Distinguished investors, good morning and welcome to the 2021 Interim Results Announcement of Sunny Optical Technology Group. I'm Daisy from Investor Relations. On behalf of our company, I'd like to take this opportunity to thank you for your long term support. Being influenced by the pandemic, this announcement will be conducted via online platform. So for the inconvenience, first of all, please allow me to introduce our management presenting in today's event.
They are Executive Director and Chairman of the company, Mr. Yelao Ning Executive Director and CEO, Mr. Sun Yang Vice President and Joint Company Secretary, Mr. Ma Jianfeng and also in our Hong Kong venue, I am Director and Joint Company Secretary, Madam Huang Pei Ling Associate IR Director, Madam Liu Yanfeng. Next, we'll present you our annual results and a presentation that has been uploaded to our official site.
Please feel free to dial it. Now, let's welcome Isaac Galeta and Chairman, Mr. Sun Yang to brief you the 2021 interim results. Now, let's welcome Mr. Sun.
Okay. Thank you to investors for your participation. Due to the pandemic, just like last year, we'll be conducting this event via online video conference. Now I'd like to brief you. SUNY Optotech 2021, the first half operation situation.
Now let's take a look at our revenue. So in the first half of the year, we have RMB 19,800,000,000 and that's a RMB 5,100,000,000 up. So that is a not so easy increase of the performance and that is because in different terminals of our handsets has been increased in the market share and also for intelligent driving, EVs, all these industry, their demands towards the sensors has been expanding. And yes, in between, we have some fluctuations in terms of the chips, but these are 2 of the main driving forces and we still create a 5.1% of revenue increase. Now let's take a look at gross profit.
We have 34.5% of growth in first half of the year. We have got KRW 4,900,000,000 in this part. So as you can see, the gross profit, growing speed is a lot faster than our revenue. That is because our handset unit BU, handset camera unit BU, in the first half of the year, they have been improving their manufacturing technology, manufacturing process and they further increase the establishment or the construction of the supply chain. And that has been pulling our group's gross profit into a higher standard.
And for the 3rd part, we can see the profit before tax that is JPY 3,200,000,000 and that is a 52.1% of growth. So our effective tax rate in first so it's kind of same comparing to the first half twenty twenty. And for the profit for the peer attributed to owner of the company, that is 53.7%. Value per share is 53.9% of growth. So that is our basic situation in our revenue.
Now let's look at our expenditures. And in terms of the expenditures or the expenses, our operating expenses is kind of close to last year. That is 9.4%. So now as you can see, selling and distribution expenses and administration expenses are maintaining approximately to the same level. However, if you look at the R and D expenditure, we have one percent of increase in that.
So here, except for the continuous investments in our lens and sets and so on, we have been investing more in our vehicle voided cameras and LiDARs, HUDs, smart headlights and so on. These are we have more increase in investments in these parts. And in second part also that in ARVR, we have been investing more as well. Because in these new business, we are investing more and that is the reason why we have 1% of increased EN in the R and D expenditure. We're investing for the future.
And next, let's take a look at a few more index here for current ratio. We have it's now 1.8 as such And the operating cash flow is JPY 12,300,000,000. That's pretty good. In terms of our cash, we have JPY 111,000,000,000 or net per share now is JPY 5.34 and the gearing ratio have been further decreased down to 16.4. The ROE increased 1.6% and now reaches JPY 14.6 for our CapEx.
It is now JPY 1,000,000,000. So it's kind of maintaining what we mentioned in the beginning of the year. So I'm not going to repeat it. So here in this slide, you probably look at us quite often. That is the final product of the company, their application in these few domains.
The largest part is still highly related to our handset units. In the first half of the year, it takes 80% of our revenue and YY was 88%. So what can be more happy about is they can see the in the lighter yellow, they are also product related to vehicle and it increased from 5% to 8%. That indicates the vehicle related products now has become a second growing pillar of our group. So this part is about the GP margins.
Now let's take a look at the overall situation. In first half of this year was 24.9%. It is a 5.4% of growth, YOLY. Now if we take a look at the optical components, we have 1.4% of growth, now reaches 24.9%. For our optical electronic products, we have 3.7% of growth, which hits 14.8%.
