A：In the first half of 2025, the operational highlights of Langs Corporation mainly include three aspects: Firstly, the company successfully promoted the platform strategy upgrade, transformed comprehensively from a distributor to an application merchant through four iterations of business model transformation, and adopted a light asset operation mode in 2025, greatly enhancing the company's digital empowerment and intelligent operational management capabilities. Secondly, the new electric loader business achieved strong growth, not only performing well in market expansion and revenue, but also achieving high profit margins, playing a key role in improving the overall profitability of the company. Finally, the internationalization process accelerated, with the company making breakthroughs in overseas market layout, successfully establishing a subsidiary in Indonesia, establishing a localized operation and service team, opening up a new engine for performance growth for the company. In the increasingly intense market competition environment, Langs Corporation adheres to the operating strategy of stable growth, strong internal controls, solid services, and organizational development. In the first half of 2025, it achieved impressive operational results. The company's operating scale continues to climb, with operating income increasing by nearly 18% year-on-year, and net profit also increasing to over 50 million yuan, while the Ibida business grew by 12.8% year-on-year. In addition, all branch businesses are developing evenly, the gross profit level continues to improve, the scale of managed assets and the number of customers have significantly increased, further consolidating the company's leading position in the market and promoting high-quality development of the company's operational performance.

A：In the first half of 2025, Lans Corporation actively deepened strategic cooperation with upstream and downstream companies in the industrial chain, empowered downstream companies through technology output and model innovation, and strengthened cooperation with upstream suppliers. In the meantime, the company continuously improved product technology and enriched product categories through the independent research and development of a smart asset operation management system. These measures not only solidified the company's equipment application business foundation, but also helped the company to continually enhance its competitiveness in the market competition, laying a solid foundation for long-term sustainable development.

A：Relying on brand effect and platform service capabilities, the company has net added nearly 2700 service enterprise customers, achieving a 38% year-on-year high growth, and increasing the number of major customers by 9.8%. Through refined management, brand effect enhancement, and operational efficiency improvement, the company has successfully reduced key cost rates, such as a 1.2 percentage point decrease in equipment depreciation cost rate compared to the same period last year, and a 1.5 percentage point decrease in comprehensive financing cost rate. At the same time, the effective implementation of strong network and internationalization tactics has gradually released benefits, keeping operating expense ratio basically stable, providing space for further improvement in profitability. The company's current strategic positioning is as a platform business, committed to building a global leading B2B industrial and logistics equipment high-dimensional sharing ecosystem under the empowerment of new technologies. In the future, the company will focus on three core tasks: serving B-end enterprises; focusing on industrial and logistics equipment; and building a high-dimensional sharing platform, not only for production materials and tools, but also for production services.

A：The company will steadily implement a three-step strategy of strengthening its network, expanding its product categories, and internationalization. Firstly, in terms of strengthening its network, the company will increase its offline service points through organic growth, mergers and acquisitions, and empowering partnerships, gradually achieving a goal of 1000 stores and improving customer service response efficiency. Secondly, in terms of product categories, the company will expand beyond its foundational category of forklifts to include other industrial and logistics equipment categories, building comprehensive solutions and continuously expanding into new equipment categories based on the success of electric loaders. Lastly, in terms of internationalization, the company will actively explore the potential of the domestic market while strategically expanding into overseas markets, establishing localized operational centers in regions such as Southeast Asia and the Middle East through a regional tiered strategy to enhance global service capabilities, and help to increase business scale and international status.

A：Under clear strategic guidelines and firm operational strategies, the company achieved significant results in all aspects in the first half of the year, driving continuous improvement in various investment return rates such as ROA, ROE, DPS and DVPS. In particular, EPS increased by more than 19%, ROA increased by 3% year-on-year, and both ROE and DVPS indicators achieved nearly 9% year-on-year growth, reflecting the steady enhancement of investment returns, creating long-term and upward investment value for shareholders.

A：The company needs to possess strong asset management and operational capabilities internally, and provide superior customer experience externally. These two core capabilities will be validated through 7 KPI indicators, including equipment utilization efficiency, cost, lifespan, as well as supply price, delivery time, service, and quality, etc. A total of ten systems including supply chain, service network, Internet of things, and remanufacturing will be constructed around these 7 KPI indicators to create a high-dimensional shared ecosystem platform for the B-end.

A：In 2025, the company launched a light asset operation model for platform merchants, based on the separation of asset ownership, management rights, and usage rights, to strengthen asset management and operational capabilities. Online, the company relies on a smart asset management system to integrate technologies such as the Internet of Things, wearable devices, big data, and artificial intelligence. Offline, the company relies on supply chains, service networks, and remanufacturing systems to jointly promote asset appreciation and efficiency improvement, enabling the company to quickly scale up its development.

A：Facing the complex and changing international situation and the intensifying competition in the domestic market, the company has achieved growth through timely strategic layout and diversified business strategies. Specifically, the company's strategic transformation has been significant, optimizing the business and asset structure through the light-asset operation model of platform plus services, promoting scaled development. Additionally, the new electric loader business has achieved outstanding results through proactive market development, driving the improvement of the company's profitability and rapid growth. Furthermore, the company has increased market penetration through market expansion strategies, utilizing its excellent brand advantage, rich product line, differentiated solutions, and professional service level to enhance customer satisfaction and renewal rate, thus continuously increasing equipment scale, customer base, and market share.

