Group 1: Investor Relations Activity - The investor relations activity was categorized as an earnings briefing meeting [2] - The meeting took place on August 25, 2025, at the company's headquarters [2] - Key personnel included the President, Vice President, CFO, Independent Director, and Securities Representative [2] Group 2: Meeting Content - The company presented its production and operational status for the first half of 2025 [2] - Future development trends were also discussed during the meeting [2] - Detailed content can be found in the attachment: meeting records from August 25, 2025 [2]

Group 1: Company Performance and Goals - The company focuses on valve equipment R&D and supply in metallurgy, energy, nuclear power, marine engineering, hydrogen energy, and semiconductor fields, aiming for steady operational performance and enhanced competitiveness to provide sustainable returns to investors [3] - The company has set a profit distribution plan for 2024, proposing a cash dividend of 1.75 yuan per 10 shares, totaling approximately 88.82 million yuan distributed on June 18, 2025 [9] - As of June 30, 2025, the company's inventory balance was approximately 1.006 billion yuan, with a provision for inventory impairment of about 9.137 million yuan [13] Group 2: Market and Investment Strategies - The company emphasizes value management and aims to enhance core competitiveness through continuous innovation and effective communication with investors [6] - The company plans to expand its international business, focusing on markets in the Middle East and Southeast Asia, particularly in the oil refining sector [21] - The company is currently in the "verification-small batch supply" stage for its semiconductor valve business, with significant upfront costs impacting short-term profitability [7] Group 3: Nuclear Power Business Insights - The company achieved new orders worth 483 million yuan in the first half of 2025, corresponding to approximately 6-7 newly approved nuclear power units [24] - The nuclear valve business is expected to see a growth rate of 15% in the first half of the year, with revenue recognition based on the actual delivery schedule of products [8] - The company has developed valve products that meet the standards for third and fourth-generation nuclear power plants, covering major domestic reactor types [25]

Group 1: Financial Performance - In the first half of 2025, the company achieved a revenue of 26.85 billion CNY and a net profit attributable to shareholders of 5.09 billion CNY [3] - In Q2 2025, revenue was 13.61 billion CNY, reflecting a quarter-on-quarter growth of 2.85%, while net profit for the same quarter was 2.71 billion CNY, with a quarter-on-quarter increase of 13.45% [3] Group 2: Product Performance - The two flagship products, "Age of Origins" and "War and Order," generated revenues of 15.02 billion CNY and 4.65 billion CNY respectively in the first half of 2025, with both games having cumulative revenues exceeding 1 billion USD [3] - "Age of Origins" has been rising in the Chinese mobile game revenue rankings as of July 2025 [3] Group 3: Market Insights - The SLG market has seen a significant increase in top products' monthly revenue ceilings, rising from 50 million USD to 200 million USD over the past two years, indicating a favorable market expansion [3] - The company aims to develop new products that can represent the current leading status in the SLG market [4] Group 4: AI Product Development - The newly launched AI product, avavox, integrates general large models with proprietary NLP technology to address commercial application challenges such as latency and AI hallucinations [5] - avavox is designed for ease of use, allowing clients to set up their voice robots in 30 seconds and utilize them in three steps, targeting high-frequency application scenarios for small and medium-sized B2B clients [6] - The pricing model for avavox is low, starting at 88 CNY per month, making it accessible for small B clients [6]

Group 1: Business Overview - The company's downstream customer industry distribution shows that consumer electronics account for approximately 40%, while furniture and home appliances together account for about 30% [3] - The overseas revenue accounted for about 30% of the total revenue in the first half of the year, marking it as an important growth point for the company [4] Group 2: Profitability and Margin - The overall profit margin fluctuation for domestic and overseas operations is currently small [3] - The decline in gross margin for export sales in the second quarter is primarily due to a reduction in high-value-added orders and price adjustments for certain orders [4] - The company has adjusted its customer structure to reduce the proportion of low-value-added clients, which has led to an increase in gross margin [9] Group 3: Overseas Operations - The company has factories in Vietnam, Thailand, Malaysia, and Mexico, with plans for a new factory in Mexico to be operational within the year [4] - The overseas business customer structure mainly consists of industries such as consumer electronics, furniture, and home appliances [4] - The company adopts a cautious approach to overseas capital expenditure, primarily through leasing and reallocating existing equipment to control investment risks [6] Group 4: Supply Chain and Competition - The company's supply share in major clients' supply chains is not high due to the multi-supplier strategy adopted by large and medium-sized clients [4] - The competitive landscape for overseas packaging is expected to become increasingly intense, but significant changes in competition may take time [5] - Localized production offers advantages over domestic production for export, including lower logistics costs and improved delivery timeliness [5] Group 5: Financial Health and Future Plans - The company has a solid cash flow, which supports its ability to continue dividends, although the amount and ratio will depend on operational and capital expenditure conditions [7] - The major shareholder's debt issue is being resolved, with all amounts due in 2025 already paid and 2026 payments proceeding as scheduled [8] - The company does not currently have plans for equity incentives or financing [9]

