City University of Hong Kong (CityUHK) and the Hon Hai Research Institute of the Hon Hai Technology Group (Foxconn) jointly established the Foxconn-CityUHK Joint Research Centre. The aim of the centre is to combine the scientific research efforts of industry and the academic sector to advance innovative research projects in artificial intelligence, semiconductor, next-generation communications, information security and quantum computing.  The opening ceremony of the joint research centre was held on 12 June. Officiating guests included Professor Freddy Boey, President of CityUHK; Dr Lee Wei-bin, Chief Executive Officer and Director of the Information Security Research Centre of the Hong Hai Research Institute; Professor Ma Wei Ying, Huiyan Chair Professor and Chief Scientist of the Institute of AI Industry Research at Tsinghua University; Professor Kuo Tei-wei, Chief Technology Officer, Delta Electronics; Professor Lee Chun-sing, Provost and Deputy President of CityUHK; and Professor Wang Jianping, Associate Provost (Academic Affairs) of CityUHK and Director of the joint research centre, among others. Speaking at the opening ceremony, President Boey said, “We are honoured that CityUHK has been chosen as the first university partner of the Hon Hai Research Institute globally to work together to establish a joint research centre. This collaboration signifies the shared vision of CityUHK and the Hon Hai Research Institute to address the challenges of our times through innovative research. The joint research centre will serve as a collaborative platform for the elites from industry and the academic sector to nurture innovative ideas and advance the development of innovation and technology.” Dr Lee said, “The Hon Hai Research Institute will continue to work closely with CityUHK. We hope that the joint research centre will contribute to breakthroughs in the future development of innovation and technology.” CityUHK representatives and the Hon Hai Research Institute delegation visited the joint research centre after the opening ceremony to conduct further discussions on the future direction of the centre.  Officiating at the opening ceremony of the Foxconn-CityUHK Joint Research Centre are President Boey (third right), Dr Lee (third left), Professor Ma (second left), Professor Kuo (first left), Professor Lee (second right) and Professor Wang (first right). Attending the opening ceremony of the Foxconn-CityUHK Joint Research Centre are President Boey (seventh right), Dr Lee (seventh left), CityUHK representatives and the Hon Hai Research Institute delegation.

[Taipei, June 17, 2024] – Foxconn Interconnect Technology Ltd ("FIT", listed on the Hong Kong Stock Exchange under 6088), a subsidiary of Hon Hai (TW.2317), is expanding its presence in the electric vehicle (EV) sector. Following the acquisition of Germany's SWH Group in 2023 and the launch of the Voltaira brand for its mobility solutions portfolio, FIT Hon Teng has formed a joint venture with XYPower Technology Co., Ltd., establishing FXNWING New Energy Technology Co., Ltd. ("FXNWING") to enter the EV charger market. XY Power, based in Xi'an, specializes in EV charging and energy storage systems. With over 25 years of experience, their expertise in power module design will enhance FXNWING's production capabilities. Combined with FIT Hon Teng's manufacturing strengths, this partnership aims to deliver top-notch charging  and energy restorage solutions globally. With growth potential in the EV market, FIT will continue to partner with core technical experts to leverage business opportunities by shortening development times and enhancing the solution packages. Along with the the One-FIT strategy, the strong cooperation between FXNWING and Voltaira has resulted in a new series called Voltaira AC and DC chargers. The debut product Voltaira Anoles AC charger offer 7kW and 22kW charging power and has won the 2024 IF Product Design Award by featuring its interchangeable covers and easy cable and socket replacement to comply with various international standards. Its modular design and improved heat dissipation make it adaptable to different environments. At Europe’s largest smart energy exhibition, Smarter E Europe, on June 19-21, 2024, visitors were able to explore the Voltaira Royal Series. Targeting the Middle East and North Africa (MENA) market, the Royal Series includes DC fast charging stations and AC chargers for commercial and residential use. Designed for harsh climates, these products feature robust protection and intelligent power distribution to achieve high efficiency and reduce operational costs. FXNWING's innovation is further evidenced by the FitPile,the mini DC which has won a Red Dot Design Award. This recognition highlights FIT Hon Teng's commitment to innovation and technical excellence. Visit us at Messe München, Germany (MESSE) C6.635. About FIT (Foxconn Interconnect Technology) Hon Teng (HK.6088) Foxconn Interconnect Technology (FIT), listed on the Hong Kong Stock Exchange, focuses on precision design and manufacturing of connector products as its core. FIT continues to explore 5G AIoT, EV mobility, and audio applications areas, stepping into consumer brand operations. For more information about FIT, please see: www.fit-foxconn.com. Email: fit-ir@fit-foxconn.com         sales-usa@fit-foxconn.com    

