Group 1 - The company will hold an earnings briefing on June 27, 2025, from 15:00 to 16:00 to discuss its 2024 annual and Q1 2025 performance, financial status, and strategic initiatives [1][4] - The earnings briefing will be conducted via video and online interaction, allowing investors to engage and ask questions [1][4] - Investors can submit questions via email to the company's investor relations before the briefing, and the company will address commonly asked questions during the session [3][4] Group 2 - The briefing will be accessible through the China Securities Network Roadshow Center [3][4] - Key participants in the briefing include the company's executive director and president, independent director, vice president, and financial director [2]

Summary of Zhongtian Technology Conference Call Company Overview - Zhongtian Technology's total revenue for 2024 is projected to be approximately 40 billion yuan, with contributions from the communication, marine, and power sectors being 8 billion, 3.6 billion, and 1 billion respectively [2][5][19] - The company generates 80% of its revenue from domestic markets, with less than 20% from international markets [6] Financial Performance - In 2024, Zhongtian Technology achieved operating revenue of 48 billion yuan and a net profit attributable to shareholders of 2.8 billion yuan, with a non-recurring net profit of 2.545 billion yuan [4] - The power sector's revenue is 19.8 billion yuan, while the communication sector's revenue is 22 billion yuan [4] - The marine cable segment has a gross margin of approximately 40%, benefiting from the delivery of 337 kV products [2][5] - The marine engineering segment has a negative gross margin of 8%, but profitability is expected to improve in 2025 as construction volume increases [2][5][17] Sector Insights Marine Energy - The marine energy sector has an order backlog of 31.2 billion yuan, with 13.4 billion yuan from marine projects, 14 billion yuan from power projects, and nearly 4 billion yuan from new energy projects [7] - The Jiangsu Yancheng Guoxin project is in a dense delivery phase, with most revenue expected to be recognized in Q2 and Q3 [8] Power Sector - The power sector is expected to benefit from the domestic ultra-high voltage construction and European energy interconnection projects, with a favorable growth outlook for the next 5 to 10 years [19] - The company has secured two ultra-high voltage projects totaling nearly 2 billion yuan, which will enhance overall gross margins [16][19] Communication Sector - The communication sector is stable, with a gross margin of around 25% [2][5] - The traditional optical fiber business accounts for 40%-50% of revenue, while emerging products like 5G antennas and optical modules account for 20% and are growing rapidly [12] International Market Opportunities - The acceleration of offshore wind power construction in Europe presents opportunities for high-voltage cables in markets like Turkey, which may enhance overseas revenue [6][14] - The company aims to increase its overseas marine cable revenue share to 20%-30% in the future [14] Project Delivery and Order Status - As of April 23, 2025, domestic orders are estimated at 6-7 billion yuan, with 70% expected to be delivered in 2025 [15] - The company has a target of adding 3-4 billion yuan in new orders this year, with a focus on matching production capacity [14] Emerging Trends and Future Outlook - The company is transitioning production capacity towards specialty optical fibers, including multi-mode and hollow fibers [23] - The overall business is expected to achieve stable growth, with a focus on high-quality development in the coming years [25][26] Additional Insights - The marine cable business is influenced by geopolitical factors, with the company actively participating in domestic demand growth [22] - The company is not focusing on nuclear fusion or superconducting technologies, which are not core areas of interest [10] This summary encapsulates the key points from the conference call, highlighting the company's financial performance, sector insights, international opportunities, project delivery status, and future outlook.

