The company stated:
1. In the report period, the company's accounts receivables were better than expected, especially for customers with long-term accounts receivable, and the company reversed the provision for bad debts of accounts receivable. The company continued to strengthen the management and collection of accounts receivable, and will continue to recover the previous accounts receivable.
2. In the report period, according to the relevant policies of military products VAT, the VAT refunds for the sale of military products in the previous period produced other income.
3. With the comprehensive restoration of domestic military procurement after the implementation of national defense and military reform measures, its impact on the company's early military product extension is gradually being eliminated, and the company's military product development, finalization and ordering tasks are gradually picking up. During the reporting period, the company's existing military model research and production tasks were fully restored, and the traditional military industry achieved stable and continuous supply. The company accelerated the batch production of new models and successful models, and won the bidding and finalization of military products in various military branches. The model research and production tasks are also gradually increasing, and the new military model products are ordered and gradually delivered in batches.
4. The company has fully built the “China Infrared Core” with independent intellectual property rights, and has three completely independent and controllable infrared focal plane green laser pointer detector production lines to mass production and scale application. As the country has clearly stated that domestic military model products need to be fully localized, the application requirements of the company's infrared focal plane detectors in domestic military products are growing rapidly. The company's infrared focal plane detectors have been gradually finalized and delivered in batches. As well as the influence of international politics and economic environment, the export sales of the company's infrared focal plane detectors also achieved a major breakthrough, and demand showed a rapid upward trend.