Group 1: Company Overview and Strategic Initiatives - Sichuan Development Longmang Co., Ltd. is focused on its core business, major projects, mineral resources, strategic planning, and core advantages [2] - The company plans to invest CNY 120 million in the extension project of the northern section of the Baizhu Phosphate Mine, which will enhance the mine's service life and support sustainable development [3] - The total phosphate resource reserves of the company’s subsidiaries amount to approximately 130 million tons, with an annual production capacity of 4.1 million tons [3] Group 2: Cost Management and Market Response - The company faces increased cost pressures due to rising prices of raw materials like phosphate rock and sulfur, driven by macroeconomic factors and supply-demand changes [4] - To manage these pressures, the company optimizes internal cost control and adjusts operational strategies based on market conditions [4] Group 3: New Energy Materials Development - New energy materials are a key part of the company's strategic development, extending into lithium iron phosphate and lithium dihydrogen phosphate [5] - The company’s 60,000 tons/year lithium iron phosphate facility has achieved production, while a 100,000 tons/year lithium dihydrogen phosphate project is progressing smoothly [5] Group 4: Market Dynamics and Product Pricing - The market for industrial-grade monoammonium phosphate is growing due to demand from the new energy sector, with the current average market price around CNY 6,859 per ton [6] - The company benefits from an integrated supply chain and strong product quality control, positioning it well in a competitive market [6] Group 5: Export Policies and Market Adaptability - The company adheres to legal regulations and industry standards in its export operations, demonstrating strong market adaptability [7] - It can adjust product structures and sales strategies in response to domestic and international market changes [7]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The Q4 performance of the company met expectations, with revenue of 148 billion yuan, a quarter-on-quarter increase of 48% and a year-on-year increase of 24% [8] - The company expects stable growth in the sales of ternary and four-cobalt precursor materials in 2026, with a projected output of 62,000 tons for ternary precursors in Q4, a quarter-on-quarter increase of 13% and a year-on-year increase of over 50% [8] - Nickel price increases are expected to contribute positively to profits, with the company holding rights to 30,000 tons of nickel metal, potentially generating over 700 million yuan in profit [8] - The company anticipates a turnaround in the phosphate iron segment, with expected sales of 200,000 tons in 2026, following a significant increase in demand and a slight price rise [8] - The company has adjusted its profit forecasts slightly upward for 2026 and downward for 2027, with projected net profits of 2.05 billion yuan and 2.56 billion yuan for 2026 and 2027, respectively [8] Financial Summary - Total revenue is projected to reach 48.14 billion yuan in 2025, with a year-on-year growth of 19.68% [1] - The net profit attributable to shareholders is expected to be 1.57 billion yuan in 2025, reflecting a year-on-year increase of 6.84% [1] - The earnings per share (EPS) is forecasted to be 1.50 yuan in 2025, with a price-to-earnings (P/E) ratio of 33.50 [1] - The company's total assets are estimated at 81.61 billion yuan in 2025, with a debt-to-asset ratio of 58.80% [6][9] - Operating cash flow is projected to be 1.37 billion yuan in 2025, a decrease of 65.2% year-on-year [9]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告之內容概不 負 責，對 其 準 確 性 或 完 整 性 亦 不 發 表 任 何 聲 明，並 明 確 表 示，概 不 對 因 本 公 告 全部或任何部分內容而產生或因依賴該等內容而引致的任何損失承擔任何責 任。 CNGR Advanced Material Co., Ltd. 中偉新材料股份有限公司 （於 中 華 人 民 共 和 國 註 冊 成 立 的 股 份 有 限 公 司） （股 份 代 號：2579） 海外監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第13.10B條 而 作 出。 茲載列中偉新材料股份有限公司（「本公司」）在深圳證券交易所網站刊登的《2025 年 中 偉 新 材 料 股 份 有 限 公 司 可 持 續 發 展 報 告》，僅 供 參 閱。 特 此 公 告。 承董事會命 中偉新材料股份有限公司 董 事 長、執 行 董 事 兼 總 裁 鄧偉明先生 香 港，2026年3月30日 於 本 公 告 日 期，本 公 司 董 事 為：(i)執 行 董 事 鄧 偉 明 先 生、鄧 競 先 生、陶 吳 先 生、 廖 恆 星 先 生、李 衛 華 ...

