On October 14, Zhongwu drone (688297.SH) stated during specific object inquiries that there have been some pressures in the military trade market this year. On one hand, it is due to the increasingly fierce competition in the military trade market, and influenced by multiple factors such as geopolitics, resulting in high uncertainty. On the other hand, the company's products have already been extensively deployed overseas earlier, sold to more than ten countries, currently in a period of slow demand after a large batch of equipment, with customers' demands continuously changing, constantly pursuing modernization and performance upgrades of equipment, having higher expectations and intentions for improving the performance of existing products and launching new products in the future.

Starting next year, with the clear international situation and the launch of new company products, it is expected that there will be a positive change in the military trade situation. The company continues to intensify its market development efforts, has conducted multiple rounds of communication with existing and potential customers, the expansion situation is currently good, with sufficient order leads. We continue to closely align with customer demands, deepen our understanding of market demands, laying a good foundation for the improvement of new products, product promotion, and the realization of market order leads. We are also accelerating the development of new products, improving response speed and service levels. With the introduction of new products and models like Wing Loong-1E, Wing Loong-2D, Wing Loong-3, the military trade market situation is expected to improve. In addition, as regional situations change, the demand for international drones will increase, which will promote the company's future growth in military trade orders.