Group 1: Raw Material Management - The company has established a multi-layered response mechanism for raw material price fluctuations, combining "production-based procurement" and "inventory purchasing" to ensure production continuity and stability [2][3] - Long-term stable relationships with key raw material suppliers enhance the company's bargaining power [2] - Product pricing considers raw material price fluctuations, with some contracts including price adjustment mechanisms to maintain overall profitability [3] Group 2: Mining Tire Operations - The company provides a comprehensive lifecycle management service for mining tires, including maintenance, pressure control, and operational analysis, which enhances production safety and efficiency for mining companies [4] - This operational model allows the company to accumulate valuable tire performance data, facilitating product improvements and increasing customer loyalty [4] Group 3: Strategic Investments - The joint investment in a steel radial tire factory in Russia is driven by the country's significant market opportunities and aims to enhance supply chain resilience and localize production [5] - This strategic move is expected to strengthen the company's competitive advantage and support sustainable value creation for shareholders [5] Group 4: Product Lifecycle and Validation - The validation process for steel radial tires from development to bulk procurement typically takes 12 to 24 months, depending on the mining environment [8] - Successful validation leads to increased procurement from customers, especially when positive performance data is established with well-known clients [8] Group 5: Competitive Advantages - The company differentiates itself through a deep understanding of mining services, a unique "product + operation" model, and strong customer relationships [9] - The operational model reduces overall tire costs for clients while enhancing service barriers and customer retention [9] - The company has a mature global network, providing localized services across multiple countries, which supports rapid market response [10] Group 6: Technological Capabilities - The company has diversified technological reserves focused on enhancing tire performance and production optimization, including advanced materials and processes [12] - Innovations such as environmentally friendly materials and smart tire technologies are part of the company's commitment to maintaining competitive product advantages [12]

Core Insights - The company differentiates itself from domestic peers through its deep mining service expertise, unique "product + operation" model, high-quality customer resources, and forward-looking global layout [1] Group 1: Mining Service Expertise - The company has a profound understanding of mining operations and customer needs, stemming from its founder's experience in the mining tire service sector since the 1980s [1] - It possesses leading domestic and internationally advanced technology in giant tire research and development [1] Group 2: Unique Business Model - The "full lifecycle" service model for mining tires effectively enhances production efficiency, ensures production safety, secures supply chains, addresses customer funding issues for tire procurement, and manages service teams [1] - This model reduces the overall tire costs for customers while allowing the company to accumulate real-time operational data for continuous product iteration and optimization, creating strong customer loyalty and service barriers [1] Group 3: Customer Resources - The company has established long-term partnerships with numerous large mining companies and mining truck manufacturers, leveraging the market influence of leading industry clients to rapidly acquire more customer resources [1] - This foundation supports steady market expansion and sustainable performance growth [1] Group 4: Global Layout - The company is committed to providing all-steel giant tire products and services globally, with several subsidiaries overseas to quickly respond to localized market demands [1] - Its business spans dozens of countries, serving hundreds of mines with all-steel giant tire products or mining tire operation management services, facilitating leapfrog development through its global layout [1]

Market Potential - The global market for all-steel giant tires is expected to reach a production of 358,000 units by 2027, driven by their superior properties compared to giant bias tires [3]. - There are currently 1,615 active large open-pit mines globally, corresponding to approximately 56,000 giant mining trucks [2]. Sales Performance - Sales data for 2024 by rim diameter includes: - 49 inches: 5,974 units - 51 inches: 4,201 units - 57 inches: 5,594 units - 63 inches: 302 units [5]. Competitive Advantages - The company has a strong mining service background and a unique "product + operation" model, which enhances customer loyalty and operational efficiency [6]. - The company has established partnerships with major global mining companies, leveraging its technological and product advantages to expand its market presence [7]. - The competitive landscape shows a clear differentiation, with the company closely following three major international brands in market share and technology [8]. Industry Dynamics - The demand for giant tires is less cyclical compared to the underlying mining products, with no significant seasonal characteristics due to the all-weather operation of dump trucks [4]. - The company has a robust global presence, with operations in dozens of countries, allowing for localized service and rapid market response [7]. Future Development Plans - The company plans to enhance its international market development through a "3+2" strategy, targeting traditional markets in Europe and North America, emerging markets in BRICS and Southeast Asia, and Chinese overseas investments [10]. - Future revenue growth is expected to depend on customer and market development, with overseas market revenue growth projected to exceed 22% from 2022 to 2024 [11]. Financial Outlook - As of July 31, 2025, the company has an order backlog of approximately CNY 1.424 billion for tire sales, excluding mining tire management services [12]. - The company anticipates a potential increase in orders due to ongoing negotiations with several clients, with expected contracts totaling around CNY 2.39 billion [12]. - The company is prepared for potential pressure on profit margins due to increased competition and market supply, but remains optimistic about expanding market share through continuous R&D and operational excellence [13][14].