No major risks found, proactive effort to cover global footprint this year  12 June 2024, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) has completed independent, third-party audits of eight major manufacturing campuses in China and India, taking action as the world’s largest electronics manufacturing service provider to strengthen sustainability in its operations and serve as a global best-practice model. The findings confirmed the rights and interests of employees. No significant non-compliance were found in the areas examined, including labor, environment, corporate ethics, supply chain management and management systems.  Foxconn’s Sustainability Committee proactively raises awareness on sustainable and sound governance within the Group’s global operations. It began a process late last year to invite independent, third parties to audit campuses. With operations in China and India completing their audits in this round, the next set of third-party audits is being planned. Risk assessments will be performed this year at campuses in Southeast Asia, Europe and the United States to identify key business units for audit.  In the latest round, the audits were conducted by BSI and LRQA (formerly ELEVATE), taking six months to complete, and reviewed operations in Zhengzhou, Chengdu, Guanlan and Hengyang in China; and Andhra Pradesh and Tamil Nadu in India. The audits covered more than 200,000 employees.  The team of 18 auditors focused on labor rights, occupational health and safety, environment, supplier management and related issues. Management procedures, document record-keeping and implementation in each of the areas were examined. Spot checks were done on more than 900 positions and interviews held with direct and indirect reports in individual and group settings. In this audit, China adopted the RBA VAP 7.1 standard that is common in the electronics industry; while India adopted the ERSA 3.0 standard that integrates various industries including electronics. No major hidden risks were found in the areas examined, including any involving forced labor, environment, corporate ethics, supply chain management and management systems. However, a total of 144 deficiencies were identified, primarily in the areas of health and safety and labor conditions. Led by Foxconn’s ESG team, the Group has improved on 49 of them, while the remainder are being tracked and rectified. Sporadic issues in other areas such as environment, ethics and supply chain management are also being improved.

Deepens collaboration, drives intelligent ecosystems 4 June 2024, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced that it plans to build an advanced computing center in Kaohsiung, Taiwan, with the NVIDIA Blackwell platform at its core, as the CEOs of the two technology bellwethers reaffirmed their strong partnership at COMPUTEX 2024. The latest collaboration between Foxconn and NVIDIA signals a deepening commitment by the world’s largest electronics manufacturing service provider and market leader in making AI servers, alongside its world-class partner, to drive intelligent ecosystems covering AI, electric vehicles, smart factories, robotics, smart cities and other fields. NVIDIA founder and CEO Jensen Huang and Foxconn Chairman and CEO Young Liu caught up with each other on the exhibition floor of COMPUTEX, getting a comprehensive tour about their cooperation at the booth set up by Ingrasys, the Foxconn subsidiary that has been at the manufacturing epicenter of NVIDIA’s GB200 NVL72, MGX, HGX and other innovative products. Following the tour, Huang noted that NVIDIA and Foxconn have worked closely together on various product development, and the proof of the cooperation is clear, especially with the Blackwell product line-up; Foxconn has excellent vertical integration capabilities and is a vital partner for the GB200. On the spot, Chairman Liu announced that Foxconn will join hands with NVIDIA to build an advanced computing center in Kaohsiung with the NVIDIA Blackwell platform at its core. The cutting-edge computing center, anchored by the superchip GB200 servers, consists of a total of 64 racks and 4,608 GPUs, is slated for completion by 2026. NVIDIA’s powerful AI technology will drive Foxconn’s three smart platforms: Smart Manufacturing. Smart EV. Smart City. Both companies will continue to deepen cooperation in