Core Insights - The company reported a decline in revenue and profit for the first three quarters of 2025, with revenue at 348 million yuan, down 9.86% year-on-year, and net profit attributable to shareholders at 8.77 million yuan, down 76.65% year-on-year [1][2] Financial Performance - In Q3 2025, the company achieved revenue of 115 million yuan, a decrease of 8.78% year-on-year and 9.52% quarter-on-quarter, with a net profit of -4.77 million yuan, reflecting a 159% year-on-year decline and a 226% quarter-on-quarter decline [1][2] - The gross profit margin decreased by 2.4 percentage points to 34.7% due to price reductions in some products [2] - Total expenses slightly decreased by 0.9% year-on-year, but the selling, general, and administrative expense ratio increased by 2.4 percentage points to 26.9% due to reduced revenue [2] Business Developments - The company is expanding its production capacity at the Longnan base, with several projects in progress, including a 50,000-ton annual production capacity for electronic photosensitive materials [3] - New products such as the HIPRO Graphene heavy-duty anti-corrosion coating are expected to achieve large-scale applications in the offshore and high-end equipment manufacturing sectors by mid-2026 [3] Profit Forecast and Valuation - Due to lower-than-expected sales of photovoltaic BC battery insulation glue, the company's profit forecasts for 2025-2027 have been revised downwards, with expected net profits of 2.6 million yuan, 4.8 million yuan, and 8.5 million yuan for the respective years [3] Future Outlook - The company is anticipated to see new growth points from the release of production capacity at the Longnan base and breakthroughs in new products [4]

Investment Rating - The report maintains an "Accumulate" rating for the company [4][6]. Core Views - The company's revenue and profit have declined due to intensified competition in the photovoltaic adhesive market, with a significant drop in sales of BC battery insulation adhesives [2][4]. - The company is focusing on ramping up production capacity at its Longnan base and promoting new products, which are expected to provide new growth opportunities [3][4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved revenue of 348 million yuan, a year-on-year decrease of 9.86%, and a net profit attributable to shareholders of 8.77 million yuan, down 76.65% year-on-year [1]. - In Q3 2025, the company reported a single-quarter revenue of 115 million yuan, a year-on-year decrease of 8.78% and a quarter-on-quarter decrease of 9.52%, with a net profit of -4.77 million yuan, reflecting a year-on-year decline of 159% [1]. Cost and Expenses - The gross margin for the first three quarters of 2025 decreased by 2.4 percentage points to 34.7% due to price reductions on some products [2]. - Total expenses slightly decreased by 0.9% year-on-year, but the sales expense ratio increased by 2.4 percentage points to 26.9% due to reduced revenue [2]. Production Capacity and New Products - The company is developing a project in Longnan, Jiangxi, with an annual production capacity of 50,000 tons of electronic photosensitive materials, which includes several new products expected to enter trial production in the second half of 2025 [3]. - The high-performance industrial functional coating brand HIPRO Graphene has passed the NORSOK M-501 standard test, with plans for large-scale applications in the offshore and high-end equipment manufacturing sectors [3]. Profit Forecast and Valuation - The profit forecast for 2025-2027 has been revised downwards, with expected net profits of 2.6 million yuan, 4.8 million yuan, and 8.5 million yuan respectively [4]. - The report anticipates that the release of production capacity at the Longnan base and breakthroughs in new products will lead to new performance growth points [4].