COSMOS(SZ:300856)2023-06-01 12:14Business Strategy and Future Plans - The company's future strategy focuses on strengthening and expanding its core businesses of synthetic fragrances and cosmetic active ingredients, aiming to enhance its competitive advantages and international brand influence [3] - Sunscreen products will remain the mainstay of the business, with continued expansion in fragrance, personal care, and other functional personal care product ingredients [3] - The company plans to become a comprehensive supplier of daily chemical raw materials, leveraging its efficient R&D and industrialization capabilities [3] - In the short to medium term, the company will not engage in terminal cosmetics business but will continue to focus on personal care product ingredients [3] - The company is optimistic about the domestic market and has established partnerships with leading domestic brands, planning to continue advancing related businesses [4] Product Development and Market Performance - The company's PA product, which started production in the first half of last year, is expected to see a significant increase in sales this year [4] - Titanium dioxide product, which began trial production at the end of last year, is expected to gradually increase in volume in the second half of this year [4] - Amino acid surfactants, PO, and new P-S production lines are under construction, with a focus on market promotion and customer certification this year [4] - The company's sunscreen products have high gross and net profit margins, with significant barriers to entry for potential competitors [2] - The company has a competitive advantage in product structure, innovation, R&D capabilities, production and quality management systems, and global responsiveness [2] Cost and Pricing - The company's main raw materials include bulk and fine chemicals, with prices influenced by upstream crude oil and other bulk commodity price fluctuations [3] - In cases of significant raw material price increases, the company actively negotiates price adjustments with downstream customers, though there may be delays due to pricing cycles and market competition [3] - Raw material costs have slightly decreased compared to the third quarter of last year, but product prices are not fully synchronized with crude oil prices [5] - The company expects overall price trends to remain stable this year, given strong market demand and customer feedback [5] Sales and Distribution - For large and medium-sized terminal customers, the company primarily uses its own sales system for direct sales [5] - For geographically concentrated but smaller customers, the company relies on distributors to improve efficiency and reduce costs [5] - The two sales models complement each other and do not conflict [5] Human Resources and Organizational Development - The company places a high priority on human resources, continuously improving its talent pool and conducting multi-level talent reserves aligned with its business direction and future development strategy [4] - The company has implemented its first post-listing equity incentive plan and plans to conduct equity incentives every 2-3 years to motivate employees and focus on long-term development [4] - The company's core values emphasize innovation and continuous improvement, aiming to integrate macro concepts into daily work details [4] Industry Barriers and Competitive Landscape - The cosmetic active ingredient market is highly concentrated, with a stable supplier system and high standards for supplier certification, making it difficult for new entrants to gain significant customer resources in the short term [2] - The company has established a strong position in the international cosmetics supply chain through technological innovation and stable quality, continuously increasing its market share [3]