Core Viewpoint - The company held a successful Q3 2025 earnings conference, engaging with investors and addressing various inquiries regarding its operations and future strategies [1]. Group 1: Company Performance - In Q3 2025, the company achieved a revenue of 4.456 billion yuan, representing an 18.23% year-on-year increase, while net profit rose by 32.96% to 131 million yuan [46]. - The company reported a basic earnings per share of 0.28 yuan for the first three quarters of 2025 [46]. Group 2: Product Development and Strategy - The company is constructing a 20,000-ton DVA production line, with an estimated completion time of around 12 months [10][32]. - The company has developed several advanced materials for robotics, including ultra-soft artificial muscle TPE and artificial skin SiTPV, which are expected to enhance the performance and cost-effectiveness of robots [4][8]. - The company is actively pursuing partnerships in the robotics sector, including potential collaborations with Xiaopeng Motors [12][33]. Group 3: Market Position and Challenges - Despite positive developments, the company's stock price has faced downward pressure, attributed to various market factors [5][15]. - The company is focused on enhancing its market presence and investor confidence through improved communication and transparency regarding product developments and market strategies [41][55]. Group 4: Research and Development - The company has established a robust R&D framework, including multiple national-level research platforms, to drive innovation in thermoplastic elastomers and modified plastics [7]. - The company is committed to sustainable development, actively engaging in the recycling and development of eco-friendly materials [17].

Report Summary 1. Report Industry Investment Rating No relevant information provided. 2. Core View of the Report The report focuses on the in - depth research of Dawn Co., Ltd., a high - tech enterprise in the plastics products industry. It details the company's business scope, production capacity, R & D achievements, financial performance, and future development strategies, as well as the progress of product testing, production line construction, and mergers and acquisitions [22][23]. 3. Summary by Related Catalogs 3.1 Research Basic Situation - Research object: Dawn Co., Ltd. [16] - Industry: Plastics products [16] - Reception time: October 30, 2025 [16] - Reception personnel: Deputy General Manager and Secretary of the Board Wang Youqing, Securities Affairs Specialist Chen Hao [16] 3.2 Detailed Research Institutions - Insurance company: Heng'an Standard Life [17] - Other: Shencai Fund [17] - Insurance asset management company: Xinhua Asset [17] - Asset management company: Qingdao Dehengui, Zhongtai Asset Management [17] - Fund management company: Huaxia Fund [17] - Securities company: Tianfeng Securities [17] - Investment company: Yude Investment [17] 3.3 Research Institution Proportion No relevant information provided. 3.4 Main Content Data - **Company Introduction**: Established in 2002, it is a high - tech enterprise focusing on R & D, production, and sales of functional polymer composite materials. It has a complete R & D system and rich R & D achievements, with products widely used in multiple fields. The company has certain production capacities in various products and is committed to R & D innovation and business expansion [22]. - **Financial Performance**: In the first three quarters of 2025, the company achieved an operating income of 4.456 billion yuan, a year - on - year increase of 18.23%; the net profit attributable to the parent was 131 million yuan, a year - on - year increase of 32.96%; the net profit attributable to the parent after deducting non - recurring gains and losses was 122 million yuan, a year - on - year increase of 46.07% [24][25]. - **Product Testing**: The DVA product started batch road - running tests in the first quarter of this year, and the test data met the expected results [25]. - **Production Capacity**: The DVA has a 5,000 - ton pilot line and is building a 20,000 - ton dedicated production line. The 20,000 - ton PCTG production line of copolyester materials is under construction, and the PETG has completed flexible transformation [25][27]. - **Mergers and Acquisitions**: The company plans to acquire Dawn Titanium Industry. The two companies belong to the chemical new materials field and have good synergy. The audit benchmark date has been updated to June 30, 2025 [25][26]. - **Product Application Fields**: HNBR products are widely used in aerospace, petroleum exploration, automobiles, and new energy fields. The company has developed products for the robot field, such as super - soft artificial muscle TPE, artificial skin SiTPV, and modified materials for robot manufacturing [27][28]. - **Recycling Business**: The company's subsidiary, Qingdao Haier Environmental Protection Materials Technology Co., Ltd., is engaged in the R & D, production, and sales of PCR plastic recycling materials [27].

