Core Viewpoint - The company, Haiyou New Materials, has decided to terminate its "Annual Production of 200 Million Square Meters of Photovoltaic Encapsulation Film Project (Phase I)" and instead initiate a new project for "Annual Production of 2 Million Square Meters of PDCLC Dimming Film Products (Phase I)" with an investment scale of 25 million yuan, utilizing remaining fundraising of approximately 22.6 million yuan for the new project [1][2]. Group 1 - The global photovoltaic power generation market has a long-term positive outlook, but short-term demand growth is slowing due to industry cyclical fluctuations [2][3]. - The China Photovoltaic Industry Association predicts that the global photovoltaic installed capacity growth will slow down by 10% year-on-year in 2025, with a conservative estimate of no growth [3]. - The company faces supply-demand imbalance in photovoltaic encapsulation film capacity in the short term, as the demand for capacity expansion decreases [3]. Group 2 - The company is transitioning to meet the higher performance requirements for PID resistance in N-type batteries, driven by the exploration of TOPCON and heterojunction component technologies [3]. - POE films or co-extruded POE films are expected to replace EVA due to their superior PID resistance performance, and the company is advancing the introduction and certification of these films to support technological development [3]. Group 3 - The company had previously signed an investment agreement in October 2022 to build a new material project for photovoltaic encapsulation film with a total investment of 2.5 billion yuan, including fixed asset investment of approximately 835 million yuan and working capital investment of about 1.665 billion yuan [4]. - The project was planned in two phases, with the first phase aimed at producing 200 million square meters of photovoltaic encapsulation film [5].

Core Viewpoint - The company has decided to terminate part of its fundraising projects and redirect the remaining funds to new projects, specifically focusing on the development of PDCLC dimming film products for the automotive sector, in response to changing market conditions and strategic priorities [4][5][17]. Fundraising Overview - The company was approved to issue 6.94 million convertible bonds at a face value of 100 RMB each, raising a total of 694 million RMB, with a net amount of 691.3972 million RMB after deducting issuance costs [1][2]. - The funds were initially intended for various projects, including a photovoltaic encapsulation film project with a total investment of 949.07137 million RMB [3]. Fund Usage Status - As of July 11, 2025, the company has invested 99.9127 million RMB into the photovoltaic encapsulation film project, with a remaining balance of 226.0278 million RMB [3][4]. Reasons for Project Termination - The decision to terminate the photovoltaic encapsulation film project is attributed to a slowdown in industry demand and the need for time to absorb previously expanded capacities, as well as increased competition in the photovoltaic sector [4][5]. - The company aims to concentrate resources on the PDCLC dimming film business, which has shown significant potential for growth and profitability [5][6]. New Project Details - The company plans to invest the remaining 226.0278 million RMB into a new project for the production of 2 million square meters of PDCLC dimming film, with a total investment of 250 million RMB [6][7]. - The PDCLC dimming film is positioned to meet the growing demand in the automotive sector, particularly for smart roof systems in electric vehicles [7][8]. Market Trends and Strategic Focus - The automotive industry is experiencing rapid growth, particularly in the new energy vehicle segment, with a projected sales increase of 35.5% in 2024 [7][8]. - The company is focusing on technological innovation and product development to enhance its competitive edge in the automotive materials market [11][12]. Implementation Feasibility - The company has established a strong foundation in polymer materials and has accumulated significant intellectual property, with 170 patents, including 33 invention patents [12][14]. - The strategic shift towards PDCLC technology is expected to enhance the company's market presence and profitability, addressing the declining margins in its photovoltaic film business [9][10].

