Financial Performance - The company reported a total revenue of 676 million yuan for the first half of 2025, an increase of 1.47% year-on-year [1] - The net profit attributable to shareholders reached 63.81 million yuan, up 15.19% year-on-year [1] - In Q2 2025, total revenue was 368 million yuan, reflecting an 8.46% increase year-on-year, while net profit for the quarter was 36.92 million yuan, a 24.78% increase [1] - The gross margin improved to 20.77%, up 14.17% year-on-year, and the net margin increased to 9.36%, up 14.87% [1] - The company's total expenses (selling, administrative, and financial) amounted to 40.02 million yuan, accounting for 5.92% of revenue, a 9.42% increase year-on-year [1] Balance Sheet Changes - Accounts receivable increased significantly by 43.74% year-on-year, reaching 233 million yuan [1] - Cash and cash equivalents decreased by 69.77%, attributed to cash management practices [3] - Interest-bearing debt rose by 211.89%, totaling 84.90 million yuan, primarily due to new bank loans for factory construction [3] Cash Flow Analysis - The net cash flow from operating activities decreased by 52.1%, impacted by reduced VAT input deductions and increased tax expenses [5] - The net cash flow from investing activities saw a significant decline of 205.81%, largely due to cash management practices [5] - The net cash flow from financing activities increased by 51.63%, driven by reduced repayment of pledged loans and new borrowings for projects [5] Industry Insights - The demand for chemical fiber masterbatches is expected to continue expanding due to environmental policies and production efficiency [11] - The company has competitive advantages in raw material procurement, product quality, and customer service, which are critical in the fiber masterbatch industry [13] Research and Development - The company has established a joint venture with Nankai University to develop covalent organic frameworks (COFs), which have potential applications in various fields [14] - Currently, COFs products are in the customer verification stage and have not yet achieved mass sales, with plans for a new production line to increase capacity [15]

Investment Rating - The report maintains a "Buy" rating for the COFs industry, indicating an expected investment return exceeding 15% over the next 6-12 months [5][48]. Core Insights - COFs (Covalent Organic Frameworks) are emerging as a new class of porous crystalline materials with precise tunable pore structures and surface functionalities, showing vast application potential in energy storage, environmental remediation, and biomedicine [4][44]. - The demand for COFs materials is projected to grow significantly, with the market for solid-state battery COFs expected to increase from $0.05 billion in 2024 to $0.61 billion by 2031, reflecting a CAGR of 35% [3][42]. Summary by Sections 1. COFs Structural Design and Synthesis Innovations - COFs are crystalline porous polymers formed by covalently linking organic molecules, characterized by ordered nanopores, high surface area, and excellent thermal stability [1][13]. - The development of COFs represents a trend from inorganic to organic porous materials, with advancements in synthesis methods such as solvent thermal and ionic thermal methods [1][14]. 2. Accelerated Cross-Field Applications of COFs - COFs are driving technological revolutions across various sectors due to their unique designable crystal structures and superior physicochemical properties [2][33]. - In the energy sector, COFs enhance battery energy conversion efficiency and serve as effective electrode materials [2][34]. - COFs also provide innovative solutions for environmental remediation, such as selective adsorption for water treatment and air purification [2][36]. - In biomedicine, COFs enable targeted drug delivery and detection of heavy metal ions with high sensitivity [2][38]. 3. Industrialization Breakthroughs in COFs - The global demand for COFs is rapidly increasing, with companies like Baolidi leading the market by achieving solvent-free synthesis and scaling production to 200 tons annually [3][43]. - Baolidi's joint venture, YaoKe New Materials, has successfully implemented green synthesis technology, facilitating the transition from laboratory to large-scale production [3][42]. 4. Investment Recommendations - The report emphasizes the promising future of COFs materials, particularly highlighting Baolidi's collaboration with leading academic figures to advance COFs commercialization [4][44]. - The ongoing construction of a 200-ton annual production line for COFs materials is underway, with project approvals completed [4][43].