AI, electric vehicles, smart factories, robots, smart cities and other fields, and demonstrate the strong competitiveness brought by AI through Foxconn’s huge manufacturing scale. Huang said, “A new era of computing has dawned, fueled by surging global demand for generative AI data centers. Foxconn stands at the forefront as a leading supplier of NVIDIA computing and a trailblazer in the application of generative AI in manufacturing and robotics. Leveraging NVIDIA Omniverse and Isaac robotics platforms, Foxconn is harnessing cutting-edge AI and digital twin technologies to construct their advanced computing center in Kaohsiung.” The two companies will utilize NVIDIA Omniverse and create digital twins to introduce platforms for smart manufacturing, smart electric vehicles, and smart cities. For smart manufacturing platforms, image recognition technology, combined with the Group's autonomous mobile robots (AMR), will lead to changes for optimal capacity utilization. The production line planning will encompass existing manufacturing of AI servers and EV assembly plants. Toward that goal, the new Qiaotou automotive manufacturing facilities of Foxtron, a Foxconn subsidiary, will become one of the Group's benchmark AI factories. Currently under construction, the site will utilize digital twin connected to cloud technologies and achieve collaboration between virtual and physical production lines. Digital real-time monitoring will ensure the manufacturing excellence of an award-winning electric bus, which is currently seeing orders outpacing output capacity.  Going forward, the two companies’ collaborative effort in EV ADAS platform will be applied to future EV models designed by Foxconn. Presently, Foxconn is negotiating projects with traditional European and American automakers. Moreover, based on NVIDIA's new generation of chips, Foxconn and NVIDIA jointly plan a "cabin-driving-in-one" smart travel solution, creating a third living space. Centering on the smart city platform being created in Kaohsiung, the two companies will also work with ecosystem partners to make generative AI applications a reality. This plan is in addition to the advanced computing center to be jointly built by Foxconn and NVIDIA. Currently, the Group has supported the Kaohsiung City Government in introducing smart public transportation management. In the future, efforts will introduce generative AI technology in the fields of digital governance and medical health to benefit local residents, government, enterprises and visiting tourists.

(Taipei, June 02, 2024) As a global pioneer in AI solutions and cloud infrastructure, Ingrasys, a subsidiary of Foxconn Technology Group, today announced that it will showcase its latest AI and data center products, solutions, as well as critical green technologies for enhanced cooling and energy efficiency under the theme of "Next-Gen AI Computing" at Computex Taipei 2024. "AI is accelerating digital transformation across industries," stated Benjamin Ting, President of Ingrasys. "Our AI products and solutions, integrating cutting-edge hardware and software R&D with advanced performance, deliver high-performance, energy-efficient, and scalable offerings to drive green digital transformation and unleash AI's boundless potential." Ingrasys Highlights at Computex 2024: As a pioneering partner in integrating NVIDIA's Blackwell architecture GPUs, Ingrasys unveils the future of next-generation AI data centers by showcasing the latest NVIDIA GB200 NVL72 rack-scale solution. This system supports multi-node and liquid cooling, connecting 72 Blackwell GPUs with 36 Grace CPUs into a single giant GPU, capable of delivering trillion-parameter LLM training and real-time inference.  With the rising demand for enormous AI computing power, the importance of liquid cooling technology has become increasingly evident. Ingrasys showcases advanced liquid cooling solutions, including the liquid-to-air side car solution and the liquid-to-liquid CDU solution, addressing the diverse needs of various data center environments and offering the most comprehensive AI data center solutions. Ingrasys also introduces a series of modular innovations, including self-developed modular servers that support the latest AMD EPYC™ processors and Intel® Xeon® processors, as well as a broad portfolio of 1U/2U/4U NVIDIA MGX™ Systems to meet diverse accelerated computing needs. Additionally, Ingrasys presents the latest liquid-cooled and air-cooled AI accelerators that support different platforms, including NVIDIA HGX™ H200/B100/B200, AMD Instinct™ MI300X platform and Intel® Gaudi® 3 accelerators, offering a wide array of options for optimized performance and flexibility in AI workloads. As Foxconn Technology Group's AI-focused subsidiary, Ingrasys has injected robust momentum into the group's AI and cloud computing businesses. According