Core Viewpoint - LiuZhou Chemical Co., Ltd. has received an inquiry letter from the Shanghai Stock Exchange regarding its 2024 annual report, prompting the company to provide detailed responses about its operational status, profitability, and future strategies to enhance sustainable operations [1][2]. Group 1: Operational Status - The company primarily engages in the production and sale of hydrogen peroxide, with reported revenues of 140 million, 142 million, and 165 million yuan over the past three years [2]. - The company has a designed annual production capacity of 160,000 tons for 27.5% hydrogen peroxide, but after recent changes, it can only rely on a single production line with a capacity of 100,000 tons per year [2]. - The production output for 27.5% hydrogen peroxide from 2022 to 2024 was 122,700 tons, 125,800 tons, and 169,200 tons, reflecting year-on-year increases of 20.3%, 2.57%, and 34.5% respectively [2]. Group 2: Profitability Analysis - The revenue from 27.5% hydrogen peroxide was 137 million yuan with a gross margin of 22.42%, an increase of 3.45 percentage points year-on-year [5]. - The revenue from 50% hydrogen peroxide was 25 million yuan, but its gross margin decreased to 15.97%, down 6.46 percentage points year-on-year [5]. - The average selling price of 27.5% hydrogen peroxide in 2024 was 935.07 yuan per ton, a decrease of 3.96% compared to the previous year, while the unit production cost decreased by 8.05% to 725.39 yuan per ton [8]. Group 3: Future Strategies - The company plans to enhance its operational capabilities by maximizing the use of existing facilities, increasing technical upgrades, and diversifying its product offerings to improve profitability [4]. - The company aims to explore markets for electronic-grade and food-grade hydrogen peroxide products to further diversify its revenue streams [4]. - LiuZhou Chemical is also looking to adapt to new regulations and policies to facilitate its transformation and upgrade, while seeking suitable assets and strategic investors for long-term development [4].