In terms of optical instruments, it's up by 5.6%, now hits 44.2%. So we can say that in the first half of the year, these three main pillars are improving in terms of their GP margin. Due to the first half of last year, it's influenced by the pandemic. It's still influencing this. But overall speaking, in the second half of the year, smartphones, in terms of their downgrade of their parameters, we're not seeing a stamp of that trend.
Well, in the second half of this year, that probably will be the trend to beat. So we do feel that pressure. And so overall speaking through our effort of the overall year in 2021, our overall GP margin through our own efforts, hopefully, that we can have a better increase comparing to 2020. So long term wise, next year or the year after next year, no matter what's about the smartphones or vehicle boarded cameras, lenses and so on, the upgrade of these equipments, that is a certain trend. And we do believe and we do hope that through our effort, we can increase the GP margin.
So that's all about the GP margin. So here in this slide, let's take a look at this one. These are some of our breakthroughs in R and D. Now let's take a look at the optical components. This is a BU.
And so now this is smartphone related R and D. The R and D completed in this domain. First, this is a turnable tranche lenses. So it's kind of like a liquid lens. We call them T lens.
So this is for front camera, fast focus technology and we've completed our R and D in this part. And so what we've completed for the second one is we have a super wide or ultra wide angle lens. We've completed that R and D. And third is what everyone cares is our hybrid GM plus P large image size lens set. And this is the application for main cameras.
We've completed the R and D for this one as well. On the right hand side, now these are the technologies that are already now in mass production phase. So first of all is the 3 millimeter ultra macro shooting lens set. This can be adopted in on our smartphones and we can use this as a microscope. So this is a pretty niche market.
And second one is that we've completed the 10x periscope telephoto lens set with pure plastic lenses and this is now under mass production. With the first one in the industry and these are related to our smartphones. And second is related to vehicle. So in this part, first of all, we have finished something based on NVIDIA platform that is 8 megapixel autonomous driver lens set. And in the future, the NVIDIA platform will become even more significant when the levels of self driving vehicles increase.
And so we'll have more cooperations with them. So 8 Megapixel is a project we finished this year. And also we've got other projects already went through NVIDIA's certification. So also we have the OMS or DMS 5 megapixel hybrid in cabin LAN sets. For this one, we've completed our MD as well.
For the 3rd part is our HUD. The HUD we've completed here is AR HUD and it's based on POP solution. The R and D for this one has been completed as well. On the right hand side, already now in mass production phase, we've got 3 items for this one. It's all about LiDAR.
So we've got the transmitter and receiver modules. It's all under mass production. And also the window outside the later itself is now under mass production as well. And also we have got the horizontal, Christmas. We have already put this under mass production as well.
So for the final one, let's take a look at our AR technology. So for our AR, 3 color waveguides, we've completed our R and D on that as well. And also for the next one is our VR optical module. What's that about? So that's that in virtual reality.
So we have finished the R and D for the assembly for the improvement in the solution of the chromatic aberration. So these are the R and D milestones we have achieved in the optical component speed unit. So next one is our optoelectronic products. First of all, we'll talk about something related to smartphone. For the first one, we have this something quite like T lens.
It's a camera module with tunable cover lenses. This is a component that is being coupled with the lens. So it's going to be replacing the traditional VCM. And next one is that we are going to we've already completed the 3x, 2x continuous zoom camera modules. And next one is that we'll doing the dual OIS camera.
So for this sensor shift and lens shift, we'll be combining them together to do a dual OIS. That's the first one in the industry. That's the R and D. On the right hand side, the first one is the 10 times optical zoom periscope camera modules. We all know this.
And second, we are the leading one in the industry as well. That is our gimbal stabilization camera modules with ultra wide angle. We've completed this to enter this through mass production. And third one, it's a free form camera modules, including ultra wide angle and low distortion.