to Foxconn's Q1 2024 earnings call, AI server revenue nearly doubled year-over-year, with expectations for continued quarter-over-quarter growth. General server demand is also witnessing a sustained rebound, positioning the overall server segment for robust growth. With years of dedication in the AI field, Ingrasys continuously introduces innovative, high-quality products and solutions with rapid development cycles. Leveraging its diversified AI portfolio and profound expertise, Ingrasys maintains close collaboration with partners, jointly contributing to AI technological advancements and driving global industrial digital transformation. We cordially invite you to visit the Ingrasys exhibit to experience our latest AI innovations and engage with our team. Ingrasys at Computex 2024: Dates: June 4 - June 7 Location: Taipei Nangang Exhibition Center, 4F, Booth #L0309a About Ingrasys Ingrasys is a global leading cloud infrastructure pioneer that leverages innovative technologies – including hyperconverged infrastructure, HPC with CDI architecture, AI/ML, and advanced cooling solutions – to meet sophisticated data center needs worldwide. Its extensive product portfolio spans servers, storage, HPC accelerators, workstations, and integrated services. By continuously developing cutting-edge technologies and closely tracking industry trends, Ingrasys fosters long-term partner relationships, delivers exceptional client support, and drives innovation within the hyper-scale cloud ecosystem.

Special exhibition for 50th anniversary displays strengths in AI servers, 3 smart platforms 31 May 2024, New Taipei City, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today, at its annual shareholders’ meeting, approved its distributable earnings plan totaling NT$74.86 billion in cash. The cash dividend of NT$5.40 per share for 2023 sets a new high since Foxconn listed in 1991, with the cash dividend payout ratio exceeding 50% for the fifth consecutive year.  In addition to voting for the 2023 annual business report and financial statements, shareholders also approved the 2023 employees’ remuneration distribution plan or an issuance of NT$8.26 billion in cash remuneration to employees. This year marks the 50th anniversary of Foxconn’s founding. When the company went public in 1991, its revenue was less than NT$10 billion. It has since grown to more than NT$6 trillion and is now the 27th largest company in the world in terms of revenue. Presiding over the annual shareholders’ meeting, Foxconn Chairman Young Liu began by especially thanking the shareholders in attendance online and onsite at the company’s headquarters in New Taipei City. He took shareholders through the company's operating results over the past year and shared Foxconn’s future development plans, covering 10 major themes in detail.  Chairman Liu said high inflation and high interest rates in the post-pandemic era have dampened end-market demand and investment willingness of enterprises. For Foxconn, it is both a challenge and an opportunity. Supported by the collective efforts of the Group’s employees, Foxconn was able to tap into its long-established advantages and achieve a revenue of NT$6.16 trillion, the second-highest recorded annually. At the same time, EPS reached NT$10.25, a 16-year high. All three profit metrics gained on a gross, operating and net basis. The results show that while the company is pursuing EPS maximization, it also continues to optimize its product mix and continuously improve gross profit margins. Looking forward to the future, Foxconn will transform from a manufacturing services provider into a platform solutions provider, focusing on the development of three major platforms: Smart Manufacturing, Smart EV, and Smart City. Utilizing the experience and technical capabilities of components, modules, system assembly, IC and software accumulated by Foxconn over decades, and with the help of the generative AI factory, the Group will develop various solutions required for the three platforms. Foxconn will also work with NVIDIA to develop the next generation of AI and robotic production systems. Chairman Liu said the AI industry is still in the initial stage of rapid growth. Some research institutions predict that the AI industry will exceed US$1 trillion within the next seven to eight years, with hardware accounting for more than half of that scale. This area will also be one of the main driving forces for Foxconn's future growth. The company's AI server revenue will grow by more than 40% this year, and its share of overall server revenue will also reach more than 40%. As demand for AI grows, AI servers will soon become Foxconn’s next trillion-dollar revenue product. In terms of EV development, from 2022 the production of electric buses and electric traction motors started, and this year the MODEL C passenger