Core Viewpoint - The report highlights the financial performance and operational status of Quechen Silicon Chemical Co., Ltd. for the first half of 2025, showcasing growth in revenue and net profit, alongside a focus on sustainable practices and innovation in the silica industry. Company Overview and Financial Indicators - The company achieved a revenue of approximately 1.11 billion yuan, representing a year-on-year increase of 3.87% [2] - The total profit reached approximately 322 million yuan, up by 5.67% compared to the previous year [2] - The net profit attributable to shareholders was around 276 million yuan, reflecting a growth of 5.44% [2] - The net cash flow from operating activities increased significantly by 56.38% to approximately 336 million yuan [2] - As of June 30, 2025, the company's total assets amounted to approximately 4.08 billion yuan, a 6.92% increase from the end of the previous year [2] Business Operations and Market Position - The company specializes in the research, development, manufacturing, and sales of precipitated silica, becoming one of the world's leading manufacturers in this field [3] - It operates three domestic production bases in Wuxi, Chuzhou, and Sanming, and one overseas base in Thailand, with a total silica production capacity ranking third globally [3] - The primary markets for the company's products include the rubber industry, particularly for high-performance tires, animal nutrition, toothpaste, and silicone rubber [3] Industry Trends and Developments - The demand for green tires, which utilize high-dispersion silica, is increasing due to their low rolling resistance and enhanced performance, aligning with global sustainability trends [3][4] - The tire industry is shifting towards sustainable materials, with major manufacturers adopting renewable and recycled materials to meet environmental standards [4][5] - The company is actively involved in the development of biomass-based silica production technologies, which significantly reduce carbon emissions and enhance product competitiveness [10] Research and Development - The company has established a New Materials Technology Research Institute to foster innovation and collaboration with research institutions, focusing on new silica applications and other inorganic materials [3] - Continuous investment in R&D has led to significant advancements, including the development of high-dispersion silica production technologies and the establishment of a post-doctoral research station [16] Competitive Advantages - The company maintains a comprehensive supply chain, producing key raw materials such as sodium silicate and sulfuric acid in-house, which stabilizes raw material quality and mitigates cost fluctuations [19][20] - Strong relationships with major international tire manufacturers enhance the company's market presence and recognition, making it the largest exporter of silica in China [17][18]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [3][9]. Core Insights - The company is the sole domestic supplier of special carbon black for high-voltage cables, with its first phase of the "100,000 tons/year high-voltage cable shielding material using nano carbon materials project" entering trial production by the end of June 2024 [1]. - The technical assessment of the new product "conductive carbon black for 110kV and 220kV cable semi-conductive shielding materials" by a committee of industry experts confirmed that its performance meets international advanced standards, breaking foreign technology monopolies [1]. - The company is also advancing its second phase project focused on high-voltage submarine cable shielding materials, aiming for domestic industrialization [2]. Financial Summary - The projected revenues for 2025, 2026, and 2027 are estimated at 30.95 billion, 37.04 billion, and 47.84 billion CNY respectively, with net profits of 3.75 billion, 4.18 billion, and 5.69 billion CNY [3]. - The company’s revenue growth rates are expected to be 36.59% in 2025, 19.68% in 2026, and 29.15% in 2027 [4]. - The earnings per share are projected to increase from 1.85 CNY in 2025 to 2.81 CNY in 2027, with a corresponding decrease in the price-to-earnings ratio from 13.10 to 8.64 [4]. Market Position and Trends - The company is positioned to benefit from the increasing demand for high-dispersion silica in green tires, which can reduce rolling resistance by approximately 30% and improve fuel efficiency by 5-7% [2][46]. - The global market for precipitated silica is projected to grow from approximately 4.5 billion USD in 2024 to 6.5 billion USD by 2028, with China’s demand growth rate expected to exceed the global average [39][41].

Summary of Key Points Core Viewpoint - The report details the fundraising activities and the usage of raised funds by Shandong LianKe Technology Co., Ltd., highlighting the amounts raised, their allocation, and the current status of these funds as of March 31, 2025 [1][2]. Fundraising Overview - The total net amount raised from the initial public offering (IPO) was RMB 596,312,839.61 after deducting issuance costs of RMB 52,972,160.39 [2]. - The company was also approved to raise RMB 265,472,460.69 through a simplified procedure for a specific audience, with all funds received by June 27, 2023 [2]. Fund Usage and Balance - The net amount from the IPO was allocated as follows: - Pre-investment project replacement: RMB 160,118,544.89 - Post-investment project replacement: RMB 169,401,612.76 - Bank loan repayment: RMB 120,000,000.00 - Working capital: RMB 124,972,046.07 - Total interest income: RMB 14,990,416.15 - Remaining balance as of March 31, 2025: RMB 36,811,052.04 [2][3]. - For the funds raised through the simplified procedure, the allocations were: - Pre-investment project replacement: RMB 42,882,174.99 - Post-investment project replacement: RMB 205,344,603.35 - Total interest income: RMB 6,662,477.79 - Remaining balance as of March 31, 2025: RMB 23,908,160.14 [2][3]. Fund Management - The company has established a fundraising management system to ensure compliance with relevant laws and regulations, including the storage of funds in dedicated bank accounts under a tripartite supervision agreement [4][5]. Investment Project Status - There were no changes or transfers in the investment projects funded by the raised capital [6]. - The actual investment amounts for various projects differed from the committed amounts, with reasons provided for discrepancies, such as ongoing construction or market conditions affecting project timelines [8][9]. Project Benefits and Performance - The report includes a table detailing the benefits realized from the investment projects, with some projects unable to be individually assessed for profitability due to their nature [9][10]. - The "10,000 tons/year high-dispersed silica project" and the "10,000 tons/year high-pressure cable shielding material project" are highlighted, with the latter expected to generate significant profits once fully operational [10][11]. Idle Funds - The company has not utilized idle funds for purposes other than those specified in the fundraising commitments [11].

山东联科科技股份有限公司 2024年度募集资金存放与使用情况 专项报告 根据中国证券监督管理委员会发布的《上市公司监管指引第 2 号—上市公司 募集资金管理和使用的监管要求》和深圳证券交易所发布的《深圳证券交易所上 市公司自律监管指引第 1 号—主板上市公司规范运作》的规定，山东联科科技股 份有限公司（以下简称"公司"或"本公司"）管理层编制了募集资金 2024 年 度存放与使用情况的专项报告。 一、募集资金基本情况 1、首次公开发行股票 （1）首次公开发行股票募集资金金额和资金到账时间 根据中国证券监督管理委员会（以下简称"中国证监会"）《关于核准山东 联科科技股份有限公司首次公开发行股票的批复》（证监许可[2021]1813 号）， 山东联科科技股份有限公司获准向社会公开发行人民币普通股（A 股）股票 45,500,000.00 股，每股发行价格 14.27 元，募集资金总额为 649,285,000.00 元 ， 减 除 发 行 费 用 52,972,160.39 元 后 ， 本 公 司 本 次 募 集 资 金 净 额 596,312,839.61 元。上述资金于 2021 年 6 月 16 日全部到位 ...