increasing; it is decreasing.
Therefore, I have always believed that the overall landscape of the industry is relatively healthy. It's not what people imagine – becoming very crowded, or with all companies engaged in vicious competition and price cuts. I strongly oppose simply comparing the optical module industry to some other industries in the past, or believing this industry has no technical barriers and is just an assembly industry – these statements interfere with everyone's judgment of the industry.
We can tell you very clearly that this industry is growing healthily. The reason is the continuously increasing demand for bandwidth, technology, and new application scenarios across the entire industry.
In the past, optical connectivity was mainly used for interconnection between switches. Now, a large number of application scenarios in scale-up networks, such as servers, memory, and network cards, also require optical connectivity. Many scenarios previously completed by copper connections are gradually transitioning to optical connections. This trend will gradually become apparent in 2027-2028. In longer-distance connections, including data center interconnection, campus interconnection, and building interconnection, there are also a large number of optical connectivity application scenarios, and bandwidth continues to increase. In the future, in the scale-in domain within the cabinet, optical connectivity application scenarios will also emerge.
The technology level of the entire industry is continuously improving, so the competitive landscape will continue to improve. Companies need to comprehensively master various cutting-edge technologies, including silicon photonics chips, thin-film lithium niobate, Coherent Lite, and new packaging types. The content of these technologies is getting higher and higher; they are not mass-market technologies or ordinary standard product technologies.
Analyst:
Last meeting mentioned that 800G demand is still rising, and 1.6T demand is also good. I would like to ask, does the growth in 800G products include a certain proportion of single-wavelength 200G products? For these 800G products based on single-wavelength 200G, are the technical barriers and gross margins higher, and can the profitability level approach that of 1.6T products?
Management:
Yes, there are indeed 800G product specifications using single-wavelength 200G, and their technical content is higher.
The single-wavelength 200G technology applied in 800G products corresponds to the 4×200G scheme. Many customers currently use the 8-channel scheme, which is 8×100G. The demand for this part is quite large, but there are indeed 4×200G products as well. If further expanded to 8×200G, it becomes a 1.6T product.
Single-wavelength 200G technology has become increasingly mature, and the company has shipped many related products this year. Whether in terms of price or gross margin, single-wavelength 200G products are significantly better than 8×100G products.
Analyst:
Looking ahead, the market has been focusing on the company's overall expectations, and scale-up might be the most important increment.
Taking NVIDIA's solution as an example, in the NVL576 system, the second layer, which is the scale-up network between cabinets, is expected by the market to use NPO products. Inside the cabinet, some connections are currently covered by copper cables, specifically the connection between computing chips and the switch inside the cabinet. From the perspective of the development of single-wavelength 200G rates in 2027-2028, is there also a definite trend and timeline for these connections to be replaced by optical connections? I believe this is an important factor for judging industry increments.
Management:
Are you referring to inside the cabinet?
Analyst:
Yes, the scale-up connection inside the cabinet.
Management:
We haven't seen such rapid substitution happening yet. This part might take a longer time.
Analyst:
You just mentioned that both 800G and 1.6T are products with high technological content, and the company has a competitive advantage in upstream components like PIC. With the rise of domestic 800G demand and even some 1.6T demand, does the company have corresponding plans for the domestic market? Will the profit margins for these products gradually approach those of the overseas market as the supply-demand relationship for high-end products changes?
Management:
The domestic market is indeed developing rapidly. From last year to now, AI data center construction and demand for optical connectivity products in China have been increasing, and the company's product supply will match the customers' construction plans.
In the next few years, whether it's existing 800G, 400G products, or future 1.6T, NPO products, they will gradually appear in the domestic market. The overall product price range and ASP in the domestic market are also trending upwards, and the entire industry is still developing healthily.
As for whether domestic market prices can fully align with the overseas market, I believe there are differences in the competitive landscape between domestic and overseas markets; they are not exactly the same. Therefore, some price differences are normal.
Analyst:
Last question, regarding the technology curve becoming steeper.
In the past few years, the industry has basically evolved from single-wavelength 50G to single-wavelength 100G, and then to single-wavelength 200G. Although the number of channels has also increased to 8, the technology curve has generally evolved along the core upstream technology. Now, we are already seeing the development from 8-channel single-wavelength 200G to more-channel CPO, and to NPO with far more than 8 channels, reaching 16 channels or even more, with increasingly tighter channel spacing.
From this perspective, can the company's layout in upstream technologies allow the company to gain stronger initiative than before in this steeper technology curve, thus securing future competitiveness? At the same time, will the dependence on new technologies also bring new challenges? I believe this is a very important change for the second half of 2026 and 2027-2028. Please elaborate further.
