Core Viewpoint - The report presents the financial performance and operational highlights of Miracll Chemical Co., Ltd. for the first half of 2025, emphasizing growth in revenue and net profit while outlining the company's strategic focus on polyurethane new materials and functional chemical products. Company Overview and Financial Indicators - Miracll Chemical Co., Ltd. is a leading manufacturer of polyurethane new materials (TPU, PUR, PUD, PBS) and functional chemical raw materials (special isocyanates, special amines) with applications across various industries including consumer electronics, automotive, and green energy [4][5]. - The company reported a slight increase in revenue of 0.02% year-on-year, totaling approximately 800.7 million yuan, while net profit attributable to shareholders rose by 25.25% to approximately 39.1 million yuan [3][4]. Business Operations - The company operates two main production bases located in Yantai, Shandong, and Hebi, Henan, focusing on the production of polyurethane new materials and functional chemical raw materials respectively [4][5]. - The TPU product line accounts for over 90% of sales, with ongoing development in other products like PUR, PUD, and PBS, which are expected to grow rapidly [4][5]. Product Characteristics and Applications - TPU is highlighted for its excellent mechanical properties, temperature resistance, and environmental durability, making it suitable for a wide range of applications from consumer electronics to automotive components [4][5]. - The company is the only publicly listed entity in China primarily focused on TPU, establishing a competitive edge through quality and innovation [4][5]. Special Isocyanates and Amines - The company specializes in producing special isocyanates such as HDI, CHDI, and PPDI, which are characterized by their superior mechanical properties and stability, suitable for high-performance applications [6][7]. - The production of special amines (PNA, PPDA, CHDA) is also emphasized, with the company holding a leading position in global production capacity for these materials [8][9]. Market Position and Competitive Advantage - The company has established a strong market presence and competitive advantage through continuous technological innovation and a focus on high-quality, differentiated products [4][5][6]. - The strategic focus on upstream supply chain integration ensures a stable supply of high-quality raw materials, enhancing the company's resilience and competitive positioning in the market [12].

Group 1: Project Progress and Development - The first phase of the polyurethane industrial park has successfully established a complete production process, with six products (HDI, PPDI, CHDI, PNA, PPDA, and CHDA) achieving qualified output and performance indicators meeting targets [3] - The annual production capacity of the new projects includes 10,000 tons of expandable thermoplastic polyurethane elastomer and 30,000 tons of water-based polyurethane, both currently in the equipment installation phase [10] - The company aims to optimize process indicators and enhance operational quality to achieve production targets [3] Group 2: Sales and Market Strategy - The sales team is actively engaging with target customers for trial samples, with positive market feedback for the new products [5] - The company’s self-developed foamed TPU is positioned for the footwear sector, characterized by lightweight and high rebound properties, indicating strong market potential [14] - The company is focusing on entering the supplier system for special isocyanates and plans to utilize some of its polyurethane products as raw materials [4] Group 3: Financial Performance and Projections - In 2024, the company expects a revenue of 1.658 billion yuan, a year-on-year increase of 12.42%, despite a projected decline in net profit by 11.70% to 77.5885 million yuan [11] - For Q1 2025, the company reported a revenue of 388 million yuan, remaining stable compared to the previous year, with a net profit increase of 47.12% to 18.1368 million yuan [11] Group 4: Talent Management and Corporate Culture - The company emphasizes talent as its primary asset, with a compensation structure linked to job performance and company goals, ensuring competitiveness in the market [8] - The company promotes a culture of planning, training, and empowering employees, aiming to enhance their capabilities and provide challenging work opportunities [8] Group 5: Future Plans and Innovations - The company plans to enhance R&D capabilities, focusing on functional chemical raw materials and new polyurethane materials to drive innovation and market expansion [9] - The second phase of the Henan project will include a hydrochloric acid recycling project, supporting the production of HDI [9]