Financial Performance - In the first half of 2025, the company achieved revenue of 1.08 billion CNY and a net profit of 400 million CNY, showing a year-on-year decline [2] - The decline in revenue is primarily due to a decrease of approximately 86.1 million CNY in light asset output business income [2] - Operating cash flow increased to 722 million CNY, maintaining growth year-on-year [2] - Total operating costs rose by 7.98% year-on-year, driven by increased advertising and labor costs [2] Strategic Initiatives - The company is focusing on enhancing visitor experience through high-interaction activities and content innovation, including influencer collaborations and high-end family programs [1][2] - A significant upgrade of the Hangzhou project is underway, integrating Song culture with modern elements to create a comprehensive cultural performance kingdom [3][4] - The company plans to expand its offerings with diverse performances and enhance the overall visitor experience [3][4] Market Positioning - The company is targeting key consumer demographics, including families, women, and Gen Z, adapting to the trend of increasing individual and younger visitors [8] - The company maintains a stable pricing strategy, avoiding low-price competition to protect brand integrity [8][9] Future Growth Prospects - The company has signed two new light asset projects in Qingdao and Taizhou, with a total order value of 520 million CNY, expected to open in 2026 and 2028 [12][13] - The company is exploring international expansion opportunities, particularly in Thailand, while considering various investment strategies [13][15] - The company aims to achieve long-term sustainable growth by enhancing performance quality and expanding its market presence [15] Dividend Policy - The planned cash dividend for 2024 is 0.2 CNY per share, with a total cash dividend amount of 525 million CNY, reflecting a 100% increase from 2023 [10]

Group 1: Financial Performance - The company achieved operating revenue of ¥3,706,976,517.27, a decrease of 9.02% year-on-year. Excluding the impact of the wireless communication module business, revenue increased by 23.49% [3] - The net profit attributable to shareholders was ¥217,901,677.71, a decrease of 34.66% year-on-year. Excluding the impact of the wireless communication module business, net profit increased by 6.54% [3] Group 2: Business Growth Drivers - Revenue growth was primarily driven by the rapid expansion of FWA (Fixed Wireless Access) and solution businesses [3] - The FWA business experienced significant growth, with a focus on North America and India, where market penetration remains low, indicating substantial future growth potential [4] Group 3: Margin and Product Development - The overall gross margin decreased due to changes in product shipment structure after the sale of the wireless communication module business. However, the gross margin is expected to improve as the solution business, which has a higher margin, increases its share [3] - The company has developed an AI technology platform, AI Stack, to support efficient inference of mainstream models across different chip platforms, which is expected to enhance product offerings in various verticals [4] Group 4: Future Outlook and Strategic Initiatives - The company plans to invest 55% of the funds raised from the Hong Kong listing into the development of edge AI and robotics businesses, indicating a strong commitment to these sectors [4] - The competitive landscape for automotive modules is expected to remain clear, with the company holding a significant advantage in the smart module solutions for new energy vehicles [5]

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].

Financial Performance - In the first half of 2025, the company achieved operating revenue of 582 million CNY, reflecting a decline due to strategic contraction of low-margin businesses and short-term impacts from business transformation [3] - Net profit attributable to shareholders reached 12.69 million CNY, a year-on-year increase of 65.75% [3] - Gross margin improved by 2.23 percentage points to 49.20% compared to the same period in 2024 [3] - Sales and management expenses decreased by 19.46% and 17.03% respectively, indicating effective cost control [3] - Net cash flow from operating activities improved significantly to 6.7 million CNY, compared to -48.44 million CNY in the previous year [3] AI Strategy and Development - The company invested 180 million CNY in R&D in 2024, accounting for 11.96% of operating revenue [4] - Significant upgrades were made to the "What Worth Buying" app, enhancing user decision-making through AI-driven features [4][6] - The AI shopping assistant was upgraded from "Xiao Zhi" to "Zhang Da Ma," focusing on user efficiency and personalized shopping experiences [12] - The monthly average consumption of tokens for third-party model APIs reached 73.634 billion in June 2025, an increase of 84.10% from December 2024 [5] - The "Hai Na" MCP Server recorded over 8 million calls in June 2025, with a month-on-month growth exceeding 80% [5] Market Trends and Future Outlook - The e-commerce sector exhibits seasonal characteristics, with the second half of the year typically showing stronger performance [5] - The company anticipates a narrowing of revenue decline in the second half, supported by the peak shopping season [8] - The introduction of national subsidy policies has positively impacted GMV, with a 13% year-on-year increase during the 618 shopping festival [9] - Emerging categories such as new energy vehicles and local services have shown significant growth, validating the company's product iteration strategy [10] User Engagement and Growth Strategies - The new app version has led to a 15% increase in average GMV per user and a 5% increase in content access duration [6] - The company plans to enhance user acquisition efforts in the second half, focusing on expanding new channels and improving user experience [8] - The transition to interest-based consumption has resulted in a nearly 20% increase in user engagement and a retention rate improvement of over 9 percentage points [7] International Expansion - The company has launched local versions of "What Worth Buying" in Thailand and Indonesia, with plans to expand to Vietnam, Malaysia, and Saudi Arabia [12] - The international strategy focuses on content and smart marketing, leveraging AI tools to assist Chinese brands in establishing recognition abroad [12] Conclusion and Future Vision - The CEO emphasized the importance of AI in driving future growth, with a commitment to increasing R&D investment related to AI [15] - The company aims to create unique AI-driven products that enhance consumer decision-making and improve overall user experience [16] - The long-term vision includes establishing a strong position in the AI-driven consumer content ecosystem, balancing both C-end and B-end applications [13]

