A：In 2025, the recovery of domestic market demand and the acceleration of domestic substitution will create development space for domestic high-end material suppliers. Despite the overall slowdown in overseas manufacturing demand and the impact of external factors such as US tariffs, Tianhong International's turnover this year still fell slightly by 2.3, reaching RMB 4.719 billion. However, the group significantly increased its pre-tax profit through the strategy of reducing costs and increasing efficiency, rising to RMB 0.469 billion, up 15% year-on-year; the company's net profit also increased to RMB 0.4 billion billion, the total comprehensive income increased by 47.8, and the profitability was significantly improved.

A：From the business point of view, die steel, high-speed steel, auto repair tools, titanium alloy business achieved revenue of 22.92, 7.92, 9.24 and 0.626 billion yuan respectively. Among them, mold steel as the group's main source of income, the gross margin has been repaired and increased to 14.5 during the year; high-speed steel, auto repair tools, titanium alloy business gross margin remained at 16.7, 28.3 and 26.8, respectively. Among the four major business segments, the gross profit margin of the main products continued to rise year-on-year and month-on-month in the second half of the year, indicating that the company's profitability has steadily increased and entered a new stage of development.

A：The company has successfully made breakthroughs in the field of high-end titanium alloy applications, consolidated the production capacity base through production line commissioning and technology expansion, and achieved the first single delivery and joint development agreement in the aerospace field. In addition, the company and Jiangsu moral cooperation layout titanium alloy powder project, expand the additive manufacturing track, the first product successfully delivered transportation power, to help high-end equipment and robot localization. At the same time, the company has achieved new breakthroughs in medical equipment, aerospace and other fields, and jointly developed a new type of high-grade steel technology for ball screw with Fujian Hengerda. Four materials in 2025 selected national "two new" technology products, brand influence gradually increased, its Tiangong Precision won the title of the world's best supplier. The Group's technical strength in powder metallurgy and laser cladding is reflected, such as the production of ultra-high purity spherical titanium alloy powder by plasma atomization technology, and a major breakthrough in nuclear fusion materials.

A：The Group has strengthened its cooperation with Shanghai Lid in the mold repair market, using its laser cladding and laser spraying capabilities to seize the first opportunity in the high-end mold steel service market. In the field of new energy vehicles, relying on powder glasses and into the molding technology accumulation, successful breakthrough and mass production including glue mouth sleeve, from the head barrel and shunt cone four core components. In addition, the Group led the joint Tsinghua University, Ningde Times and other units to develop new die-casting die steel powder glasses and key technologies for manufacturing positive materials, accelerate the transformation of results and promote the upgrading of the powder die steel industry.

A：On the financial side, although the Group's operating income declined in 2025, its operating profit and profitability were significantly improved through innovative processes and cost-effective strategies. Among them, the sales volume, average selling price and overall turnover of die steel products have increased, benefiting from the development of domestic new energy automobile industry; the sales volume of high-speed steel has decreased but the average selling price has increased, and the turnover of the overall high-speed steel division has decreased but the gross profit margin has increased; the sales volume of cutting tools has increased, but the gross profit margin has decreased due to the decline in demand in the downstream consumer electronics field. Despite the complexity of the international trade environment, the Group achieved steady growth in net profit attributable to its parent.

A：This year's cost structure remains stable and is basically the same as last year. Core and other materials account for 71.6 percent of the cost. The Group's current amount of cash and cash equivalents is RMB 1.07 billion. In terms of trade turnover days, trade turnover days in 2025 were 233 days, trade payables turnover days were 114 days, and inventory turnover days steadily increased slightly to 247 days.

A：The group's capital expenditure this year increased to RMB 0.325 billion. In the future, it will continue to invest 0.31 billion RMB for the project of annual output of 3000 tons of high-end Taishi and Bang materials, and plans to invest 20 million RMB to build a precision tool research institute.

A：The Group's dividend payout ratio has steadily increased and the size of the payout has continued to increase. The dividend payout ratio for the year remained at 35%, with a record dividend payout amount of RMB 0.14 billion for the year.

A：The Group will lead high-end manufacturing with powder metallurgy as the core, promote the continuous upgrading of tool and die steel products, and consolidate and enhance its leading position in the industry. At the same time, the second phase of the powder metallurgy project is planned, the production capacity is expanded by 5000 tons, and the 20 million is invested in the construction of a precision tool research institute to strengthen the competitive advantage. Powder metallurgy technology will be applied to the field of high-end manufacturing and nuclear fusion materials, realizing the leapfrog development from materials to products, and promoting the performance foundation and industrial application of additive manufacturing raw materials.

A：Titanium Light shares in 2025 to seize the industry's high-end precision transformation of the strategic opportunity, successfully delivered the first space-grade fasteners with titanium alloy wire orders, and opened the traditional titanium and powder titanium material two-line layout. By improving production capacity and promoting high-end product certification, optimizing product lines and profit structure, the annual operating income was 0.63 billion yuan, with a gross profit margin of 25.7, and the net profit attributable to shareholders of listed companies was 0.14 billion yuan, with the net profit margin rising by 0.7 percentage points to 22.2%.