EV entered mass production in Taiwan. Shipments in the first four months have surpassed 2,000 units and are expected to exceed 10,000 units for the year with a revenue target of more than NT$10 billion. In the fourth quarter of this year, preparations will be complete for mass production of another passenger EV, the sporty crossover MODEL B; pre-orders will begin in 2025. In EV software, Foxconn has obtained ISO 26262, the international standard for functional safety of automotive electrical and/or electronic systems, affirming the quality and safety of the software. Under BOL, Foxconn’s innovative business model to build, operate and localize with local partners, customers are offered EV software service, and the goal of software-defined vehicles is achieved. Foxconn’s Kaohsiung Software R&D Center was opened last year. Going forward, it will accelerate the development of Taiwan’s software industry based on the three major smart platforms. The 5th annual Hon Hai Tech Day (HHTD24) was also officially announced at the shareholders' meeting. In addition to expanding the event into two days, exhibitions of the three smart platforms and AI, along with electric vehicle models and other key products will be showcased and refreshed for the senses. HHTD24, set for October 8-9 this year, will open to the general public for the first time on day two, so that friends who are interested can experience it in person and learn about the Group’s latest technological developments. As one of the series of events marking Foxconn’s half centennial, this year's shareholders' meeting held a special exhibition on the first floor of the company’s global headquarters, displaying five electric vehicles including MODEL C, MODEL B, MODEL E, MODEL V and MODEL N. The MODEL T electric buses, designed and manufactured by the Group, provided transportation for shareholders, while a "50-year Time Corridor" from the entryway allowed shareholders to see and understand the company’s growth history. Foxconn displayed the latest generation of AI servers and liquid-cooling racks jointly developed with customers to help accelerate generative AI computing during NVIDIA's annual GTC show in March. The much sought-after AI servers, on display at that time, were specially reconstructed again with detailed audio and video animation to give shareholders a closer look. Also set up in the special exhibition for shareholders, Factory GPT was displayed for the first time, giving shareholders a look at various applications of generative AI in the factory environment. In the Smart Tourism exhibition area, shareholders could try out City Glass AR glasses to experience futuristic travel. A range of digital health devices were also on display, demonstrating the Group's efforts to develop a new ecosystem for telemedicine. Foxconn displayed the original 1:1 scale model of the low-Earth-orbit satellite, which was launched last November. This gave shareholders a close-up, life-size view of the “PEARL” that is orbiting space. A new wave of shopping promotions and discounts for Foxconn shareholders officially launched at the annual general meeting. Enthusiastically welcomed every year, this year six of the Group’s affiliates, ShunSin Technology Holdings Ltd, Healthconn Corp, Ennoconn Corp, ESON Precision Engineering Co Ltd, Foxsemicon Integrated Technology Inc and General Interface Solutions Holding Ltd (GIS) were invited to take participate, expanding the beneficiaries. In total, participating vendors include 37 shops, more than 1,200 physical stores, covering all aspects from cuisine, apparel, accommodation and transportation to education and entertainment. Through these different ways, the Group shows its appreciation and serves shareholders who have long supported Foxconn. Official YouTube channel of the annual shareholders’ meeting can be found here: https://www.youtube.com/watch?v=uWI0EqAIh7s 

- Siemens and Foxconn sign memorandum of understanding (MoU), highlighting joint sustainability commitment - Cooperation to define standards for the factory of the future and for manufacturing processes - Innovations to positively impact information and communications technology and electric-vehicle production ecosystems  - Siemens Xcelerator portfolio to optimize Foxconn’s operations for efficiency and agility Siemens AG, a leading technology company, and Hon Hai Technology Group (Foxconn) (TWSE:2317), the world’s largest electronics manufacturer, have signed a memorandum of understanding (MoU) to drive digital transformation and sustainability in smart manufacturing platforms.  