Q2 2026 ASUSTeK Computer Inc Earnings Call

August 12, 2026

Operator: Today's meeting will be hosted by ASUS Co-CEOs, Mr. Xianyue Hsu and Mr. Samson Hu, alongside CFO Mr. Nick Wu. The conference will be divided into two parts. In the first part, the CFO will outline ASUS financial results for Q2 2026, followed by the Co-CEOs who will discuss our operational strategies and outlook. The second part will be a Q&A session. If you have any questions, please submit them via the webpage and we will address them after the presentation. Thank you. We will now begin with the presentation from the CFO.

Operator: Today's meeting will be hosted by ASUS Co-CEOs, Mr. S.Y. Hsu and Mr. Samson Hu, alongside CFO Mr. Nick Wu. The conference will be divided into two parts. In the first part, the CFO will outline ASUS financial results for Q2 2026, followed by the Co-CEOs who will discuss our operational strategies and outlook. The second part will be a Q&A session. If you have any questions, please submit them via the webpage and we will address them after the presentation. Thank you. We will now begin with the presentation from the CFO.

Speaker #1: This meeting will be hosted by ASUS co-CEOs Mr. S.Y. Hsu and Mr. Samson Hu, alongside CFO Mr. Nick Wu. The conference will be divided into two parts: in the first part, the CFO will outline ASUS's financial results for the second quarter of 2026, followed by the co-CEOs who will discuss our operational strategies and outlook.

Speaker #1: The second part will be a Q&A session, and if you have any questions, please submit them via the web page, and we will address them after the presentation.

Speaker #1: Thank you. We will now begin with the presentation from the CFO. hello everyone. Thank you for joining the ASUS 2026 Q2 online investor conference.

Nick Wu: Hello, everyone. Thank you for joining the ASUS 2026 Q2 Online Investor Conference. Please turn your attention to page 5 of the PowerPoint. Page 5 provides a summary of ASUS brand consolidated income statement for Q2 2026.

Nick Wu: Hello, everyone. Thank you for joining the ASUS 2026 Q2 Online Investor Conference. Please turn your attention to page five of the PowerPoint. Page five provides a summary of ASUS brand consolidated income statement for Q2 2026.

Speaker #1: Please turn your attention to page 5 of the PowerPoint. Page 5 provides a summary of ASUS's brand consolidated income statement for Q2 2026. We are pleased to report that the second quarter of 2026 saw outstanding operational results.

Nick Wu: We are pleased to report that Q2 2026 saw outstanding operational results. We achieved all-time historical highs for the brand across consolidated revenue, operating profit, and net profit after tax. We see that revenue reached TWD 241 billion, representing a year-over-year growth of 39%. Operating profit was TWD 19.6 billion, an increase of 230% year-over-year. Net profit after tax stood at TWD 19 billion, up 94% year-over-year. This translates to quarterly earnings per share EPS of TWD 25.6. The revenue growth in Q2 was primarily driven by momentum in AI servers and the PC business. Our growth and operating margins reflect the strength of the ASUS brand, our high-end competitive product mix, and the supply chain resilience and control that we have previously reported.

Speaker #1: We achieved all-time historical highs for the brand across consolidated revenue, operating profit, and net profit after tax. We see that revenue reached $241 billion, representing a worldwide growth of 39%.

Speaker #1: Operating profit was $19.6 billion, an increase of 230% year over year. Net profit after tax stood at $19 billion, up 94% worldwide. This translates to a quarterly earnings per share EPS of $285.6.

Speaker #1: The revenue growth in the second quarter was primarily driven by momentum in AI servers and the PC business. Our growth and operating margins reflect the strength of the ASUS brand, our high-end competitive product mix, and the supply chain resilience and control that we have previously reported.

Speaker #1: We are very pleased to have fulfilled our commitment to outperform the industry and we are confident that this outperformance will continue into subsequent quarters which will allow us to further expand ASUS's growth potential and operational results going forward.

Nick Wu: We are very pleased to have fulfilled our commitment to outperform the industry. We are confident that this outperformance will continue into subsequent quarters, which will allow us to further expand ASUS growth potential and operational results going forward. Please move to the next page. This covers our non-operating income and expenses. In Q2 2026, interest income was approximately TWD 460 million. Investment income was TWD 1.47 billion. Foreign exchange gains were TWD 1.22 billion, and dividend income was TWD 1.8 billion. Consequently, total non-operating income for Q2 was approximately TWD 5 billion, remaining roughly flat year-over-year. Looking at page 7, this presents the brand balance sheet. As of Q2, cash and cash equivalents were maintained at approximately TWD 70.9 billion. Accounts receivable increased to TWD 165.3 billion. We saw a significant increase in inventory, which rose to TWD 339.9 billion.

Speaker #1: 大家好，欢迎各位参加华硕电脑2026年第二季线上法人说明会。今天的会议由华硕共同执行长许现岳先生、胡舒斌先生及财务长吴长荣先生主持。今天的会议分成两个阶段，第一个阶段先由财务长说明华硕2026年第二季的财务结果，再由共同执行长说明华硕的营运策略与未来展望。第二个阶段为QA时间，若您有任何问题，可以在网页上提问，我们将于简报结束后进行回答。谢谢。现在我们先由财务长进行简报，谢谢。

[Company Representative] (华硕): 大家好，欢迎各位参加华硕电脑2026年第二季线上法人说明会。今天的会议由华硕共同执行长许先越先生、胡书宾先生及财务长吴长荣先生主持。今天的会议分成两个阶段，第一个阶段先由财务长说明华硕2026年第二季的财务结果，再由共同执行长说明华硕的营运策略与未来展望。第二个阶段为Q&A时间，若您有任何问题，可以在网页上提问，我们将于简报结束后进行回答，谢谢。现在我们先由财务长进行简报，谢谢。

Speaker #1: Please move to the next page. This covers our non-operating income and expenses. In the second quarter of 2026, interest income was approximately $460 million, investment income was $1.47 billion, foreign exchange gains were $1.22 billion, and dividend income was $1.8 billion.

Speaker #1: So consequently, total non-operating income for Q2 was approximately $5 billion, remaining roughly flat worldwide. And looking at page 7, this presents the brand balance sheet.

Speaker #2: 好，各位好。那谢谢各位参加今天华硕2026年第二季的这个线上法说会。那先请各位看到投影片的第5页。那第5页呢，揭示的是华硕在2026年第二季品牌合并损益表的一个摘要。那我们很高兴地向大家报告，就是华硕在2026年的第二季是有一个非常亮丽的营运成果的一个达成。那包括在品牌的合并营收，包括在品牌的营业利益，以及品牌的这个税后净利。那我们都是达到了这个历来品牌的这个历史新高。那在营收的部分，新台币2410亿，年成长是达到了这个39%。那营业利益是196亿，年成长是230%。那税后净利的话是190亿，年成长是这个94%。那换算成单季的这个每股盈余是每股新台币25.6元。那整个第二季的这个营收增长，那主要来自于这个AI伺服器，那以及PC这边的一个营收增长的一个动能。那在这个毛利率以及营利率的部分，那反映的就是华硕的这个品牌力的这个品牌价值，那以及我们相对具有高阶竞争力的这个产品组合。那也反映了这个之前我们跟大家报告的，那华硕在供应链这边的一个韧性跟这个掌握程度。那所以我们也很高兴我们达成了之前设定就是说要能够达成超越航业内营运成果这样的一个承诺。那我们也有信心，就是说这样的一个outperformance的一个表现，那会持续到后面的一个季度，持续扩大华硕的这个成长性，那跟营运成果上面的一个增长。好，那我们请各位看到下一页，是这个营业外损益的这个项目。那在2026年的第二季，利息收益大概是4.6亿元，那投资收益大概是14.7亿元，那汇兑收益大概是12.2亿元，那股利收入大概是新台币18亿元，那所以合计在第二季的这个营业外收入总计大约是新台币50亿元，那YOY大概是一个持平的一个状态。那请各位看到第7页，这边揭示的这个华硕的这个品牌损益表，对不起，是品牌的这个资产负债表。那在第二季的话，现金及月当现金大约是维持在这个新台币709亿，那营收账款是增加到了1653亿，那增加比较大的，包括我们的这个存货的这个净额是增加到了3399亿，那其中大多数这个具有高单价以及关键价值的这个关键零组件的一些库存的一些策略准备，那也去支持华硕预期在第三季以及下半年已经看到的这个订单的能见度以及营运上面的一个增长。那另外在这个应付账款的部分，也是随着整个营收规模的一个营运规模的一个扩大，那应付账款的这个金额是来到了1945亿，那整体来看的话，其实华硕到第二季底为止，那累积的这个股东权益净值是3013亿，那整个资产的一个总额大概是新台币8033亿，那以上这些比较重要的数据，请各位做参考。那我们再看到投影片的第8页，那这边揭示的是我们的这个营收组成，那从产品别来看的话，系统事业群的营收贡献是45%，那开放平台事业群的营收贡献占比是19%，那infrastructure solution这边的一个营收占比是36%，那从区域别来看的话，亚太地区的这个占比是50%，那欧洲地区是35%，那美洲地区是15%，那这个是我们这个营收组成的一个摘要。那再请各位看到第9页，那我们这边报告的是我们对第三季的这个目标以及营运展望。首先我们能够看到的是在我们的三大的这个主力产品线，都能够达成不错程度的这个季增长，那PC的这个季增长是15%到20%，那零组件这边的季增长是5%到10%，那server这边的这个季增长是10%到15%，那如果从年对年的这个角度来看的话，PC的这个年增长其实是更能够达到超越20%这样的一个年增长，那伺服器呢，持续它非常强劲的一个成长动能，那预期还有这个150%以上的这样的一个年增长。那所以整个综合来看的话，那我们预期第三季的这个营收以及这个营运的这个成长动能，那还能够在持续创高。那同时呢，就像前面提到的，那我们现在在对下半年以及未来一两年已经在做一个长期营运的这个规划以及长期营运的预算。那目前呢，其实在订单的能见度，然后在我们自己规划的新产品这边的一个成长动能，那包括Edge AI，那包括新型态的这种AI PC，那比如说像NVIDIA的这个Spark的这个tablet等等，那我们预期在之后年度呢，都还会有更大的这种创新以及新产品的一个成长周期。那所以为了支撑就是说未来两年到三年这样的能见度跟这样的一个营收增长动能，那华硕在今天的这个董事会，那也通过了这个两项资本市场的一个议案，那一个是呢，由华硕的这个股票去做15亿美元的可转债的一个发行，那另外呢，是用华硕持有的长期投资的这个研华的股权，作为一个10亿美元的一个可交换债的发行。那这样的一个筹资准备，我们的一个这个引用一句话是说这个有点是这个叫做大军未动粮草先行，在预期到未来这一段时间之内，可以达到的这个强劲增长的这个动能的一个能见度之下。那我们先启动，在整个公司的这个营运资源以及财务资源上面，那做更充分的一个准备。好，所以以上这边大概是财务面的一个报告。那接下来我请我们的两位共同执行长，那SY跟Samson，那各位分享这个营运的这个重点以及营运策略，谢谢。

[Company Representative] (华硕): 好，各位好。谢谢各位参加今天华硕2026年第二季的线上法说会。先请各位看到投影片的第五页。第五页揭示的是华硕在2026年第二季品牌合并损益表的一个摘要。我们很高兴地向大家报告，华硕在2026年的第二季是有一个非常亮丽的营运成果的达成，包括在品牌的合并营收，包括在品牌的营业利益，以及品牌的税后净利，我们都是达到了品牌历来历史新高。在营收的部分，新台币2,410亿，年成长是达到了39%；营业利益是196亿，年成长是230%；税后净利的话是190亿，年成长是94%；换算成单季的每股盈余，是每股新台币25.6元。整个第二季的营收增长，主要来自于AI服务器，以及PC这边的营收增长的动能。在毛利率以及营业利益率的部分，反应了华硕的品牌力的品牌价值，以及我们相对具有高阶竞争力的产品组合，也反映了之前我们跟大家报告的，华硕在供应链这边的韧性跟掌握程度。所以我们也很高兴我们达成了之前设定，就是要能够达成超越行业内营运成果这样的一个承诺。我们也有信心，这样的outperformance表现，会持续到后面的季度，持续扩大华硕的成长性，跟营运成果上面的增长。好，我们请各位看到下一页，是营业外损益的这个项目。在2026年的第二季，利息收益大概是4.6亿元，投资收益大概是14.7亿元，汇兑收益大概是12.2亿元，股利收入大概是新台币18亿元。所以合计在第二季的营业外收入，总计大约是新台币50亿元，YoY大概是一个持平的状态。请各位看到第七页，这边揭示的是我们的品牌损益表，对不起，是品牌的资产负债表。在第二季的话，现金及约当现金大约是维持在新台币709亿，应收账款是增加到了1,653亿，增加比较大的，包括我们的存货的净额是增加到了3,399亿，其中大多数具有高单价以及关键价值的关键组件的一些库存的一些策略准备，也去支持华硕预期在第三季以及下半年，已经看到的订单的能见度，以及营运上面的增长。另外在应付账款的部分，也是随着整个营收规模、营运规模的扩大，应付账款的金额是来到了1,945亿。整体来看的话，其实华硕到第二季底为止，累积的股东权益净值是3,013亿，整个资产的总额大概是新台币8,033亿。以上这些比较重要的数据，请各位做参考。我们再看到投影片的第八页，这边揭示的是我们的营收组成。从产品别来看的话，系统事业群的营收贡献是45%，开放平台事业群的营收贡献占比是19%，Infrastructure Solution这边的营收占比是36%。从区域别来看的话，亚太地区的占比是50%，欧洲地区是35%，美洲地区是15%。这个是我们营收组成的一个摘要。再请各位看到第九页，我们这边报告的是我们对第三季的目标以及营运展望。首先我们能够看到的是，在我们的三大主力产品线，都能够达成不错程度的季增长。PC的季增长是15到20%，零组件这边的季增长是5到10%，Server这边的季增长是10到15%。如果从年对年的角度来看的话，PC的年增长其实是更能够达到超越20%这样的一个年增长。服务器持续它非常强劲的成长动能，预期还有150%以上的年增长。所以整个综合来看的话，我们预期第三季的营收以及营运的成长动能，还能够再持续创高。同时，就像前面提到的，我们现在在对下半年以及未来一两年，已经在做一个长期营运的规划，以及长期营运的预算。目前，在订单的能见度，我们在自己规划的新产品这边的成长动能，包括Hybrid AI，包括新型态的这种AI PC，比如说像NVIDIA的RTX Spark的tablet等等，我们预期在之后年度都还会有更大的这种创新以及新产品的成长周期。所以为了支撑未来两年到三年这样的能见度，跟这样的一个营收增长动能，华硕在今天的董事会也通过了两项资本市场的议案。一个是由华硕的股票去做新台币150亿的可转债的发行，另外是用华硕持有的长期投资的研华的股权，做一个新台币100亿的可交换债的发行。这样的一个筹资准备，我们引用的一句话是，大军未动，粮草先行。在预习到未来这一段时间之内，可以达到的强劲增长的动能的能见度之下，我们先启动，在整个公司的营运资源以及财务资源上面做更充分的一个准备。以上这边大概是财务面的一个报告。那接下来我请我们的两位共同执行长先越跟Samson为各位分享营运的重点，以及营运策略，谢谢。

Speaker #1: As of the second quarter, cash and cash equivalents were maintained at approximately $70.9 billion, accounts receivable increased to $165.3 billion, we saw a significant increase in inventory, which rose to $339.9 billion, this is largely due to strategic stockpiling of high unit price and critical components to support order visibility and operational growth as we anticipate demand for the third quarter and the second half of the year.

