湖北振华化学股份有限公司 2024 年年度股东会会议资料 振华股份 2025 年 5 月 19 日 湖北振华化学股份有限公司 2024 年年度股东会会议须知 为维护全体股东的合法权益，确保公司股东会顺利召开，根据中国证券监督 管理委员会《上市公司股东大会规则》及《公司章程》等有关规定，特制定股东 会须知，望出席股东会的全体人员遵守执行。 一、本公司根据《公司法》《证券法》《上市公司股东大会规则》及《公司 章程》等有关规定，认真做好召开股东会的各项工作。 二、本公司证券部，具体负责大会有关程序方面的事宜。 三、为保证本次大会的严肃性和正常秩序，切实维护股东的合法权益，务必 请出席大会的股东或股东代理人（以下统称"股东"）及相关人员准时到达会场 签到确认参会资格。不在签到薄上登记签到，或会议正式开始后没有统计在会议 公布股权数之内的股东，可以参加会议，但不参加表决、质询和发言。 四、股东参加股东会，依法享有发言权、质询权、表决权等各项权利，并认 真履行其法定义务，不得侵犯其他股东的合法权益，不得扰乱大会的正常秩序。 五、股东有权就大会议案提出问题，主持人视会议具体情况安排股东发言。 股东发言应围绕本次大会所审议的 ...

Investment Rating - The report indicates a positive outlook for the chemical industry, suggesting a new cycle may begin due to improved domestic supply and demand, increased global market share, and declining crude oil prices [3][4]. Core Viewpoints - The chemical industry is expected to enter a new cycle driven by domestic supply-demand improvements and global market share growth, despite potential short-term impacts from overseas demand [3][5]. - The report highlights that the supply side is gradually improving due to reduced fixed asset investment growth and government policies aimed at curbing excessive competition [5][10]. - On the demand side, domestic consumption is anticipated to recover steadily, supported by government initiatives to boost consumption and stabilize the economy [26][33]. - Cost factors are favorable, with significant declines in international crude oil and domestic coal prices, which will support the profitability of chemical products [42][49]. - The report recommends specific companies within various segments of the chemical industry, including refrigerants, amino acids, military and new materials, and fertilizers, indicating potential investment opportunities [5][57]. Summary by Sections Supply Side - The report notes that the chemical industry has faced profitability pressures since 2022, but the current production cycle is nearing its end, which may lead to gradual improvement in profitability as capacity is digested [11][12]. - China's global market share in chemical products has been steadily increasing, with 2023 figures showing a 43.1% share of global sales [25][20]. Demand Side - The report emphasizes that domestic demand is expected to recover, aided by government policies aimed at stimulating consumption and investment [26][33]. - The real estate sector shows signs of stabilization, which could further support demand for chemical products [33]. Cost Side - The report highlights a significant decline in crude oil prices, with Brent crude falling by 14.71% since the beginning of 2025, which is expected to positively impact the cost structure of the chemical industry [42][38]. - Domestic coal and natural gas prices have also shown a downward trend, enhancing the cost competitiveness of chemical products [49][47]. Valuation - The report indicates that the valuation of the basic chemical and petrochemical sectors is at historical lows, suggesting substantial room for recovery as market conditions improve [54][50].

Core Viewpoint - The company is expected to achieve record high production and sales of chromium salt products in 2024, with a positive outlook for 2025 regarding both volume and price increases in metallic chromium products, as well as further market share growth in the chromium salt sector [1]. Financial Performance - In 2024, the company is projected to achieve revenue of 4.067 billion yuan, a year-on-year increase of 9.95%, and a net profit attributable to shareholders of 473 million yuan, up 27.53% year-on-year [2]. - The company’s earnings per share (EPS) estimates for 2025 and 2026 have been raised to 1.4 yuan and 1.59 yuan respectively, with a new estimate for 2027 at 1.77 yuan [2]. - In Q1 2025, the company reported revenue of 1.02 billion yuan, a year-on-year increase of 7.59%, and a net profit of 117 million yuan, up 37.27% year-on-year [3]. Production and Market Position - The company is expected to produce approximately 260,000 tons of chromium salt products in 2024, with significant year-on-year growth in the sales of heavy chromium salts and chromium oxides [2]. - By the end of 2024, the company has become one of the top five global producers of metallic chromium, with a production capacity of around 7,650 tons [3]. - The company is focusing on high-purity metallic chromium and high-end chromium oxide products, while also expanding into new fields such as animal nutrition and advanced flame retardant materials [3]. Strategic Initiatives - The company is implementing an integrated business strategy across the entire chromium chemical industry chain, emphasizing domestic research and development of high-purity products [3]. - The first phase of the company's iron-chromium flow battery energy storage project has achieved stable operation, indicating a commitment to innovation in the energy sector [3].

