Group 1: Acquisition Strategy - The acquisition of Damo Semiconductor is a key strategic move for the company to explore new growth avenues and address challenges in its main business due to market competition and global trade tensions [3][4] - The acquisition aligns with the company's goal to enter the semiconductor front-end measurement equipment sector, which is expected to provide a sustainable growth path [3][4] Group 2: Financial Performance of Damo Semiconductor - Damo Semiconductor's revenue grew from CNY 191.0 million in 2022 to CNY 277.9 million in 2024, with a compound annual growth rate (CAGR) of 20.62% [4] - Net profit increased from CNY 47.7 million in 2022 to CNY 64.9 million in 2024, achieving a CAGR of 16.62% [4] Group 3: Investment and Stock Purchase - 36% of the transaction price will be used to purchase the company's stock from the secondary market, aimed at aligning the interests of the stock transfer party with the long-term goals of the company [5] - This arrangement is designed to incentivize the performance of Damo Semiconductor, thereby supporting the overall growth and stability of the company's market value [5] Group 4: Competitive Advantages - Damo Semiconductor offers significant price advantages with its repair equipment, which is priced lower than new equipment, reducing customer procurement costs [6] - The company boasts efficient delivery capabilities, providing shorter lead times compared to international brands [6] - Reliable operational and maintenance services ensure long-term stable operation of equipment, maximizing production line efficiency for clients [6][7] Group 5: Maintenance and Technical Services - Damo Semiconductor provides comprehensive maintenance services, including preventive maintenance, fault diagnosis, and performance optimization, ensuring equipment stability and enhancing client production efficiency [7] - The company has established competitive barriers in maintenance services through technical talent, spare parts supply chains, and customer resources [8] Group 6: Future Development Plans - Damo Semiconductor plans to expand its maintenance services in the mature process market while also targeting advanced processes to support domestic key clients facing challenges in obtaining original factory support [9] - The company aims to increase its market share in maintenance services for existing clients, leveraging its established relationships [9] Group 7: Main Business Focus - The company is enhancing its marketing efforts in non-U.S. markets, which now account for 85.37% of its sales, while optimizing its domestic marketing network [12] - New product development, including electric all-terrain vehicles and cleaning vehicles, is being accelerated to improve competitiveness [12]

R&D Investment and Innovation - In 2024, the company invested CNY 29.51 million in R&D, focusing on electric and intelligent vehicle technologies, including projects like multimedia dashboard products and electric vehicle chargers [2][3] - Ongoing projects include the development of a multi-purpose golf cart and new cleaning machines [2][3] Revenue Performance - The company's revenue from electric vehicles in 2024 was CNY 829.92 million, a decrease of 23.17% compared to the previous year due to market competition and global trade tensions [2][3] - In 2024, the company reported a total revenue of CNY 831 million and a net profit of CNY 142 million [6][7] Market Expansion and Strategy - Non-U.S. market revenue grew by 25.33% in 2024, with non-U.S. markets accounting for 70.86% of total revenue, increasing to 85.37% in Q1 2025 [3][4] - The company plans to enhance its marketing network domestically and expand into Southeast Asia, the Middle East, and Europe [4][5] Risk Management - The company has formed a special task force to respond to the U.S. "double-reverse" investigation, aiming to mitigate risks through market diversification and product development [5][7] - The company’s revenue from the U.S. market fell by 57.93% in 2024 due to the investigation and competitive pressures [6][7] Financial Health - As of the end of 2024, the company's debt-to-asset ratio was 9.06%, indicating a strong financial position with CNY 1.943 billion in cash and financial assets [11][12] - The company emphasizes cost control and efficiency improvements across various operational areas to sustain profitability [9][10] Future Growth Potential - The company aims to explore strategic mergers and acquisitions to enter high-tech fields such as new materials and advanced manufacturing [9][10] - The focus on innovation and product development, particularly in electric all-terrain vehicles and cleaning vehicles, is expected to drive future growth [9][10]