Summary of Huami New Materials Conference Call Company Overview - **Company**: Huami New Materials - **Industry**: Special engineering plastics and high-temperature silicone materials Key Financials - **Revenue**: 203 million yuan in the first half of 2025, with a single-digit growth rate [2][5] - **Profit Growth**: Slowed due to increased R&D, sales expenses, and fixed asset depreciation [2][5] - **Revenue Composition**: - Rubber and plastic materials accounted for 73% of total revenue with a gross margin of 25.76% - Rubber and plastic products accounted for 27% with a gross margin of 39.97% [3][10] Core Business Segments - **Special Engineering Plastics**: Largest segment with a capacity of 35,000 tons, gradually releasing production [10] - **High-Temperature Silicone**: Collaborating with the Chinese Academy of Sciences, expected to break even next year [10] - **Self-Lubricating Bearings**: Currently in customer verification phase [10] - **PEEK Materials**: Undergoing product verification, with applications in aerospace and high-speed rail [10][24] Strategic Developments - **New Client Acquisition**: Actively pursuing partnerships with BYD and Chery, with small batch supply expected in 2025 and full-scale production in 2026 [2][12][8] - **Production Capacity Expansion**: New production lines for special engineering plastics and special rubber materials expected to significantly enhance revenue [8][10] Competitive Advantages - **R&D Capabilities**: Over 2,000 material formulations developed, enabling tailored solutions for downstream manufacturers [9][16] - **Market Position**: Strong relationships with major clients like Great Wall Motors and China CRRC, positioning the company as a key player in high-barrier industries [9][16] Industry Trends - **Market Growth**: The modified plastics market is projected to reach 400 billion yuan by 2025, growing at 8%-10% annually [5][14] - **High-End Applications**: Increasing demand for high-end rubber and plastic products in automotive, aerospace, and rail sectors [14][19] Risk Management - **Raw Material Price Fluctuations**: Established inventory management systems to mitigate risks associated with raw material price volatility [13] Future Outlook - **Market Potential**: Strong growth potential in high-end applications, particularly in PEEK materials and high-temperature silicone, with significant domestic market opportunities [24][29] - **Overall Growth Strategy**: Focus on high-end product development and market expansion to enhance profitability and open new growth avenues [26][29]