Nextool: Long-term high tariffs may lead to the loss of some customers, weakening the cost-performance advantage of products

Huang Mingjiu, Chairman of Nextool, stated at today's performance meeting that the increase in tariffs by the United States will raise the procurement costs for its customers in China, which will have a certain impact on the company's product sales in the U.S. It was introduced that the products sold to U.S. customers by Nextool are mainly forming molds in the sub-segment of extrusion molding equipment, which are the most critical units in plastic extrusion molding production lines, but their investment accounts for less than one-tenth of the entire production line. According to the survey, some customers can barely accept the increased procurement costs in the short term, but if high tariffs persist in the long term, the cost-performance advantage of the products will significantly weaken, potentially leading to the loss of some customers and increased difficulty in developing new customers