Lily Group(SH:603823) Feng Huang Wang·2025-12-05 10:08Core Viewpoint - The company, Baihehua (603823.SH), reported a year-on-year decline in performance for the first three quarters of the year due to a drop in product prices, attributed to intensified industry competition and potential downstream demand weakness [1]. Group 1: Financial Performance - In Q3, the company's revenue was 512 million yuan, representing a quarter-on-quarter decline of 10.19% and a year-on-year decline of 7.95% [1]. - The net profit attributable to the parent company for Q3 was 36 million yuan, showing a quarter-on-quarter decline of 17.72% and a year-on-year decline of 33.21% [1]. - From January to September, the prices of key products, including the Yonggu Yellow series, Lisol Red series, and others, decreased by 1% to 5% [1]. Group 2: Industry Competition and Product Development - The chairman and general manager of the company, Chen Lirong, acknowledged that intensified internal competition has impacted product pricing [1]. - The company acquired 88,045 square meters of land for the construction of a high-performance organic pigment project, which includes a production line for 1,000 tons of organic pigments for photoresists, expected to be completed by 2027 [1]. - The new project commenced construction in November, indicating ongoing efforts to expand production capacity [1]. Group 3: Product Applications and Market Potential - The company's dispersants are primarily used in coatings, inks, and plastics, with a significant reliance on imports for high-end dispersants in China, suggesting substantial potential for domestic substitution in the future [2].