Group 1: Financial Performance - In Q1 2025, the company achieved revenue of 112 million, a year-on-year decrease of 27.67%, and a net profit of 10.31 million, down 51.51% compared to the previous year [2] - In 2024, total revenue was 545 million, a decline of 43.52%, with a net loss of 71.99 million, marking a shift from profit to loss [4] - The decline in performance is attributed to reduced demand for explosives due to coal mining regulations and significant impairment losses from joint ventures [4] Group 2: Research and Development - In 2024, the company invested 12.95 million in R&D, accounting for 2.38% of revenue, which is a decrease from the previous year [1] - The company has established joint R&D centers with renowned research institutions to enhance technological innovation and core competitiveness [1] - Key technological breakthroughs include advancements in emulsion explosives production and intelligent monitoring technologies, which have been applied in actual production [1] Group 3: Market Strategy and Operations - The company is focusing on customized services for major clients, such as large mining and infrastructure groups, to stabilize performance and expand market share [4] - Strategies to reduce raw material costs include long-term contracts and strategic partnerships, particularly for key materials like ammonium nitrate [4] - The company aims to enhance operational efficiency through smart production technology and process optimization [3] Group 4: Future Outlook and Projects - The PBAT biodegradable materials project, with a total investment of approximately 3.5 billion, is underway and expected to generate significant cash flow upon completion [7] - The company anticipates a gradual recovery in the explosives business as environmental regulations are completed and production resumes [6] - Plans to improve internal controls and governance are in place to enhance risk management and support long-term development [6]

Core Viewpoint - Tongde Chemical experienced a significant decline in performance in 2024, marking its first loss since its listing, with a revenue drop of 43.52% and a net loss of 71.99 million yuan [1][2] Group 1: Company Performance - In 2024, Tongde Chemical achieved an operating income of 545 million yuan, a year-on-year decrease of 43.52% [1] - The net profit attributable to shareholders was a loss of 71.99 million yuan, representing a year-on-year decline of 116.43% [1] - This marks the first loss for the company since its listing in 2010 [1] Group 2: Strategic Projects - The company is focusing on a 3.5 billion yuan project for an integrated production chain of 60,000 tons of fully biodegradable plastics (PBAT), which is currently under construction [1] - The main engineering construction of the PBAT project has been completed, and equipment installation and debugging are ongoing [1] - The company is actively seeking industrial and financial investors to achieve production this year [1] Group 3: Research and Development - In 2024, the company invested 12.95 million yuan in product research and development [2] - Collaborations with well-known domestic research institutions have been established to enhance R&D capabilities [2] - The company has made progress in technologies such as continuous production of emulsified explosives and intelligent monitoring and control in blasting operations, which have been applied in actual production [2] Group 4: Market Outlook - The company anticipates 2025 to be a critical year for transformation, with signs of recovery in the civil explosive market [2] - Business operations affected by policies are gradually being relaxed, and production is steadily increasing [2] - Local government support for the real economy is strengthening, with efforts to coordinate financial institutions for the company's operational activities [2]