Good morning, good afternoon, everyone. Thank you for joining us today.

Before we move into this quarter's results, you may have already noticed the BMW vehicle featured on our cover slide. The BMW iX3 Flow edition unveiled by BMW Group at the 2026 Beijing Auto Show.

This vehicle basically integrates E Ink technology directly into the car body services, transforming the exterior from static design element into dynamic, expressive canvas. Then basically it demonstrates the production-ready status of BMW E Ink technology.

We will talk about more on this later. What I would like to highlight here is that this marks a very significant milestone for E Ink.

E-paper basically is steadily evolving from display interface into an intelligent, interactive surface material. Through the real-time changes in color, pattern, and information, E Ink enables objects to convey emotion, deliver personalization, and create entirely new modes of interaction between people and products.

Before we move to the first quarter financial highlights, let's take a quick look at the safe harbor statement. All right.

The first quarter consolidated revenue reached NT$8.63 billion, with operating profit NT$2.81 billion. Net income is NT$2.79 billion, and the associated EPS is NT$2.41.

Both revenue and earnings continued to grow this quarter, driven by improved product mix and steady overall demand. This quarter, sales revenue, operating profit, and even the net income all reached record highs for the same period in our history, reflecting the gradual results of our product strategy and market positioning.

Next page. Once again, this quarter revenue growth drove operating profit to NT$2.81 billion, with operating margin improving to 32.6%.

As noted previously, we continue to invest in R&D resources, talent development, because we believe future growth definitely will come from these two major elements: gradual creation of new applications, rather than any single product cycle. Research, innovation remain the foundation of our sustainable growth and long-term market expansion.

Next page. On the asset side, total assets grew from NT$93.6 billion in the first quarter last year, basically surpassed NT$100 billion in fourth quarter last year, and continued to expand steadily to NT$109.7 billion in the first quarter.

The increase is around NT$16.1 billion, 17.2% year-over-year. Basically, this increase was primarily driven by continued profitability, operating cash flow, prudent financial investments, and, of course, portfolio activities, as well as capacity expansion to support business growth.

For cash flow, the first quarter, our cash and financial assets continued to grow, reaching a total of NT$71.9 billion, supported by stable profitability and solid cash flow. Backed by a strong cash position, we continue to invest in capital expenditures to support future market demand and growth momentum.

Next page. This page explained that color e-paper demonstrated strong growth momentum this quarter.

Shipment area for Spectra 6, which is the signage color, has officially surpassed that of black-and-white CE and e-Note applications, signaling a clear shift in our favorable product mix. Spectra 6 materials and modules are basically supplied to different customers based on specific applications and product requirements.

As color signage applications continue to expand rapidly, their contribution to both revenue, gross margin have been steadily increasing, further enhancing our profitability. At the same time, we are seeing sustained demand for low-power color display across retail, transportation, public spaces, which is driving further expansion of digital signage market.

Next page. On this slide, we would like to highlight the continue expansion of e-paper in large-format signage applications.

From the screen, as you can see, enterprises, different companies are adopting e-paper signage not only for energy saving, but also enhance information management efficiency. In upper left, Agile Display Solutions provide middleware platform that automatically converts images and videos into formats optimized by e-paper display.

This basically enables seamless integration with existing CMS workflows, offering a user experience comparable to managing traditional LCD or LED display networks, while significantly lowering the barrier to large-scale deployments. On the lower left, Avalue Display Plus, Echo Retail solution combines full-color e-paper display with electronic shelf labels, through clouds or mobile app-based management, basically streamline content updates and store operations, further driving retail environments toward low-power and paperless operations.

Upper right, Sharp's e-Poster has gained broader adoption in the Japan market. Lower right, Samsung basically has also introduced its color e-paper, supporting multiple display sizes and remote content management, making it easier for enterprises to transition from paper-based to digital signage.

All right. As I noted earlier in the cover slide, the BMW iX3 Flow edition demonstrates that e-paper can be fully integrated into the vehicle body rather than just simply applied as a surface film.

