Naipu Mining Machinery: The gross margin overseas is expected to further improve in the future.

Recently, Nape Mining Machinery stated in an investor relations event that overseas gross profit margins are expected to improve further in the future. On one hand, as overseas revenue increases, the proportion of fixed asset depreciation and amortization to revenue is expected to decline from the current 11% to a reasonable level. On the other hand, a low-margin overseas OEM client will terminate its annual agreement this year, leading to a decrease in the revenue share from this overseas client in the future, which will be beneficial for the overall overseas gross profit margin level.