Company Overview - Sensong International Holdings Limited aims to become a global leader in core equipment, process systems, and intelligent factory solutions [3] - The company's main business includes design, manufacturing, installation, and operation and maintenance services, focusing on core equipment and process systems for chemical, biological, and polymer reactions [3] Financial Performance - As of December 31, 2024, Sensong International reported total revenue of 6.948 billion yuan, a year-on-year decrease of 5.6% [2] - The net profit attributable to the parent company was 737 million yuan, down 12.72% year-on-year [2] - The gross profit margin stood at 29.5%, and the debt-to-asset ratio was 40.78% [2] Stock Performance - Over the past month, Sensong International has seen a cumulative increase of 25.95%, and a year-to-date increase of 117.59%, outperforming the Hang Seng Index by 25.97% [2] - The stock closed at 10.54 HKD per share, with a trading volume of 18.65 million shares and a turnover of 190 million HKD, showing a volatility of 14.16% [1][2] Industry Valuation - The average price-to-earnings (P/E) ratio for the industrial engineering sector (TTM) is 6.89 times, with a median of 3.08 times [2] - Sensong International's P/E ratio is 14.58 times, ranking 54th in the industry [2] - Comparatively, other companies in the sector have significantly lower P/E ratios, such as China Aerospace Wanyuan at 0.32 times and Yili Holdings at 0.39 times [2]

Core Viewpoint - The construction machinery industry in China is experiencing a recovery driven by domestic demand and stable export growth, with significant projects like the Yarlung Tsangpo River hydropower project expected to further boost equipment demand [1][2][3] Industry Summary - In July 2025, a total of 17,138 excavators were sold, marking a year-on-year increase of 25.2%, with domestic sales at 7,306 units (up 17.2%) and exports at 9,832 units (up 31.9%) [1] - From January to July 2025, 137,658 excavators were sold, reflecting a year-on-year growth of 17.8%, with domestic sales of 72,943 units (up 22.3%) and exports of 64,715 units (up 13%) [1] - The average working hours for major construction machinery products increased to 80.8 hours in July, a month-on-month growth of 4.58%, despite a decrease in the monthly operating rate to 56.2% [1] Project Impact - The Yarlung Tsangpo River hydropower project, with a total investment of approximately 1.2 trillion yuan, is expected to generate over 200 billion yuan in equipment demand, with engineering machinery and other equipment needs exceeding 100 billion yuan [2] - The project will likely drive demand for large, electric, and intelligent construction machinery due to the unique high-altitude working conditions, enhancing product structure optimization and profitability for manufacturers [2] Policy and Market Outlook - The Ministry of Industry and Information Technology aims for widespread application of digital technologies in the machinery industry by 2027, targeting a 50% maturity rate in intelligent manufacturing capabilities among enterprises [3] - Long-term prospects for construction machinery exports remain strong, particularly in regions along the Belt and Road Initiative, with Asia accounting for 43% of exports and significant growth in the Middle East market [3][4] Company Performance - Zoomlion achieved a revenue of 12.117 billion yuan in Q1 2025, a year-on-year increase of 2.92%, with a net profit of 1.41 billion yuan, up 53.98% [6] - Sany International reported a revenue of 5.876 billion yuan in Q1 2025, a 14.6% increase year-on-year, with a net profit of 635 million yuan, up 23.2% [6]

