Core Viewpoint - The company has been focusing on transforming its customer base and product offerings, leading to improved gross margins and stable revenue streams despite historical volatility due to external factors [2] Group 1: Historical Performance and Gross Margin Improvement - The company experienced historical performance fluctuations due to significant volatility in raw material and natural gas prices, as well as non-recurring external events [2] - Recent efforts in customer and product transformation, along with an increase in high-margin, high-value products, have contributed to a continuous improvement in gross margins [2] Group 2: Market Outlook for PU Materials - There is an increasing demand for high-performance, multifunctional, and eco-friendly materials in downstream industries, suggesting a potential rise in the penetration of PU materials in existing applications [2] - The company anticipates expanding its application space in sectors such as semiconductors and embodied intelligence [2] Group 3: Revenue Composition and Changes - In the first half of 2025, the revenue composition across various categories remained largely consistent with the first quarter, with functional footwear materials and sofa/home furnishings accounting for nearly 70% of total revenue [2] - The automotive interior segment has seen rapid revenue growth, while the electronic products segment remains stable, and sports equipment has slightly declined [2] Group 4: Automotive Interior Business - The company faces competition in the automotive interior sector from players like Japan's Seiren and Jiangsu Ruigao, but it has established a strong technical level and competitive advantage [2] - PU materials are primarily used in the domestic automotive interior sector for new energy vehicles, with significant potential in traditional fuel vehicles as well [2] Group 5: Progress in Embodied Intelligence - The company is in the early stages of developing materials for flexible robotic skin in the embodied intelligence field and has begun discussions with leading industry players, although no substantial business orders have been secured yet [2] Group 6: Financing and M&A Plans - Currently, the company has no financing plans as short-term capital expenditures are nearly complete, and cash flow remains stable with a healthy debt-to-asset ratio [2] - The company will consider M&A opportunities based on future needs and actual circumstances [2] Group 7: Employee Incentive Measures - Since its listing, the company has actively implemented stock incentive plans and employee shareholding schemes to align employee interests with long-term company development [2] Group 8: Semiconductor Sector Progress - The semiconductor sector is a strategic focus for the company, with initial small-batch orders having been produced and delivered, although the revenue impact remains minimal in the short term [2]

| | 特定对象调研 □分析师会议 | | --- | --- | | 投资者关系活动 | □媒体采访 □业绩说明会 | | 类别 | □新闻发布会 □路演活动 | | | 现场参观 | | | □其他 | | 参与单位名称及 | 1、开源证券：张越； | | 人员姓名 | 2、淳阳基金：徐跃红。 | | 时间 | 年 月 日 2025 9 17 13:00-15:00 | | 地点 | 公司行政楼九楼会议室 | | 上市公司接待人 | 董事会秘书、副总经理：刘松霞 | | | 证券事务代表：陈丽婷 | | 员姓名 | 证券助理：高杰晶 | | | 一、参观公司展厅； 二、主要问题及回答： | | | 1、公司历史上利润为什么会出现波动？近些年毛利率不断 提升的原因是什么？ | | | 答：过去，受原材料及天然气价格大幅波动、外部特定事 | | | 件等多重非持续性因素影响，公司业绩曾出现阶段性波动。但 | | 投资者关系活动 | 由于这些影响因素具有较强的偶发性与不可比性，因此难以反 | | 主要内容介绍 | 映公司真实经营水平。 | | | 近年来，公司积极推进客户和产品转型升级，成效正逐步 | | ...

