Summary of the Conference Call for Jinggong Steel Structure Company Overview - **Company**: Jinggong Steel Structure - **Industry**: Steel construction and engineering Key Financial Performance - **Revenue**: 9.9 billion yuan in H1 2025, up 29.48% year-on-year [2] - **Profit**: Increased by nearly 30% [2] - **Operating Cash Flow**: Grew by 90% [2] - **Expense Ratios**: Declined, indicating improved operational efficiency [2][12] Order and Market Dynamics - **Total Orders**: 12.51 billion yuan in H1 2025, a 2.2% increase year-on-year [4] - **Domestic Orders**: 8.85 billion yuan, down 14.5% year-on-year [4] - **International Orders**: 3.66 billion yuan, up 94% year-on-year [4] - **International Orders Composition**: 50% from landmark projects, primarily in the Middle East and Australia/New Zealand [6][15] - **Domestic Market Strategy**: Focus on high-quality orders, with a strategic decline in government project participation [2][23] Strategic Initiatives - **International Expansion**: Full overseas strategy and localization development to capture international market share [2][8] - **Partnerships**: Collaborations with regional partners supported by JD.com for local marketing and operational capabilities [2][8] - **Process Management**: Adoption of Huawei's process management system to enhance operational efficiency and delivery capabilities [9][10] Competitive Advantages - **Technological Innovation**: Use of modular construction techniques to reduce project timelines and improve efficiency [3][14] - **Client Base**: Strong relationships with Fortune 500 companies and leading enterprises in emerging sectors like renewable energy and food consumption [5][15] - **Quality Certifications**: High-level certifications (US, EU, Japan standards) enhance competitiveness in international markets [14] Cash Flow and Receivables Management - **Improved Cash Flow**: Driven by enhanced receivables collection and a focus on high-quality orders [22] - **"Frog Action" Initiative**: Launched to accelerate contract asset turnover and reduce long-term receivables [10][22] Market Outlook and Challenges - **Domestic Market Pressure**: Facing challenges but focusing on high-quality projects rather than volume [23][24] - **International Market Growth**: Anticipated to contribute significantly to future revenue, with smoother payment processes compared to domestic projects [24] - **Cautious Economic Outlook**: Maintaining a conservative view on the Chinese economy and construction market while aiming for steady, high-quality growth [30] Future Goals - **Target for International Business**: Aim for a 50% share of total business from international markets within 3 to 5 years [29] - **Stock Valuation**: Company shares perceived as undervalued, with a net asset value of approximately 0.8 times [30]

Investment Rating - The report maintains a "Recommended" rating for the company [5]. Core Views - The company has shown significant growth in performance, with a 47% year-on-year increase in steel structure sales and a 29.48% increase in revenue for the first half of 2025 [5]. - The company achieved a net profit of 3.5 billion yuan, reflecting a 28.06% year-on-year growth, alongside a notable improvement in operating cash flow [5]. - New orders have increased, particularly in international contracts, which saw a substantial growth of 94.1% year-on-year, surpassing the total overseas order volume for 2024 [5]. Financial Forecast Summary - Revenue is projected to grow from 184.92 billion yuan in 2024 to 246 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 12.33% [2][7]. - The net profit forecast for 2025-2027 is 5.92 billion yuan, 6.98 billion yuan, and 8.37 billion yuan, respectively, indicating growth rates of 15.7%, 17.85%, and 19.98% [5][7]. - The company's gross margin is expected to slightly decline from 12.66% in 2024 to 11.52% in 2027, while the net margin is projected to improve from 2.77% to 3.40% over the same period [7]. Key Financial Metrics - The company reported a gross margin of 10.59% for the first half of 2025, down 2.26 percentage points year-on-year, while the net margin was 3.57% [5]. - The company's asset-liability ratio stands at 64.03%, reflecting a slight increase of 0.79 percentage points year-on-year [5]. - The earnings per share (EPS) is projected to increase from 0.26 yuan in 2024 to 0.42 yuan in 2027 [2][7].

