Investment Rating - The investment rating for the company is "Buy" and it is maintained [10] Core Views - The company reported a revenue of 6.53 billion yuan for the first half of 2025, representing a year-on-year increase of 14.9%. The net profit attributable to shareholders was 560 million yuan, up 205.6% year-on-year, and the net profit excluding non-recurring items was 550 million yuan, an increase of 211.9% year-on-year [2][7] - In Q2 2025, the company achieved a revenue of 3.84 billion yuan, reflecting a year-on-year growth of 28.6% and a quarter-on-quarter increase of 43.1%. The net profit attributable to shareholders reached 300 million yuan, a staggering year-on-year increase of 932.3% and a quarter-on-quarter increase of 16.4% [2][7] - The company plans to distribute a cash dividend of 3.5 yuan per 10 shares (tax included) [2][7] Company Overview - The company is a leading player in the domestic pesticide formulation industry, with R&D teams and centers located in Jinan and Weifang, Shandong. It operates six manufacturing bases across China and internationally, including in Argentina, Spain, and the USA [12] - The global pesticide market is expected to continue its steady growth, supported by strong demand for crop protection products. The company has seen a significant increase in its gross margin to 22.9% in Q2 2025, up 2.6 percentage points year-on-year, and a net margin of 9.1%, up 7.4 percentage points year-on-year [12] - The company has established a "fast market entry platform" to expand its market share and has increased its revenue from TOC (local team sales of proprietary brands) to 41.35% of total revenue, up from 37.84% year-on-year [12] Financial Projections - The company forecasts net profits attributable to shareholders of 1.1 billion yuan, 1.52 billion yuan, and 1.97 billion yuan for the years 2025, 2026, and 2027, respectively [12]

Core Viewpoint - The company experienced a decline in performance in 2024 due to foreign exchange losses, but the proportion of C-end revenue continues to rise, with a strong start to 2025 as the net profit attributable to shareholders increased by 67.98% year-on-year in Q1 2025 [1] Financial Performance - In 2024, the company achieved operating revenue of 13.296 billion yuan, a year-on-year increase of 15.77%, while the net profit attributable to shareholders was 450 million yuan, a year-on-year decrease of 41.63% [2] - In Q4 2024, the company reported operating revenue of 3.511 billion yuan, a year-on-year increase of 18.38% but a quarter-on-quarter decrease of 14.44%, with a net profit of 109 million yuan, a year-on-year increase of 119.23% but a quarter-on-quarter decrease of 32.08% [2] - In Q1 2025, the company achieved operating revenue of 2.686 billion yuan, a year-on-year decrease of 0.26% and a quarter-on-quarter decrease of 23.49%, with a net profit of 257 million yuan, a year-on-year increase of 67.98% and a quarter-on-quarter increase of 136.59% [2] Business Development - The company is focusing on the growth of its TO C business, with the revenue share from TO C increasing from 33.82% in 2023 to 37.65% in 2024, and the TO C business gross margin rising to 28.99%, an increase of 0.09% year-on-year [3] - The company has seen an increase in its EU and North America business share, rising from 5.69% in 2023 to 9.75% in 2024, and the share of insecticide and fungicide business revenue increased from 25.41% to 25.71% [3] - The company has strengthened its biopesticide segment by establishing a global bioproducts team, achieving first-year sales of approximately 10 million USD [3] - The company has enhanced its global marketing network, obtaining over 1,000 new registrations in 2024, totaling over 7,700 pesticide registration certificates domestically and internationally by December 31, 2024 [3]