Over the past year, artificial intelligence applications have been flourishing, with breakthroughs in language and image large models, multimodal capabilities, embodied intelligence, and other technologies, illuminating the future. Industries across the board are actively embracing this revolutionary force. Whether it's Apple and Tesla building "Factory ULTRA," Foxconn pursuing intelligence and sustainability at the Lighthouse Factory, or CATL challenging the limits of manufacturing, all are practicing and exploring new ideas and directions in industrial artificial intelligence with AI, paving the way for the future of their respective industries.

The release of OpenAI's Sora and the introduction of the World Model by Ms. Fei-Fei Li have propelled the rapid development of 2D, 3D, and multi-dimensional visual and AI technologies, fueling the transition of cultural metaverses from concept to reality. People are actively creating magnificent worlds, with various applications springing up like mushrooms after the rain, greatly enriching and expanding our cultural experiences and sparking boundless creativity.

In this wave, all employees of LUSTER are working hard, persisting in the path of "Vision + AI," making continuous strategic investments, solidifying the technological foundation of products, agilely responding to various challenges, collectively implementing the idea of implanting eyes and brains into machines, and fulfilling the enterprise mission of creating and realizing customer dreams. Within the 3C customer workshop, LUSTER's vision systems and equipment flawlessly detect touch glass components, ensuring thousands of components smoothly enter the next stage of assembly for top-tier smartphone brands, delivering consumers a flawless shooting technology experience. On the lithium battery and photovoltaic production lines, LUSTER's vision devices and systems ensure no defects from separator and electrode to finished products, guaranteeing efficient and stable production. In a flexible packaging printing factory on the outskirts of Bangkok, quality control workers easily identify issues marked by LUSTER's PackHERO inspection system on screens, bidding farewell to the fatigue of manual visual inspection of insect flaws and experiencing the convenience of "vision + AI" technology. At the live broadcast of the CCTV Spring Festival Gala, LUSTER's spatial positioning and virtual reality fusion technology reenacts the digital Li Bai reciting "Toasting the Guests," presenting a visually and audibly stunning feast pulsating with the spirit of the times.

Over the past year, LUSTER has served over 20,000 customers in 55 countries through more than ten branches worldwide. From intelligent vision devices, systems, to equipment, LUSTER has shipped over 24,000 sets, released 17 new products, applied for 128 patents, obtained 180 authorized patents, and secured 22 software copyrights. The company has applied for a total of 1661 patents and obtained 816 authorized patents.

On this New Year's occasion, the management team of LUSTER extends heartfelt thanks to all the customers, partners, and friends from all sectors of society who have trusted and supported us. It is our honor to walk alongside you! We salute all LUSTER employees, fighters, and contributors, and express sincere gratitude and condolences to the vast number of employees' families who silently support LUSTER behind the scenes!

Empowering AI-Driven Transformation Across Various Industries

In consumer electronics, we have successfully increased our market share with top brands. Our VisionGLUE system has boosted wearables manufacturing with 0.03mm precision. In display sector, we have provided micrometer-level quality inspection solutions for top cover glass makers, tackling quality inspection labor shortages and standards. We have also helped global VR/AR leaders produce headsets.

In lithium battery and photovoltaic, we've established strategic partnerships with global industry leaders to develop an integrated solution of "F.Brain+GMQM+AOI". This approach not only enhances quality and efficiency while reducing costs through coordinated efforts in manual, visual, and cognitive tasks, but also enables traceability and improvement of defective processes. Furthermore, it will empower our clients to build a cloud-edge-device collaborative global quality management system, ensuring consistency and reliability in inspections across countries, factories, and equipment.

In printing and packaging, we have strived to expand into both international and domestic markets for flexible packaging, labels, and cartons, achieved new breakthroughs in book and publishing sectors, and aided Yi Yao Printing to double efficiency with the industry's first smart pharmaceutical packaging factory.

In stereoscopic vision, our FZMotion solution has tracked over 200 rigid bodies with 0.02mm accuracy in large spaces. Additionally, our InFusion xR system has been used at major media centers, including Beijing's Central Radio and Television Station and the Guangdong-Hong Kong-Macao Greater Bay Area's Ultra HD Smart Creative Industrial Park.

In fiber optics, we are fully promoting the OCS all-optical switching solution, whose features of low power consumption, low latency, and ultra-high reliability accelerate the development of AI computing power. Additionally, we have established a strategic partnership with Vanguard to drive the development of advanced photonic integrated chip packaging technology in China. Furthermore, we have made significant progress in 400G/800G optical module testing, facilitating mass production for our clients.

Driving Global Expansion in Overseas Business

Over the past three years, LUSTER's overseas business has seen continuous rapid growth, with a compound annual growth rate of 40.6%. In 2024, we achieved breakthroughs in new markets across several business lines: we have successfully delivered thousands of specialized vision-guided and inspection systems to international clients in Vietnam and Thailand, earning high recognition; the output value of our lithium battery and photovoltaic products has multiplied in North American and Asian markets; our printing and packaging division has entered new markets such as Poland, Bulgaria, Spain, and Turkey, with intelligent printing factory solutions being implemented in Vietnam; and our 3D vision Human3D+ human body reconstruction system has served Qualcomm in the U.S., enabling the rapid reconstruction of mm-level high-precision 3D models of humans and objects.