It's very important milestone for E Ink. Automotive-grade validation confirms our e-paper durability, reliability, and readiness for mass production, opening up the opportunity across automotive, retail, and smart city applications.

The opportunity for e-paper is expanding beyond screens to a wider range of surfaces. From walls, vehicle to everyday objects, virtually any surface has the potential to become an intelligent medium for information.

We basically see this as quiet, ambient revolution, one where every surface can communicate naturally with near-zero power consumption. This is not merely an evolution of display technology, but a fundamental shift in how information interacts with our environment.

As we shared at the beginning in the cover slide, we are transforming from a display company into a smart surface technology company. To close this slide, I would like to share a short video clip of the BMW iX3 Flow.

All right. To the next page.

Following just on the BMW example we just shared, we see e-paper evolving from traditional display devices into various types of smart surfaces, gradually integrating into more everyday and personal applications. Beyond the continued penetration in retail, e-paper is also expanding into a broader range of daily and personal devices, including the one we just showed, automotive interiors, mobile devices, and even healthcare applications.

Across these areas, ecosystem partners continue to introduce new products, further building ecosystem momentums. From the screen, right in the upper middle is in automotive, e-paper basically extending from exterior surfaces from vehicle interiors.

Through collaboration with material and system partner, it can now be embedded directly into interior materials, enabling greater design flexibility. Right in the center, in mobile, Tecno mobile showcased an AI smart phone featuring color e-paper at this year's MWC, integrating e-paper into back cover for dynamic personalization, even this product remains at POC stage.

The lower middle, in mobility applications, partners introduce the new generation e-paper display this quarter with continued improvements in performance and refresh rates, delivering a more comfortable, eye-friendly experience. Last but not least, in the upper right, in healthcare and daily use scenarios, with partners with Shin Kong Hospital locally in Taiwan to apply e-paper in patient information cards, ID badges, and menus, offering convenience through real-time updates and near-zero power consumptions.

As e-paper applications continue to expand, as we just explained, our capacity is to definitely grow with them, but in a more disciplined way. E Ink Hsinchu expansion will serve as a key manufacturing base for large-format e-paper targeting signage and outdoor, out-of-home, and smart retail applications.

This project involved practically NT$5 billion of investments, including utility facility, warehouse, and supporting infrastructures. While existing building will also be renovated to accelerate production line setup and mass production readiness, basically the Phase 1 construction expected to be completed by second quarter of 2027, with large-format e-paper products entering mass production in 2028.

This important expansion project basically reflects E Ink's long-term confidence in large-format e-paper, ultra-low-power display, and the growing OOH opportunities in the AI era. We also actively engage with our ecosystem partners across major global exhibition to expand the reach of and the application of e-paper technologies.

For example, NRF this year with partner to showcase how color e-paper is transforming retail from shelf edge labels to large-format signage, delivering vivid visuals with ultra-low power, and same scenario for the ISE exhibition and also for drupa 2026. We worked with different partners to present our latest technologies and applications across industries, reinforcing our role in driving innovation in electronic papers.

Would like to spend few minutes to talk about the global sustainability leadership and recognition. We have successfully obtained ISO 46001 certification in Taiwan, basically completing the final piece of our environmental management systems.

Also for the S&P Global, we achieved a very good score of 93, ranking first in the Electronic Equipment, Instruments & Components industry for the second consecutive year and setting a new industry record. This also placed us, E Ink, among top 1% companies worldwide in the 2026 Sustainability Yearbook.

We also achieved LSEG sustainability rating of 3.9 out of 5, ranking in the 98th percentile global within our industry. Just this week, we received another positive recognition from Taiwan Ratings, with this Taiwan long-term credit rating upgrading from twA- to twA.

Basically, this rating noted that E Ink has continued to deliver revenue and EBITDA growth while maintaining solid profitability, healthy cash flow, and stable capital structure, reflecting the continued improvements in the company's operating fundamentals. Next month, June, this year at COMPUTEX, E Ink will collaborate with 40 ecosystem partners to establish a dedicated e-paper industry zone at Taipei Nangang Exhibition Center Hall 1.