Group 1 - Jinggong Steel Structure (600496.SH) reported its 2025 semi-annual results, with 13 institutional investors holding a total of 762 million shares, representing 38.28% of the total share capital [1] - The top ten institutional investors collectively hold 38.26% of the shares, with a 1.20 percentage point increase compared to the previous quarter [1] Group 2 - In the public fund sector, three funds reduced their holdings, accounting for a decrease of 0.13% compared to the previous quarter [2] - Three new public funds were disclosed this period, while 11 funds were no longer reported, indicating a shift in investment strategies [2] - The foreign investment landscape saw the absence of Hong Kong Central Clearing Limited in the current disclosures compared to the previous quarter [2]

Investment Rating - The report maintains a "Recommended" rating for the company [5]. Core Views - The company has shown significant growth in performance, with a 47% year-on-year increase in steel structure sales and a 29.48% increase in revenue for the first half of 2025 [5]. - The company achieved a net profit of 3.5 billion yuan, reflecting a 28.06% year-on-year growth, alongside a notable improvement in operating cash flow [5]. - New orders have increased, particularly in international contracts, which saw a substantial growth of 94.1% year-on-year [5]. Financial Forecast Summary - Revenue is projected to grow from 184.92 billion yuan in 2024 to 246 billion yuan in 2027, with growth rates of 12.03%, 8.15%, 9.50%, and 12.33% respectively [2][7]. - The net profit attributable to the parent company is expected to rise from 5.12 billion yuan in 2024 to 8.37 billion yuan in 2027, with growth rates of 15.7%, 17.85%, and 19.98% [2][7]. - The company's gross margin is forecasted to decline slightly from 12.66% in 2024 to 11.52% in 2027, while the diluted EPS is expected to increase from 0.26 yuan to 0.42 yuan over the same period [2][7]. Order and Market Performance - The company signed new orders worth 125.1 billion yuan in the first half of 2025, marking a 2.2% year-on-year increase, with international contracts exceeding the total for 2024 [5]. - The customer structure indicates that 30.3% of domestic orders are public building projects, while 69.7% are industrial buildings, with international contracts primarily focused on landmark and industrial buildings [5].

Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative return of over 20% within the next six months [7][18]. Core Views - The company has demonstrated strong revenue and profit growth, with a 29.48% year-on-year increase in revenue to CNY 9.911 billion and a 28.06% increase in net profit to CNY 350 million in H1 2025 [1][4]. - The company is experiencing significant growth in international orders, with a 94% increase year-on-year, contributing to an overall improvement in order quality [2][4]. - The company is actively expanding its chain franchise business, which is a key component of its "Five-Five Strategy," with eight joint ventures established across various regions in China [1][4]. Financial Performance - In H1 2025, the company achieved a steel structure sales volume of 835,000 tons, a 47% increase year-on-year, with revenues from steel structure and integrated EPC businesses reaching CNY 9.150 billion and CNY 580 million, respectively [2]. - The gross profit margin for H1 2025 was 10.6%, a decrease of 2.25 percentage points year-on-year, while the net profit margin was 3.57%, down 0.05 percentage points [3]. - The company reported a cash flow from operations (CFO) of CNY 423 million, an increase of CNY 202 million year-on-year, indicating strong cash flow performance [3]. Future Outlook - The company is expected to continue its strong growth trajectory, with projected net profits of CNY 600 million, CNY 690 million, and CNY 786 million for the years 2025, 2026, and 2027, respectively [4]. - The report highlights the company's efforts in integrating AI technologies into its operations, which are anticipated to enhance efficiency and create new growth avenues [4].

Core Viewpoint - The company reported its mid-year financial results for 2025, showing a total revenue of 9.911 billion yuan and a net profit attributable to shareholders of 350 million yuan, indicating a stable financial performance amidst industry challenges [1][2]. Financial Performance - The company's total revenue for the first half of 2025 was 9.911 billion yuan [2]. - The net profit attributable to shareholders was 350 million yuan [2]. - The net cash inflow from operating activities was 423 million yuan [2]. - The diluted earnings per share were 0.18 yuan [5]. Financial Ratios - The latest debt-to-asset ratio was 64.03%, ranking 21st among disclosed peers, with an increase of 0.27 percentage points from the previous quarter and 0.79 percentage points from the same period last year [4]. - The latest gross profit margin was 10.59%, ranking 22nd among disclosed peers, with a decrease of 2.25 percentage points compared to the same period last year [4]. - The latest return on equity (ROE) was 3.83% [4]. - The total asset turnover ratio was 0.39 times [6]. - The inventory turnover ratio was 5.56 times [6]. Shareholder Information - The number of shareholders was 85,400, with the top ten shareholders holding 771 million shares, accounting for 38.75% of the total share capital [7].

