Core Insights - The company reported a revenue of 1.139 billion in 2024, representing a year-on-year growth of 24.17%, with a net profit attributable to shareholders of 414 million, up 23.56% year-on-year [1][2] - In Q1 2025, the company achieved a revenue of 241 million, a decrease of 2.48% year-on-year, and a net profit of 63 million, down 45.23% year-on-year [1][2] Revenue Breakdown - The special functional materials business generated 1.023 billion in 2024, growing 15.27% year-on-year - The acoustic metamaterials business saw revenue of 44.28 million, up 143.33% year-on-year - The aerospace components business reported revenue of 6.19 million, a significant increase of 461.84% year-on-year - The ceramic matrix composites business generated 200.88 thousand, indicating notable growth in incremental business contributions to overall revenue [2] Profitability Analysis - The gross profit margin for 2024 was 50.69%, a decrease of 7.09 percentage points year-on-year, while Q1 2025 saw a gross profit margin of 40.79%, down 17.98 percentage points year-on-year [3] - The gross profit margin for the special functional materials business was 55.12%, down 4.01 percentage points year-on-year, while the aerospace components business improved its margin to 12.76%, an increase of 19.34 percentage points [3] Cost and Investment Trends - The company experienced fluctuations in profitability due to increased operating costs and R&D investments, with a Q1 2025 expense ratio of 24.59%, up 10.86 percentage points year-on-year [3] - R&D expense ratio in Q1 2025 was 12.76%, reflecting a rise of 7.26 percentage points year-on-year due to an increase in R&D personnel and project investments [3] Strategic Developments - The company is advancing multiple product lines and capacity building to transform into a comprehensive solutions provider for new materials, particularly in aerospace and high-end equipment sectors [4] - The company is focusing on small-batch trial production and engineering applications in various fields, including acoustic materials and ceramic matrix composites, with ongoing projects aimed at expanding production capacity [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [8]. Core Views - The company reported a revenue of 1.139 billion in 2024, representing a year-on-year growth of 24.17%. The net profit attributable to the parent company was 414 million, up 23.56% year-on-year. However, in Q1 2025, revenue decreased by 2.48% to 241 million, and net profit dropped significantly by 45.23% to 63 million [2][4][6]. Summary by Sections Financial Performance - In 2024, the company achieved a total revenue of 1.139 billion, with a year-on-year increase of 24.17%. The net profit attributable to the parent company was 414 million, reflecting a growth of 23.56%. The non-recurring net profit was 389 million, which is a slight increase of 0.93% [2][4]. - For Q1 2025, the company reported a revenue of 241 million, a decrease of 2.48% year-on-year. The net profit attributable to the parent company was 63 million, down 45.23%, and the non-recurring net profit was 55 million, a decrease of 50.79% [2][4]. Business Development - The company is transitioning towards becoming a comprehensive solution provider for new materials, focusing on aerospace and high-end equipment. It is advancing multiple product lines, including special functional materials, acoustic materials, and ceramic-based composite materials [6]. - The revenue from special functional materials in 2024 was 1.023 billion, an increase of 15.27%. The acoustic metamaterials business saw a significant growth of 143.33%, while the aerospace components business grew by 461.84% [6][11]. Cost and Margin Analysis - The gross margin for 2024 was 50.69%, a decrease of 7.09 percentage points year-on-year. In Q1 2025, the gross margin further declined to 40.79%, down 17.98 percentage points year-on-year [11]. - The increase in R&D expenses and production costs has led to fluctuations in profitability. The R&D expense ratio in Q1 2025 was 12.76%, an increase of 7.26 percentage points year-on-year [11].