高性能有机颜料龙头，横向纵向一体化扩张

⚫⚫⚫⚫⚫ Seethe last page for disclaimerAPPENDIX 1Summary➢The company offers a comprehensive selection of organic pigments and colour schemes. Founded in 1995, LilyFlower's main products include high-performance heterocyclic and azo pigments, traditional azo pigments,organic pigment intermediates and pearl pigments. Its high-performance organic pigments include quinacridones,pyrrolopyrrolidinediones (DPP), indolines, dioxazines, metal complexes, phthalocyanines, benzimidazolones andphenols. Traditional azo pigments include lake red, diazo yellow, Hansa yellow,monoazo orange, diazo orangeand phenols. Downstream applications of organic pigments include inks (40%), coatings (28%), plastics (27%),and other industries. Lilygroupis one of the few domestic production enterprises with the ability to produce a fullspectrum of pigments. It currently has over 50 pigment production lines and produces more than 200 types ofpigment, covering a wide range of application fields and meeting the varied needs of downstream industries fororganic pigments. Global consumption of organic pigments was approximately 400,000 tonnes in 2024, and thecompany's production capacity is over 40,000 tonnes, accounting for around 10% of the global market share.➢Horizontal integration is expected to increase the proportion of high-performance organic pigment products in thecompany's portfolio. These high-performance, environmentally friendly pigments are primarily used in premiuminks, automotive paints and plastics for children's toys. Currently, China is highly dependent on imports. Thecompany independently develops and produces various high-performance, environmentally friendly organicpigments. These pigments have achieved technological breakthroughs and developments in application fieldssuch as automotive coatings, food packaging, children's toys and specialised customised printing inks. High-performance pigments applied to electronic chemicals have also achieved technological breakthroughs and havebeen validated by downstream customers.➢The company has a relatively complete product chain self-matching system through vertical integration. Usingbasic chemical raw materials and intermediates, the company produces key intermediates required in the organicpigment production process through chemical synthesis. These include 4-chloro-2,5-dimethoxyaniline (4625) andthe phenol series DB-70, DMSS. The self-produced capacity of intermediates such as chlorobenzonitrile meetsmost of the company's production needs. We have invested in Inner MongoliaNew Materials and acquired acontrolling interest in Yuansheng Sodium, which guarantees the supply of raw materials such as naphthol andmetallic sodium. According to the company's external investment announcement, it plans to invest 1 billion yuanin anindustrialisation project for high-performance organic pigments and supporting materials. It is expected thatthe new project will generate an annual output value of approximately 1.7 billion yuan once production capacityis reached.➢The company has two main areas of business: "chemical materials" and "new energy materials". The companyhas established a new energy materials research institute and formed a core team for the new energy business. Theteam's core members have extensive technical expertise and industry experience. The company's core businessesof pigment manufacturing and new energy materials belong to the chemical industry and use production processeswith strong similarities. Building on years of accumulated process technology and through continuoustechnological development and process innovation, the company has mastered the core technologies of newenergy materials, such as lithium carbonate and Prussian blue (white).➢Risk warning. Downstream industries such as ink, coatings, and plastics experience cycles, market competition,and fluctuations in raw material prices. 2 Seethe last page for disclaimer分析师介绍分析师庄怀超，本科毕业于北京航空航天大学，硕士毕业于香港大学金融学专业，主要覆盖化工和新材料行业。该分析师2022-2024年曾任职于海通国际研究部，团队2022年获得过亚洲货币第一名，该分析师2025年加入环球富盛理财有限公司，继续覆盖化工和新材料行业。环球富盛理财有限公司是一家香港的持牌券商机构，成立于2014年。该分析师曾在wind发布报告超过500篇，主要覆盖行业包括化肥、农药、气体、炸药、氟化工、分子筛、电解液和合成生物学等行业。覆盖的公司包括:东岳集团、环球新材国际、中国心连心化肥、中化化肥、阜丰集团、中国三江化工、中国联塑、浦林成山、米高集团、中国石油化学、中国旭阳集团、天德化工、彩客新能源、天德化工、理文化工等。邮箱:charles.zhuang@gpf.com.hk电话:(852)97487114 3 SECTOR RATING DEFINITIONThe Benchmark: Hong Kong Hang Seng IndexTime Horizon: 6 to 18 monthsRatingOutperform跑赢大市Neutral中性Underperform跑输大市DISCLOSURE OF INTERESTS(1) The Analysts and their associates do not serve as an officer of the issuer mentioned in this Research Report.(2) The Analysts and their associates do not have any financial interests in relation to the issuer mentioned in this Research Report.(3) Global Prosperity Financial Company Limited and/or its subsidiaries do not hold equal to or more than 1% of the market capitalization of the issuermentioned in this Research Report.(4)Global Prosperity Financial Company Limitedand/or its subsidiaries have not had investment banking relation