Basically, this zone will showcase the full e-paper ecosystem, covering materials, display technologies, key components, as well as system integration and end-application solutions. It will present a comprehensive view of e-paper value chain and provide one-stop platform for massive global customers and partners.

We sincerely welcome you to visit and engage with us at such event. Last but not least, we would like to share a thought.

As AI reaches into every device and every space, information becomes everywhere, does the demand for power, and energy efficiency has never mattered more. The world ahead doesn't just need more screen, it needs more surfaces that can carry information without consuming energy.

That is exactly what E Ink delivers. E Ink is evolving from a display company into a smart surface technology company.

This is what we always stand for. As you can see from our screen, we make surfaces smart and green.

Thank you. We can move to the Q&A session.

Hi management team. Thank you for taking my question.

Congrats again on very impressive growth this quarter. We would like to ask about the 2026 quarterly revenue trend.

Can we expect the quarterly revenue to go upward trend quarter-on-quarter this year?

Hello, Josie. Nice to hear you speak again.

I think we're expecting Q2 to be better than Q1, Q3 to better than Q2, Q4 will be lower than Q3. That's roughly the trend we're looking at.

Yeah. Thank you.

Very clear. Regarding the ESL, we are very happy to hear that even though Walmart contract is coming to an end, but company is still confident in deliver long-term growth.

We're just wondering from this ESL growth, is it mainly from traditional small tag ESL or it is from signage? If we look at the combination of 20 to 30% growth, what is the growth for each of these two sub-segments that you are seeing?

Josie, that's a great question. I think for ESL, the growth is coming from US, right?

After the W company, the top 10 retailers are all looking to install price tags and the sizes are usually bigger than what Walmart is using. That's really good news for us.

As we move to Spectra 6, where you could put on ads, you could put on product information, the size gets bigger. Those are usually four, 4x6 inch and above.

We're expecting that part of the business to grow. In terms of what is that outlook, I think it's hard to say at this moment.

I think ESL is still the mainstream, and then there's additional volume with retail signage coming into this play. That's the situation we're seeing.

Also in Europe, we're seeing a replacement cycle that's happening. Most of them are still using three-color and black-and-white, and they're moving to either the next-generation platform, which can offer them better quality, more color, and also bigger sizes, too.

Whatever they have installed 10 years ago or 5 years ago, the prices today are more competitive than what it was back then. It makes a lot of sense for them to replace it with the latest tag.

We're also seeing growth in UK. UK has been hit pretty hard with labor shortage, and it's about time that they start installing these tags, and we're seeing a lot of demand coming from UK as well.

I think that's good news. All of them wish to use Spectra 6 for the ESL, but I don't think at this moment it's the right solution, because four-color is still the best quality out there.

Spectra 6, we want to focus more on the larger sizes. That's where we're at.

I see. Is it okay or kind of fair for us to maybe in our model to assume small tags, traditional ESL to grow still by around say 10 to 15%, and a lot of incremental growth coming from the signage?

Do you think this is kind of in line with the trajectory of the market that you're seeing?

We're really looking at 20 to 25% growth from the ESL side.

I see. This is a combination of small tags and also signage, is that correct?

No, it's mostly from the small size.

Okay. It'd be

from the small size. We call it Spectra 3100, that's where the four-color FPL that we sell.

We're seeing roughly 20 to 25% growth rate in that segment. Spectra 6, which we think is more about signage, more about ads or information boards, those are more Spectra 6, we consider that more on the signage side.

I see. Very clear.

In terms of the signage mix, is it low single-digit or high single-digit of total revenue, or is there any related information to share would be much appreciated. Thank you.

Josie, I think earlier in the Chinese version, we talked about overall E Ink is going to grow roughly 20 to 25% in terms of revenue. The market breakdown is really single-digit to maybe 10% in eReader/eNote side, which is our consumer product base.

