Group 1: Business Development and Market Expansion - The company is expanding its battery structure component business in the U.S. through its subsidiary OKL, with plans for mass production after equipment installation and debugging [2] - The overall sales volume of battery shells in 2024 is projected to be 175 million units, primarily square battery shells [3] - The company has signed a strategic cooperation agreement for the production of large cylindrical battery shells with Yantai Lihua Power Technology Co., Ltd. [4] Group 2: Financial Performance and Profitability - The company aims to achieve a net profit margin of around 15% in the future, leveraging its advanced technology and high material utilization [7] - The company’s battery shell business is still in its early stages, with significant profit increases expected to take time [4] - The market for harmonic reducers is projected to grow from approximately 1.57 billion yuan in 2020 to 4.7 billion yuan by 2025, with a compound annual growth rate of about 25% [6] Group 3: Business Strategy and Operations - The company is diversifying its operations across various sectors, including new energy battery shells and can/cover equipment, while also exploring the application of its technology in robotic harmonic reducer components [5] - The company emphasizes the importance of resource allocation, capability transfer, and technology sharing among its diverse business units to enhance overall competitiveness [8] - The company has implemented multiple employee incentive plans, including stock options and employee stock ownership plans, to motivate core talent [7]

Financial Performance - In 2024, the company achieved total revenue of CNY 1.512 billion, with a net loss of CNY 130 million, primarily due to a significant decline in sales of can/cap equipment and unfulfilled overseas sales in Q4 [2][3] - In Q1 2025, the company reported total revenue of CNY 533 million, a year-on-year increase of 54.86%, with a net profit of CNY 11.59 million, indicating improved performance [3] Battery Shell Business - In 2024, the battery shell business generated revenue of CNY 1 billion, a year-on-year growth of 51.41%, maintaining double-digit growth [4] - The gross margin for the battery shell business decreased compared to the previous year due to raw material price fluctuations and competitive pressures in the automotive industry [3][4] Robotics Expansion - The company established a wholly-owned subsidiary, Suzhou Sleek Robot Co., Ltd., in February 2025, to invest in the mass production of harmonic reducer components for humanoid robots [5][6] - A strategic cooperation framework agreement was signed with He Shi Industrial Technology Co., Ltd. to enhance collaboration in key robotic components and software [6] Traditional Business Outlook - The traditional can/cap equipment sector has faced cyclical fluctuations, with a decline in revenue due to weak demand in the beverage packaging market [6] - The company anticipates a recovery in 2025, with a balanced supply and demand in the beer and beverage can production [6] Product Development and Innovation - New production lines for square cans have been launched, significantly improving production efficiency and quality [7] - The company is actively expanding its customer base for battery shells, with notable clients including CATL, EVE Energy, and Ganfeng Lithium [7]