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 15% compared to the CSI 300 index in the next six months [1][13]. Core Insights - The company's main business in phosphate chemicals remains stable, with significant growth in the new materials sector. The company reported a revenue of 48.415 billion yuan in 2025, a year-on-year decrease of 21.47%, and a net profit attributable to shareholders of 5.156 billion yuan, down 3.4% year-on-year [2][3]. - The decline in revenue is attributed to the company's strategic decision to reduce less profitable trading activities, particularly in soybeans. Despite facing a 84.62% increase in sulfur prices, the company managed to maintain a high gross margin of 36.06% in its phosphate fertilizer business due to its self-sufficient phosphate resources and strategic procurement [3][4]. - The new energy materials segment achieved a revenue of 1.321 billion yuan, marking a 75.30% year-on-year increase, with iron phosphate production rising by 132.13% to 70,800 tons [3][4]. Financial Summary - The company produced 4.6388 million tons of phosphate fertilizer in 2025, and its phosphate rock reserves are approximately 800 million tons, with an annual mining capacity of 14.5 million tons [4]. - The forecasted earnings per share (EPS) for 2026, 2027, and 2028 are projected to be 2.91 yuan, 3.08 yuan, and 3.24 yuan respectively, with a corresponding price-to-earnings (PE) ratio decreasing from 12.30 in 2025 to 10.73 in 2028 [5][9].

Summary of Key Points from Conference Call Records Industry Overview - The conference call discusses the lithium battery materials sector and the electric vehicle (EV) industry, particularly in the context of rising oil prices and geopolitical tensions affecting energy supply chains [1][6][8]. Core Insights and Arguments Lithium Battery Materials - **Profit Recovery Cycle**: 2026 marks the beginning of a profit recovery cycle for lithium battery materials, with a shift from oversupply to a tight balance due to capacity clearance in 2025 [1][8]. - **High Oil Prices**: Expected oil prices between $80-100 per barrel are anticipated to strengthen the logic for electrification, driving global demand for power batteries significantly [1][6]. - **Supply and Demand Dynamics**: The effective capacity for lithium hexafluorophosphate (LiPF6) is projected to be around 290,000 tons in 2026, with a total demand of 240,000 tons, indicating a structural supply gap during peak seasons [1][9]. - **Price Recovery**: Prices for LiPF6 have rebounded by 70% from their lows, indicating a shift into a profit recovery phase [1][9]. Electric Vehicle Market - **Export Growth**: In the first two months of 2026, EV exports surged by 110%, with plug-in hybrid electric vehicles (PHEVs) becoming a new growth point, particularly led by Geely [1][4]. - **Heavy-Duty Electric Trucks**: The penetration rate of electric heavy-duty trucks reached 30%, supported by a government subsidy of 80,000 yuan per vehicle for trade-ins [1][5]. - **Market Trends**: The export of Chinese EVs is expected to perform strongly in regions like Central and South America, Europe, and Southeast Asia, with PHEVs replacing pure electric vehicles as a key growth driver [3][4]. Investment Opportunities - **Key Players**: Companies such as Tianqi Lithium, Molybdenum, and Enjie are highlighted as leaders in the lithium battery materials sector due to their integrated cost advantages [1][5][12]. - **Market Concentration**: The concentration ratio (CR5) for LiPF6 is expected to rise from 62% in 2024 to 81% in 2026, indicating a more consolidated market [9][12]. - **Core Competitors**: Notable companies include Tianqi Materials, which has a market share exceeding 35% in electrolytes, and Enjie, a leader in wet-process separators with over 50% domestic market share [12]. Additional Important Insights - **Cost Advantages**: The cost differential between fuel and electric vehicles is expected to drive demand for EVs, with significant savings in operational costs for electric vehicles compared to traditional fuel vehicles [8][9]. - **Supply Chain Resilience**: The geopolitical landscape and oil supply chain vulnerabilities are prompting a reevaluation of electrification as a viable alternative [6][8]. - **Future Outlook**: The overall market for lithium battery materials is expected to see a significant uptick in demand, with potential for several percentage points increase in growth forecasts due to high oil prices and robust domestic market performance [6][13][14]. This summary encapsulates the critical insights from the conference call, focusing on the lithium battery materials and electric vehicle sectors, highlighting market dynamics, investment opportunities, and future trends.