Summary of Key Points from Conference Call Records Industry Overview - The chemical sector is currently in a bottoming phase, influenced by macroeconomic factors and overcapacity, with performance fluctuating within a range of ±10% year-on-year. Certain sub-sectors like refrigerants, pesticides, fertilizers, and modified plastics are performing well, showing resilience against macroeconomic impacts [2][47]. Company-Specific Insights Zhenhua Co., Ltd. - Zhenhua's net profit for Q1 2025 was 117 million yuan, a 37% year-on-year increase. The company is expected to see significant growth in Q2 due to strong demand for metallic chromium and high-temperature alloys, with annual profits potentially reaching 1.5 to 1.6 billion yuan following capacity expansion [1][3][4][7]. Refrigerant Industry - The refrigerant market has outperformed expectations, with leading companies like Juhua and Sanmei reporting substantial profit increases (Juhua's net profit grew by 108% and Sanmei by 178% in 2024). The average price of refrigerants has risen significantly, with some products like R32 exceeding 50,000 yuan per ton [1][8][9][10][11]. Agricultural Chemicals - The agricultural chemicals sector has shown strong performance, driven by cost support and export demand. Companies like Yangnong Chemical have increased operational loads to boost profits. The focus is on the impact of export policies on phosphate fertilizers [1][15][16][17]. Polyester Filament Industry - The polyester filament industry had a good Q1 but faces pressures from falling oil prices and uncertain tariff policies. As oil prices stabilize, market elasticity may increase [1][21][22][23]. Refining Sector - Companies like Rongsheng and Hengli in the refining sector saw significant profit improvements in Q1 due to a rebound in crude oil cracking margins. The low oil prices positively impacted downstream demand, helping to reduce costs and increase profits [1][24][25]. Future Trends and Strategies - The chemical sector is advised to focus on sub-sectors with low correlation to trade wars, such as refrigerants and new materials. Investors are encouraged to wait for low oil price points to optimize investment opportunities [2][5][6]. Additional Insights - The refrigerant industry is characterized by stable demand and pricing power held by leading companies, making it less sensitive to economic downturns. The potential for significant price increases remains, with a long cycle expected [9][10][11]. - The agricultural sector is expected to maintain growth, particularly in the phosphate fertilizer market, contingent on favorable export policies [17][40]. - The tire industry faces challenges from tariffs and is adapting through price increases and strategic market positioning [44][45]. Conclusion - The chemical industry presents various investment opportunities, particularly in sectors with strong fundamentals and less exposure to macroeconomic volatility. Companies with independent growth narratives, like Zhenhua, are highlighted as having significant profit potential [2][6][7].

Group 1 - The private equity firm Tongyuan Investment recently conducted research on the listed company Zhenhua Co., discussing various topics including the progress of the Chongqing base relocation and expansion, supply and demand of metallic chromium, price transmission, and strategies to cope with fluctuations in domestic and international profit margins [1] - Zhenhua Co. reported that the relocation and expansion of the Chongqing base is proceeding as planned, with new processes and facilities already implemented at the old base [1] - The price of chromium oxide green has started to rise, while the capacity migration in the upstream chromium salt industry will take a long time [1] Group 2 - The company indicated that fluctuations in overseas profit margins are due to the lack of export tax rebates, which has led to price disadvantages, and it is responding through low-cost expansion [1] - New processes can improve the conversion rate of chromium elements and reduce raw material consumption [1] - The expansion of metallic chromium is relatively easy but must consider environmental policies, while the expansion of chromium salts is limited by the approval of hexavalent chromium [1] Group 3 - By 2024, the proportion of products related to metallic chromium is expected to reach nearly 10%, with Q1 already exceeding 10% [1] - The production of vanadium products is approximately 1,600 tons, with a sales strategy of withholding supply [1] - The integration of qualified enterprises is seen as a necessary path, and the technical difficulty of expanding from sodium dichromate to metallurgical-grade chromium oxide green requires years of technical reserves and process exploration [1]