Core Insights - The Ministry of Industry and Information Technology and eight other departments issued the "Implementation Plan for Digital Transformation of the Machinery Industry," aiming for widespread application of digital technologies by 2027, with 50% of enterprises achieving a maturity level of at least two in intelligent manufacturing [1] - By 2030, the plan targets that major enterprises will complete a round of digital transformation, with 60% achieving a maturity level of at least two, and the establishment of at least 500 exemplary intelligent factories [1] - Wuhan Investment Holding Group signed a strategic cooperation agreement to establish a 10 billion yuan humanoid robot mother fund, indicating a strong push towards robotics and automation in the region [2] Industry Overview - Industrial digitalization aims to enhance production efficiency, quality, and flexibility while reducing costs and resource consumption, forming a key path for new industrialization [2] - The manufacturing sector is a significant application area for artificial intelligence, which is expected to accelerate technological innovation in the industrial sector [2] - Industrial software is characterized by vast potential, low penetration rates, low domestic production rates, and high technical barriers, indicating a deep industry moat and promising future [3] Company Highlights - Innovation Qizhi (02121) announced a technological upgrade for its AInnoGC industrial model, enhancing its reasoning capabilities while maintaining a deep understanding of industrial knowledge [4] - Sensong International (02155) aims to become a leading supplier of core equipment and smart factory solutions in the industrial sector, focusing on design, manufacturing, installation, and operation and maintenance services [4] - Zoomlion Heavy Industry Science and Technology Co., Ltd. (01157) is enhancing its global service strategy in the aerial work machinery sector through digital and intelligent service upgrades [5]

Group 1 - The Ministry of Industry and Information Technology and eight other departments issued a digital transformation implementation plan for the machinery industry, aiming for widespread application of digital technologies by 2027, with 50% of enterprises achieving a maturity level of at least two in intelligent manufacturing [1] - By 2030, the plan targets that major enterprises will complete a round of digital transformation, with 60% of enterprises achieving a maturity level of at least two in intelligent manufacturing and the establishment of at least 500 excellent intelligent factories [1] - Wuhan Investment Holding Group signed a strategic cooperation agreement to establish a humanoid robot mother fund with a total scale of 10 billion yuan [1] Group 2 - The Hubei Humanoid Robot Innovation Center was established to support industrialization, featuring facilities for motion training, data collection, practical applications, and talent cultivation [2] - Industrial digitalization aims to enhance production efficiency, quality, and flexibility while reducing costs and resource consumption, serving as a key path for new industrialization [2] - The manufacturing sector is a significant application area for artificial intelligence, which accelerates technological innovation in the industrial sector [2] Group 3 - Long-term prospects for industrial software are promising due to low penetration rates, low domestic production rates, and high technical barriers, indicating a deep industry moat and broad future [3] - The application of industrial large models in China is expanding from single processes to multiple scenarios across vertical industries, potentially reshaping the entire manufacturing value chain [3] Group 4 - Innovation Qizhi (02121) announced a technical upgrade for its AInnoGC industrial large model, enhancing its reasoning capabilities while maintaining a deep understanding of industrial knowledge [4] - Sensong International (02155) aims to become a leading supplier of core equipment and smart factory solutions in the industrial sector, focusing on design, manufacturing, installation, and operation [4] - Zoomlion (01157) is a leader in the aerial work machinery industry, enhancing its global service strategy through digital and intelligent service upgrades [5]

第 1 頁 共 10 頁 v 1.1.1 FF301 股份發行人及根據《上市規則》第十九B章上市的香港預託證券發行人的證券變動月報表 | 截至月份: | 2025年7月31日 | 狀態: 新提交 | | --- | --- | --- | | 致：香港交易及結算所有限公司 | | | | 公司名稱: | 森松國際控股有限公司 | | | 呈交日期: | 2025年8月1日 | | | I. 法定/註冊股本變動 不適用 | | | | 備註： | | | | 因森松國際控股有限公司("本公司")是於香港註冊成立的公司, "法定股本"之概念不適用於本公司。 | | | FF301 (A). 股份期權（根據發行人的股份期權計劃） 不適用 第 3 頁 共 10 頁 v 1.1.1 II. 已發行股份及/或庫存股份變動 | 1. 股份分類 | 普通股 | 股份類別 | 不適用 | | 於香港聯交所上市 (註1) | 是 | | | --- | --- | --- | --- | --- | --- | --- | --- | | 證券代號 (如上市) | 02155 | 說明 | | | | | | | | | 已發行 ...