The collaboration focuses on global manufacturing processes in electronics, information and communications technology, and electric vehicles (EV). Siemens and Foxconn are working together to establish a scalable and seamless engineering and manufacturing ecosystem. Roland Busch, President and CEO of Siemens AG, emphasized the significance of this partnership: “At Siemens, we believe in the power of partnerships to drive positive change. Our collaboration with Foxconn underscores our commitment to innovation and sustainability as we work together to shape the future of electronics manufacturing.” Young Liu, Chairman and CEO of Hon Hai Technology Group (Foxconn), said: “Foxconn is transforming into a platform solutions provider for smart manufacturing, smart EVs and smart cities. Joining forces with Siemens accelerates our digital transformation journey and opens up new possibilities for innovation and sustainability.” This MoU identifies key collaboration areas to increase the automation level at Foxconn’s facilities. These areas include electronics manufacturing service (EMS) and contract design and manufacturing service (CDMS), which is Foxconn’s innovative business model for electric vehicles. Both companies will explore initiatives to work toward the factory of the future by implementing Siemens’ leading factory automation portfolio and industrial software, which include building blocks such as digital twin technology and artificial intelligence (AI). Siemens Xcelerator, with its comprehensive suite of software and solutions, will play a pivotal role in optimizing Foxconn’s engineering and manufacturing workflows, facilitating efficiency and agility across its operations. This collaboration aims to leverage how Siemens’ technical expertise can enhance Foxconn’s sustainability performance, contributing to energy savings and a reduced CO2 footprint. This partnership involves establishing transparent monitoring processes and applying professional services and digital solutions because both companies are working toward a greener future for electronics manufacturing. “Electronics are the backbone of modern society, powering everything from communication to transportation. We are, therefore, very proud to intensify our collaboration with Foxconn,” said Cedrik Neike, CEO of Digital Industries and member of the Managing Board of Siemens AG. “With Siemens’ domain knowhow and leading portfolio in factory automation and software, we’ll accelerate the transformation of the electronics manufacturing industry and support Foxconn to not only achieve its sustainability targets, but also improve efficiency.”  Dr. Zhe Shi, Foxconn’s Chief Digital Officer and head of its Smart Manufacturing platform, added: “Siemens is a leader in providing digital transformation solutions. Our deepening collaboration to build the factory of the future in the AI era will enable us to provide topflight manufacturing service to all our customers.” 

Visibility better vs start of year due to strong AI server demand 1Q24 net profit up 72% on year; AI server growth up nearly 200% on-year 2Q24 expected to show significant growth QoQ, YoY Full year 2024 outlook for significant growth unchanged Japan has become important market for Group’s electric vehicle CDMS 14 May 2024, Taipei, Taiwan – Hon Hai Technology Group (“Foxconn”) (TWSE:2317) today announced its first quarter 2024 financial results. In the January-March quarter revenue hit NT$1.324 trillion, with key profit margins all improving. Earnings per share for the first three months of 2024 reached NT$1.59. Looking ahead at the second quarter, despite its traditional off-peak season and with the exception of smart consumer electronics, the other three major product segments should experience strong growth, reflecting the Group’s leading edge in the ICT industry and capabilities to attract new business. There will be significant growth quarter-on-quarter and year-on-year in the second quarter; the magnitude will be better than the average level of the past three years. Due to strong demand for AI servers, the company sees visibility for the full year is better than at the beginning of the year. In the first quarter of 2024, revenue reached NT$1.324 trillion, down 9% on year. For the same period, gross profit at NT$83.7 billion, was off 5% on year; operating profit at NT$36.8 billion, declined 9% on year; however, net profit (attributable to the owners of the parent company) at NT$22 billion, rose 72% on year. Gross profit margin, operating profit margin and net profit margin all improved, standing at 6.32%, 2.78%, and 1.66% respectively, compared with 6.04%, 2.77%, and 0.88% in the same period last year; EPS for the first three months of this year reached NT$1.59, compared with NT$0.93 a year ago, an increase of NT$0.66. During the last investor conference in March, Hon Hai raised its full-year 2024 outlook from neutral to significant growth. The outlook remains unchanged, but full-year visibility is now better than in March, primarily due to strong demand for AI servers. The existing ICT market size is nearly US$1 trillion, while