Core Viewpoint - The company reported a decline in revenue for the first half of 2025, but achieved growth in net profit due to lower raw material costs and the ramp-up of new products [1][2]. Financial Performance - In 1H25, the company achieved total revenue of 2.911 billion yuan, a year-on-year decrease of 12.13% - The net profit attributable to shareholders was 161 million yuan, an increase of 14.15% year-on-year - The net profit excluding non-recurring items was 160 million yuan, up 43.21% year-on-year - In Q2 2025, total revenue was 1.372 billion yuan, down 24.85% year-on-year - The net profit attributable to shareholders was 89 million yuan, a slight decrease of 0.07% year-on-year - The net profit excluding non-recurring items was 90 million yuan, down 15.45% year-on-year [1]. Product and Market Development - The company continues to optimize its product structure and enhance profitability by developing new product grades - The EVA products are fully sold, maintaining market share in photovoltaic, high-end foaming, and cable applications while developing new grades - The EOD business has shown stable growth, with high-margin products increasing in proportion, and specialty surfactant sales growing approximately 27.56% year-on-year - Export volume increased by 55.51% year-on-year, and lithium carbonate solvent products are steadily supplied to leading clients in the electrolyte industry [2]. Project Progress and Future Outlook - Ongoing projects are progressing steadily, enhancing the company's long-term competitiveness - The major project in Shandong, integrating new energy materials and biodegradable materials, is over 80% complete and is expected to be operational by the end of 2025 - The VC project has completed the main equipment construction and is scheduled for completion in Q3 2025 - The POE project in Jiangsu is in the equipment installation phase and is expected to be completed by the end of 2025 - The XDI project is actively preparing for engineering design and construction, with a planned completion in 2026 - The commissioning of these facilities is expected to positively impact the company's core competitiveness and profitability [3]. Investment Outlook - The company aims to build an excellent platform in new materials and create a leading "specialized, refined, unique, and innovative" industrial cluster in several fields - With the gradual commissioning of new capacities, the company's performance is expected to continue growing - Projected net profits for 2025-2027 are 312 million, 403 million, and 523 million yuan, with year-on-year growth rates of 33.08%, 29.14%, and 29.72% respectively, corresponding to PE ratios of 79X, 61X, and 47X [3].

Core Viewpoint - The company reported a decline in revenue but an increase in net profit, indicating effective cost management and operational efficiency improvements. Financial Performance - In the first half of 2025, the company achieved operating revenue of 2.911 billion yuan, a year-on-year decrease of 12.13% [1] - The net profit attributable to shareholders was 161 million yuan, a year-on-year increase of 14.15% [1] - The net profit after deducting non-recurring gains and losses was 160 million yuan, a year-on-year increase of 43.21% [1] Operational Efficiency - The company focused on innovation-driven development and operational management to enhance efficiency [1] - The reduction in raw material prices contributed to profit growth, with new products like EC, UHMWPE, electronic special gases, and PLA starting to generate profits [1] - The company completed over 10 key technical projects aimed at cost reduction and efficiency improvement [1] Product Development and Market Position - The company maintained its market advantage in advanced polymer materials and specialty fine materials, optimizing product structure based on market demand [2] - EVA products achieved full production and sales, while special surfactants saw a sales increase of approximately 27.56% year-on-year [2] - The company expanded its overseas business, with export volume increasing by 55.51% year-on-year [2] Project Management and Future Prospects - Ongoing projects are progressing as planned, with significant projects like the "New Energy Materials and Biodegradable Materials Integration Project" over 80% complete [3] - The company plans to complete several major projects by the end of the year, which will enhance core competitiveness and profitability [3] - New battery key functional materials and various new products have been developed, with 22 new patents authorized [3]