We were expecting a higher growth, but because of the effect on the memory, which really impact the lower-cost version of eReader and eNote. We're seeing roughly single-digit to 10% growth rate in that segment.

Even with the memory prices, we're still seeing that growth, and we think it's because of the transition from black-and-white to color. The demand is there, and it helps drive that.

Also new technology, right? If you look at our latest black-and-white, it's a lot faster, it's a lot zippier, they call it zippier, quicker update, they like the user experience a lot.

It's whiter, too, and better contrast ratio. Overall, even on the eReader/eNote side, yesterday, there was a launch by reMarkable, launching their lower-price eNote device, I think it's at $399, if I remember correctly.

You could see that whiteness out of the E Ink black-and-white FPL. We're taking that to the next level.

We're seeing single-digit growth there. For ESL, we're seeing roughly 20 to 25% growth.

If overall we're growing at 20 to 25, the rest of that make-up to offset that 10% or more that's missing from the eReader side, it's coming from the signage that helps offset that growth rate. Yeah.

That's roughly the make-up of our business situation.

I see. Thank you for the color.

I'll go back to the queue. Thank you.

Thank you.

Great. Thank you.

Thanks, management. Thanks for your time.

This is very insightful. Could you just remind us what the margin mix is between eReader and ESL and how that's going to be affected with that different split in revenue growth this year, and how you see that adjusting longer term?

For when we sell modules, which is mostly on the consumer side, the gross margin's a bit lower, and we sell on the material side, it's higher. Because of what's happening with semiconductor this year, there's a price increase on the driver IC chips for the module, and that's really hurting the gross profit or gross margin on the module side.

On the material side, we're also getting hit because of a higher oil price on the base material side like PET and things like that. That's kind of offset by better yield on our next-generation FPL lines, which is H5.

That kind of offsets that and really improves our gross profit and overall. Yeah.

It's a neutral impact overall? Yeah.

There's higher material costs, but then you kind of offset that with higher yield. Because we're just ramping up H5, we've been trying to get that to go up to higher yield.

As that yield improves, the gross margin improves.

So. Right.

Thank you.

Right.

Alan, your line is open.

Oh, yeah. Hi, Johnson, Lloyd, and Winnie.

Good afternoon. I want to follow up cuz Johnson mentioned that this year, Q2 better than Q1, Q3 better than Q2, and Q4 is slightly lower than Q3.

Does Johnson mean that it's a top line or it's a bottom line? This is my first question.

Or both,

yeah. Q4 is usually our our is is usually where our revenue is at the lowest.

Usually Q4, oh, sorry, Q4 and Q1 is usually the lowest that we we've seen for the past years. The peak season last year was at Q2, but usually the peak season is at Q3, and we're we're seeing that that momentum shifting back to what it used to be.

Last year was was a little different because there's a there's a pull-in because of I think it was tariff, I can't remember correctly, yeah, it was tariffs, right, and and people are pulling their material in advance. Q2 last year was like record high, and and and that was that was great for us.

What we're really talking about is revenue, right? If you were to look at our our product mix, during the Chinese version, we talked about how we had our our module facility has been sold out for past 2, 3 years already, 2 years.

Whatever growth we're getting is really coming from the material side. We're not expanding our module facility.

We're trying to make it more efficient, we might squeeze a few units out of the existing capacity. Really it's it's quite limited.

Most of the growth is coming from the material side. That kind of that kind of helped us on the the gross margin side as well.

Got it. Thanks, Johnson.

My next question is about, in the Chinese session, you say the company is expecting 20 to 30% growth in the foreseeable future. In the last call in March, you also mentioned you expect 26 year, year '26 better than 20, '27 will better than '26, and '28 will better than 26, 27.

Do you think that's still valid? Can we assume the company will receive 20 to 30% growth in the coming years?

How far can you see now?

Alan, that's a really hard question. We expect next year to be better than this year.

In terms of that growth rate, you probably need more time to study, because last year, right, if we were to look at this, from last year, we're looking at this year, we think we're going to have more than 30% growth. Why?

