Core Viewpoint - The company is optimistic about the fluorinated refrigerant market, driven by stable growth in key sectors such as air conditioning and automotive production, despite challenges in the real estate market [1][2][4]. Market Growth - The fluorinated refrigerant market is experiencing a positive growth trend, particularly in the home air conditioning and automotive sectors. Production of room air conditioners in China increased from 22,247.3 million units in 2022 to 24,487.0 million units in 2023, marking a 13.5% year-on-year growth [2]. - Automotive production also saw growth, with 2023 figures reaching 3,011.3 million units, a 9.3% increase from the previous year [2]. Demand Drivers - The demand for R134a refrigerant is expected to rise due to the higher charging volume in electric vehicles compared to traditional gasoline vehicles, further boosting market demand [3]. - Global industrialization and urbanization, particularly in southern regions, are contributing to increased air conditioning demand, making it one of the most promising sectors in home appliances [3]. Supply and Regulatory Environment - Concerns regarding compliance with the Montreal Protocol's Kigali Amendment are deemed unlikely to impact the market significantly, as the treaty binds over 160 countries, and non-compliance would lead to international trade restrictions [5]. - The company holds a leading position in the HFCs market, with a strong communication network with key domestic and international clients, which supports its optimistic outlook on supply stability [4][5]. Quota Management - The company emphasizes the importance of quota management, stating that adjustments in quota distribution must consider various factors, including production capacity and market demand [7][8]. - The company is well-positioned with a comprehensive range of mainstream products and a leading quota, providing it with greater operational flexibility [8]. Product Development and Innovation - The company is focusing on the development of high-performance fluorinated materials for strategic emerging industries, including aerospace, military, and semiconductors, with ongoing investments in R&D [9][10]. - The company is actively expanding its product offerings in the liquid cooling market, which requires various fluorinated materials for applications in data centers and other high-tech industries [10][17]. Financial Performance and Shareholder Returns - The company has maintained a strong commitment to shareholder returns, having distributed a total of 6.289 billion yuan in cash dividends since its listing, representing 40.13% of cumulative net profit [22]. - The company is optimistic about its long-term profitability and plans to balance value creation with shareholder demands for cash dividends [22].