Director Hung Yu of Leoch Int'l (00842.HK) stated that he expects sales to grow by double digits in the first five months of this year. Currently, sales are strong, and the target for this year is to increase the net profit margin by 0.3 to 0.5 percentage points compared to last year. Capital expenditure is expected to be RMB 600-700 million in the next 18 months.

Regarding the United States' announcement last month to increase tariffs on Chinese electric vehicles and batteries, Hong Yu said that the impact on the company is not significant because the group supplies to the United States from its factory in Mexico. She pointed out that the group adopts a global production and sales network to reduce geopolitical risks. Another new factory in Mexico is expected to start production next year, adding capacity of about 2-3 gigawatts.

In addition, she mentioned that the group has introduced water-based lithium battery production technology to promote business expansion and has reached a strategic cooperation with Hong Kong green technology company, Asia Vets, GRST. Both parties will explore various possibilities, such as joint investment.