Production Capacity - The company has three production bases in South China, East China, and Southwest China, with a designed capacity of 200,000 tons in South China, achieving an 80% utilization rate as of now [2] - The East China production base has a designed capacity of approximately 50,000 tons, expected to gradually release 50% of its capacity by mid-2025 [2] - The Southwest production base is still under construction and currently has no capacity released [2] Cost Improvement Measures - The company has implemented cost reduction and efficiency enhancement measures since last year, optimizing both material and production costs through iterative upgrades in formulation [2] - Increased capacity utilization and product output have further released economies of scale [2] Customer Segmentation - Approximately 50% of the company's downstream customers are in the home appliance sector, while around 40% are in the automotive sector, with other industries accounting for about 10% [3] - Key home appliance clients include Midea, Gree, Haier, and Xiaomi, while automotive clients include GAC Aion and GAC Toyota [3] Order Stability - The company has established strong cooperative relationships with core customers in the home appliance and automotive sectors, ensuring stable order sources [4] Cash Flow Issues - The negative operating cash flow is primarily due to differences in settlement methods between customers and suppliers, with suppliers requiring immediate payment while customers typically use longer-term payment methods [5] New Directions and Innovations - The company is focusing on the research and development of modified high polymer materials for emerging industries such as new energy and robotics [6] - It aims to actively expand into new product areas aligned with downstream application opportunities [6] Recycling Initiatives - The company promotes the recycling of post-consumer plastics (PCR) and is working on certification to enhance the high-value recycling of materials [7][8] Response to Price Declines - In response to declining end-user prices due to increased competition, the company is enhancing R&D capabilities, improving product formulations, and developing recyclable materials to reduce costs and improve production efficiency [8]