Core Viewpoint - Weifang is a significant chemical city in Shandong, with high-end chemicals being a crucial pillar industry, highlighted by the development of Shandong Furi Xuanwei New Materials Technology Co., Ltd. [1] Company Overview - Shandong Furi Xuanwei New Materials Technology Co., Ltd. was established in June 2021 as a collaboration between a research team led by Professor Li Shaoxiang from Qingdao University of Science and Technology and Furi Group, focusing on functional coating materials [1] - The company has an annual production capacity of 100,000 tons of special functional coating materials and a research and development center covering over 2,000 square meters [1] Achievements and Growth - Furi Xuanwei has evolved into a national high-tech enterprise and a specialized and innovative enterprise in Shandong, with one provincial-level research platform and three municipal-level research platforms [3] - The company has formed partnerships with renowned institutions such as Ocean University of China and Jimei University, contributing to over 20 invention patents and significant technological projects [3] - The company has achieved a remarkable compound annual growth rate of 200% over the past three years [3] Product Offerings - The product range includes long-lasting anti-corrosion, cooling, thermal insulation, fire resistance, explosion-proof, and noise reduction features, applicable in military, marine, petrochemical, automotive, and large infrastructure sectors [3] - Key products include thermal shielding energy-saving coatings, marine heavy-duty anti-corrosion coatings, special anti-corrosion coatings for petrochemical energy, and water-based industrial anti-corrosion coatings [3][4] Technological Advancements - The thermal shielding energy-saving anti-corrosion coating can reduce surface temperatures by over 15°C and internal temperatures by 8-10°C, achieving leading domestic standards and breaking foreign technology monopolies [3] - The marine heavy-duty anti-corrosion coating can be applied in wet and rusty conditions and underwater, with zero VOC emissions, recognized as a national leading level and widely used in large marine projects [4] Market Position - The company is a qualified supplier for major state-owned enterprises like Sinopec and PetroChina, providing products and services to over 100 petrochemical units nationwide [4] - In June 2023, the company received factory recognition from a classification society, leading to immediate orders, indicating a strong future in the shipbuilding coating market [4]

Group 1: Company Strategy and Market Expansion - The company is actively seeking overseas market opportunities and accelerating its global trade strategy in response to increasing market competition and tariff barriers [1] - The company is currently exploring Southeast Asia and parts of Africa for potential overseas factory locations [5] - The company is expanding its non-U.S. market orders in light of tariff impacts [1] Group 2: Financial Performance and Projections - The company anticipates a positive impact on its second-quarter profits due to the recent tariff reductions, with U.S. customers resuming orders [2] - The company’s monthly average shipment for its coating business is approximately 2,000 tons [5] - The company’s new energy project has a capacity utilization rate of around 60% [5] Group 3: Shareholder and Market Perception - The company is implementing significant share buybacks and high dividends to maintain its image in the secondary market [5] - The company is addressing concerns regarding major shareholder equity pledges and is actively working to resolve judicial freeze issues [5] - The company has received a total of 320 million yuan in heating cost subsidies, with 270 million yuan audited and 50 million yuan unaudited [6] Group 4: Product Development and Certifications - The company is in the process of obtaining military and maritime certifications, with ongoing efforts to secure the China Classification Society certification [5] - The company’s silicon negative electrode material project is currently in the debugging phase [2] - The company has not yet applied for certifications from the Norwegian and American classification societies [5]