Gaon Cable, through its subsidiary LSCUS, has begun a large-scale project to double its transmission cable production capacity by investing $50 million at its Tarboro plant in North Carolina, USA. This is a preemptive response to timely absorb the rapidly increasing power demand in data centers due to the spread of generative AI. Starting with the operation of the first line in October this year, we plan to sequentially expand facilities to the second line in April next year. What is especially noteworthy is the fact that most of the production volume was already sold out through pre-orders from customers even before this factory was completed. This is a clear indicator of how urgently high-quality power cables are needed in the United States and how strong the trust in the supply chain secured by Gaon Cable is earned.

Gaon Cable’s growth is not limited to simply increasing cable production. They are evolving into a total solution company in the data center power distribution market by building a portfolio of high-value power solutions, including cable buses and busducts, as well as transmission cables. In particular, in the bus duct business sector, we achieved the feat of signing long-term supply contracts worth over 5 trillion won with global big tech companies, proving both technological superiority and market dominance. This diversified business structure resulted in raising Gaon Cable's status to the next level as a key partner in AI infrastructure, beyond a simple cable manufacturer.

Financial performance is also showing a steep upward curve. The order balance secured by LSCUS amounts to approximately $200 million, and sales, which were around $300 million last year, are expected to rapidly grow to $500 million this year. The reason we were able to achieve sales growth of more than 60% in just one year is due to a combination of quick customer response based on our local production system and macro opportunity factors such as the North American power grid shortage. In addition, Gaon Cable recently decided on a free capital increase of 0.8 shares to increase shareholder value, and is implementing a multifaceted management strategy to share business success with shareholders and further solidify market trust.

Of course, behind this rapid growth lies a thorough localization strategy. Rather than simply exporting products, Gaon Cable has completed a close-knit business model that reduces logistics costs and immediately reflects customer requirements by using a local production corporation in the United States as a base. This is a huge attractive factor for big tech companies where the stability of power supply is directly related to the competitiveness of data centers. In the future, Gaon Cable is expected to further solidify its position as an irreplaceable core supplier in the U.S. power infrastructure market by advancing next-generation power transmission technologies such as high-voltage direct current transmission (HVDC) and continuously supplying customized solutions.