Core Viewpoint - Guangxin Materials held a performance briefing on November 4, 2025, discussing its business operations, core business progress, and future strategic plans with investors [1] Business Progress - The company has developed environmentally friendly graphene water-based coatings and solvent-free high-solid coatings for the marine anti-corrosion market, which have passed NORSOK M-501 standard testing and some customer site tests. These products are applicable to high-end marine equipment such as offshore oil and gas platforms and wave energy generation equipment. The company expects to achieve bulk sales in strategic core markets between Q4 2025 and Q2 2026 [2] Capacity and Performance - The Longnan base achieved over 150 million in revenue in the first three quarters of 2025. The company reported a net loss of 4.77 million in Q3 2025, primarily due to lower-than-expected revenue from photovoltaic BC battery insulation glue, fixed asset depreciation from the Longnan base, and impairment losses from the sale of a subsidiary. However, excluding credit and asset impairments, the company showed slight operational profitability [3] Strategic Focus - The company has been divesting loss-making assets such as Shenzhen Lejian and Hunan Sunshine to optimize its structure and reduce operational costs. The sale of a subsidiary for 9.8 million is part of this strategy. The company emphasizes that these transactions will not significantly impact production operations. The photolithography and related materials segment is benefiting from PCB market growth driven by AI and robotics, with a focus on providing cost-effective solutions. The company has completed a refinancing process for specific stock issuance in 2024 and currently has no other refinancing plans [4]

Group 1: Company Performance and Financials - The company achieved revenue of over 150 million yuan in the first three quarters of 2025 [3] - The third quarter net profit loss was 4.7743 million yuan, primarily due to accounting adjustments, but actual profit was slightly positive after excluding credit and asset impairments [8] - As of October 31, 2025, the number of shareholders was 25,247 [4] Group 2: Product Development and Market Strategy - The company is focusing on high-performance graphene anti-corrosion coatings for marine engineering, with expectations for bulk sales to strategic core customers between Q4 2025 and Q2 2026 [7][8] - The company has developed environmentally friendly, high-performance water-based coatings and solvent-free high-solid coatings for marine applications, which have passed NORSOK M-501 standard testing [6][8] - The company is actively expanding its product offerings in new functional materials and metal packaging coatings, which has led to increased sales expenses due to a larger sales team and enhanced market promotion efforts [4][5] Group 3: Operational Challenges and Market Conditions - The company faces challenges in the photovoltaic BC battery market, with revenue lower than expected due to customer demands for cost reductions and competitive pricing [6][8] - The marine coatings market has high entry barriers and long customer validation cycles, which have delayed large-scale orders [7][8] - The company is strategically focusing on high-end marine equipment coatings, including offshore oil and gas platforms and wave energy generation equipment, to enhance its market position [6][8]

Core Viewpoint - Guangxin Materials has received approval from the China Securities Regulatory Commission for a simplified stock issuance to raise funds for its electronic photosensitive materials project, aiming to enhance production capacity and financial stability [1][4]. Fundraising and Investment Projects - The company plans to issue 7.9151 million shares at a price of 18.13 yuan per share, raising a total of 143.5 million yuan, which will be directed towards the annual production of 50,000 tons of electronic photosensitive materials and supporting materials [1][2]. - The previous fundraising effort raised 95.985 million yuan, leaving a significant funding gap for the project, necessitating this new round of financing [2][4]. Production Capacity and Product Development - Upon full production, the project is expected to yield an annual output of 16,000 tons of PCB photoresist, 15,000 tons of specialty coatings, 12,000 tons of self-produced resin, 2,000 tons of photoresist for displays and semiconductors, and 5,000 tons of supporting materials [3][5]. - The project aims to optimize existing production capacity and expand into new markets, particularly in photovoltaic new materials and coatings, thereby creating new business growth points [3][6]. Financial Impact and Market Position - The successful fundraising will alleviate external financing pressures, significantly improve the company's total assets and net assets, and enhance its capital structure, thereby reducing financial risks and improving debt repayment capabilities [4][5]. - Analysts predict that the company will achieve an average annual revenue of 1.447 billion yuan and a net profit of 128 million yuan post-project completion [5][7]. Market Recognition and Future Outlook - The simplified fundraising plan has received a "recommended" rating from brokerage firms, indicating confidence in the company's growth potential and capacity expansion [5][7]. - Forecasts suggest that from 2025 to 2027, the company will achieve revenues of 620 million yuan, 827 million yuan, and 1.057 billion yuan, with corresponding net profits of 54 million yuan, 107 million yuan, and 167 million yuan [7].

