Group 1: Financial Performance - The main reasons for the decline in Q4 profits include a 2% decrease in gross margin due to a shift in revenue structure, with increased contributions from lower-margin new energy business and a decline in high-margin real estate revenue [1] - Increased management expenses due to more fixed asset projects in the Haiyan Park, leading to higher depreciation costs [1] - Increased marketing and R&D expenses as the company invests in new product development and customer engagement [1] Group 2: Market Trends and Strategies - The company believes that R&D investment is crucial for long-term development, despite short-term profit impacts, aiming to enhance product competitiveness and customer satisfaction [1] - The company is focusing on sectors such as new energy, digital energy, smart buildings, and infrastructure for future growth, with expectations of pressure on building business due to market conditions [2] - The largest segment within the new energy business unit is photovoltaic, followed by energy storage and wind energy, with expectations of improved overall gross margin as high-margin segments grow [2] Group 3: Competitive Positioning - The company aims to replace foreign brands in the data center sector by leveraging its product reliability and stability, while also enhancing its offerings in the renewable energy sector [2] - The company is preparing to increase investments in the development of direct current circuit breakers, particularly for energy storage applications [2] Group 4: Supply Chain and Cost Management - Rising prices of raw materials are expected to impact gross margins, with the company planning to manage costs through early procurement and potential cost pass-through to downstream customers [3] Group 5: International Strategy - The company is restructuring its overseas business strategy, focusing on Southeast Asia, South Korea, Europe, and North America, with plans for differentiated market expansion based on local conditions [2] - The company is pursuing UL certification for high-demand products to enter the North American market and enhance its export business [2]