Analysis Report on the Proportion of Master's Degree Holders in Dongpeng Holdings' R&D Team: Does Talent Structure Restrain Innovation?

Based on the above-collected data and analysis, we now present the complete analysis report on Dongpeng Holdings’ R&D personnel structure and innovation capability.

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According to the data disclosed in Dongpeng Holdings’ 2024 Annual Report [0]:

Educational Attainment	Headcount	Proportion
Master’s Degree and Above	17	3.94%
Bachelor’s Degree	170	39.44%
Junior College and Below	244	56.62%
Total R&D Personnel	431	5.95%

Notably, the number of R&D personnel with master’s degrees increased from 14 in 2023 to 17 in 2024, representing a year-on-year growth of 21.43%, showing a steady upward trend [0].

Compared with comparable companies in the same industry, the proportion of master’s degree holders in Dongpeng Holdings is indeed at a relatively low level [1][2]:

Company	Industry	Proportion of Master’s Degree Holders	R&D Investment as a Percentage of Revenue
ARROW Home	Sanitary Ware	29.8%	4.5%
Huaxin Cement	Cement	27.8%	0.70%
MonaLisa	Building Ceramics	5.57%	3.59%
Dongpeng Holdings	Building Ceramics	3.94%	3.59%
Xinjiang Guotong	Piping	1.16%	5.02%

1. Restricted Capability in Cutting-Edge Technology R&D
   • Personnel with master’s degrees or above usually have a more solid theoretical foundation in basic research and cutting-edge technology exploration
   • This may restrict in-depth innovation in fields such as new material R&D and digital transformation

2. Industry-University-Research Transformation Efficiency
   • Highly educated personnel usually have broader academic networks and resources
   • This may affect the effectiveness of collaborative innovation with universities and research institutes

3. Patent and Core Technology Breakthroughs
   • High-end personnel play a key role in patent layout and core technology tackling
   • According to the data in Marco Polo Holdings’ IPO inquiry letter, leading industry enterprises such as MonaLisa and Dongpeng Holdings have all obtained multiple provincial-level R&D platform certifications [2]

Despite the low proportion of master’s degree holders, Dongpeng Holdings still achieved multiple technological breakthroughs in 2024 [0]:

Technology Field	Innovation Achievement	Technological Level
Intelligent Sanitary Ware	Full-Domain Sensing Technology for Intelligent Toilet Seats	Industry First
Intelligent Sanitary Ware	Whirlpool Flush System and Deodorization Technology for Intelligent Toilets	Flushing performance is more than 4 times the national standard
Ceramic Tile Functions	Antique Anti-Slip Glaze Technology	R9-R13 anti-slip rating
Green Materials	Carbon-Sealing Unburned Decorative Panel Technology	First industrialization of carbon-sealing technology
Energy-Saving Technology	Low-Temperature Glazed Ceramic Tile Technology	Reduces firing energy consumption

• Dongpeng Holdings has deeply engaged in the building ceramics industry for decades, and its technical backbone mostly comes from frontline practice
• Chairman He Xinming graduated from South China University of Technology, and a number of senior executives have technical backgrounds in the ceramics industry [3]

• The company conducts extensive and in-depth industry-university-research cooperation with domestic universities and research institutes [4]
• Makes up for the shortage of internal highly educated personnel through external intellectual resources

• In 2024, R&D investment reached RMB 233 million, accounting for 3.59% of operating revenue, maintaining the industry average level [0]
• The capitalization rate of R&D investment is 0, indicating that all R&D expenses are expensed, reflecting prudent financial handling

The building ceramics industry is a

, and its innovation model has the following characteristics [1][4]:

1. Process Innovation-Led
   • Technological innovation is more reflected in formula optimization, firing process improvement, equipment introduction, etc.
   • The requirement for theoretical breakthroughs is relatively lower than that of high-tech industries

2. Practice-Oriented
   • The experience accumulation and technical know-how of technical personnel are crucial
   • Technical inheritance from “veteran craftsmen” is of great value in the industry

