Investment Rating - The investment rating for Shanghai Chemspec (688602 CH) is not explicitly stated in the provided documents [1][2]. Core Insights - In 2024, the net profit attributable to the parent company was -0.50 billion yuan, a year-on-year decrease of 143.95%, with operating income of 675 million yuan, down 31.11% year-on-year [4][5]. - The geopolitical impact has deepened, leading to increased external uncertainties in international trade and weak overall market performance [4][5]. - The company expects a more optimistic outlook for 2025, with new materials actively developing metallocene co-catalyst projects and polyimide monomer projects, supported by large orders in the CDMO segment [5][6]. Financial Performance Summary - In 2024, the new materials segment generated operating income of 358 million yuan, a year-on-year decrease of 6.03%, with a gross profit margin of 2.70%, down 7.90 percentage points [6]. - The CDMO business reported operating income of 295 million yuan, a year-on-year decrease of 48.29%, with a gross profit margin of 23.17%, down 16.06 percentage points [6]. - In Q1 2025, the company achieved operating income of 243 million yuan, a year-on-year increase of 44.27%, and a net profit of 31 million yuan, up 59.73% year-on-year [5]. Production and Expansion Plans - The ETO production line expansion is expected to be implemented in 2026, with a 50,000-ton project currently under construction, aiming for production of less than 30,000 tons [7].