Core Viewpoint - The company has developed a "Quality Improvement and Efficiency Enhancement" action plan for 2025 to enhance shareholder satisfaction and maintain social responsibility, focusing on improving operational quality and governance [1][3]. Group 1: Operational Quality Improvement - The company specializes in fine chemicals, focusing on R&D, production, and sales of new materials and CDMO products, with a revenue of 674.81 million yuan in 2024 and a net profit loss of 49.53 million yuan [1]. - The company aims to enhance market development, deepen market demand exploration, and ensure sustainable growth by focusing on core business and improving cost efficiency [1][2]. - The new materials segment will capitalize on the opportunity presented by the sale of LCD panel factories by Japanese and Korean companies, expanding domestic LCD customer bases and developing OLED materials [2]. Group 2: New Production Capacity Development - The company plans to expand from small molecule to large molecule fields in the CDMO segment, including the development of peptide raw materials [2][3]. - Key projects include the 25,500 tons/year battery materials project and the new materials project, aimed at releasing orders and production capacity [2]. Group 3: Governance Improvement - Since its IPO in 2023, the company has been enhancing its governance structure in compliance with relevant laws and regulations, including the revision of its articles of association and the establishment of a public opinion response mechanism [3]. - The company will continue to optimize its governance framework and improve governance effectiveness in 2025 [3]. Group 4: Key Stakeholder Engagement - The company emphasizes the role of key stakeholders in driving high-quality development, ensuring communication with major shareholders and tracking their commitments [4][5]. - A restrictive stock incentive plan was implemented in June 2024 to attract and retain talent, aligning interests among shareholders, the company, and core teams [5]. Group 5: Information Disclosure and Investor Communication - The company is committed to high-quality information disclosure, ensuring timely and accurate reporting to protect investor rights [6]. - It plans to enhance the readability of reports and facilitate investor participation in governance through technology [6]. Group 6: Shareholder Returns and Investment Value - The company has decided not to distribute profits or issue bonus shares for 2024, focusing on balancing performance growth with shareholder returns [6]. - Future considerations for mid-term and multiple dividends will be explored to align with operational needs and sustainable development [6]. Group 7: Action Plan Evaluation - The company will actively implement and evaluate the 2025 action plan biannually, incorporating investor feedback to refine improvement measures [6].

Investment Rating - The investment rating for Shanghai Chemspec (688602 CH) is not explicitly stated in the provided documents [1]. Core Insights - In 2024, the net profit attributable to the parent company was -0.50 billion yuan, a year-on-year decrease of 143.95%, with operating income of 675 million yuan, down 31.11% year-on-year [4][5]. - The geopolitical impact has deepened, leading to increased external uncertainties in international trade and weak overall market performance [4]. - The company expects a more optimistic outlook for 2025, with new materials actively developing metallocene co-catalyst projects and polyimide monomer projects, supported by large orders in the CDMO segment [5][6]. Summary by Sections Financial Performance - In 2024, the company achieved operating income of 675 million yuan, a year-on-year decrease of 31.11%, and a net profit attributable to the parent company of -0.50 billion yuan, a year-on-year decrease of 143.95% [4][5]. - The fourth quarter of 2024 saw operating income of 151 million yuan, down 18.32% year-on-year, and a net profit of -0.32 billion yuan, a year-on-year decrease of 1881.03% [4][5]. - For 2025 Q1, the company reported a net profit of 31 million yuan, a year-on-year increase of 59.73%, with operating income of 243 million yuan, up 44.27% year-on-year [5]. Product Segmentation - In 2024, the operating income from new materials was 358 million yuan, a year-on-year decrease of 6.03%, with a gross profit margin of 2.70%, down 7.90 percentage points [6]. - The CDMO business generated 295 million yuan in operating income, a year-on-year decrease of 48.29%, with a gross profit margin of 23.17%, down 16.06 percentage points [6]. Future Developments - The ETO production line expansion by Kangrun is expected to be implemented in 2026, with a 50,000-ton project currently under construction [7].

Investment Rating - The investment rating for Shanghai Chemspec (688602 CH) is not explicitly stated in the provided documents [1][2]. Core Insights - In 2024, the net profit attributable to the parent company was -0.50 billion yuan, a year-on-year decrease of 143.95%, with operating income of 675 million yuan, down 31.11% year-on-year [4][5]. - The geopolitical impact has deepened, leading to increased external uncertainties in international trade and weak overall market performance [4][5]. - The company expects a more optimistic outlook for 2025, with new materials actively developing metallocene co-catalyst projects and polyimide monomer projects, supported by large orders in the CDMO segment [5][6]. Financial Performance Summary - In 2024, the new materials segment generated operating income of 358 million yuan, a year-on-year decrease of 6.03%, with a gross profit margin of 2.70%, down 7.90 percentage points [6]. - The CDMO business reported operating income of 295 million yuan, a year-on-year decrease of 48.29%, with a gross profit margin of 23.17%, down 16.06 percentage points [6]. - In Q1 2025, the company achieved operating income of 243 million yuan, a year-on-year increase of 44.27%, and a net profit of 31 million yuan, up 59.73% year-on-year [5]. Production and Expansion Plans - The ETO production line expansion is expected to be implemented in 2026, with a 50,000-ton project currently under construction, aiming for production of less than 30,000 tons [7].