To enhance our global business layout and serve international clients with higher quality, we have established subsidiaries in Singapore and Malaysia and strategically acquired the historic Danish camera manufacturer JAI. This has refined our high-end machine vision product suite, energized our global business growth, and greatly enhanced our capacity to deliver targeted, efficient solutions and localized services to markets in Europe, North America, Japan, and Southeast Asia.

Additionally, we have actively participated in major trade shows such as drupa 2024, Thailand's Propak packaging exhibition, Indonesia's plastics and rubber exhibition, and Germany's Vision fair in Stuttgart. We also hosted the inaugural Road to China technical conference at drupa, further enhancing the global impact of China's printing industry.

Striving to Forge Our Own Path in Artificial Intelligence

Imaging technology is pivotal to AI, the critical challenge in AI is the practical application of image technology, which demands technical excellence and practical implementation. LUSTER continues to strategically invest in AI software and large-scale industrial models based on imaging, steadfastly pursuing our "AI + Vision" path, and has achieved notable success in theoretical frontiers, industry applications, and collaborative innovation.

In September, at the ECCV2024 Industrial Quality Inspection Challenge, LUSTER has secured first place in the 'Single-Instance Industrial Defect Segmentation' competition. In another significant achievement, the research outcome of 'Self-Tuning SAM for Controllable Anomaly Segmentation through Self-Perception,' a collaboration between LUSTER and Tsinghua University, has been successfully selected for presentation at the prestigious AAAI2025 conference in artificial intelligence.

Last year, LUSTER's deep learning platform, F.Brain, has undergone a comprehensive upgrade, enhancing its versatility across various industries for detecting minor defects. Integrated with the GMQM intelligent production quality management system, it has achieved closed-loop control of manufacturing data and quality analysis, successfully serving leading photovoltaic cell companies in over 10 projects. Furthermore, LUSTER has also created specialized models for 3C, lithium battery, and glass appearance, achieving less than 0.1% defect miss rate and 0.01% false positive rate for top clients.

Additionally, we have partnered with Foxconn and others to establish the Zhongyuan Research Institute, tackling challenges in production line automation and advancing smart manufacturing and industry upgrades. We have also collaborated with ZhiPu AI to create the first AI-driven live broadcasting solution powered by domestic large models like GLM, serving over 1,000 brand clients including Haier, Hisense, and Xiaomi.

Uniting Collective Strength to Achieve Extraordinary Feats

At LUSTER, we prioritize the growth of human capital over financial capital. Over the past year, we've focused on building organizational and human resources aligned with our strategy for major clients and products. We've clarified roles across front, middle, and back offices, implemented job evaluations for all staff, initiated leadership development programs, and enhanced training for new employees to boost operational effectiveness. We've also improved our compensation system based on business performance, injecting new vitality into our management quality and organizational dynamism for years to come.

In 2024, we have intensified our information technology infrastructure, launching the T-House AI platform and initiating the digital transformation of our Electronic Health Records (EHR) to enhance Business Intelligence (BI) data capabilities. We've used AI to boost internal operational efficiency, laying the groundwork for high-quality business development. Concurrently, the construction of our Taihu Industrial Artificial Intelligence Park is on track. We've partnered with China Mobile Migu, ZhiPu AI, and Alibaba and many other partners to develop the Taihu Base Metaverse project. Together, we're creating the WangShan 7000 digital assets and AI management platform, which will serve the park's core intelligent management functions such as construction, security, traffic control, asset management, and environmental operations. Based on our 3D visual digital light field technology, we're setting the pace for future smart park and metaverse development.

2025: Embrace the Great Era of Vision AI!

In the new year, LUSTER will continue to prioritize quality, make continuous strategic investments in product and technology research and development. We are honored to serve multiple world-class clients, striving to improve ourselves alongside giants, develop our organization and cultivate talent.

We aim to seize the strategic opportunities brought by the significant growth of industrial artificial intelligence applications, focusing on the "Vision + AI" strategic direction, steadfastly following the path of Vision + AI, meticulously refining our products, swiftly expanding internationally, and engaging in deep collaborations with key industry clients. We will invest strategic resources in developing intelligent devices, AI (such as soft algorithms), vision systems, and intelligent equipment, creating competitive star products for commercial success; accelerate LUSTER's internationalization process, integrate domestic and international resources, and achieve high-quality international business development; continue to deepen process reforms and organizational capacity building, enhance talent development and training, select and employ capable cadres, implement rotation systems for cadres, and establish compensation and sharing mechanisms based on business results; cultivate talent through performance management, stimulate organizational vitality, empower ordinary individuals to achieve extraordinary feats through organizational spirit, support high-quality business development, strive to contribute to customers, develop teams, and achieve personal success.

In 2025, LUSTER's Taihu Industrial Artificial Intelligence Park will officially commence operations, and we are eager to host our esteemed customers and partners for a tour. Together, let us step into the era of Vision AI and lay the foundation for a future of innovation and excellence.

Cheers to a fantastic 2025! Happy New Year!

LUSTER LightTech Co., Ltd.

December 31, 2024