Group 1: Economic Cooperation - Jiangsu's imports and exports to Latin America reached 115.89 billion yuan in the first four months of this year, showing a year-on-year growth of 3.9% [1] - Jiangsu and Latin American countries are collaborating in manufacturing and industrial chain cooperation, with projects like XCMG's production base in Brazil generating over 500 million USD annually and employing nearly 1,500 local workers [2] - The cooperation between Jiangsu and Latin America in agriculture and food processing is deepening, with annual trade exceeding 800 million USD for products like soybeans and beef [4] Group 2: Energy and Resource Development - Jiangsu enterprises are optimizing resource allocation through deep cooperation in energy and mineral resource development, such as the partnership between NARI Group and Brazil's power sector to enhance grid stability [3] - The mixed ore base established between Brazil's Vale and Lianyungang Port is effectively connecting Brazil's high-quality mineral resources with China's market demand [3] Group 3: Emerging Fields and New Opportunities - Jiangsu is expanding its economic cooperation with Latin America into emerging fields like renewable energy and digital infrastructure, exemplified by the delivery of 100 electric buses to Uruguay and the successful operation of three solar power plants in Brazil with a total capacity of 21 MW [4] - The collaboration in new sectors is complemented by ongoing traditional manufacturing and agricultural partnerships, showcasing a multi-faceted approach to economic engagement [4] Group 4: Cultural and Academic Exchange - Jiangsu has been actively participating in the China-Latin America Civilizational Dialogue Forum for seven consecutive years, aiming to enhance cultural exchanges and academic partnerships between the regions [5] - The upcoming 2025 China-Latin America Civilizational Dialogue will include initiatives like the establishment of a China-Latin America University Alliance to enrich the cooperation framework [5]

Financial Data and Key Metrics Changes - Consolidated net sales for Q1 2025 increased by 6% to $15.7 million compared to $14.9 million in Q1 2024 [14] - Gross profit increased by 24.6% to $4.6 million, with gross profit margin rising to 29.4% from 25% year-over-year [15] - Net loss for Q1 2025 was $1.1 million or $0.14 per share, an improvement from a net loss of $1.4 million or $0.18 per share in Q1 2024 [16] Business Line Data and Key Metrics Changes - Net sales in both enterprise and specialty markets increased, with sales to international customers rising by 21.3% and domestic sales increasing by 2.3% [14] - Sales order backlog and forward load increased by approximately 16% to $6.6 million compared to $5.7 million as of October 31, 2024 [10][14] Market Data and Key Metrics Changes - Improvements were noted in both enterprise and specialty markets, including the military sector, indicating a recovery from previous industry weaknesses [9] Company Strategy and Development Direction - The company is focused on executing growth strategies and operating efficiently to drive results, including gross profit margin expansion [9] - Monitoring of proposed tariffs and their potential impacts on raw material purchases and exports is ongoing, with no significant impact anticipated at this time [12] Management's Comments on Operating Environment and Future Outlook - The management remains optimistic about the outlook for 2025, despite typical seasonality affecting the first half of the year [29][47] - The company has not changed its outlook since the annual report, continuing to see benefits from easing market conditions [29][47] Other Important Information - The company is exploring opportunities in the data center market, particularly related to AI demand, although it has not been a significant part of the business to date [42] - The company is reviewing new product opportunities regularly, although specific launches are not discussed prior to official announcements [44] Q&A Session Summary Question: Impact of tariffs on the company - Management acknowledged potential positive and negative impacts from tariffs but does not expect significant effects at this time [21][22] Question: Advantage from Buy America, Built America initiative - Management noted that being a US-based manufacturer provides a competitive edge, but they are not solely relying on this initiative for sales growth [24][25] Question: Outlook for the company given recent economic changes - Management stated that the outlook remains unchanged and optimistic, despite experiencing seasonality in the first quarter [29][47] Question: Operational leverage and revenue scenarios - Management discussed the significant operating leverage and its impact on gross profit and margins, with sensitivity to revenue scenarios highlighted [35][36] Question: Five-year revenue and EPS goals - Management confirmed that multi-year financial projections exist but are not publicly disclosed [38] Question: Opportunities from AI data centers - Management sees potential for growth in the data center market, particularly from AI demand, although it has not been a major part of the business yet [42] Question: New product launches - Management refrained from discussing specific new products but emphasized the company's capability to meet specialized customer needs [45] Question: Changes in industry outlook - Management believes the demand for communication bandwidth is increasing, positively impacting the company’s prospects [49]