Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 272 million yuan for the first half of 2025, representing a year-on-year increase of 13.5%. However, the net profit attributable to shareholders was a loss of 17 million yuan, and the net profit after deducting non-recurring items was a loss of 31 million yuan. In Q2 2025, the revenue reached 152 million yuan, showing a year-on-year increase of 20.8% and a quarter-on-quarter increase of 26.4%, with a net profit loss of 1 million yuan and a non-recurring net profit loss of 10 million yuan, indicating a reduction in losses compared to the previous quarter [2][4]. Summary by Sections Company Overview - The company has seen an increase in production capacity utilization for its main product, brome stone, with significant shipment growth in Q2. Despite a price decline compared to last year, prices have stabilized with major clients, leading to continued operational growth despite a volume increase and price decrease [9]. Financial Performance - The company’s gross margin for brome stone has remained relatively stable, primarily due to internal cost reduction and efficiency improvements. The expansion of the thermal conductive ball aluminum business has faced delays but is expected to commence production in September 2025 [9]. Technological Developments - The company is transitioning its Solid Oxide Fuel Cell (SOFC) technology from pilot testing to industrialization, with the first demonstration project expected to be operational by the end of 2025. The efficiency of SOFC is high, but costs are currently elevated due to an incomplete supply chain, which is anticipated to improve as production scales up [9]. Future Outlook - The company expects to maintain a growth trajectory for the year, with shipment targets likely to be met. The optimization of sales structure, including small particle size products and overseas clients, is expected to contribute to profit recovery. The company is also optimistic about achieving bulk sales of SOFC, low-alpha alumina, and high-purity quartz sand, which will validate its material platform strategy [9].

Investment Rating - The investment rating for the company is "Buy" and is maintained [6] Core Views - The company reported a revenue of 505 million yuan for 2024, representing a year-on-year growth of 8.6%, while the net profit attributable to the parent company was 12 million yuan, a decline of 51.05% year-on-year. The non-recurring net profit was -24 million yuan, indicating an expanded loss compared to the previous year [2][4] - In Q4, the revenue was 130 million yuan, showing a year-on-year increase of 10.82% but a quarter-on-quarter decrease of 4.23%. The net profit attributable to the parent company was -3 million yuan, a year-on-year decline of 130.32% and a quarter-on-quarter decline of 130.85% [2][4] Summary by Sections Revenue Performance - In 2024, the sales volume of inorganic functional powder materials reached 38,400 tons, a year-on-year increase of 32.3%, driven by the recovery in downstream demand. The overall revenue growth slightly lagged behind the shipment growth due to price adjustments of barium stone products. In Q4, barium stone shipments are expected to have a slight decline, with a controlled price reduction trend [10] - The sales volume of polymer materials increased to 1,700 tons, a year-on-year growth of 56.06%, with revenue remaining stable [10] Profitability Analysis - The company's gross margin for 2024 was 22.68%, down 3.5 percentage points year-on-year, primarily due to fluctuations in raw material prices and price adjustments affecting cost reduction efforts. The operating profit margin was 1% for 2024, with a net profit margin of 2.24% [10] - In Q4, the gross margin declined due to rising raw material prices and inventory impairment provisions, with operational profitability expected to be at breakeven [10] Future Outlook - For 2025, barium stone is expected to maintain a high shipment growth rate, with sales structure optimization likely to drive profit recovery. The Chongqing base is projected to contribute to performance growth with 9,800 tons of thermal conductive aluminum and flame-retardant materials [10] - New materials such as low-α alumina and high-purity quartz sand are anticipated to achieve bulk sales in 2025, further validating the material platform logic [10]