Core Viewpoint - The company is facing challenges in the sunscreen market due to slowing demand, increased competition, and adverse weather conditions affecting sales, leading to a decline in performance and pricing adjustments [2][5]. Group 1: Performance Decline and Response Strategies - Starting in the second half of 2024, the sunscreen market demand is expected to slow down, leading to a decrease in the shipment volume of sunscreen agents and a subsequent price reduction [2]. - The increase in inventory at the end of the reporting period is attributed to stockpiling of certain products, while new production lines are still ramping up capacity [2]. - In Q1 2025, the performance decline is expected to worsen due to increased rainy weather in Europe and North America, which negatively impacts the sales of sunscreen products and reduces downstream purchasing demand [2]. - The company is focusing on consolidating its leading position in sunscreen agents, advancing new product breakthroughs, and enhancing research investment in formulations [2]. - Additionally, the company aims to improve its management system, operational efficiency, and cost control while accelerating the construction of overseas bases [2]. Group 2: Market Expansion in Personal Care Ingredients - In Q3 2023, the company successfully launched 12,800 tons/year of amino acid surfactants and 3,000 tons/year of the new anti-dandruff agent pyrithione ethanolamine salt (PO), with initial results in customer certification and promotion [3]. - The company plans to strengthen market development by providing customized solutions to ensure project efficiency and effectiveness [3]. Group 3: Capacity Utilization and Market Competitiveness - The overall capacity utilization rate for cosmetic active ingredients and their raw materials in 2024 is affected by the ramp-up of new production lines [4]. - The company is a major global manufacturer of sunscreen agents, holding over 20% market share, with strong competitiveness in sunscreen and synthetic fragrance sectors [4]. - Core competitive advantages include a rich product structure, innovative R&D, optimized production and quality management, and collaboration with high-quality customers [4]. Group 4: Industry Outlook and Overseas Factory Progress - The global personal care products industry is stabilizing, with intensified competition in the sunscreen market, yet the overall market potential remains significant [5]. - Leading raw material manufacturers with comprehensive systems, international layouts, and stable supply capabilities are expected to further strengthen their advantages [5]. - The construction of the company's personal care products production base in Malaysia is progressing well, with product launches expected in the second half of this year [6]. Group 5: Product Pricing Strategy - The company states that the prices of its main products will follow market trends, and future adjustments will consider overall market conditions [7].

Group 1: Performance Overview - The company's performance decline is attributed to price reductions in sunscreen agents due to decreased market demand and increased competition [3][4] - In Q1 2025, the decline in performance is expected to continue, influenced by adverse weather conditions in Europe and North America, leading to lower sales during the peak season [4] - The gross profit margin of the main business has decreased, impacting net profit and earnings per share [4] Group 2: Market and Product Development - The company has a production capacity of 12,800 tons/year for amino acid surfactants and 3,000 tons/year for the new anti-dandruff agent, which have been successfully launched [5][6] - The sunscreen product market share exceeds 20% globally, with the company being a leading manufacturer in this sector [6] - The company is focusing on enhancing market development and providing customized solutions to downstream clients [5][6] Group 3: Strategic Responses - To counteract market fluctuations, the company is concentrating resources to maintain its leading position in sunscreen agents and is investing in research and development [4] - The management system and processes are being improved to enhance operational efficiency and cost control [4] - The company is also accelerating the construction of overseas bases to strengthen its risk management capabilities [4] Group 4: Future Outlook - The global personal care market is expected to grow steadily, with sunscreen and hair care products remaining high-demand categories [6] - The company is building a personal care production base in Malaysia, with products expected to be launched in the second half of the year [7] - Future price adjustments for products will depend on market supply and demand, costs, and the company's strategic development [8]