Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 2.765 billion in the first half of 2025, representing a year-on-year increase of 24.7%. The net profit attributable to shareholders was 52 million, up 23.7% year-on-year, while the net profit after deducting non-recurring items was 29 million, compared to a loss of 3 million in the same period last year [3][4]. - In Q2 alone, the company achieved a revenue of 1.5 billion, marking a significant year-on-year growth of 57.2%. The net profit attributable to shareholders for Q2 was 28 million, a slight decrease of 0.7% year-on-year, while the net profit after deducting non-recurring items was 17 million, showing a small profit compared to the previous year's loss [3][4]. - The display materials segment showed rapid growth, with a 43.8% increase in revenue, while the application materials segment saw a decline of 19.39%. The growth in display materials is attributed to the acceleration of orders from Shenzhen Guoxian for automotive displays and 3A cover plates [8]. - The gross profit margin for the period was 16.4%, an increase of 0.6 percentage points year-on-year. The gross profit margin for application materials decreased by 4.05 percentage points to 14.79%, while the new display segment saw an increase of 2.29 percentage points to 16.74% [8]. - The company is expected to expand its new materials business and increase production of UTG cover plates, with projected net profits of 160 million and 230 million for 2025 and 2026, respectively, corresponding to PE ratios of 77 and 54 [8].

Core Viewpoint - The company is preparing for its 2025 annual general meeting, where key financial decisions and operational strategies will be discussed, including financial results for 2024 and budget proposals for 2025 [1][2][12]. Meeting Details - The annual general meeting is scheduled for May 28, 2025, at 14:30, held at the company's conference room in Fujian Province [1]. - Shareholders can participate through both on-site and online voting, with specific time slots designated for each [1][2]. Financial Proposals - The company reported a projected revenue of 1.5 billion yuan for 2025, reflecting a strategic focus on growth despite a 7.25% decline in net profit for 2024 [12]. - A cash dividend of 0.075 yuan per share is proposed, totaling approximately 31.76 million yuan, which represents 41.92% of the net profit attributable to shareholders [12][13]. Corporate Governance - The company plans to amend its articles of association to reflect changes in registered capital, reducing it from 423.46 million yuan to 423.30 million yuan due to stock option adjustments [14]. - The board of directors has proposed the reappointment of the auditing firm, Deloitte, for the 2025 fiscal year, ensuring continuity in financial oversight [18]. Strategic Initiatives - The company aims to apply for a bank credit line of up to 2 billion yuan for operational financing, with an additional 500 million yuan in guarantees for subsidiaries [15][17]. - The company is focusing on expanding its product lines in the new materials sector, particularly in zirconium-based products, to capitalize on market opportunities in various industries [30][31]. Industry Context - The new materials industry is recognized as a strategic emerging industry in China, with significant growth potential driven by government policies and market demand [31][32]. - The company is positioned to benefit from trends in energy structure reform and the increasing demand for advanced materials in sectors such as renewable energy and automotive [32].