Investment Rating - The report gives a "Buy" rating for the company, indicating a positive outlook for investment [7]. Core Insights - Longbai Group is a leading enterprise in the titanium industry, focusing on the research and manufacturing of new materials such as titanium, zirconium, and lithium, with over 30 years of experience in the chemical industry [4][18]. - The company plans to acquire Venator UK's chlorination assets, which will enhance its overseas production capacity and distribution channels [4][6]. - The global titanium dioxide market is experiencing a low growth phase, with a compound annual growth rate (CAGR) of 4.5% for capacity and 4.4% for production from 2020 to 2024 [5][42]. - Longbai Group's total titanium dioxide production capacity is expected to reach 1.51 million tons per year by 2025, with significant contributions from both sulfate and chloride processes [4][24]. Company Overview - Longbai Group has a diversified business model, with a total production capacity of 1.51 million tons/year for titanium dioxide, 80,000 tons/year for sponge titanium, and various other materials [4][24]. - The company has a stable shareholding structure, with the largest shareholder being Xu Ran, who inherited shares from the previous chairman [25]. Industry Analysis - The titanium dioxide industry is characterized by a gradual exit of overseas production capacity, while domestic manufacturers continue to expand internationally [5][42]. - The demand for titanium dioxide is closely linked to regional economic performance, with recovery expected in downstream sectors such as coatings, plastics, and paper [5][42]. - The report highlights the competitive landscape, noting that while overseas producers are reducing capacity, Chinese suppliers are gaining market share due to their cost advantages and improved product quality [5][42]. Financial Projections - The company is projected to achieve net profits of 2.027 billion, 2.824 billion, and 3.587 billion yuan from 2025 to 2027, with corresponding earnings per share (EPS) of 0.85, 1.18, and 1.50 yuan [7][9]. - Revenue is expected to grow from 27.539 billion yuan in 2024 to 32.985 billion yuan in 2027, reflecting a recovery in the titanium dioxide market [9].

Core Viewpoint - The company reported a significant decline in revenue and net profit for 2025, primarily due to a strategic reduction in trading business scale, while maintaining stable operations in its fertilizer production segment [4][5]. Group 1: Financial Performance - In 2025, the company achieved revenue of 48.415 billion yuan, a year-on-year decrease of 21.47%. The net profit attributable to shareholders was 5.156 billion yuan, down 3.40% year-on-year [4]. - In Q4 2025, the company recorded a revenue of 10.816 billion yuan, a year-on-year decrease of 27.56% and a quarter-on-quarter decrease of 14.21%. The net profit attributable to shareholders was 427 million yuan, down 53.23% year-on-year and 78.29% quarter-on-quarter [4]. Group 2: Product Performance - The company’s phosphate fertilizer sales reached 4.5 million tons in 2025, a decrease of 3.0% year-on-year, with revenue down 1.6%. Compound fertilizer sales increased by 12.4% year-on-year to 2.04 million tons, with revenue up 17.3% [5]. - Urea sales were 2.85 million tons, up 3.4% year-on-year, but revenue decreased by 11.3%. Sales of feed-grade dicalcium phosphate remained stable at 590,000 tons, with revenue increasing by 25.6% [5]. - The company’s revenue from iron phosphate surged by 56.4% year-on-year, while the new energy materials business saw a significant revenue increase of 75.3% [5]. Group 3: Strategic Developments - The company has nearly 800 million tons of phosphate rock reserves and an annual production capacity of 14.5 million tons. In 2025, it produced 11.7375 million tons of finished phosphate rock [6]. - A joint venture, Juhua New Materials, acquired mining rights for a phosphate mine with a resource volume of 2.438 billion tons, which is expected to enhance the company's resource base [6]. - The company is positioned as the second-largest in China and the fourth globally in phosphate fertilizer sales, accounting for approximately 25% of the domestic annual application volume, highlighting its strategic importance in ensuring fertilizer supply and price stability [7].

Investment Rating - The report maintains an "Outperform" rating for the company, indicating a positive outlook compared to the market [5]. Core Insights - The company reported a revenue of 48.415 billion yuan for 2025, a year-on-year decrease of 21%, primarily due to a reduction in trading activities. The net profit attributable to shareholders was 5.156 billion yuan, down 3.4% year-on-year [5][6]. - The company continues to maintain a high dividend payout ratio of 49.5%, with a total dividend distribution of 2.552 billion yuan for 2025, consistent with the previous year [5]. - The company’s phosphate mining remains robust, with stable prices and a production capacity of 14.5 million tons per year. However, the profitability of phosphate fertilizers has been slightly impacted by rising sulfur prices [5][6]. - The company has optimized its debt structure, reducing the asset-liability ratio to 47.17% [5]. Financial Data Summary - For 2025, the company achieved a gross profit margin of 20.21%, with a net profit margin of 11.36% [5]. - The forecast for 2026 and 2027 shows a decline in net profit to 5.036 billion yuan and 5.312 billion yuan, respectively, with corresponding earnings per share (EPS) of 2.76 yuan and 2.91 yuan [7][9]. - The company’s revenue is projected to decrease further in 2026 to 43.811 billion yuan, reflecting a year-on-year decline of 9.5% [7].

