Core Viewpoint - Kangxi Communication's subsidiary has successfully defended against allegations of patent infringement in a preliminary ruling by the ITC, allowing its products to continue entering the U.S. market [2][5][6]. Group 1: Legal Proceedings - On January 24, Kangxi Communication learned of the ITC's preliminary ruling, stating that it and its subsidiaries did not violate Section 337 of the Tariff Act of 1930, and did not infringe on Skyworks' patents [2][5]. - The lawsuit initiated by Skyworks in May 2024 accused Kangxi Communication's subsidiary of infringing on five patents related to RF front-end modules [4][5]. - The ITC's preliminary ruling confirmed that Kangxi Communication did not infringe on two specific patents, while three others were withdrawn by Skyworks during the evidence disclosure phase [5][6]. Group 2: Financial Implications - Legal expenses related to the lawsuit are projected to exceed 90 million yuan by the end of 2025, with 38.84 million yuan incurred in 2024 and an additional 50.60 million yuan in the first three quarters of 2025 [4]. - For the first three quarters of 2025, Kangxi Communication reported a revenue of 526 million yuan, a year-on-year increase of 39.32%, although it recorded a net loss of 30.53 million yuan [7]. Group 3: Research and Development - Kangxi Communication's R&D investment for the first three quarters of 2025 totaled 69.27 million yuan, accounting for 13.17% of its revenue [6]. - The company is focusing on the development of Wi-Fi RF front-end chips, with ongoing research into Wi-Fi 8 technology and a commitment to low-altitude economy initiatives [6].