Summary of the Conference Call for LITONG Technology Company Overview - **Company**: LITONG Technology - **Industry**: Engineering machinery, hydraulic business, high-pressure sterilization equipment, oil and gas extraction Key Points and Arguments 1. **Stable Growth in Hydraulic Business**: LITONG Technology's hydraulic business in engineering machinery has shown stable growth, with the acid fracturing hose project achieving a gross margin close to 40% due to increased market demand from China's shale oil and gas extraction efforts [2][4][6]. 2. **Expansion into HPP Equipment**: The company has successfully developed ultra-high pressure sterilization equipment (HPP) that operates at room temperature, preserving the original flavor and nutrients of food, indicating significant potential for import substitution [2][3][10]. 3. **Recognition by Major Suppliers**: LITONG Technology has been included in the first-level supplier system of China National Petroleum Corporation (CNPC), which reflects the recognition of its product quality and technology [2][4][6]. 4. **Significant Revenue Growth**: In Q1 2025, LITONG Technology reported a revenue increase of 23.14% year-on-year and a net profit growth of 86.13%, indicating substantial progress across multiple business areas [2][8][20]. 5. **New Product Development in Oil Extraction**: The company has launched ultra-length acid pressure pipe assemblies suitable for offshore oil field fracturing vessels and is actively developing cross-border hoses for marine oil [2][9][21]. 6. **Certification and Competitive Advantages**: LITONG's acid pressure hoses have received API and APS certifications, showcasing lightweight, high-temperature resistance, and high corrosion resistance, with a working pressure of up to 15,000 Pa, outperforming competitors [2][11][20]. 7. **Market Potential for HPP Equipment**: The global market for HPP equipment is projected to reach hundreds of billions, with the domestic market currently around a hundred units, positioning LITONG as one of the few companies capable of fully producing HPP equipment [3][22][26]. 8. **Future Development Directions**: The company plans to continue developing HPP technology, expand its existing rubber hose business, and deepen its involvement in shale oil and gas acid fracturing hose markets to meet growing domestic and international demand [7][21][27]. Additional Important Content 1. **Diverse Applications of HPP Technology**: HPP technology is widely applicable in food and beverage, pharmaceuticals, cosmetics, and pet food industries, with significant advantages in extending shelf life and preserving nutritional value [12][23][24]. 2. **Global HPP Market Dynamics**: North America dominates the global HPP market, while China is emerging rapidly, with a compound annual growth rate of nearly 15%, indicating a strong growth trajectory for LITONG Technology in this sector [26][27]. 3. **Competitive Landscape**: LITONG Technology's products are competitive against international brands, with superior performance metrics, and the company has established partnerships with major clients in the industry [14][20]. This summary encapsulates the key insights from the conference call, highlighting LITONG Technology's growth, product development, market positioning, and future strategies in the engineering machinery and high-pressure sterilization equipment sectors.