Core Viewpoint - The company held an online investor meeting on May 15, 2025, to discuss its business performance and future plans, addressing key investor questions regarding profitability and development strategies [1]. Group 1: Business Performance - The company reported that the Nantong power station valve was profitable in Q1 2025, but its contribution to the listed company's profits was limited due to factors like shareholding ratio and consolidation timing [1]. - The company experienced a loss in Q1 2025, primarily due to the traditional off-season for the PCCP industry, with some northern bases not producing, leading to fluctuations in overall gross margin influenced by project quality and product structure [2]. Group 2: Business Development - The company is focusing on pipeline and valve businesses, planning to manage the newly entered valve business by following the principles of "integration, potential digging, and development" [2]. - The company is actively expanding the downstream applications of PCCP materials in nuclear power projects, although there are currently no application cases in the nuclear power sector [2]. Group 3: Financial and Corporate Governance - The company stated that it does not meet the conditions for cash dividends due to negative retained earnings for the 2024 consolidated financial statements, and it aims to improve profitability to qualify for future dividends [2]. - The executive compensation is determined by considering operational performance, job value, individual qualifications, and market salary levels, with the compensation plan approved by the board and shareholders [2]. Group 4: Capital Raising - The company is in the process of a simplified procedure for issuing shares to specific investors, but the final decision to proceed will depend on market conditions, indicating uncertainty [3].

Group 1: Financial Performance - The South Tong Valve Company reported a profit in Q1 2025, but its contribution to the listed company's profit is limited due to shareholding ratio and consolidation timing [2] - The company experienced a loss in Q1 2025 primarily due to the traditional off-season for the PCCP industry, with some northern bases not producing due to seasonal reasons [5] - The company's negative retained earnings in the 2024 consolidated financial statements prevent cash dividends, which could lead to delisting under current ST rules [4] Group 2: Business Strategy and Market Position - The company is focusing on pipeline and valve businesses, with plans to enhance market competitiveness through expansion into new areas [2] - The company is actively exploring downstream applications for PCCP materials, particularly in the nuclear power sector, although there are currently no application cases [3] - The company will assess the need for goodwill impairment based on the results of the goodwill impairment test during the reporting period [3] Group 3: Management and Governance - The company considers various factors, including operational performance and market salary levels, when determining executive compensation, which has been approved by the board and shareholders [3] - The company is in the process of evaluating the necessity of a stock issuance based on overall strategic planning and operational development needs [5]