Core Viewpoint - The company is preparing for its 2024 Annual General Meeting (AGM) with specific guidelines to ensure order and efficiency, while also addressing its financial performance and strategic direction in a challenging market environment [1][2][3]. Meeting Guidelines - The AGM will only allow entry to shareholders, board members, and invited guests, with strict measures to maintain order [1]. - Shareholders must provide proof of shareholding and register 10 minutes before the meeting [1]. - Shareholders wishing to speak must register in writing, with speaking time limited to 5 minutes per shareholder [2]. - Voting will be conducted both on-site and online, with specific time slots for each [3]. Financial Performance - In 2024, the company reported a revenue of CNY 2,052.48 million, a decrease of 34.01% compared to 2023 [21]. - The net profit attributable to shareholders was -CNY 329.28 million, a decline of 647.21% year-on-year [21]. - The company’s total assets as of December 31, 2024, were CNY 6,341.14 million, with net assets of CNY 1,309.45 million [21]. Industry Overview - The construction materials industry, including coatings and insulation, is facing challenges due to a complex economic environment, with a significant decline in new housing starts and sales [7][8]. - The market for construction coatings is approximately CNY 900 billion, with the overall industry capacity reaching around CNY 4 trillion when including services [8]. - The company remains a key player in the industry, focusing on enhancing competitiveness and expanding its market share despite the downturn [10][11]. Strategic Initiatives - The company aims to strengthen operational efficiency and focus on quality revenue, while also addressing historical debts and enhancing its marketing strategies [14][19]. - Plans for 2025 include applying for a credit limit of up to CNY 650 million from financial institutions to support growth [26]. - The company is also proposing to cancel the supervisory board and establish an audit committee to streamline governance [30].

Core Insights - The company reported a revenue of 5.955 billion and a net profit of 172 million for Q1, indicating proactive adjustments during the industry downturn, with improved cash flow driven by an increased retail business share and a reduction in engineering direct sales [1] - The strategic shift towards becoming a building materials ecosystem builder is highlighted by the establishment of a digital technology base and partnerships aimed at enhancing digital transformation and innovation in the construction sector [3][4] Group 1: Strategic Initiatives - The launch of the "Yuhong Home" service brand focuses on providing comprehensive solutions for residential construction and renovation needs, creating a digital service loop of online booking, offline construction, and quality tracking [3] - The establishment of a joint laboratory with Zhanjiang Bay Laboratory aims to address marine engineering challenges, promoting research and application of new anti-corrosion materials for marine environments [3] Group 2: Global Expansion - The company is accelerating its global strategy with the opening of a production base in Malaysia and the commencement of construction in Canada and the Middle East, creating a network that spans Southeast Asia, the Middle East, and North America [5] - Significant breakthroughs in overseas markets were achieved, including participation in major international exhibitions and partnerships to establish a distribution network in Southeast Asia [5] Group 3: Business Resilience - The company is leveraging a combination of retail expansion, technological empowerment, and global layout to create new growth opportunities amidst the ongoing industry challenges [5] - Key areas for investors to monitor include the pace of C-end service growth, the ramp-up of powder business capacity, overseas production progress, and improvements in accounts receivable turnover [5]