Next part is related with the vehicles. On the left hand side, you can see that we had carried out the in-depth visual ranging modules based on the OMS and the DUS. We have the RGB and the TOF combined solutions. We are able to view the 2 d images and also the 3 d images so that the gesture identifications and the level movement identifications will be based on it. And the second one, it seems to be not so obvious, but we have the low cost miniaturized exterior viewing modules.
We hope that in the future, the scale can be more and more miniaturized and will not be visible if you embed it in the vehicles. So we are also saving the cost. So it is very challenging as we had finished this kind of R and Ds in the first half. And on the right hand side, you can see what are the things that had entered into the mass production. The first is that we are very proud to be the 1st supplier in the industry to be able to deliver the 8 ms front view sensing modules.
And also we have the DMS modules and OMS modules entering into the mass productions. And the last but not least part is the other applications. 1st is that based on the top and structured light technologies, we have the facial recognition plus in vivo recognition technology. And it's mainly used in the facial scan and payment. And we had completed this R and D.
And on the right hand side, you can see the items that has entered into the mass production. The first is the ARVR, especially in all class projects, we have a very large market share and we had been making a lot of progress on that. And also in the sweeping robots, we not only have the 12 hotwares and but also we have the filter wave processes combined with algorithms we have put that into the SDKs to enable the easier development for the customers. And in the future, we may expand further from SDK to chips. In terms of the optical instruments, I will very quickly go through it with you.
On the left hand side, the R and D completed items. The first is the prism appearance inspection equipment the second, the vehicle plane glass inspection equipment and the third one is the achromatic objective project. We have a achromatic object. And on the right hand side, you can see the production in a mass scale. The first is the wafer fragment inspection equipment.
The second is the real time focusing microscopic Upright and Near Infrared Region 2 motorized the fluorescence microscope in vivo imaging system, so that we can go further steps in viewing the in vivo samples. So next, it's also related with the R and D. Let's take a look at the patents we have. And by the first half of this year, the granted patents had reached 2,488, increased by 292 compared with last year, among which 185 are the patents of inventions. And these are the granted patents by the first half of the year.
But actually, we also have 3,612 patents in pending. We mainly focus on the sensing modules, ARVR, robot vision and some of the other fields. This is about our patents. On this slide, let's talk about several main production lines about their shipments and the future outlook. The first is the shipments volume of the handset LAN sets.
In the first half of this year, we have about RMB17 1,000,000 increased by 11.1 percent. And we made another statistics for LENSAT over RMB6 we have RMB163 1,000,000. So we believe that it is a very large quantity. And in the second half of the year or throughout the whole year, we also have a guidance. And this is based on the actual result in the first half.
And the full year shipment for handset and LAND SAC compared with 2020 will be increased by 5% to 10%. And this is the full year guidance for the shipment of handset and handsets. On this slide, let's take a look at the vehicle landsets. And we have a very robust recovery in the first half because the baseline of last year, it was relatively low and we had a group by 82% reaching 37,317. And also I'd like to provide you with a full year guidance of the shipment for vehicle and sets.
We believe that in 2021 compared with 2020, we will hit 30% to 35% growth year on year. On this slide, this is about our camera modules. On the left hand side, you can see the total values in the first half. We have a 360,000,000 yen grew by 34.5%. On the right hand side, we had been updating those figures.
We believe that it will give us a better added value such as the large image size or the periscopic ones. And there was a drop of 21% year on year. And throughout the whole year, the total guidance for the full year shipment was 20% to 25% growth year on year. And I'll skip this slide. You have visited our new production bases and it is going very smoothly.
In India and Vietnam, we are also having very steady progresses there. And the last part is our outlook. So maybe I'm not reading the PBT for you. Just to share with you some of the highlights. The first is about the smartphone.
We believe that upgrade is a definite trend. Maybe it will happen next year or the year after next year and we will focus on the large image size. And also the hybrid materials, glass plus plastics and also sensor shift. And the 4th part is the continuous zooming. And we have made a lot of R and D investment on all of these fields.
And once we have an up spec trend, we will definitely take a very advantageous position. And this is the first information delivered to you. And the second one may be much concerned by you is the situation of the American company. And we are very happy to tell you that that American company is very happy with our offering and the progress is beyond our expectations. So this is about the smartphone products.