Because we expect 20 to 25% growth in eReader/eNote as we transition to color. Because of the memory situation, right, it really hurt that growth rate, and we're seeing single-digit today.

Whatever that's happening in the world right now, it's a bit hard to predict exactly how we were going to grow. We kind of offset that because of the growth rate from the signage side.

We're expecting growth in 2027, and we're expecting 2028 to be better than 2027. At this moment, we really can't pinpoint what that growth rate will look like.

For ESL, we're expecting 20 to 30% growth year-to-year, and that's the outlook on the ESL side. That's a market that we have more confidence in.

eReader side, eNote side, we think it should grow, but whatever that's happening with the semiconductor, it's just hard to predict, right? People are talking about shortages of memory until 2027 now.

They were talking about end of 2026, but who knows? Signage, we don't really depend on memory, right?

That's a good thing. We're expecting growth on these two side that we have more confidence in.

On the eReader/eNote side, I think memory will play a big role in it.

Got it. Very clear.

Thanks, Johnson. I have a last question.

Cuz now we are in the AI trend now. Can you give me some example, how E Ink benefit from this AI trend?

I think there's a couple things. First, you have to look from the customer side, how you could integrate AI into their product to make it more sexy or more attractive.

For ESL, if you could leverage AI, you could do really good dynamic pricing, I think. You would know that, for example, if it rains outside, what are the product that sells better when it rains, right?

Then you could do promotions on that, and that would drive more sales, and which will make the retailer more willing to use price tags and also signage products. That's good for us.

On the eReader and eNote side, it's about leveraging AI for self-improvement. A lot of people read because they want to learn, right?

A lot of people use eNote because it helps them think and remember, and also do creative work. How do you leverage that AI into that product and make that experience seamless?

I think that would also help the product to grow. Especially E Ink is continue improving color, speed, cost, everything, right?

You should expect better product out of E Ink on a yearly basis. We're going to make better and better product every year.

We expect, yeah, with AI, tied with our product, it's going to help the product to grow. On the operational side, people are talking about digital twin, how you leverage AI so your production could be more competitive, let's put it that way, and efficient, right?

You could leverage that across the whole organization from your back end, from finance, HR, to legal, you name it, right? How do you leverage AI to make your organization more competitive?

I think at this moment, there's more and more trial and error in the organization. We expect that, and we want our people to try and error on leveraging AI.

Security is always a big thing. How do you protect corporate know-how in the AI world?

I think that's something our IT team is working hard on. How do you leverage AI in R&D?

How do you leverage AI to make your R&D more competitive, faster? Those are things we're also exploring as well.

That's our overall take on AI, is how do you leverage AI to make the organization more competitive, more effective at the same time? How is AI going to be used into products that use E Ink to make it more attractive?

That's another part as well. Alan?

Thanks, Johnson. Very clear.

Thank you so much.

Thank you.

Thank you very much for your time. I have a couple of questions and apologies I can't speak Chinese so I didn't attend the Chinese call.

But 20 to 25% growth that you talked about for overall revenue, 20 to 25%, that's for this year, is that right? Or that's just a

Yeah, 20 to 25% growth is for this year.

For this year for the overall company with ESL

across

industry. Got it.

Thank you for that. Then the other thing I wanted to ask you, right, it's more on a forecastability perspective.

Because when you guys say you're quite confident about ESL, you're a bit more uncertain on consumer electronics, but ESL you're quite relaxed, I want to sort of zoom in on this relaxed feeling. You guys rely obviously on system integrators guidance, maybe the Hon Hais of this world who order from you in between you and Vusion and SoluM, etc.

I think that's the main one. Do you also sort of cross-check what these guys are telling you with end retailers?

Do you have a sense of who's rolling out when, whether it's in Europe, in the US? I'm just curious how you build these forecasts and what kind of information you sort of cross-check

to

factor if you're relaxed about it.

Thank you for that question. I think that's a great question.

From the business side, what we do is that definitely we'll cross-check with the retailer. We probably know most of the bigger retailers who's going to do the rollout.

