Investment Rating - The investment rating for the company is "Buy" [7] Core Insights - In the first half of 2025, the company achieved a revenue of 950 million yuan, representing a year-on-year growth of 10.5%, while the net profit attributable to shareholders decreased by 7.3% to 37.67 million yuan. However, the net profit excluding non-recurring items increased by 18.9% to 38.49 million yuan [1] - The company is expanding into multi-modal flexible sensors, which are expected to open new growth avenues in sectors such as robotics, healthcare, and consumer electronics [3] - The company has a strong foothold in the adhesive materials industry, with plans to ramp up production capacity significantly, targeting revenues of no less than 1.6 billion yuan in 2024 and 2.3 billion yuan in 2026, with a compound annual growth rate of 14% [4] Financial Performance - The gross margin for the first half of 2025 was 16.6%, a decrease of 0.43 percentage points year-on-year, while the net profit margin was 4.15%, down 0.72 percentage points [2] - The company forecasts net profits of 82.3 million yuan in 2025, 120.78 million yuan in 2026, and 159.19 million yuan in 2027, with respective growth rates of 23%, 47%, and 32% [5]

Meeting Overview - The fourth meeting of the supervisory board was convened in compliance with relevant laws and regulations, and the resolutions made are legally valid [1] - The meeting was held on August 8, 2025, with all three supervisors present [1] - The meeting was chaired by Mr. Qiao Li, the chairman of the supervisory board [1] Resolutions Passed - The supervisory board approved the 2025 semi-annual report and its summary, confirming that the preparation and review processes complied with national laws and internal management systems [1][2] - The board found that the report's content and format met the requirements of the China Securities Regulatory Commission and the Shanghai Stock Exchange, accurately reflecting the company's operational and financial status [1] - The board did not identify any violations of confidentiality by personnel involved in the report's preparation and review [1] Fund Utilization Reports - The board approved the special report on the storage and actual use of raised funds for the first half of 2025, with all votes in favor [2] - The board also approved the temporary use of part of the idle raised funds to supplement working capital, with unanimous support [2]

Summary of Jinghua New Materials Conference Call Company Overview - Jinghua New Materials operates in the adhesive materials industry, covering industrial-grade (54% share), electronic-grade (26% share), and optical-grade adhesives, as well as specialty paper, with applications in construction, automotive, and consumer electronics [2][5][6] Core Business Insights - The company established Beijing Jingzhigan New Materials Co., Ltd. in June 2025, focusing on electronic skin sensors for humanoid robots and medical applications [2] - The revenue targets set in the 2024-2026 equity incentive plan are at least 1.6 billion, 1.9 billion, and 2.3 billion yuan, with net profit growth targets of at least 25%, 65%, and 100% respectively [2][6] - The company has accumulated expertise in material processes and precision coating technology, supporting tactile substrates for low-cost mass production [2][7] Market Dynamics - The global adhesive materials market has seen a compound annual growth rate (CAGR) of approximately 7% over the past five years, with significant growth potential [2][8] - The Chinese market is projected to reach a sales volume of 43.9 billion square meters by 2025, with an annual CAGR of 8% from 2021 to 2025 [2][9] Competitive Advantages - Jinghua New Materials has a competitive edge due to its wide application range, high-margin product mix, and technological synergies [7] - The company is actively transitioning towards high-value products in electronic and optical grades, aiming to replace imports in the new energy sector [3][11] Financial Performance and Projections - The industrial-grade adhesive segment is expected to generate 1 billion yuan in revenue in 2024, accounting for 54% of total revenue, with a gross margin of 15% [3][13] - The electronic-grade adhesive segment is projected to achieve approximately 500 million yuan in revenue in 2024, representing 26% of total revenue, with a gross margin of 27.5% [3][15] - Future revenue projections for 2025 to 2027 are 2.23 billion, 2.64 billion, and 3.16 billion yuan, with corresponding net profits of 80 million, 120 million, and 160 million yuan [18] Production Capacity and Expansion - The company has production bases in Jiangsu, Anhui, Zhejiang, Sichuan, and Guangdong, with new projects entering the performance release phase [16] - New production lines are expected to be launched in 2025, adding 150 million square meters of capacity in electronic and optical grades [16] Emerging Trends - The trend of domestic substitution in the consumer electronics sector is becoming more pronounced, particularly in new display materials [12] - Jinghua New Materials has made breakthroughs in OCA (Optically Clear Adhesive) products, which are critical for mobile touch screens [12] Role in Robotics - Jingzhigan focuses on full-palm tactile solutions for humanoid robots, providing high sensitivity and low-temperature drift advantages [17] Conclusion - Jinghua New Materials is well-positioned to capitalize on the growing adhesive materials market, with a strong focus on high-value products and innovative applications in robotics and medical fields, supported by ambitious growth targets and a solid production capacity expansion plan [2][8][18]

