Core Viewpoint - Company reported significant growth in net profit and revenue for Q1 2025, driven by strategic acquisitions and improved product margins. Financial Performance - In Q1 2025, the company's total revenue reached 614 million, a year-on-year increase of 12.01% [20] - The net profit attributable to shareholders was 123 million, reflecting a substantial year-on-year growth of 48.81% [20] - The net profit excluding non-recurring items increased by 68.76%, amounting to 114 million [20] Growth Drivers - The growth in net profit is attributed to the acquisition of the remaining stake in Guolian Wanzhong, which increased the company's ownership from 94.6029% to 100% [10] - Enhanced product structure and cost control measures contributed to improved gross margins [10][2] Direct Sales Model - The direct sales model achieved a growth rate of 36.41% in 2024, with a maintained gross margin of 36.41% [3][5] Product Development and Market Expansion - The company is focusing on silicon carbide (SiC) products, which are currently in the verification phase with major automotive clients like BYD [4] - The SiC main drive chip has a yield target of over 80% for mass production in 2025, with applications expanding into energy storage and charging stations [4] - The company is actively developing new products for emerging applications such as low-altitude economy and 5G-A communication [8] Challenges and Management - Internal offsets decreased from 625 million in 2023 to 501 million in 2024, indicating improved management of related transactions [7] - The company is monitoring foreign exchange risks closely, with a net exposure hedge yield of zero for 2024 [13] Strategic Outlook - The company aims to create a world-class leading enterprise and is open to potential acquisitions to enhance its semiconductor industry chain [16] - The production line for consumer electronic ceramic products has been completed and is ramping up to meet revenue targets [15]

Financial Performance - The net profit for Q1 2025 increased by 48.81% year-on-year, primarily due to product structure optimization and enhanced cost control, with gross profit levels improving [5] - The net profit attributable to shareholders grew by 39.87% year-on-year, with the difference in growth rates attributed to the acquisition of the remaining equity of Guolian Wanzhong, resulting in 100% ownership [5] - The revenue for Q1 2025 saw a year-on-year increase of 12.01%, driven by strong market expansion and rapid revenue growth in electronic ceramics and silicon carbide power modules [3] Operational Highlights - The direct sales model achieved a growth rate of 36.41% in 2024, with a maintained gross margin of 36.41% [3] - The internal offset amount decreased from 625 million yuan in 2023 to 501 million yuan in 2024, indicating improved financial management [4] - The company is actively developing new products for emerging applications in low-altitude economies and is expanding its production capacity for GaN and SiC products [4] Product Development and Market Strategy - The silicon carbide main drive products are currently in the verification phase with major automotive clients, targeting a yield rate of over 80% for the main drive chips by 2025 [3] - The company has established a comprehensive manufacturing process platform for precision ceramic components, achieving key technical indicators that meet international standards [6] - The company plans to enhance its competitive edge in the semiconductor market by focusing on technological innovation and resource optimization [4] Challenges and Risk Management - The company reported a significant increase in accounts receivable by 45.07% year-on-year, attributed to timing differences in customer payments and extended receivable periods [7] - The net open hedging gain for 2024 was reported at -608,529.85 yuan, primarily due to exchange rate fluctuations, with ongoing monitoring of foreign currency transactions to mitigate risks [8] - The company is addressing the challenges in the supply chain and technology for its silicon carbide products while ensuring effective integration of its semiconductor and electronic ceramics businesses [4][5]