HIUV(688680)2025-04-21 03:00Summary of Haiyou New Materials Conference Call Company Overview - Company: Haiyou New Materials - Industry: Photovoltaic and Automotive Materials Key Points Industry Impact and Financial Performance - The photovoltaic industry has experienced significant volatility, leading to a decline in film prices and a reduction in gross margins. The lowest price point for film was reached in Q4 2024, with a slight recovery expected in Q1 2025, but average prices remain low, impacting revenue and profitability [2][3][5] - The company adopted a conservative strategy by cleaning up assets and reducing shipment volumes to mitigate risks, while relocating some factories to Chengdu to align with core customers [2][4] Customer Relationships and Market Strategy - Haiyou New Materials maintains strong partnerships with top clients, with the top five customers contributing 50-60% of revenue. The company avoids blind expansion to minimize accounts receivable risks [2][5] - A new policy is expected to be implemented in June 2025, after which the company will reassess its sales strategy based on market conditions and capacity clearing [2][5] New Product Development in Automotive Sector - The company is actively developing new products in the automotive sector, such as the smart dimming canopy featured in the Zhiji L6 model, which marks a significant step in market penetration [2][6][8] - The dimming canopy is projected to become a standard feature in approximately 80 million vehicles globally, with 2025 being a pivotal year for PDLC products [2][11] Cost Reduction and Technological Advancements - Since 2020, the company has focused on developing dimming film technology, achieving a cost reduction of over 50% in 2024 through the PDLC CRC technology route. A second-generation dimming film is set to launch in 2025, with further cost reductions aimed at making the product accessible for vehicles priced in the tens of thousands [2][12][14] - The company aims to penetrate the market for vehicles priced below 200,000 yuan, with plans to launch the second-generation dimming film in the second half of 2025 [2][13] International Business and Market Challenges - The gross margin for overseas operations declined in 2024 due to challenges in the Vietnamese market, exacerbated by U.S. anti-dumping investigations. In 2025, the company plans to collaborate with U.S. partner Fule to establish a factory in the U.S. and provide technical services [2][19][20] - The traditional business faced significant challenges in overseas markets due to trade investigations, but the company is focusing on expanding its presence in Turkey and the U.S. to mitigate risks [2][20][23] Future Outlook and Strategic Goals - The company remains optimistic about the long-term prospects of the photovoltaic industry while maintaining a conservative short-term strategy to ensure sufficient capital for new business development [2][7] - The automotive sector's dimming film products are expected to maintain a gross margin of 20-30% once mass production is achieved, despite initial losses due to low production rates [2][17] - The company is exploring new applications for dimming film technology, including AI glasses, although these projects are still in the exploratory phase [2][18] Conclusion - Haiyou New Materials is navigating a challenging environment in the photovoltaic industry while strategically positioning itself for growth in the automotive sector through innovative product development and strong customer relationships. The focus on cost reduction and technological advancements is expected to enhance competitiveness and market penetration in the coming years [2][34][35]