Company Overview - Daon High Polymer Materials Co., Ltd. was established in 2002, focusing on the R&D, production, and sales of high-performance thermoplastic elastomers, modified plastics, color masterbatches, and polyester materials [2] - The company has an annual production capacity of 500,000 tons for modified plastics, 90,000 tons for thermoplastic elastomers, 30,000 tons for color masterbatches, and 60,000 tons for copolyester materials [2] - Daon has developed the first domestically-owned TPV production line in 2006, breaking international technology monopolies and winning the National Science and Technology Award [2] Financial Performance - In the first three quarters of 2025, the company achieved a revenue of CNY 4.456 billion, a year-on-year increase of 18.23% [3] - The net profit attributable to shareholders reached CNY 131 million, up 32.96% year-on-year [3] - The net profit after deducting non-recurring gains and losses was CNY 122 million, reflecting a growth of 46.07% [3] Product Development and Capacity - DVA has a current pilot production line of 5,000 tons and is constructing a dedicated production line of 20,000 tons to meet future demand [5] - The copolyester materials, including PCT, PETG, and PCTG, have filled domestic gaps, with a 20,000-ton PCTG production line under construction [9] - HNBR products are widely applicable in aerospace, oil exploration, automotive, and new energy sectors, achieving import substitution [8] Mergers and Acquisitions - The acquisition of Daon Titanium Industry is aimed at enhancing synergy in the chemical new materials sector, focusing on high-end lithium battery materials and photovoltaic new materials [6] - The board meeting held recently updated the audit benchmark date to June 30, 2025, indicating progress in the acquisition process [7] Collaboration and Innovation - Daon is actively involved in recycling materials through its subsidiary, Qingdao Haier New Materials R&D Co., Ltd., which produces modified plastics for Haier appliances [10] - The company is developing products for robotics, including ultra-soft artificial muscles and modified materials for robotic arms, aligning with industry advancements [10]

Investment Rating - The report maintains an "Outperform" rating for the company [1] Core Insights - The company's performance met expectations, with sales expansion and profit recovery in the basic chemical catalyst sector, highlighting its scale advantages [1] - The company reported a total revenue of 1.687 billion yuan in 2024, a year-on-year decrease of 5.5%, and a net profit attributable to shareholders of 93 million yuan, down 18% year-on-year [6] - In Q1 2025, the company achieved a revenue of 626 million yuan, a year-on-year increase of 105.3%, and a net profit of 22 million yuan, up 90.5% year-on-year [6] Financial Data and Profit Forecast - The company forecasts total revenue of 1.971 billion yuan for 2025, with a year-on-year growth rate of 16.8% [5] - The projected net profit for 2025 is 150 million yuan, reflecting a year-on-year increase of 62.2% [5] - The earnings per share (EPS) is expected to be 1.15 yuan for 2025, with a projected price-to-earnings (PE) ratio of 28 [5] - The gross profit margin is anticipated to improve to 13.6% in 2025, up from 11.2% in 2024 [5] Company Performance and Market Dynamics - The company experienced a significant increase in catalyst sales volume in Q1 2025, with an overall sales increase of 188.87% year-on-year [6] - The pharmaceutical and basic chemical sectors saw sales growth of 174.88% and 285.60% respectively, indicating a strong recovery in demand [6] - The company is leveraging its R&D capabilities to enhance product offerings and expand into new markets, with a notable increase in revenue contribution from the basic chemical sector [6] Future Outlook - The company aims to maintain its profit forecasts for 2025-2026, with net profits projected at 150 million yuan and 215 million yuan respectively [6] - The introduction of new projects and products is expected to support future growth, with a focus on expanding its core competencies in various sectors [6]

Investment Rating - The report maintains a "Buy" rating for the company [1][6] Core Views - The company has shown steady growth in modified plastics, with a significant increase in revenue and profit in 2024, driven by strategic partnerships and new capacity from its southwestern headquarters [4][5] - The thermoplastic elastomer segment is building a competitive moat, benefiting from accelerated domestic substitution and expansion into new applications, particularly in the electric vehicle sector [4][5] - New product development across various technology platforms is expected to open long-term growth opportunities, with successful testing and commercialization of new materials like DVA and HNBR [5][6] Financial Performance Summary - In 2024, the company achieved revenue of 5.301 billion yuan, a year-on-year increase of 16.65%, and a net profit of 141 million yuan, up 0.67% [4][8] - The fourth quarter of 2024 saw a revenue of 1.532 billion yuan, representing a 29.17% year-on-year growth [4] - The first quarter of 2025 reported a net profit of 44.284 million yuan, a 25.44% increase compared to the previous year [4] Product Segment Performance - Revenue from modified plastics in 2024 reached 3.806 billion yuan, growing by 19.18%, with sales volume increasing by 20.60% [4] - The thermoplastic elastomer segment generated 768 million yuan in revenue, up 21.34%, with sales volume rising by 27.00% [4] Future Earnings Forecast - Expected EPS for 2025-2027 is projected at 0.43, 0.57, and 0.73 yuan respectively, indicating a positive growth trajectory [6][8] - Revenue growth rates are forecasted at 11.69% for 2025, 13.12% for 2026, and 12.67% for 2027 [8]