And on the next slide, it's about the product related with the vehicles. And I can brief you the overall situation and some of the achievements we had been making. First, the 8 megapixel front view ADAS vehicle modules. In the first half of the year, we had the 1st mass production solution in the industry. And in the second half, we will have 3 mass production solutions.
And also design win already have 10 different modules. And in China, we had covered almost all of the 8 megapixel front view ADAS. And the second part is the LIDAR optical system. In design 1, we already have 10 LIDAR solutions and we had covered almost all of the top players and this is about the vehicle camera modules. And the last slide is about our Smart Eye AR OT and we are very pleased to tell you that in the second half of the year based on the 22 nanometer processing, we will have an SoC used on some of the AROT production lines and we cannot offer you more details at the current moment, but definitely we will have the 22 nanometer SOT and to have the actual Smart Eye completed.
And this is our coverage in Smart Eye, smartphones and vehicle related products as well as the SLT. Thank you for your patience. Thank you very much, Mr. Sun, for your presentation. And now we will answer into the Q and A session.
And you can ask via voice or text. And if you want to ask via voice, please press the raise hand button to wait in the queue. And after you are unmuted, you can start the question. And also please inform us your organization and name before asking the questions. And if you want to ask via text, please click Q and A and type in your question.
Let's invite the first investor, Tina Wang. You have been unmuted. You can go ahead. Thank you, management. Congratulations on a great performance.
I have two questions. The first is related with the vehicle business because we sense that the investors also pay a lot of attention to the vehicle land sales development, especially on the changes of the price. And we like to know about the factors influencing the price changes. Is it about different customers or different types of the products or any other reasons, for example, from the supply chains or from any other variables of the products? Why we have a different ASP?
This is my first question. And the second question is also related with the vehicle business because in outlook, we have the 8 megapixel front view lens. We will have more and more shipments of that part of the products. And we also have some progresses in the mass productions of the LiDAR. And apart from the vehicle lensets, what is our forecast for the future development?
And another question is related with the handset, handsets. I'd like to know more about the price in the first half of the year and what will be the outlook for the second half of the year? Thank you. Can you answer your first question? We have the vehicle related product sessions in this slide and before we use the vehicle landsets.
Why we have such a change? In the presentation of Mr. Sun, he already had mentioned that because in the production lines, industrial lines of the vehicle businesses, it has become the 2nd growth engines for SineOptical Technology Group. And also we have made all sufficient preparations for these pipelines and maybe we will put together those products and then have a breakdown. This is a more reasonable practice.
And we have the vehicle lens set. We also have the vehicle modules. We also HUD, Smart Eyes, etcetera. And also have the LiDARs and about the infrared vehicle lensets, we also have included that into the vehicle related products. And in the first half, the ASP is actually very stable.
And the biggest pressure comes from the appreciation of RMB compared with the same period last year. And if I had remembered it correctly, the foreign exchange rate last year was about 7% and in the first half of this year was about 6.4% to 6.5% and there was a growth of about 7% to 8%. So in terms of the U. S. Dollars, it's quite stable and even there is a slight increase.
And this is about your first question. The second question is about the handsets, the ASP of the handsets, handsets impacted by the epidemic. There was a de spec situation in the industry and there was a drop of single digit. And throughout the whole year, we hope that the second half ASP compared with the first half of this year can be more stabilized, but still we are pressured. Understood.
Thank you. Thank you, Tina, and thank you, our management. Next, let's welcome Andy Mon. You have been unmuted. Please go ahead.
Thank you, moderator. Thank you, management. I also have two questions. The first is that we have noticed that in July, the shipment of the vehicle lansets had a slight drop and it is because of the chip variations in the downstream? And can you give us the quantified situation interaction of the vehicle lansets?
What will be the normal shipment of the vehicle lansets? And in the future, what is the gross logic? Is there any changes of that? And the second question is about the handset lensets. We had a notice that in handsets, lensets and the modules, there is increased percentage of the products provided to our own group and does that affect our GP margins for the optical electronic products?
