Core Viewpoint - The company, Shandong Kuntai New Materials Technology Co., Ltd., plans to invest up to 100 million RMB to establish a subsidiary in Morocco and build a production base, marking its second overseas production layout after Mexico, aimed at expanding into the European market [1][2]. Group 1: Strategic Expansion - The establishment of the Moroccan production base is intended to cultivate new growth points for the automotive carpet business and enhance the company's global collaborative supply strategy [1]. - Morocco's strategic location near Europe, along with its free trade agreement with the EU, provides favorable conditions for automotive parts manufacturing, significantly reducing shipping costs and risks associated with supply chain disruptions [1][2]. Group 2: Market Potential - The global automotive carpet market is estimated to be between 16.6 billion USD and 18.9 billion USD, with North America accounting for approximately 4.1 billion USD and Europe for about 2.4 billion USD [2]. - The planned production bases in Mexico and Morocco will target a combined market potential of 6.5 billion USD, facilitating a new pattern of coordinated development and resource optimization across major automotive markets [2]. Group 3: Financial Implications - The company's overseas sales gross margin stands at 35.05%, significantly higher than the domestic sales gross margin of 25.55%, indicating potential for improved profitability with the new production base [3]. - The establishment of localized supply chains in Europe and North America is expected to enhance delivery efficiency and provide diverse market opportunities, further strengthening the company's competitive position [3].

Core Points - The company held its 16th meeting of the second board of directors on July 31, 2025, where it approved the establishment of a subsidiary and an investment proposal [1][2][12] - The company plans to set up a subsidiary in Morocco with a total investment not exceeding 100 million RMB, aimed at establishing a production base for automotive carpets [16][20] - The company has also decided to recognize an asset impairment provision of 5.706 million RMB, which accounts for 11.82% of the net profit attributable to shareholders from the previous fiscal year [7][12] Group 1: Investment and Subsidiary Establishment - The company will invest in establishing a subsidiary named "坤泰新材料摩洛哥有限公司" through its wholly-owned subsidiary "坤泰宏景有限公司" [16][18] - The investment aims to create a production base for automotive carpets targeting the European market, enhancing the company's global collaborative strategy [20] - The investment is subject to government approvals and does not constitute a related party transaction or a major asset restructuring [17][19] Group 2: Asset Impairment Provision - The company has conducted a comprehensive assessment of its assets and decided to recognize an impairment provision of 5.706 million RMB for the first half of 2025 [6][7] - This impairment provision reflects the company's cautious approach to accurately represent its financial status and asset values [12] - The provision will reduce the net profit attributable to shareholders by the same amount, impacting the company's equity [7][12]

Core Viewpoint - Company plans to invest up to 100 million RMB in establishing a subsidiary and production base in Morocco to support its automotive carpet business and expand into the European market [1] Investment Details - The investment will be made through KunTai Hongjing Limited, a wholly-owned subsidiary of the company [1] - The actual investment amount will be subject to approval by relevant government authorities [1] - The project will be implemented in phases based on market demand and business progress [1] Strategic Objectives - The establishment of the production base in Morocco aims to create a production and development platform for automotive carpets targeting the European market [1] - The initiative is part of the company's global collaborative supply strategy to foster new growth points in the automotive carpet business [1] - The project will also focus on building a localized service network in Europe to better serve customers in the region and meet the company's strategic development needs for market expansion [1]

Core Viewpoint - Company plans to invest up to 100 million RMB in establishing a subsidiary and production base in Morocco to support its automotive carpet business and expand into the European market [1] Investment Details - The investment will be made through KunTai Hongjing Limited, a wholly-owned subsidiary of the company [1] - The actual investment amount will be subject to approval by relevant government authorities [1] - The project will be implemented in phases based on market demand and business progress [1] Strategic Objectives - The establishment of the production base in Morocco aims to create a production and development platform for automotive carpets targeting the European market [1] - The initiative is part of a global collaborative supply strategy to foster new growth points in the automotive carpet business [1] - The company intends to build a localized service network in Europe to better serve customers and meet strategic development needs for market expansion [1]