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.