Global Organosilicon Network, June 5th: Monitoring data shows that on June 4th, the average price of DMC was referenced at 13600 yuan/ton, continuing to remain stable. Luxi Net reported 13400 yuan/ton, Xinjiang Factory Net reported 13900 yuan/ton, Zhejiang Factory Net reported 13700 yuan/ton, Hebei Factory Net reported 13450 yuan/ton, Jiangxi Factory Net reported 14000 yuan/ton, and the transaction continued to be mainly in demand.
Industry experts have stated that the prices of the organic silicon industry chain continue to be low, and the industry's elimination race is entering a deep water zone. Observing the performance of different links in the industry chain over the past year, including monomer, mixed rubber, silicone rubber, silicone oil and other enterprises, the impact of factors such as fluctuations in raw material prices such as DMC and homogenization of product competition has led to a continuous decline in factory prices in the middle and lower reaches, unclear profit expectations, and continued pressure on the industry. Industry leaders have warned their peers that in the next two to three years, more than half of small and medium-sized organic silicon manufacturers may be forced to withdraw from the market. This is bound to be a far-reaching elimination match. Amidst the chaos, competition intensifies, and profit differentiation among companies is severe. Some companies can still earn over 100 million yuan per month, while others have been losing money for years and are on the brink of bankruptcy. Industry insiders have analyzed that the periodic "involution" of organic silicon is not a bad thing, but can promote technological iteration.
Is there a big reversal? On June 4th, one of the giants, Huitian New Materials, saw its stock price soar by over 7%, with a transaction of 231 million yuan. Recently, Huitian New Materials held an investor exchange meeting remotely via the internet. In the investor relations activity record form, the main Q&A content is as follows:
Question 1: The company has achieved significant market share and technological innovation achievements in the adhesive industry. Faced with increasingly fierce market competition, especially the challenge of international brands, what long-term strategies does the company have to consolidate and expand market share? What specific plans are there for the future in terms of new product research and technological innovation?
Answer: The company will continue to increase research and development investment, high-end market layout, and capacity expansion, fully seizing the strategic opportunities of import substitution and industrial upgrading. Guided by market demand, the company will focus on high-quality tracks such as consumer electronics, automotive electronics, and lithium-ion new energy vehicles, continuously improving its management level, promoting the continuous expansion of business scale, market share, and enterprise competitiveness, and achieving high-quality development of the company through both endogenous growth and external expansion. The company's new product research and development focuses on consumer electronics, advanced packaging, lithium-ion new energy vehicles, photovoltaics, and other tracks. The high-end electronics sector mainly focuses on the development of new products in the mobile phone business, camera modules, chip packaging, and other sectors. Some products are in the collaborative development stage with industry leading customers, and some products have achieved breakthroughs and increased volume; The focus of the lithium battery sector is currently on negative electrode adhesive products, and SBR/PAA products have been supplied in large quantities to industry customers this year, with continuous expansion; The photovoltaic sector mainly focuses on the layout of products such as butyl rubber, water blocking adhesive, and water blocking backboards around new industry trends, striving to improve profitability and stabilize market share through new products. 
　　 
Question 2: The company has made a breakthrough in the field of composite structural adhesives for pharmaceutical packaging and has been widely applied. How can companies ensure the continuous compliance and technological innovation of their products in the face of strict regulatory requirements in the pharmaceutical industry, in order to maintain a competitive advantage in this high-quality field?
　　　　　　　　　　　　 
Answer: The company has developed rapidly in pharmaceutical packaging product projects in recent years, while also focusing on the iterative upgrading of product technology, and paying more attention to environmental health standards and regulations. With the progress of the company's internationalization, the company will continue to increase capital investment and talent introduction in the future, benchmark against international industry standards, enhance the digital application of production and operation processes, and improve product quality, maintaining a core competitive position among domestic and international enterprises.
Question 3: Seeing the company's success in UV delayed curing PUR products is an innovation in traditional tape and PUR applications. May I ask how the company views the potential of this product in the consumer electronics market, and what specific market penetration strategies are there?
Answer: UV delayed PUR can replace tape and hot melt PUR in many scenarios in the application of consumer electronics products. Compared to the above two products, UV delayed PUR has better processability and reliability, and will become a very important product line for the assembly of consumer electronics products in the future, with great market potential. At present, our product has been imported into multiple benchmark customers and is currently collaborating with them to develop and expand its application scenarios. In addition to the consumer electronics field, UV delayed PUR can replace tape or PUR applications in narrow bezel televisions, car displays, and other fields. We are currently in contact with relevant customers. Thank you for following us!
Question 4: How can the company balance domestic and international market risks, ensure the stability and efficiency of the supply chain, and expand its overseas market by setting up a factory in Vietnam to face the uncertainty of the global trade environment, especially in the context of the China US trade friction? Meanwhile, what are the challenges in the construction and operation of factories in Vietnam, and how will the company respond?
Answer: On the one hand, the company has many photovoltaic industry customers building factories in overseas regions such as Vietnam. On the other hand, the company has accumulated many years of channel resources and customer relationships in overseas markets. The company's investment in building a photovoltaic backplate production base in Vietnam can better serve overseas photovoltaic customers and is conducive to further expanding the overseas photovoltaic market. The company will continue to monitor the future macroeconomic and market situation, and prepare contingency plans and actively respond to the challenges encountered in the operation of the Vietnamese factory. Thank you for following us!