Company News - China Carbon Neutrality (01372.HK) signed a strategic cooperation agreement with Beijing Zhonghong Lanhai to collaborate in carbon peak, carbon neutrality, and new energy sectors, with a total investment of approximately 10 billion RMB [2] - Conant Optical (02276.HK) expects a net profit increase of no less than 30% year-on-year for the first half of the year, driven by strong sales of high refractive index and functional products, leading to an increase in average selling prices [2] - Shandong Molong (00568.HK) anticipates a net profit of 10 million to 13 million RMB attributable to shareholders for the first half of 2025, representing a year-on-year decline of 92.36% to 94.12% [2] - China General Nuclear Power (01816.HK) reported a total on-grid electricity of approximately 113.36 billion kWh for the first six months, an increase of 6.93% year-on-year [2] - Dongfeng Motor Group (00489.HK) recorded cumulative vehicle sales of 824,000 units in the first half of the year, a year-on-year decrease of approximately 14.7% [2] Real Estate Sales - Agile Group (03383.HK) reported a total contract sales amount of approximately 5.17 billion RMB for the first half of the year, with June sales amounting to approximately 930 million RMB [4] - Hongyang Real Estate (01996.HK) achieved a cumulative contract sales amount of 2.87 billion RMB for the first half of the year [4] - Times China Holdings (01233.HK) reported a cumulative contract sales amount of approximately 2.87 billion RMB for the first half of the year [5] - Ronshine China (03301.HK) recorded a cumulative contract sales amount of approximately 2.1 billion RMB for the first half of the year [6] - Aoyuan Healthy Life (01813.HK) reported June contract sales of 653 million RMB, a year-on-year decrease of 34% [6] Share Buybacks and Acquisitions - Tencent Holdings (00700.HK) repurchased shares worth 501 million HKD, acquiring 1.002 million shares at prices ranging from 494.4 to 502 HKD [6] - AIA Group (01299.HK) repurchased shares worth 377 million HKD, acquiring 5.5 million shares at prices ranging from 68.05 to 69.15 HKD [6] - HSBC Holdings (00005.HK) repurchased shares for approximately 31.59 million HKD, acquiring 333,600 shares at prices ranging from 94.5 to 94.85 HKD [6] - Bosideng (03998.HK) canceled 5 million shares that had been repurchased [6] Other Financial Activities - Fudan Zhangjiang (01349.HK) subscribed to a structured deposit product from China Merchants Bank, involving an investment of 90 million RMB [7] - Sensong International (02155.HK) received a capital increase of 330 million RMB for its subsidiary Shanghai Sensong Pharmaceutical, along with a put option [7]

Group 1 - The company, Sensong International, announced a capital increase of RMB 330 million for its subsidiary, Shanghai Sensong Pharmaceutical Equipment Engineering Co., Ltd, which will raise the registered capital from RMB 86,309,407 to RMB 99,255,819 [1] - The investment parties include multiple funds, and they have been granted put options to sell their shares back to the company under certain conditions [1] - Following the completion of the subscription, the company's ownership in the target company will decrease from approximately 85.09% to about 73.99% [1] Group 2 - The target company primarily serves industries such as pharmaceuticals, biopharmaceuticals, medical aesthetics, and fast-moving consumer goods, providing core equipment, value-added services, and intelligent factory solutions [2] - The board believes that the transaction will provide funding to expand production capacity and develop upstream and downstream businesses, optimize governance structure, and enhance operational efficiency [2] - The transaction is expected to provide strategic and market resources for the target company's development [2]

Group 1 - Heavy machinery stocks have seen a general increase, with notable gains in companies such as Sany International (up 0.17% to HKD 5.77) and China National Heavy Duty Truck Group (up 1.38% to HKD 19.1) [1] - In Q1 2025, the domestic sales of excavators reached 36,562 units, marking a year-on-year increase of 38.3%, while total excavator sales from major manufacturers amounted to 61,372 units, up 22.8% year-on-year [1] - The average operating rate of construction machinery nationwide was reported at 44.67%, reflecting a year-on-year increase of 1.62%, with 12 provinces exceeding an average operating rate of 50% [1] Group 2 - The acceleration of major engineering projects across various regions is expected to enhance infrastructure investment in Q2, contributing positively to economic stability and growth [2] - Analysts from Huachuang Securities express optimism regarding domestic policy efforts to boost internal demand, suggesting that the engineering machinery sector is likely to benefit significantly [2]