We have teams to really try to understand that. At the same time, we cross-check with the whole supply chain, or we call it ecosystem, from the system integrators to modules to IC vendors to TFT vendors, and to make sure that the information we're getting is correct.

The worst is a double-booking,

right?

That's a part we really try to understand, and so we won't, yeah, less of a double-booking situation.

Also,

if you look at ESL, I think one thing that's really good is that they actually have order intake. If you look at their financials, they talk about order intake, how that order intake looks down their pipeline, and it helps their supply chain prepare how many build they need for the module side, for the device assembly side, and different things like that.

I think that's so you have a better visibility, you have a better understanding of how that market will do.

Right. With all this information that you're getting, you're not too worried about, if I can call it, the Walmart cliff?

Because

that's what the

market is

worried about, is

a cliff. We talked about that in the Chinese version, right?

If you look at Walmart last year, our growth rate is quite limited, right? Why?

Because if you look at Vusion's financial statement, they're growing 60 to 70%, but we're not. Why is that?

Because the price tag used at Walmart is 1.49, I think it's 1.49. It's quite small, right?

The average price tag is 2.6 or 2.1 or 2.9. It's basically half the size of what most people use for price tag.

What E Ink sells majority is material on the ESL side, and our business depend on meter square. How many meters has been used, or how many feet has been used.

Walmart, those small sizes is not that attractive for E Ink. The other retailers who's using bigger displays, that will really help our P&L.

We sell by size. That's the situation what we're looking at.

If you look at what's going to happen after Walmart, I think Walmart Mexico just announced they're going to start installing as well. Then you hear that the top 10 retailers in US is looking into installation.

You look at UK, the shortage of labor, they're all looking to install. They've already done their POC, they love it, and just can't wait to get it done.

Even in Taiwan, if you look at Taiwan, where labor price is fairly cheap, people are talking about installing them. A lot of them want to install them.

The good thing about Europe is that I think the first major rollout was in 20 2016, and the replacement cycle is coming. Most of them are black-and-white or three-color, and today we're at four-color, or you could do multiple color price tags.

The price is better, the quality is better, color consistency is better, everything's better. Why not use the latest and greatest?

We think that there's that replacement cycle that's happening as well. I think ESL is a good business for E Ink.

Cool. Very very insightful.

Can I squeeze one more on signage? How much is it as percentage of revenue this quarter or this year, or what are you expecting?

If you do that math, if eReader is only growing 10% or less, and then ESL is growing 20 to 25, and our overall is growing at 20 to 25, and eReader and eNote takes up half of our revenue, the rest is make up by signage. You could do the math and you know exactly that number.

Fair enough.

Because

when we talk to system integrators, or maybe they don't tell us everything, but it doesn't seem like there is a lot of traction from retailers on the signage side of things. It's mostly small ESLs rather than big signage.

When I hear you guys being quite bullish and actually put capex behind signage for the next few years, are you seeing traction outside of retailers or

No, yeah. I think it's how they define signage, right?

If they, I think there's two types of signage in retail. One is they call it retail media, where basically those players that they buy digital displays, or they can buy E Ink, they can buy LCD, or they can put in paper, and they place them into the retail store and they go out and get ads, and they split that profit with the retailer.

That's one type of retail media people are seeing. The second type is the retailer themselves buying full-color E Ink displays, and they use it for bigger promotion signs, on sale or sale $5.99, regular price of $8.99, with product description on it.

Those are a little different. There's multiple players going after that market.

You have Samsung, you have Sharp, you have our traditional system integrators going after that market, and also in different retail shops, right? It's a little different, yeah.

The

Samsung would go straight to Walmart and try to bypass the system integrator?

They don't need the integrators, right? Why do they need the integrators?

Right. Interesting.

All right, thank you very much.

There's just more people going after this market, right? It's a much bigger market.

When we talk about signage, right, there's an indoor type, you could use in transportation, you could use for retail, you could use for hospitals, or even outdoor, right? There's multiple types of signage out there.

