Summary of the Conference Call for Zhongchu Coal Company Overview - **Company**: Zhongchu Coal - **Industry**: Catalysts and Chemical Products Key Financial Performance - **Net Profit**: In the first half of 2025, net profit attributable to shareholders increased by 31.52% to 127 million yuan, while non-recurring net profit rose by 33.41% to 123 million yuan [2][3] - **Earnings Per Share**: Basic earnings per share increased to 0.72 yuan, a rise of 30.91% year-on-year [3] - **Revenue**: Total revenue reached 461 million yuan, a 16.46% increase compared to the previous year [3] Research and Development - **R&D Investment**: R&D expenses increased by 11.43% to 23.4351 million yuan in the first half of 2025 [4] - **Patents**: The company holds a total of 241 patents, including 191 domestic invention patents [4] Business Segments Mobile Source De-NOx Molecular Sieves - **Revenue Contribution**: This segment accounts for approximately 75% of total revenue [2][5] - **Sales Volume**: In the first half of 2025, cumulative shipments reached 1,395 tons, with a target of 2,400 tons for the year [5] - **Future Projections**: Expected to reach 2,800 tons in 2026 and over 3,000 tons in subsequent years [5][7] Collaboration with BASF - **Product Supply**: Zhongchu Coal supplies various grades of products to BASF, including new grades suitable for Euro 7 standards [8][9] - **Market Exclusivity**: All sales in the Asia-Pacific region must go through Zhongchu Coal, establishing it as a potential global exclusive supplier if all products transition to new grades [8][9] Epoxy Propane Catalysts - **Sales Performance**: Nearly 100 tons sold in the first half of 2025, with an expected total of 200 to 300 tons for the year [16][17] - **Pricing**: Prices range from 500,000 to 600,000 yuan per ton, with margins comparable to mobile source products [18] Market Dynamics - **Demand Stability**: Despite the rise of new energy vehicles, the demand for diesel vehicles remains stable, supporting the mobile source de-NOx market [11] - **Competitive Advantage**: Zhongchu Coal has significant cost advantages over BASF's German factory due to lower raw material and production costs [15] Future Growth Opportunities - **High-Purity Products**: Plans to prioritize high-purity quartz sand for quartz crucibles, with initial production expected by the end of 2025 [20][26] - **Sales Targets**: Internal revenue targets for 2025 are set between 800 million to 1 billion yuan, with net profit goals of 180 million to 220 million yuan [30] Conclusion Zhongchu Coal is positioned for significant growth in the catalyst industry, driven by strong financial performance, strategic partnerships, and a focus on innovation and R&D. The company is well-prepared to meet future market demands while maintaining competitive advantages in production costs and product quality.