Core Viewpoint - Shanghai Haiyouwei New Materials Co., Ltd. is issuing convertible bonds to raise funds for new projects, while terminating a previous project due to market conditions and shifting focus to more promising areas [3][9][10]. Group 1: Bond Issuance Details - The company issued 6.94 billion RMB worth of convertible bonds, with a total of 6.94 million bonds at a face value of 100 RMB each [4][5]. - The bonds have a maturity of six years, from June 23, 2022, to June 22, 2028, with an annual interest rate of 0.30% for the first year [5][6]. - The initial conversion price is set at 217.42 RMB per share, subject to adjustments based on various corporate actions [6][8]. Group 2: Project Changes - The company has decided to terminate the "Annual Production of 200 Million Square Meters of Photovoltaic Encapsulation Film Project (Phase I)" due to a slowdown in industry demand and overcapacity issues [9][10]. - Remaining funds of 226.03 million RMB will be redirected to a new project for "Annual Production of 2 Million Square Meters of PDCLC Dimmer Film Products (Phase I)" [9][11]. - The new project aims to enhance production capabilities in the automotive sector, addressing increasing order demands and improving the company's competitive edge [10][12]. Group 3: Financial Management - The company plans to cover the funding gap for the new project through its own or self-raised funds, ensuring efficient use of raised capital [9][12]. - The decision to reallocate funds is aligned with the company's strategic planning and is expected to enhance long-term development without adversely affecting normal operations [13].

Group 1 - The company will hold the first bondholders meeting for "Haiyou Convertible Bonds" on August 1, 2025 [1][2] - The bondholders meeting will discuss the termination of a fundraising project and the allocation of remaining funds of 226.03 million RMB to a new project for the production of 2 million square meters of PDLC smart film [2][7] - The bondholders meeting will be conducted in a hybrid format, allowing both in-person and remote participation [2][5] Group 2 - The bond registration date is set for July 25, 2025, and the registration for attending the meeting will be open from July 30 to July 31, 2025 [2][3] - Each bondholder will have one voting right per bond held, and decisions will require approval from over half of the total bond value represented at the meeting [6][7] - The company will announce the resolutions made during the meeting within two trading days [6][7]

Investment Rating - The investment rating for the company is "Buy" and is maintained [6]. Core Views - The company reported a revenue of 2.591 billion yuan for 2024, a year-on-year decrease of 47%, with a net profit attributable to the parent company of -558 million yuan, consistent with preliminary performance reports [2][4]. - In Q4 2024, the company achieved a revenue of 539 million yuan, down 42% year-on-year and 5% quarter-on-quarter, with a net profit of -310 million yuan [2][4]. - For Q1 2025, the company reported a revenue of 316 million yuan, a 64% year-on-year decline and a 41% quarter-on-quarter decline, with a net profit of -57 million yuan [2][4]. - The company is focusing on the automotive business, with positive developments in new products such as PDCLC dimming film, which has been integrated into the Zhiji L6 model, marking a significant technological advancement [10]. - The company is also expanding its overseas market presence, particularly in collaboration with American and Turkish companies, while maintaining a prudent operational strategy in its photovoltaic film business [10]. Financial Summary - The total revenue for 2024 was 2.591 billion yuan, with an operating cost of 2.603 billion yuan, resulting in a gross profit of -11 million yuan [17]. - The company expects to achieve a net operating cash flow of 360 million yuan in 2024, with projections for 2025 indicating a slight increase [17]. - The asset-liability ratio is projected to improve, indicating a reduction in financial risk, with a forecasted asset-liability ratio of 50.2% for 2024 [17].

Investment Rating - The report maintains an "Accumulate" rating for the company [1][5] Core Views - The company reported a significant loss in 2024, with a net profit of -558 million RMB, which is an increase in loss compared to the previous year [8] - In Q1 2025, the company showed a reduction in losses compared to the previous quarter, with a net profit of -57.44 million RMB [10] - The company is focusing on high-margin non-photovoltaic film business, which has shown substantial growth [8] Financial Summary - The company's revenue for 2024 was 2,591 million RMB, a decrease of 46.81% year-on-year [9] - The projected earnings per share (EPS) for 2025-2027 are updated to -1.85, 0.43, and 2.96 RMB respectively [5] - The company’s EBITDA for 2024 is projected at -288 million RMB, with a forecasted recovery to 195 million RMB in 2026 [11] Business Performance - The company’s photovoltaic film sales volume decreased by 24.65% in 2024, leading to a negative gross margin [8] - The non-photovoltaic film business achieved a revenue of 20.66 million RMB in 2024, with a gross margin of 28.22% [8] - The company has successfully launched PDCLC dimming film products for automotive applications, positioning itself as a potential industry leader [8]