Core Viewpoint - Jiangsu Guangxin Materials Co., Ltd. (referred to as "Guangxin Materials") is focusing on expanding its product offerings in various functional coatings and materials, particularly in the fields of electronics, photovoltaics, and marine engineering, while also planning to enhance its industrial coatings segment [1][2]. Group 1: Company Overview - Guangxin Materials specializes in the research, production, and sales of various functional coatings, photoresists, and supporting materials, with core businesses in PCB photoresists and 3C consumer electronics coatings [1]. - In 2024, the revenue from PCB photoresist business is expected to account for 54.44% of the company's total revenue, making it the primary source of income [1]. Group 2: Product Development and Market Expansion - The company has been expanding its product applications into photovoltaic adhesives, display photoresists, automotive coatings, functional films, and metal packaging coatings, in response to domestic and international industry trends [1]. - In the photovoltaic sector, Guangxin Materials has achieved an annual revenue of approximately 50 million yuan from its photovoltaic BC battery insulation adhesives [1]. - The revenue from functional films and metal packaging coatings has surged from 10 million yuan in 2022 to 90 million yuan in 2024, indicating rapid growth in the essential consumption market [1]. Group 3: Future Growth Strategies - The company plans to focus on developing marine coatings and industrial protective coatings as key growth areas while maintaining stable development in existing consumer functional materials [2]. - Guangxin Materials has introduced high-performance, environmentally friendly graphene-based coatings for harsh marine environments and has initiated certification for NORSOKM-501, which is essential for marine engineering equipment protection coatings [2]. - The company anticipates that its high-performance graphene heavy-duty anti-corrosion coatings will begin to see volume production in strategic sectors by the third quarter of 2025 [2]. Group 4: Financial Developments - On June 17, Guangxin Materials announced that it received approval from the China Securities Regulatory Commission for a simplified procedure to issue stocks to specific investors for its project aimed at producing 50,000 tons of electronic photosensitive materials and supporting materials annually, which is expected to generate an average annual revenue of 1.447 billion yuan and a net profit of 128 million yuan [2].

Core Viewpoint - The company is expanding its production capacity through a simplified stock issuance process, focusing on electronic photosensitive materials and coatings, which is expected to significantly boost revenue and profit in the coming years [1] Group 1: Investment and Production Capacity - The company has received approval for a simplified stock issuance to raise funds for a project with a total investment of 525 million yuan, aiming to produce 50,000 tons of electronic photosensitive materials annually [1] - Once fully operational, the project is expected to generate an annual revenue of 1.447 billion yuan and a net profit of 128 million yuan [1] Group 2: Revenue Breakdown and Market Focus - In 2024, the company's revenue from photoresists and related materials reached 332 million yuan, accounting for 64.03% of total revenue, showing a year-on-year decline of 1.92% [1] - The company is focusing on new technologies in the photovoltaic sector, particularly in BC cell adhesives, which have generated approximately 50 million yuan in annual revenue, establishing a leading market position [1] Group 3: Coating Business Growth - The company's coating business achieved a revenue of 185 million yuan in 2024, representing 35.67% of total revenue, with a year-on-year growth of 8.08% [2] - The sales of functional film materials and metal packaging coatings saw significant growth, with revenues of 90 million yuan, marking a 66.08% increase year-on-year [2] Group 4: Market Position and Future Prospects - The company is advancing in the anti-corrosion coating sector, launching high-performance graphene-based products and undergoing NORSOK M-501 certification, targeting the marine engineering market [3] - The global anti-corrosion coating market is projected to reach 333.38 billion yuan by 2029, with the company aiming to capture a significant share post-certification [3]

Core Viewpoint - Guangxin Materials reported steady revenue growth for 2024, reaching 518 million yuan, with a gross profit margin of 38.02%, marking a 2.25% increase year-on-year, the highest in five years [1] Financial Performance - The company achieved a revenue of 518 million yuan for 2024, with a gross profit margin of 38.02%, an increase of 2.25% compared to the previous year [1] - Management and financial expenses decreased year-on-year, contributing to stable overall operations [1] - The company recognized goodwill impairment of 29.91 million yuan and reduced deferred tax assets by 25.68 million yuan, impacting operating profit significantly [2] - After adjustments for impairments, the operating profit for 2024 is estimated to be around 46 million yuan, reflecting a year-on-year growth of over 400% [2] Strategic Initiatives - The company is enhancing its comprehensive management capabilities, optimizing resource allocation, and reducing expenses to strengthen its core products, including PCB photoresists and 3C consumer electronics coatings [2] - Guangxin Materials is accelerating the market development of new products in photovoltaic adhesives, automotive coatings, marine engineering coatings, functional films, and metal packaging coatings [2][4] Research and Development - The company has transitioned from a material supplier to a provider of innovative material solutions, focusing on sustainable development [3] - Guangxin Materials has established a 3,000 square meter R&D laboratory in Longnan and upgraded its Jiangyin laboratory to enhance its competitive edge [3] - As of the end of 2024, the company holds a total of 87 effective patents, including 52 invention patents and 35 utility model patents [3] Market Opportunities - The global industrial heavy-duty anti-corrosion coatings market is projected to expand at a CAGR of 4%-5% from 2023 to 2030, indicating growing demand [5] - Guangxin Materials has developed high-performance, environmentally friendly graphene-based coatings that exceed industry standards for salt spray resistance and improve coating efficiency [6] - The company aims to provide efficient, long-lasting, and environmentally friendly solutions for marine facilities, targeting the industrial heavy-duty anti-corrosion coatings market [6][7]