Nick Wu: This is largely due to strategic stockpiling of high unit price and critical components to support order visibility and operational growth as we anticipate demand for Q3 and the H2 of the year. Additionally, as our scale of operations expanded, accounts payable reached TWD 194.5 billion. Overall, by the end of Q2, we expect that the accumulated shareholders' equity will stand at TWD 301.3 billion, with total assets totaling approximately TWD 803.3 billion. Please refer to these key figures for your insight. On to page 8, we outline our revenue composition. Breaking down by business group, the System Business Group contributed 45% of revenue. The Open Platform Business Group accounted for 19%, and the Infrastructure Solutions Business Group represented 36%. Breaking down by region, Asia-Pacific accounted for 50%, Europe 35%, and the Americas 15%. That was an overview of our revenue breakdown by different metrics.

Speaker #1: Additionally, as our scale of operations expanded, accounts payable reached $194.5 billion. And overall, by the end of Q2, we expect that the accumulated shareholders' equity will stand at $301.3 billion.

Speaker #1: With total assets totaling approximately $803.3 billion, please refer to these key figures for your insights. Over on to page 8, we outline our revenue composition.

Speaker #1: Breaking down by business group, the system business group contributed $45% of revenue, the open platform business group accounted for 19%, and the infrastructure solutions business group represented 36%.

Speaker #1: And breaking down by region, Asia Pacific accounted for 50%, Europe 35%, and the Americas 15%. And that was an overview of our revenue breakdown by different metrics.

Speaker #1: Turning over to page 9, we report our targets and operational outlook for Q3. First, we expect that we are going to experience healthy quarterly growth across our three main product lines.

Nick Wu: Turning over to page 9, we report our targets and operational outlook for Q3. First, we expect that we are going to experience healthy quarterly growth across our three main product lines. PC growth is projected at 15% to 20%, components at 5% to 10%, and servers at 10% to 15%. From a year-over-year perspective, PC growth is expected to exceed 20%, while servers will continue to show exceptionally strong momentum with projected year-over-year growth of over 150%. Overall, we expect revenue and operational growth to continue to reach new heights as we enter the third quarter. Furthermore, as mentioned before, we are currently engaged in long-term operational planning and budgeting for the H2 of this year, and in fact, the next 1 and 2 years potentially.

Speaker #1: PC growth is projected at 15% to 20%. Components at 5% to 10%. And servers at 10% to 15%. From a year-over-year perspective, PC growth is expected to exceed 20%, while servers will continue to show exceptionally strong momentum with projected year-over-year growth of over 150%.

Speaker #1: So overall, we expect revenue and operational growth to continue to reach new heights, as we enter the third quarter. And furthermore, as mentioned before, we are currently engaged in long-term operational planning and budgeting for the second half of this year, and in fact, the next one and two years potentially.

Speaker #1: So based on current order visibility and the momentum, our planned new products and that, of course, includes Edge AI deployments, AI PCs, HPCs, products like NVIDIA's RTX Spark, we anticipate that there are going to be larger innovation and product growth cycles in the coming years.

Nick Wu: Based on current order visibility and the momentum of our planned new products, that of course, includes edge AI deployments, AI PCs, HPCs, products like NVIDIA's RTX Spark. We anticipate that there are going to be larger innovation and product growth cycles in the coming years. To support that level of visibility and revenue momentum over the next 2 to 3 years, the board of directors today approved two capital market resolutions. The first being the issuance of $1.5 billion in convertible bonds, and secondly, the issuance of $1 billion in exchangeable bonds using ASUS's long-term investment in Advantech. To put it simply, we are ensuring that our logistics are secured before the army moves. That is a strategy that we're hoping, given the visibility of the strong growth momentum ahead, will help us proactively prepare for future operational and financial resource allocation.

Speaker #1: And so to support that level of visibility and revenue momentum over the next two to three years, the board of directors today approved two capital market resolutions.

Speaker #1: The first being the issuance of a $1.5 billion in convertible bonds and secondly, the issuance of $1 billion in exchangeable bonds using ASUS's long-term investment in Advantech.

Speaker #1: And so to put it simply, we are ensuring that our logistics are secured before the army moves, and that is a strategy that we're hoping given the visibility of the strong growth momentum ahead, will help us proactively prepare for future operational and financial resource allocation.

Speaker #1: And that concludes the financial report. I will now hand it over to our two co-CEOs, Esra and Samson, to share the operational highlights and strategies.

S.Y. Hsu: That concludes the financial report. I will now hand it over to our two Co-CEOs, Sy and Samson, to share the operational highlights and strategies. Thank you. Thank you. Good afternoon, everyone, investors and members of the press. I would like to welcome everyone to the ASUS 2026 Q2 Investor Conference. I am Co-CEO S.Y. Hsu, and I will now provide a detailed instruction to our strategies and future outlook. In the second quarter of this year, ASUS brand revenue reached TWD 241.1 billion, which is a year-over-year increase of 39%, which is once again setting a historical record. This marks the first time our single-quarter brand revenue has surpassed the TWD 200 billion threshold, which is a stellar achievement driven primarily by growth in server and PC businesses.

Nick Wu: That concludes the financial report. I will now hand it over to our two Co-CEOs, Sy and Samson, to share the operational highlights and strategies. Thank you.

Speaker #1: Thank you.

Speaker #2: Thank you. And good afternoon, everyone. Investors and members of the press. I would like to welcome everyone to the ASUS 2026 Q2 investor conference.

S.Y. Hsu: Thank you. Good afternoon, everyone, investors and members of the press. I would like to welcome everyone to the ASUS 2026 Q2 Investor Conference. I am Co-CEO S.Y. Hsu, and I will now provide a detailed instruction to our strategies and future outlook. In the second quarter of this year, ASUS brand revenue reached TWD 241.1 billion, which is a year-over-year increase of 39%, which is once again setting a historical record. This marks the first time our single-quarter brand revenue has surpassed the TWD 200 billion threshold, which is a stellar achievement driven primarily by growth in server and PC businesses.

Speaker #2: I am co-CEO Esra Shih, and I will now provide a detailed introduction to our strategies and future outlook. In the second quarter of this year, ASUS's brand revenue reached $241.1 billion, which is a worldwide increase of 39%, which is once again settling a historical record.

Speaker #2: And this marks the first time our single quarter brand revenue has surpassed the $200 billion threshold, which is a stellar achievement driven primarily by growth in server and PC businesses.

Speaker #2: And with the accelerated explosion in global AI computing power and the cloud infrastructure demand, ASUS's server business saw revenue double in the second quarter, providing a significant growth momentum for us.

S.Y. Hsu: With the accelerated explosion in global AI computing power and cloud infrastructure demand, ASUS server business saw revenue double in the second quarter, providing a significant growth momentum for us. Given our current order visibility and layout in the AI server field, we expect a prolonged period of growth this year, and we will continue to expand our core customer base by providing comprehensive solutions, consolidating our servers' business pivotal role within the AI super cycle. Another highlight is our PC business. Despite headwinds from rising component prices across the industry, we achieved counter-cyclical growth with a 20% year-over-year increase in the second quarter. To my knowledge, ASUS is the only company among the top five PC brands to maintain positive growth in Q2.

Speaker #2: And given our current order visibility and layout in the AI server field, we expect a prolonged period of growth this year, and we will continue to expand our core customer base by providing comprehensive solutions consolidating our servers business pivotal role within the AI supercycle.

Speaker #2: Another highlight is our PC business. Despite headwinds from rising component prices across the industry, we achieved countercyclical growth with a 20% year-over-year increase in the second quarter.

Speaker #2: And to my knowledge, ASUS is the only company among the top five PC brands to maintain positive growth in Q2. And among Windows PC manufacturers, ASUS continues to use AI innovation as the core driver across our gaming, consumer, and commercial sectors to optimize our product mix, and expand market share.

S.Y. Hsu: Among Windows PC manufacturers, ASUS continues to use AI innovation as the core driver across our gaming, consumer, and commercial sectors to optimize our product mix and expand market share. I think that our Q2 shipments really made us the only growing brand in the Windows camp, and that demonstrates our operational resilience, which is shown to exceed the industry average. I would like to also specially highlight our commercial PC business. While ASUS has historically had larger shipments in consumer PCs, we have worked hard in the commercial markets over the last few years. In Q2, our commercial PC year-over-year growth reached 58%, and more accurately, we have seen year-over-year growth exceeding 50% for six consecutive quarters. I think that proves our strategic transformation into the commercial PC market as having been highly successful.

Speaker #2: And so I think that our second quarter shipments really made us the only growing brand in the Windows camp, and that demonstrates our operational resilience which is shown to exceed the industry average.

Speaker #2: And I think that I would like to also especially highlight our commercial PC business. While ASUS has historically had larger shipments in consumer PCs, we have worked hard in the commercial markets over the last few years.