Revenue Distribution - In the first half of 2025, the revenue distribution among various product categories remained relatively stable compared to Q1, with functional shoe materials and sofa home furnishings accounting for nearly 70% of total revenue. Functional shoe materials maintained a stable revenue share, while sofa home furnishings saw a decline. The automotive interior category experienced rapid growth, increasing its share, while electronic products remained stable, and sports equipment saw a slight decline, collectively accounting for approximately 30% of total revenue [2][3]. Gross Margin Analysis - The company employs a customized production model based on diverse customer needs, leading to variations in gross margins across different product categories. Generally, electronic products and automotive interior categories exhibit higher gross margins. Functional shoe materials and sofa home furnishings show a "layered differentiation" in gross margins, with both stable and high-margin products present [3][4]. Growth Drivers - The continuous improvement in gross margins over recent years is attributed to the company's focus on customer and product transformation, resulting in an increase in high-margin, high-value-added products. Enhanced internal management practices have also contributed to cost reduction and efficiency improvements [3][4]. PU Material Market Potential - The application scope of PU materials is expanding beyond traditional uses in shoe materials and sofa home furnishings to include automotive interiors and consumer electronics. The demand for high-performance, multifunctional, and eco-friendly materials is expected to drive further penetration of PU materials in existing markets and new areas such as semiconductors and embodied intelligence [4][5]. Automotive Interior Market Insights - The trend initiated by Tesla's introduction of 100% leather-free interior models is influencing the adoption of PU synthetic leather in domestic electric vehicles. Currently, electric vehicle brands are the primary users of PU materials in automotive interiors. As the market penetration of electric vehicles increases, consumer expectations for interior quality and environmental performance are rising, positioning PU materials as a key competitive advantage for automakers [6][7]. Pricing Strategy - The company employs a flexible and prudent pricing strategy that considers customer needs, competitive landscape, application areas, and target gross margins, rather than a simple cost-plus model. The company has established itself as a leading player in the industry, enhancing its pricing power with various customer segments [8]. Financial Health - The company currently has no immediate financing needs, as short-term capital expenditures are largely completed, and cash flow remains stable. The asset-liability ratio is healthy, indicating strong risk resistance capabilities [8]. Semiconductor Sector Development - The semiconductor sector is a strategic focus for the company, with initial small-batch orders having been produced and delivered after two years of development. However, these orders are not expected to significantly impact overall revenue in the short term. The company plans to actively explore new growth opportunities in this area [8].

Core Viewpoint - The company is actively engaging with various institutional investors to discuss its business layout, market prospects, and capacity planning, particularly focusing on the automotive interior materials segment, which is experiencing significant growth due to the rising demand from the electric vehicle market [2][3]. Group 1: Business Overview - In the first half of 2025, the company's revenue composition remained largely stable compared to the first quarter, with functional footwear materials and sofa home furnishings accounting for nearly 70% of total revenue, while automotive interior products showed rapid growth [2]. - The automotive interior business is highlighted as a key area of focus, driven by the increasing requirements for interior materials in electric vehicles, with PU materials being favored for their high performance and eco-friendly characteristics [2][3]. Group 2: Competitive Advantage - The company has established strong technical capabilities and competitive advantages in the automotive interior segment, with products already being used by major automotive brands such as BYD, Toyota, and Volkswagen [3]. - The company employs a combination of market-driven and collaborative development strategies to meet the needs of leading clients, maintaining a high level of R&D investment, which has consistently accounted for over 5% of revenue in the past three years [3]. Group 3: Future Prospects - The company is exploring opportunities in emerging fields such as semiconductors and embodied intelligence, while its existing production capacity is expected to support future business developments [4]. - The planned production capacity for polyurethane composite materials is approximately 100 million meters annually, although actual output may vary based on customer orders [4].

Revenue Breakdown - In the first half of 2025, the revenue distribution among various product categories remained stable overall, with functional footwear materials and sofa home furnishings accounting for nearly 70% of total revenue. Functional footwear materials maintained a stable revenue share, while sofa home furnishings saw a slight decline. The automotive interior category experienced rapid growth, contributing to an approximate 30% of total revenue [2][3]. PU Material Application - PU materials are primarily used in the interior of new energy vehicles, driven by increasing consumer demands for quality, environmental performance, and functional experience. The material's high performance, including scratch resistance, durability, and low VOCs, positions it as a competitive choice for automotive interior components [3][4]. Major Clients and Growth Potential - The company has established a strong technical level and competitive advantage in the automotive interior category, serving major brands such as BYD, Toyota, Volkswagen, and others. The company is actively seeking new partnerships to enhance growth in this segment, aiming for a "low base, high growth" trajectory [4][5]. Product Value in Automotive Interiors - The value of automotive interior products varies based on the vehicle model and application, typically ranging from 2 to 20 square meters of PU synthetic leather and composite materials per vehicle [4][5]. Development Strategy - The company adheres to a development strategy focused on market orientation and customer needs, emphasizing differentiated and competitive product technologies. R&D investment has consistently exceeded 5% of revenue over the past three years, enhancing the company's technological edge and aligning with global trends towards eco-friendly solutions [5][6]. Collaboration with Automotive Brands - The company collaborates with automotive brands through a designated supplier model, ensuring compliance with quality and environmental standards. The actual orders are fulfilled by first or second-tier suppliers, who manufacture components based on the automotive brands' specifications [6][7]. New Business Development - The company is proactively exploring opportunities in emerging fields such as semiconductors and embodied intelligence, conducting market research and preliminary technology development to support future business expansion [7][8]. Production Capacity and Future Outlook - The existing production capacity is sufficient to support future business development, with 40 production lines in the main facility and 4 in Vietnam. The company plans to maintain a production capacity of approximately 1 billion meters of polyurethane composite materials annually, adaptable to various market demands [8][9].