And will it also have an effect on the GP margins of the optical components? Thank you.
So for your first question, in terms of the vehicle assets, in terms of the shipments for the guidance, actually, I mentioned that. So in terms of the annual view, it's around 30% to 35% growth. Yes, we're seeing in the industry, they're lacking of chips. We are seeing that as well. But we do think that the shipments will increase because sensors voided on vehicles, the amount of that is increasing.
No matter it's the visual sensors or LiDAR sensors, they're all using that. So for the future or the coming years, it is a high percentage, a high possibility that the shipping amount will be increased. So in terms of our guidance that we offer this year, this is a result after we make communications with our customers, clients. But overall speaking, we do have an estimation of that between 30% to 35% because in terms of vehicle landsets, we are number 1 in the world and that's pretty that's quite we do have quite a lot of space over here. So we're looking at speeding up and despite and the penetration rate is increasing.
That's the answer for your first question. As for your second question, in terms of the handset lens sets and lenses, your self supply, actually you are putting more focus in L2 because we are not calculating the self supply right now because 2 of the BUs are all based on the marketing mechanism they're operating on that. So for self supply, if it increase in that, do we have an improvement in GP margin? Well, actually, it's not related. It's all based on the demand of the customers to make the best modules and components for them.
So that's the situation. All right. Thank you, Mr. Sun. Thank you, Andy.
Thank you, management. And next, let's welcome the next question, Le Pin. Okay. I've got 2 questions here. First one is about the handset because we're seeing the first half business in the handset unit.
Your revenue is decreasing. That's the first time I'm seeing this for many years. Is I think it is actually shifting down. So I would like to know your view, Mr. Sun, Mr.
Ma, for the future growth of your smartphone business over here because we're seeing the amount of your handset business is pretty stable and also for the downgrade trend, the itch trend is pretty stable as well. So what do you think about the future of this business domain? Is it going to be stable as well? That's the first question. And for the second question, just like Mr.
Sun mentioned, AI technology, how do you view it? Because you mentioned the market share is leading in this domain because your AI product is it still relatively early in terms of the competing landscape? Because we're still waiting for probably in the market, there will be other competitors releasing new products. So how do we view ourselves? What's our competitiveness and advantage in that part?
Well, I mentioned it just a bit, so I would like to clear it out. First of all, in terms of the handset, lens sets, in terms of the HOS, momentous, the market share of our company or revenue of our company, we do all think that there are rooms of improvement. We will not just stop here. I'll stop at the number of the figures you mentioned. And it's pretty simple because in terms of market share, the company from the U.
S, their market share is increasing. So for Huami and Rail, their market share is increasing. So that's one thing. And second is that this year, for the downgrade, because of the downgrade trend, the price is not optimum. But in terms of our TLANs, continuous zoom switches and so on, all well, the price is going to increase.
And if that increase, the amount will increase as well. And so the revenue will increase. That's the answer for that. And second, in terms of ARVR, let me just pull them together. What we are needing is in the VR product, including VR cameras, lenses, So because the players in this part the main player is Oculus and we're taking a big portion of that.
So here, just like you mentioned, this is an early stage. The industry is in its early stage. But in this early stage, we've already gained the top player. And within the top players, we are taking its main share in its optical system. So that's the reason why I'm putting the words like this.
We are leading in VR. Well, we are leading in AR as well. We can put it that way, because in China, there are only few players like us that can achieve the technology we have right now. And for the first half of the year, we already finished all those technologies, R and D and some of them are even under mass production. So that will be my answer.
Okay. Thank you. Thank you, Leopin. Thank you, management. And next, let's take the next question, Tony Zhang.
Tony Zhang, you are unmuted. Please go ahead. Ping and management, we've got 2 questions. First of all, for the handset, handset, we are seeing some price pressure in the first half of the year. But in terms of the optical units, we are GP margins, we have we'll be increasing as well.
