At its Q3 results meeting, Hongwei Technology said profits are under pressure
due to heavy investment and capacity ramping at key subsidiaries, calling it a
temporary strategic-capacity ‘pain’ phase. Management will continue cost-cutting
and efficiency measures to restore gross margins quarter-by-quarter and
accelerate volume growth in high-margin SiC, GaN, energy-storage and AI power
products to raise the share of higher-value revenue. As production capacity
progressively ramps to healthy levels, the company said its profit mix should
continue to improve.
