Group 1: Sealing Product Replacement Cycles - The replacement cycle for pump mechanical seals is approximately 1-2 years [1] - The replacement cycle for dry gas seals is generally 1-3 years, influenced by operational conditions [1] - The replacement cycle for nuclear main pump seals is about 18 months, with a recommendation to replace after two fuel cycles [1] Group 2: Impact of Operating Conditions on Seal Lifespan - Mechanical seals are designed for optimal performance under rated operating conditions; insufficient feed can reduce seal lifespan [2] - The lifespan of seals can be compromised if not operated under optimal conditions, leading to premature wear [2] Group 3: Market and Business Growth - The company's overseas market revenue primarily comes from incremental business in the international petrochemical sector [2] - The conversion rate from incremental to stock business is approximately 25%, with a potential annual contribution of 25 million yuan from a 100 million yuan order [3] - The actual conversion rate of incremental business to stock business is around 90%, typically occurring within 1-2 years after revenue recognition [3]

Group 1: Market Overview - The domestic market capacity for high-end mechanical seals is approximately 60 to 70 billion CNY, with the company's market share at about 8% [1] - The company has a market share of over 60% in new projects within the petrochemical sector [1] - The market share in the natural gas long-distance pipeline sector is even higher, while the company has lower market share in areas not yet aggressively developed [1] Group 2: Profitability Insights - The gross margin for both incremental and existing businesses in the international market is slightly higher than that in the domestic market [2] - The overall gross margin for existing international business is expected to be slightly higher than that of the domestic market [2] Group 3: Executive Compensation - Executive compensation is linked to company performance, with a structure comprising approximately 40% base salary and 60% performance bonuses [2] - Salary adjustments are based on net profit growth rates, with specific conditions for increases or decreases [2] Group 4: Business Segment Performance - The mechanical seal segment showed steady performance in 2022, with significant growth in international orders [2] - The nuclear power segment is advancing rapidly, with successful applications in domestic markets, breaking foreign monopolies [2] - The petrochemical sector remains stable, with potential growth in fine chemicals due to current lag behind developed countries [2] Group 5: Future Outlook - The company aims for a balanced revenue share between international and domestic markets in the long term [3] - New fields such as pharmaceuticals, papermaking, and wastewater treatment are being explored, with promising results [3] - The natural gas long-distance pipeline sector is expected to see accelerated project implementation this year [3]