Core Viewpoint - The company held its 2024 annual performance briefing, where it engaged with investors and addressed various inquiries regarding its business operations and future strategies [1] Group 1: Financial Performance - In 2024, the company achieved a revenue of 515 million yuan, a decrease of 6.55% compared to the previous year, primarily due to a decline in the food additive business and changes in the scope of consolidated financial statements [2] - The company reported a net profit decline, but the non-recurring net profit attributable to shareholders increased by 40.73% year-on-year [2][19] - For Q1 2025, the company recorded a revenue of 103 million yuan and a net loss of 22.72 million yuan, which represents a reduction in losses of 7.6% compared to the same period last year [18] Group 2: Research and Development - The company plans to invest 23.65 million yuan in R&D for 2024, accounting for 4.59% of total revenue, with a focus on downstream products of phosgene, pharmaceutical/agricultural intermediates, and electronic chemicals [2] - The company aims to enhance its market share in electronic chemicals, with revenues projected to grow from 18.53 million yuan in 2023 to 30.11 million yuan in 2024 [2] Group 3: Operational Strategies - The company is focusing on optimizing its product structure, expanding market reach, increasing R&D investment, and improving operational efficiency to enhance shareholder returns [8][10] - The management emphasizes the importance of solid business foundations and efficient operations as the basis for market value growth [10] Group 4: Business Direction and Challenges - The company is committed to its core business of fine chemical products, including paper chemicals, fluorescent whitening agents, and pharmaceutical/agricultural intermediates [20] - The company is facing challenges due to continuous losses over the past four years, but management is optimistic about improving profitability through various operational enhancements [19][12] Group 5: Corporate Governance and Shareholder Engagement - The company has a governance structure in place to ensure compliance with legal and regulatory requirements, and it is actively pursuing compensation for performance commitments related to a major shareholder [5][28] - The company has engaged with investors through a Q&A session, achieving a 100% response rate to inquiries, indicating a commitment to transparency and shareholder communication [1]

R&D Investment and Financial Performance - In 2024, the company plans to invest CNY 23.65 million in R&D, accounting for 4.59% of total revenue [2] - The company reported a revenue of CNY 515 million in 2024, a decrease of 6.55% compared to the previous year [3] - The net profit for Q1 2025 was CNY -22.72 million, a reduction in losses by 7.6% year-on-year [11] Market Strategy and Product Development - Future R&D will focus on downstream products of phosgene, pharmaceutical/agricultural intermediates, and electronic chemicals [2] - The company aims to increase its market share in electronic chemicals, with projected revenues of CNY 18.53 million in 2023 and CNY 30.11 million in 2024 [2] - The company is exploring new business growth points and optimizing asset structure to enhance competitiveness [6] Operational Challenges and Management Response - The company faced operational challenges due to a decline in the food additive business and changes in the consolidation scope from selling equity [3] - Management is implementing a "1+N" control strategy to reduce costs and improve efficiency, resulting in an increase in overall gross margin [3] - The company is actively pursuing legal action regarding performance compensation claims against a major shareholder [5] Corporate Governance and Future Outlook - The company has no current plans for stock issuance or major restructuring [12] - The management emphasizes the importance of solid business foundations and efficient operations for market value growth [6] - The company is committed to enhancing its governance structure and ensuring compliance with legal requirements [8] Industry Context and Competitive Landscape - The fine chemical industry is experiencing structural differentiation, with some sectors benefiting from high demand while others face cost pressures [13] - The company recognizes the importance of technological innovation and green transformation in navigating industry challenges [18]