According to the Star Daily on April 25 (Reporter Wu Xuguang), Yue'an New Materials will increase revenue but not profits in 2024.

On the evening of April 24, Yue'an New Materials released its Earnings Reports showing that in 2024, the company achieved revenue of 0.418 billion yuan, a year-on-year increase of 13.38%; net income was 70.2937 million yuan, a year-on-year decrease of 12.00%; and deducting non-recurring items, net income was 66.5282 million yuan, a year-on-year decrease of 8.95%.

Regarding revenue growth, Yue'an New Materials stated that the main reason is the use of metal injection molding technology in the Consumer Electronics, Autos, and other fields that replace part of the traditional forging, casting and other processes for manufacturing precision components, which has driven the revenue growth of the company's related powder material products; as well as an increase in product demand in the downstream applications of Electronic Components.

Yue'an New Materials is a company focused on the field of micro-nano metal powder New Materials, engaged in the R&D, production, and sales of carbonyl iron powder, atomized alloy powder, and related deep processing products.

Currently, the company has formed a product layout centered on two basic powders, carbonyl iron powder and atomized alloy powder, with three deep processing products: soft magnetic powder, MIM feedstock, and wave-absorbing materials.

From the perspective of the main Business by product, revenue from the soft magnetic powder series products was 0.153 billion yuan, a year-on-year increase of 19.11%, with a gross margin of 42.06%, a year-on-year decrease of 5.37 percentage points. The company stated that the main reason is the transformation of fundraising project into assets, but the production capacity is still in the ramp-up stage, leading to increased depreciation and cost of goods sold.

Revenue from carbonyl iron powder series products was 0.122 billion yuan, a year-on-year increase of 6.44%, with a gross margin of 44.76%, a year-on-year decrease of 4.91 percentage points. The decrease in gross margin was mainly due to the rise in raw material prices and increased production costs.

Regarding the total volume and development trend of the carbonyl iron powder industry, in April of this year, Yuean New Materials stated during an institutional investor survey that the annual demand for the global carbonyl iron powder industry is approximately 0.03 million tons, with a compound annual growth rate of about 20% over the past five years. With prices remaining relatively stable, it is expected that the incremental market growth will be about 10%-15% each year.

When discussing the challenges faced by carbonyl iron powder in market applications, Yuean New Materials stated that while carbonyl iron powder products have good performance, they are also faced with high costs that limit the scale of applications.

The company plans to leverage the Ningxia cost reduction project, using innovative processes and the geographic advantages of the Ningxia region to launch new high-cost-performance product grades, making it possible for carbonyl iron powder to partially replace electrolytic iron powder and high-end atomized iron powder, aiming to enter application fields that carbonyl iron powder has not yet penetrated.

Regarding the progress of fundraising projects, Yuean New Materials stated that the 'annual production of 0.1 million tons of metal soft magnetic micro-nano powder project' has accumulated an investment of 0.596 billion yuan, completing 30% of the planned progress. This project aims to enhance the production capacity of carbonyl iron powder and atomized alloy powder, and is expected to significantly improve the company's cost structure and enhance market competitiveness. Currently, the carbonyl iron powder demonstration line has entered the trial production stage, with a production capacity utilization rate approximately 10 percentage points higher than the same period last year.

In 2024, Yuean New Materials' R&D investment was 23.4171 million yuan, a year-on-year increase of 15.79%, accounting for 5.61% of revenue, mainly due to the increase in research material expenses and the number of R&D personnel.

During the reporting period, the top ten circulating shareholders of Yuean New Materials held a total of 70.9144 million shares, accounting for 59.18% of circulating shares, a decrease of 0.1613 million shares compared to the previous period.

Specifically, Yuean New Materials announced that as of December 31, 2024, the top ten circulating shareholders have changed compared to the previous reporting period. Among them, Ruizhong Life Insurance Co., Ltd. - self-owned capital entered the list, Wu Wei exited, Huang Xingfeng increased their shareholding, and Ruihe Equity reduced their shareholding.

Among the newly entered circulating shareholders, Ruizhong Life Insurance Co., Ltd. - self-owned capital held 2.3367 million shares in this period, accounting for 1.95% of circulating shares. Among the exited top ten circulating shareholders, Wu Wei held 2.2483 million shares in the previous period, accounting for 1.88% of circulating shares; among the shareholders who increased their holdings, Huang Xingfeng increased their self-held shares by 8.27% to 4.1958 million shares; among the shareholders who reduced their holdings, Ruihe Equity reduced their self-held shares by 15.26% to 3.1645 million shares.

On the evening of April 24, YUEAN New Materials published an announcement that the company, based on a total share capital of 119.8333 million shares, will distribute a cash dividend of 2.50 yuan per 10 shares to all shareholders, totaling 29.9583 million yuan in cash dividends, and will distribute 2.00 bonus shares for every 10 shares from the capital reserve, without issuing any bonus shares.