Yitong New Materials: The battery powder has been increasing rapidly with the development of downstream lithium iron phosphate battery business.

Yitong New Materials recently stated in a conference call that, in terms of profit margin, the profit margin of traditional powder metallurgy powder is about 20%; the profit margin of battery powder is lower than that of iron powder used in powder metallurgy due to fewer processes. The forging business is currently in the capacity climbing stage, not yet fully reaching production capacity, with relatively higher labor costs and depreciation expenses per unit product, leading to a lower profit margin compared to traditional iron powder used in powder metallurgy. Traditional iron powder used in powder metallurgy maintains relatively stable growth, while battery powder is growing rapidly with the development of downstream lithium iron phosphate battery business. The forging business has a large market space, and due to the company's relatively small business foundation last year, it is experiencing relatively fast growth this year.