Interesting. Thank you very much, Johnson.

I'll go back in the queue. Thank you.

Hi there. Can you hear me?

Yes, I can. Thank you.

Great. Thanks the presentation, very insightful.

I just didn't quite get the point you made on Walmart earlier in terms of how substantial is it as a percent of your ESL revenues, if you can give a range, and how much has it grown this year just so we kind of understand what the starting point is, and would that end next year? Just some kind of a rough

map Just to give you an example, right, there's a German retailer, one of the large German retailer. The meter square they use for price tag is the same as Walmart.

Walmart may have 500 500 million tags, but the size of that price tag, it's small. It's not that attractive for E Ink.

Some of the smaller retailer, they use a bigger sign, that's more attractive for E Ink. Hmm.

I sell materials. I don't sell finished price tags, right?

Those are the system integrators.

If you look at Sorry, go ahead, please.

If you look at Vusion last year, they're growing what, 60%, 70%. Those are small units, right?

Then units, every price tag may cost $3, and then you times that by, I don't know if it's $3 or whatever that dollar value is, right. You times that over 100 million, that's a lot of revenue.

Then

it doesn't mean a lot for E Ink, because it's small.

Right.

Right. We need size to really grow.

No, I get that. Just because the biggest concern in the market is this whole Walmart cliff, it would be great if you could just tell us sort of how big Walmart is as a percentage of your revenues or percent of ESL revenues, and sort of does that end next year?

Is this the last year of Walmart-related revenues?

We're not really worried about that, because if you look at the top 10 US retailer, they're all looking into installing shelf labels, and the sizes are all bigger than what Walmart use, right? Even Walmart has 500 million, the sizes they use, maybe one of them will be equal to the size of Walmart, just one of them, any of them.

Walmart helps trigger the adoption of ESL in the US market, and we're seeing a lot of bids that's happening, and that's great for us. We also think that after shelf labels, retail signage is going to come for the ones that have installed price tags.

That's the next step. One after another.

It doesn't end with just shelf labels.

Right. Just to be clear, Walmart revenues end this year for E Ink?

Not necessary. It's Walmart USA ends with E Ink.

Walmart USA, to be clear, yes.

For price tags, right? There's also signage, right?

There's

a lot of signage, price signage at Walmart, and

yeah,

and everything's going to be digital.

Roughly what percent of the ESL revenues would Walmart USA price tags be for 2026?

That's a good question. We haven't really done the math.

It's part of it, but I don't think it's significant. I need to get back to you on that.

I don't know the exact number.

It would be great if we could maybe correspond over email about this.

Okay. We'll have to figure out.

We haven't pay close attention to that, yeah.

Got it. Excellent.

Thank you so much.

All right.

Hello. Could you hear me?

Yes, Kenny, we can hear you.

Hey. Hi, Johnson, Lloyd, Winnie, and perhaps Patrick, too.

Thanks for taking my question. I have two.

Probably the first one, I'm following up on the so-called Walmart cliff. Honestly, I'm wondering if this may be a good news for you, because going forward, you may have probably more diversified clientele, and perhaps because Walmart is [unclear] to you as a single diversification, maybe provide perhaps your bargaining power or your gross margin for those non-Walmart customers going forward.

Kenny, I think E Ink is at a position where pricing is not really a main issue. Again, we sell meter square, right?

We sell film, right, to our module partners. It's based on meter square, how many meters they use.

I was just explaining how a Walmart Walmart business situations, total 500 million tags that Walmart needs, it's equal to a German retailer who wants to install price tags in their stores. Their store is a lot smaller than their stores, less items, but in terms of meter square is about the same.

That gives you a sense that does Walmart Walmart is part of that it helps on the business side, but we're not worried about the Walmart cliff at all.

Sure. Thanks.

Just one follow-up on the signage part. I kind of remembered last year you guys were talking about some delayed for some authority or government projects, right?

I just did the math, probably signage could be high single-digit percentage of total sales this year. It's really a good improvement from last year's low base.