Can you explain why can we achieve that? And also for 3 d top and SDK, we're trying to make chips. So what's your thoughts and your position on the chip manufacturing? So in terms of equipment, in semiconductor, we do have a replacement for overseas equipment for the semiconductors, right? And I would like to know what's the function of those equipments.
So first of all, in terms of the HLS, the optical components GP margin increase, The reason of that is pretty simple. That is in first half of the year, internally, we are making some management and administration improvements. That's the core reason why our GP margin can have an increase in one way comparison. So second, in terms of the SoC, I'd like to make an explanation. The thoughts behind that is pretty simple, because in AIOC, it's a shattered market.
And so the client is in its different levels. So if we just give them tough, a hardware like that in terms of the ISV and other merging of the informations and so on, it's actually quite complicated. So the thoughts behind those is that we are going to make an R and D of the SoC, then there will be ARM structure. We have got boosters as well. And also we have got cores for 3 d processings.
It is the first time that we're doing this with our collaborators because our collaborator, they've already got their experience in SoC and they've got a lot of patent. So we're not just started on our own in fresh hands, But we do have alliance with that. And also with done to market research, done the study and comparison, so hardware plus, chip plus algorithm, this solution to the lending of specific IoTs will be pretty helpful. Currently, in terms of our market research, that's what we receive. Can we make this a blockbuster hit in the market or be welcomed by our clients that probably need to be reviewed by time?
But hardware plus chip plus algorithm to form the Smart Eye will be the direction of Sonya Optical Tech. All right? Okay. Thank you. Thank you, Tony.
Thank you, management. Let's take the next question. Mr. Ye, Mr. Ma, Mr.
Sun, hello everyone, hello management. Two questions. So first one is, if we see the revenue and profit in terms of the quarter, do we have any change in that? And second is related to handset units. We've got 2 questions here.
One is that we have pretty high margin in the modules. Do you think that this will become the new norm? And second is that in your U. S. Client, what's your estimation of your profitability comparing to the HLS?
Your first question in terms of the time for the profit, the major influence of that is because of the pandemic instead of the high low season. 2nd, in terms of the camera module GP margin, in the past few years, through our internal efforts, we are increasing our own GP margin. Speaking from this year, we are doing pretty good in the first half. But for the second half of the year, because of the downgrade trend, we do reckon that we're under pressure. In terms of our annual goal, we do want to outperform our last year's performance.
And after the new technology was introduced is introduced based on our optimization for our management system. Hopefully, we can reach a better GP margin in that as well. So basically speaking, we need to follow the market trend. And by doing so, we need to improve our internal management. Yes, but yes, we that is pretty pressurized as well.
In terms of EGP margin of our North American client, in terms of that, don't just look at that. Don't just look at single client. Look at the overall situation of our HLS. During our cooperation with our clients, what we need to care is do we win positive comments from our clients? That's pretty significant, currently speaking.
So a good by offering a good product structure, we do believe that we can have better GP margin performance. Now thank you. Let's take the next question from Fu Tianzi. You're now unmuted. Please go ahead.
All right. Hollow Management, in terms of your Aligna, your AR, VIA and vehicle boarded components, you've got R and D spin performing pretty good and some of that under mass production. We do think that the market is pretty interested to see all of this and also it provides a good growth to the company. But in terms of the upgrade of the handset, I would like to continue your question. In terms of the downtrend, that's influencing the first half and second half of our ASP.
But at the same time, it also indicates that next year, there's a hope for the huge increase for the GPM rate. And why is that, that this year, we're seeing a downgrade? And next year, we're probably seeing an upgrade of these smartphones. Why is that? What's a market behind that?
And also, for Mr. Sun, in terms of the handset, the ASP in second half of this year, what will be the trend of that? First of all, the judgment behind that is what I mentioned is actually next or the year after next, we are seeing that trend. It's actually pretty easy to understand because when we are making exchanges with the R and D department of our clients, N plus P, OIS, continuous focusing or zoom changing. They have different focus in our different clients, but people are making their own judgments, right?
All I'd like to say is these judgments, these new parameters, new products will definitely be used in their new products, new cell phones. But is it going to be next year? Is it going to be the year after next one? That depends on them. But after making exchange with the R and D department, we do feel that trend.