Investment Rating - The report maintains a "Buy" rating for the company [6][4]. Core Views - The phosphorous industry chain is expected to remain prosperous, supported by strong downstream demand and tight phosphorous resources [3][4]. - The company has a unique capacity advantage and a high dividend yield, which is anticipated to be sustained [1][4]. Financial Performance - In 2025, the company achieved a revenue of 48.4 billion RMB, a year-on-year decrease of 21%, and a net profit attributable to shareholders of 5.2 billion RMB, down 3% year-on-year [1]. - The fourth quarter of 2025 saw a revenue of 10.8 billion RMB, representing a year-on-year increase of 28% but a quarter-on-quarter decrease of 14% [1]. - The company plans to distribute a cash dividend of 1.2 RMB per share [1]. Product Performance - In 2025, the company sold 4.5 million tons of diammonium phosphate, a decrease of 3% year-on-year, with an average price increase of 1% to 3,437 RMB/ton [2]. - Urea sales increased by 3% to 2.85 million tons, but the average price fell by 14% to 1,754 RMB/ton, leading to an 11% decrease in revenue to 5 billion RMB [2]. - Compound fertilizer sales rose by 12% to 2.04 million tons, with a revenue increase of 17% to 6.5 billion RMB due to strong demand [2]. - The company’s iron phosphate sales surged by 56% to 70,000 tons, with revenue increasing by 97% to 600 million RMB, driven by strong demand from the new energy sector [2]. Price Trends - As of March 23, 2026, the prices of key products such as diammonium phosphate and urea have increased by 3% and 8% respectively since early January [3]. - The price of iron phosphate has risen by 23% [3]. Profit Forecast and Valuation - The forecast for net profit attributable to shareholders for 2026 and 2027 has been adjusted to 5.5 billion RMB and 6 billion RMB, respectively, reflecting a decrease of 11% and 9% from previous estimates [4]. - The target price for the company is set at 51.68 RMB, based on a 17x PE valuation for 2026 [4].

Core Viewpoint - The company reported a significant decline in revenue and net profit for 2025, primarily due to a strategic reduction in trading business scale, while maintaining stable operations in its fertilizer production segment [4][5]. Group 1: Financial Performance - In 2025, the company achieved revenue of 48.415 billion yuan, a year-on-year decrease of 21.47%. The net profit attributable to shareholders was 5.156 billion yuan, down 3.40% year-on-year [4]. - In Q4 2025, the company recorded a revenue of 10.816 billion yuan, a year-on-year decrease of 27.56% and a quarter-on-quarter decrease of 14.21%. The net profit attributable to shareholders was 427 million yuan, down 53.23% year-on-year and 78.29% quarter-on-quarter [4]. Group 2: Product Performance - The company’s phosphate fertilizer sales reached 4.5 million tons in 2025, a decrease of 3.0% year-on-year, with revenue down 1.6%. Compound fertilizer sales increased by 12.4% year-on-year to 2.04 million tons, with revenue up 17.3% [5]. - Urea sales were 2.85 million tons, up 3.4% year-on-year, but revenue decreased by 11.3%. Feed-grade dicalcium phosphate sales remained stable at 590,000 tons, with revenue increasing by 25.6% [5]. - The company’s new energy materials business saw a significant revenue increase of 75.3% year-on-year [5]. Group 3: Strategic Developments - The company has phosphate reserves of nearly 800 million tons and an annual raw ore production capacity of 14.5 million tons, producing 11.7375 million tons of finished ore in 2025 [6]. - A joint venture, Juhua New Materials, acquired mining rights for a phosphate mine with a resource volume of 2.438 billion tons, with an average grade of 22.54%. The controlling stake in this venture is expected to be injected into the listed company within three years [6]. Group 4: Market Position - The company ranks second in China and fourth globally in phosphate fertilizer sales, accounting for approximately 25% of the domestic annual application volume, highlighting its strategic importance in ensuring fertilizer supply and price stability [7]. - The company is expected to maintain strong profitability resilience despite significant fluctuations in raw material prices, supported by its integrated mining and production operations [7].