Group 1: Production Capacity and Expansion - The company's production capacity utilization rate was already high last year, and future expansion plans will focus on optimizing production scheduling and upgrading production lines to further tap into production potential [2] - The investment project in Nanjing is currently in the planning stage, undergoing environmental impact assessment approval [2] Group 2: Profitability and Product Structure - The gross margin for household membrane products is significantly lower than that of industrial membrane products, but the increasing sales proportion of high-end industrial products positively impacts overall gross margin [2] - Currently, industrial membranes account for over 70% of the business, with household membranes making up the remainder. The growth rate in the industrial membrane sector is expected to outpace that of household membranes due to ongoing advancements in reverse osmosis technology and domestic substitution processes [3] Group 3: Sales Performance and Market Distribution - The average price of membrane products has significantly increased in 2023, primarily due to product structure optimization, with a higher sales volume of high-value industrial membrane products [4] - The sales volume of membrane components has decreased significantly due to changes in product structure, with an increased share of industrial membranes [5] - Domestic sales focus on regions with water resource scarcity and heavy industry, such as North China, Central China, the Yangtze River Delta, and the Pearl River Delta. Exports account for approximately 30% of total sales, while domestic sales make up about 70% [5] Group 4: International Market and Pricing Trends - The overseas market is primarily distributed across Asia, Southeast Asia, the Middle East, North Africa, Central Europe, Eastern Europe, and South America. The company's low reliance on the U.S. market means that changes in U.S.-China trade relations have minimal impact [6] - The long-term trend for product prices is downward, with future price increases unlikely for conventional products. The company aims to enhance value through new product launches, differentiated competition strategies, and customized R&D for specific applications [6] Group 5: Membrane Separation Engineering Business - The membrane separation engineering business has faced growth constraints due to macroeconomic conditions affecting potential clients' project funding and payment capabilities. The company is cautious about such projects [7] - The company prefers to undertake projects with technical barriers that demonstrate its technological strength, although these projects represent a small proportion of the overall market [7] - The positioning of the membrane separation engineering business is to contribute revenue while also serving the expansion and demonstration of membrane technology applications, ensuring basic profitability while meeting demonstration requirements [7]