Phil Hua: It is expected that by 2025, the business revenue from quartz electronic fabric will account for approximately 5% of the company's total operating income.

Philiva announced on February 26 that the company’s stock prices for three consecutive trading days on February 24, 25, and 26, 2026, experienced a cumulative deviation of 33.05% (exceeding 30%), which qualifies as abnormal stock trading fluctuations according to Shenzhen Stock Exchange regulations. The company has noted that recent market attention to electronic fabrics and their applications in electronic circuit manufacturing has increased. Currently, the company’s ultra-thin quartz electronic fabric products are in the small-scale testing phase with clients and undergoing certification by end customers. The company expects that in 2025, quartz electronic fabric will account for approximately 5% of its total operating revenue (unaudited), representing a small proportion and not significantly impacting the company’s performance. The quartz electronic fabric project is also subject to many uncertainties, including product iteration and compatibility testing by clients. Business cooperation and orders are highly uncertain, and there is a risk that future business development may fall short of expectations.