1. Among the company's main products, which segment will contribute most to future revenue growth?

In recent years, suspension system springs have accounted for a high proportion of overall revenue. Once the 7.21-million-unit automotive spring industrialization project is completed, sales revenue from suspension system springs is expected to increase significantly further.

2. Why is the gross margin of suspension system springs much lower than other main products?

Suspension system springs have relatively high material costs and large individual value, making customers more price-sensitive for this product category.

3. For products with a 50% gross margin, how sustainable is this, and is there a risk of customers pushing down profits?

High-margin products such as body and interior springs have relatively low material cost ratios and low individual values. On one hand, customers are less price-sensitive for these products. On the other hand, although the unit price is lower, the process is still complex and the variety and batch sizes are numerous, placing high demands on the spring manufacturer's technology, process, capacity, and management — thus maintaining a high gross margin.

4. Which products does the company prioritize for future development, and what are their market shares?

Suspension system springs and body/interior springs account for a high proportion of total sales. In 2016, the market share of suspension springs within suspension system springs was approximately 4.4%, and stabilizer bars approximately 1.9%. No official data is available for body and interior spring market share.

5. What technical areas is the company currently focusing on in R&D, and are there specific mass-production plans?

Please refer to the relevant content in the full text of the Q1 2017 report for the company's R&D and mass-production plans.

6. Who are the company's main component suppliers and OEM customers?

The company's main direct component customers include Mando, Nexteer Zhuji, and Chengdu Jiuding. OEM customers include Geely, Changan, and BAIC. Vehicle models served directly or indirectly include Mazda 3, Great Wall Haval series, Changan CS75, Huansu S2/S3, Weiwang M20, Haima M3/M5, Ford Focus, and others.