Research and Development Investment and Product Innovation Competitiveness Analysis Report of Dongpeng Holdings

Based on the collected data and in-depth analysis, I will provide you with a complete research report on Dongpeng Holdings’ R&D investment and product innovation competitiveness.

First, it is necessary to clarify a key issue: According to the data in Dongpeng Holdings’ 2024 Annual Report,

From the five-year trend perspective, Dongpeng Holdings’ R&D investment shows continuous growth:

• R&D Expenditure
  : Increased from 198 million yuan in 2020 to 233 million yuan in 2024, with a cumulative growth of 17.7%
• R&D Personnel
  : Increased from 320 people in 2020 to 431 in 2024, with a cumulative growth of 34.7%
• R&D Intensity
  : Increased from 2.8% to 3.59%, and the proportion of R&D investment to revenue has increased significantly

Chart Description: The above chart shows the change trends of Dongpeng Holdings’ total R&D expenditure, R&D expenditure as a percentage of revenue, and number of R&D personnel from 2020 to 2024, as well as a comparison of R&D expense ratios with comparable companies in the industry[1][2].

In the building ceramics industry, Dongpeng Holdings’ R&D expense ratio is at the

Dongpeng Holdings’ R&D investment intensity is higher than the industry average, reflecting its emphasis on technological innovation.

Although the growth rate of R&D expenditure in 2024 is only 1.07%, which seems to be a slowdown in growth, it needs to be understood from the following dimensions:

1. Improvement in the Quality of R&D Personnel
   :
   • The number of R&D personnel increased by 6.42% year-on-year, which is higher than the growth rate of expenditure
   • The proportion of highly educated talents has increased, and the proportion of R&D personnel with master’s degree or above has increased
   • The R&D team is getting younger, and the proportion of core R&D personnel aged 30-40 has increased significantly

2. Optimization of R&D Efficiency
   :
   • The proportion of R&D expenditure to revenue increased from 2.96% to 3.59%, indicating that the company
     increased R&D intensity despite a decline in revenue
   • This reflects the management’s strategic resolve towards technological innovation

Dongpeng Holdings’ R&D investment has been continuously converted into innovative achievements[3]:

• Breakthroughs in Intelligent Manufacturing
  : Built multiple intelligent production lines, achieving an increase in production efficiency of more than 30%
• Innovation in Green Building Materials
  : Launched a number of low-carbon and environmentally friendly products, and obtained multiple green certifications
• Expansion of Product Categories
  : Made breakthroughs in high-value-added fields such as sintered stone and intelligent sanitary ware
• Patent Accumulation
  : As of the end of 2024, the company’s cumulative number of patents continues to increase

Dongpeng Holdings’ product innovation competitiveness has been fully recognized by the market[3]:

• Top 10 Influential Enterprises in Building Ceramics 2025
• Advanced Ceramics Enterprise
• Foshan Ceramics Outstanding Contribution Brand
• Chairman He Xinming was awarded “Outstanding Contributor to Foshan Ceramics Regional Brand”

Although the absolute value of R&D expenditure has increased, the slowdown in growth rate may bring the following risks:

1. Technological Iteration Pressure
   : The ceramics industry is in a critical period of digital and intelligent transformation, and insufficient growth in R&D investment may affect technological catch-up
2. Talent Competition
   : Excellent R&D talents may be poached by competitors with high salaries
3. Weakened Product Differentiation
   : Against the background of intensified homogeneous competition in the industry, insufficient R&D investment may weaken product competitiveness

1. Optimize R&D Structure
   : Shift from “scale expansion” to “quality improvement”, focusing on R&D of high-value-added products
2. Strengthen Industry-University-Research Cooperation
   : Carry in-depth cooperation with universities and research institutes to improve R&D efficiency
3. Focus on Digital Transformation
   : Increase investment in intelligent manufacturing and industrial internet fields
4. Emphasize Green Innovation
   : Strengthen R&D of low-carbon and environmentally friendly products against the background of “dual carbon” goals

1. R&D Expenditure Has Not Decreased
   : Dongpeng Holdings’ R&D expenditure increased by 1.07% year-on-year in 2024, and its R&D investment intensity increased to 3.59%
2. Competitiveness Remains Stable
   : R&D investment is at the upper-mid level in the industry, and innovative achievements continue to emerge
3. Slowdown in Growth Rate Requires Attention
   : The slowdown in R&D expenditure growth may affect the technological leading position in the medium to long term

• Short-term (1-2 years)
  : The existing R&D accumulation is sufficient to support product competitiveness, with limited impact on performance
• Medium-term (3-5 years)
  : If the growth rate of R&D investment continues to be lower than the industry average, it may face technological catch-up pressure
• Long-term (more than 5 years)
  : Need to continuously pay attention to adjustments in R&D strategy and the efficiency of innovative achievement transformation

• Focus on R&D Efficiency
  : It is recommended that investors focus on the output efficiency of the company’s R&D investment, rather than just the absolute value of investment
• Track Innovation Dynamics
  : Pay attention to the company’s new product launches and technological breakthroughs in intelligent manufacturing and green building materials fields
• Industry Comparison Perspective
  : Continuously compare Dongpeng Holdings’ R&D investment with comparable companies such as Monalisa and D&O Home

[1] 2024 Annual Report of Guangdong Dongpeng Holdings Co., Ltd., Sina Finance, https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=003012&id=10907051

[2] Building Ceramics Industry Research Report, Shenwan Hongyuan, https://pic-test-gjmetal-1324067834.cos.ap-shanghai.myqcloud.com/newsv2/1e6164ea2fa943b8bccfcd37c29c534920251217183352.pdf

[3] Dongpeng Holdings Won Multiple Industry Honors, East Money, https://caifuhao.eastmoney.com/news/20260105103531362332860