Investment Rating - The investment rating for the company is "Buy" and it is maintained [7] Core Views - The company reported a revenue of 860 million yuan in Q1 2025, representing a year-on-year increase of 9.4% and a quarter-on-quarter increase of 1.3% [2][4] - The net profit attributable to shareholders reached 160 million yuan, reflecting a year-on-year growth of 10.9% and a significant quarter-on-quarter increase of 104.8% [2][4] - The gross margin for Q1 2025 was 25.2%, up 0.4 percentage points year-on-year and 2.1 percentage points quarter-on-quarter, while the net margin was 19.2%, an increase of 0.3 percentage points year-on-year and 9.5 percentage points quarter-on-quarter [2][4] Summary by Sections Financial Performance - In Q1 2025, the company achieved a revenue of 860 million yuan, with a net profit of 160 million yuan and a net profit excluding non-recurring items also at 160 million yuan, indicating a year-on-year increase of 88.8% [2][4] - The sales volume for special rubber additives, electronic chemicals, and fully biodegradable materials were 39,949 tons, 4,026 tons, and 4,720 tons respectively, with year-on-year growth rates of 4.8%, 9.6%, and 76.3% [10] - The average selling prices for special rubber additives, electronic chemicals, and fully biodegradable materials were 15,044 yuan/ton, 52,349 yuan/ton, and 8,942 yuan/ton, with respective year-on-year changes of -4.0%, +23.4%, and -17.6% [10] Research and Development - The company invested 220 million yuan in R&D in 2024, a 20.5% increase year-on-year, accounting for 6.6% of revenue [10] - New product sales accounted for 43% of total sales, with the top eight new products contributing 80% of sales revenue [10] Project Development - The company has several projects entering production phases, including a semiconductor and flat panel display photoresist project with an annual capacity of 11,000 tons and related supporting agents of 20,000 tons [10] - The semiconductor chip polishing pad project has completed construction and is in trial production as of December 2024 [10] Future Outlook - The company is positioned as a leader in special rubber additives and photoresists, with expectations for net profits of 550 million yuan, 650 million yuan, and 760 million yuan for 2025, 2026, and 2027 respectively [10]