Core Viewpoint - Haian Group's mining tire operation management business demonstrates strong customer loyalty and addresses significant customer pain points, leading to a unique competitive advantage and sustainable business growth [2]. Group 1: Business Operations - The initial pricing for new projects may result in lower gross margins due to the unique characteristics of the mineral types, geological conditions, and operational environments [2]. - As the company becomes more familiar with the tire operating environment, there is potential for continuous product iteration and optimization, which can effectively reduce tire consumption and improve project gross margins [2]. Group 2: Business Synergy - The mining tire operation management business complements the direct sales business, creating a mutually reinforcing dynamic that drives healthy business development [2].

Core Viewpoint - Hai'an Group has established a strong market presence in Russia through long-term partnerships and high-quality products, with significant contracts signed to ensure future growth and competitiveness in the market [4][10]. Group 1: Market Development and Strategy - The company has increased its market share in Russia by building trust with local clients since entering the market in 2016, culminating in a long-term sales contract worth approximately 6 billion RMB signed in 2022 [4]. - The company aims to maintain its competitive edge in the Russian market through long-term cooperation with core clients, product quality, and specialized services, despite ongoing competition from international brands [4][10]. Group 2: Product Lifecycle and Management - The operational management model for mining tires includes not only the supply of all-steel giant tires but also the establishment of project teams on-site to provide comprehensive lifecycle management services, enhancing safety and efficiency for mining companies [2][7]. - The company collects operational data during service to improve product offerings and increase customer loyalty, thereby creating industry barriers [2][7]. Group 3: Production and Financial Outlook - The adjusted fundraising projects include the expansion of all-steel giant tire production, automation upgrades, and the establishment of a research center, with construction periods of 3 years, 2 years, and 3 years respectively [3][8]. - As of July 2025, the company has an order backlog of approximately 1.424 billion RMB, with new orders and framework agreements signed for 4,790 giant tires worth about 337 million RMB [3][10]. - The company is actively pursuing additional contracts with significant clients, indicating potential for stronger future growth in both tire sales and operational management services [10].

Market Development - The company has established a significant market share in Russia since entering in 2016, driven by long-term partnerships and high-quality products, culminating in a major sales contract worth approximately 6 billion RMB in 2022 [2][3]. - The number of customers in the Russian market continues to grow, indicating substantial market potential despite ongoing competition from established international brands [3]. Product Lifespan and Market Demand - The lifespan of all-steel giant tires varies significantly based on multiple factors, including mining conditions and vehicle specifications [4]. - There are approximately 1,615 active large open-pit mines globally, with around 56,000 giant mining trucks, each requiring an average of 8 tire replacements annually [4][5]. Operational Management Model - The company provides comprehensive tire lifecycle management services, enhancing production safety and efficiency for mining companies while accumulating valuable operational data [5]. Competitive Landscape - The all-steel giant tire market is characterized by high technical barriers and strong customer loyalty, with three major international brands dominating the market. The company ranks closely behind, offering competitive pricing and service advantages [6][7]. Investment Projects and Financial Outlook - The company has three main investment projects with construction periods of 3 years, 2 years, and 3 years, respectively, aimed at expanding production capacity and upgrading technology [8]. - As of July 31, 2025, the company has an order backlog of approximately 1.424 billion RMB, with new contracts and agreements for 4,790 tires valued at about 337 million RMB [10][11]. Future Growth Potential - The company anticipates stronger performance in the all-steel giant tire and related operational management services as mining projects expand and service capabilities deepen [11].