Group 1: Investor Relations Activity Overview - The investor relations activity was an earnings briefing held on April 29, 2025, via the "Investor Relations Interactive Platform" [3] - Key attendees included the Chairman and General Manager, Mr. Zhao Hongliang, and the Secretary of the Board, Mr. He Jun [3] Group 2: Company Performance and Strategy - The company has a low debt-to-asset ratio and sufficient production capacity to meet market demand without immediate external financing needs [4] - The company is exploring flexible marketing strategies for its high-value ultra-high pressure sterilization equipment, including installment payments and leasing options [5] Group 3: Product Development and Market Position - The company is actively working on replacing imported products in the shield tunneling machine market and is narrowing performance gaps with international competitors [6] - In 2024, the company completed trials for 43 types of nuclear power hoses, with plans for domestic production to replace imports [7] Group 4: Sales and Revenue Insights - In Q1 2025, sales of hydraulic hoses and assemblies increased significantly due to a recovery in the domestic engineering machinery market, with major clients including SANY and XCMG [8] - The acid fracturing hose business has seen record sales in Q1 2025, continuing the positive trend from Q4 2024 [9] Group 5: Financial Performance Analysis - The company's revenue for 2024 remained stable compared to 2023, but net profit declined by approximately 20% due to a decrease in high-margin product sales [10] - The company has become a primary supplier for China National Petroleum Corporation, with ongoing efforts to expand the domestic market for acid fracturing hoses [11] Group 6: Product Specifications and Manufacturing - The 300L ultra-high pressure sterilization equipment is fully domestically produced, with no reliance on imported key components [12]

Summary of the Conference Call for LITONG Technology Company Overview - LITONG Technology's main business segments include Fluid (hydraulic hoses and assemblies, oil drilling hoses, etc., accounting for over 95%), Materials (rubber compounds, etc.), and Equipment (ultra-high pressure cleaning and cutting equipment) [1][3] Core Business Insights - The Fluid segment is the primary revenue source but faces market competition and downstream industry volatility risks [1] - The company is actively expanding its polymer materials business, establishing a research and development base in Qingdao, focusing on general and specialty rubber compounds, with expected revenue of over 18 million yuan in 2024 [1][5] - The ultra-high pressure equipment and services segment is a key future development area, with successful delivery of an ultra-high pressure food sterilization device in 2024, although market promotion faces cost challenges [1][6][9] Financial Performance - In 2024, LITONG Technology achieved revenue of 483 million yuan, remaining stable year-on-year, while net profit decreased to 107 million yuan due to a decline in high-margin oil hose sales and significant expenses from new business expansions [2] Strategic Developments - The company plans to focus on high-value products such as oil hoses (API 17K series), ultra-high pressure resin hoses, and data center liquid cooling hoses in 2025 [1][14] - LITONG aims to localize marine crossover hoses by 2025, having passed API 17K certification, addressing the domestic market's reliance on imports [4][22] Research and Development - R&D is structured across three main segments: Fluid in Luohe, Polymer Materials in Qingdao, and Ultra-high Pressure Equipment in Zhengzhou, with significant improvements in high-end equipment manufacturing capabilities [1][10][11] - The establishment of a new R&D base in Qingdao enhances the company's competitive edge, particularly in polymer materials [11] Market Challenges and Responses - The U.S.-China tariff policies pose challenges, but the company is focusing on improving product quality and expanding into markets like the Middle East and Russia to mitigate impacts [4][16][18] - The company is exploring leasing options for high-value products to alleviate customer uncertainties and accelerate market penetration [21] Future Plans and Innovations - Plans for ultra-high pressure sterilization equipment include establishing small-scale processing service centers to meet customer needs, with potential nationwide expansion based on market response [9][28] - The company is also developing a new device for beverage sterilization that improves production efficiency by eliminating the need for pre-packaging [15] Industry Outlook - The engineering machinery industry is expected to show signs of recovery in 2025, with a projected two-month transmission period for improvements [38] - The nuclear power sector is gradually achieving domestic substitution, with LITONG collaborating with nuclear institutes to develop specialized hoses [26][27] Conclusion - LITONG Technology is strategically positioned to enhance its core business segments while navigating market challenges through innovation and expansion into high-value product areas. The focus on R&D and market diversification is expected to drive future growth and resilience against external pressures.