Dear Secretary, hello! As an ordinary investor, I feel dumbfounded after reading the 2023 semi-annual report! You have replied more than 6 times, saying that the production capacity of the company's Shanghai Lingang factory is ramping up smoothly. However, the Lingang factory only had sales of 35 million in the first half of the year, but lost more than 40 million! What is the reason for this situation?

Tianyue Advanced: Dear investors, hello! With the rapid growth of global and domestic demand in terminal markets such as new energy vehicles, new energy power generation and energy storage, the industry's demand for silicon carbide substrates has shown a sustained strong trend. At present, the company is accelerating the construction of the capacity of the new factory in Lingang, Shanghai, and gradually increasing the capacity and output of conductive substrates. In May 2023, the Shanghai Lingang Smart Factory started product delivery and is in a stage of continuous ramp-up of production. The capacity ramp-up of the new factory needs to be combined with the comprehensive consideration of various factors such as the downstream market situation and company planning. At present, based on customer order demand and industry development, the company expects that the original Lingang's first phase of 300,000 pieces of production capacity will be realized ahead of schedule. In the first half of 2023, the company's revenue was 438 million yuan, an increase of 172.38% from 161 million yuan in the same period last year, mainly from the sales of conductive products, and it is still in the stage of increasing production capacity and output. At the same time, the company has increased its R&D investment in 8-inch products and forward-looking technologies. The increase in the above expenses has reduced the net profit in the reporting period. Under the general background of "carbon peak and carbon neutrality", new energy industries such as green electricity, energy storage, and electric vehicles are developing rapidly. Electrification and efficient use of energy are driving the rapid development of the silicon carbide semiconductor industry. With the gradual release of the production capacity of the company's new Shanghai factory, it is expected that the company will gain greater market influence in the power SiC field. Thank you for your attention!