2025年7月11日，宏华集团成功举办了投资者开放日活动，董事长王旭、董事会秘书何斌等参加接待活 动。本次活动吸引了来自财通证券、国海证券、华西证券、理成资产、华西银峰投资、成都之柱资产等 机构投资者参与。会议期间，公司管理团队向各位投资者系统阐释了公司的核心竞争力、战略蓝图以及 各业务板块现状与未来规划，此次全面沟通旨在帮助股东和投资者更加清晰深入地把握公司经营情况， 巩固市场信心。 实地探秘技术实力 投资者一行先后来到公司下属宏华电气、汉正检测等生产单位一线参观交流，相关部门负责人针对宏华 集团在智能钻机、数字化控制中心、智能检测、数字服务等业务领域的相关产品和在研情况进行介绍， 投资者与业务负责人和技术人员进行深入沟通互动，全方位了解公司在油气行业的技术实力和研发进 展。 随后，投资者们前往东方电气集团展厅进行参观，了解东方电气集团在生产经营、科技研发、产业结 构、未来规划等方面相关情况，直观感受东方电气集团先进的产品实现及服务能力，零距离接触企业高 质量发展成果。 针对投资者们的关心事项，公司管理层与大家进行了沟通与交流。在交流过程中，公司董事长王旭表 示，宏华集团作为一家全球领先的油气勘探开发设备制 ...

Summary of Key Points Core Viewpoint - As of July 3, a total of 120 stocks reached their 52-week highs, indicating a strong market performance with notable leaders in the list [1]. Group 1: Top Performers - The top three stocks with the highest increase rates are: - 富誉控股 (Fuyou Holdings) at 90.76%, closing at 0.435 with a peak of 0.475 [1] - 信义能源 (Xinyi Energy) at 65.00%, closing at 1.200 with a peak of 1.980 [1] - 中国三三传媒 (China San San Media) at 42.86%, closing at 1.710 with a peak of 1.900 [1] Group 2: Additional Notable Stocks - Other notable stocks include: - ITE HOLDINGS at 34.21% increase, closing at 0.047 with a peak of 0.051 [1] - 星凯控股 (Xingkai Holdings) at 30.00%, closing at 0.480 with a peak of 0.650 [1] - 北京北辰实业股份 (Beijing Beichen Industrial) at 26.47%, closing at 0.940 with a peak of 1.290 [1] Group 3: Overall Market Trends - The overall trend shows a significant number of stocks achieving new highs, reflecting positive investor sentiment and market conditions [1].

Group 1 - The Hang Seng Index Company will announce the second quarter review results on August 22 [1] - The Guangdong vehicle policy aims to launch by November with a daily quota of 100 vehicles [1] Group 2 - 康视云 is listed today, with 蓝思科技 and five other stocks available for subscription [1] - Luxshare Precision is planning to issue shares overseas and list on the Hong Kong Stock Exchange [1] - Ganfeng Lithium has completed the acquisition of the remaining 40% stake in Mali Lithium [1] - Xiaopeng Motors issued 293,600 Class A ordinary shares under its equity incentive plan [1] - Lei Jun stated that the subscription rate for Xiaomi Group's SU7 and SU7 Ultra is less than 15% [1] - Honghua Group signed drilling rig sales agreements totaling over 100 million USD [1] - Diligent Pharma received accelerated approval from the US FDA for its product Shuwozhe [1]

Core Viewpoint - Honghua Group's subsidiary, Sichuan Honghua Petroleum Equipment Co., Ltd., has signed a drilling rig sales agreement worth over 100 million USD with a Middle Eastern client, highlighting the company's commitment to innovation and safety in the oil and gas industry [1] Group 1 - The sales agreement involves the provision of several desert mobile drilling rigs, designed for mobility and flexibility to adapt to complex terrains and operational environments [1] - The agreement was established after fair negotiations between Sichuan Honghua and the client, with terms that are considered normal commercial terms, ensuring fairness and reasonableness [1] - The client is a leading oilfield service company in the Middle East, with a long-standing partnership with Honghua Group, which provides advanced automation equipment and components [1] Group 2 - The signing of the sales agreement reflects Honghua Group's dual focus on innovation and safety, emphasizing high-quality service and stable, safe equipment operation as key factors for becoming an important partner for top clients in the oil and gas industry [1]