Group 1: Zhongyan Dadi - Zhongyan Dadi provided insights on financial indicators for 2024 and Q1 2025, highlighting stable project progress in nuclear power, ports, and water conservancy sectors, with no order losses reported [1] - The company is involved in five nuclear power projects and has undertaken multiple port projects, with advancements in water conservancy and Belt and Road initiatives [1] - The core business gross margin in geotechnical engineering increased by 7 percentage points due to cost reduction, industry barriers, and technology premiums [1] - The company has a robust risk control mechanism, with no significant unrecoverable accounts receivable, and recognizes revenue and costs based on project progress [1] Group 2: Zhenhua Shares - Zhenhua Shares discussed the progress of the Chongqing base relocation and expansion, along with the supply and price transmission of metallic chromium [2] - The company reported that the relocation and expansion are on schedule, with new processes and devices already implemented at the old base [2] - The price of chromium oxide green has started to rise, while the front-end capacity migration in the chromium salt industry will take time [2] - The company is addressing overseas gross margin fluctuations due to export tax policies by expanding low-cost production [2] - The production of vanadium products is approximately 1,600 tons, with a sales strategy focused on limited sales [2]

Core Insights - The company demonstrated operational resilience in a complex market environment, with significant growth in net profit despite a decline in operating cash flow [1] Financial Performance Summary - Revenue showed steady growth, reaching CNY 4,066,719,390.71 in 2024, a 9.95% increase from CNY 3,698,698,929.53 in the previous year, indicating successful market expansion and sales [2] - Net profit attributable to shareholders increased significantly to CNY 472,876,416.35, up 27.53% from CNY 370,808,626.75 in 2023, driven by effective cost control and favorable market conditions [3] - Deducting non-recurring gains, the net profit was CNY 482,269,470.66, reflecting a 26.17% increase from CNY 382,244,672.31, indicating enhanced core business profitability [4] - Basic earnings per share rose to CNY 0.94, a 27.03% increase from CNY 0.74, while the diluted earnings per share increased to CNY 0.96, up 26.32% from CNY 0.76, showcasing improved returns for shareholders [5] Expense Analysis - Sales expenses slightly decreased to CNY 38,054,212.16, a minor drop of 0.02% from CNY 38,060,535.31, indicating stable cost management [6] - Management expenses also saw a slight decline to CNY 265,428,135.66, down 0.51% from CNY 266,793,810.71, reflecting effective administrative cost control [7] - Financial expenses decreased by 12.08% to CNY 28,906,852.36 from CNY 32,880,377.29, likely due to optimized debt structure and increased interest income [8] - Research and development expenses increased to CNY 128,345,946.19, an 11.98% rise from CNY 114,610,064.25, highlighting the company's commitment to innovation and product upgrades [9] Cash Flow Analysis - Operating cash flow net amount decreased by 15.87% to CNY 333,426,615.89 from CNY 396,313,628.35, potentially due to increased cash payments for goods and services or longer accounts receivable collection periods [11] - Investment cash flow net amount was negative at CNY -363,939,933.53, worsening from CNY -274,208,180.24, indicating significant cash outflows for fixed asset acquisitions and capacity expansion [12] - Financing cash flow net amount turned positive at CNY 197,954,308.94, compared to CNY -138,212,278.80 in the previous year, reflecting improved cash inflows from borrowing and reduced debt repayments [13] R&D and Personnel Insights - Total R&D investment was CNY 128,345,946.19, accounting for 3.16% of revenue, emphasizing the importance of technological advancement for future growth [14] - The R&D team consisted of 281 personnel, representing 13.53% of the total workforce, with a stable educational and age structure, ensuring a strong foundation for innovation [15]

