Group 1: Business Overview - The industrial membrane currently accounts for approximately 70% of the company's membrane business revenue [1] - The company's membrane products are exported to over 130 countries and regions, projected to account for about 30% of total revenue in 2024 [2] Group 2: Product Applications - Household reverse osmosis membrane products are widely used in home health water applications, focusing on high-quality needs for sensitive users such as infants and the elderly [1] - The company is actively collaborating with application enterprises to accelerate the domestic substitution process of ultra-pure water key materials [2] Group 3: Financial Performance - In the first quarter, the company reported an operating income of 363 million yuan, an increase of 8.43% year-on-year [2] - The net profit attributable to the parent company was 44.45 million yuan, reflecting a year-on-year growth of 30.35% [2] - The average gross margin in the first quarter increased by 1.66% compared to previous periods, driven by the growth in membrane material sales [2] Group 4: Impact of Tariffs - The revenue from products directly exported to the United States is minimal, thus changes in China-U.S. tariff policies have a limited impact on the company's operations [1]

Core Viewpoint - The company reported a decline in revenue and net profit for 2024, with significant challenges in its membrane business, but anticipates potential recovery in 2025 due to market expansion and cost optimization efforts [1][2][3]. Financial Performance - In 2024, the company achieved revenue of 10.164 billion, a year-on-year decrease of 15.6%, and a net profit attributable to shareholders of -0.556 billion [1]. - For Q4 2024, revenue was 2.699 billion, down 8.47% year-on-year but up 0.65% quarter-on-quarter, with a net profit of -1.0 billion [1]. Business Segment Analysis - The company shipped 8.825 billion square meters of lithium membranes in 2024, a year-on-year increase of 42.33%, driven by capacity release and market expansion [2]. - Revenue from membrane business was 8.82 billion, with a significant drop in average selling price and a gross margin of 7.7%, down substantially from previous levels [2]. - The gross margin for lithium battery membranes was 7.39%, reflecting a decline of 32.44 percentage points, primarily due to inventory costs [2]. Future Outlook - The company expects Q4 2024 shipments to exceed expectations due to increased inventory sales, despite pressure on profitability from declining membrane prices and additional costs [3]. - For Q1 2025, shipments are projected to continue growing year-on-year, supported by negotiations with downstream customers and a significant impairment charge taken in Q4 2024 [3]. - The company aims to enhance profitability through product mix optimization, cost reduction, and recovery in ancillary business profits, reinforcing its competitive position in the market [3].