Company Performance and Financials - The company achieved significant results despite a challenging global economic environment, showcasing resilience and strength[6]. - Total revenue for the fiscal year ending December 31, 2024, is reported at RMB 6,948,354 thousand, a decrease of 5.6% compared to RMB 7,360,262 thousand in 2023[38]. - Gross profit for the same period is RMB 2,049,777 thousand, slightly down from RMB 2,055,704 thousand in 2023, indicating a marginal decline of 0.3%[38]. - Profit before tax for 2024 is RMB 911,254 thousand, reflecting a decrease of 7.4% from RMB 984,334 thousand in 2023[38]. - Net profit attributable to equity shareholders for 2024 is RMB 737,241 thousand, down from RMB 844,684 thousand in 2023, representing a decline of 12.7%[38]. - Total assets as of December 31, 2024, stand at RMB 8,908,333 thousand, a slight decrease from RMB 8,932,076 thousand in 2023[38]. - Total liabilities decreased to RMB 3,632,477 thousand in 2024 from RMB 4,541,467 thousand in 2023, marking a reduction of 20.0%[38]. - Net asset value increased to RMB 5,275,856 thousand in 2024, up from RMB 4,390,609 thousand in 2023, indicating a growth of 20.2%[38]. - The company reported a significant increase in revenue from other segments, rising by 368.0% to approximately RMB 786.21 million in 2024[111]. - The company's total sales cost decreased by RMB 405,981 thousand, a decline of 7.7% from RMB 5,304,558 thousand in 2023 to RMB 4,898,577 thousand in 2024[113]. Strategic Initiatives and Market Positioning - The company emphasizes market diversification to mitigate risks associated with reliance on a single market or industry[7]. - The company aims to transform from a high-end equipment manufacturer to a global provider of integrated process engineering solutions, enhancing its international brand image and service capabilities[12]. - The company is actively advancing multiple projects with multinational giants in various industries, enhancing its market position in life sciences[9]. - The company is focusing on strategic collaborations with leading multinational corporations to continuously create value for global clients[10]. - The company is committed to expanding into higher value segments of the industry chain and standardizing products to strengthen its market presence[9]. - The company is transitioning from merely exporting cost advantages to creating technological and operational value for its customers[10]. - The company is concentrating resource allocation on international markets, providing long-term services to existing clients and developing potential new clients[88]. Innovation and Technology Development - Approximately 20% of resources are allocated to process and R&D, focusing on new technology development and product innovation in collaboration with downstream customers[8]. - The company is focusing on innovation and technology upgrades in collaboration with clients, particularly in the fields of advanced materials and chemical synthesis[55]. - The company has initiated the launch of single-use bioreactors and high-efficiency microchannel reactors, targeting various application scenarios in pharmaceuticals and fine chemicals[50]. - The company is set to establish a new benchmark in intelligent manufacturing amidst the wave of digitalization and intelligence[12]. - The company is leveraging AI platforms to optimize design speed and quality, improve engineering solutions, and enhance production management through data-driven processes[11]. Sustainability and Environmental Commitment - The company has made substantial progress in green energy, sustainable food, and non-metal material synthesis, aligning with global trends towards healthier and more sustainable living[9]. - The company is committed to providing sustainable solutions, including renewable energy production technologies and biodegradable materials, aligning with global sustainability goals[69]. - The company is committed to sustainable development, focusing on industries such as oil refining, chemicals, and biopharmaceuticals[46]. Leadership and Governance - The board includes independent directors with extensive experience in corporate governance and financial oversight, enhancing strategic planning[23][25]. - The leadership team is well-educated, with advanced degrees from prestigious institutions, ensuring informed decision-making[21][27]. - The management team emphasizes the importance of maintaining compliance and financial risk management as part of its strategic initiatives moving forward[35]. - The management discussion and analysis section of the annual report provides insights into the company's business review and future development plans[154]. Shareholder Value and Capital Management - The company is committed to maximizing shareholder value through annual dividends and share buybacks, reinforcing shareholder confidence[12]. - The company completed a placement of 80,000,000 shares at a price of HKD 8.30 per share, raising approximately HKD 654.7 million net of expenses[145]. - The net proceeds from the placement will primarily be used for capital investments in manufacturing facilities in Suzhou, China, and Malaysia, as well as for expanding into the European market[145]. - The company plans to implement a stock incentive plan, which will involve an increase in registered capital by approximately RMB 12.87 million, representing about 14.91% of the total capital post-increase[148]. Market Trends and Industry Insights - The global consumption market demand has declined significantly, particularly in the major markets of China and the US, leading to a slowdown in investment and consumption rhythms across various industries[87]. - The global clean energy sector is experiencing a strategic opportunity period, with a consensus on increasing the share of clean energy in energy development[89]. - By 2050, global hydrogen demand is projected to reach approximately 528 million tons, with over 30% used for ammonia synthesis and fuel[91]. - The demand for sustainable aviation fuel (SAF) is expected to rise significantly, with estimates of 1.8 million tons by 2030 and 35 million tons by 2050, accounting for about 65% of total fuel demand[93]. Employee and Compensation Structure - The employee count stands at approximately 4,565, with nearly 500 in R&D, accounting for over 10% of total employees[178]. - The company has a comprehensive compensation and benefits system to attract and retain high-quality employees, ensuring competitive market salaries[178]. - The annual remuneration for five executive directors will be adjusted to RMB 158,400 starting July 2024, while four non-executive directors will receive RMB 198,000[162].

