By foot, and yeah, vertical solutions, so champion.
And.
Jito Sanka, thank you.
You.
Mobility solutions.
Now.
Mobility solution now vertical solution just in a way. Kung Sang Yong, the name Sangja, and Guan Shui, the way she can Zing.
But yet.
Ideal, Jenkana, the Asia tape.
Nunko.
Mobility.
Solutions, vertical solutions, mobility solutions, time, Justin, now again, Father, Fungshan, Hayo, Jasu, Sandai, now, Shangjiao.
This is.
Those who.
Don't tier one 30.
Shoulders Gan Tabia Tom in the Micro LED technology displays inside vertical solutions or general health solutions, smart enterprise and education, smart transportation solutions, China vertical solutions.
Yo, yo, David Chang with Yuanta Securities.
Example Shanghai.
Of China.
Mayo.
David, JJ display shoot.
D.
Song to be a Daisy Gongshi Ditongshi and that we are seeing in Guang Sui Wen T zone yo your teacher Naho say Shamba locally.
Ladies and gentlemen.
We will now begin the Q&A session to ensure equal opportunity for each participant.
Please remember to limit your number of questions to three per call.
State them all in one go.
Thank you.
We will now begin the question and answer session. If you would like to ask a question, please press the star key and number one on your telephone keypad. When your name is announced, you may begin to ask your question. If you wish to withdraw your question, please press the star key and number two to cancel.
Thank you.
Now first question will be coming from Randy Abrams, UBS. Go ahead please.
Yes, thank you. I wanted to ask the first question to follow up on your remarks on the display business. If you could run through the pull-in effect, how you believe that affected your first half channel shipment, perhaps higher it sounds like on notebook and IP, and how that may affect the second half outlook. Second part of that question is we may get some of the tariffs coming back on reciprocal or Section 232 tariffs. How do you view customers and channel prepared or expecting any sort of slowdown from those tariffs? That's the first two-part question.
I'll just ask the other question on the vertical business, if you could clarify the guidance including and excluding the ADLINK consolidation, and for that vertical segment, how you see the strength continuing where it's tracking well, but how you see second half ongoing just factoring we still have some macro and Eric uncertainty.
Hi Randy, I think the Paris issue, I think since our customers deal in the exam list, so for IT products, all in exam list, so far they still are quite confident this will continue. For the TV panel, all the brand customers have their production site in Mexico, so they all can meet the USMCA requirements. If the product meets the USMCA requirements, they can have zero tax. They are quite optimistic about this policy will remain.
So.
As I just mentioned, a lot of customers are waiting for the final result in August, and then they can plan more aggressive or clear promotion program in the second half. Before we know this final tariff result, our customer already pulling their demand and production plan in the first half. I believe in the second half the demand will be optimistic but will not like traditional passes and sales. That is my answer.
Thank you.
Randy, about the vertical.
Section and.
We are talking about exclude editing.
Right.
If we exclude ADLINK consolidation and we foresee the coming Q3, the Vertical Solution revenue will decline low to mid- single digits because of also impact by the exchange rate. However, if we reverse to the original exchange rate, we still see the vertical solution can keep the increase.
Yeah.
In low single digit and for two years.
Yeah.
If through the ADLINK we see the Vertical Solution, the whole year revenue compared with 2024 will increase low single digits.
Okay. Maybe just to follow up, the low single digit, it's a little bit below, maybe the target to expand that more aggressively. If you could recap a bit of the drag on the business this year. Thank you.
Thank you, Randy. I think yes. Original in February our target is 10% Y-o-Y revenue growth, and then because of the exchange rate, that's the reason why we now foresee forecast low single digit. If we use the original currency exchange rate, that still follow the original guidance.
Okay, great. Yeah, thanks for clarifying. Okay, thanks a lot, Amy.
Thank you. Citigroup. Karen Huang, GT1.
Dagger.
Okay.
Even.
Single digit.
Dan.
So your.
Ko.
Morgan Stanley child.