Jiuzhou Metal Group 2026 First Half Work Summary and Second Half Work Plan Meeting

Building on past successes, reviewing the first half of the year's achievements

Company Overall Performance Review

The company's performance steadily increased, with significant results in cost control and a continued improvement in profitability. Overseas markets, with Southeast Asia as the core, accounted for 45% of sales. In terms of market layout and sales data, the company's top ten sales countries in the first half of the year covered the three core regions of Asia, Europe, and the Middle East. In the Asian market, India and Russia remained at the top; in the European market, Spain, the UK, and France contributed significantly to performance growth; in the Middle East, Kuwait, the UAE, and Iran successfully entered the list, while breakthroughs were achieved in emerging markets such as Mongolia and Colombia. Leveraging its existing mature regional network, the company steadily consolidated its traditional advantageous markets, continued to explore opportunities in emerging markets, and continuously expanded its overall business scope. Going forward, the company will continue to deepen its presence in core target countries, optimize regional operation strategies accordingly, and further unleash the growth potential of each segment.

Performance Insights and Outlook

This mid-year review focuses on the overall operating situation in the first half of the year, comprehensively analyzing the achievements and shortcomings of the first half of the year from five dimensions: financial and operating data, overseas market layout, core product structure, progress of annual targets, and typical cases of key projects. It also scientifically plans and refines the implementation of key tasks for the second half of the year, taking into account the current industry environment and the company's own development.

Departmental Review and Work Summary

Finance Department Work Summary

First-half revenue increased by 15% year-on-year, net profit margin improved by 2.5 percentage points, cash flow was healthy, and the phased operating targets were exceeded. Cost reduction and efficiency improvement efforts were effective, with operating costs decreasing by 8% year-on-year. The company continuously improved its internal financial control system, promoted the transformation of the finance function towards a management-oriented approach, and provided reliable data support for overall business decision-making. In the second half of the year, we will continue to implement refined cost control, routinely investigate various financial risks, conduct operational data analysis in conjunction with the business side, and rely on standardized budget management to ensure the smooth achievement of the annual operating targets.

Business Department Work Summary

In the first half of the year, we broke down the sales performance data of each product line, compared and analyzed the performance fluctuations and core growth drivers in each region; we tracked competitors' pricing strategies in real time, investigated the market development progress in various regions, and collected customer needs to explore new business growth points. We continued to build and improve the sales talent training system, routinely organized business training for all employees, followed up on the growth and performance of new employees, and steadily improved the sales conversion rate. In the second half of the year, we will break down and refine the annual performance targets, deepen our presence in key markets, expand social media sales channels, increase the size of our ground sales team, and intensify our efforts in developing offline markets to drive steady growth in overall sales.

Purchasing Department Work Summary

In the first half of the year, through supplier price negotiations and centralized bulk purchasing, we achieved an 8% year-on-year decrease in procurement costs, exceeding our phased cost reduction target. We established a multi-level supplier reserve, achieving a 99.5% on-time delivery rate for core materials, ensuring stable production and supply. We launched a digital procurement management platform, standardizing compliance procedures throughout the entire process, achieving a 100% procurement compliance rate. In the second half of the year, we will continue to explore cost reduction opportunities, expand our reserve of high-quality suppliers, upgrade our digital procurement system, and strictly adhere to the bottom line of full-process compliance management.

Documentation Department Work Summary

In the first half of the year, our document processing accuracy rate was 99.8%, and our on-time delivery rate was 100%. We completed the digital transformation of 5 document processes, reducing the average document processing time by 25% and significantly lowering the human error rate. In the second half of the year, we will iterate and improve the intelligent document review system, expand the application scenarios of cross-border electronic documents, establish a full-process compliance risk early warning mechanism, and solidify the foundation for foreign trade document business service guarantees.

Human Resources Department Work Summary

In the first half of the year, we reviewed personnel turnover and on-the-job performance, optimized human resources work processes, and improved the company's management system; we also conducted solid new employee training to enhance team cohesion and employee sense of belonging. In the second half of the year, we will implement refined personnel management, iterate and optimize the training system, broaden talent introduction channels, continuously attract outstanding new talents in the industry, stabilize the core talent team, and consolidate the team's development synergy.

General Manager's Work Summary and Work Deployment

Currently, the industry faces significant challenges due to product homogenization, continuously rising customer acquisition costs, and shrinking profit margins. Coupled with fluctuating raw material prices and unstable cross-border logistics, these factors pose substantial challenges to precise control over product delivery cycles and costs. In the second half of the year, all departments will focus on achieving a 30% revenue growth for the year, breaking down targets to each business line and quarter, implementing weekly tracking and monthly review mechanisms to ensure the goals are achievable, executable, and measurable. We will also streamline talent promotion channels, improve cross-departmental collaboration processes, and support regular skills training and corporate culture building to create a professional and efficient business team.

Departments will collaborate to advance key tasks: The Business Development Department will continue to expand the market, promoting high-value-added customized products to further increase market penetration; the Procurement Department will deepen long-term strategic cooperation with core suppliers to continuously reduce procurement costs; the Documentation Department will organize professional skills certification training for all employees to improve the team's compliance operations and risk management capabilities; and the Finance Department will conduct comprehensive tax planning to reasonably save on tax expenditures, working together to achieve the annual performance target.