Group 1: Performance Decline Factors - The company's performance in 2024 and Q1 2025 has significantly declined due to several factors, including a prolonged adjustment period in the real estate industry, leading to reduced demand and order volume for construction materials [2][3] - Insufficient consumer confidence has resulted in a shift towards lower-priced alternatives, causing a passive adjustment in product structure and pressure on gross margins [2][3] - The new business lines are still in the cultivation phase, leading to increased depreciation, labor, and R&D costs, which have raised short-term expenses while capacity release takes time [3] - Seasonal fluctuations, particularly the impact of the Spring Festival in Q1 2025, have caused temporary disruptions in production, logistics, and downstream construction, further affecting revenue [3] Group 2: Company Responses and Future Outlook - The company is actively addressing these challenges by optimizing capacity layout, accelerating new business ramp-up, and enhancing supply chain cost control [3] - The company expects improvement in operational conditions as the market environment gradually recovers and new project capacities are released [3] - The transaction with Xingkong Technology is progressing smoothly as per the agreement [3] - The company has not yet initiated sample certification for semiconductor-grade quartz sand with relevant semiconductor equipment companies [3] - Future profit growth points will be pursued through solidifying traditional quartz stone slab business while actively cultivating new business segments and upgrading products [4] - The company is transitioning towards new productive forces and continuously optimizing its business structure to seize new industry development opportunities [4]