Group 1: Investor Relations Activities - The investor relations activity was a targeted research event held on June 10, 2025, at the company's office in Changzhou [3] - Attendees included Dongwu Securities and Guotai Junan Securities, with company representatives being Mr. Li Deming (Director, Board Secretary) and Mr. Gu Ke (Director, CFO) [3] Group 2: Market Demand and Product Applications - The company's products are in the personal protective equipment sector, widely used in industries such as machinery manufacturing, metal processing, automotive, construction, aerospace, shipping, maintenance, mining, medical protection, and chemical laboratories [4][5] - The demand for personal protective equipment is expected to grow due to improved safety regulations and increased awareness among workers [5] Group 3: Research and Development Investment - In 2024, the company's R&D investment increased by 7.82% year-on-year, accounting for 5.09% of revenue [6] - Future R&D plans focus on smart personal protective equipment technologies, including enhancements to automatic variable light filters and intelligent upgrades to powered air-purifying respirators [6] Group 4: Sales Cycle and Production Updates - The company’s products do not exhibit significant seasonal or cyclical sales patterns [7] - Ongoing fundraising projects are nearing completion, with production expected to officially start by August 31, 2025 [8] - The Thailand subsidiary was established on January 10, 2025, and is currently preparing for trial production [8] Group 5: Smart Manufacturing Initiatives - The company is investing in automation and smart equipment, having implemented ERP, PLM, and BPM systems for comprehensive process management [9] - Future plans include the introduction of MES and WMS systems to enhance smart manufacturing capabilities and quality control [9]

Group 1: Investor Relations Activities - The company held an earnings briefing on May 7, 2025, attended by investors via online participation [3] - Key personnel present included the Chairman, General Manager, Financial Officer, and Board Secretary [3] Group 2: Internal Control and Governance Improvements - In 2024, the company enhanced its internal control system and risk management to ensure operational transparency [4] - Training for directors and senior management was strengthened to improve their responsibilities [4] - A public opinion management system was established to protect investors' rights [4] Group 3: Sales Performance - In 2024, sales revenue from welding protective masks and accessories reached CNY 188.11 million, accounting for 84.19% of total revenue, with a year-on-year growth of 4.12% [5] - Sales revenue from powered air-purifying respirators and accessories was CNY 35.29 million, making up 15.81% of total revenue, with a year-on-year growth of 14.49% [5] Group 4: Risk Factors - The company faced several ongoing risk factors in 2024, including trade policy changes, market competition, and currency fluctuations [6] - These risks significantly impact the company's operations and future development [6] Group 5: Financial Growth - In 2024, the company reported total revenue of CNY 223.40 million, a year-on-year increase of 5.63%, and a net profit of CNY 59.39 million, up 6.23% [7] - Growth drivers included innovation in personal protective equipment and increased domestic market demand [7] Group 6: Future Plans - For 2025, the company aims to enhance R&D investment and product competitiveness while expanding market reach [9] - Plans include launching more intelligent and eco-friendly protective equipment and improving brand recognition [9] Group 7: Industry Trends - The personal protective equipment industry is evolving towards smart, green, and high-end products [10] - The company is committed to aligning with these trends through increased R&D efforts [10] Group 8: R&D Achievements - In 2024, the company was granted 88 patents, including 15 invention patents and 37 utility model patents [11] - Key R&D outcomes included the development of a wide-view welding mask and a lightweight, easy-to-clean respirator [11] Group 9: Investor Protection Efforts - The company prioritized investor protection in 2024 by enhancing communication and adhering to information disclosure regulations [12] - Measures included regular meetings and feedback collection from investors [12] Group 10: Cash Flow and Financial Health - The net cash flow from operating activities in 2024 was CNY 65.06 million, reflecting a 1.64% increase year-on-year [13] - This indicates stable cash inflow and effective cost control [13] Group 11: Domestic Market Expansion - In 2024, domestic sales revenue reached CNY 27.40 million, a year-on-year increase of 2.96% [14] - The company plans to further enhance its domestic market strategy and product offerings [14]

Investment Rating - The investment rating for the company is "Outperform" (maintained) [1][2] Core Views - The company achieved a revenue of 223 million yuan in 2024, representing a year-on-year growth of 5.63%, and a net profit attributable to shareholders of 59 million yuan, up 6.02% year-on-year [2] - The company is expected to benefit from the completion of its fundraising projects, which will contribute to performance growth [2] - The company is expanding its overseas market presence, particularly in Thailand, with a joint venture aimed at enhancing its competitive position in the personal protective equipment sector [4] Financial Summary - Revenue is projected to grow from 223 million yuan in 2024 to 298 million yuan in 2026, with corresponding net profits increasing from 59 million yuan to 79 million yuan [5] - The company's gross margin is expected to remain stable around 40%, with net margins around 26% for the forecast period [5] - Earnings per share (EPS) are forecasted to rise from 0.97 yuan in 2024 to 1.30 yuan in 2026, indicating a positive growth trajectory [5] Market Position and Innovation - The company holds 89 valid patents, including 19 invention patents, which underscores its commitment to technological innovation and product development [4] - The company is focusing on the electric air-purifying respirator market, aiming to meet diverse customer needs through continuous product innovation [3]