Core Viewpoint - JiaLian Technology is a high-tech enterprise engaged in the research, production, and sales of plastic products, biodegradable products, and plant fiber products, with a focus on expanding its global market presence and addressing challenges related to production capacity and financial costs [1]. Performance Overview - In 2024, the company achieved a total operating revenue of 2.326 billion yuan, an increase of 35.16% year-on-year; net profit attributable to shareholders was 57 million yuan, up 25.68% year-on-year; however, the net profit excluding non-recurring gains and losses decreased by 29.91% to 12.53 million yuan [2]. - In Q1 2025, the company reported an operating revenue of 506 million yuan, a slight increase of 1.29% year-on-year; net profit attributable to shareholders was -24.96 million yuan, a decline of 157.54% year-on-year; the net profit excluding non-recurring gains and losses was -25.20 million yuan, down 355.50% year-on-year [2]. Reasons for Performance Decline - The decline in performance is attributed to several factors: the expansion of production lines in 2024 led to lower capacity utilization rates as subsidiaries were in the initial production phase, resulting in increased manufacturing and management costs; additionally, interest expenses from unconverted convertible bonds contributed to higher financial costs [3]. Impact of Tariff Policies - The uncertainty surrounding U.S. tariff policies has prompted some customers to resume shipments based on inventory levels, leading to a gradual recovery in overseas sales. The company is actively monitoring U.S. tariff developments and maintaining close communication with customers to respond to potential geopolitical changes [4]. Future Overseas Market Development - The company's globalization strategy includes acquiring a U.S. subsidiary and investing in a production base in Thailand, along with establishing localized sales teams in multiple countries. This strategy enhances the company's international competitiveness and service capabilities, allowing for more flexible responses to global macroeconomic fluctuations and changes in trade policies [5]. Construction and Capacity Planning of Thailand Factory - The first phase of the factory in Thailand, covering 100,000 square meters, has been completed and is now in production. Orders are gradually being transferred for production and shipment, with the capacity expected to meet market demand as new products are introduced [6]. Outlook for Domestic Sales - With rising market demand due to increasing temperatures, the company aims to provide high-quality products and services in the food and beverage packaging sector. The focus is on continuous product development and customized solutions, leveraging years of technical expertise and collaboration with customers to enhance core competitiveness and profitability [7].