Speaker #1: 好的，各位投资法人及媒体的朋友大家午安。首先欢迎各位参加华硕2026年第二季度的法说会。我是共同执行长许先岳。接下来我将为各位详细的介绍我们的策略还有对未来的一些展望。那我想今年第二季，华硕的品牌营收达到了新台币2410亿元，那年增率高达39%，营收也再次改写了历史新高。这是我们单季品牌营收首次突破2000亿大关，创造了亮丽的成绩。那主要的来源是来自于伺服器还有PC的business的成长。首先，随着全球AI算力与云端基础设施需求加速爆发，华硕的伺服器业务在第二季度的营收达到了200%的增长，为营运增添了成长的动能。目前手上的订单能见度预期华硕在AI伺服器领域的布局，在今年度将迎来一段较长期的成长。我们将持续透过提供完整的解决方案，拓展核心客户，巩固伺服器事业，在AI的超级循环当中建立的关键核心地位。另一个营收的亮点是来自于我们PC的business，在产业面对零组件涨价的不利情况之下，逆势中成长。第二季度迎来了20%的年增长，也相当的亮眼。其实这20%的增长，我想是前五大PC品牌里面唯一一个能够在Q2持续保持正增长的公司，在Windows的PC这里。厂商里面，那我想华硕也持续在电竞消费还有商用的三大领域，以AI创新为核心的驱动力，优化产品组合并扩大市场份额。那第二季的出货量成为Windows阵营当中唯一成长的品牌，展现了华硕优于产业平均的运营的韧性。那我想在这边也另外再特别提一下我们商用PC的业务，我想华硕过去出货量比较大的是消费型的PC，那这几年我们也持续在商用PC的市场不断努力。那我想我们在Q2其实整个商用PC的YoY是达到了58%。那其实更精确的来说，其实我们是过去有连续六个季度，我们在商用PC这边的增长率的YoY其实都超过50%。那其实这也证明了我们在商用PC的这个转型的策略其实是相当成功的。好，下一页。那如同前面所提到的，华硕的营收动能成长非常非常的强劲，主要是来自于AI的前瞻布局。那华硕以Ubiquitous AI Incredible Possibility作为策略的核心，在云端边缘运算还有实体AI打造一个完整的AI生态系。那在这边也跟大家介绍一下我们目前四大BG在整个AI相关的产业跟产品的一些布局。我想首先是ISBG，我们的伺服器布局云端基础设施还有边缘运算的完整解决方案。不同领域的需求都能够提供一站式的客制化解决方案，以大幅度的降低客户导入新技术的门槛与升级的成本。那Open Platform持续深耕Edge AI在工作站等等领域，目前也看到不错的成长的趋势，像去年第四季我们推出了精巧型的AI超级电脑Acent GX10。在第二季的出货已经达到了第一季的三倍，强劲的动能代表了Edge AI在工作站的应用上面会有逐渐兴起的趋势。另外，在新的这个RTX Spark的产品，我们准备推出桌机式的产品Model Number是GR1X，也会在今年的第四季度来推出，一个带动另外一波以Windows为Base的AI开发的需求。那在CIS S BG这边是在AI PC钢盟牙的阶段，率先在市场上推出相关的产品。RTX Spark的产品即将于第四季加入战场，华硕作为率先推出RTX Spark系统的厂商之一，目前我们的Pro R Notebook P16、P14的预购市场反应相当的激烈。目前已经完全部销售一空，华硕也将导入AI Agent ASUS的Zenith ith Cloud在全系列的产品上面来使用，为使用者提供更全方位的AI自动化的处理，提升使用者的使用体验，工作效率还有相关的生产力，来加速AI PC的成长动能。那另外在AI进入实体AI的阶段，华硕也是最早布局机器人的公司。我想华硕在2016年就推出了Zenbo，那我们从Zenbo的时代就累积了非常深厚的基础，还有技术及人才。那其实为了对应这个Physical AI的这个大趋势，其实华硕在2025年的下半年，我们在公司内部就已经设立了这个Autonomous Platform的BU。那其实目前他们正在努力的开发产品，我想最快可能是在今年底或是明年初就会有相关的产品推出来。那假如说各位对这个Physical AI的产品有兴趣的话，请持续的关注我们后面会在跟大家更新相关的资讯。另外在AIoT BG，我们也将AI落实于现实的世界。那在智慧工厂还有智慧医疗，涵盖了穿戴装置、手持超音波、医疗萤幕还有AI软体等等不同的解决方案，来加速健康应用的数位化。那我们相信在整个AI的布局，让华硕可以在这个这波AI的超级浪潮当中成为产业当中最重要的Solution Provider，创造营收的动能，也成为我们无可取代的竞争力。下一页。那接下来为各位介绍我们非常最近成长非常快的这个ISBC的策略。那这里面分三个部分，第一个DCS的部分是著重在这个AI Server还有这个General Server的开发，客制化的服务团队，无论是Next Web的CSP或者是企业IT机房还有企业相关的客户的应用，都能够来弹性的因应。那第二个部分Edge Computing，我们是聚焦在工业还有垂直整合的边缘运算，实现AI应用在多元终端场域的在地化部署。那Solution BU提供了Storage Solution还有Infrastructure Solution，结合软硬体的开发，系统整合与产业专用的架构，提供客户客制化的方案，加速客户在最短的时间内从AI机房规划到Token的产生，大幅度的来降低客户导入新技术的门槛，还有时间的成本。那这三大事业单位紧密协同，让我们ISBG满足多元市场需求的完整战力，来持续的驱动公司营运的成长。下一页。那接下来聚焦在我们的Consumer PC，在今年的Computex，我们发表了下半年两个重点的消费型的笔电产品，市场反应非常的热络。那为下半年的成长奠定了非常好的基础。首先就是刚才讲过的Pro R的P16跟P14，华硕将是NVIDIA RTX Spark平台首批出货的厂商，Pro R P16、P14把工作站等级的AI效能做进12.9mm的轻薄机身里面，瞄准了高单价的创作者与专业的用户市场。对Premium ASP Mix有直接的贡献，Computex期间Pro R是所有RTX Spark装置中媒体声量最高的产品，市场的期待度非常的高，预计在第四季开始开卖，掌握RTX Spark第一波换机的需求。那另外Zenbook 14在定位上，在成长最快的这个Premium Mainstream的轻薄市场，媒体评价它是价格更容易入手的MacBook Neo的强劲对手。华硕独家研发并注册专利的全新材质技术Zera Lumina，今年新增了粉色跟蓝色两个新的色系，价格在美金799开始，规格与价格竞争力兼具，预计在第三季就会开卖，将是下半年消费型笔电出货量成长的最主要的动能。Computex的得奖记录与媒体搜寻声量都验证了Zenbook 14的产品定位，我们对这两个产品线的下半年需求保持非常高度的信心。下一页。那接下来谈一下我们的Commercial PC Expert Book Ultra在轻薄之外，建立起了真正的技术护城河，也是我们商用客户非常需要的，就是强固的设计。那机身是采用奈米陶瓷的镀膜，搭配镁铝合金还有CNC一体成型的工艺，表面的硬度达到了9H，是业界标准的5倍，普通的刮碰几乎不留痕迹，同时具备了抗污与抗指纹的特性，商务场合随手一插就能够恢复原始的质感，结构上则通过10万次的模拟手压测试，即使是不到一公斤的超薄机身，长期使用仍然不会变形，这代表的是更低的维修率，更低的企业总持有成本，展现我们切入高阶商用市场的企图心。那在市场方面，Expert Book Ultra自从6月开始陆续在台湾、日本、新加坡、澳洲以及东南亚等地的市场上市之后，获得了相当正面的市场回响。除了荣获多项国际产品大奖之外，也受到当地媒体还有企业客户的高度关注，尤其是在不到一公斤的极致轻薄的机身，AI商务应用还有旗舰效能方面获得了一致的好评。华硕上市期间同步推出了早鸟的预购方案，日本也搭配大规模品牌推广活动，显示各区域通路与合作伙伴对于Expert Book Ultra都抱持着非常高度的信心，持续的来带动华硕高阶商用品牌的能见度还有整体的市场动能。下一页。那接下来谈一谈最热门这个Agentic AI相关的产品，华硕有自己的Agentic AI，我们叫做ASUS的Zenicloud，这是一款专业的个人AI，它能够理解使用者的思考方式，并且在工作日常生活等等情境当中，主动来执行任务，透过华硕内部的设计思考，让使用者非常的容易上手，同时采用了本地与云端的混合的这种设计的架构，加上内建的安全防护跟资料保护的机制，可以在效能、隐私跟成本之间取得一个非常好的平衡。多元的应用，例如工作上的使用，可整理会议记录、生成简报，在日常生活当中可以提供个人的行程提醒，或者是做旅游的规划，ASUS Zenicloud已经导入了商用跟我们自己的消费型的笔电，相信这个Agentic AI的应用会对使用者带来更高的便利性，带来新一波的AI成长的Momentum。那接下来把时间交给共同执行长Samson。

[Company Representative] (华硕): 各位投资法人及媒体的朋友，大家午安。首先欢迎各位参加华硕2026年第二季度的法说会，我是共同执行长许先越，接下来我将为各位详细地介绍我们的策略，还有对未来的一些展望。我想今年第二季，华硕的品牌营收达到了新台币2,410亿元，年增率高达39%，营收也再次改写了历史新高，这是我们单季品牌营收首次突破2,000亿大关，创造了亮丽的成绩。而主要的源是来自于伺服器，还有PC的business的成长。首先，随着全球AI胜利与云端基础设施需求加速爆发，华硕的伺服器业务在第二季度的营收达到了200%的增长，为营运增添了成长的动能。目前手上的订单能见度，预期华硕在AI伺服器领域的布局，在今年度将迎来一段较长期的成长。我们将持续透过提供完整的解决方案，拓展核心客户，巩固伺服器事业，在AI的超级循环当中建立关键核心地位。另外一个营收的亮点是来自于我们PC的business。在产业面对零组件涨价的不利情况之下，逆势成长，第二季度迎来了20%的年增长，也相当亮眼。其实这20%的增长，我想是前五大PC品牌里面，唯一一个能够在Q2持续保持正增长的公司，在Windows的PC的厂商里面。我想华硕也持续在电竞、消费，还有商用的三大领域，以AI创新为核心的驱动力，优化产品组合，并扩大市场份额。第二季的出货量成为Windows阵营当中唯一成长的品牌，展现了华硕优于产业平均的运营的韧性。我想在这边也另外再特别提一下我们商用PC的业务，我想华硕过去出货量比较大的是消费型的PC。这几年我们也持续在商用PC的市场不断努力。我想我们在Q2，其实整个商用PC的YoY是达到了58%。更精确地来说，其实我们是过去有连续六个季度，我们在商用PC这边的增长率的YoY其实都超过50%。其实这也证明了我们在商用PC的转型策略是相当成功的。下一页。如同前面所提到的，华硕的营收动能成长非常强劲，主要是来自于AI的前瞻布局。华硕以Ubiquitous AI, Incredible Possibility作为策略的核心，在云端、边缘运算，还有实体AI打造一个完整的AI生态系。在这边也跟大家介绍一下我们目前四大BG在整个AI相关的产业跟产品的一些布局。我想首先是ISBG，我们的伺服器布局云端基础设施，还有边缘运算的完整解决方案，不同领域的需求都能够提供一站式的客制化解决方案，以大幅度地降低客户导入新技术的门槛与升级的成本。Open Platform持续深耕Edge AI，在工作站等等领域，目前也看到不错的成长的趋势。像去年第四季，我们推出了精巧型的AI超级电脑ASUS GX10，在第二季的出货已经达到了第一季的三倍。强劲的动能代表了Edge AI在工作站的应用上面会有逐渐兴起的趋势。另外，在新的RTX Spark的产品，我们准备推出桌机式的产品，model number是GR1X，也会在今年的第四季度来推出，这可带动另外一波以Windows为base的AI开发的需求。在CSBG这边，是在AI PC刚萌芽的阶段，率先在市场上推出相关的产品，RTX Spark的产品即将于第四季加入战场。华硕作为率先推出RTX Spark系统的厂商之一，目前我们的ProArt Notebook P16、P14的预购，市场反应相当地激烈，目前已经全部销售一空。华硕也将导入AI agent ASUS的AI Cloud，在全系列的产品上面来使用，为使用者提供更全方位的AI自动化的处理，提升使用者的使用体验、工作效率，还有相关的生产力，来加速AI PC的成长动能。另外在AI进入实体AI的阶段，华硕也是最早布局机器人的公司。华硕在2016年就推出了Zenbo，我们从Zenbo的时代就累积了非常深厚的基础、技术及人才。为了对应这个Physical AI的大趋势，华硕在2025年的下半年，我们在公司内部就已经设立了autonomous platform的BU。目前他们正在努力地开发产品，我想最快可能是在今年底或是明年初就会有相关的产品推出来。假如各位对Physical AI的产品有兴趣的话，请持续地关注，我们后面会再跟大家更新相关的资讯。另外，在AIoT BG，我们将AI落实于现实的世界。在智慧工厂，还有智慧医疗，涵盖了穿戴装置、手持超音波、医疗萤幕，还有AI软体等等不同的解决方案，来加速健康应用的数位化。我们相信在整个AI的布局，让华硕可以在这一波AI的超级浪潮当中，成为产业当中最重要的solution provider，创造营收的动能，也成为我们无可取代的竞争力。下一页。接下来为各位介绍我们最近成长非常快的ISBG的策略。这里面分三个部分，第一个DCS的部分是着重在AI server，还有general server的开发。客制化的服务团队，无论是Nexwave的CSP，或者是企业IT机房，还有企业相关的客户的应用，都能够来弹性地营运。第二个部分，edge computing，我们是聚焦在工业，还有垂直整合的边缘运算，实现AI应用在多元终端场景的在地化部署。Solution BU提供了storage solution，还有Infrastructure Solution，结合软硬体的开发、系统整合与产业专用的架构，提供客户客制化的方案，加速客户在最短的时间内，从AI机房规划到token的产生，大幅度地降低客户导入新技术的门槛，还有时间的成本。这三大事业单位紧密协同，让我们ISBG满足多元市场需求的完整战力，来持续地驱动公司营运的成长。下一页。接下来聚焦在我们的consumer PC。在今年的Computex，我们发表了下半年两个重点的消费型的笔电产品，市场反应非常地热络，为下半年的成长奠定非常好的基础。首先就是刚才讲过的ProArt的P16跟P14。华硕将是NVIDIA RTX Spark平台首批出货的厂商。ProArt P16、P14把工作站等级的AI效能做进12.9 millimeter的轻薄机身里面，瞄准了高单价的创作者与专业的用户市场，对premium ASP mix有直接的贡献。Computex期间，ProArt是所有RTX Spark装置中媒体声量最高的产品，市场的期待度非常地高，预计在第四季开始开卖，掌握RTX Spark第一波换机的需求。另外，Zenbook 14在定位上，在成长最快的premium mainstream的轻薄市场，媒体评价它是价格更容易入手的MacBook Air的强劲对手。华硕独家研发并注册专利的全新材质技术Ceraluminum，今年新增了粉色跟蓝色两个新的色系，价格在USD 799开始，规格与价格竞争力兼具，预计在第三季就会开卖，将是下半年消费型笔电出货量成长的最主要的动能。Computex的得奖记录与媒体搜寻声量都验证了Zenbook 14的产品定位。我们对这两个产品线的下半年需求保持非常高度的信心。下一页。接下来谈一下我们的commercial PC。ExpertBook Ultra在轻薄之外，建立起了真正的技术护城河，也是我们商用客户非常需要的，就是强固的设计。机身是采用纳米陶瓷的镀膜，搭配镁铝合金，还有CNC一体成型的工艺，表面的硬度达到了9H，是业界标准的五倍，普通的刮碰几乎不留痕迹，同时具备了抗污与抗指纹的特性。商务场合随手一擦，就能够恢复原始的质感。结构上则通过10万次的模拟手压测试，即使是不到一公斤的超薄机身，长期使用仍然不会变形，这代表的是更低的维修率，更低的企业总持有成本，展现我们切入高阶商用市场的企图心。在市场方面，ExpertBook Ultra自从六月开始陆续在台湾、日本、新加坡、澳洲以及东南亚等地的市场上市之后，获得了相当正面的市场回响，除了荣获多项国际产品大奖之外，也受到当地媒体还有企业客户的高度关注，尤其是在不到一公斤的极致轻薄的机身、AI商务应用，还有旗舰效能方面获得了一致的好评。华硕上市期间同步推出了早鸟的预购方案，日本也搭配大规模品牌推广活动，显示各区域通路与合作伙伴对于ExpertBook Ultra都抱持着非常高度的信心，持续地来带动华硕高阶商用品牌的能见度，还有整体的市场动能。下一页。接下来谈一谈最热门的agentic AI相关的产品。华硕有自己的agentic AI，我们叫做ASUS Zenni Claw。这是一款专业的个人AI，它能够理解使用者的思考方式，并且在工作、日常生活等等情境当中主动来执行任务。透过华硕内部的设计思考，让使用者非常地容易上手，同时采用了本地与云端的混合设计架构，加上内建的安全防护跟资料保护的机制，可以在效能、隐私跟成本之间取得一个非常好的平衡。多元的应用，例如工作上的使用，可整理会议记录、生成简报，在日常生活当中可以提供个人的行程提醒，或者是做旅游的规划。ASUS Zenni Claw已经导入了商用跟我们自己的消费型的笔电，相信这个agentic AI的应用会对使用者带来更高的便利性，带来新一波的AI成长的momentum。接下来把时间交给共同经营长Samson。

Speaker #2: In Q2, our commercial PC worldwide growth reached 58%. And more accurately, we have seen worldwide growth exceeding 50% for six consecutive quarters. And so I think that proves our strategic transformation into the commercial PC market as having been highly successful.

