In the second half of 2025, multiple challenges stemming from geopolitical and economic environment will persist. The Group will adhere to the strategic principle of “seeking progress while ensuring stability”, and implement its layout strategy of “balancing domestic and overseas operations with diversified synergy”. In addition to focusing on and seizing national policy trends to maintain its existing customer base and attract new customers, the Group will also target emerging overseas markets to develop a diversified customer portfolio to mitigate risks from policy fluctuations in any single market.

Currently, affected by geopolitics and market volatility, some customers slowed down their ordering pace. Though the short-term visibility is limited, customer orders have gradually stabilised when compared with the adjustment period in April this year. The Group will strive to steadily increase order volume, taking advantage of the domestic supportive policies. For export orders related to overseas end markets, the Group will actively capture growth opportunities by optimising production flexibility and customer base structure.

The Group’s sales point in Vietnam, completed at the end of June 2024, has now achieved steady operation, which clearly confirms the strong potential of the Southeast Asian market. The Group plans to rationally allocate resources from its existing profitable business and identify regions with a stable investment environment and ample market potential to prepare for the establishment of overseas production bases.

Meanwhile, it will also strengthen development of end-customers in Southeast Asia and Europe to reduce the reliance on the US export chain end, as well as actively explore development opportunities in industries, such as automobiles and home appliances, that enjoy national support, deepening innovation in high-value-added application scenarios to groom new business growth drivers. Through the three-pronged approach of diversifying “origin of production, customer sources and business”, the Group will enhance its risk resistance and improve its sustainable development capabilities.

In addition, as the fluctuations in customer orders also led to frequent adjustments to production schedules, the Group will continue to optimise cost management and production plans to enhance the flexibility of capacity allocation. It will also dynamically adjust inventory strategy to balance the cost advantages of bulk purchasing and the demand for stocking up for urgent orders. In the future, the Group will also continue to adopt its prudent financial management approach and optimise its financing structure to consolidate its capital strength to cope with numerous changes in the market.

Despite the complex and volatile macro environment fraught with challenges, under the leadership of a professional management team and the hard work and dedication of all employees, the Group remains confident in overcoming difficulties. The Group will adhere to its professional and prudent management strategy and pragmatic approach, continuously strengthening product innovation and cost control to steadily enhance core competitiveness. The Group will also be dedicated to promoting synergistic growth in business scale and profitability, striving for the best returns for all stakeholders.