Financial Performance - In the first half of 2025, the company achieved operating revenue of 138,108.41 million yuan, a year-on-year increase of 23.20% [4] - The net profit attributable to shareholders was 2,766.64 million yuan, a year-on-year decrease of 44.48% [4] - Total assets at the end of the reporting period were 1,002,120.65 million yuan, a decrease of 0.55% from the beginning of the period [4] - Net assets attributable to shareholders increased by 9.80% to 380,331.28 million yuan [4] Order Status - As of the disclosure date of the 2025 semi-annual report, the total amount of orders on hand was approximately 36.09 billion yuan, with semiconductor orders at about 18.23 billion yuan, display orders at approximately 14.40 billion yuan, and new energy orders at about 3.46 billion yuan [4][5] R&D Investment - R&D investment for the first half of 2025 was 31,999.90 million yuan, a year-on-year increase of 6.31%, accounting for 23.17% of operating revenue [6] - R&D investment in the semiconductor testing field was 16,650.78 million yuan, an increase of 24.37% year-on-year [6] - R&D investment in the display testing field was 13,033.60 million yuan, a decrease of 3.80% year-on-year [6] - R&D investment in the new energy field was 2,315.52 million yuan, a decrease of 26.81% year-on-year [6] Semiconductor Sector - The company is a leading enterprise in the domestic semiconductor testing equipment field, with a comprehensive product layout in front-end, advanced packaging, and back-end testing technologies [7] - The subsidiary Wuhan Jinghong focuses on automatic test equipment (ATE) and has achieved batch orders from top domestic clients [7] - The company has established a strategic partnership with Hubei Xingchen to enhance its advanced packaging technology capabilities [9] Display Sector - The display sector achieved sales revenue of 67,070.68 million yuan, a year-on-year decrease of 13.54% [9] - The net profit attributable to shareholders in the display sector was 2,775.07 million yuan, a year-on-year decrease of 66.08% [9] - The gross margin in the display sector was 43.09%, an increase of 1.62% year-on-year [9] New Energy Sector - In the new energy sector, revenue was 11,972.94 million yuan, a year-on-year increase of 27.32% [14] - R&D investment in the new energy sector was reduced by 26.81% to 2,315.52 million yuan [14]

Company Overview - The company is a leading domestic electronic materials enterprise focused on semiconductor and new energy applications [1] - Main products include high-purity wet electronic chemicals, photoresists, and lithium battery materials, used in various processes in semiconductor and lithium battery industries [1] Operational Achievements - Achieved significant breakthroughs against international competitors, establishing domestic technological leadership, maximum production capacity, and a leading market share [2] - High-purity hydrogen peroxide has a metal impurity content of less than 1 ppt, reaching the detection limits of advanced analytical instruments [2] - The company has built four production bases with a total capacity of nearly 300,000 tons, ensuring product quality and cost advantages [2] - High-purity hydrogen peroxide has become the largest domestic supplier with a market share exceeding 40% [2] Financial Performance - Revenue increased by 10.68% to approximately 768 million CNY, with net profit reaching 69.75 million CNY, a year-on-year increase of 1,501.66% [3] - Operating cash flow improved by 44.48%, indicating healthy cash flow [3] Product-Specific Insights - Photoresist revenue for the first half of 2025 reached 105.87 million CNY, a year-on-year growth of 12.36% [4] - High-purity hydrogen peroxide sales volume increased by over 55% in the first half of 2025 [7] - High-purity ammonia, sulfuric acid, and nitric acid sales volumes grew by 8.45%, 86.20%, and 48.44% respectively [8] Market Competition - Competition in the high-purity chemical sector has intensified, but the company maintains a strong position due to its established production capacity and product quality [7] - The company began capacity expansion for high-purity hydrogen peroxide 3-5 years ago, solidifying its market leadership [7] Future Outlook - The company plans to assess market conditions and customer needs before deciding on further capacity expansions [9] - The restructuring project for Hubei Jingrui is in progress, with the project draft submitted to the Shenzhen Stock Exchange [10]