Speaker #2: And moving on, ASUS's revenue momentum is strong, extremely strong, primarily due to our forward-looking layout in AI. With our motif of ubiquitous AI and incredible possibilities, we are building a complete AI ecosystem across the cloud, edge computing, and physical AI.

S.Y. Hsu: Moving on, ASUS revenue momentum is strong, extremely strong, primarily due to our forward-looking layout in AI. With our motif of ubiquitous AI and incredible possibilities, we are building a complete AI ecosystem across the cloud, edge computing, and physical AI. Now I would like to introduce the layouts of our four core business groups across AI industries and products. First is the ISBG, which provides complete solutions for cloud infrastructure and edge computing. We offer one-stop customized solutions for diverse requirements, significantly lowering the barrier to entry and upgrade costs for consumers and customers adopting new technologies. Next, the Open Platform BG continues to deepen its focus on edge AI in areas such as workstations, where we are seeing a positive growth trend.

Speaker #2: And so now I would like to introduce the layout of our four core business groups across AI industries and products. First is the ISBG, which provides a complete solutions for cloud infrastructure and edge computing.

Speaker #2: We offer a one-stop customized solutions for diverse requirements, significantly lowering the barrier to entry and upgrade cost for consumers and customers adopting new technologies.

Speaker #2: Next, the open platform BG continues to deepen its focus on edge AI in areas such as workstations, where we are seeing a positive growth trend.

Speaker #2: For example, we launched the compact AI supercomputer, the ASUS Ascent GX10, in the fourth quarter of last year, and shipments in the second quarter were three times those of the first, indicating a rising trend in edge AI applications for workstations.

S.Y. Hsu: For example, we launched the compact AI supercomputer, the ASUS Ascent GX10, in Q4 of last year, and shipments in Q2 were 3 times those of Q1, indicating a rising trend in edge AI applications for workstations. Furthermore, we are preparing to launch a desktop product for the new RTX Spark platform, model number GR1X. In Q4 of this year, we expect that this will drive another wave of Windows-based AI development demand. In the System BG portion, we were among the first to market with AI PC products during the nascent stage of the industry. RTX Spark products will enter the fray in Q4 of this year. As one of the first manufacturers to launch RTX Spark-based systems, the market response to pre-orders for our ProArt notebook P16 and P14 has been intense.

Speaker #2: Furthermore, we are preparing to launch a desktop product for the new RTX Spark platform, model number GR1X. And in the fourth quarter of this year, we expect that this will drive another wave of Windows-based AI development demand.

Speaker #2: In the system BG portion, we were among the first to market with AI PC products during the nascent stage of the industry. RTX Spark products will enter the fray in the fourth quarter of this year.

Speaker #2: And as one of the first manufacturers to launch RTX Spark-based systems, the market response to preorders for our Notebook P16 and P14 has been intense.

Speaker #2: They are currently completely sold out. And ASUS will also integrate the AI agent, ASUS Zenith Claw, across our entire product line to provide users with a comprehensive and automated AI assistant that enhances user experience efficiency and productivity.

S.Y. Hsu: They are currently completely sold out. ASUS will also integrate the AI agent, ASUS Sunny Claw, across our entire product line to provide users with a comprehensive and automated AI system that enhances user experience, efficiency, and productivity. As AI enters the physical AI stage, ASUS was also one of the earliest companies to lay the groundwork for robotics. We launched the Zenbo back in 2016, and since then, we have accumulated foundations, technology, and talent to align with that physical AI trend. Moving forward, we established the autonomous platform BU in H2 of 2025, and they are currently developing products which we expect to release as early as the end of this year or early next year. If you are interested in physical AI products, please stay tuned for further updates.

Speaker #2: And as AI enters the physical AI stage, ASUS was also one of the earliest companies to lay the groundwork for robotics. We launched the Zenbo, back in 2016.

Speaker #2: And since then, we have accumulated foundations, technology, and talent to align with that physical AI trend. And moving forward, we established the autonomous platform BU in the second half of 2025.

Speaker #2: And they are currently developing products which we expect to release as early as the end of this year or early next year. And if you are interested in physical AI products, please stay tuned for further updates.

Speaker #2: And finally, in the AIoT BG, we are implementing AI in the real world through smart factories and smart health care. This encompasses wearables, handheld, handheld ultrasound, medical monitors, and AI software solutions to accelerate the digitalization of health applications.

S.Y. Hsu: In the AIoT BG, we are implementing AI in the real world through smart factories and smart healthcare. This encompasses wearables, handheld ultrasound, medical monitors, and AI software solutions to accelerate the digitalization of health applications. We believe our overall AI layout will position ASUS as one of the most important solution providers in this AI superwave, creating revenue momentum and a significant competitive advantage. Next page. Now I will introduce the strategy for the rapidly growing IS BG. This is divided into three parts. First, the DCS unit focuses on the development of AI and general servers. Our customized service teams can flexibly respond to the needs of next-wave CSPs, enterprise IT, and other corporate clients. Second, edge computing. Edge computing focuses on industrial and vertically integrated edge computing scenarios, which helps achieve localized deployment of AI applications across diverse terminal environments.

Speaker #2: And we believe our overall AI layout will position ASUS as one of the most important solution providers in this AI superwave, creating revenue momentum and a significant competitive advantage.

Speaker #2: Next page. And now I will introduce the strategy for the rapidly growing IS BG. This is divided into three parts. First, the DCS unit focuses on the development of AI and general servers.

Speaker #2: Our customized service teams can flexibly respond to the needs of next wave CSPs enterprise IT and other corporate clients. Second, edge computing. Edge computing focuses on industrial and vertically integrated edge computing scenarios which helps achieve localized deployment of AI applications.

Speaker #2: Across diverse terminal environments. For the solution BU, it provides storage and infrastructure solutions by combining hardware and software system integration and industry-specific architectures. We provide customized plans that accelerate the customer's journey from AI data center planning to token generation, drastically reducing the cost of time and the barrier to adopting new technologies.

S.Y. Hsu: For the Solution BU, it provides storage and infrastructure solutions by combining hardware and software system integration and industry-specific architectures. We provide customized plans that accelerate the customer's journey from AI data center planning to token generation, drastically reducing the cost of time and the barrier to adopting new technologies. These three units work in close synergy, giving the IS BG a complete capability to meet diverse market demands and drive company growth. Next page. Focusing on our consumer PCs, at this year's COMPUTEX, we unveiled two key consumer laptops for the H2 of the year. The market response has been very enthusiastic, laying a strong foundation for H2 growth. First, the ProArt P16 and P14. ASUS will be among the first manufacturers to ship the NVIDIA RTX Spark platform.

Speaker #2: These three units work in close synergy, giving the ISBG a complete capability to meet diverse market demands and drive company growth. Next page. Focusing on our consumer PCs, at this year's Computex, we unveiled two key consumer laptops for the second half of the year.

Speaker #2: And the market response has been very enthusiastic. Laying a strong foundation for H2 growth. First, the ProArt P16 and P14. ASUS will be among the first manufacturers to ship the NVIDIA RTX Spark platform.

Speaker #2: The ProArt P16 and P14 integrate workstation-grade AI performance into a slim 12.9 millimeter chassis and targets a high unit price market segment for creators and professional users.

S.Y. Hsu: The ProArt P16 and P14 integrate workstation-grade AI performance into slim 12.9-millimeter chassis and targets a high-unit price market segment for creators and professional users. I think that this contributes directly to the premium ASP mix, because during COMPUTEX, ProArt was the most discussed RTX Spark device in the media. We expect sales to begin the Q4, capturing the first wave of RTX Spark replacement demand. Moving on, the Zenbook 14 is also positioned in the fastest-growing premium engineering and light market. Media reviews describe it as strong and accessible competitor to the MacBook Neo. We've also introduced Zerolumina, a new proprietary material technology with new pink and blue colorways for this year, starting at $799. It combines specifications with price competitiveness.

Speaker #2: And I think that this contributes directly to the premium ASP mix, because during Computex, ProArt was the most discussed RTX Spark device in the media.

Speaker #2: And we expect sales to begin the fourth quarter capturing the first wave of RTX Spark replacement demand. Moving on, the Zenbook 14 is also positioned in the fastest growing premium engine thing in light market.

Speaker #2: Media reviews describe it as strong and accessible competitor to the MacBook Neo. We've also introduced Zero Lumina, a new proprietary material technology. With a new pink and blue colorways for this year, starting at $799 USD.

Speaker #2: And it combines specifications with price competitiveness. It's expected to launch in the third quarter and will be a primary driver of consumer laptop shipment growth for us in the second half of the year.

S.Y. Hsu: It's expected to launch in the Q3 and will be a primary driver of consumer laptop shipment growth for us in the H2 of the year. The awards and media search volume from COMPUTEX, I think, validate the Zenbook 14's positioning, and we remain highly confident in the demand for these two product lines. Moving on to commercial PCs. The ExpertBook Ultra is a genuine technical moat beyond just being a thin and light laptop. It features the robust design our clients demand, utilizing a nano-ceramic coating paired with magnesium aluminum alloy and a CNC-finished unibody process. The surface hardness reaches 9H, which is five times the industry standard, meaning ordinary scratches leaves almost no mark. It's also stain and fingerprint-resistant, allowing it to be wiped clean in business settings. Structurally, it passed 100,000 simulated pressure tests despite weighing less than 1 kilogram.

Speaker #2: And so the awards and media search volume from Computex I think validate the Zenbook 14's positioning and we remain highly confident in the demand for these two product lines.

Speaker #2: Moving on to commercial PCs. The ExpertBook Ultra is a genuine technical moat beyond just being a thing and light laptop. It features the robust design our clients demand.

Speaker #2: Utilizing a nano-ceramic coating paired with magnesium aluminum alloyed and a CNC-finished unibody process. And the surface hardness reaches 9H, which is five times the industry standard.

Speaker #2: Meaning ordinary scratches leave almost no mark. It's also stain and fingerprint resistant, allowing it to be wiped clean in business settings. And structurally, it passed 100,000 simulated pressure tests despite weighing less than one kilogram.

Speaker #2: The ultra-thin chassis will not deform over extended use. And we believe that this results in lower repair rates and lower total cost of ownership for enterprises.

S.Y. Hsu: The ultra-thin chassis will not deform over extended use, and we believe that this results in lower repair rates and lower total cost of ownership for enterprises, demonstrating our ambition to penetrate into the high-end commercial market. In terms of market performance, since the ExpertBook Ultra began rolling out in June across Taiwan, Japan, Singapore, Australia, and Southeast Asia, it has received very positive feedback. In addition to winning multiple international product awards, it has garnered a lot of attention from local media and corporate clients, particularly for its extreme lightness, AI business applications, and flagship performance. At the same time, we launched pre-order programs in Taiwan and large-scale brand promotions in Japan, reflecting our confidence in regional channels and partners. This continues to drive the visibility of ASUS in the high-end commercial brand and overall market momentum.

Speaker #2: Demonstrating our ambition to penetrate into the high-end commercial market. And in terms of market performance, since the ExpertBook Ultra began rolling out in June across Taiwan, Japan, Singapore, Australia, and Southeast Asia, it's received very positive feedback.

Speaker #2: And in addition to winning multiple international product awards, it has garnered a lot of attention from local media and corporate clients. Particularly for its extreme lightness, AI business applications, and flagship performance.

Speaker #2: So at the same time, we launched pre-order programs in Taiwan and large-scale brand promotions in Japan, reflecting our confidence in regional channels and partners.

Speaker #2: And so that continues to drive the visibility of ASUS in the high-end commercial brand and overall market momentum. And moving on, let's discuss the highly anticipated Agentic AI product.

S.Y. Hsu: Moving on, let us discuss the highly anticipated agentic AI product. ASUS has its own agentic AI called ASUS ZenClaw. This is a professional personal AI capable of understanding the user's way of thinking and proactively executing tasks in work, daily life, and other scenarios. Through ASUS internal design thinking, we believe that we have made it intuitive for users, and it employs a hybrid local and cloud infrastructure, combined with built-in security and data protection mechanisms to achieve an excellent balance between performance, privacy, and cost. I think diverse applications that it can handle include things like meeting note summaries, generating presentations, providing personal schedule reminders, and travel planning for daily life.

Speaker #2: So ASUS has its own Agentic AI called ASUS Zeniclo. This is a professional personal AI capable of understanding the user's way of thinking and proactively executing tasks in work, daily life, and other scenarios.

