Core Viewpoint - He Sheng New Materials Co., Ltd. has shown strong performance in 2023, with a revenue of 2.526 billion yuan and a net profit of approximately 97.91 million yuan, indicating a year-on-year growth of 7.93% and 18.29% respectively, while focusing on intelligent manufacturing and AI collaboration for future growth [1][5]. Group 1: Financial Performance - In 2023, He Sheng New Materials achieved a revenue of 2.526 billion yuan, representing a year-on-year increase of 7.93% [1]. - The net profit attributable to shareholders was approximately 97.91 million yuan, reflecting an 18.29% increase compared to the previous year [1]. - The company expects a net profit of 48 to 53 million yuan for Q1 2025, indicating a projected growth of 72.14% to 90.07% [5]. Group 2: Business Segments - The composite materials for home appliances generated 2.482 billion yuan in revenue, accounting for 98.25% of total revenue, supported by capacity expansion [2]. - The company has established long-term supply relationships with over 120 well-known domestic and international home appliance brands, including Samsung and Midea [2]. - The production capacity is expected to grow by over 10% in 2024 due to the successful launch of a high-end intelligent composite materials production line [2]. Group 3: Research and Development - R&D expenses reached approximately 85.51 million yuan in 2023, marking a 7.49% increase, which supports product innovation and competitiveness [3]. - The company is focusing on high-performance, green, and intelligent product lines to meet diverse customer needs [3]. Group 4: AI Business Development - He Sheng New Materials is developing AI capabilities through its subsidiary, focusing on hardware and software design, and has initiated collaborations in various sectors including government, finance, and healthcare [4]. - The AI business is in the R&D phase, with products aimed at intelligent computing centers and AI integrated machines [4]. Group 5: Market Environment - The macroeconomic environment in China is improving, with favorable policies for real estate and consumer spending, which is expected to benefit the home appliance materials industry [5]. - The company is facing challenges such as intensified competition and raw material price fluctuations, necessitating ongoing optimization of its business structure and increased investment in technological innovation [5][6].