Investment Rating - The report initiates coverage with a rating of "Accumulate" for the company [3][5]. Core Insights - The company focuses on adhesive materials, aiming for market share growth in both indoor and outdoor home decoration sectors in 2024, while also expanding into new products in the automotive aftermarket and packaging markets [1]. - The company has successfully entered the supply chain of CATL, the world's largest power battery manufacturer, providing various adhesive tapes for battery assembly [1]. - The optical adhesive film product line covers high-end applications in mobile displays, including foldable screens and curved screens [1]. Financial Performance - In 2024, the company is projected to achieve revenue of 1.88 billion yuan, a year-on-year increase of 20.94%, with electronic-grade adhesive materials revenue expected to reach 494 million yuan, up 48.75% year-on-year [2]. - The gross margin for electronic-grade adhesive materials is forecasted at 27.45%, an increase of 3.35 percentage points year-on-year [2]. - The company maintains a leading position in adhesive material production capacity, with plans for significant production lines across multiple provinces [2]. Profit Forecast - The projected net profits for the company from 2025 to 2027 are 82 million yuan, 103 million yuan, and 123 million yuan, respectively, with corresponding P/E ratios of 57.47, 46.18, and 38.63 [3].

Meeting Details - The fourth supervisory board meeting of Shanghai Jinhua Adhesive New Materials Co., Ltd. was held on May 22, 2025, with all three supervisors present [1][2] - The meeting was convened in accordance with relevant laws and regulations, ensuring the legality and validity of the resolutions [1] Resolutions Passed - The proposal for the 2024 profit distribution plan was approved, with details to be disclosed in a separate announcement [1][2] - A resolution to cancel stock options and repurchase restricted stocks for two incentive objects who have left the company was passed, involving 64,400 restricted stocks and 50,000 stock options [2] - The adjustment of the repurchase price for restricted stocks in the 2024 incentive plan was approved, changing the price from 4.24 yuan per share, with further details to be disclosed [2][3]

Core Viewpoint - The company, Shanghai Jinhua Adhesive New Materials Co., Ltd., is holding an investor briefing on May 19, 2025, to discuss its 2024 annual and Q1 2025 performance, allowing for interactive communication with investors [1][2]. Group 1: Meeting Details - The investor briefing is scheduled for May 19, 2025, from 13:30 to 14:30 [2][3]. - The meeting will take place at the Shanghai Stock Exchange Roadshow Center, accessible via the website: https://roadshow.sseinfo.com/ [2][3]. - The format of the meeting will include video recording and online interaction [2][3]. Group 2: Participation Information - Investors can submit questions from May 12, 2025, to May 16, 2025, by visiting the pre-submission section on the Roadshow Center website or via the company's email [3]. - The company will address commonly asked questions during the briefing [3]. Group 3: Participants - Key participants in the meeting will include the Chairman and General Manager, Mr. Zhou Xiaonan, the Board Secretary, Ms. Pan Xiaochan, the Chief Financial Officer, Mr. Yin Li, and Independent Director, Mr. Ma Yiqun [2].