Management:
Your question covers many aspects. I want to emphasize that the company is gradually growing into a platform company, already possessing, currently developing, or about to develop multiple core technologies.
With the development of AI, the industry has put forward requirements for higher bandwidth, lower power consumption, and lower latency. The company is making technical preparations around these core requirements. In my previous answers, I have listed many of the company's core technologies. These technologies will play a very critical role in launching next-generation new products, higher-rate products, entering equipment interconnection in application scenarios like scale-up, and even future connections inside the cabinet. The company will gradually develop these necessary technologies, which is also the source of the company's strong confidence in technology.
Analyst:
Thank you, management. We believe the market will eventually give a premium valuation to the industry leader, recognizing the company's value.
Investor:
The previous analyst also mentioned the demand for scale-up. I would like to ask, among the 2027 demand currently seen by the company, roughly what proportion is related to scale-up?
Management:
I cannot provide specific quantitative data.
I can only tell you that starting from the second half of 2027, based on the current situation, at least two very influential customers in the industry will begin batch procurement of NPO products. The procurement volume of NPO products will gradually increase, with the truly larger volume ramp-up expected to occur in 2028.
Furthermore, there are even more CSP customers, large model company customers, and even Neocloud customers who are very interested in NPO solutions. These customers will gradually introduce related products from this year to next year.
We still firmly believe that NPO will become a very mainstream product in future optical connectivity solutions. The volume ramp-up process for NPO might be similar to 1.6T. 1.6T officially started ramping up in 2026, and NPO will also go through a phased introduction: initially introduced by some influential companies in the industry, followed by more customers, eventually becoming a mainstream solution in the scale-up domain.
Investor:
Another question. In the past, when discussing CSP networking architectures, it was commonly believed that the ratio of GPUs to optical modules was 1:3, or even 1:4. Based on current networking architectures, is this ratio still increasing?
Based on next year's GPU or ASIC shipments, matching a market demand of approximately 200 million optical modules seems inconsistent with the original 1:3 or 1:4 ratio. Is it that the proportion of optical modules corresponding to the networking architecture itself is increasing, while also adding some NPO demand?
Management:
Yes. We have discussed this issue with customers. Many customers have told us that the ratio of optical modules corresponding to computing chips is increasing.
The market might still be stuck on the previous 1:3 perception. However, in reality, starting from 2025, including now in 2026, 800G and 1.6T products are growing rapidly, even experiencing several times growth. By 2027, even with a very large base, related products will still maintain relatively fast growth. These situations all indicate that in scale-out networks, the number of optical modules corresponding to each computing chip is further increasing, at least doubling, or even more.
The main reason is that the overall AI cluster scale is getting larger, requiring more connections from chips to cabinets, and from server cabinets to the expansion network. As the number of connection application scenarios increases, the number of required optical modules naturally increases, and the network scale also becomes larger. It's that simple logic.
Investor:
Last question. The company is one of the few in the industry that can see a relatively complete picture of demand. Regarding orders for 2027, does the company see the total demand volume directly provided by CSP customers, or does it infer the total market size based on the order volume and share the company has obtained?
Management:
Different customers have different situations.
Some customers will tell us both their total demand volume and the share we have obtained. Other customers use a back-to-back approach, only telling us the quantity allocated to the company, and we then infer their total demand based on our approximate historical share with that customer. The amount of information provided by different customers varies; some customers provide us with more information.
Investor:
Understood. Thank you, management. I also wish the company success in its Hong Kong stock listing.
Management:
Thank you.
Moderator:
Thank you for the investors' questions and management's sharing. The communication has been very thorough today. Does management have anything to summarize or add?
Management:
I don't have more views. I just especially want to say that times like these are precisely when, through thorough communication, we can best see whether the entire industry is healthy, whether the competitive landscape is improving or deteriorating. Through full communication, everyone can enhance their understanding and judgment of this industry.
When related rumors appear in the market, I also hope everyone will proactively communicate with the company to understand the situation. We are very willing to communicate with everyone through conference calls or other means, and you can also contact us directly. We are willing to introduce the real situation of the industry and the company as fully as possible to avoid market rumors causing misleading.
As for the current overall market situation, everyone might be emotionally worried, or even panicked, but I believe these are temporary. I firmly believe that this industry is still healthy and is continuously developing, and customers' capital expenditure is also sustainable. Thank you all for joining the meeting so late.
Moderator:
Thank you for participating in this meeting. The meeting is now adjourned. Goodbye.
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