Zhongji Xuchuang: Gross profit margin is expected to further improve.
Regarding the question of whether there is still room for the gross profit margin to increase after the volume of 1.6T products, Zhongji Xuchuang stated in an institutional conference call on October 30 that the gross profit margin is expected to further improve, mainly due to several factors: optimization of product structure, growth in demand for high-end products such as 800G and 1.6T, and continuous increase in revenue proportion. The silicon photonics solution has been recognized and verified by key customers, and the proportion of silicon photonics in 800G and 1.6T products is expected to continue to increase. Yield rates are also increasing.
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