Core Viewpoint - Gree Electric Appliances' Vice President Hu Yusheng stated that the company currently has no plans to replace copper with aluminum in air conditioning units due to significant performance and reliability concerns despite the lower cost of aluminum [1] Group 1: Company Insights - Copper is a core raw material for air conditioners, accounting for approximately 20% of the production cost [1] - Aluminum costs about 1/10 of copper in terms of material price, but it has inferior properties in terms of melting point, thermal conductivity, resistivity, corrosion resistance, and long-term reliability [1] - The company emphasizes that without guaranteed performance, quality, and reliability, there will be no shift to aluminum as a substitute for copper [1] Group 2: Industry Context - Market analysis suggests that rising copper prices could lead to increased production costs for air conditioners, making the "aluminum substitution" a significant cost-reduction strategy [1] - Several companies in the home appliance industry are already promoting the application of "aluminum substitution" in air conditioning units [1]

Group 1: Business Development Strategy - The company will focus on both overseas expansion and solidifying domestic business, leveraging early advantages in local capacity construction in regions like the U.S. and Southeast Asia [1] - The company aims to enhance overseas business contributions while maintaining a strong domestic presence [1] Group 2: Revenue and Profitability Insights - Revenue and gross margin growth in copper busbars is driven by high-quality demands from emerging sectors like data centers, with the company utilizing its raw material scheduling advantages [2] - The company has elevated its heat dissipation copper material business to a strategic level, integrating two research institutes to enhance technological implementation [2] Group 3: Market Adaptation and Technology - The company has prepared for the trend of aluminum replacing copper in air conditioning applications, having developed mature aluminum tube production capabilities over nearly a decade [2] - The company is well-equipped to handle cost changes due to industry iterations, with established technical reserves [2] Group 4: Impact of Tariff Policies - Recent tariff policies have had minimal impact on the company's overseas operations, thanks to its global layout and early advantages [2] Group 5: Copper Foil Business Outlook - The copper foil industry faces overall development pressure in 2024, with profit margins squeezed by copper price fluctuations; however, production utilization rates at Gansu Hailiang are improving [3] - The company is committed to continuous innovation in advanced copper foil technologies to provide differentiated, high-quality products [3] Group 6: U.S. Operations Performance - The U.S. factory is operating normally, with production capacity utilization steadily increasing and contributing positively to the business [3]