Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Insights - The company is positioned as a platform enterprise focusing on organic small molecule synthesis, leveraging its core technology in display materials to diversify into pharmaceutical CDMO and electronic materials [1][16]. - The company has established stable partnerships with global pharmaceutical giants and is expanding its pharmaceutical pipeline, with a significant increase in the number of drug candidates [3][21]. - The electronic materials segment is witnessing growth, particularly in semiconductor photoresist materials, with successful validation and ramp-up of production [4][22]. Summary by Sections Display Materials - The display materials sector is experiencing robust growth, with liquid crystal materials benefiting from the increasing size of LCD panels and OLED materials poised for significant expansion due to rising penetration rates in mid-size panels [2][41]. - The company has achieved international leading levels in liquid crystal monomers and is one of the few domestic firms capable of large-scale OLED material production, establishing partnerships with key global players [2][20]. Pharmaceutical CDMO - The company has successfully expanded its pharmaceutical CDMO business, focusing on intermediates and establishing stable collaborations with renowned pharmaceutical companies [3][21]. - As of June 2025, the company has a pipeline of 300 pharmaceutical candidates, reflecting a net increase of 29 candidates compared to the end of 2024 [3][21]. Electronic Materials - The semiconductor photoresist materials are progressing well in validation, with products entering mass production, contributing to revenue growth [4][22]. - The company is also seeing a ramp-up in PI materials, which are expected to enter a growth phase, potentially becoming a significant growth driver for the company [4][22]. Financial Forecast - The company is projected to achieve net profits of 322 million, 384 million, and 500 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 24.74X, 20.76X, and 15.95X [4][5].

Core Viewpoint - The control issue of Xi'an Ruilian New Materials Co., Ltd. has been resolved, with Qingdao Development Zone Investment Construction Group Co., Ltd. recognized as the controlling shareholder, marking a significant shift in corporate governance and ownership structure [3][4][11]. Shareholder and Governance Structure - As of August 13, 2025, Qingdao Development Zone Investment Construction Group holds 25% of the voting rights, allowing it to dominate the board elections [3][4]. - The new board consists of 5 non-independent directors, 3 independent directors, and 1 employee representative, with Liu Xiaochun appointed as chairman and Ji Kaishi as vice chairman [4][11]. - The shareholding structure shows Qingdao Development Zone Investment Construction Group with 22,227,464 shares (12.81%), followed by Ningbo Zhuoshihengli Investment Partnership with 21,166,362 shares (12.19%) [9]. Business Performance and Growth Potential - Ruilian New Materials expects a revenue of 806 million yuan for the first half of 2025, a year-on-year increase of 16.27%, and a net profit of 162 million yuan, reflecting a 69.93% growth [11]. - The company specializes in OLED materials and semiconductor photoresists, playing a crucial role in the display materials industry, aligning with Qingdao's "strong chip and expand screen" strategy [11][14]. Strategic Synergies and Resource Injection - The controlling shareholder, Qingdao Development Zone Investment Construction Group, can leverage its resources to enhance Ruilian's development, particularly in the OLED and pharmaceutical sectors [14][15]. - The collaboration with over 30 companies in the chip and screen industry can create a closed-loop supply chain, improving sales channels and supply chain positioning for Ruilian [14][15]. - Qingdao Development Zone Investment Construction Group plans to inject up to 815 million yuan into Ruilian for operational and project development needs [14][15]. Management and Policy Support - The new governance structure is expected to introduce advanced management practices from the state-owned enterprise sector, optimizing Ruilian's operational efficiency and cost structure [15]. - Close ties with the government will facilitate better communication for securing favorable industrial policies, such as tax incentives and land support, enhancing profitability [15][16].

Group 1: Shareholder and Buyback Activities - Shareholder Lu Yin Investment's buyback plan has exceeded the lower limit of CNY 125 million, with a target upper limit of CNY 250 million [1] - The company is progressing with a buyback plan of CNY 100 million to CNY 200 million, aimed at reducing registered capital and enhancing earnings per share [1] - The restricted stock incentive plan involves the buyback and cancellation of 7,009,780 shares, currently undergoing creditor announcement procedures [1] Group 2: Strategic Partnerships and Collaborations - The company signed a project cooperation letter of intent with Sinopec Catalyst Co., which will facilitate resource sharing and technical complementarity, aiming for product collaboration in the petrochemical catalyst field by 2025 [3] Group 3: Production Expansion Plans - The company plans to invest no more than CNY 300 million in the C05 project for semiconductor materials and polyimide materials, with a theoretical production capacity exceeding 1,000 tons [4] - Current semiconductor material production capacity is fully utilized, and the project is in the preparatory phase, expected to take about two years for completion after obtaining necessary approvals [4] Group 4: Performance and Project Updates - The company's second-quarter performance will be disclosed in the half-year report scheduled for August 22 [5] - The "Zhongjie Neng Wanrun (Penglai) New Materials Phase I Construction Project" has begun trial production of semiconductor materials, with further product launches dependent on trial progress and downstream customer validation [6][7] Group 5: Research and Development Focus - The company is focusing on material research in solid-state batteries, with no plans to produce batteries, and is currently developing high-purity materials in collaboration with universities [7] - The company is actively developing high-performance polymer products, including thermoplastic polyimide and polyether ether ketone, with some products already in sales and others in market promotion and validation stages [7]