Core Viewpoint - The company aims to strengthen its position in the leather chemical industry by focusing on international market expansion and digital transformation initiatives. Group 1: Business Strategy and Market Expansion - The company plans to deepen its core business in fine chemicals and actively expand into international markets, aspiring to become a globally recognized leather chemical enterprise [1] - In 2024, the company made significant adjustments to its business scope, including terminating investments in unrelated sectors and focusing on its core fine chemical business [1] - The company announced plans to establish subsidiaries in Singapore, Brazil, and Italy to enhance its international presence and reduce logistics costs [2] Group 2: Technological Development and Digital Transformation - The company is accelerating its development in emerging fields such as intelligent manufacturing, particularly in leather machinery and industrial equipment [3] - The company has invested approximately 440 million yuan in projects related to new materials and intelligent equipment, with significant progress already made [3] - The company is advancing its digital transformation by developing customized management systems to improve operational efficiency and product quality control [4][5] Group 3: Financial Performance - In 2024, the company achieved a revenue of 753 million yuan, representing a year-on-year growth of 3.94%, and a net profit of 31.67 million yuan, up 19.97% [5] - In the first quarter of 2025, the company reported revenues of 160 million yuan and a net profit of 5.09 million yuan, with significant increases in sales and R&D expenses [5]

Core Viewpoint - In 2024, the company aims to focus on its core chemical business after divesting from non-performing assets and cross-industry investments [2][5]. Group 1: Company Strategy - The company has terminated its investment intentions in Sichuan Yuehua New Energy Technology Co., Ltd. and paused operations in the virus in vitro diagnostic reagent sector [5]. - The company has fully transferred its stake in the underperforming subsidiary, Weiyuan Dawi Wood Industry Co., Ltd., to streamline operations [5]. - The chairman emphasized the need to expand internationally to strengthen the company's leading position in the leather chemical industry [5][6]. Group 2: Market Development - The leather industry is evolving towards green, low-carbon, functional, lightweight, fashionable, and sustainable trends, which the company aims to align with [6]. - The market for eco-friendly synthetic leather is growing steadily, with increasing consumer preference for fashionable and personalized products [6]. - The company has expanded its water-based synthetic leather division from a small team to nearly 30 members [6]. Group 3: International Expansion - The company plans to establish production bases in Brazil and Italy, as well as a sales center in Mexico to enhance its international presence [6]. - The chairman noted that major players in the leather chemical sector hold over 60% of the global market share, indicating a competitive landscape [5]. Group 4: Technological Advancement - The company is focusing on smart manufacturing, particularly in the leather machinery and industrial equipment sectors, to promote industry transformation [7]. - The first phase of the machinery equipment production line has been completed, with the second phase under construction [7]. - The company is also developing a digital logistics system to meet customer demands in logistics assembly [7]. Group 5: Talent Development - The company is committed to enhancing its talent pool as part of its strategic planning, implementing a management trainee program that has recruited nearly 100 individuals in the past two years [7].