Group 1: Company Overview and Market Conditions - The overall business situation from April to June remained stable, with export sales affected by U.S. tariffs and order cycles, leading to a slowdown in sales but still maintaining normal levels [2] - Domestic market competition has intensified, prompting the company to adjust marketing strategies and actively promote market expansion, resulting in steady growth in shipment volume [2] Group 2: Impact of U.S. Tariffs - Export sales to the U.S. are primarily impacted by tariffs, with the highest tariff reaching 145%, causing many customers to adopt a wait-and-see approach; however, orders are gradually returning to normal after the retention of a 30% tariff [3] - Tariffs are generally borne by customers through FOB arrangements, with some costs reflected in product pricing, and the company also absorbs part of the tariff [3] - The company maintains close communication with customers to develop countermeasures and plans to participate in 29 trade shows in 2025 to explore other overseas and domestic markets [3] Group 3: Financial Performance and Future Outlook - The impact of tariffs on gross profit margins is uncertain and will be clarified in the 2025 semi-annual report; however, the expected change is not significant [3] - The company has not seen a reduction in customer reliance on its products, and the demand in the U.S. market remains relatively stable, particularly for bathroom products [3] - The company aims to maintain its advantages in plastic bathroom pumps while significantly developing stainless steel pumps, with plans to expand product categories and sales channels [4] Group 4: Dividend Policy - The company has historically maintained a high cash dividend ratio, with cumulative net profit of CNY 2.773 billion and cumulative cash dividends of CNY 2.255 billion, exceeding 80% of net profit [4] - Future dividend distributions will depend on the company's development needs and actual operating conditions, subject to approval by the board and shareholders [4]

Group 1: Product Applications and Market - Plastic bathroom pumps are primarily used in bathtubs, spas, and swimming pools, with extensions into chemical pumps for weak acid and alkali industries, seawater farming, and desalination [2][3] - Stainless steel pumps cover a wide range of applications across industrial, commercial, and agricultural sectors, including water supply, industrial boosting, and wastewater treatment [2][4] - General pumps are utilized in water diversion projects, urban water supply, and agricultural drainage [2][3] Group 2: Revenue and Market Growth - Revenue from plastic bathroom pumps mainly comes from the bathroom and wellness entertainment industry [3][5] - Sales of plastic bathroom pumps increased from approximately 400 million in 2017 to 743 million in 2024, indicating a growth trend [5] - The market for plastic bathroom pumps is expected to continue growing, driven by demand from North American and European markets [3][5] Group 3: Competitive Advantages - The company has over 40 years of experience in motor and pump production, leading to advantages in technology development, production efficiency, and quality control [4][7] - The company produces its own motors, which allows for better compatibility with pump performance and potentially lower energy consumption [4][7] - The company’s automated production processes enhance product uniformity and efficiency, contributing to competitive pricing and timely delivery [4][7] Group 4: Challenges and Strategies - The stainless steel pump market is more fragmented and competitive, making it harder to capture market share compared to plastic bathroom pumps [6][7] - The company faces challenges from increased tariffs on exports to the U.S., which may affect pricing competitiveness [7][8] - To mitigate tariff impacts, the company is maintaining close communication with clients and exploring new domestic and international markets [7][8] Group 5: Customer Considerations - Customers prioritize price, quality, supply continuity, and technical development capabilities when purchasing plastic bathroom pumps [5][7] - The company’s orders are characterized by "multiple orders, small batches," leading to a diverse customer base and varying product specifications [3][4]