Core Viewpoint - The recent detention of Lu Yong, the actual controller and chairman of Suzhou Shiming Technology Co., Ltd. (Shiming Technology), has raised concerns about the company's stability, although the company asserts that this incident is unrelated to its operations [2][4]. Company Background - Shiming Technology was established in December 2001 and went public in July 2016, focusing on the research, production, and sales of nano coloring materials, functional nano dispersions, specialty additives, electronic chemicals, and intelligent color adjustment systems [6]. - The company is a leading supplier of nano coloring materials and functional nano dispersions in China, with its products being critical for the performance of TFT-LCD displays [6]. Recent Developments - Lu Yong became the actual controller of Shiming Technology in February 2024 after acquiring a 10.1631% stake from the previous controller, Lü Shiming, at a price of 11.80 yuan per share, totaling approximately 3.87 billion yuan [3][4]. - Following Lu Yong's detention, Shiming Technology's stock price fell by over 10% on July 29, closing at 15.45 yuan per share, a decrease of 7.87% [2]. Financial Performance - In 2024, Shiming Technology reported a revenue of 697 million yuan, a year-on-year increase of 2.30%, and a net profit of 22.62 million yuan, up 25.61% from the previous year [6]. - The company's gross margin was 25.04%, a decrease of 0.92 percentage points year-on-year, while the net margin was 2.57%, slightly up by 0.01 percentage points [6]. Product Segmentation - The company's revenue from coloring agents reached 572 million yuan, accounting for 82% of total revenue, while specialty additives generated 123 million yuan, making up 17.58% [7]. - Shiming Technology has initiated the construction of a pilot line for its photoresist pigment dispersion, which is crucial for the LCD display industry [7]. Strategic Initiatives - On October 17, 2024, Shiming Technology announced a private placement plan to raise up to 310 million yuan, with approximately 230 million yuan allocated for a project to produce 5,000 tons of LCD display photoresist nano pigment dispersion [8]. - The company has also formed a joint venture with TCL Technology Industry Investment Co., Ltd. to enhance its strategic positioning in the display materials sector [8].

Core Viewpoint - The article discusses the strategic partnership between Shiming Technology and TCL Industrial Investment to establish a joint venture focused on display photolithography color paste, enhancing their competitive edge in the display materials sector [2][4]. Group 1: Joint Venture Details - Shiming Technology and TCL Industrial Investment will jointly invest in a new company named "Changshu Shihua New Materials Co., Ltd." with a registered capital of 20 million RMB, where Shiming holds 66% and TCL holds 34% [2][3]. - The joint venture will be located in Jiangsu Changshu New Materials Industrial Park and will focus on the research and sales of display photolithography color paste [2][4]. Group 2: Financial Performance - In 2024, Shiming Technology reported a revenue of 697 million RMB, a year-on-year increase of 2.3%, and a net profit attributable to shareholders of 22.62 million RMB, up 25.61% year-on-year [4]. Group 3: Investment in Beijing Dingcai - Shiming Technology announced the acquisition of approximately 1.91% of Beijing Dingcai Technology Co., Ltd. for 20.02 million RMB, aiming to enhance collaboration in the field of electronic materials [5][7]. - Beijing Dingcai specializes in OLED organic light-emitting materials and photolithography materials, with successful mass production of high-generation color photolithography and flexible AMOLED display materials [7]. Group 4: Strategic Implications - The partnership with TCL is expected to leverage TCL's resources in the display panel industry to promote the independent development of photolithography-specific nano pigment dispersion technology [4]. - The collaboration aims to create a closed-loop industry chain in the LCD display color photolithography sector, enhancing both companies' capabilities in material supply, technology development, and mass production [7].

Core Viewpoint - The company is a leading supplier in the field of nano coloring materials and functional nano dispersions, focusing on technological innovation and high-quality development to enhance market competitiveness and respond to sustainable development trends [5][6][9]. Company Overview - The company operates in the "C26 Chemical Raw Materials and Chemical Products Manufacturing" sector, specifically in fine chemicals and new materials [5][6]. - The company has established four major production bases in Jiangsu Kunshan, Jiangsu Changshu, Hunan Yueyang, and Liaoning Panjin, focusing on the research, production, and sales of various nano coloring materials and functional additives [6][10]. Industry Situation - The fine chemicals and new materials industry is a high-tech sector with significant market potential, currently experiencing a trend towards high-end, green, and independent development [6][9]. - The domestic market for commercial color paste has grown from approximately 2.41 billion yuan in 2016 to about 5.29 billion yuan in 2023, with a compound annual growth rate of 11.89% [9]. Product and Application - The company's main products include nano coloring materials, functional nano dispersions, and special additives, which are widely used in coatings, textiles, light industry, and medical protection [6][10]. - The water-based color paste is a primary coloring agent in the coatings industry, particularly in environmentally friendly water-based architectural coatings, which dominate the market [9][10]. Downstream Applications - The architectural coatings sector is a significant downstream application for the company's coloring materials, with water-based coatings accounting for about 90% of the market [9][10]. - The textile industry is another strategic core sector for the company, focusing on fiber liquid coloring technology, which promotes energy-saving and emission-reduction processes [10][11]. Financial Data and Shareholder Information - The company plans to distribute cash dividends of 0.50 yuan per share to shareholders based on a total share capital of 322,451,507 shares, amounting to a total distribution of approximately 16.12 million yuan [28]. - The company has undergone a change in controlling shareholder, with Jiangsu Fenghui New Energy Development Co., Ltd. becoming the new controlling entity [29]. Future Development - The company is actively expanding its overseas market presence, particularly in the context of the global container manufacturing market and the internationalization of the new energy vehicle industry [25]. - The company is also focusing on the development of recycled polyester (RPET) as part of its commitment to sustainable practices and reducing carbon emissions [14][15].