Suncha Technology: The impact of the U.S. tariff increase on business in 2025 is limited

Suncha Technology stated during an institutional research that the U.S. tariff increase is a common action targeting Chinese products exported to the U.S., which will have a certain impact on the company's export business, especially for non-bamboo and non-wood materials. However, this impact will not occur immediately, as export business orders are scheduled in advance, limiting the impact on business in 2025. The expansion of new business in 2026 may face some challenges. In response to the potential risks posed by this specific U.S. market, the company will actively take countermeasures. First, the company's foreign trade business has markets beyond the U.S., including Europe and countries along the "Belt and Road," and the company will continue to diversify its customer structure. Second, the company's pre-established factory in Vietnam can alleviate some tariff pressure. Meanwhile, leveraging its strong supply chain advantages, the company will enhance its ODM customization service capabilities to maintain a unique competitive advantage in a complex environment and continuously adjust flexibly according to market conditions