Perhaps is it from the delayed projects or you're kind of surprised by incremental demand here in this year, and could you really digest the backlog here, or the momentum could [continue?] the next year?

If you look at E Ink signs, in terms of the area shipment, we actually sell more Spectra 6 today than we sell our black-and-white in terms of meter square. That says something.

Where's it coming from? It's coming from 32-inch, 13-inch, 10-inch, 8-inch, and there's a lot of these sizes.

I can't remember all of them. 40-inch.

They're all coming from all these different signs that's happening. Some of them are like digital photo frames, a part of that.

A lot of them are actually just signs used in transportation, in hospitals, in retail stores of different verticals. If you look at the price of E Ink signs, they're today maybe 2x of an LCD as a finished product.

We think that if we could get that price to be close to an LCD, the volume will be a lot bigger, and that's the customer response we're getting. Of course they want better color, but the number one item is if we can get our price to be close to an LCD, the volume could be huge.

I think it's possible, right? If you look at what we could do with H5, and then we have H6 that's coming, our goal is to maintain our margin and help and get that large 30-inch, 32-inch, 40-inch display to be same price as an LCD.

There's no reason why we can't do it. If you look at a structure of an LCD, it's a TFT, liquid crystal, color filter with two polarizer, a backlight, an FPC, and an IC.

E Ink is just TFT with E Ink foil and a protection sheet with IC and an FPC. The structure's a lot less.

There's no reason why we couldn't get it to the same price like an LCD. Once we do that, I think the volume will be a lot bigger than what you're seeing today.

I

see. That makes it very helpful.

Sorry, one last question. Because I wasn't able to join the Mandarin session, did you guys talk about the CE and IoT sales mix percentage?

We kind of just break that out, right, with ESL and then signage, right? There is some for other IoT products, but it's a small part of it, we just kind of include that part of it.

Oh, yeah, thanks. The CE and IoT percentage first quarter.

Did we break that out? I don't think we broke that out.

Lloyd, for you? Do we break that out, Lloyd?

Kenny, I think right after today, we're going to release our first quarter financials officially, you definitely can find the percentage there. All right?

Can I get you to check it out after? After.

Perfect. Or,

Lloyd, you could just give it to them right here. They're going to see it anyway, right?

Right. I believe for the IoT, majority is ESL, around 55%, yeah, and the CE is around 45%, around this range, yeah.

That's very helpful.

Basically, material sales is relatively higher, yeah, in first quarter, yeah.

Appreciate it.

All right. We notice quite a few online questions.

I believe most of them has been answered by Johnson. There's a particular one, I think it's worthwhile to be brought up.

The question is about how are we thinking about the organization in terms of management, divisional layers to ensure each product category has the right focus? For example, ESL has been around a while, but global penetration remain low, still a huge opportunity, and digital signage is a new category, but seems like the opportunity even wider.

How do we ensure we have the right resources and talent to be commercially successful?

Ben, I think that's a great question. We always look at how we can tune our organization so it can help us better grow the company.

I think we kind of underestimated how long it takes for that design win to happen initially, and it took us a while, and it also took us a while to build that ecosystem to support it. I think the opportunity is there.

We need to do a better job selling it, we need to do a better job working with our partner to promote our technology into the marketplace. There's still a lot of people who doesn't know about E Ink and what E Ink can do.

Maybe sometimes when we talk to them, they're like, 'Oh, wow, your display don't need power. I could use this in many places.'

It just really surprise them that E Ink only consumes power when you update, and then they look at our display, it says, 'It looks like paper. How do you do it?'

I think educating the market is super important. We need to do a better job doing that.

I think you're right. I think there's many things within the organization we need to work at, right?

Lower cost, better quality, faster turnaround, better job marketing the product. There's just endless things we could work on.

Yeah.

All right. Thank you, everyone, and thank you for your participation.

We are looking forward to talking to you again in the second quarter. Thank you very much, and thank you, Johnson, for your help.

Thank you. All right.

Thanks. Bye.

Bye-bye.