Naike Equipment: Long-term high tariffs may lead to loss of some customers and weaken the product's cost-effectiveness advantage.

Huang Mingjiu, chairman of Nico equipment, stated at today's performance meeting that the additional tariffs imposed by the United States will increase the cost of equipment procurement in China for its customers, which will have a certain impact on the company's product sales in the United States. It is reported that the products sold to American customers by Nico equipment are mainly forming molds in the sub-category of extrusion equipment, which are the most critical units in plastic extrusion production lines, but account for less than one-tenth of the total investment in the entire production line. According to investigations, some customers can barely accept the increase in procurement costs in the short term, but if high tariffs persist in the long term, the cost competitiveness of the products will significantly decrease, leading to potential loss of customers and increased difficulty in developing new customers.