Core Viewpoint - The company is facing significant challenges in its performance for the first half of 2025 due to changes in the global economic environment and international trade policies, but it is actively seeking growth through transformation and strategic initiatives [1]. External Environment Impact - The company's core market, the United States, has been adversely affected by new tariff policies, leading to a pause in orders from U.S. customers and a shift of orders to Southeast Asia, resulting in an order gap. The U.S. market accounts for approximately 50% of the company's total business, making this impact particularly significant [2]. - The European market is experiencing intense competition, and the low profit margins in the "Belt and Road" markets are causing customers to increasingly lean towards Europe, exacerbating the decline in the company's overall gross margin to 19.68% [2]. Cost Increase - To achieve long-term sustainable development, the company has been pushing forward with strategic transformation, which has led to increased short-term costs due to various factors. - The company has made substantial investments in research and development, with new R&D personnel and related expenses amounting to nearly 2.4675 million yuan during the reporting period. Additionally, the company has initiated a stock incentive plan for core employees, incurring expenses of 3.8893 million yuan [3]. - The company has also incurred significant initial investments in its Vietnam factory, resulting in a loss of 8.051 million yuan during the reporting period. Furthermore, the establishment of a domestic sales subsidiary has increased operational costs as the company develops products tailored to the domestic market [3]. Channel Optimization - The company operates through both online and offline channels, with online sales having been developed since 2018. The e-commerce business accounted for 13.54% of total sales in 2024, with online sales revenue increasing by 58.64% year-on-year [4]. - The company has restructured its e-commerce segment by introducing new talent and forming a centralized e-commerce team to enhance support and oversight of its various e-commerce subsidiaries [4]. - The Vietnam factory officially commenced production in June 2025, with expectations for capacity to gradually increase in the second half of the year, which will help mitigate market risks and improve supply assurance for overseas customers [4]. New Business Growth - The company plans to launch lithium battery garden products and low-voltage lithium battery products in the second half of this year, which are expected to create new growth opportunities and gradually restore growth momentum [5].

Group 1: Company Performance - The company achieved a revenue of 837 million CNY in 2024, representing a year-on-year growth of 42.77% [2] - The net profit for 2024 was 703.88 million CNY, reflecting a growth of 36.92% [2] Group 2: Overseas Production Capacity - The Vietnam production base successfully completed trial production in March 2025, with formal mass production expected to start in May 2025 [3] - The Vietnam base aims to mitigate market risks and enhance supply assurance for overseas markets [3] Group 3: Product Development and Sales Strategy - The company is expanding its product development team to diversify its product offerings beyond handheld electric tools [3] - Products developed by the new team will be sold through both self-owned brands online and a combination of self-owned and OEM models offline [3] Group 4: Market Strategy and Future Goals - The company plans to continue investing in electric tool R&D, focusing on differentiated and high-value products to enhance market competitiveness [4] - The goal for 2025 is to achieve a revenue target of 1.14 billion CNY, with a focus on increasing the sales proportion of lithium battery products, which accounted for 15.29% of sales in 2024, with a revenue growth of 93.94% [4]

Market Outlook - The global electric tool market is expected to maintain a compound annual growth rate (CAGR) of 4.2% from 2020 to 2027, reaching approximately $40.9 billion by 2027 [3] - In 2024, the domestic electric tool export value reached $9.758 billion, with a year-on-year increase of 21.00% [3] Company Performance - In 2024, the company achieved operating revenue of ¥837.0382 million, a year-on-year increase of 42.77%, and a net profit attributable to shareholders of ¥70.3879 million, up 36.92% [7] - The company's gross profit margin declined in Q1 due to low-price strategies adopted by some customers, impacting overall profit levels [4] R&D and Innovation - In 2024, the company developed 132 new products across 21 categories, with 25 ready for mass production and 58 in trial production [8] - The company invested ¥22.3064 million in R&D in 2024, a year-on-year increase of 7.27% [5] Strategic Initiatives - The company plans to enhance its market share in the electric tool sector by increasing R&D investment and developing differentiated, high-value products [6] - A new overseas production base in Vietnam is expected to produce 800,000 electric tools annually, with trial production completed in March 2025 [6] Market Challenges - The company faced a 6.68% year-on-year decline in revenue in Q1, attributed to normal fluctuations in the market [9] - The company is addressing potential risks from international trade tensions and plans to strengthen its presence in traditional and new markets [6]