Core Viewpoint - Guangdong Qide New Materials Co., Ltd. has provided a detailed response to the Shenzhen Stock Exchange regarding its application for a specific stock issuance, analyzing its operational performance, capacity utilization, and overseas business developments [1]. Group 1: Financial Performance - The company's revenue for 2022, 2023, and 2024 is projected to be 256.34 million, 283.25 million, and 346.14 million respectively, indicating a continuous growth trend [1]. - Net profit for the same years is expected to be 14.73 million, 8.03 million, and 8.69 million, with gross profit margins of 23.37%, 26.65%, and 22.80% respectively [1]. - For the first half of 2025, the company reported revenue of 178.58 million with a gross profit margin of 25.85% [1]. Group 2: Gross Margin Fluctuations - The gross margin has shown a trend of initial increase, followed by a decrease, and then a rise again, influenced by raw material prices and product structure [2]. - The increase in gross margin in 2023 was primarily due to the rise in the gross margin of modified nylon composite materials, attributed to lower unit costs of key raw materials like PA6 and PA66 [2]. - In 2024, the gross margin decreased due to rising material procurement costs and increased manufacturing expenses, while in the first half of 2025, it improved due to enhanced margins from other modified composite materials [2]. Group 3: Revenue and Net Profit Changes - Revenue growth is attributed to market expansion in the electric vehicle sector and the additional income from the Thai subsidiary [3]. - The net profit decreased in 2023 due to a significant rise in period expenses, remained stable in 2024, and increased in the first half of 2025 due to revenue and gross margin growth with minimal changes in period expenses [3]. - Compared to industry peers, the company's revenue trends align, but net profit trends differ in 2023 and the first half of 2025, influenced by revenue, gross margin, and period expenses [3]. Group 4: Capacity Utilization - The company's capacity utilization rate in 2024 was lower compared to industry peers, primarily due to a shift in business focus from baby products and sports equipment to the automotive sector, resulting in unmet order expectations [4]. - The company is also facing challenges related to production due to the need for capacity reserves and machine switching times [4]. - To improve capacity utilization, the company is enhancing core product competitiveness, expanding overseas markets, and optimizing capacity management [4]. Group 5: Overseas Business Development - In October 2023, the company established a wholly-owned subsidiary in Thailand, which is set to commence production in October 2024 [5]. - The overseas sales revenue has been increasing year by year, and the company has gained operational and management experience in international projects [5]. - The current investment projects include the construction of composite materials production lines in Thailand and the expansion of carbon fiber product production, deemed necessary based on market demand and industry trends [5].