Core Viewpoint - The company has experienced significant revenue growth in 2024, but net profit has declined due to intense price competition in the spice industry [2] Group 1: Financial Performance - In 2024, the company achieved a revenue of 797 million yuan, representing a year-on-year increase of 26.42%, while net profit attributable to shareholders was 56 million yuan, down 30.51% [2] - In Q1 2024, the company reported a record revenue of 262 million yuan and a net profit of approximately 82.17 million yuan, with a non-recurring net profit of 38.20 million yuan, marking a year-on-year growth of 120.8% [2] Group 2: Production Capacity and Expansion - The first phase of the "Yaxiang Biotechnology (Thailand) Co., Ltd. Production Base Project" commenced production in November 2024, with the Thai factory achieving normal full-load production [2] - The first phase capacity includes 1,000 tons of vanillin, 200 tons of oak moss, and other products, with a second phase expected to be completed around August 2025 [3] - A new synthetic vanillin production line is planned in Thailand, which will have an annual capacity of 4,000 tons [3] Group 3: Strategic Investments - The company plans to acquire 10% equity in Centrome Inc. for 30 million USD to expand sales channels and market share in the U.S. [3] - This investment is expected to enhance the company's international influence and complement its U.S. subsidiary's operations [3] Group 4: Market Strategy - The establishment of the Thai base allows the company to diversify its product structure and increase production capacity while avoiding tariff impacts [4] - The company is actively exploring new product layouts to meet diverse market demands, including the introduction of ambroxan, a fragrance ingredient commonly used in perfumes [4]

Group 1: Financial Performance - The company's net profit for 2024 is expected to decline due to four main factors: increased fixed asset depreciation, a 37% year-on-year increase in sales team size leading to higher sales expenses, increased R&D investment, and a structural decline in gross margin of core products due to intensified market competition [2][3] - In Q1 2025, the company reported a net profit growth of approximately 360%, attributed to investment income of about 40 million yuan and the efficient operation of the Thai production base [3] Group 2: Operational Insights - The Thai factory achieved approximately 90 million yuan in revenue and 19 million yuan in net profit in Q1 2025, primarily producing vanillin and cooling agents [3] - Long-term contracts account for about 80% of the company's total revenue, with pricing strategies adjusted based on market supply and demand dynamics [3][4] Group 3: Expansion and Product Development - The first phase of the Thai base is fully operational, with the second phase expected to be completed around August 2025, and the third phase in preliminary planning [3] - The company is actively exploring new product developments, such as ambroxan, to meet diverse market and consumer demands [4] - Strategic investment in ABT shares aims to strengthen sales channels and enhance market competitiveness [4]