Financial Data and Key Metrics Changes - The company reported a record Q2 revenue of $1.5 billion, achieving over 11% top-line growth [3] - Gross profit margin expanded by over 100 basis points, primarily due to a lower markdown rate and occupancy leverage from strong sales [3] - Earnings per share (EPS) grew by over 20%, marking a Q2 record [3][4] Business Line Data and Key Metrics Changes - Nuuly experienced robust growth with over 50% top-line growth [3] - The Urban Outfitters brand achieved positive comparable sales for the first time in a while, indicating a turnaround [4][20] - The Home category has seen three consecutive quarters of comparable sales increases, driven by customer interest in home decor [16] Market Data and Key Metrics Changes - All brands and geographies reported positive comparable sales, showcasing broad-based growth [3] - The company has successfully grown its customer base by 50% over the last five years, indicating effective customer acquisition strategies [9] Company Strategy and Development Direction - The company is focused on diversifying its product offerings and enhancing customer experiences, particularly through new sub-brands [7][11] - There is a strong emphasis on maintaining a full-price business model and reducing reliance on promotions [50] - The company is optimistic about its ability to navigate tariff headwinds through vendor negotiations and sourcing diversification [44][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the macro environment and consumer spending, expecting similar performance in the second half of 2025 [39][41] - The company is prepared to adjust its strategies in response to market changes, leveraging its diversified business model [42][43] Other Important Information - The company is expanding its distribution capabilities, which is expected to enhance logistics efficiency and profitability in the future [36][38] - The Urban Outfitters brand is expected to continue its recovery, with a focus on maintaining margins and driving positive sales [21][24] Q&A Session Summary Question: What gives you confidence that the momentum at Anthropologie is sustainable? - Management highlighted a successful turnaround strategy focused on modernizing product assortments and enhancing customer experiences [5][9] Question: When do you expect new sub-brands to materially contribute to financial performance? - New sub-brands like Daily Practice and Celine D are already significant contributors, with expectations for continued double-digit growth [11] Question: What are the largest incremental profit drivers for the company moving forward? - Management identified margin improvements from brands like Anthropologie and Free People, along with operational efficiencies as key profit drivers [18] Question: How do you view the activewear category and Free People's FP Movement? - Management remains optimistic about the activewear category, citing market share opportunities and unique product offerings as growth drivers [30][31] Question: What are your expectations for the second half of 2025? - Management expects performance to remain strong, with all brands and geographies showing positive trends [39][41] Question: How important are tariff mitigation strategies? - Management emphasized the importance of vendor negotiations and sourcing diversification to mitigate tariff impacts [44][45]

茲提述(i)本公司日期為 2025年 4月 15日的公告，內容有關 2024 年全年業績;(ii)本公司日期為 2025 年 4 月 30 日的公告，內容有關 2024 年報。（統稱「該等公告」）。除非文義另有所指，否則本公 告所用詞彙與該等公告所界定者具有相同涵義。 CC E 本公司董事會謹此向本公司股東及潛在投資者提供有關移除不發表意見的行動計畫執行情況的最 新情況。 山 西 長 城 微 光 器 材 股 份 有 限 公 司 SHANXI CHANGCHENG MICROLIGHT EQUIPMENT CO. LTD.* （於中華人民共和國註冊成立之股份有限公司） （股份代號：8286） 香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確性或 完整 性亦不發表任何聲明，並明確表示概不就因本公告全部或任何部份內容而產生或因倚賴該等 內容而引 致的任何損失承擔任何責任。 有關移除不發表意見的行動計畫執行情況的季度更新 本公告由山西長城微光器材股份有限公司（「本公司」），連同其附屬公司統稱（「本集團」）根 據香港聯合交易所有限公司（「聯交所」）GEM 證券上市規則（「GEM 上市規則 ...

Investment Rating - The report maintains a "Buy-A" rating for the company [6][13]. Core Views - The company achieved a revenue of 12.661 billion yuan in H1 2025, representing a year-on-year growth of 10.36%, while the net profit attributable to shareholders decreased by 11.06% to 1.671 billion yuan [7][8]. - The company is experiencing a phase of pressure on profitability due to the transitional efficiency of new factories and a decline in orders from older factories, leading to a temporary drop in gross margin [8][10]. - The company is successfully diversifying its customer base, with significant contributions from new clients like On and New Balance, and a successful partnership with Adidas [9]. Financial Performance - As of June 30, 2025, the basic earnings per share (EPS) was 1.43 yuan, and the diluted EPS was also 1.43 yuan [4]. - The net asset return rate (ROE) stood at 10.34% [4]. - The company’s total production capacity reached 116.71 million pairs, with a utilization rate of 95.78% [10]. Revenue and Profit Forecast - The forecast for net profit attributable to shareholders for 2025-2027 is 3.54 billion, 4.07 billion, and 4.65 billion yuan, respectively, with corresponding price-to-earnings (PE) ratios of 18, 16, and 14 times [13]. - The company’s revenue is projected to grow from 26.325 billion yuan in 2025 to 32.688 billion yuan in 2027, with year-on-year growth rates of 9.7% and 10.7% respectively [15][19].

