Record of Investor Relations Activities on February 5, 2025
Time：2025-02-05 14:00
| Securities Code: 002886 | Securities Abbreviation: Wote Shares |
Record of Investor Relations Activities of Shenzhen Water New Materials Co., Ltd.
Number: January 2025
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Investor Relations Activity Category
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□ Targeted Research □ Analyst Conference □ Media Interview □ Earnings Conference □ Press Conference ☑ Roadshow Event □ On-site visit □ Other |
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Name of Participating Organization |
Guojin Securities, CITIC Securities, CICC, Changjiang Securities, SW China Securities, Minsheng Securities, Tianfeng Securities, Guotai Junan Securities, Kaiyuan Securities, Guolian Securities, Northeast Securities, Western Securities, Debang Securities, Huafu Securities, Huaxi Securities, China Galaxy Securities, China Post Securities, Great Wall Securities, Donghai Securities, Bosera Fund, China Asset Management, GF Fund, ICBC Credit Suisse Asset Management, Boda Fund, Ruida Fund, Hainan Hongsheng Fund, Hainan Shengxi Fund, Shanghai Yongle Fund, Jinxin Fund, Hua’an Fund, Founder-Fubon Fund, Neuberger Berman Fund, Shenzhen Yinuo Fund, CETC Hikvision Fund, Taiping Pension Insurance, China Asset Wealth Investment, SPD Bank Wealth Management, Huabao Trust, Wentian Private Equity, Guangdong Zhengyuan Private Equity, Chengdu Yuzhu Private Equity, Boguan Private Equity, Beijing Fengrui Private Equity, Yuanxin Private Equity, Shanghai Wudi Private Equity, Beijing Fengyan Investment, Shanghai Daoren Asset, Shanghai Tuling Asset, Shanghai Xihong Asset, Hangzhou Honghua Investment, Shenzhen Mingji Investment, Shanghai Panhou Investment, Liren Investment, Beijing Fuzhi Investment, Beijing Fengpei Investment, Hangzhou Qianlu Investment, Shanghai Boxiong Asset, Cactus Asset. |
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Time |
Wednesday, February 5, 2025, 9:00–10:00 |
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Location |
Online conference call |
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Name of the接待 personnel for the listed company |
Secretary of the Board and Deputy General Manager: Zhang Liang |
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Overview of the Main Activities in Investor Relations
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Questions Raised by Investors and the Company’s Responses The company has responded to the questions raised by investors during this roadshow: 1. Please provide a brief overview of Water Shares’ 2024 performance. Hello! In 2024, the company adhered to its platform-based strategy for specialty polymer materials and proactively expanded into such fields as high-frequency communications, computing servers, new-energy vehicles, the low-altitude economy, and semiconductors. Despite challenges posed by industry cycles, depreciation of newly added production capacity, and amortization of share-based compensation expenses under the employee stock ownership plan, the company achieved double-digit growth in both net profit attributable to shareholders of the listed company and net profit excluding non-recurring items. For 2024, net profit attributable to parent company is projected at RMB 28 million to RMB 38.5 million, representing a year-on-year increase of 374.89% to 552.97%; net profit excluding non-recurring items attributable to parent company is expected to range from RMB 18 million to RMB 26.5 million, up 1,313.65% to 1,981.21% year on year. Revenue is forecast to reach approximately RMB 1.85 billion, up about 20% year on year, with revenue posting quarter-over-quarter growth for three consecutive quarters. Among these, sales of specialty polymer materials such as liquid crystal polymers (LCP), specialty nylons, and polyphenylene sulfide (PPS) have… 2. Could you please provide information on the company’s current LCP production capacity and its planned future capacity expansions? Hello! The company currently has an LCP synthetic resin production capacity of 5,000 tonnes, and the newly built 20,000-tonne LCP resin facility at the Chongqing base has completed construction of its infrastructure and plant buildings. Notably, the first phase of the Chongqing base’s 5,000-tonne LCP project has already passed the expert review panel for the comprehensive acceptance of safety facilities and is now undergoing the formal government procedures for obtaining a production license. Upon completion of all ongoing projects, the company will become the world’s largest supplier of newly added, commercially available LCP capacity, enabling it to respond swiftly to rapid changes in downstream demand. Thank you! 3. Could you please provide an estimate of the company’s LCP prices and gross margin for 2024? Hello! LCP product prices vary significantly depending on the application scenario. In 2024, the company maintained a mid-to-high-end brand positioning for its LCP business, with the average annual price remaining broadly stable. As raw material supply issues were resolved, the LCP gross margin also improved year over year in 