Speaker #2: Through ASUS internal design thinking, we believe that we've made it intuitive for users and it employs a hybrid local and cloud infrastructure and combined with built-in security and data protection mechanisms to achieve an excellent balance between performance, privacy, and cost.

Speaker #2: I think diverse applications that it can handle include things like meeting summaries, generating presentations, providing personal schedule reminders, and travel planning for daily life.

Speaker #2: And so ASUS Zeniclo has already been integrated into our commercial and consumer laptops. And we believe that the application of Agentic AI will bring greater convenience to users and create new wave of AI growth momentum.

Samson Hu: ASUS ZenClaw has already been integrated into our commercial and consumer laptops, and we believe that the application of agentic AI will bring greater convenience to users and create a new wave of AI growth momentum. I will now move the mic to my fellow Co-CEO. Thank you, S.Y. Before I further share the operational performance and strategic priorities of each business group, I would like to spend 2 pages sharing some important milestones and highlights of the ROG brand. This year marks the 20th anniversary of the ROG brand. As one of the earliest brands to cultivate the gaming industry, ROG has evolved over the past 20 years, leveraging its deep technical heritage from a leader in gaming PCs, motherboards, and displays into a comprehensive gaming lifestyle brand that includes accessories and handhelds.

S.Y. Hsu: ASUS ZenClaw has already been integrated into our commercial and consumer laptops, and we believe that the application of agentic AI will bring greater convenience to users and create a new wave of AI growth momentum. I will now move the mic to my fellow Co-CEO.

Speaker #2: I'll move the mic to my fellow co-CEO. Thank you, SY. Before I further share the operational performance and strategic priorities of each business group, I would like to spend two pages sharing some important milestones and highlights of the ROG brand.

Samson Hu: Thank you, S.Y. Before I further share the operational performance and strategic priorities of each business group, I would like to spend 2 pages sharing some important milestones and highlights of the ROG brand. This year marks the 20th anniversary of the ROG brand. As one of the earliest brands to cultivate the gaming industry, ROG has evolved over the past 20 years, leveraging its deep technical heritage from a leader in gaming PCs, motherboards, and displays into a comprehensive gaming lifestyle brand that includes accessories and handhelds.

Speaker #2: This year, marks the 20th anniversary of the ROG brand. As one of the earliest brands to cultivate the gaming industry, ROG has evolved over the past 20 years.

Speaker #2: Leveraging its deep technical heritage from a leader in gaming PCs, motherboards, and displays, into a comprehensive gaming lifestyle brand that includes accessories and handhelds.

Speaker #2: To share some figures, for the past 20 years, we have reached a total cumulative shipment volume of over 35 million units. And a cumulative sales of graphics cards exceeding 130 million units.

Samson Hu: To share some figures, for the past 20 years, we have reached a total cumulative shipment volume of over 35 million units and a cumulative sales of graphics cards exceeding 130 million units. If you lined up these cards and laptops, they will wrap around the Earth more than once. This is not just a technical achievement, and it symbolizes the innovation and trust ROG holds in the hearts of gamers worldwide. Next page. Beyond sales milestones, our ROG 20th anniversary activities centers on community and innovation. At COMPUTEX, we launched a series of products and events. During this event, we also released the ROG Edition 20 series, and it spans motherboards, graphics cards, and peripherals, contributing to the brand's aesthetic design while paying tribute to the past and of course, also exploring what the future holds.

Speaker #2: And if you lined up these cards and laptops, they will wrap around the Earth more than once. So this is not just a technical achievement.

Speaker #2: And it symbolizes the innovation and trust ROG holds in the hearts of gamers worldwide. And next page. But beyond sales, milestones, our ROG 20th anniversary activities centers on community and innovation.

Speaker #2: At Computex, we launched a series of products and events. During this event, we also released the ROG edition 20 series. And it spans motherboards, graphics cards, and peripherals, contributing to the brand's aesthetic design while paying tribute to the past and, of course, also exploring what the future holds.

Speaker #2: And among these, the market highly anticipates the ROG Xbox Ally X20 bundle, made its debut. It has been upgraded to feature a 7.4-inch OLED screen with a new joystick design.

Samson Hu: Among these, the market highly anticipates the ROG Xbox Ally X20 bundle made its debut. It has been upgraded to feature a 7.4-inch OLED screen with a new joystick design. Paired with the ROG R1 Edition 20 gaming AR glasses, the gaming experience itself is also extended to a 171-inch AR large screen. This product has been a major win in international media, indicating that our specifications and experience lead the industry. Our share of voice in the market is currently number one, which I believe will drive significant sales. Furthermore, millions of ROG fans gathered in Taipei through our homecoming event, which was held at the COMPUTEX venue and our headquarters.

Speaker #2: Paired with the ROG R1 edition 20 gaming AR glasses, the gaming experience itself is also extended to a 171-inch AR large screen. This product has been a major win in international media indicating that our specifications and experience lead the industry.

[Company Representative] (华硕): 谢谢先越。接下来，在跟各位进一步分享各事业群的营运表现跟策略重点之前，我这边先花两个page，跟各位分享一下ROG品牌的重要里程碑跟一些重要的亮点。今年是ROG品牌成立20周年，华硕作为最早深耕电竞产业的品牌，这20年来，ROG凭借着深厚的技术底蕴，从电竞PC板卡显示器的领导者，一路演进为包括配件以及掌机的全方位的一个电竞生活品牌。跟各位稍微分享一下，ROG电竞笔电20年来总累计的出货量是达到3,500万台。显示卡20年来累计的销售量也超过了1.3亿张。这些显卡跟笔电相连起来，大概可以绕超过地球一周。这不仅仅是技术进展的成就，这更象征华硕在全球玩家心中的一个创新跟信任。看到下一页。除了销量的缔造新里程碑，我们在今年的ROG 20周年活动，也以community and innovation为主轴，在Computex推出一系列的产品跟活动。在这个press event上，我们也发布了非常多的ROG Edition 20周年的系列，横跨主机板、显卡以及周边等多项品类，延续品牌的美学设计，展现对过去的致敬，以及对未来的探索。其中，市场高度期待的ROG Xbox Ally X20 Bundle正式亮相，同时它也升级成7.4寸的OLED荧幕跟新一代的摇杆的设计。搭配ROG XREAL R1 Edition 20 Gaming AR眼镜，将游戏画面延伸到171寸的AR大荧幕。这个获得国际媒体的盛赞，也表示规格跟体验是全面领先同业，整个市占声量也位居第一。我想这个对于后面的销量也会带来非常大的助益。此外，ROG上百万的粉丝透过Homecoming的粉丝活动，将全球玩家齐聚在台北，包含Computex会场以及我们的headquarter，体验了ROG相关的活动跟设计的展演，借此深化品牌跟社群的情感连结。我想这一部分都为我们下半年以及未来几年的营运动能奠定非常良好的基础。请各位看到下一页。接下来我就跟各位介绍各个事业群的营运表现跟策略重点。首先在系统事业单位，虽然在DRAM零组件成本上涨的压力之下，PC营收如同刚前面先越提到的，我们仍然实现了20%的年增长。这个充分显示华硕的成长动能跟品牌的价值。特别是华硕的产品组合，在高价值产品的占比是高达65%，这里面有包含gaming、包含高阶机种Copilot+，以及不含Chromebook的conversion相关的PC。高价值的产品组合为我们提供营运的韧性，而AI PC的营收在消费型笔电当中的占比也迅速地提升，第二季是提升到三成，这也代表AI PC在市场的需求动能持续强劲。另外，在商用PC的出货量方面，刚先越也跟各位分享了，经过我们这几年的布局，从去年开始展现非常显著的成——

Speaker #2: And so I'll share a voice in the market is currently number one, which I believe will drive significant sales. Furthermore, millions of ROG fans gathered in Taipei through our home coming event.

Speaker #2: Which was held at the Computex venue and our headquarters. And it featured a series of ROG-related activities and design showcases. And it has deepened the emotional connection between the brand and the community.

Samson Hu: It featured a series of ROG-related activities and design showcases, and it has deepened the emotional connection between the brand and the community, providing a very strong foundation for our operational momentum in the H2 of the year and the coming years. Turning to the next page, I will now introduce the operational performance and strategic priorities of each business group. First, in the System Business Group, despite the pressure of rising RAM component costs, PC revenue still achieved a 20% year-over-year growth. This fully demonstrates ASUS' growth momentum and brand value. Notably, high-value products account for 65% of our product mix, including gaming, high-end Copilot+ PCs, and non-Chromebook convertibles. This high-value mix provides us with operational resilience.

Speaker #2: Providing a very strong foundation for our operational momentum in the second half of the year and the coming years. Turning to the next page.

Speaker #2: I will now introduce the operational performance and strategic priorities of each business group. First, in the system business group, despite the pressure of rising RAM component costs, PC revenue still achieved a 20% year-over-year growth.

Speaker #2: This fully demonstrates ASUS growth momentum and brand value. Notably, high-value products account for 65% of our product mix. Including gaming, high-end copilot plus PCs, and non-Chromebook convertibles.

Speaker #2: And so this high-value mix provides us with operational resilience. And the revenue share of AI PCs within consumer laptops has also risen rapidly. Reaching 30% in the second quarter.

Samson Hu: The revenue share of AI PCs within consumer laptops has also risen rapidly, reaching 30% in the Q2, indicating that market demand for AI PCs remain strong. Regarding commercial PC shipments, as S.Y. shared, our layout over the last few years has yielded significant results since last year. In the Q2 of this year, we saw a year-over-year growth of over 50%, marking the sixth consecutive quarter of growth exceeding 50%. This clearly shows the continuous expansion of our commercial market share, driven by brand power, product strength, and supply chain resilience. Our PC shipments maintains a positive growth in Q2, again, as Hsu noted. Right now, we are the only brand in the Windows PC camp to achieve positive growth. Next page. Now regarding the operational performance of the Open Platform Business Group.

Speaker #2: Indicating that market demand for AI PCs remains strong. And regarding commercial PC shipments, as SY shared, our layout over the last few years has yielded significant results since last year.

Speaker #2: In the second quarter of this year, we saw a year-over-year growth of over 50%, marking the sixth consecutive quarter of growth exceeding 50%. And so this clearly shows the continuous expansion of our commercial market share.

Speaker #2: Driven by a brand power, product strength, and supply chain resilience. Our PC shipments maintain a positive growth in quarter two, again as SY noted.

Speaker #2: Right now, we are the only brand in the Windows PC camp to achieve positive growth. Next page. And now regarding the operational performance of the open platform business group, facing industry headwinds from key component costs, our second quarter revenue declined approximately 10% to 15% year-over-year.

Samson Hu: Facing industry headwinds from key component costs, our Q2 revenue declined approximately 10% to 15% year over year. However, key products within the ROG gaming ecosystem, including monitors and accessories, saw year-over-year revenue growth of 20% and over 50%, respectively. This highlights the strong momentum of the ASUS gaming brand ecosystem, driving upgrades in the gaming market and consolidating our leadership position with ROG as a brand. Additionally, our NUC business has performed exceptionally well, driven by the growth of the NVIDIA-branded Ascent GX10. We saw revenue increase by 30%. This strong momentum shows us a rising trend in edge AI applications for workstations. As for our industry-leading motherboards and graphics cards, we are now facing significant price hikes in memory, which has impacted end-user demand.

Speaker #2: However, key products within the ROG gaming ecosystem including monitors, and accessories, saw year-over-year revenue growth of 20% and over 50%, respectively. And this highlights the strong momentum of the ASUS gaming brand ecosystem.

Speaker #2: Driving upgrades in the gaming market and consolidating our leadership position with ROG as a brand. Additionally, our NUC business has performed exceptionally well. Driven by the growth of the NVIDIA-branded Ascent GX10, we saw revenue increase by 30%.

Speaker #2: And this strong momentum shows us rising trend in edge AI applications for workstations. As for our industry-leading motherboards and graphics cards, we're now facing significant price hikes in memory, which has impacted end-user demand.

Speaker #2: However, we still saw growth in the high-end segments, such as the workstation series for motherboards, and an increased proportion of high-end graphics cards. Growth in these high-end areas translates to improved profitability and underscores ASUS's position as the industry leader in boards and cards.

Samson Hu: However, we still saw growth in the high-end segments, such as the workstation series for motherboards and an increased proportion of high-end graphics cards. Growth in these high-end areas translates to improved profitability and underscores ASUS' position as the industry leader in boards and cards. Looking ahead to the H2 of the year, current market observations suggest that short-term headwinds cause a deferment of demand rather than a complete disappearance of demand. As we see the pace of memory price increases gradually slowing in that H2, though they are still trending upwards, the search is visibly less steep than in the H1. We believe the boards and cards business can gradually climb out of the trough and return to a growth trajectory. That was for the Open Platform Business Group. Next page. Moving on to ISBG, the Infrastructure Solutions Business Group.

Speaker #2: Looking ahead to the second half of the year, current market observations suggest that short-term headwinds caused a deferment of demand rather than a complete disappearance of demand.

Speaker #2: And so as we see the pace of memory price increases gradually slowing in that second half, though there are still trending upwards, the surge is visibly less deep than in the first half.

Speaker #2: We believe the boards and cards business can gradually climb out of the trough and return to a growth trajectory. And so that was for the open platform business group.

Speaker #2: Next page. Moving on to ISBG, the Infrastructure Solutions business group. As previously mentioned, we saw an explosive doubling of revenue growth in the second quarter.

Samson Hu: As previously mentioned, we saw an explosive doubling of revenue growth in Q2. Based on current visibility, we are very confident that this growth momentum will continue through the H2 of the year. With the launch of new platforms and the steady expansion of core customers, we are confidently revising our four-year server growth target from the 100% we reported in the last quarterly conference to at least 150% year over year. I believe that this will be a powerful growth engine for the company. I would also like to share a few major highlights. At COMPUTEX 2026, together with our partner, NVIDIA, we demonstrated a complete end-to-end AI factory solution covering design, deployment, and actual operation.

