Core Viewpoint - The company's gross margin is influenced by various factors including competition intensity, raw material price fluctuations, and exchange rate volatility [1] Market Competition - In the domestic market, competition among peer companies is intense, with a high concentration of firms leading to fierce competition in information acquisition and resource matching [1] - Major clients often adopt a bidding approach, making price competition a significant battleground [1] Raw Material and Exchange Rate Impact - Short-term increases in raw material prices will impact the company's gross margin [1] - The company's exports are primarily priced in USD, making exchange rate fluctuations a factor affecting gross margin [1] Overseas Market Dynamics - The overseas market is broad, with certain information barriers between companies, and strong customer cooperation, especially in newly entered markets, allows for reasonable pricing advantages [1] - The company can partially pass on raw material price increases to customers, helping to balance cost fluctuations, resulting in relatively stable gross margins for overseas business [1] Overall Gross Margin Outlook - The changes in gross margin need to be viewed comprehensively, but overall, there is no significant impact expected in the short to medium term [1]

Group 1 - The core viewpoint of the article highlights that the gross margin level of Lianchuang Electronics is influenced by various factors including scale, yield, production efficiency, cost control, and pricing [1] - The company stated that the primary competitive indicator in the domestic market remains pricing [1]