NCIC(SZ:002246)2025-05-22 12:08Market Overview - The global market for energetic nitrocellulose has seen an increase in demand, with international manufacturers focusing on restoring or building new production capacities to meet current needs and product reserves [2][4]. - The international market demand for nitrocellulose remains stable, with the company aiming to optimize product structure and expand high-value customer bases [4][8]. Pricing Mechanisms - The pricing mechanism for specialized nitrocellulose products is based on equipment, while civilian nitrocellulose products follow a flexible "one customer, one policy" approach [3][8]. - The company is implementing precise pricing strategies in the high-end ink market to adapt to international market changes [4][8]. Production Capacity and Utilization - The production capacity utilization rate for nitrocellulose products was approximately 85% in 2024, with ongoing assessments of market demand to determine future capacity needs [4][5]. - The company has decided to shut down the production line in Xi'an due to safety, cost, and development space considerations [10]. Financial Performance - In Q1 2025, the company's revenue increased by 146.9 million yuan, a growth rate of 49.50%, primarily driven by higher sales of nitrocellulose and defense products [5]. - The company's R&D expenses for 2024 amounted to 115.55 million yuan, an increase of 32.45 million yuan year-on-year, focusing on key areas such as process upgrades and new product development [6]. Challenges and Future Outlook - The company's revenue for 2024 was 1.947 billion yuan, a decrease of 9.83% compared to the previous year, attributed to equipment orders and refunds in the defense and environmental sectors [7]. - The defense and environmental industry is expected to see growth in 2025 as domestic economic conditions improve, with increased demand for activated carbon and catalysts [6][9]. Strategic Initiatives - The company is committed to focusing on its core business while balancing internal and external development, with plans to upgrade existing production lines and prepare for future growth [12]. - The actual controller of the company is optimistic about the Chinese capital market and has established a leadership group for market value management to support high-quality development [12].