Summary of Honghua Group Conference Call Company Overview - **Company**: Honghua Group - **Date**: June 17, 2025 Key Points Financial Performance - Honghua Group achieved a turnaround in net profit, with expectations for 2025 growth rates to exceed those of orders and revenue [2][4] - Revenue for 2024 reached approximately 5.633 billion yuan, marking a growth of about 3% [4] - The company anticipates a further increase in gross margin by 2 percentage points in 2025 [2][6] Business Segments - The company maintains its leading position in land drilling rigs, with marine and fracturing equipment and services becoming key growth drivers [2][6] - The marine segment is expected to contribute significant revenue growth in 2024, while the fracturing business is projected to turn profitable, enhancing gross profit margins [2][6] - Basic business (land drilling rigs, fracturing fluids, drilling engineering services, and components) accounts for over 70% of revenue, with growth expected from marine and fracturing segments contributing approximately 1.2 billion yuan each in 2025 [8] International Expansion - Honghua's international strategy focuses on the Middle East, with a significant presence in countries like Kuwait, Saudi Arabia, and Iraq [12][13] - The company plans to establish subsidiaries in Singapore and Lagos, Nigeria, to further develop its marine oil sector [3][14] - As of May 2025, the company had an order backlog of approximately 5 billion yuan, exceeding half-year expectations, with a full-year order forecast of 8 billion yuan [10] Digital and Marine Products - Digital products have entered the high-end market in the Middle East, with marine products also achieving breakthroughs [11] - The company is enhancing its capabilities in special vessels and intelligent drilling rigs, recently winning orders for intelligent drilling rigs in the Middle East [7] Market Dynamics - The Middle East oil service industry is experiencing high demand, with Honghua actively participating in various EPC projects [16] - The company has signed a significant order worth 1.5 billion yuan with the largest oil rig contractor in the Middle East, involving six 3,000 horsepower artificial island drilling rigs [20] Competitive Landscape - Honghua has established itself as a leading brand in the Middle East, competing effectively against major players like NOV [21] - The company emphasizes rapid response, customization, and strong service capabilities, which have contributed to its competitive advantage [22] Future Outlook - The company is optimistic about future profit growth, driven by improved product structure and management efficiency [31][36] - Honghua aims to achieve over 8.5 billion yuan in orders for 2025, reflecting a 15% increase from 2024 [26] - The focus will be on becoming a top player in core components and digital products, as well as in the marine equipment sector within five years [26] Domestic Market Trends - Domestic oil demand is shifting towards deep earth, deep sea, and unconventional energy sectors, with a focus on developing marine equipment to align with future drilling technology advancements [24] Shareholder Returns - The company is considering share buybacks, dividends, and stock incentives as part of its market value management strategy [25] Order Structure - In the first half of 2025, over 30% of orders were related to marine projects, with more than 40% of orders coming from the Middle East [26] Profitability and Cost Management - The company expects to see a decline in financial costs and management expenses, contributing to net profit growth [36] This summary encapsulates the key insights from the conference call, highlighting Honghua Group's financial performance, business segments, international expansion, market dynamics, competitive landscape, and future outlook.

宏华集团从"制造"向"智造"的转型路径日益清晰，智能钻机与海洋板块业务的持续发力，将使其在能源 装备领域扎实前行。 公开资料显示，在能源装备行业加速转型升级的背景下，宏华集团2024年度业绩报告交出一份营收利润 双增、业务结构持续优化的高分答卷。2024年实现营业收入56.33亿元，近三年复合增长率达24.2%；实 现归母净利润0.08亿元，成功扭亏。此次协议的签订，是标志着宏华集团迈入高质量发展新阶段的又一 次有效验证。随着未来营收结构的持续优化，宏华集团有望持续释放业绩增长动能。 锚定技术先导，领跑智能化钻机。2024年，宏华集团在智能装备领域实现重大突破，其推出的新一代 AI智能钻机通过搭载自研智能钻井系统，可通过机器学习算法优化钻井参数，单井作业效率较传统设 备显著提升。2024年宏华集团已斩获超15亿元智能钻机订单，为中东客户提供数套全球领先的人工岛丛 式井智能钻机，彰显中国高端装备制造的国际竞争力。同时，宏华集团深耕中东市场多年，与全球头部 石油企业在业务、前沿技术研发等领域合作紧密。本次签订的销售协议，其中所涉及的钻机设备通过机 电融合一体化设计，集成智能钻井技术、自动化管具处理、离线处理、区域 ...

