Core Viewpoint - The company is facing potential impacts from the appreciation of the RMB against the USD, as approximately 75% of its export business is settled in USD, which may affect profits in the short term [1] - The company is actively managing foreign exchange risks and is focused on enhancing its core competitiveness to maintain stable operations [1] Group 1: Foreign Exchange Impact - The company acknowledges that the rapid appreciation of the RMB may have a significant impact on its export business [1] - The company plans to use foreign exchange derivatives and strategic settlement timing to mitigate currency fluctuation risks [1] Group 2: Raw Material Prices - The company monitors the supply and price fluctuations of various raw materials and adjusts its procurement strategies accordingly [1] - The company considers multiple factors, including exchange rates and raw material prices, during product re-pricing due to the short order cycles of its OEM/ODM business [1] Group 3: Market Activity - On February 4, the company’s stock closed at 14.11 RMB, with a slight increase of 0.36% and a trading volume of 95,500 shares, resulting in a turnover of 134 million RMB [1] - There was a net outflow of 39.93 million RMB from major funds, indicating a short-term reduction in holdings by institutional investors [2]

Core Viewpoint - The company acknowledges fluctuations in the prices of upstream raw materials and emphasizes its strategic procurement approach to manage these changes effectively [1]. Group 1: Raw Material Prices - The company has a diverse range of raw materials, with prices experiencing both increases and decreases [1]. - The company conducts regular analyses of supply and demand as well as price fluctuations for bulk raw materials [1]. Group 2: Impact on Business Strategy - The company has a short order cycle for its OEM/ODM products, allowing for price renegotiation that considers multiple factors such as exchange rates and raw material costs [1]. - The company aims to enhance its core competitiveness to improve market pricing power over the long term [1].