2024. Thank you! 4. Could you please provide an update on the company’s PEEK material development and its anticipated contribution to future performance? Hello! The Company’s Phase I PEEK synthetic resin project has successfully passed the expert review at the comprehensive acceptance meeting for safety facilities and is currently undergoing the formal government procedures for obtaining a production license. Please stay tuned for the Company’s subsequent announcements regarding this matter. Our subsidiary, Zhejiang Kesa, possesses the capability to produce and process PEEK profiles, meaning the Company now has end-to-end capabilities spanning from upstream PEEK synthesis to downstream processing, thereby extending the industrial chain and enhancing product value-added. Thank you! 5. Could you please specify which downstream applications are driving the growth of the LCP business? Hello! On the one hand, the company is deeply cultivating its existing downstream customers in the communications electronics and consumer electronics sectors, with a particular focus on meeting their demand for high-frequency, high-speed transmission components used in 5G/6G, computing power, AI servers, and other applications, and fostering close collaboration in these areas. On the other hand, the company is also exploring new applications for LCP materials in emerging fields such as new-energy vehicles. Thank you! 6. Could you please tell us what are the main downstream applications of PEEK? Hello! From the perspective of downstream and end-use applications, polyether ether ketone (PEEK) stands out for its exceptional overall performance in terms of strength, dielectric constant, and chemical resistance, giving it substantial market potential in the context of “plastics replacing steel” and “lightweighting” trends. Compared with medical metal materials such as zirconium and titanium alloys, PEEK is better suited for use as a medical implant material: its elastic modulus and density are both very close to those of human bone, and it exhibits low thermal conductivity, which enhances post-implantation comfort. In addition, PEEK’s outstanding properties—including high-temperature resistance, wear resistance, dimensional stability, radiation resistance, low moisture absorption, hydrolysis resistance, non-toxicity, and superior mechanical and electrical performance—make it ideal for applications across a wide range of industries, including aerospace, automotive and machinery manufacturing (particularly in seals), petrochemicals, electronic information, rail transit, healthcare, energy, and robotics. Thank you! 7. Could you please provide an update on the company’s current progress with specialty nylon? Hello! Currently, our company has an annual production capacity of 5,000 metric tons for specialty nylon materials, including high-temperature nylons, long-chain nylons, transparent nylons, bio-based nylons, and nylon elastomers. Our specialty nylon product portfolio is already being deployed at scale in industries such as drones and smart wearables. Looking ahead, as electronic devices continue to evolve toward miniaturization, lightweight design, ultra-thin form factors, higher reliability, enhanced functionality, and lower costs, the demand for specialty nylons is expected to grow accordingly. Thank you! 8. Who are the company’s primary PTFE customers? Have there been any new customers added? Hello! The company’s PTFE business is primarily operated by two subsidiaries: Zhejiang Kesa and Waterhua Ben. Notably, Waterhua Ben serves as Walka Co., Ltd.’s sole global in-house manufacturing facility for fluoropolymer materials, and its related products have already been recognized and adopted by leading global semiconductor industry customers. In the first half of 2024, the company increased its equity stake in Waterhua Ben from 51% to 100%, thereby transforming Waterhua Ben from a Japanese-invested enterprise prior to the acquisition into a wholly Chinese-owned subsidiary. Currently, Waterhua Ben is actively pursuing key domestic clients in the semiconductor and ultra-high-voltage sectors. Thank you! 9. What is the company’s sales model? Hello! Our company primarily employs a direct sales model to serve our customers. In addition to supplying the materials they require, we also provide comprehensive services in design, manufacturing processes, and post-use support. Thank you! 10. Does the company have any plans for capacity expansion in the future? Hello! In recent years, the company has been steadily investing to build a platform for specialty materials, with the primary focus in 2025 on ramping up production capacity. Driven by growth opportunities in downstream sectors such as new-energy vehicles, the low-altitude economy, semiconductors, AI computing power, high-frequency communications, and robotics, the company is poised for strong development prospects. Thank you! |
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List of Attachments (if any) |
None |
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Date |
February 5, 2025 |
Headquarters business contact
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