Summary of Key Points Core Viewpoint - As of May 28, a total of 65 stocks reached their 52-week highs, with notable performances from Kingway Medical Holdings (08559), China Silver Technology (00515), and Honghui Group (00183) leading the list with high rates of increase [1]. Group 1: Stocks Reaching 52-Week Highs - Kingway Medical Holdings (08559) achieved a closing price of 0.027 with a peak of 0.045, marking a high rate of 32.35% [1]. - China Silver Technology (00515) closed at 0.280, reaching a maximum of 0.305, resulting in a high rate of 28.15% [1]. - Honghui Group (00183) had a closing price of 0.255, with a peak price of 0.255, reflecting a high rate of 27.50% [1]. - Other notable stocks include Emperor Watch and Jewellery (00887) with a high rate of 27.14% and Sogo Department Store (00312) at 21.79% [1]. Group 2: Additional Stocks with Significant Increases - Lehua Entertainment (02306) reached a high rate of 13.73% with a closing price of 2.540 [1]. - Kingway Medical (08143) had a closing price of 0.124 and a peak of 0.230, resulting in a high rate of 10.05% [1]. - Other stocks with notable increases include Zhu Feng Gold (01815) at 6.98% and Yaoshi Bang (09885) at 6.68% [1]. Group 3: Stocks with Lower Performance - The report also includes stocks that did not perform as well, with some reaching their 52-week lows, such as China Parenting Network (01736) with a low rate of -14.40% [2]. - XI Nan Tes-U (09366) and XI Nan Tes (07366) also showed declines of -10.08% and -8.60% respectively [2]. - Other stocks like He Fu Hui Huang (00733) and Pai Ge Biomedical-B (02565) experienced decreases of -7.04% and -6.95% [2].

Financial Performance - The total revenue for 2024 reached RMB 5.633 billion, representing a year-on-year growth of 2.93%[7] - Net profit attributable to shareholders was approximately RMB 0.08 billion, reversing a loss and increasing by RMB 0.394 billion[7] - Gross profit margin improved to 12.01%, an increase of 2.11 percentage points compared to the previous year[7] - Operating cash flow net amount surged by 993.5%, reaching RMB 0.678 billion[7] - The company achieved a significant gross profit increase of 24.9%, amounting to RMB 676.5 million[10] - The company recorded revenue of RMB 5,633.4 million for 2024, an increase of RMB 160.2 million or 2.9% year-on-year[19] - Gross profit reached RMB 676.5 million, representing a growth of 24.9% compared to the previous year[19] - The company's gross profit for the year was approximately RMB 677 million, with a gross margin of 12.0%, compared to a gross loss of RMB 542 million and a gross margin of 9.9% in the previous year[59] - Total revenue for the year was approximately RMB 5.633 billion, an increase of RMB 160 million or 2.9% from RMB 5.473 billion in the previous year, with significant growth in the marine segment[60] Market Performance - New effective orders increased by 20.99%, marking the highest level in nearly 8 years[9] - The company signed sales agreements for intelligent drilling machines exceeding RMB 1.5 billion, solidifying its leading position in the global high-end market[9] - New orders for offshore wind power jacket structures exceeded RMB 1.238 billion, with 55 large jacket orders signed[9] - Revenue from the Chinese market was RMB 2,618.1 million, up 18.5% year-on-year, accounting for 46.5% of total revenue[20] - Revenue from overseas markets was RMB 3,015.3 million, down 7.6% year-on-year, making up 53.5% of total revenue[20] - Revenue from the marine segment grew by 100.6% year-on-year, contributing 15.3% to total revenue[23] - The fracturing service business saw a significant increase in revenue by 56.8% year-on-year, with new orders up 118.05%[25] - The company secured over RMB 1.238 billion in new orders for offshore wind power jackets, including 55 large jacket orders, expanding into new regional markets[43] Cost and Financing - Financing costs decreased from 4.12% to 3.08%, with interest expenses down by approximately RMB 60 million[10] - The company’s debt decreased by approximately 5.87% to RMB 4.241 billion[10] - The company’s financing costs decreased by RMB 46 million or 26.1% to RMB 130 million, due to optimized financing structure[63] Research and Development - The company obtained 138 authorized patents and participated in the formulation of 20 standards, marking the highest achievements in the past four years[26] - The company plans to maintain a research and development investment intensity of about 5% to enhance technological innovation and support high-end, intelligent, and green development[55] - Research and development expenses for the year were approximately RMB 150 million, an increase of RMB 38 million or 33.9% compared to RMB 112 million in the same period last year, reflecting the company's commitment to automation and digitalization[63] Corporate Governance - The company has a strong board with members holding significant experience in various sectors, including energy and management, enhancing strategic decision-making capabilities[82][83][86][87] - The company emphasizes high-quality corporate governance to enhance shareholder value and protect shareholder rights[93] - The board consists of eight members, including three executive directors, two non-executive directors, and three independent non-executive directors[102] - The company has adopted a set of securities trading rules for directors that are at least as stringent as the standard rules outlined in the listing regulations[96] - The company has maintained compliance with the corporate governance code, except for one instance where the chairman was unable to attend the annual general meeting[94] Risk Management - The company has established a risk management framework based on a "three lines of defense" model to ensure effective internal controls and risk management[149] - The board is responsible for evaluating and determining the nature and extent of risks the company is willing to take to achieve its strategic objectives[145] - The company has strengthened its risk management system, achieving key results such as optimizing the risk assessment process and implementing risk management measures, with regular reports to the board and audit committee[154] Employee and Board Diversity - The current gender ratio in the board is 88% male and 12% female, with a total of 7 male and 1 female director[114] - Senior management also reflects the same gender ratio as the board, with 88% male and 12% female[114] - The total employee gender ratio is 80% male and 20% female, comprising 2,350 employees in total[114] - The company emphasizes equal employment opportunities and supports gender pay equality, ensuring no discrimination in hiring practices[115] Shareholder Communication - The company has established multiple communication channels to maintain ongoing dialogue with shareholders, including annual general meetings and various investor relations platforms[178] - The board of directors believes that the shareholder communication policy has been effectively implemented during the fiscal year, facilitating understanding and participation in company operations[178] - The company encourages shareholders to participate in meetings or appoint proxies to vote, ensuring transparency in decision-making processes[175]

