Core Viewpoint - The company reported a revenue of 2.15 billion RMB for H1 2025, reflecting a year-on-year increase of 10.3%, with a net profit of 330 million RMB, showing a slight increase of 0.4% [1] Financial Performance - H1 2025 revenue reached 2.15 billion RMB, with a net profit of 330 million RMB and a net profit excluding non-recurring items of 320 million RMB, marking increases of 10.3%, 0.4%, and 4.1% respectively year-on-year [1] - Q2 2025 revenue was 1.18 billion RMB, showing a year-on-year increase of 4.7% and a quarter-on-quarter increase of 21.0%, with a net profit of 200 million RMB, reflecting a year-on-year decrease of 0.6% but a quarter-on-quarter increase of 44.3% [1] Business Segments - The company operates in six major business segments: electronic materials, catalytic materials, biomedical materials, new energy materials, precision ceramics, and other materials, with applications across various industries including electronics, automotive, and healthcare [2] - Electronic materials revenue for H1 2025 was 340 million RMB, up 23.65% year-on-year, driven by demand recovery in consumer electronics and growth in automotive electronics and AI servers [3] - Catalytic materials generated 460 million RMB in revenue for H1 2025, a year-on-year increase of 12.34%, supported by deepening collaborations with commercial vehicle clients [3] - Biomedical materials revenue was 440 million RMB, showing a slight decline of 0.11% year-on-year, while new energy materials revenue reached 220 million RMB, up 26.36% year-on-year [3] Research and Development - The company maintains high R&D investment, with a R&D expense ratio of 6.1%, down 0.4 percentage points year-on-year [4] - Recent developments include breakthroughs in high-frequency copper-clad laminates and advanced display materials, with several products achieving international standards [4] - The company is focusing on solid-state battery technology and has established a specialized R&D team to enhance product development and customer validation efficiency [3][4] Future Outlook - The company projects net profits of 670 million RMB, 820 million RMB, and 1.01 billion RMB for the years 2025, 2026, and 2027 respectively, maintaining a "buy" rating [4]

Investment Rating - The investment rating for the company is "Buy" and is maintained [10]. Core Views - The company reported a revenue of 2.15 billion RMB for the first half of 2025, representing a year-on-year increase of 10.3%. The net profit attributable to shareholders was 330 million RMB, with a year-on-year change of 0.4% [2][7]. - The company is actively expanding into new fields of ceramic materials, with six major business segments including electronic materials, catalytic materials, biomedical materials, new energy materials, precision ceramics, and others. The products are applied in various sectors such as electronic information, automotive, industrial catalysis, biomedical, new energy vehicles, semiconductors, and digital printing [7][12]. - The company maintains high R&D investment, continuously developing new products and fields. The gross margin and net margin for Q2 2025 were 39.6% and 19.1%, respectively, with a R&D expense ratio of 6.1% [7][12]. Summary by Sections Financial Performance - In Q2 2025, the company achieved a revenue of 1.18 billion RMB, with a year-on-year increase of 4.7% and a quarter-on-quarter increase of 21.0%. The net profit for the same period was 200 million RMB, showing a year-on-year decrease of 0.6% but a quarter-on-quarter increase of 44.3% [2][7]. - The company plans to distribute a cash dividend of 0.50 RMB per 10 shares to all shareholders [2][7]. Business Expansion - The electronic materials segment saw a revenue of 340 million RMB in H1 2025, up 23.65% year-on-year, driven by demand recovery in consumer electronics and growth in automotive electronics and AI servers [12]. - The catalytic materials segment generated 460 million RMB in revenue, a year-on-year increase of 12.34%, as the company deepens cooperation with major commercial vehicle clients [12]. - The biomedical segment reported a slight decline in revenue to 440 million RMB, down 0.11% year-on-year, while the new energy segment achieved a revenue of 220 million RMB, up 26.36% year-on-year [12]. Future Outlook - The company expects net profits to reach 670 million RMB, 820 million RMB, and 1.01 billion RMB for the years 2025, 2026, and 2027, respectively [12].