Summary of Zhuhua Co. Conference Call Company and Industry Overview - **Company**: Zhuhua Co. (振华股份) - **Industry**: Chromium and Metal Alloys Key Points and Arguments 1. **Involvement in Xinjiang Shenhong Restructuring**: Zhuhua Co. is actively participating in the restructuring of Xinjiang Shenhong, aiming to enhance the integration of the entire industry chain from chromium ore to metallic chromium. Despite a reduction in production capacity to approximately 4,000 tons, Shenhong still possesses a production capacity of 20,000 tons of sodium dichromate, with advantages in electricity costs, smelting processes, and brand stability, which can be improved through moderate technological upgrades [2][4][20]. 2. **Growing Demand for Metallic Chromium**: The demand for metallic chromium is driven by the growth in high-temperature alloys and military applications. European high-temperature alloy manufacturers, such as AMG Advanced Metal Group, are expanding and sourcing chromium salts from Zhuhua Co. The revitalization of China's military industry is expected to sustain demand for metallic chromium, with optimistic mid-term prospects [2][5][7]. 3. **Market Share Strategy**: Zhuhua Co. prioritizes market share by increasing production capacity. In January and February 2025, the production capacity for metallic manganese nearly doubled to 700 tons per month, approaching short-term capacity limits. Future capacity expansion will rely on external development projects, such as Xinjiang Shenhuo [2][8][9]. 4. **Price Volatility of Metallic Chromium**: Current price fluctuations of metallic chromium are primarily influenced by market sentiment, with new demand expected to be delivered in the second half of the year. The company's goal is to achieve a production capacity that covers half of the domestic chromium compound market and a quarter of the global market [2][10][11]. 5. **Integration and Optimization Plans**: Zhuhua Co. plans to integrate Xinjiang Shenhong to leverage its resource advantages, optimize process configurations, and enhance environmental governance capabilities. This integration aims to improve overall cost and gross margin through sales empowerment [3][20]. 6. **Export Dynamics**: China exports a significant amount of metallic chromium to the Netherlands, primarily for transshipment trade, with some goods flowing to North America. In April 2025, Zhuhua Co. reported zero exports of metallic chromium, contrasting sharply with the previous year's monthly exports of 400 to 500 tons [3][17]. 7. **Impact of Military Revitalization**: The revitalization of China's military is expected to continuously boost demand for metals, with no significant reduction in investment anticipated in 2026 [7]. 8. **Cost Structure and Pricing Strategy**: The production cost of one ton of metallic chromium is complex, involving approximately 3.5 tons of sodium dichromate and additional costs for aluminum and labor. The company maintains a pricing strategy that ensures profitability in the chromium salt segment while achieving breakeven in the metallic segment [25][26]. 9. **Brand Strength in Overseas Markets**: Zhuhua Co. has a strong brand presence in East Asia, although its global sales network has not become irreplaceable due to reduced production capacity over the past five to six years. The company remains a leading brand in specific product segments, such as chromium trioxide [21][22]. 10. **Regulatory and Market Challenges**: The company faces challenges related to regulatory approvals for new projects, particularly in the context of environmental concerns associated with hexavalent chromium production. However, the company is optimistic about the progress of its Chongqing base relocation project [14][18]. Additional Important Insights - **Market Sentiment and Price Sensitivity**: The company emphasizes that market sentiment significantly influences price volatility, and it is crucial to monitor product structure and volume growth rather than daily price fluctuations [12][19]. - **Long-term Profitability**: The overall profitability from the entire industry chain remains high, with the potential for maintaining strong margins despite fluctuations in raw material prices [27][28].

Group 1 - The company, Zhenhua Co., has registered to participate in the bankruptcy reorganization of seven companies associated with Xinjiang Shenhong Group, initiating due diligence to determine the feasibility of an investment proposal [1][2] - Xinjiang Shenhong Group is recognized as one of the four domestic manufacturers with the capability to produce source chromium salts, which are widely acknowledged in the industry [2] - The company's involvement in this reorganization aligns with the industry's trend towards "large-scale, centralized, and cleaner" development, which is consistent with its strategic direction and overall interests [2] Group 2 - The company has submitted registration materials to the administrator and paid a registration deposit, signing a confidentiality agreement to commence due diligence on the seven companies [2] - The reorganization investment could enhance the company's business channels, increase market share, and improve the competitive landscape within the chromium salt industry [2] - The company acknowledges potential uncertainties regarding the approval of its reorganization investment proposal by the creditors' meeting and the court, as well as the overall implementation and effectiveness of the reorganization [2]

