Core Insights - The company reported a significant increase in revenue and net profit for the first half of 2025, with revenue reaching 436 million yuan, a year-on-year growth of 27.94%, and net profit of 31.02 million yuan, a substantial increase of 257.08% [1][2] Financial Performance - The operating cash flow net amount was 77.64 million yuan, reflecting a year-on-year increase of 197.2% [1] - Research and development expenses amounted to 36.13 million yuan, accounting for 8.28% of total revenue [2] - Total assets as of June 30, 2025, were 3.245 billion yuan, a slight decrease of 0.32% from the previous year, while net assets attributable to shareholders increased by 1.36% to 2.810 billion yuan [2] Business Segments - The CDMO business experienced notable growth driven by industry trends and customer order cycles, establishing long-term partnerships with leading pharmaceutical companies like Eli Lilly and Bayer [2] - The new materials segment saw stable revenue, although affected by a decline in lithium carbonate prices, impacting product pricing [2] - The company maintains strong competitiveness in display materials, new energy battery materials, and electronic chemicals, supported by ongoing optimization of product structure and production processes [2] Future Outlook - The company plans to deepen its focus on new materials and CDMO sectors, enhancing product competitiveness in response to market demands [3] - In the CDMO sector, the company aims to strengthen collaborations with multinational pharmaceutical firms and explore emerging areas such as peptides, while leveraging global innovative drug policy opportunities [3]

Core Viewpoint - The company has reported its annual financial results, highlighting its business operations, financial status, and future development plans, with a focus on its core business areas in semiconductor materials, display materials, UV curing materials, and organic synthesis materials [1][5]. Company Overview - The company has expanded its core business from UV curing materials in optical communication to four major areas: semiconductor materials, display materials, UV curing materials, and organic synthesis materials, maintaining a mission to provide high-quality materials for high-tech manufacturing [5][6]. - The company operates over 30 subsidiaries across regions including Japan, Singapore, the United States, and East and South China [5]. Business Segments Semiconductor Materials - The semiconductor materials include photoresists and wet process electronic chemicals used in semiconductor manufacturing and advanced packaging, as well as traditional packaging materials like solder balls and epoxy encapsulants [6]. - The company has developed a complete temporary bonding solution for semiconductor manufacturing, which supports various disassembly methods [6]. Display Materials - Display materials consist of photoresists and liquid crystal materials for TFT-LCD and OLED screens, with a significant focus on developing proprietary technologies [7]. - The company’s subsidiary, Hecheng Display, is a key supplier in the mid-to-high-end TN/STN field and has received multiple technology awards for its innovations [7]. UV Curing Materials - UV curing materials are crucial for fiber optic cable manufacturing and include coatings that protect optical fibers and enhance their mechanical and optical properties [8]. - The company has developed advanced UV curing materials and has received several awards for its innovations in this field [8]. Organic Synthesis Materials - Organic synthesis materials include photoinitiators and pharmaceutical intermediates, with a focus on applications in antiviral drugs and antibiotics [9]. - The company’s innovative photoinitiator TMO has gained recognition and awards for its contributions to human health and industry challenges [9]. Industry Characteristics - The semiconductor materials industry is characterized by a broad application field and high demand dispersion, with no significant industry cyclicality, primarily influenced by macroeconomic trends [10]. - The display materials sector exhibits cyclicality due to its dependence on the economic conditions affecting display device sales, with demand typically peaking in the second half of the year [11]. - The UV curing materials market is closely tied to the economic cycle, with stable growth during economic prosperity and declines during downturns [12]. - Organic synthesis materials have a diverse application landscape, with demand influenced by macroeconomic fluctuations and technological advancements, showing no significant seasonality [12]. Financial Data - The company has not required retrospective adjustments or restatements of previous financial data, indicating stability in its financial reporting [13]. - The company’s major accounting data and financial indicators for the past two years are available, reflecting its operational performance [15]. Important Events - The company has approved a profit distribution plan for 2023, proposing a cash dividend of RMB 0.80 per 10 shares, with no stock dividends or capital reserve transfers [16][17]. - The company has undergone a change in its accounting practices due to regulatory requirements, correcting prior accounting errors and adjusting financial statements accordingly [16]. - The company has decided to sell its wholly-owned subsidiary, Dairui Technology, to ensure continued operational stability amid market pressures [18].