According to CoinMeta, at today's third-quarter earnings meeting, Hongwei Technology stated that the company's profits are under pressure mainly because its key subsidiaries are in a period of high-intensity investment and capacity ramp-up, which is considered a "painful phase" of strategic capacity deployment. The management has reflected deeply on this situation and will continue to pursue cost reduction and efficiency improvement. The company aims to accelerate the recovery of gross margins quarter by quarter, as well as to increase the volume of high-gross-margin businesses such as SiC, GaN, energy storage, and AI power supplies, thereby raising the proportion of revenue from high-value-added products. At the same time, as the production capacity of Xinkengneng gradually reaches a healthy level, the profit structure is expected to continue to improve.