Hz info:On August 28, 2025, Lily Group Co., Ltd. (Stock Code: 603823) released its 2025 semi-annual report. Data shows that the company achieved operating revenue of 1.125 billion yuan in the first half of the year, a year-on-year decrease of 7.83%; net profit attributable to shareholders was 99.537 million yuan, down 0.67% year-on-year; while net profit attributable to shareholders after deducting non-recurring gains and losses was 95.6493 million yuan, an increase of 3.55% year-on-year, indicating robust profitability in its core business. Basic earnings per share stood at 0.25 yuan.

As a leading enterprise in China's organic pigment industry, Lily Group holds approximately a 10% share of the global organic pigment consumption of 400,000 tons in 2024. It is one of the few domestic companies with the capability to produce a full spectrum of pigments. With over 50 production lines, it can manufacture more than 200 types of pigments. Its product matrix covers various application fields, precisely meeting the differentiated demands of downstream industries for organic pigments. Regarding metallic sodium, Lily Group's subsidiary, Inner Mongolia Yuansheng, has an annual capacity of 20,000 tons. Supported by stable downstream demand, its products are allocated for indigo dye (66.70%), pharmaceutical intermediates (28.80%), pesticides, high-performance pigments, and others (4.50%), demonstrating significant business synergy.

Looking at specific products, the Permanent Yellow series achieved sales of 5,336.70 tons, generating revenue of 270 million yuan; the Lithol Red series sales reached 3,564.35 tons, with revenue of 90.8976 million yuan; the Lake Red series sales were 2,932.18 tons, contributing revenue of 72.8734 million yuan; and the Permanent Red series sales amounted to 2,674.59 tons, yielding revenue of 179.3817 million yuan.

Price trends showed significant divergence, further impacting the performance of various product lines. The average selling price for the Permanent Yellow series was 50,688.20 CNY/ton, down 3.09% year-on-year; the Lithol Red series averaged 25,501.86 CNY/ton, down 1.42%; the Lake Red series averaged 24,853.01 CNY/ton, down 2.36%; while the Permanent Red series averaged 67,068.98 CNY/ton, a slight increase of 0.27%.

Regarding raw material procurement, divergent price movements squeezed profit margins. The average purchase price for 2,3-Acid was 16,606.06 CNY/ton, down 2.56% year-on-year; for 3,3'-Dichlorobenzidine, it was 15,416.02 CNY/ton, up 8.72%; for 4B Acid, it was 10,790.25 CNY/ton, up 3.13%; for Beta-Naphthol, it was 11,523.88 CNY/ton, up 4.39%; and for liquid caustic soda, it was 977.29 CNY/ton, a significant increase of 13.90%.

Lily Group stated that in response to the constantly changing market environment, the company actively adjusted its operational strategies, optimized its business model, and fully leveraged its core strengths and resources. Adhering to a steady and pragmatic, step-by-step development philosophy, it effectively safeguarded its market share. Against the backdrop of overall contracting demand, the company proactively regulated production output. It continuously tapped potential through new product iterations, centralized procurement, and lean manufacturing, driving gross margin improvement. Simultaneously, it compressed non-essential expenditures, strictly managed inventory and accounts receivable, maintained ample operating cash flow, further widened its cost moat, and continuously enhanced its ability to withstand economic cycles.

While responding to market changes, the company continued to strengthen its technological innovation capabilities. During the reporting period, the company itself was granted 4 invention patents; its subsidiary Lily Hombitec was granted 1 invention patent; and its subsidiary Forward Chemical applied for 1 invention patent. The R&D department improved existing products based on new market demands. Among these efforts, a technological breakthrough was achieved in high-performance pigments for photoresists used in liquid crystal displays, which have already achieved ton-level sales.

Furthermore, on April 10, 2025, the company signed a "Project Investment Agreement" with the Hangzhou Qiantang New Area Management Committee. It plans to invest 1 billion yuan to build an industrial project for high-performance organic pigments and supporting materials. The project is planned to have an annual production capacity of 2,000 tons of high-performance organic pigments, 1,500 tons of pigment intermediates, 3,000 tons of dispersing agents, and 10,000 tons of water-based resins. Upon reaching full production, the project is expected to generate annual output value of approximately 1.7 billion yuan, marking a significant step for the company in the field of high-performance pigments and new materials.

Additionally, the company's board of directors completed personnel adjustments in May 2025. Directors Chen Weizhong and Gao Jianjiang resigned for personal reasons. Chen Weizhong continues to serve as Deputy General Manager, while Gao Jianjiang transferred to an affiliated enterprise, Hangzhou Lily Real Estate Development Co., Ltd. The workers' congress elected Xuan Yongjun as a worker representative director, and Chen Yang was appointed as a non-independent director following review and approval at an extraordinary general shareholders' meeting. The optimized governance structure provides assurance for the company's future development.