Core Viewpoint - Jiujiang Shanshui Technology Co., Ltd. reported a significant increase in revenue and net profit for the first half of 2025, driven by favorable market conditions in the fine chemical sector, particularly in the dye industry [1][2][3]. Group 1: Financial Performance - The company achieved operating revenue of 305 million yuan, representing a year-on-year growth of 23.08% [1]. - The net profit attributable to shareholders was 47.77 million yuan [1]. Group 2: Market Dynamics - The fine chemical sector outperformed the basic chemical sector, with the dye industry being a highlight due to improved domestic consumption and stricter environmental regulations [2]. - Prices for dye intermediates, such as 6-nitro compounds, surged due to supply-side constraints from environmental policies and seasonal demand [2]. Group 3: Industry Characteristics - The dye intermediate industry exhibits strong stability once integrated into the downstream supply chain, with high switching costs for customers due to the specific quality requirements of dye products [3]. - The company has established long-term stable partnerships with several well-known dye enterprises, maintaining a leading market share in its segment [3]. Group 4: R&D Investment - Research and development investment increased by 42.97% year-on-year, focusing on upgrading existing products and developing high-value-added products [4]. - The company has developed a core technology system that integrates product research, process development, and equipment modification, positioning it at the forefront of the industry [4]. Group 5: Product Quality and Production Efficiency - The company’s 6-nitro products have significant quality advantages, utilizing a continuous nitration process that reduces waste and lowers environmental costs [5]. - The gross margin for 6-nitro products was 45.69%, reflecting an increase compared to the previous year [5]. - The company is actively promoting the capacity release of chlorinated pyridine series products, with a gross margin of 26.33% for 2,3-dichloropyridine, showing substantial growth [5].

Core Viewpoint - The company has completed the construction of the "Disperse Dye Intermediate Construction Project" and plans to permanently supplement its working capital with surplus funds amounting to 154.4238 million yuan from the project [1][3]. Summary of Fundraising Project Completion - As of May 31, 2025, the actual production capacity of the "Disperse Dye Intermediate Construction Project" reached 29,573 tons per year, which is 90.79% of the designed capacity of 32,573 tons per year [1][2]. - The decision to halt investment in the production line for 2,4-dinitroaniline was made due to a decline in market prices, making the economic viability of in-house production unfavorable [1][2]. Equipment Investment and Cost Savings - The project successfully completed equipment investment, with a total of 1,213 units of the allylbenzene production line at a cost of 58.2112 million yuan [2]. - The company opted for domestic equipment instead of imported ones, resulting in significant cost savings while ensuring project completion and product quality [3]. Surplus Fund Utilization - The net interest and investment income from the surplus funds amounted to 19.6473 million yuan, representing 8.62% of the total committed investment for the project [3]. - The company will use the surplus funds for daily operations and business development [1][3].

Group 1: Performance and Strategy - The company will focus on its core business and accelerate technological innovation to drive growth in 2025 [2] - Key strategies include enhancing profitability, ensuring steady performance growth, and improving communication with investors [3] Group 2: Market Position and Capacity - The company currently has sufficient capacity to meet market demand for dye intermediates, with some production lines already in operation [3] - Ongoing expansion projects are being actively promoted to increase production capacity [3] Group 3: Shareholder Engagement and Value Management - The company has repurchased a total of 9,285,618 shares as part of its value management efforts [3] - Future plans include maintaining strong operational performance and enhancing intrinsic value to improve market recognition [3] Group 4: Financial Management and Risk - The company is in communication with trust institutions regarding the recovery of financial investments and reserves the right to pursue legal action if necessary [4] - Investors are advised to remain aware of investment risks related to forward-looking statements made during the communication activities [4]