Core Viewpoint - The company disclosed key operational details regarding its sales model, distributor cooperation, and inventory management in response to regulatory inquiries about its convertible bond issuance, highlighting the differences in gross margins across sales models and the stability of its distributor relationships [1][2]. Sales Model - The company primarily relies on a distribution model, with distributor revenue accounting for over 80% from 2022 to September 2025, while direct sales contribute less than 20% [1]. - Gross margins differ between sales models, with direct sales having slightly higher margins due to higher pricing from leading consumer electronics companies, while the distribution model offers a wider range of products and a broader customer base, aligning more closely with the overall gross margin of the company [1]. Distributor Cooperation - The company maintained stable relationships with its main distributors during the reporting period, with revenue from major distributors consistently accounting for over 49% of total distributor revenue from 2022 to September 2025 [2]. - The main distributors are well-known professional distributors in the industry, with no related party transactions or other interest arrangements with the company [2]. Inventory Management - Inventory reduction aligns closely with industry cycles, with an overall upward trend in sales volume to major distributors as the business scales, matching revenue changes [2]. - In 2023, the industry is in a destocking phase, leading to a decrease in end-of-period inventory levels for major distributors; a reasonable rebound in inventory levels is expected in 2024 and the first nine months of 2025, with low ratios of end-of-period inventory to procurement and no issues of unsold or excess inventory [2].