| 证券代码：603067 | 证券简称：振华股份 | | --- | --- | | 债券代码：113687 | 债券简称：振华转债 | | | 公告编号：2025-024 | 破产重整投资人公开招募并启动尽职调查 湖北振华化学股份有限公司 关于参与新疆沈宏集团股份有限公司等七家公司 的提示性公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 重要提示： 1、湖北振华化学股份有限公司（以下简称"公司"、"本公司"）已报名 参与新疆沈宏集团股份有限公司、吐鲁番中宏贸易有限公司、吐鲁番瑞德化轻有 限公司、吐鲁番沈宏金属工业有限责任公司、吐鲁番沈宏热电有限责任公司、吐 鲁番沈宏煤业有限责任公司及吐鲁番沈宏建筑安装有限公司（合称"7 家公司" 或者"标的公司"）破产重整投资人的招募，公司已启动尽职调查，后续将依据 尽职调查情况确定是否制定破产重整投资方案，破产重整投资方案需提交本公司 有权机构审议。尽职调查、本公司审议的结论尚具有不确定性。 2、本次标的公司破产重整投资人采取公开招募方式选取，若存在其他投资 人参与，公司能否 ...

| 证券代码：603067 | 证券简称：振华股份 | 公告编号：2025-023 | | --- | --- | --- | | 债券代码：113687 | 债券简称：振华转债 | | 湖北振华化学股份有限公司 2024年年度股东会决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 本次会议是否有否决议案：无 一、 会议召开和出席情况 (一)股东会召开的时间：2025 年 5 月 19 日 (二)股东会召开的地点：湖北省黄石市西塞山区黄石大道 668 号公司新办公楼五 楼会议室 (三)出席会议的普通股股东和恢复表决权的优先股股东及其持有股份情况： | 1、出席会议的股东和代理人人数 | 220 | | --- | --- | | 2、出席会议的股东所持有表决权的股份总数（股） | 231,675,000 | | 3、出席会议的股东所持有表决权股份数占公司有表决权股份总 | | | 数的比例（%） | 45.9369 | (四)表决方式是否符合《公司法》及《公司章程》的规定，大会主持情况等。 本次会议由董 ...

北京大成(武汉)律师事务所 关于湖北振华化学股份有限公司 2024 年年度股东会的 法 律 意 见 书 北京 1 事务 所 武汉市江岸区建设大道 718 号浙商大厦 10、11 楼（430015) 10/11F,Zheshang Tower No.718,Jianshe Avenue Jiang'an District 430015, Wuhan, China * 60 is Dontons' Preferred Law Firm in China 北京大成(武汉)律师事务所 关于湖北振华化学股份有限公司 2024 年年度股东会的法律意见书 致:湖北振华化学股份有限公司 根据《中华人民共和国证券法》（以下简称"《证券法》"）、《中华人民共和国公司 法》（以下简称"《公司法》"）和《上市公司股东会规则》（以下简称"《股东会规则》"） 等法律、法规和其他有关规范性文件的要求,北京大成(武汉)律师事务所(以下简称"本 所")接受湖北振华化学股份有限公司(以下简称"公司")的委托,指派律师参加公司 2024 年年度股东会(以下简称"本次股东会"）。 为出具本法律意见书,本所指派律师现场见证了本次股东会,查阅了公司提供 ...

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The demand for commercial jet engine materials is experiencing significant growth, leading to a revaluation of the chromium salt industry chain [3] - ATI's aerospace business is showing strong growth, driven by the demand for aircraft engines, which is expected to boost performance [4][5] - The MRO (Maintenance, Repair, and Overhaul) market for aircraft engines is becoming a new growth point for the industry, with strong demand anticipated [6] Financial Performance - As of May 16, 2025, the current stock price is 21.41 yuan, with a market capitalization of 10,898.20 million yuan [3] - In Q1 2025, ATI's revenue from the commercial jet engine sector grew by 33.8% year-on-year, with the HPMC department's revenue in the U.S. increasing by 31.45% [5][15] - The company expects to achieve revenues of 49.85 billion yuan, 59.54 billion yuan, and 66.63 billion yuan for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 7.11 billion yuan, 9.28 billion yuan, and 11.80 billion yuan [10][11] Market Trends - The MRO market is projected to grow at a rate of 40%-50%, with significant contributions from partnerships with major companies like Pratt & Whitney [6] - The global aerospace engine market is dominated by major players, with GE Aerospace and CFM International holding a combined market share of 69% [6] Production Capacity - The company anticipates an increase in chromium salt production capacity from approximately 260,000 tons to over 350,000 tons following the completion of its Chongqing base relocation and technological upgrades [11][20]