So well, for the first half of the year, we're doing like this. So for the next second half of the year, can we increase the efficiency? Can we improve the cost in Ceylon? All these sayings are from our clients. But some of these words are from the R and D.
Some of their words are from procurement or market department. So I think this will be quite easy this is actually quite easy to understand. If the upgrade is significant, the increase of GP margin is just a result of that, a pretty natural result of that. So what's your other question?
About ASP and GP margin in the second half of the year and outlook towards the next year. Actually, Mr. Sun had emphasized on the GP margin already and already we have a back drop of the DSPAC and we had been pressured, but our goal for the whole year compared with 2020, we hope that with our efforts, it can be stabilized and improved. And about AST of the handsets, handsets and the camera modules, actually we already answered the question for handset, handsets. We have been pressured, but we hope to stabilize it compared with the first half.
And for the modules, there are some special situations. The first is the performance of ASP and compared with same period last year, there was a drop and it was a very obvious two digit drop. But I remembered that in March this year, we already provided you a guideline. Our goal of ASP compared with the second half of the year, we want to stabilize it. We already had to realize that goal.
But the biggest difference is let me repeat, our biggest customer started from Q4 last year, there was a big drop of the market share and that has a big impact to our camera module and the product structure of that biggest customer is also the optimal. So for us Q3 and Q4 last year, there was a big change of ASP. And what we had been benchmarking is that the second half of last year ASP. So compared with Q4 last year, there was an improvement, but the customer structure of last year and this year, there is a big change as well. In the first half of this year, we had very successfully digested those kinds of negative impact.
And our goal is to maintain and stabilize the situation of the first half of the year. And we will also improve the performance compared with Q4 last year. And this is the current expectations. And as for the longer term expectations, you can go back to what Mr. Sun has been answered.
The better products will bring about the more satisfying ASP. Thank you, Tianzi, and thank you, management. Liang, Mr. Liang, you are unmuted. Please go ahead.
Thank you, management. I have two small questions. The first is about the GP margin of the handset modules. In the first half of the year, there was a good growth. And you also mentioned that the changes of the customer structures and there is increased proportion of our Korean customers.
Can we understand in that way? In the future, once there is a bigger proportion of the module businesses, then will that contribute to a better margin compared with the domestic modules? About the ASP structure of modules and GPM, right? All right. So this year, we are very clear about the issues of the GP margins this year.
This is mainly related with the whole market and with the adjustment of our customer structures. And as time goes by, we had been increasing the shares of the new customers and also we will update the specifications of the modules in the future. And with these two factors, I believe that the AST will be improved for sure. And also it will help the improvement of the GP margin and the manufacturing systems with our efforts over the past few years will also be great. And we have a great production process and automated processes and a better yield, all of these has been improved.
And putting these factors together, we are very confident to improve the GP margin. Thank you. Thank you, management. And my second question is about the vehicle camera modules. We mentioned that the 18 megapixel front view modules already have won billions of some projects.
And for that project, based on the existing vehicle modules, we will further upgrade the offerings. And what is our advantages in the 8 megapixel modules? And what is our positionings in the Tier 1? So we can take a look at this issue from 2 perspectives. The first is the increased penetration rates of ADAS.
This is a big pull for us. It means we had been facing a quick surge of the demand. And previously, we had been developing the vehicle modules, but there are some emerging players. And those emerging needs have a very clear requirement. And we do have the capabilities that can flexibly and agilely meet their needs.
And this is a huge market potential for us. And with the increasement of the penetration rate, we still see the further release of the capacities of existing suppliers. And as for us, we do have the big background and expertise in this industry and the customers are very willing to collaborate with us. That's why I say we had been facing very promising market opportunities. And we do have seen the bigger demand from the market.
And we have a lot of customers, some come from the Tier 1s, some are the emerging new players. They will gradually become our customers. Thank you, management. Thank you, Mr. Liang.
Thank you, management for the answers. And next, let's welcome Jacob Lee. You have been unmuted. Please go ahead. Jacob?