some research institutions predict the AI industry will exceed US$1 trillion within seven to eight years, with hardware accounting for more than half of that scale. This is the sweet spot for Taiwanese manufacturers, particularly for Hon Hai. In coming years the emerging AI industry can contribute greatly to the Group and drive a significant increase in revenue and the proportion of Hon Hai's cloud and networking products. Responding to continued increase in demand for AI servers, Hon Hai’s revenue from AI servers in the first quarter grew nearly 200% compared with the same period last year and is expected to improve with each quarter; at the same time, general server demand also continues to rebound, leading to strong growth in overall servers. Demand for networking products has also begun to rebound. Regarding Hon Hai’s vertical integration advantages in the AI server industry, Hon Hai is pretty much the only one who can provide every key component from modules, baseboards, servers, high-performance switches, liquid cooling systems to complete racks and data centers. The key to our technology excellence is our in-house R&D for those components. Also, the Group’s deployment of comprehensive server production bases around the world not only meets customers’ stringent requirement for localization, but also heightens Hon Hai’s manufacturing capabilities due to higher requirements for water, electricity and gas during production and testing of AI servers. Aside from continuously optimizing the system performance of products to satisfy the highest quality demands of customers, Hon Hai has also set up an AI performance laboratory to enhance the integration of software and hardware through systematic analysis. Moreover, the Group’s Taoyuan Nanqing Factory obtained certification as the world's first AI server Lighthouse factory, demonstrating our leadership in AI hardware production and manufacturing. Turning to electric vehicles, the MODEL C – the passenger SUV sold under the Luxgen-branded N7 – took the top spot in April for unit sales of electric vehicles in Taiwan. For the first four months of this year, deliveries to the automotive customer exceeded 1,500 units and will be accelerated going forward. Before the third quarter of this year, all orders currently in hand can be completed. Annual shipments will exceed 10,000 units, and the revenue target will exceed NT$10 billion. Regarding MODEL B, the anticipated and well-liked sporty crossover EV, it has entered the mass production development stage and Hon Hai anticipates mass production to begin in the first half of next year. Demand outstrips supply for the MODEL T, the electric bus that is part of public transport in cities across Taiwan. In order to increase its production capacity, the Kaohsiung Qiaotou plant broke ground last month and will begin production and shipment in the third quarter of 2025. Initial output will be about 500 vehicles per year, expanding to a target of 1,000 vehicles in 2028. Moreover, the new Qiaotou plant will also plan for an experimental testing environment for commercial and passenger vehicles to further promote Taiwan's electric vehicle industry. In addition to the Taiwan market, Hon Hai anticipates sales abroad for those three electric vehicles to expand into the markets of Southeast Asia, the United States and Europe. Moreover, since the fourth quarter of last year, rapid progress has been made in Japan. Japan has become one of Hon Hai's most important markets; the Group currently has two CDMS customers and three ongoing CDMS projects. MOUs between Hon Hai and the customers are in place, and formal contracts are expected to be signed in the third and fourth quarters of this year. Further details will be disclosed at an appropriate time. In the field of autonomous driving, Hon Hai continues to cooperate with NVIDIA to optimize the development of autonomous driving software. Through the powerful computing power of NVIDIA AI toolchain, we can quickly deploy the latest algorithms, greatly accelerating the research and development process. We also propose a more integrated architecture and continue to optimize the design of the four core components, which can effectively shorten the time-to-market of the whole vehicle for customers. Discussing SHARP’s operational direction, Hon Hai points out: “The worst is behind SHARP. Its future only gets better from here!” SHARP’s unique, innovative technology and century-old brand are very rare in the global market. SHARP has set aside asset impairment from the panel display business to facilitate its move to become asset light. Going forward, Hon Hai will cooperate with SHARP to integrate its smart products for people, vehicles, home and office into our 3+3 strategy that we actively promote, and together we will seize new opportunities in the AI technology revolution.