Core Viewpoint - The company, Luoyang Jianlong Micro-Nano New Materials Co., Ltd., reported a significant decline in revenue for 2024, with total operating income of 779 million yuan, a year-on-year decrease of 20% [1]. Revenue Composition - The main business segments, including gas separation and life health, experienced revenue declines of 16% and 58% respectively, with changes in customer structure noted [1][2]. - The company’s primary products, including medical oxygen molecular sieves and industrial oxygen molecular sieves, generated a total revenue of 615.89 million yuan, down 27.71% year-on-year, primarily due to a 32.13% drop in average selling prices despite a 6.51% increase in sales volume [2][3]. Downstream Demand and Price Changes - The demand for medical oxygen molecular sieves decreased by 54.05% due to inventory adjustments by downstream customers following a peak demand period from 2020 to 2023 [3]. - The price of lithium salt, a key raw material, fell from 538,000 yuan per ton at the beginning of 2023 to approximately 76,300 yuan per ton by the end of 2024, a decline of about 85.82%, which contributed to the reduction in selling prices [3][4]. Comparison with Industry Peers - The revenue trends of comparable companies in the industry showed a similar downward trajectory, with Jianlong Micro-Nano's revenue decline aligning with that of Wanrun Co. and others, while Zhongchumai's revenue increased due to a 68% growth in overseas sales [5][6]. - The differences in revenue growth rates among peers are attributed to variations in product structures, downstream application industries, and raw material dependencies [5][6]. Customer Structure and Sales - The company identified changes in its top five customers across different business segments, noting that three new customers entered the top five for the gas separation segment [9][10]. - The life health segment's major customers, including Yuyue Medical and Kangjuren, reported revenue declines of 22.42% and 32.02% respectively, reflecting a broader market trend of reduced demand [7][9]. Domestic vs. Overseas Revenue - In 2024, domestic sales revenue was 579.74 million yuan, down 27.23%, while overseas sales increased by 13.36% to 199.01 million yuan, driven by growth in animal feed molecular sieve sales [12][13]. - The disparity in revenue trends between domestic and overseas markets is attributed to differences in product structure and pricing strategies, with overseas sales generally yielding higher profit margins [14][16]. Cost Structure and Supplier Relationships - The company reported a 36% decrease in direct material costs, while manufacturing expenses rose by 40%, indicating a shift in cost structure due to raw material price fluctuations [17][18]. - The top five suppliers included new entrants, and the company provided details on procurement amounts and relationships, indicating a strategic shift in supply chain management [22].

Core Viewpoint - The company, Jianlong Micro-Nano, reported a significant decline in revenue for 2024, with total operating income of 779 million yuan, a year-on-year decrease of 20%. The decline is attributed to changes in product and customer structure, particularly in the gas separation and life health business segments, which saw revenue drops of 16% and 58% respectively [1][3]. Revenue Composition - The company's main business segments contributed a total revenue of 678.66 million yuan, accounting for 87.15% of total operating income. The primary products include medical oxygen molecular sieves, industrial oxygen molecular sieves, industrial hydrogen molecular sieves, and adsorption drying molecular sieves, which collectively generated 615.89 million yuan, representing 79.09% of total revenue [2][3]. - The medical oxygen molecular sieve segment experienced a revenue drop of 69.31% compared to 2023, primarily due to a 54.05% decrease in sales volume and a 33.21% decline in average selling price [4][3]. Downstream Demand and Market Trends - The decline in demand for medical oxygen molecular sieves is linked to a post-pandemic inventory adjustment by downstream customers, leading to reduced purchasing activity. The price of lithium salt, a key raw material, fell by approximately 85.82%, further impacting product pricing [3][4]. - The industrial oxygen molecular sieve segment's revenue decline is influenced by reduced capital expenditures in traditional industries such as steel and metallurgy, which saw a 1.7% decrease in crude steel production in 2024 [4][5]. Comparison with Industry Peers - The revenue trends of Jianlong Micro-Nano align with those of comparable companies in the industry, such as Wanrun and Zhongchumai, which also reported declines. However, Zhongchumai's revenue increased due to a 68% growth in overseas sales, contrasting with Jianlong's domestic revenue drop of 27.23% [5][10]. - The differences in revenue performance among peers are attributed to variations in product structure, downstream application industries, and raw material dependencies [5][10]. Customer Structure and Sales Dynamics - The company identified changes in its top five customers across different business segments, noting the presence of new customers and shifts in purchasing behavior. The sales amounts and relationships with these customers were detailed, indicating a need for strategic adjustments in response to market dynamics [10][12]. - The company’s overseas sales reached 199 million yuan, a 13.36% increase year-on-year, while domestic sales fell to 579 million yuan, a decrease of 27.23%. This disparity is attributed to differences in product structure and pricing strategies between domestic and international markets [14][15]. Gross Margin Analysis - The gross margin for overseas sales was 34%, which is 6.91 percentage points higher than that for domestic sales. This difference is due to the company's differentiated pricing strategies based on market characteristics [14][16]. - The competitive landscape in the domestic market is more intense, leading to price sensitivity among customers, which has pressured overall gross margins [16][15]. Audit and Revenue Verification - The company’s external auditor conducted a thorough review of the authenticity of overseas revenue, verifying 69.44% of the reported overseas sales through various documentation and customer confirmations [18][19].