Group 1: Investor Relations Activities - The company conducted a specific investor research activity on July 9, 2025, at the company’s first-floor conference room, attended by various securities firms and investment groups [3] - The meeting was hosted by the board secretary, Ding Shirong [3] Group 2: Production and Product Planning - The new production capacity is currently under construction and has not yet commenced operations, focusing on lithium manganese and lithium iron primary batteries [3][4] - There are no current plans for secondary or solid-state battery products, as the company remains focused on primary battery products [4] Group 3: Financial Performance - The company experienced rapid net profit growth in the past year due to the expanding application scenarios and market scale of primary lithium batteries, with steady growth in orders from both new and existing customers since 2024 [5] - The reduction in raw material prices and the expansion of production and sales have further improved the gross profit margin [5] Group 4: Market Risks and Sales Distribution - The risk of primary lithium batteries being replaced by secondary batteries is low in the short term due to significant differences in chemical structure, working principles, and application scenarios [6] - The company’s export business is primarily distributed in developed regions such as North America, Europe, and Asia-Pacific [7] Group 5: E-commerce Sales - The company began establishing e-commerce sales channels in the second half of 2024, with sales on platforms like Tmall, primarily for brand promotion and customer acquisition, resulting in a currently small proportion of sales revenue from e-commerce [8]

Group 1: Investor Relations Activity Overview - The company held an annual performance briefing on May 14, 2025, via online platform [3] - Attendees included the chairman, general manager, financial director, board secretary, and sponsor representative [3] Group 2: Key Questions and Responses - **New Capacity Projects**: The new capacity project is progressing well and is expected to commence production in the second half of 2025. Current lithium battery capacity remains tight, with a focus on lithium manganese and lithium iron batteries for future development [4] - **Stock Price and Dividends**: The company's stock price is influenced by macro policies and market conditions. The company emphasizes investor returns and will continue to consider cash dividends based on profitability and future plans [5] - **Employee Changes**: The company experienced a significant increase in employee numbers due to rising sales orders, which is a normal hiring demand without risks of technology leakage [5] - **Lithium Carbonate Prices**: The decline in lithium carbonate prices does not directly correlate with lithium metal prices, which are influenced by market supply and demand. The company typically procures raw materials 2-3 months in advance and is not currently hedging in the secondary market [6][7] - **Gross Margin Decline**: The gross margin in Q1 2025 decreased due to changes in export tax rebate policies [8]