Jalon(SH:688357) Zheng Quan Zhi Xing·2025-05-15 13:27Core Viewpoint - The report outlines the continuous supervision and tracking of Luoyang Jianlong Micro-Nano New Materials Co., Ltd. by GF Securities, highlighting the company's financial performance and operational challenges in 2024, including a significant decline in revenue and net profit due to market conditions and internal cost pressures [1][4][5]. Continuous Supervision Work - GF Securities has established a comprehensive supervision system and work plan for continuous oversight of Jianlong Micro-Nano [1]. - A supervision agreement has been signed with the company, clarifying the rights and obligations of both parties during the supervision period [1]. - Continuous supervision is conducted through regular communication, site inspections, and due diligence [1][2]. Financial Performance - In 2024, Jianlong Micro-Nano reported revenue of CNY 778.75 million, a decrease of 19.90% year-on-year, and a net profit attributable to shareholders of CNY 74.76 million, down 51.15% [4][12]. - The decline in revenue is attributed to weak demand in the industrial gas sector and changes in consumer behavior, leading to a shift in sales structure [4][5]. - The company's net profit decline is primarily due to fixed costs such as labor and depreciation remaining rigid despite falling revenues [5][12]. Operational Challenges - The company faces challenges from a complex global economic environment, with a slowdown in macroeconomic recovery impacting demand in the industrial gas sector [5]. - Changes in consumer preferences have led to a stabilization in household oxygen demand, affecting sales dynamics [5]. - The company is actively addressing performance declines by focusing on operational improvements and compliance with information disclosure obligations [5]. Market and Competitive Landscape - Jianlong Micro-Nano is expanding its market presence through international cooperation and targeting emerging markets along the Belt and Road Initiative [6]. - The company is investing in new product development in sectors such as petrochemicals and renewable resources to diversify its growth engines [6]. Risks and Mitigation - The company identifies several risks, including market competition, raw material price fluctuations, and environmental compliance challenges [8][9]. - The potential for technological obsolescence and the loss of core technical personnel are also highlighted as significant risks [7][8]. - The company emphasizes the importance of maintaining its competitive edge through continuous innovation and effective management of its supply chain [6][15]. Financial Indicators - Key financial metrics show a significant decline in earnings per share, with basic earnings per share dropping to CNY 0.75, a decrease of 50.98% year-on-year [12]. - The weighted average return on net assets decreased to 4.14%, down from 9.06% in the previous year [12]. Research and Development - The company continues to invest in R&D, with a focus on enhancing product quality and developing new applications for its molecular sieve products [13][14]. - R&D expenditure as a percentage of revenue increased slightly to 4.54% in 2024, reflecting ongoing commitment to innovation [12]. Fundraising and Compliance - Jianlong Micro-Nano successfully raised CNY 190.34 million through stock issuance and CNY 691.67 million through convertible bonds, with funds allocated to specific projects in compliance with regulatory requirements [19][20].