Core Viewpoint - Honghua Group (0196.HK) reported a significant improvement in its 2024 annual performance, with both revenue and net profit increasing, while focusing on new directions in deep-sea and deep-earth development [3][10]. Financial Performance - The company achieved a total revenue of 5.633 billion RMB, representing a year-on-year growth of 2.9% [3]. - The net profit attributable to shareholders turned positive at 0.08 billion RMB, a substantial increase of 394% compared to the previous year [3]. - Gross margin improved to 12.0%, up by 2.1 percentage points year-on-year [3]. - Operating cash flow showed significant improvement with a net inflow of 0.678 billion RMB, a year-on-year increase of 993.55% [3]. Business Segments Land Drilling and Components - Revenue from land drilling rigs and components was 1.951 billion RMB, a decline of 17.1% year-on-year, but overseas markets, particularly the Middle East, contributed over 69.7% of revenue [4]. - New orders for complete land drilling rigs totaled 13 sets, with a total new order value increasing by 37.8% year-on-year [4]. - Component business revenue reached 1.662 billion RMB, with the company's mud pump products ranking third globally [4]. Fracturing Business - The fracturing equipment and services segment saw remarkable growth, with revenue of 0.823 billion RMB, a year-on-year increase of 56.8% [5]. - New orders amounted to 0.574 billion RMB, reflecting a growth of 118.1% year-on-year [5]. Drilling Engineering Services - Revenue from drilling engineering services was 0.337 billion RMB, down 15.0% year-on-year due to a reduction in domestic drilling activities [6]. - The overseas business accounted for 89.4% of total revenue, with new effective orders reaching 0.506 billion RMB [6]. Marine Segment - The marine business experienced explosive growth, with revenue of 0.860 billion RMB, a year-on-year increase of 100.6% [7]. - New orders for offshore wind power jacket foundations totaled 1.238 billion RMB, up 44.9% year-on-year [7]. Financial Structure and R&D Investment - The company benefited from reduced financing costs, with interest expenses decreasing by approximately 60 million RMB, and financing costs down by 1.04 percentage points to 3.08% [9]. - R&D investment reached 0.257 billion RMB, a year-on-year increase of 13.47% [9]. - The asset-liability ratio improved to 69.3%, with accounts receivable decreasing by 17.2% [9]. Strategic Focus - Honghua Group will continue to implement its "Equipment + Service + Diversification" strategy, focusing on land drilling rigs, components, and drilling engineering services while reshaping its fracturing equipment and services segment [10]. - The company aims to enhance its deep-sea and deep-earth business, leveraging national energy strategies and advancing domestic production of deep-sea exploration and marine drilling equipment [10].

