SHIHUA(SH:688093)2024-05-27 07:34Group 1: Company Overview and Product Segmentation - The company categorizes its products into three main types: electronic composite functional materials, optoelectronic display module materials, and precision processing application materials. Electronic composite functional materials account for 80% of the company's revenue, primarily used in smart terminal products [1] - The company has established a significant partnership with Client A, with an estimated demand for functional materials reaching at least 10 billion RMB, indicating substantial market potential [1] Group 2: Financial Performance and Growth Drivers - The company's growth in Q1 2024 was driven by increases in both electronic composite functional materials and optoelectronic materials, with new customer acquisitions contributing to this growth [2] - The global market for optoelectronic products is substantial, potentially reaching hundreds of billions of RMB, with single projects valued at tens of billions [2] Group 3: Project Developments and Future Plans - The new high-efficiency sealing adhesive project commenced construction at the end of 2022 and is expected to begin trial production this year, extending upstream business and product development [1] - The company has initiated a share buyback program in January 2024, which may be used for employee stock ownership plans or equity incentives in the future [2] Group 4: Profitability and Market Position - The company is focused on technological innovation and collaboration with leading clients to achieve high-quality development, with an emphasis on optimizing its business structure [2] - The overall gross margin may experience fluctuations as the business structure continues to evolve, with a focus on composite functional materials, optoelectronic materials, and functional adhesives [2]