A：In 2025, the main business income was 0.596 billion yuan, of which the sales volume of titanium and titanium alloy wire rod, plate and pipe changed respectively, the price increased, and the gross profit margin increased. At the same time, the company successfully landed on the Beijing Stock Exchange, surging more than 400 on the first day, and achieved good results in many fields, such as being selected into the list of green factories in Jiangsu Province, and some products obtaining new technology product certification.

A：The company is committed to the late preparation of the wood project with an annual output of 3000 tons of high-end tai chi titanium alloy rod wire. two production lines have been put into production and have been recognized by customers. it is expected to expand more applications in the field of consumer electronics, such as mobile phone frames, keys, watchbands, etc., and gradually develop new material markets for folding mobile phones, tablet computers and wearable devices.

A：Through the establishment of the joint company Tiangong Titanium, the company has introduced and mastered plasma gas atomization technology, and used high-end high-efficiency plasma atomization equipment to improve production efficiency, subdivide the yield and reduce energy consumption control costs. At present, the company's titanium alloy powder material has good sphericity, high spheroidization and stable process stability, and is the only enterprise in the world with a full-process titanium alloy powder production line.

A：Tiangong Titanium has built the first generation plasma climate pulverizing equipment with an annual output of 200 tons, and the second generation plasma equipment has completed the overall setup, and all contracts and procurement contracts have been signed. The initial planning target is 3000 tons per year and the first phase production capacity is 1000 tons. The second-generation plasma plan was officially launched in 2026 and is expected to achieve full implementation of 1000 tons of production capacity in the second half of this year. With the scale growth of the global additive manufacturing market, the demand for metal powder materials has increased dramatically. Although the domestic titanium alloy powder material production capacity and technical reserves are still in the early stage of development, but with the gradual maturity of the powder metallurgy process, the market scale is expected to develop in the long run. The company is aiming at the future layout of this important industry and starting related materials construction projects.

A：Titanium alloy materials are in great demand in the aerospace field, especially in high-strength titanium alloy aerospace fasteners. The number of fasteners used in the domestic civil aviation large aircraft C919 exceeds 12 million pieces of a single aircraft, but the current localization rate is low, providing the company with a huge market stage. In the field of aerospace, powder metallurgy materials have been successfully applied to aero-engines and satellite bearings, and have obvious advantages over traditional materials, reliability has been certified, and the most advanced aero-engine bearings abroad have adopted such materials. In the field of nuclear fusion, powder metallurgy materials are necessary, such as high boron stainless steel, which has been put into use in many nuclear fusion devices at home and abroad. It is expected that the application amount in the field of nuclear fission will exceed that in the field of nuclear fusion in the future.

A：The research and development project report includes the research and development of Tiangong International's mold steel and cutting tool sectors, as well as the latest research and development of Tianhong shares. Among them, Tiangong International will introduce the research and development progress in the past one or two years, especially around 2025, as well as the research and development goals that can be achieved in the future based on the existing research and development platform and common technologies.

A：In the field of mold materials, the company focuses on the failure mode of mold materials and downstream industry pain points during the use of the end industry, and is committed to the development of new raw material design, powder metallurgy process and end-use applications. For example, the company's research and development of built-in cooling channel mold materials can reduce costs by 40% and increase life expectancy by 100, and is expanding into high-end mold markets such as integrated die casting and high-polishing molds.

A：The company in the field of humanoid robots and terminal leading enterprises cooperation, for the ML stage of humanoid robot demand, has begun to use high-end high-nitrogen steel for robot arms, feet and joints, the material has been completed in foreign countries with the use and achieved good results. With the advancement of AI work, the demand for high-end materials will gradually increase, and the company is actively preparing and developing corresponding materials to meet future market demand.

A：Due to high pressure, seawater corrosion and stress corrosion and other reasons, the traditional welding technology can not meet the requirements, so it is necessary to use thick metal parts without welding. We have developed a technology called heap-in molding that can produce weldless parts suitable for deep-sea environments.

A：Our technology platform has been established and is in communication with potential end users in Europe and China to develop a series of related components. At the same time, the UK's Paris code is one of the most advanced companies in the world that we are concerned about. They have visited us twice and the two sides are discussing possible technical and market cooperation.

A：Small reactors are mainly used to provide electricity for large AI computing centers in the United States. Because full-load operation may consume half of the electricity in the United States, the seven major computing centers currently allowed by the U.S. government basically use small reactors to generate electricity.

A：Specially designed parts in small stacks are not allowed to have welds and can only be manufactured by techniques such as isothermal and isothermal pressing. We plan to use our existing R & D platform to address this challenge and are working with Germany.

A：We are developing non-magnetic stainless steel-Austin stainless steel, which is suitable for large generator ring magnetism, and developing high nitrogen austenitic non-magnetic stainless steel to replace imported materials and apply it to non-magnetic components required for oil industry exploration.

A：In the medical field, we are developing nickel-free Austin stainless steel to meet the demand for titanium alloy alternatives for implants such as human bones, braces and stents. At the same time, for precision machining tools such as high-end medical devices and humanoid robots, we are upgrading the specifications of cutting tools and are committed to domestic substitution of imported high-end tools.

