Core Viewpoint - Sanfu New Materials Technology Co., Ltd. has reported continuous losses for three consecutive years from 2022 to 2024, despite a growing gross profit margin and an increase in revenue in 2024 [3][4]. Financial Performance - In 2024, the company achieved a revenue of 621 million yuan, representing a year-on-year growth of 24.9%, but recorded a net profit attributable to shareholders of -13 million yuan, marking three consecutive years of losses [3]. - The gross profit margin increased from 29.87% in 2022 to 38.28% in 2024, indicating a positive trend in profitability despite the losses [3]. - For Q1 2025, the company reported a revenue of 125 million yuan, a decline of 32.67% year-on-year, and a net profit of 5.41 million yuan, down 64.54% year-on-year, while the gross profit margin rose to 45.66% [3]. Business Segments - The company introduced a new surface engineering equipment business in 2023, generating revenues of 140 million yuan and 181 million yuan in 2023 and 2024, respectively, accounting for 28% and 29% of total revenue [3]. - The continuous growth in gross profit margin is attributed to changes in product structure and a decrease in raw material prices, aligning with industry trends [4]. Management Insights - The chairman and general manager, Shangguan Wenlong, has been with the company in various roles since 1994, indicating a stable leadership [6][7]. - The management team includes two vice presidents, Chen Weisu and Zhu Ping, who have extensive experience in the industry [8][9].