Core Viewpoint - Dynasty Fine Wines Group Limited (00828) has announced a construction agreement for a new winery in Jiangsu, China, which will enable the company to diversify its product offerings and enhance its strategic development in the wine industry [1] Group 1: Construction Agreement - The company’s non-wholly owned subsidiary, Dynasty Jiangsu, has entered into a construction agreement with Yancheng Tiangong Construction Engineering Co., Ltd. for a total cost of RMB 22.3262 million [1] - The contractor will serve as the general contractor responsible for building a facility for producing Huangjiu (yellow wine) and Chenpi wine, along with necessary infrastructure such as warehouses, office buildings, and wastewater treatment facilities [1] Group 2: Product Diversification - The company primarily produces red and white wines made from grapes, but the new facility will allow for the production of Huangjiu and Chenpi wine using glutinous rice [1] - The completion of this construction project is a significant strategic move for the company to effectively expand its product range and achieve high-quality development in the wine industry [1]

Investment Rating - The investment rating for Jianghan New Materials is "Buy" with a target price not specified [5] Core Views - The company experienced a slight decline in production and sales due to low industry sentiment, with a revenue of 945 million yuan in the first half of 2025, down 19.5% year-on-year [1] - The gross profit margin showed a recovery in the second quarter, indicating strong cost management capabilities [3] - The company is a leading global producer of functional silanes and is expanding into electronic-grade silicon-based materials, which may enhance its product offerings and market reach [4] Financial Performance - In the first half of 2025, the company achieved a gross profit of 264 million yuan, with a gross margin of 27.9%, down 5.9 percentage points year-on-year [3] - The second quarter of 2025 saw a revenue of 453 million yuan, a decrease of 22.85% year-on-year, but a net profit of 114 million yuan, which was a 17.79% increase quarter-on-quarter [1][3] - The average selling price of functional silanes decreased by 13.8% year-on-year to 16,400 yuan per ton in the first half of 2025 [2] Industry Context - The global macroeconomic environment has led to a significant decline in the export scale of the company's functional silane products, with a year-on-year decrease of approximately 20% [2] - The company’s domestic and overseas revenues in the first half of 2025 were 478 million yuan and 467 million yuan, respectively, reflecting a decline of 8.4% and 28.4% year-on-year [2] - The company is investing in new projects, including 10,000 tons of optical-grade silicon tetrachloride and 5,000 tons of electronic-grade ethyl silicate, expected to be operational by October 2027 [4]