Core Viewpoint - The company is actively engaging with investors and progressing on multiple fronts, including the development of new materials, acquisitions, and expanding its market presence. Group 1: Investor Communication - On September 19, the company held an investor communication session via an online platform, involving key personnel such as the chairman and financial director [1]. Group 2: Samarium Iron Nitride Magnetic Material Project - The company is in the process of constructing a pilot production line for high-performance samarium iron nitride magnetic powder, expected to be completed by the end of September [2]. - The successful mass production of this project could lead to market expansion in various fields, including electronics and construction, enhancing the company's market share and competitive position [2]. Group 3: Acquisition of Guangzhou Jinnan Magnetic - The company is progressing with the acquisition of 100% equity in Guangzhou Jinnan Magnetic, which is expected to enhance its competitive advantage globally [3]. - The acquisition aims to create synergies in technology and market resources, improving operational efficiency and cost control [3]. Group 4: Other Business Developments - The MIM product line is in its early stages, focusing on technology optimization and market expansion, with new products developed in various sectors [4]. - The first production line for transparent radiation protection materials has been completed, with an annual capacity of 10,000 square meters, targeting medical and security markets [4]. - The company is expanding its overseas presence, with production in Vietnam and sales in North America, showing slight revenue growth in the first half of 2025 [4].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1][24]. Core Views - The company has shown significant growth in protective materials, with a doubling of revenue from radiation protection materials and continuous growth in MIM products [4][5]. - The company achieved a revenue of 451 million yuan in H1 2025, representing a year-on-year increase of 8.3%, while the net profit attributable to shareholders decreased by 8.9% [4][5]. - The company is making progress in new material projects, particularly in transparent radiation protection materials, which fill a domestic technology gap [7][8]. Financial Performance - In Q2 2025, the company reported a revenue of 244 million yuan, up 8.0% year-on-year and 18.3% quarter-on-quarter, with a net profit of 37 million yuan, down 2.1% year-on-year but up 20.6% quarter-on-quarter [6][21]. - The gross profit margin for H1 2025 was 36.00%, a decrease of 2.6 percentage points year-on-year, while the net profit margin was 14.70%, down 3.14 percentage points year-on-year [4][14]. - The company’s revenue projections for 2025, 2026, and 2027 are 1.018 billion, 1.283 billion, and 1.664 billion yuan, respectively, with corresponding net profits of 155 million, 192 million, and 244 million yuan [9][10]. Segment Performance - The adsorption functional materials segment generated revenue of 278 million yuan in H1 2025, down 2.4% year-on-year, while the electronic ceramic components segment saw a revenue increase of 5.4% year-on-year to 78 million yuan [5][12]. - The high-energy radiation protection materials segment achieved a remarkable revenue growth of 108% year-on-year, reaching 65 million yuan, with a gross margin of 59.5% [5][12]. Strategic Initiatives - The company is advancing its acquisition of Guangzhou Jinnan Magnetic Materials Co., aiming for a comprehensive layout in magnetic materials [9]. - The company plans to enhance its market presence in Europe and the United States while expanding into Southeast Asia and the Middle East, focusing on customized, lead-free, and lightweight product solutions [8][9].

Group 1: Overview of Private Economy in Guangzhou - The implementation of the "Guangzhou Regulations to Support the Development of the Private Economy" has led to over 3.5 million private economic entities in the city, with the highest number of newly registered entities among major cities [1] - The contribution of the private economy to GDP reached 43.5% in Q1 of this year, marking a five-year high, with a year-on-year growth of 4.6% [1] Group 2: Innovations in Private Enterprises - Deqing Optics, founded by three returnee PhDs, achieved a breakthrough in domestic laser welding detection, launching the first online defect detection system in China, capturing 30%-40% market share in the domestic laser welding market [2] - New Life Materials has developed several advanced functional materials, including transparent radiation protection materials, filling a domestic gap, with projected sales of over 24 million square meters in 2024 [3] - Weidu Microelectronics has successfully produced the first domestic OLED display driver chip using a 55nm high-voltage process, achieving a threefold increase in shipment volume in 2024 compared to the previous year [4] Group 3: Contributions to Low-Carbon Development - Niuentai has pioneered the application of variable frequency technology in air energy, with a market potential of approximately 30 billion yuan, maintaining an annual growth rate of 25%-30% [6] - The company has installed 176,000 air energy heat pumps in northern China, contributing to a reduction of 1.43 million tons of CO2 emissions [6] Group 4: Government Support and Policies - The local government has provided various support measures for enterprises, including funding, talent subsidies, and R&D investments, facilitating a conducive environment for innovation [7] - Guangzhou has implemented a three-year action plan to cultivate specialized and innovative small and medium-sized enterprises, aiming to nurture 106 national-level "little giant" enterprises by 2024 [8]

Group 1: Market Performance and Product Advantages - The company's radiation protection materials achieved a doubling growth in 2024, driven by technological leadership, superior product performance, cost advantages, and eco-friendly characteristics [1] - The introduction of lead-free radiation protection materials has opened up the market, supported by core patents and innovative results that establish a technological barrier [2] - The flexible lead-free protection materials match the cost of traditional lead-containing products while eliminating harmful substances, addressing global environmental regulations and the demand for lead-free solutions [2] Group 2: Market Penetration Strategies - The company has leveraged over a decade of technological accumulation to develop high-energy radiation lead-free protection materials, which effectively shield X-rays and γ-rays [2] - Targeting sectors such as medical, security, and food safety, the company has introduced products like medical scatter radiation protection blankets and adapted protective materials for food safety testing [2] - The company has successfully expanded its customer base through participation in exhibitions and academic conferences, collaborating with medical institutions and manufacturers [2] Group 3: Research and Development Breakthroughs - The company focuses on a micro-nano powder technology platform, achieving significant breakthroughs in various projects, including infrared absorption materials and transparent radiation protection materials [3] - The development of metal electronic powders and special ultra-fine metal powders is underway, with products entering customer validation stages [3] - The company plans to continue increasing R&D investment, with a projected R&D expenditure of 88.6 million yuan in 2024, representing a 69% increase and accounting for 9.6% of revenue [4] Group 4: Future Strategic Planning - The company aims to strengthen its core competencies in functional materials through sustained R&D investment, enhancing product performance and value [4] - The long-term investment strategy is designed to accelerate product upgrades and establish differentiated competitive advantages in the market [4] - The company anticipates achieving a revenue of 850.996 million yuan in 2024, reflecting a year-on-year growth of 14.94% [4]