Speaker #2: Based on current visibility, we are very confident that this growth momentum will continue through the second half of the year. With the launch of new platforms and the steady expansion of core customers, we are confidently revising our four-year server growth target from the 100% we reported in the last quarterly conference to at least 150% year-over-year.

Speaker #2: And I believe that this will be a powerful growth engine for the company. I will also like to share a few major highlights. At Computex 2026, together with our partner NVIDIA, we demonstrated a complete end-to-end AI factory solution covering design, deployment, and actual operation.

Speaker #2: And by using NVIDIA's DSX, we help customers use digital twin technology to simulate and evaluate power, cooling, networking, and storage assets before actual construction.

Samson Hu: By using NVIDIA's DGX, we help customers use digital twin technology to simulate and evaluate power, cooling, networking, and storage assets before actual construction, thereby significantly reducing the risk of deployment. Furthermore, to support the next generation of trillion-parameter models, we also launched the NVIDIA Vera Rubin NVL72 with 100% liquid cooling design. We call it the ASUS AI POD, which is a rack-level platform. From data to tokens, ASUS is not only optimizing token generation efficiency, but also leading factories toward large-scale intelligence to accelerate corporate profitability. At the same time, to ensure high-quality servers and accelerate the development and mass production validation of our products, we established the ASUS AI Lab. Through rigorous practical testing, we validate AI infrastructure and optimize thermal performance, power systems, and liquid cooling technology to ensure enterprise-grade reliability and brand trust. Moving on.

Speaker #2: Thereby significantly reducing the risk of deployment. Furthermore, to support the next generation of trillion param models, we also launched the NVIDIA Vera Rubin NVL72 with a 100% liquid cooling design.

Speaker #2: We call it the ASUS AI part, which is a rack-level platform. And so from data to tokens, ASUS is not only optimizing token generation efficiency, but also leading factories toward large-scale intelligence-to-accelerate corporate profitability.

Speaker #2: At the same time, to ensure high-quality servers and accelerate the development and mass production validation of our products, we established the ASUS AI lab.

Speaker #2: And through regular practical testing, we validate AI infrastructure and optimize thermal performance. Power systems and liquid cooling technology to ensure enterprise-grade reliability and brand trust.

Speaker #2: Moving on. Regarding the AIoT business group, for this one, I have two highlights. First, we have made a breakthrough in the healthcare industry. In January, 2026, ASUS blade AI blood smear analysis software received Singaporean Health Sciences Authority certification.

Samson Hu: Regarding the AIoT Business Group, for this one, I have two highlights. First, we have made a breakthrough in the healthcare industry. In January 2026, ASUS' Blade AI blood smear analysis software received Singaporean Health Sciences Authority certification. We received Class 2 in vitro diagnostic medical device certification. This is ASUS' first certified in vitro diagnostic product, and the software was co-developed with the National Cheng Kung University Hospital and Kaohsiung Medical University Chung-Ho Memorial Hospital. Following clinical evaluations across five medical institutions in Singapore, it achieved nearly 100% accuracy. It supports white blood cell classification, red blood cell morphology interpretation, and remote hematological pathology reviews. Additionally, ASUS showcased smart healthcare solutions at Smart Health Asia 2026, which includes wearables, handheld ultrasound, medical monitors, and AI software.

Speaker #2: We received Class 2 in-vitro diagnostic medical device certification. This is ASUS's first certified in-vitro device in-vitro diagnostic product. And the software was co-developed with the National Quinn University Hospital and QuTech Plot Hospital.

Speaker #2: And following clinical evaluations across five medical institutions in Singapore, it achieved nearly 100% accuracy its supports white blood cell classification, red blood cell morphology interpretation, and remote hematological pathology reviews.

Speaker #2: Additionally, ASUS showcased smart healthcare solutions at Smart Health Asia 2026, which includes wearables, handheld ultrasound, medical monitors, and AI software. We are also deepening our strategic cooperation with the National Health Research Institute.

Samson Hu: We are also deepening our strategic cooperation with the National Health Research Institutes by combining the ASUS VivoWatch and handheld wireless ultrasound, HealthHub health stations, endoscopic AI solutions, the xHIS medical information system, medical displays, and smart robots. We are using these lineups to provide a comprehensive smart healthcare solution. We are integrating with NHRI's forward-looking research cohorts and national-level data integration capabilities to accelerate the transition of digital health applications from concept validation to commercialization. Next page. Finally, we received a number of awards this quarter that I would like to share. In terms of corporate governance, ASUS was ranked in the top 5% of the optimal category for listed companies in Taiwan's 12th Corporate Governance Evaluation, reflecting our commitment to strengthening governance and responsibility management.

Speaker #2: By combining the ASUS Vivo Watch head, which is a handheld, rather, and handheld wireless ultrasound, and Health Hub health stations, and the AAM endoscopic AI solutions, the HIS HEES medical information system medical displays and smart robots we are using these lineups to provide a comprehensive smart healthcare solution.

Speaker #2: And we are integrating with NHRI's forward-looking research cohorts and national-level data integration capabilities to accelerate the transition of digital health applications from concept validation to commercialization.

Speaker #2: Next page. Finally, we received a number of awards this quarter that I would like to share in terms of corporate governance. ASUS was ranked in the top 5% of the optimal category for listed companies in Taiwan's 12th corporate governance evaluation.

Speaker #2: Reflecting our commitment to strengthening governance and responsibility management. Regarding products, we want 10 best choice awards at this year's Computex, with the ROG G1000 edition 20 gaming desktop winning the Gold Award and the ASUS Expert Book Ultra business laptop receiving the Sustainable Technology Special Award.

Samson Hu: Regarding products, we won 10 Best Choice Awards at this year's COMPUTEX, with the ROG G1000 Edition 20 gaming desktop winning the Gold Award, and the ASUS ExpertBook Ultra business laptop receiving the Sustainable Technology Special Award. Finally, we also won 43 awards in the Red Dot Product Design Awards. In particular, the ROG Falchion HFX magnetic Axon keyboard and the ROG Zephyrus Duo both received the highest honor of Red Dot Best of the Best. This fully demonstrates ASUS excellence in design and innovation. That concludes my presentation. Thank you. Thank you to the Co-CEOs and the CFO. We will now begin the Q&A session. If you have any questions, please submit them via the question mark icon on the left side of the webpage. We will consolidate all questions and answer them shortly. Thank you. Our first question comes from KGI Securities.

Speaker #2: And finally, we also won 43 awards in the Red Dot Production Design Award. In particular, the ROG Falcon Ace HFX Magnetic Axial Keyboard and the ROG Zyphus Dual both received the highest honor of Red Dot Best of the Best.

Speaker #2: And so this fully demonstrates ASUS's excellence in design and innovation. And that concludes my presentation. Thank you. Thank you to the CEOs and the CFO.

Operator: Thank you to the Co-CEOs and the CFO. We will now begin the Q&A session. If you have any questions, please submit them via the question mark icon on the left side of the webpage. We will consolidate all questions and answer them shortly. Thank you. Our first question comes from KGI Securities.

Speaker #2: We will now begin the Q&A session. If you have any questions, please submit them via the question mark icon on the left side of the web page.

Speaker #2: We will consolidate all questions and answer them shortly. Thank you. Our first question comes from KGI Securities. First, congratulations to the company on the exceptional operational growth.

[Analyst] (KGI Securities): First, congratulations to the company on the exceptional operational growth. Regarding Q3 guidance, you mentioned that PC revenue is expected to grow 15% to 20% quarter-over-quarter. Could you break down this growth from the perspective of both ASP and shipping volume? Furthermore, could the company share its views on global PC shipments for 2026, as well as ASUS' own shipment target? Thank you. Regarding the projected 15% to 20% quarter-over-quarter growth for the third quarter, if we break it down by ASP and volume, it's essentially a 50/50 split. Both components are seeing positive growth, with each ranging between 5% and 10%, which combines for the total of 15% to 20% quarterly increase. As for which types of PCs will perform most strongly in the third quarter, I think it's well known that memory prices are currently the most significant impacter on the PC market.

Speaker #2: Regarding Q3 guidance, you mentioned that PC revenue is expected to grow 15% to 20% quarter over quarter. Could you break down this growth from the perspective of both ASP and shipment volume?

Speaker #2: Furthermore, could the company share its views on global PC shipments for 2026, as well as ASUS's own shipment targets? Thank you. Thank you. Regarding the projected 15 to 20% quarter over quarter growth for the third quarter, if we break it down by ASP and volume, it's essentially a 50/50 split.

S.Y. Hsu: Regarding the projected 15% to 20% quarter-over-quarter growth for the third quarter, if we break it down by ASP and volume, it's essentially a 50/50 split. Both components are seeing positive growth, with each ranging between 5% and 10%, which combines for the total of 15% to 20% quarterly increase. As for which types of PCs will perform most strongly in the third quarter, I think it's well known that memory prices are currently the most significant impacter on the PC market.

Speaker #2: Both components are seeing positive growth, with each ranging between 5% and 10%. Which combines for the total of 15 to 20% quarterly increase. As for which types of PCs will perform most strongly in the third quarter, I think it's well known that memory prices are currently the most significant impactor on the PC market.

Speaker #2: We have observed that high-end products are relatively less affected. And the reasoning is slightly simple as well. Because for high-end products, the increase in memory costs represents a smaller proportion of the total costs, which minimizes the impact on the final selling price.

S.Y. Hsu: We have observed that high-end products are relatively less affected, and the reasoning is slightly simple as well, because for high-end products, the increase in memory cost represents a smaller proportion of the total cost, which minimizes the impact on the final selling price. As an aside, customers capable of purchasing high-end products tend to be less price sensitive. Consequently, high-end models have remained relatively resilient. Regarding our outlook for global PC shipments 2026, I think the most mainstream forecast will project a year-over-year decline of approximately 4%. If we split this into the H1 and H2 of the year, in the H1, there is typically an advanced stocking effect. Meaning that shipper volumes in H1 were not significantly different from the last year. This shifts the traditional seasonal weight, where usually the H2 of the year carries a higher proportion of shipments.

Speaker #2: And as an aside, customers capable of purchasing high-end products tend to be less price sensitive. Consequently, high-end models have remained relatively resilient. Regarding our outlook for global PC shipments 2026, I think the most mainstream forecast will project a year-over-year decline of approximately 4%.

Speaker #2: And if we split this into the first and second halves of the year, in the first half, there is typically a advanced stocking effect, meaning that shipment volumes in H1 will not significantly differ from the last year.

Speaker #2: And this shifts the traditional seasonal weight, wherein usually the second half of the year carries a higher proportion of shipments. However, due to that early stocking that happened this year, the split between H1 and H2 will likely be closer to 50/50.

S.Y. Hsu: However, due to that early stocking that happened this year, the split between H1 and H2 will likely be closer to 50/50. Since volumes did not drop in the first half, the entirety of the projected decline will fall on the second half. Therefore, the decline in volume for Q3 and Q4 will be more pronounced. While the full-year drop may be around 4%, the decline for the second half of the year will likely exceed 10%. That is our prediction. Thank you. The next question is from Morgan Stanley and several other institutional investors. They would like the company to explain the sources of the margin improvement in the second quarter, and whether there are any plans to revise or increase future profitability targets. I am CFO Nick Wu, I will take this question.

Speaker #2: But since volumes did not drop in the first half, the entirety of the projected decline will fall on the second half. Therefore, the decline in volume for Q3 and Q4 will be more pronounced.

Speaker #2: While the four-year drop may be around 4%, but the decline for the second half of the year will likely exceed 10%. And that's our prediction.

Speaker #2: Thank you. The next question is from Morgan Stanley and several other institutional investors. They would like the company to explain the sources of the margin improvement in the second quarter and whether there are any plans to revise or increase future profitability targets.

Operator: The next question is from Morgan Stanley and several other institutional investors. They would like the company to explain the sources of the margin improvement in the second quarter, and whether there are any plans to revise or increase future profitability targets.

Speaker #2: Okay. I am CFO Nick Wu. I'll take this question. In the second quarter, both our gross margin and operating margin reached historical highs. And this primarily reflects ASUS's established brand position.

Nick Wu: I am CFO Nick Wu, I will take this question.

Nick Wu: In the second quarter, both our gross margin and operating margin reached historical highs. This primarily reflects ASUS' established brand position, our product mix, and our supply chain resilience. These factors combined have created strong market competitiveness and high customer recognition, even amidst these volatile market conditions. From a relative market perspective, ASUS achieved a significant increase in market share in the second quarter, maintaining a positive year-over-year growth in shipping volume. In terms of volume, the entire market ASP will likely grow by over 20% due to rising memory prices, expanding the overall market value by a similar margin. As a brand that is outperforming the industry, ASUS has captured even greater value premiums from this growth and margin expansion process.

Speaker #2: Our product mix and our supply chain resilience and these factors combined have created strong market competitiveness and high customer recognition, even amidst these volatile market conditions.

Speaker #2: And so from a volatile market perspective, ASUS achieved a significant increase in market share in the second quarter. Maintaining a positive year-over-year growth in shipment volume.

Speaker #2: In terms of volume, the entire market's ASP will likely grow by over 20% due to rising memory prices. And so expanding the overall market value by a similar margin as a brand that is operating from the industry, ASUS has captured even greater value premiums from this growth and margin expansion process.

Speaker #2: And additionally, our server and businesses group continues to see rapid and massive growth, with the ramp-up of new products like the GB300 and the resulting economies of scale profitability in the server segment has also seen pleasing increase.