Summary of Conference Call Records Company and Industry Overview - The conference call discusses a company involved in various sectors including energy materials, green energy, and semiconductor chemicals, indicating a diversified business model across multiple industries [1][3][4][16]. Key Points and Arguments 1. **Profit Decline and Order Trends**: - The adjusted net profit is expected to decline by 2.3% from 2023 to 2024 due to increased net profit margins and income tax, alongside new factories entering the depreciation phase [1]. - A noticeable drop in orders, approximately 20%, has been observed in the lithium battery sector, attributed to a sustained demand decline across multiple markets [1][2]. 2. **Order Backlog and Financial Goals**: - The company reported an order backlog of approximately 84 billion as of March 27, 2024, with a goal to return to revenue and profit growth [2]. - The dividend per share has increased from 0.1 billion to 0.15 billion, reflecting improved financial performance [2]. 3. **Strategic Focus**: - The company emphasizes resilience in development, diversification in downstream industries, and continuous evolution of products and technologies [3]. - A dual strategy is highlighted: the α strategy focuses on sustained growth, while the β strategy is dynamic, allowing for tactical responses to market demands [3]. 4. **Sector-Specific Insights**: - The energy materials sector is witnessing a recovery, particularly in lithium, oil, and hydrogen energy, with significant opportunities in overseas markets [4][5]. - The green energy sector, especially green methanol, is gaining traction, with increasing interest from investors and clients [6][7]. 5. **International Market Dynamics**: - The overseas photovoltaic market is expanding, particularly in regions like India and the Middle East, where the company is actively engaging with clients [7][24]. - The semiconductor chemicals sector is also highlighted, with a focus on providing high-quality materials and equipment to major players like TSMC [16][17]. 6. **Future Outlook**: - The company expresses confidence in a recovery in 2025, with substantial groundwork laid in 2024 to facilitate this rebound [8][18]. - The management anticipates that many of the current design orders will transition into construction orders, contributing to future revenue [41][42]. Additional Important Content - The company is adapting to changes in order placement, moving from bundled orders to more segmented approaches, which may impact revenue recognition in the short term [35][36]. - There is a strong emphasis on maintaining relationships with top-tier clients and enhancing profit margins through strategic project management and design services [21][22]. - The management acknowledges the challenges posed by geopolitical factors and tariffs but remains optimistic about leveraging existing production capabilities to maintain competitiveness [59][60]. This summary encapsulates the key insights and strategic directions discussed during the conference call, providing a comprehensive overview of the company's current status and future prospects.