A：Based on a comprehensive and prudent forecast and evaluation of the current asset condition and management capabilities, the company expects that several thousand units of equipment will be fully depreciated in the fiscal years 2025 and 2026. This will keep the size of zero-depreciation assets stable and significantly increase, providing sustainable underlying asset support for the company's profit growth. Zero-depreciation assets can directly increase gross profit and net profit, strengthen market competitiveness and pricing flexibility, and validate the company's sustainable high-profit business model. With a large number of equipment fully depreciated, the overall profitability of the company will continue to strengthen, and the quality and quantity of business growth will be consistently improved.

A：The continuously expanding pool of zero depreciation assets is the stability and amplifier for the company's continued profit growth in the coming years. We are confident that with the continual growth of the zero depreciation asset pool, the company's net profit level will be on par with the top global enterprises, and bring stable and high returns for shareholders in the long term.

A：For third-party asset companies managed through the platform, we adopt a diversified cooperation model. One is a fixed platform management fee settlement method, mainly targeting clients as asset holders, receiving a fixed platform management fee on a monthly basis. The other is an asset subleasing settlement model, targeting manufacturers or financial institutions as asset holders, where the third party manages asset and service operations through the Frans platform. The third party earns a fixed asset value and pays sublease rent to Frans in the form of asset subleasing, while Frans charges the overall asset and service fee for the scheme.

A：In the case of the fixed platform management fee settlement model, as the asset holder and user are the same party (customer), there is no need to consider asset appreciation income, thus better reflecting the strong management value of Frans. This settlement model has the advantage of high returns, providing higher return performance than the self-owned asset business. As for the asset sublease fee settlement model, since the asset holder bears risks and receives part of the revenue from holding the assets, the overall gross profit margin may be slightly lower by about 1 to 3 percentage points, but it helps the company to transform into a light asset model and optimize asset structure.

A：The company's maintenance and repair income achieved a growth of over 40% in the first half of 2025, mainly benefiting from the scale and revenue growth driven by the platform-based operation model. After the company transformed into a platform-based operation model with light assets, the platform plus service operation model has been widely recognized. End users choose to unify the management of their equipment under Flounce to achieve cost reduction and efficiency improvement. This not only promoted the growth of maintenance and repair income, but also effectively promoted the development of non-application businesses.

A：After the upgrade of the group's large service center, optimization measures such as integrating service resources and upgrading service systems significantly increased the market recognition of maintenance and warranty plans, driving a significant increase in business volume and customer numbers. Additionally, the benefits of the acquisition of Lychee You are mainly reflected in the rapid expansion of the national service network coverage, providing strong support for revenue growth.

A：Maintaining and repairing businesses and application businesses work collectively and develop together. Specifically, this is manifested in the synergistic effect that strengthens customer retention and increases cross-selling opportunities. Maintenance and repair data drives the optimization of application business models, assisting the company in providing precise and differentiated service solutions. Additionally, the good financial performance achieved enables balanced development with application businesses. The stable cash flow from maintenance and repair services helps offset initial investments in application businesses, improving overall cash flow.

A：The company has implemented a forward-looking strategic defense layout for AGV forklifts, mastered core technologies such as navigation algorithms and integrated scheduling, and successfully commercialized products in different application scenarios. Currently, the company mainly enters the market through sales, while increasing research and development investment in the intelligent field, improving the versatility and technical maturity of IGV products; changing sales models, combining asset operation and management advantages, and promoting the popularity of IGV forklifts through leasing and overall solutions, further consolidating the company's leading position in the industry.

A：The proposed 10% dividend rate in 2024 is the first dividend payment implemented by the company after achieving good performance in its first full financial year after going public, in order to timely reward shareholders, marking the beginning of a clear and stable dividend policy for the company. This ratio is considered a conservative starting point rather than a long-term fixed upper or lower limit, taking into account the current development stage, future strategic funding needs, and current net profit level. As the company transitions to a light asset platform model, capital expenditure requirements decrease and operating cash flow strengthens. The company's management expects to gradually increase the dividend ratio or total amount in the future to share the company's operating results with shareholders, and continue to increase profit distribution after meeting future development funding needs.

A：The company's future dividend plan, proportion, timing and form will strictly comply with the company's articles of association and dividend policy. The decision will be made prudently by the board of directors and shareholders' meeting after comprehensive consideration of actual operating results, cash flow situation, major investment layout and long-term development funding needs. The company promises to maintain transparent communication with the market, and reminds investors to pay attention to the company's official announcements to obtain specific dividend distribution arrangements.

A：The company follows the principle that economics is an extension of politics, and internationalizes its expansion in friendly countries with the Belt and Road policy. It adopts a regional tiered strategy, prioritizing regions with well-developed infrastructure and clear logistics needs, such as Vietnam, Thailand, Malaysia, Saudi Arabia, and the United Arab Emirates. In terms of resource investment, the company will focus on building localized service capabilities, enhancing product technology, market development, and brand promotion. The synergy between the domestic and international markets is reflected in multiple aspects such as customers, technology, and supply chain. The company will expand internationally by serving domestic customers going abroad, enhancing customer stickiness, and seizing overseas service opportunities. At the same time, it will use overseas data feedback to improve product applicability and performance, achieving close interaction and dual-cycle development of the domestic and international markets.

A：While digging deep into the potential demand of domestic market, the company actively layout overseas market in order to achieve efficient coordinated development of domestic and international business. The company replicates the mature operational model domestically to overseas, by improving customer service penetration, optimizing supply chain resources, and enhancing asset operation efficiency, thus driving rapid expansion of the company's business scale.