A：Tiangong shares have mastered the titanium alloy recycling technology, through the ISO14021 recycling content of more than 15% of the declaration and certification, to achieve the recycling of almost 100 percent of the scrap. A complete management and control system for recyclable materials was established, and several electron beam cold hearth furnaces were successfully put into operation. Through data analysis, the distribution of aluminum epoxy and other components was accurately controlled, and the quality and purity of recycled titanium alloy were improved. Tiangong has signed cooperation agreements with aerospace science and industry group and other enterprises, successfully developed fasteners for UAV and civil aircraft, and realized the mass production of continuous frozen beta alloy fasteners for aerospace. In the future, we will continue to develop ultra-high-strength alloys and high-temperature fasteners, and explore the application of recycled materials in the field of fasteners to improve the localization rate and reduce costs.

A：The preparation process of powder material includes starting from the raw material sponge titanium, through the pressing electrode, melting, forging, billet making until the wire stage, in which the wire is used as the parent material of plasma atomization powder. The process of plasma atomization powder production mainly includes plasma generation, which is ionized by arc to form a high-temperature and high-speed jet, which in turn melts and breaks the metal into powder. Tianhong shares have been built into the world's first full-process plasma atomized titanium alloy powder material production line.

A：The powder obtained by plasma milling has the characteristics of high purity, low oxygen content, high sphericity, good fluidity and small particle size, and less hollow powder. These characteristics can effectively reduce the formation of defects in the 3D printing process and produce high-quality 3D printing products. For example, the powder has been successfully applied to watch case batch production and mobile phone frame 3D printing, and has achieved a major breakthrough in the aerospace field from complex structural parts to integral parts.

A：The amount of overseas sales in the first quarter of this year will increase significantly compared with last year, mainly because the price increase of raw materials has more than doubled the average selling price of products. In the field of mobile phone titanium alloy, although the overall consumption is relatively small, it is expected to increase this year. Although the specific model and quantity are inconvenient to disclose, it can be confirmed that there will be a certain improvement compared with last year.

A：Plasma atomization technology is currently very mature, and Tianhong shares have the country's first full-process production line. Powder taps are feasible in replacing high-cost cemented carbide, and with the obvious price advantage of powder materials, it is expected to achieve a wider range of alternative applications. At the same time, downstream customers are actively conducting research and development tests on titanium alloy powder materials, and the industry will have a major breakthrough in the 3C field in the future.

A：The company is cooperating with the head enterprises through technical exchange, first of all, the technical identification of materials, providing samples for testing, and then gradually establishing standards to promote the application of cutting-edge materials in high-end fields.

A：Our company does have a plan to promote this project by talking to high-end customers in Europe. For new areas or unfamiliar areas, we will first test and cooperate to ensure technical and market adaptability. At the same time, the chairman is also very supportive of our strategy of turning exports to domestic sales.

A：Since we have just released the first quarter report, it is inconvenient to disclose the specific financial data. It is recommended to pay attention to our specific figures from the first half to the middle of the year. With regard to the impact of foreign exchange, the company gained nearly 0.13 billion of the exchange rate gains in the first half of this year due to exchange rate fluctuations, but its earnings fell to about 92 million in the second half of this year, bearing an exchange rate loss of more than 3700 million.

A：The company's main layout of high-end titanium field, reasonable arrangement of production capacity, but also appropriate participation in the low-end market production to ensure sufficient gross margin. The company has the most comprehensive capabilities in the entire industry chain of titanium materials, and is committed to achieving a leading position in the high-end product market, such as striving for the first or second place in the titanium alloy market in the future electronics industry and medical and health fields.

A：At present, the company has the ability to produce titanium alloy powder from sponge titanium in the whole process, and is the only enterprise in China that can produce titanium alloy materials in the whole process. The sky is the best choice for both cutting and additive manufacturing. The company is planning and investing in the second phase of the powder metallurgy project. It is expected that the powder production capacity will reach 15000 to 20000 tons, and it is expected to become the world's largest powder metallurgy company.

A：According to the 2025 development plan, high-end medical titanium has achieved a market breakthrough, the first quarter has several customers in the layout and discuss cooperation intention, is expected to achieve the second quarter from 1 to 10 application expansion.

A：The company is the only powder metallurgy enterprise in China with an annual output of more than 7000 tons. The second phase of the project plans to expand the powder metallurgy production capacity to 15000 to 20000 tons and develop powder steel products. In the future, we will carry out technical cooperation and product development with high-end cooperative units, layout in advance, and gradually expand sales with the increase of production capacity.

A：The company has two materials used in the field of nuclear fusion, one is the 304B series for shielding and the other is Raf steel. Regarding the 304B series, it has been developed to B7 level, and plans to further upgrade to B8 or even B10 level, and cooperate with Hefei Plasma Institute Joint Laboratory to promote the industrialization process of this material. Raf steel is facing high temperature performance challenges. The company is investigating and looking for cooperation units to develop powder agents. It is expected that progress will be made within one year and it will be introduced to the domestic and foreign markets.