3. Equipment-Driven Innovation
   • The introduction of advanced equipment can directly improve product quality more effectively than talent upgrading
   • Imported equipment from Italy, Spain, etc., plays a significant role in technological improvement

According to industry data, the R&D personnel in the building ceramics industry generally present a

[1][2]:

• First-tier brands (such as Marco Polo, MonaLisa, Dongpeng, etc.) have a proportion of bachelor’s degree holders and above of about 30%-40%
• A large number of small and medium-sized enterprises have R&D personnel mainly with junior college or below educational attainment
• The overall proportion of highly educated personnel in the industry is relatively low, which is a common phenomenon

• As the industry develops towards intelligent manufacturing and industrial internet, the demand for high-end talent will increase
• The company may face talent shortages in fields such as digital R&D and AI applications

• Under the “Dual Carbon” goals, the R&D demand for carbon-sealing technology, energy-saving technology, etc., is rising
• The importance of basic research capability is increasingly prominent

• The home building materials industry competes for talent with industries such as the internet and consumer electronics
• Highly educated personnel may be diverted to other industries

• The number of R&D personnel with master’s degrees increased by 21.43% year-on-year in 2024, indicating that the company is improving its talent structure
• Enhance team capabilities through a combination of internal training and external introduction

• Cooperation with universities and research institutes can effectively make up for the shortage of internal talent
• Multiple R&D projects were commercialized in 2024, showing good industry-university-research transformation efficiency [0]

• The industry’s transformation towards intelligent manufacturing provides the company with an opportunity to overtake on a curve
• The company can make up for R&D shortcomings by introducing mature technical solutions and purchasing patents

The reasons are as follows:

1. Current innovation achievements show
   : Dongpeng Holdings’ innovation in fields such as intelligent sanitary ware and green materials has not been significantly restricted by the low proportion of master’s degree holders [0]

2. Industry characteristics determine
   : Innovation in the building ceramics industry relies more on process accumulation and equipment upgrading, with relatively lower educational attainment requirements [1][4]

3. Structure is improving
   : The number of R&D personnel with master’s degrees continues to grow (14 → 17), indicating that the company has realized the importance of talent upgrading [0]

Dimension	Recommended Measures
Talent Introduction	Formulate a recruitment plan for highly educated personnel, focusing on introducing talent in fields such as materials science and intelligent manufacturing
Internal Training	Establish a sound training system for R&D personnel to enhance the professional capabilities of the existing team
Industry-University-Research Cooperation	Deepen cooperation with universities and research institutes to leverage external intellectual resources
Incentive Mechanism	Improve the salary incentive system to enhance attractiveness to highly educated personnel
Technology M&A	Consider quickly supplementing core technical capabilities through technology mergers and acquisitions and patent purchases

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[0] Dongpeng Holdings (003012) 2024 Annual Report. Sina Finance. https://money.finance.sina.com.cn/corp/view/vCB_AllBulletinDetail.php?stockid=003012&id=10907051

[1] ARROW Home Group Co., Ltd. Research Report on Increasing Holdings of ARROW Home. Dongfang Fortune Securities. https://pdf.dfcfw.com/pdf/H3_AP202310171601754324_1.pdf

[2] Marco Polo Holdings Co., Ltd. Reply to IPO Review Inquiry Letter of Shenzhen Stock Exchange. https://reportdocs.static.szse.cn/UpFiles/rasinfodisc1/202405/RAS_202405_140915076B321EBDC440B0AB23D864DA1C88F9.pdf

[3] MonaLisa Group Co., Ltd. 2022 Annual Report. http://static.cninfo.com.cn/finalpage/2023-03-30/1216260259.PDF

[4] Intelligent Trend Facilitates “Overtaking on a Curve”, Moat of Ceramic and Sanitary Ware Leaders Remains Stable. Minsheng Securities. https://pdf.dfcfw.com/pdf/H3_AP202303301584690094_1.pdf