湖北振华化学股份有限公司 2024 年年度股东会会议资料 振华股份 2025 年 5 月 19 日 湖北振华化学股份有限公司 2024 年年度股东会会议须知 为维护全体股东的合法权益，确保公司股东会顺利召开，根据中国证券监督 管理委员会《上市公司股东大会规则》及《公司章程》等有关规定，特制定股东 会须知，望出席股东会的全体人员遵守执行。 一、本公司根据《公司法》《证券法》《上市公司股东大会规则》及《公司 章程》等有关规定，认真做好召开股东会的各项工作。 二、本公司证券部，具体负责大会有关程序方面的事宜。 三、为保证本次大会的严肃性和正常秩序，切实维护股东的合法权益，务必 请出席大会的股东或股东代理人（以下统称"股东"）及相关人员准时到达会场 签到确认参会资格。不在签到薄上登记签到，或会议正式开始后没有统计在会议 公布股权数之内的股东，可以参加会议，但不参加表决、质询和发言。 四、股东参加股东会，依法享有发言权、质询权、表决权等各项权利，并认 真履行其法定义务，不得侵犯其他股东的合法权益，不得扰乱大会的正常秩序。 五、股东有权就大会议案提出问题，主持人视会议具体情况安排股东发言。 股东发言应围绕本次大会所审议的 ...

Core Viewpoint - The company is expected to achieve record high production and sales of chromium salt products in 2024, with a positive outlook for 2025 regarding both volume and price increases in metallic chromium products, as well as further market share growth in the chromium salt sector [1]. Financial Performance - In 2024, the company is projected to achieve revenue of 4.067 billion yuan, a year-on-year increase of 9.95%, and a net profit attributable to shareholders of 473 million yuan, up 27.53% year-on-year [2]. - The company’s earnings per share (EPS) estimates for 2025 and 2026 have been raised to 1.4 yuan and 1.59 yuan respectively, with a new estimate for 2027 at 1.77 yuan [2]. - In Q1 2025, the company reported revenue of 1.02 billion yuan, a year-on-year increase of 7.59%, and a net profit of 117 million yuan, up 37.27% year-on-year [3]. Production and Market Position - The company is expected to produce approximately 260,000 tons of chromium salt products in 2024, with significant year-on-year growth in the sales of heavy chromium salts and chromium oxides [2]. - By the end of 2024, the company has become one of the top five global producers of metallic chromium, with a production capacity of around 7,650 tons [3]. - The company is focusing on high-purity metallic chromium and high-end chromium oxide products, while also expanding into new fields such as animal nutrition and advanced flame retardant materials [3]. Strategic Initiatives - The company is implementing an integrated business strategy across the entire chromium chemical industry chain, emphasizing domestic research and development of high-purity products [3]. - The first phase of the company's iron-chromium flow battery energy storage project has achieved stable operation, indicating a commitment to innovation in the energy sector [3].

Group 1: Zhongyan Dadi - Zhongyan Dadi provided insights on financial indicators for 2024 and Q1 2025, highlighting stable project progress in nuclear power, ports, and water conservancy sectors, with no order losses reported [1] - The company is involved in five nuclear power projects and has undertaken multiple port projects, with advancements in water conservancy and Belt and Road initiatives [1] - The core business gross margin in geotechnical engineering increased by 7 percentage points due to cost reduction, industry barriers, and technology premiums [1] - The company has a robust risk control mechanism, with no significant unrecoverable accounts receivable, and recognizes revenue and costs based on project progress [1] Group 2: Zhenhua Shares - Zhenhua Shares discussed the progress of the Chongqing base relocation and expansion, along with the supply and price transmission of metallic chromium [2] - The company reported that the relocation and expansion are on schedule, with new processes and devices already implemented at the old base [2] - The price of chromium oxide green has started to rise, while the front-end capacity migration in the chromium salt industry will take time [2] - The company is addressing overseas gross margin fluctuations due to export tax policies by expanding low-cost production [2] - The production of vanadium products is approximately 1,600 tons, with a sales strategy focused on limited sales [2]

Group 1 - The private equity firm Tongyuan Investment recently conducted research on the listed company Zhenhua Co., discussing various topics including the progress of the Chongqing base relocation and expansion, supply and demand of metallic chromium, price transmission, and strategies to cope with fluctuations in domestic and international profit margins [1] - Zhenhua Co. reported that the relocation and expansion of the Chongqing base is proceeding as planned, with new processes and facilities already implemented at the old base [1] - The price of chromium oxide green has started to rise, while the capacity migration in the upstream chromium salt industry will take a long time [1] Group 2 - The company indicated that fluctuations in overseas profit margins are due to the lack of export tax rebates, which has led to price disadvantages, and it is responding through low-cost expansion [1] - New processes can improve the conversion rate of chromium elements and reduce raw material consumption [1] - The expansion of metallic chromium is relatively easy but must consider environmental policies, while the expansion of chromium salts is limited by the approval of hexavalent chromium [1] Group 3 - By 2024, the proportion of products related to metallic chromium is expected to reach nearly 10%, with Q1 already exceeding 10% [1] - The production of vanadium products is approximately 1,600 tons, with a sales strategy of withholding supply [1] - The integration of qualified enterprises is seen as a necessary path, and the technical difficulty of expanding from sodium dichromate to metallurgical-grade chromium oxide green requires years of technical reserves and process exploration [1]