Varun Rajwanshi's questions to TOELY leadership • Q4 2024
Question
Asked for the company's expectation for China sales throughout the year, whether the forecast is conservative, and for the reason behind the decline in gross profit margin in the first half of fiscal 2025.
Answer
The executive expects investment in China to continue for self-sufficiency but for the overall proportion of sales from China to decline as leading-edge investments grow elsewhere. The lower gross profit margin in the first half is attributed to cost increases and product mix, with an expected improvement in the second half driven by higher sales and new high-value-added products.