There is not much to say about revenue and profit, which have seen significant growth, consistent with the performance forecast. Here are some other observations from the financial statements:1. Contract liabilities have reached a record high, currently at 40.99 million, five times higher than last year’s mid-year report, indicating strong demand;2. The amount paid for purchased goods has been controlled for three consecutive years, and after a corresponding decrease in inventory, it has surged to a historical high of 760 million this quarter, corresponding to the new high in contract liabilities, suggesting that the company is increasing its stockpiling efforts in anticipation of future performance;3. In contrast to the significant increase in revenue, accounts receivable have decreased significantly, with accounts receivable turnover days declining for two consecutive years, indicating that the company’s revenue does not involve credit sales, but rather relies more on cash transactions, further confirming the company’s high-quality operational growth;4. Benefiting from the increased shipment proportion of high-margin products in the RK3588 series, the gross margin continues to rise, currently reaching a historical high of approximately 43.32%. Coupled with the advantages of revenue scale, the net profit margin has further increased to around 27.71%, also a historical high.Overall, the company’s operational advantages are vividly reflected in this financial report. If this trend continues, the company’s ROE will exceed 30%. However, it is also important to note that the current financial report has already shown excellent performance, and whether it can further break through and the potential for further improvement after that are relatively limited. The most intense phase of financial reversal has passed, and the future focus will be on how long high-quality operations can be sustained.From the company’s industry position, the RK3588 has firmly established the company’s positioning in high-end products at the edge. Compared to competitors like Qualcomm and MediaTek, the company has a cost-performance advantage, and local companies provide more grounded services. Next year’s mass production of the RK3688 and a series of co-processors and mid-to-low-end chips will significantly exceed the first-generation products in terms of volume, based on the influence of the 3588, and the number of design-in companies will significantly increase, further solidifying the company’s position as the king at the edge. Currently, it seems that the company has a high probability of becoming the king in the future.As for valuation, it has never been cheap; in a word, it is expensive!