Core Insights - The company reported a revenue of 9.911 billion yuan for the first half of 2025, representing a year-on-year increase of 29.48% [1] - The net profit attributable to shareholders of the listed company was 350 million yuan, showing a year-on-year growth of 28.06% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 302 million yuan, reflecting a year-on-year increase of 22.75% [1] - The basic earnings per share were 0.1769 yuan [1]

Core Insights - The company reported a revenue of 9.911 billion yuan for the first half of 2025, representing a year-on-year increase of 29.48% [1] - The net profit attributable to shareholders was 350 million yuan, up 28.06% year-on-year, while the net profit excluding non-recurring items was 302 million yuan, reflecting a 22.75% increase [1] - The basic earnings per share stood at 0.18 yuan, with a weighted average return on equity of 3.87% [1] Financial Performance - The gross margin for the first half of 2025 was 10.59%, a decrease of 2.25 percentage points year-on-year, while the net margin was 3.57%, down 0.05 percentage points compared to the same period last year [1] - In Q2 2025, the gross margin was 11.95%, showing a year-on-year decline of 2.09 percentage points but a quarter-on-quarter increase of 2.79 percentage points; the net margin was 4.53%, up 0.31 percentage points year-on-year and 1.98 percentage points quarter-on-quarter [1] Expense Analysis - The company's period expenses amounted to 737 million yuan, an increase of 20.7031 million yuan compared to the previous year, with a period expense ratio of 7.43%, down 1.92 percentage points year-on-year [2] - Sales expenses decreased by 7.53% year-on-year, while management expenses increased by 4.23%, R&D expenses rose by 7.75%, and financial expenses decreased by 25.38% [2] Business Overview - The company, founded on June 28, 1999, and listed on June 5, 2002, is located in Shanghai and specializes in the design, manufacturing, installation, and engineering services of steel structure buildings [2] - The revenue composition includes industrial buildings (60.92%), public buildings (27.29%), EPC (9.99%), and other segments [2] - The company is categorized under the construction decoration industry, specifically in the professional engineering and steel structure sector, and is associated with concepts such as undervalued stocks and new urbanization [2]

2、同意公司与北京城建精工钢结构工程有限公司开展与日常经营相关的交 易，该事项符合公司业务经营和发展的实际需要，属于正常的商业交易行为。上 述关联交易决策程序符合公司章程的规定，交易定价遵循了公平、公正、公开的 原则，不会损害公司及中小股东利益，公司主要业务不会因上述关联交易对关联 方形成依赖，不会影响公司独立性。 本独立董事将严格履行独立董事的职责，监督公司按照法律、法规和公司章 程的规定做好相关工作，切实保障公司及股东的利益。 长江精工钢结构（集团）股份有限公司 长江精工钢结构（集团）股份有限公司 长江精工钢结构（集团）股份有限公司 独立董事意见 本人作为长江精工钢结构（集团）股份有限公司（以下简称"公司"、"本公 司"）独立董事，根据《上市公司治理准则》《上海证券交易所股票上市规则》和 《公司章程》《公司独立董事工作制度》等有关规定，在认真审查了公司第九届 董事会第十七次会议《关于为所控制企业提供融资担保的议案》《关于新增日常 关联交易预计的公告》等相关资料，并听取有关说明后，现发表独立意见如下： 1、同意公司应所控制企业生产经营资金需求，为其融资提供担保。本次担 保是为了满足其日常经营和业务发展需要， ...

长江精工钢结构（集团）股份有限公司 第一条 为加强长江精工钢结构（集团）股份有限公司（以下简称"公司"） 市值管理，切实推动公司投资价值提升，增强投资者回报，维护投资者利益， 根据《中华人民共和国公司法》《中华人民共和国证券法》《上市公司信息披露 管理办法》《上市公司监管指引第 10 号——市值管理》等法律法规、规范性文 件和《公司章程》等规定，制定本制度。 第二条 本制度所称市值管理，是指以提高公司质量为基础，为提升公司投 资价值和股东回报能力而实施的战略管理行为。 第三条 市值管理的基本原则包括： （一） 合规性原则：公司开展市值管理工作应严格遵守相关法律法规、规 范性文件、自律监管规则以及《公司章程》等规章制度； （二） 系统性原则：公司应按照系统思维、整体推进的原则，协同各业务 体系以系统化方式持续开展市值管理工作； （三） 科学性原则：公司应依据市值管理的规律进行科学管理，科学研判 影响投资价值的关键性因素，以提升公司质量为基础开展市值管理工作； （四） 常态性原则：公司应及时关注资本市场及股价动态，常态化开展市 值管理工作； （五） 诚实守信原则：公司在市值管理活动中应注重诚信、坚守底线，营 造健 ...