Core Viewpoint - The company reported its 2024 annual results and Q1 2025 results, which met expectations, indicating stable performance amidst market challenges [2]. Financial Performance - In 2024, the company achieved a total revenue of 168.85 billion yuan, a year-on-year increase of 0.15%, while the net profit attributable to shareholders was 6.69 billion yuan, down 7.26% year-on-year. The net profit excluding non-recurring items was 5.76 billion yuan, down 11.45% year-on-year. The gross profit margin for the year was 11.67%, a decrease of 0.78 percentage points, primarily due to downstream pressure and fluctuations in raw material costs [2]. - For Q1 2025, the company reported revenue of 40.37 billion yuan, with a quarter-on-quarter increase of 9.1% but a year-on-year decrease of 18.2%. The net profit attributable to shareholders was 1.27 billion yuan, with a quarter-on-quarter increase of 0.6% but a year-on-year decrease of 42.7% [2]. Customer Diversification - The company has been actively diversifying its customer base, with 62.2% of revenue in 2024 coming from customers outside the SAIC Group, mitigating the impact of declining sales from SAIC. Major non-SAIC customers include Tesla Shanghai, Seres, BYD, Geely, FAW-Volkswagen, Chery, Brilliance BMW, Changan, and GAC Passenger Cars. By the end of 2024, 75% of new orders were for new energy vehicles, and over 50% were from independent brands, with strong ties to leading independent and new force customers like BYD, Seres, and Chery [3]. Cost Control - The company achieved significant cost control, with R&D expenses down 13.1% year-on-year due to reduced ineffective investments, and sales expenses down 13.6% due to optimized logistics costs. Financial expenses increased by 436.9% year-on-year due to exchange losses, which are considered a short-term factor. The net profit margin for the year was 3.96%, a decrease of 0.3 percentage points, with the decline being less than the fluctuation in gross profit [4]. Cash Flow and Dividends - The operating cash flow for 2024 was 8.14 billion yuan, a year-on-year decrease of 28.1%, significantly impacted by the collection cycle. However, Q1 2025 saw a substantial improvement to 2.07 billion yuan, a year-on-year increase of 68.8%. The company plans to distribute dividends of 2.52 billion yuan in 2024, an increase from the previous year, with a payout ratio of 38% [6]. Profit Forecast and Investment Rating - The company maintains revenue forecasts of 173.1 billion yuan for 2025 and 182.6 billion yuan for 2026, with an expected revenue of 187.1 billion yuan in 2027, representing year-on-year growth rates of 2.5%, 5.5%, and 2.5%, respectively. Due to intense competition in the automotive market and significant supply chain cost pressures, the net profit forecasts for 2025 and 2026 have been revised down to 7.1 billion yuan and 7.7 billion yuan, respectively [7].

Financial Data and Key Metrics Changes - Net sales for the first quarter were $19.2 million, a significant increase of 42.7% compared to $13.5 million in the same quarter last year [8] - Gross profit margin for the first quarter was 29.8%, in line with the target of 30% [9] - Adjusted EBITDA for the quarter was $867,000, a significant improvement from an adjusted EBITDA loss of $1.1 million in Q1 2024 [30] - The company ended the quarter with a backlog of $15.2 million [10] Business Line Data and Key Metrics Changes - Sales increased by $5.7 million compared to Q1 last year, with a favorable mix towards higher value offerings, including DAC thermal cooling systems and integrated small cell solutions [11] - Custom cables, wire harnesses, and core distribution-centric RF products also contributed solidly to the quarter [11] - The company is diversifying its customer base, with a growing portion of product revenue coming from customers outside the large Tier 1 wireless carriers [12] Market Data and Key Metrics Changes - The company anticipates an increase in stadium and venue projects, positioning itself to benefit from these trends [15] - The aerospace industry is identified as a high-growth area, with a significant interconnect opportunity won from a leading aerospace company [14] Company Strategy and Development Direction - The company is transforming from a product company to a solutions provider, focusing on comprehensive solutions that address customer needs [24][26] - Strategic investments have been made to expand the sales team and enhance customer engagement [27] - The company aims to achieve an adjusted EBITDA goal of 10% of sales or greater [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on opportunities ahead, with expectations for fiscal 2025 revenue to be significantly higher than fiscal 2024 [22] - The company is closely monitoring tariff proposals and does not anticipate a significant impact from new tariffs on its operations [19][20] Other Important Information - The company has a current ratio of approximately 1.7:1, with current assets of $29.5 million and current liabilities of $17.8 million [31] - Inventory decreased to $13.5 million from $18 million last year, reflecting improvements in procurement and supply chain processes [32] Q&A Session Summary Question: Update on the lower margin hybrid product - Management noted that the backlog has maintained around $15 million, with older hybrid fiber products being replaced by newer product lines [37][39] Question: Reason for sequential increase during a slow quarter - The increase was attributed to new product lines and some contribution from operating expenditures [42][46] Question: Insights on gross margin changes throughout the year - Management is optimistic about maintaining around a 30% gross margin, with potential for improvement as production optimization continues [48][50] Question: Impact of the new sales team on recent growth - The performance is partly credited to the new sales team, with expectations for minimal additional spending on resources [51][56] Question: Expectations for cash flow and debt paydown - Management indicated that cash flow is positive and they expect to take a chunk out of debt this year [76] Question: Performance of Microlab products - Microlab products have shown variable performance, but the acquisition has positioned the company well within the market [80][82]