Financial Performance - For the year ended December 31, 2024, the company reported revenue of RMB 5,633,410 thousand, representing a 2.9% increase from RMB 5,473,234 thousand in 2023[3]. - Gross profit for the year was RMB 676,504 thousand, a significant increase of 24.9% compared to RMB 541,773 thousand in the previous year, resulting in a gross margin of 12.0%, up 2.1 percentage points from 9.9%[3]. - The company achieved an operating profit of RMB 148,179 thousand, a turnaround from an operating loss of RMB 199,862 thousand in 2023[3]. - Net profit attributable to shareholders was RMB 7,576 thousand, compared to a loss of RMB 386,597 thousand in the previous year, with basic and diluted earnings per share of RMB 0.08, recovering from a loss of RMB 5.54[3]. - The company reported a total comprehensive income of RMB 82,827 thousand for the year, compared to a loss of RMB 426,847 thousand in 2023[7]. - The company reported a profit of RMB 39,823,000 for the year ended December 31, 2024, compared to a loss of RMB 411,006,000 in 2023, indicating a significant turnaround in performance[20]. - Basic and diluted loss per share for 2024 was RMB 0.08, a recovery from a loss of RMB 5.54 per share in 2023[36]. Revenue Breakdown - Total revenue for the year ended December 31, 2024, was RMB 7,016,627 thousand, an increase from RMB 6,982,379 thousand in 2023, representing a growth of approximately 0.49%[18]. - Revenue from external customers amounted to RMB 5,633,410 thousand for 2024, compared to RMB 5,473,234 thousand in 2023, indicating an increase of about 2.92%[18]. - The land drilling segment generated revenue of RMB 2,034,969 thousand in 2024, down from RMB 2,631,142 thousand in 2023, reflecting a decrease of approximately 22.7%[18]. - The marine segment's revenue increased to RMB 1,048,753 thousand in 2024 from RMB 549,937 thousand in 2023, marking a significant growth of approximately 90.7%[18]. - Revenue from land drilling rigs decreased to RMB 1,951,318,000 in 2024 from RMB 2,354,279,000 in 2023, while revenue from fracturing services increased to RMB 823,138,000 from RMB 524,807,000[20]. - Revenue from external customers in China increased to RMB 2,618,076,000 in 2024 from RMB 2,210,059,000 in 2023, demonstrating strong domestic demand[21]. - Revenue from components and other businesses reached RMB 1,662.2 million, accounting for 29.5% of total revenue[74]. Expenses and Costs - Research and development expenses increased to RMB 150,457 thousand from RMB 112,415 thousand, indicating a focus on innovation and product development[6]. - Depreciation and amortization expenses totaled RMB 322,333 thousand in 2024, compared to RMB 309,119 thousand in 2023, reflecting an increase of approximately 4.3%[18]. - The total income tax expense for 2024 was RMB 35,087,000, a significant increase from RMB 8,259,000 in 2023[32]. - Inventory costs recognized as expenses amounted to approximately RMB 3,085,181,000 in 2024, compared to RMB 2,912,934,000 in 2023, indicating an increase of around 5.9%[44]. Assets and Liabilities - Total assets decreased to RMB 11,928,201 thousand from RMB 12,519,539 thousand, while total liabilities also decreased to RMB 8,263,612 thousand from RMB 8,937,777 thousand[9]. - The company’s non-current assets decreased to RMB 4,294,609 thousand from RMB 4,453,314 thousand, primarily due to changes in property, plant, and equipment[8]. - The total liabilities of the group as of December 31, 2024, were approximately RMB 8.264 billion, with a debt-to-asset ratio of 69.3%, a decrease of 2.1 percentage points from the previous year[107]. - The total equity of the group as of December 31, 2024, was approximately RMB 3.665 billion, an increase of RMB 83 million from the previous year, with basic and diluted earnings per share both at RMB 0.08[108]. Cash Flow and Financing - Cash and cash equivalents increased slightly to RMB 790,586 thousand from RMB 777,660 thousand, reflecting improved liquidity[9]. - The company achieved a net gain from foreign exchange of RMB 31,836,000 in 2024, up from RMB 13,322,000 in 2023, contributing positively to overall financial performance[30]. - The company signed loan agreements with Dongfang Electric Finance for operational funding totaling RMB 160 million and RMB 100 million at a fixed interest rate of 2.4%[51]. - The company repaid RMB 301,710,000 of outstanding loans in July 2024, including repayments to various banks[50]. Strategic Initiatives and Future Outlook - The company plans to continue expanding its marine segment, which has reached a quantitative threshold and is now reported as a separate division[14]. - The company is advancing the development of deep-sea and floating wind power products in collaboration with various research institutions[82]. - The company anticipates a compound annual growth rate of 20.5% in offshore wind power installations globally from 2024 to 2033[81]. - 2025 is positioned as a significant year for the company to enhance management and drive high-quality development[89].