Maybe the connection is poor. Let's switch to the next investor, Thierry Ma. Thierry, you have been unmuted. Please go ahead. Hello, management.
I have several questions to ask. The first, the R and D completion slide you mentioned about the VR optical module and there is a big customer in America. And are you making these R and Ds in preparation for that customer? And in the display assembly under the existing ODM, what are the differences? And why do we need to make such a combination?
This is
my first question. Okay. This is a very professional question. And the first question, can you repeat that? Sorry.
Okay. You mentioned that we have been developing the VR optical modules.
Okay.
Yes. In VR, we had been making some new R and D in preparation for the next generation products. Yes, you're right. And the second question, from the professional's perspective, we can use the fenial lens or the aspherical lens
plus
some of the ID solution. This is very complicated for the automatic alignment. We have to have very deep understandings of the optical systems. And all of these are based on our expertise in optical industries. And for our customers, they also believe that screen plus the lens will be regarded as a big module and then we can deliver it to the other OEM.
And then for the whole VR systems, we will improve the yields and the reliability. So this is a very natural selection for us and this is also based on expertise in optical industries and we have gained this customer and business with our own expertise. Okay. The second question is that we will have the ARO T chipsets. And for these chipsets, is it a platform based one or is it customized for certain products?
Well, because we are the 1st company who can develop such chip. So theoretically, in a very special specific area with a large quantity, then we will focus on the asset in terms of efficiency and economic considerations. And maybe the customers will also add together some of their own algorithms. So the first product we have is an SoC platform. In the future, once we have a very special application scenario with a large quantity, then we can develop Assika with certain customized functions.
We believe that our current strategy is very appropriate because if we directly go to the asset, maybe we want to have a deep understanding of certain application scenarios. Okay. My third question is about OpEx, Mr. Ma. And before we mentioned that the goal was 8% to 8.5%.
And in the first half, we had go beyond that target. And what about second half of the year? Okay. The answer is that we will increasingly invest in the OpEx and it will be maintained between 8% to 9%. Okay.
Sorry, I have a lot of questions. The next one is the vehicle related product. We have 8% and handsets related product is 80%. And can you share with us the proportion of the lens sets? Maybe you can have a calculation yourself, all right?
Okay. Thank you. Thank you, Cherry, and thank you for the management. Due to the interest of the time, we will invite the last investor to ask the question. Frank He, you have been unmuted.
Please go ahead. Thank you, management. I have a small question related with the waveguide product deployment. And can you share with us the defective wave guide? Do we have some special patents or do we have something differentiated from our peers?
Because for DOE, we may use some semiconductor processing solutions. And I'm not sure in the vertical integrations, to what extent had we developed to what depth had we developed? Can you give us more information about that? Thank you. And in the AR optical waveguide, we have been going towards 2 directions.
The first is to learn from the best players such as so we need to learn from the big players. And also the second is to have some special strength such as the development software of the optical waveguide. And together with the big players leading in industries, we had been developing that software. And also another expertise of this, but what I can tell you is that we need to do 2 things. The first is to learn from advantages players and to learn the lessons from their practices.
And the second is to set up our own know how and our own advantages such as the development software I had mentioned to you. And in Semiconductor Optical Industries, we have made a lot of investments. We didn't purchase EVU and DVU. As you know, in the whole process, it's very complicated. And as for RBIE, we will continue to acquire buy those equipments and we do have a heavy investment on that.
So this is about the semiconductor processing. And I have a follow-up question. Next year, will we expect some revenues from the electrical waveguides or is it on Santen?
The key is still for the R and D manufacturing process and the manufacturing capability of the template and also for the semiconductor equipment to utilize everything, actually require a lot of time from the team already. Understand. Thank you, Mr. Sun. Thank you, Frank.
Thank you, management's answer. Due to limited time, we cannot answer all the questions from the investors. So if you've got any questions, please do contact with the IR team. Thanks for your understanding. Ladies and gentlemen, this is the end of the Suriname optical 2020 results announcement.
Thank you. Thank you again for your participation in Trim results announcement.