Report Summary 1. Reported Industry Investment Rating - No information provided about the industry investment rating. 2. Core View of the Report - No clear - cut core view is presented in the provided content. 3. Summary by Relevant Catalogs 3.1. Research Basic Situation - The research object is Luoyang Energy - Saving, belonging to the decoration and building materials industry. The reception time was May 15, 2025, and the listed company's reception staff included Financial Director Yao Yonghua and Deputy General Manager and Board Secretary Cui Zirao [16]. 3.2. Detailed Research Institutions - The reception object was investors who participated online in the 2025 Shandong - jurisdiction listed companies' online collective reception day for investors, and the reception object type was "other" [19]. 3.3. Research Institutions' Proportion - No information about research institutions' proportion is provided. 3.4. Main Content Data - **Automation Production**: Automation production involves comprehensively promoting the equipment upgrade and automation transformation of ceramic fiber production lines, focusing on processes like palletizing and packaging to reduce labor intensity, cut staff, and increase efficiency [23]. - **Product Promotion**: The SuBang casting material and hot micro - crystal products have achieved initial market penetration through technological breakthroughs in niche areas, with ongoing market promotion and plans to expand application scenarios [23]. - **MX Product**: It is a refractory fiber product with excellent temperature - resistance, environmental - friendliness, and high cost - effectiveness, solving multiple pain points of refractory fiber products used in industrial kilns with a long - term use temperature in the 1250 - 1320°C range [25]. - **Sales Region**: The company firmly believes that China is the most important market, and there are no restrictions on domestic product sales [25]. - **EBITDA**: Regarding the question about last year's EBITDA, investors are advised to follow the company's subsequent announcements [26]. - **Rapidstar Product**: It is a high - efficiency diffusion furnace heating system currently in the market promotion and trial - use stage [26]. - **Information Release**: The company will gradually increase the frequency of releasing business dynamic information to facilitate investors' access to company information [26]. - **Customer Information**: The company cannot disclose whether it supplies automotive substrates to Tesla due to customer information confidentiality [27].

Group 1: Automation and Production - The company is focusing on automating production processes, particularly in palletizing and packaging, to reduce labor intensity and improve efficiency [1] - Significant upgrades and automation modifications are being implemented in the ceramic fiber production lines [1] Group 2: Product Development and Market Penetration - The company is actively promoting its two product lines, Subang pouring materials and hot microcrystalline products, which have achieved initial market penetration through technological breakthroughs [1] - The MX product is highlighted for its excellent temperature resistance and environmental performance, addressing key issues in high-temperature industrial furnace applications [1] Group 3: Market Strategy and Sales - The management emphasizes that China is the most important market, with no sales restrictions on domestic products, aiming to enhance profitability [2] - The company is currently in the market promotion trial phase for the Rapidstar product, a high-efficiency diffusion furnace heating system [2] Group 4: Communication and Investor Relations - The company acknowledges the need to increase the frequency of updates on its WeChat and Douyin accounts to keep investors informed [2] - There is a commitment to improving communication with investors regarding company dynamics and performance [2]

Group 1: Industry Outlook and Market Position - The ceramic fiber industry is expected to expand due to national energy-saving and carbon reduction policies, with a focus on applications in various sectors such as steel, petrochemicals, and construction [1][2]. - The company maintains a strong competitive advantage in the ceramic fiber market, despite the presence of smaller competitors [3][4]. - The company is actively exploring new markets, including environmental protection and new energy sectors, to diversify its product applications [4][5]. Group 2: Financial Performance and Challenges - In Q1 2025, the company experienced a significant decline in revenue and net profit, primarily due to delayed project starts from petrochemical clients, with a drop of nearly 30% in net profit year-on-year [16][22]. - The gross profit margin decreased by 5 percentage points, attributed to rising costs in raw materials and energy [17][23]. - The company reported a sales revenue of over 10 million yuan from new MX products in 2024, indicating some positive contributions from new product lines [10][12]. Group 3: Management and Operational Changes - The company has seen a turnover of management personnel, with 41 resignations in 2024, raising concerns about stability and employee morale [2][19]. - The management emphasizes that personnel changes are normal and do not significantly impact operational stability [2][19]. - The company is committed to enhancing investor relations and improving communication with stakeholders to rebuild confidence [2][20]. Group 4: Strategic Initiatives and Future Plans - The company plans to leverage new technologies and products introduced by its major shareholder to enhance its market position and operational efficiency [10][12]. - Future growth is expected to come from expanding into energy-saving, environmental protection, and new energy sectors, while maintaining its leadership in the thermal insulation market [12][24]. - The company is focused on optimizing its product structure and improving cost management to adapt to market changes and enhance profitability [22][24].