Core Viewpoint - The company reported strong financial performance for FY 2024 and Q1 2025, with significant growth in revenue and net profit, driven by high sales of chromium products and a favorable market environment [1][2]. Financial Performance - For FY 2024, the company achieved revenue of 4.067 billion yuan, a year-on-year increase of 10%, and a net profit attributable to shareholders of 473 million yuan, up 28% year-on-year [1]. - In Q1 2025, the company reported revenue of 1.020 billion yuan, an 8% increase year-on-year, and a net profit of 117 million yuan, reflecting a 37% year-on-year growth [1]. - The company’s chromium products, including heavy chromium salts and chromium oxides, saw varied sales performance, with total revenue from these products reaching 3.4 billion yuan for heavy chromium salts, 2.16 billion yuan for chromium oxides, and 380 million yuan for chromium salts [1]. Industry Dynamics - The domestic chromium salt industry has seen limited new entrants and projects over the past decade due to environmental and energy-saving policies, leading to supply constraints [2]. - Demand for metallic chromium is increasing across various sectors, including military, aerospace, and high-end equipment manufacturing, driven by geopolitical factors and technological advancements [2]. - The current price of metallic chromium is 75,000 yuan per ton, reflecting a 25% increase since the beginning of 2025, indicating a positive market outlook [2]. Future Outlook - The company is expected to benefit from the successful implementation of the Chongqing Minfeng relocation project, which is anticipated to contribute to production capacity and market presence [2]. - Projections for the company's net profit attributable to shareholders for 2025-2027 are 590 million yuan, 690 million yuan, and 780 million yuan, respectively [3].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights a significant increase in metal chromium production, indicating that the chromium salt industry is entering a prosperous cycle [6][9] - The company achieved a revenue of 4.067 billion yuan in 2024, representing a year-on-year growth of 9.9%, and a net profit attributable to shareholders of 473 million yuan, up 27.5% year-on-year [4][6] - The first quarter of 2025 saw a revenue of 1.02 billion yuan, a year-on-year increase of 7.6%, and a net profit of 117 million yuan, up 37.3% year-on-year [5][22] Summary by Sections Recent Performance - In 2024, the company produced approximately 7,650 tons of metal chromium, achieving a balance between production and sales [6] - The revenue from chromium oxide products was 2.16 billion yuan, with a gross margin of 25.85% [6] - The revenue from heavy chromium salt increased by 33.04% year-on-year, reaching 341 million yuan, driven by higher sales volume and prices [6] Financial Forecast - The company is expected to achieve revenues of 4.985 billion yuan, 5.954 billion yuan, and 6.663 billion yuan for the years 2025, 2026, and 2027, respectively [10] - The net profit attributable to shareholders is projected to be 711 million yuan, 928 million yuan, and 1.18 billion yuan for the same years [10] - The report anticipates a PE ratio of 16, 12, and 10 for the years 2025, 2026, and 2027, respectively [10] Market Position and Strategy - The company has become one of the top five global producers of metal chromium, enhancing its brand reputation [9] - The strategic initiative of integrating the entire chromium chemical industry chain is yielding significant results, with production capacity expected to increase to over 350,000 tons per year after the completion of the Chongqing base relocation [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The report highlights the overall improvement in the chromium salt industry chain and the company's increasing market share in chromium salts, maintaining a "Buy" rating [4][5] - In 2024, the company achieved a revenue of 4.067 billion yuan, a year-on-year increase of 9.95%, and a net profit attributable to shareholders of 473 million yuan, a year-on-year increase of 27.53% [4] - For Q1 2025, the company reported a revenue of 1.020 billion yuan, a year-on-year increase of 7.59%, and a net profit of 117 million yuan, a year-on-year increase of 37.27% [4] - The report projects net profits for 2025-2027 to be 728 million yuan, 849 million yuan, and 969 million yuan respectively, with corresponding EPS of 1.43 yuan, 1.67 yuan, and 1.90 yuan [4][5] Financial Summary - The company’s total market capitalization is 11.509 billion yuan, with a current stock price of 22.61 yuan [1] - The average selling prices for chromium products in 2024 were 10,539 yuan/ton for chromate, 21,011 yuan/ton for chromium oxides, and 11,929 yuan/ton for chromium salt co-products, with respective year-on-year changes of +5.53%, -0.08%, and +4.74% [5] - The report indicates that the price of metallic chromium has risen from 60,000 yuan/ton to 75,000 yuan/ton since January 2025, reflecting a 25% increase [6] - The company’s projected revenue for 2025 is 5.135 billion yuan, with a year-on-year growth of 26.3% [9]