Beijing Junzheng: The gross profit margin of simulation chips may fluctuate in the future, but the magnitude will not be too large.

On June 5th, during a research visit to the reception organization, Beijing Junzheng stated that integrated chips are mainly targeted at the consumer market, where competition is intense, and prices may fluctuate significantly; storage chips are mainly targeted at the industry market, where prices are relatively stable; analog chips from companies like TI and Infineon have aggressive price strategies, as well as some domestic competitors, therefore market competition will be more intense, and adjustments in prices may be necessary to capture more market share. The gross profit margin for the company's analog chips in the first quarter of this year was close to 50%, relatively stable. However, in the future, due to market competition, there may be some fluctuations in the gross profit margin, but the magnitude will not be too large.