The company is a technology-driven enterprise deeply involved in the field of fine chemicals, mainly engaged in R&D, production and sales of fine chemicals. 1) The company's products are mainly new materials and pharmaceuticals and pesticide chemicals. The new material products mainly cover the fields of display materials, new energy battery materials, electronic chemicals, silicone materials, etc. The downstream sales of customized pharmaceuticals and pesticide chemicals are part of the CDMO business. 2) The company has developed a series of core technologies around fluorination technology and carbon-carbon bond coupling technology, and is gradually building a highly competitive technology platform to actively expand product application areas and cutting-edge technology in the industry. 3) The company and its subsidiary Shanghai Wansu were all rated as “Specialized, Special and New” enterprises in Shanghai in 2021.

In terms of display materials, the company industrialized coupling reactions using water as a solvent in cutting-edge scientific research. 1) In 2021, the company's sales volume of display materials was 128.73 tons. According to the global TFT hybrid LCD market size of 845 tons in 2021, and the loss of 5% in liquid crystal monomers made into hybrid liquid crystals, the company's LCD monomer market share was about 15.23%. 2) The company's liquid crystal monomer products are mainly fluorine-containing single crystals. Fluorine monocrystals are the main functional single crystals in high-performance hybrid liquid crystals, accounting for about 20%-30% of the LCD monomer market. The company's fluorine-containing monocrystals account for about 50% of the global market share. 3) As of December 31, 2022, the company has more than 10 patents related to display materials and many core technologies for display materials, such as preparation methods for monomer liquid crystal compounds containing difluoromethoxyl ether bridges (CF2O), and isomerization control technology.

In terms of new energy battery materials and silicones, the company broke through the technical difficulties of LiFSi production. 1) The company is currently the largest professional LiFSI manufacturer. In 2021, the sales volume of LiFSI was 705 tons, and the market share reached 10.39%. 2) The company's silicone pressure-sensitive adhesives were the first to break through foreign monopolies. The product indicators were comparable to the international leader Dow Chemical, and import substitution was gradually achieved. Currently, the market size of this segment is about 1 billion yuan. Through continuous R&D, production and market development in recent years, the company already accounts for about 10% of the market share. 3) Global demand for LiFSi in 2021 was about 6,788 tons, and the company sold 705 tons in 2021, with a market share of 10.39%.

In terms of pharmaceuticals and pesticides, the company continuously develops and optimizes process control points to improve product quality and yield. 1) The company's cooperation with API manufacturers mainly focuses on mainstream drug use in the new market. The average compound annual growth rate of pharmaceutical and pesticide chemical revenue in 2020-2022 reached 118.44%, which is significantly higher than the overall growth level of the pharmaceutical or pesticide industry. 2) According to estimates from the Sino-Agricultural Joint Annual Report, the market size of imidacloprid in 2021 was about 7,000-10,000 tons, and the company's output in 2021 was about 400 tons, accounting for about 4%-6%. 3) At present, the company has established cooperative relationships with world-renowned pharmaceutical companies such as MSD, Eli Lilly, and Bayer.

The company's H1 revenue in 2024 was 0.341 billion yuan, a year-on-year decrease of 35.08%; net profit to mother was 0.009 billion yuan, a year-on-year decrease of 88.12%. 1) The company's CDMO business revenue was 0.167 billion yuan, accounting for 48.90% of revenue. Affected by the customer's downstream drug sales plans and production and delivery plans, the customer order plan changes greatly from year to year. 2) The company's H1 new materials business revenue in 2024 was 0.161 billion yuan, accounting for 47.24% of revenue; revenue from other businesses was 0.013 billion yuan, accounting for 3.86% of revenue. 3) Since 2024, the domestic electrolyte industry is still in a volatile phase at the bottom of the boom. Beginning in the second quarter, LifSi's monthly shipments increased dramatically to 100 tons, and the total number of shipments in the first half of the year was higher than the same period.

Risk warning: risk of changes in the macroeconomic environment; risk of product price fluctuations; risk of downstream market demand falling short of expectations.