Nick Wu: Additionally, our server and Infrastructure Solutions Business Group continues to see rapid and massive growth with the ramp up of new products like the GB300 and the resulting economies of scale. Profitability in the server segment has also seen a pleasing increase. Looking ahead, the company is focusing on two primary objectives. First, we will continue to strive for growth and operational results that outperform the industry. This was admittedly our previously stated goal, which we did successfully achieve in the first and second quarters, and we are confident we can maintain this trajectory. Secondly, as we have shared long term, we use an operating margin of 4% to 5% as our baseline assumption for reasonable profitability. While our performance in recent quarters has significantly exceeded this range, we cannot provide a definitive forecast for the future.

Speaker #2: But looking at the company is focusing on two primary objectives. First, we will continue to strive for growth and operational results that outperform the industry.

Speaker #2: And this was admittedly our previously stated goal, which we did successfully achieve in the first and second quarters. And we are confident we can maintain this trajectory.

Speaker #2: But secondly, as we have shared long-term, we use and operating margin of 4% to 5% as our baseline assumption for reasonable profitability. And while our performance in recent quarters has significantly exceeded this range, we cannot provide a definitive forecast for the future.

Speaker #2: However, for the third quarter, we anticipate that our profitability will likely remain above the upper end of that 4% to 5% range. Looking at the long-term, however, we are managing a portfolio balance between our two major product lines.

Nick Wu: However, for the third quarter, we anticipate that our profitability will likely remain above the upper end of that 4% to 5% range. Looking at the long term, however, we are managing a portfolio balance between our two major product lines, PC motherboards and gaming on one side versus servers on the other. In the foreseeable future, specifically the next one to two years, the growth in the server segment is expected to be substantially larger. Because servers and brand products have different margin profiles, our goal is to achieve industry outperforming growth and superior capital returns, specifically, return on invested capital, ROIC, across both business units. That is really what we are aiming for in terms of the goal. To supplement one more point onto that, regarding servers, what we are seeing right now is incredibly strong momentum in orders and our order book.

Speaker #2: PC motherboards and gaming. On one side, versus servers on the other. In the foreseeable future, specifically the next one to two years, the growth in the server segment is expected to be substantially larger because servers and brand products have different margin profiles our goal is to achieve industry outperforming growth and superior capital returns specifically return on invested capital RIC across both business units.

Speaker #2: And that's really what we're aiming for in terms of the goal. But to supplement one more point onto that, regarding servers, what we're seeing right now is incredibly strong momentum in orders and our order book.

Speaker #2: In fact, our current operational and financial resources are reaching a point where they cannot fully satisfy all the orders we have received. And consequently, we are planning to increase our investment in operational resources and financial preparations to support that demand.

Nick Wu: In fact, our current operational and financial resources are reaching a point where they cannot fully satisfy all the orders we have received. Consequently, we are planning to increase our investment in operational resources and financial preparations to support that demand. This applies not only to servers, but also to large product upgrade cycles that we anticipate in AI PCs and HPCs over the next 2 to 3 years. This is really the core of our strategic thinking. Thank you. The next question is from Morgan Stanley and KGI Securities. Could the company share the shipment and revenue proportions of rack level products within the server segment? Furthermore, is the revenue growth in servers for Q3 primarily driven by racks or the other form factor? Finally, what are the shipment and profitability targets for servers in 2026?

Speaker #2: And this applies not only to servers, but also to large product upgrade cycles that we anticipate in AIPCs and HPCs over the next two to three years.

Speaker #2: And this is really the core of our strategic thinking. Thank you. The next question is from Morgan Stanley and KGI Securities. Could the company share the shipment and revenue proportions of rack-level products within the server segment?

Operator: The next question is from Morgan Stanley and KGI Securities. Could the company share the shipment and revenue proportions of rack level products within the server segment? Furthermore, is the revenue growth in servers for Q3 primarily driven by racks or the other form factor? Finally, what are the shipment and profitability targets for servers in 2026? What is the status of the supply of key components for these new server products? Thank you.

Speaker #2: And furthermore, is the revenue growth in servers for the third quarter primarily driven by racks or the other form factor? Finally, what are the shipment and profitability targets for servers in 2026?

Speaker #2: And what is the status of the supply of key components for these new server products? Thank you. Okay. I will answer this one. I am Samson.

Samson Hu: What is the status of the supply of key components for these new server products? Thank you. Okay, I will answer this one. I am Samson. First, regarding our AI server layout, we have a very comprehensive portfolio covering both HGX type servers and full rack systems like the GB300 NVL72 systems. In terms of that lineup, it is very comprehensive. Going to a breakdown proportions, HGX accounts for approximately 60%, and the NVL72 GB300 line full rack systems, they account for approximately 30% in Q2. For the H1 overall, the split was roughly 65% to 35%. Together, these two account for about 90% of our total server revenue, with the remaining 10% consisting of general purpose servers and miscellaneous products.

Samson Hu: Okay, I will answer this one. I am Samson. First, regarding our AI server layout, we have a very comprehensive portfolio covering both HGX type servers and full rack systems like the GB300 NVL72 systems. In terms of that lineup, it is very comprehensive. Going to a breakdown proportions, HGX accounts for approximately 60%, and the NVL72 GB300 line full rack systems, they account for approximately 30% in Q2. For the H1 overall, the split was roughly 65% to 35%. Together, these two account for about 90% of our total server revenue, with the remaining 10% consisting of general purpose servers and miscellaneous products.

Speaker #2: And so first, regarding our AI server layouts, we have a very comprehensive portfolio covering both HGX-type servers and full rack systems like the GB300, MVL72 systems.

Speaker #2: And so in terms of that lineup, it's very comprehensive. But going to a breakdown proportions, HGX accounts for approximately 60% and the MVL72 GB300 line, full rack systems, they account for approximately 30% in the second quarter.

Speaker #2: And for the first half of the year overall, the split was roughly 65% to 35%. And together, these two account for about 90% of our total server revenue.

Speaker #2: With the remaining 10% consisting of general-purpose servers and miscellaneous products. But as I mentioned earlier, we have very high visibility and confidence going forward in the growth of our server business.

Samson Hu: As I mentioned earlier, we have very high visibility and confidence going forward in the growth of our server business, and that is both for this year and beyond. For 2026, we have revised our year-over-year growth target upward to at least 150%, and we remain very confident in our outlook for the next year. As for specific growth targets for 2027, please give us a little bit more time because the picture will become clearer by Q4. In general, we expect our customer base to be even more diversified next year than it has been, or it will be this year. As we continue to scale, we think that server profitability from us has reached a very healthy industry level.

Speaker #2: And that's both for this year and beyond. So for 2026, we have revised our year-over-year growth target upward to at least 150%. And we remain very confident in our outlook for the next year.

Speaker #2: As for specific growth targets for 2027, please give us a little bit more time because the picture will become clearer by the fourth quarter.

Speaker #2: And in general, we expect our customer base to be even more diversified next year than it has been or it will be this year.

Speaker #2: But as we continue to scale, we think that server profitability from us has reached a very healthy industry level. So the server segment will likely continue to be a critical growth pillar for ASUS, not just this year, but also for several years to come in the future.

Samson Hu: The server segment will likely continue to be a critical growth pillar for ASUS, not just this year, but also for several years to come in the future. That is definitely, servers is a big focus that we are keeping track of. Switching our attention to server components, we do see that memory supply remains tight, and that the allocation priority is skewed clearly towards server demand. While there is still some shortage, the situation for server memory is better than it is for the PC product line. The same applies to CPUs, actually, because we are seeing that vendor allocation priority is higher for servers than for PCs. While we cannot say that supply is 100% sufficient, the severity is not as high as it is for the general PC market.

Speaker #2: That's definitely servers is a big focus that we're keeping track of. But then splitting our attention to server components, we do see that memory supply remains tight.

Speaker #2: And that the allocation priority is skewed clearly towards server demand. So while there is still some shortage, the situation for server memory, it's better than it is for the PC product line.

Speaker #2: The same applies to CPUs. Actually, because we're seeing that vendor allocation priority is higher for servers than for PCs. And while we cannot say that supply is 100% sufficient, the severity is not as high as it is for the general PC market.

Speaker #2: So for ASUS, this is within our controllable range and has not caused significant operational disruption in spite of the fact there is definitely a shortage present.

Samson Hu: So for ASUS, this is within our controllable range, and has not caused significant operational disruption in spite of the fact there is definitely a shortage present. So that managed level of shortage is our perspective right now. Thank you. Thank you. The next question is from Bank of America Merrill Lynch. The company has expressed strong confidence in PC growth for the H2 of the year. What is the approximate contribution of commercial PCs to that growth? Furthermore, does ASUS have specific target markets or product lines it is focusing on within the commercial sector? What are the key reasons for ASUS success in this area? As reported previously, our commercial PC business has performed exceptionally well over the last six quarters. We have seen growth rates that exceed over 50% each quarter.

Speaker #2: So that's managed level of shortage is our perspective right now. Thank you. Thank you. The next question is from Bank of America, Merrill Lynch.

Operator: Thank you. The next question is from Bank of America Merrill Lynch.

Speaker #2: The company has expressed strong confidence in PC growth for the second half of the year. What is the approximate contribution of commercial PCs to that growth?

[Analyst] (Bank of America Merrill Lynch): The company has expressed strong confidence in PC growth for the H2 of the year. What is the approximate contribution of commercial PCs to that growth? Furthermore, does ASUS have specific target markets or product lines it is focusing on within the commercial sector? What are the key reasons for ASUS success in this area?

Speaker #2: And furthermore, does ASUS have specific target markets or product lines it is focusing on within the commercial sector? And what are the key reasons for ASUS's success in this area?

Speaker #2: Okay. So as reported previously, our commercial PC business has performed exceptionally well over the last six quarters. We have seen growth rates that exceed over 50% each quarter.

S.Y. Hsu: As reported previously, our commercial PC business has performed exceptionally well over the last six quarters. We have seen growth rates that exceed over 50% each quarter.

Speaker #2: And this is primarily due to strategic adjustments we made in our commercial PC approach a few years back, including the introduction of a new operational team.

S.Y. Hsu: This is primarily due to strategic adjustments we made in our commercial PC approach a few years back, including the introduction of a new operational team. I think it is fair that the drive for growth in commercial PCs differs slightly from consumer PCs, because if you approach commercial clients before you are fully ready for that market, it can actually be highly counterproductive. Commercial clients distinctly have different requirements and higher standards for product stability than consumer clients, and therefore, we adopt a specific strategy. For target markets, we initially focused on regions where ASUS has already established that strong presence in the consumer market. For example, in many Southeast Asian countries where we were already the number 1 brand in those local markets. That existing high local brand awareness makes it much easier to convince corporate clients to adopt our commercial products.

Speaker #2: I think it's fair that the drive for growth in commercial PCs differs slightly from consumer PCs because if you approach commercial clients, before you are fully ready for that, market, it can actually be highly counterproductive.

Speaker #2: Commercial clients dissimilarly have different requirements and higher standards for product stability than consumer clients. And therefore, we adopt a specific strategy. For target markets, we initially focused on regions where ASUS has already established that strong presence in the consumer market, for example, in many Southeast Asian countries where we were already the number one brand in those local markets.

Speaker #2: And that existing high local brand awareness makes it much easier to convince corporate clients to adopt our commercial products. That transfer of recognition tends to make it easier at least in terms of the initial adoption.

S.Y. Hsu: That transfer of recognition tends to make it easier, at least in terms of the initial adoption. Beyond brand recognition, we adjusted product specifications to meet commercial needs, because commercial clients really do require a more total solution rather than just the standalone hardware that consumer clients typically expect. Over the past two years, ASUS has invested heavily in hardware design, software enhancement, and the establishment of local service teams to each locale. These efforts together have yielded significant results across various segments, starting with small and medium businesses, education, and government markets. Starting there, we have also progressively secured larger corporate clients. For instance, we have won orders from several major banks in Southeast Asia. Since these banks have numerous branches nationwide, these wins contribute significantly to our shipment volume. That is a brief overview of our commercial PC business. Thank you.

Speaker #2: But then beyond brand recognition, we adjusted product specifications to meet commercial needs. Because commercial clients really do require a more total solution rather than just the standalone hardware that consumer clients typically expect.

Speaker #2: Over the past two years, ASUS has invested heavily in hardware design, software enhancement, and the establishment of local service teams to each locale. And these efforts together have yielded significant results across various segments, starting with small and medium businesses, education, and government markets.

Speaker #2: And starting there, we have also progressively secured larger corporate clients. For instance, we have won orders from several major banks in Southeast Asia. And since these banks have numerous branches nationwide, these wins contribute significantly to our shipment volume.

Speaker #2: And that is a brief overview of our commercial PC business. Thank you. Thank you. Moving on to the next question from Taiching International Bank.

[Analyst] (Taishin International Bank): Moving on to the next question from Taishin International Bank. The CEO mentioned that ASUS is launching the ASUS ZenClaw solution. Will the local model for ASUS ZenClaw consider using models like Claude or ChatGPT? Let me address this question. Our goal for the ASUS ZenClaw application is to be able to have it run smoothly across all ASUS notebooks. Not only run, but run smoothly. Given that the computing power of a standard PC is relatively limited, it is impossible to host a massive large language model locally. Therefore, the currently implemented local model is approximately 4 billion in parameter count in size. Regarding Claude or ChatGPT, these are closed source models, not open source. They are not something that we can use even if we wanted to.

Operator: Moving on to the next question from Taishin International Bank.

Speaker #2: The CEO mentioned that ASUS is launching the Zenith Cloud Solution. So were the local model for Zenith Cloud considered using models like Cloud or ChatGPT?

