Core Viewpoint - The company reported a significant increase in revenue but faced a decline in net profit, indicating a situation of "increased revenue without increased profit" due to challenges in the electronic paper business and rising costs [1][2]. Revenue Growth and Profitability Challenges - The company's revenue reached 432 million yuan, a year-on-year increase of 30.01%, driven by explosive growth in electronic paper display module business and stable contributions from traditional LCD business [1][2]. - Net profit attributable to shareholders was 5.38 million yuan, a decrease of 36.21% year-on-year, with the net profit excluding non-recurring gains and losses dropping to 627,700 yuan, reflecting a decline of 90.82% [2]. - The electronic paper business contributed nearly half of the revenue (48.63%), but its gross margin fell by 5.83 percentage points to 2.38%, significantly impacting overall profitability [2]. Electronic Paper Business as a Core Driver - Revenue from electronic paper display module business surged to 210 million yuan, a year-on-year increase of 103.01%, accounting for 48.63% of total revenue, nearly equal to traditional LCD business [3]. - The electronic paper products are applied in smart retail, smart public transport, and smart office sectors, aligning with the trend of IoT and smart technology development [3]. - The company holds 149 domestic patents (including 23 invention patents) and has various quality certifications, providing a solid foundation for order acquisition [3]. Global Manufacturing Strategy - The company adheres to a "small batch, multiple varieties" customization strategy, serving major clients like Samsung, Omron, HP, and Schneider, with products sold in over 20 countries [4]. - Overseas sales accounted for 83.72% of total sales, primarily targeting high-end markets in Europe, America, Japan, and South Korea, with the Vietnam production base effectively mitigating geopolitical risks [4]. - To address currency fluctuation risks, the company engaged in forward foreign exchange contracts, effectively hedging against the depreciation of the US dollar [4]. Operational Efficiency and Cost Management - The company utilizes SAP ERP and MES systems for comprehensive digital management, enhancing operational efficiency [4]. - Tax incentives, such as 120% deduction for R&D expenses and 100% deduction for wages of disabled employees, further reduce operational costs [4]. - As of the end of the reporting period, inventory reached 338 million yuan, a 6.99% increase from the previous year, driven by rising orders and raw material reserves [4].