Litong Technology: The sales revenue of the company's fluid division's core product, the oil pipe series, has declined, leading to a decrease in the overall gross profit margin.

Securities Daily, April 7 — Litong Technology stated during a survey that the main reason for the decline in the company’s comprehensive gross profit margin in 2025 is the impact of external unfavorable factors such as changes in the international trade environment, fluctuations in oil prices, and intensified market competition. The sales revenue of the company’s core product, the oil pipe series in the fluid plate segment, has decreased, leading to a slight decline in the overall gross profit margin. In 2026, the company will maintain the profitability levels of mature products such as hydraulic pipes and industrial pipes, while actively expanding related new products, striving to achieve a steady increase in the gross profit margin of related series. However, due to the significant influence of factors such as specific product order volumes, annual material cost fluctuations, and market competition, the final gross profit margin trend in 2026 carries certain uncertainties. Investors are advised to be aware of investment risks.

(Edited by Cong Kexin)