[Analyst] (Taishin International Bank): The CEO mentioned that ASUS is launching the ASUS ZenClaw solution. Will the local model for ASUS ZenClaw consider using models like Claude or ChatGPT?

Speaker #2: So let me address this question. So our goal for the Zenith Cloud application is to be able to have it run smoothly across all ASUS notebooks.

S.Y. Hsu: Let me address this question. Our goal for the ASUS ZenClaw application is to be able to have it run smoothly across all ASUS notebooks. Not only run, but run smoothly. Given that the computing power of a standard PC is relatively limited, it is impossible to host a massive large language model locally. Therefore, the currently implemented local model is approximately 4 billion in parameter count in size. Regarding Claude or ChatGPT, these are closed source models, not open source. They are not something that we can use even if we wanted to.

Speaker #2: And not only run, but run smoothly. And so given that the computing power of a standard PC is relatively limited, it is impossible to host a massive large language model locally.

Speaker #2: So therefore, the currently implemented local model is approximately 4 billion in parameter counts in size. As regarding Cloud or ChatGPT, these are closed source models, not open source.

Speaker #2: It's not something they're not something that we can use even if we wanted to. So what we're doing is that we're using a fine-tuned open source small language model that can give users a better experience.

S.Y. Hsu: What we are doing is that we are using a fine-tuned, open source, small language model that can give users a better experience. The fine-tune process is designed to figure out if the user's request can be handled locally. The local model basically acts as a judge to determine if the task is too complex for the local model to handle. In that case, the system offloads the query to a cloud-based model. This hybrid approach ensures that the agentic AI platform performs better and meets customer needs more effectively. You may also be wondering about the cost of cloud tokens. This is definitely a factor that we considered during the design of ASUS ZenClaw. For our commercial PC products, we have implemented a variation of ASUS ZenClaw to address this.

Speaker #2: And so the fine-tuned process is designed to figure out whether if the user's request can be handled locally. The local model basically acts as a judge to determine if the task is too complex for the local model to handle.

Speaker #2: In that case, the system offloads the query to a cloud-based model and so this hybrid approach ensures that the agentic AI platform performs better and meets customer needs more effectively.

Speaker #2: But you may also be wondering about the cost of Cloud tokens. And so this is definitely a factor that we considered during the design of Zenith Cloud.

Speaker #2: For our commercial PC products, we have implemented a variation of Zenith Cloud to address this. Because to run larger models on a machine with limited amounts of memory, we do need some form of workaround.

S.Y. Hsu: Because to run larger models on a machine with limited amounts of memory, we do need some form of workaround, and we are basically hoping to use something called vRAM virtualization. We collaborated with a Taiwan-based flash controller vendor that provides AI adaptive technology, and integrated that into our commercial PC models. By integrating that technology, we can run models larger than that 4 billion parameter count I mentioned. Of course, this is not going to match the massive parameter counts of Claude or ChatGPT models. Nonetheless, this sort of offloading approach can significantly reduce token costs. Our tests showed that this sort of vRAM virtualization is a fairly effective way to save on token generation costs. Of course, the trade-off is that the token generation speed is slightly lower due to that memory offload.

Speaker #2: And we're basically hoping to use something called VRAM virtualization. And we collaborated with Taiwan-based Flash Controller vendor that provides AI-adaptive technology and integrated that into our commercial PC models.

Speaker #2: And so by integrating that technology, we can run models larger than that 4 billion parameter counts I mentioned. But of course, this is not going to match the massive parameter counts of Cloud or ChatGPT models.

Speaker #2: But nonetheless, this sort of offloading approach can significantly reduce token costs and our tests showed that this sort of VRAM virtualization is a fairly effective way to save on token generation costs.

Speaker #2: But of course, the trade-off is that the token generation speed is slightly lower due to that memory offload. However, many agentic AI tasks do not require an instantaneous response.

S.Y. Hsu: However, many agentic AI tasks do not require an instantaneous response. For example, a user can issue a command at the end of the day and check the results the next morning. For those types of applications that are not time sensitive, this sort of architecture is a near perfect solution. It is cost effective, and it still gets the job done. We do support various architectural configurations depending on the customer's needs. That is really, I think, a very balanced approach that we have adopted. At the end of the day, it is down to the individual customer's needs. We do allow for that flexibility in the agentic AI itself. Thank you. The next question is from Taiwan Life Insurance.

Speaker #2: For example, a user can issue a command at the end of the day and check the results the next morning. And so for those types of applications that are not time sensitive, this sort of architecture is a near-perfect solution.

Speaker #2: It's cost-effective and it's still gets the job done. And so we do support various architectural configurations depending on the customer's needs. And so that's really, I think, a very balanced approach that we have adopted.

Speaker #2: But at the end of the day, it's down to the individual customer's needs. And so we do make allow for that flexibility in the agentic AI itself.

Speaker #2: Thank you. The next question is from Taiwan Life Insurance. Regarding the Pro P16 MP14, which are the NVIDIA RTX Spark platform products, what is the estimated global sales volume for the first year?

Operator: The next question is from Taiwan Life Insurance.

[Analyst] (Taiwan Life Insurance): Regarding the ProArt P16 and ProArt P14, which are the NVIDIA RTX Spark platform products, what is the estimated global sales volume for the first year? Does ASUS have a target market share or a specific price range for these products? As I mentioned at the beginning, ASUS is part of the first wave of manufacturers launching NVIDIA RTX Spark products. Our launch timing is aligned with the schedule set by our key partner and is expected to fall in Q4. Regarding current demand, the market response has far exceeded our expectations. Essentially, the initial quantities we planned have already been fully pre-ordered by our channel partners. We are continuing to place additional orders with our partners. We are very optimistic about next year's sales, and we will reserve the specific volume figures for now, pending how the future plays out.

Speaker #2: Does ASUS have a target market share or a specific price range for these products? So as I mentioned at the beginning, ASUS is part of the first wave of manufacturers launching NVIDIA RTX Spark products.

S.Y. Hsu: As I mentioned at the beginning, ASUS is part of the first wave of manufacturers launching NVIDIA RTX Spark products. Our launch timing is aligned with the schedule set by our key partner and is expected to fall in Q4. Regarding current demand, the market response has far exceeded our expectations. Essentially, the initial quantities we planned have already been fully pre-ordered by our channel partners. We are continuing to place additional orders with our partners. We are very optimistic about next year's sales, and we will reserve the specific volume figures for now, pending how the future plays out.

Speaker #2: Our launch timing is aligned with the schedule set by our key partner and is expected to fall in the fourth quarter. Regarding current demand, the market response has far exceeded our expectations, essentially the initial quantities we planned have already been fully pre-ordered by our channel partners.

Speaker #2: So we'll continue to place additional orders with our partners so we're very optimistic about next year's sales. And we will reserve the specific volume figures for now pending how the future plays out.

Speaker #2: But we are generally highly confident in the product because of its high AI computing power, relative to its compact size. We believe this is a highly suitable platform for agentic AI inferencing applications.

S.Y. Hsu: We are generally highly confident in the product. Because of its high AI computing power relative to its compact size, we believe this is a highly suitable platform for agentic AI inferencing applications. It is perfect as an edge AI compute module, so it aligns perfectly with that broader trend of edge AI development. In addition to these laptops, we are also very confident on the DGAS Station products that we mentioned before. They are workstation-grade RTX Spark computing power units. We believe that these two product lines will create a new growth segment for the industry in the era of agentic AI. As a leader in this space, we have high expectations for the momentum that these products will bring to our operations in Q4 and throughout next year. That is definitely something that we are looking forward to. Thank you. Thank you.

Speaker #2: It's perfect as an edge AI compute module. And so it aligns perfectly with that broader trend of edge AI development. In addition to the laptops, we are also very confident on the DGAS station products that we mentioned before.

Speaker #2: They are workstation-grade RTX Spark computing power units. And we believe that these two product lines will create a new growth segment for the industry in the era of agentic AI.

Speaker #2: And as a leader in this space, we have high expectations for the momentum that these products will bring to our operations in the fourth quarter and throughout next year.

Speaker #2: And that is definitely something that we are looking forward to. Thank you. Thank you. I would like to once again thank everyone for participating in today's ASUS online investor conference.

Operator: Thank you. I would like to once again thank everyone for participating in today's ASUS online investor conference. We believe we have provided comprehensive answers to the main questions, and will now hand the time back to our two Co-CEOs for their closing statements. Thank you.

Operator: I would like to once again thank everyone for participating in today's ASUS online investor conference. We believe we have provided comprehensive answers to the main questions, and will now hand the time back to our two Co-CEOs for their closing statements. Thank you. First, I would like to thank investors and members of the press for your continued support. Your questions were very insightful and gave us the opportunity to more deeply share ASUS' vision, while also reminding us of the areas where we must continue to improve. Before we conclude, I will provide a brief summary. In Q2, ASUS brand revenue and profitability both reached historical heights. This result was driven by two simultaneous engines. First, our server business revenue grew twofold year-over-year.

Speaker #2: We believe we have provided comprehensive answers to the main questions and will now hand the time back to our two co-CEOs for their closing statements.

Speaker #2: Thank you. First, I would like to thank investors and members of the press for your continued support. Your questions were very insightful and gave us the opportunity to more deeply share ASUS's vision while also reminding us of the areas where we must continue to improve.

S.Y. Hsu: First, I would like to thank investors and members of the press for your continued support. Your questions were very insightful and gave us the opportunity to more deeply share ASUS' vision, while also reminding us of the areas where we must continue to improve. Before we conclude, I will provide a brief summary. In Q2, ASUS brand revenue and profitability both reached historical heights. This result was driven by two simultaneous engines. First, our server business revenue grew twofold year-over-year.

Speaker #2: Before we conclude, I will provide a brief summary. In the second quarter, ASUS brand revenue and profitability both reached historical heights. This result was driven by two simultaneous engines.

Speaker #2: First, our server business revenue grew twofold year over year, with the accelerating demand for AI computing and cloud infrastructure. We have high confidence in our order visibility for the second half of the year.

S.Y. Hsu: With the accelerating demand for AI computing and cloud infrastructure, we have high confidence in our order visibility for H2, and that allows us to revise our full year server growth target from 100% to 150%. Second, despite the headwinds we are facing because of rising component costs, our PC business achieved a still impressive 20% year-over-year growth, making us the only growing brand in the Windows camp in terms of shipments. Our commercial PC business has also maintained growth above 50% for six consecutive quarters, proving that our strategic transition into the commercial market has been highly successful and is now bearing fruit. We are very optimistic about our outlook for H2 and believe that momentum is very sustainable.

Speaker #2: And that allows us to revise our four-year server growth target from 100% to 150%. And second, despite the headwinds we're facing, because of rising component costs, our PC business achieved a still impressive 20% year over year growth, making us the only growing brand in the Windows camp in terms of shipments.

Speaker #2: And our commercial PC business has also maintained growth about 50% for six consecutive quarters. Proving that our strategic transition into the commercial market has been highly successful and is now bearing fruit.

Speaker #2: And we are very optimistic about our outlook for the second half of the year and believe that momentum is very sustainable. And these numbers are the results of ASUS's comprehensive layout across four layers.

S.Y. Hsu: These numbers are the results of ASUS' comprehensive layout across four layers: the cloud, edge computing, terminal devices, and physical AI. We will continue to face the challenges of the industry environment with a pragmatic but aggressive attitude. We remain highly confident in our position within this AI wave by staying user-centric and leveraging superior products, services, and comprehensive AI ecosystem. We will continue to be a trusted technology partner for global enterprises and create long-term value for our customers, partners, and shareholders. Thank you. I am Co-CEO Sam Hu. Finally, I would like to once again thank everyone, especially to the investors and the media, for your participation in today's conference and your long-term guidance and support. Because SY has covered the main points, I am going to add a few closing remarks to supplement.

Speaker #2: The cloud, edge computing, terminal devices, and physical AI. We will continue to face the challenges of the industry environment with a pragmatic but aggressive attitude.

Speaker #2: We remain highly confident in our position within this AI wave by staying user-centric and leveraging superior products services and comprehensive AI ecosystems. We will continue to be a trusted technology partner for global enterprises and create long-term value for our customers, partners, and shareholders.

Speaker #2: Thank you. I am co-CEO Samson Hu, finally I would like to once again thank everyone especially to the investors and the media for your participation in today's conference and your long-term guidance and support.

Samson Hu: I am Co-CEO Sam Hu. Finally, I would like to once again thank everyone, especially to the investors and the media, for your participation in today's conference and your long-term guidance and support. Because SY has covered the main points, I am going to add a few closing remarks to supplement.

Speaker #2: Because that's why it has covered the main points, I was going to add a few closing remarks to supplement. In the face of headwinds from memory and CPU components, we rely on our supply chain partnership and our high value product mix.

Samson Hu: In the face of headwinds from memory and CP components, we rely on our supply chain partnership and our high-value product mix. As shared today, high-value products account for over 65% of our revenue. Furthermore, our pricing power in the gaming brand market provides us with significant operational resilience. This is why we have clearly outperformed the industry in H1 of the year, and we are confident we can expand these results in H2. Regarding AI servers, I will emphasize this once more. We are very confident in achieving at least 150% year-over-year growth this year. We are equally confident in our outlook for the next year. This is all from my side. Thank you. Thank you everyone. Goodbye.

Speaker #2: As shared today, high value products account for over 65% of our revenue. Furthermore, our pricing power in the gaming brand market provides us with significant operational resilience.

Speaker #2: And this is why we have clearly outperformed the industry in the first half of the year and we are confident we can expand these results in the second half.

Speaker #2: And regarding AI servers, I will emphasize this once more. We are very confident in achieving at least 150% year over year growth this year.

Operator: Thank you everyone. Goodbye.

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