Group 1: Investor Relations Activity - The investor relations activity included a factory visit at the Adidas factory in Emei, Sichuan on May 29-30, 2025, attended by the company's chairman and management team [2] - Investors signed a commitment letter as per Shenzhen Stock Exchange regulations before participating in the factory tour [2] Group 2: Production and Operational Insights - The company is currently in a production peak season with a full order book, ensuring timely deliveries [2] - The first quarter of 2025 saw a decline in gross margin due to the ramp-up phase of new factories and the hiring of new employees, which affected operational efficiency [3] - The company plans to optimize training and enhance automation to improve operational efficiency in the new factories [3][7] Group 3: Market and Pricing Strategy - The company is monitoring the impact of U.S. tariff policies on Southeast Asian countries, with no significant changes in order volumes reported so far [2] - Average selling price fluctuations are influenced by customer and product mix changes, with a diversified brand strategy in place [5] Group 4: Automation and Cost Management - The company is investing in automation to reduce reliance on skilled labor and improve production efficiency, with over 500 intelligent cutting machines introduced in 2024 [6][7] - The procurement model is based on "production-driven purchasing," allowing for timely raw material procurement and minimizing waste [8] Group 5: Expansion and Management Efficiency - The company is expanding operations in Indonesia and China, with a focus on optimizing management processes to maintain operational efficiency across multiple locations [9] - The management team is experienced in the Indonesian market, and the company is confident in achieving operational targets as the new factories mature [4] Group 6: Financial Performance and Shareholder Returns - The company has a strong track record of cash dividends, with 2021 cash dividends accounting for approximately 89% of net profit, and 2023 dividends around 44% [12] - The company aims to balance shareholder returns with capital expenditure needs, with a significant amount of undistributed profits available for future dividends [12]

Core Insights - ST New Asia (002388.SZ) reported a revenue of 2.196 billion yuan for 2024, marking a year-on-year increase of 2.3% [2] - The company experienced a net profit loss of 215 million yuan, but this loss narrowed by 12.25% compared to 2023, indicating positive signs of performance recovery [2] - The adhesive products segment achieved record-high revenue and gross margin, becoming the highlight of the annual report [2] Financial Performance - The adhesive products segment saw a revenue increase of 8.55% year-on-year, with gross margin rising by 10.17% to 48.32% [3] - The company reported a loss in the electrolyte segment and recognized impairment losses of 134 million yuan for goodwill and 72.01 million yuan for the lithium salt second-phase production line [2] - The total impairment for the electrolyte asset goodwill has been fully recognized [2] Business Development - ST New Asia focuses on chemical products and electronic device solutions, with a complete industrial chain centered around advanced electronic devices, electronic adhesives, and lithium-ion battery materials [2] - The company has established strong relationships with major clients such as Huawei, BYD, and Foxconn, with Huawei contributing 819 million yuan, accounting for 37.3% of total annual sales [2] - The company is enhancing production line automation, expecting an increase in annual capacity by 5,000 tons post-upgrade [3] R&D and Innovation - The company plans to invest over 31 million yuan in R&D for 2024, focusing on high-performance, high-energy density, and fast-charging materials for lithium-ion batteries [3] - A specialized team in polymer materials and electrochemistry has been formed to support the development of new technologies [3] - ST New Asia aims to provide comprehensive technical support for the new energy vehicle supply chain through projects like smart ESD systems and precision dispensing welding equipment [3] Risk Management - The company has completed rectifications related to risk warnings implemented in November 2024 and plans to apply for the removal of risk warnings after twelve months following an administrative penalty received on December 31, 2024 [3] - Future efforts will focus on strengthening audit supervision and improving information disclosure mechanisms to ensure compliance [3]