Core Viewpoint - The recent appointment of Fu Fenghua, former Vice General Manager and CFO of Hangke Technology, to Yushu Technology signals a strategic move as the company prepares for its IPO, aiming to become the first A-share "foot robot" company by Q4 2025 [2] Group 1: Company Developments - Fu Fenghua has officially joined Yushu Technology to oversee IPO-related matters, marking a significant addition to the company's leadership team [2] - Yushu Technology is currently in a critical Pre-IPO phase, having completed counseling registration with the Zhejiang Securities Regulatory Bureau in July and initial listing counseling in October [2] - The company has restructured to become "Yushu Technology Co., Ltd." as part of its preparation for the IPO [2] Group 2: Leadership Changes - Fu Fenghua, aged 38, has a background in auditing and finance, having worked at Tianjian Accounting Firm before joining Hangke Technology in 2018 [2] - The founder of Yushu Technology, Wang Xingxing, has been appointed as a member of the Shanghai Stock Exchange Technology Innovation Advisory Committee, indicating a strong commitment to entering the capital market [2] - Yushu Technology has also strengthened its financial and governance structure by appointing Wang Feng, former financial manager of Minshi Group, as the new financial head, while Wang Xingxing has stepped down as CFO [2]

Summary of Zhejiang Hangke Technology 3Q25 Earnings Call Company Overview - **Company**: Zhejiang Hangke Technology - **Ticker**: 688006.SS - **Industry**: China Industrials - **Market Cap**: Rmb20,501 million - **Current Stock Price**: Rmb33.96 - **Price Target**: Rmb50.00, implying a 47% upside Key Industry Insights - **Demand Trends**: Strong demand for Energy Storage Systems (ESS) is expected in 2025, with a positive outlook for 2026 global demand [1][2] - **Order Composition**: For the first nine months of 2025, new orders ranged from Rmb3.3 billion to Rmb3.5 billion, with over 60% from domestic clients and significant orders from overseas clients, particularly in Korea and Japan [2][3] - **Future Orders**: Anticipated that 1H26 orders will be driven mainly by overseas demand, especially for prismatic and large cylindrical cells [3] Financial Performance - **Revenue**: 3Q25 revenue decreased by 4% year-over-year, attributed to a high base effect [8] - **Gross Profit Margin (GPM)**: Increased by 10 percentage points year-over-year due to product mix [8] - **Net Profit (NP)**: Fell by 8% year-over-year, impacted by foreign exchange and impairment losses [8] Management Outlook - **Capex Cycle**: Management expects the current capex cycle, primarily driven by ESS, to be shorter and more volatile, with a slowdown in ESS orders anticipated in 2H26 [4][8] - **Export Controls**: China's export controls on lithium battery (LiB) equipment may extend approval times, but Hangke's Korean plant mitigates export risks [3][8] - **Market Potential**: High market potential identified in overseas regions such as Europe, Southeast Asia, and Latin America [8] Valuation and Risks - **Valuation Methodology**: A market cap-to-new order multiple of 4x is applied to 2026 estimated new orders of approximately Rmb7.5 billion, aligning with historical trading multiples [9] - **Risks to Upside**: Higher-than-expected overseas demand, better procurement by Chinese OEMs, and cost reductions from new technologies [11] - **Risks to Downside**: Potential for higher export tariffs, slower technology development, and increasing bad debt if supply exceeds demand [11] Conclusion Zhejiang Hangke Technology is positioned to benefit from strong domestic and international demand for energy storage solutions, despite facing challenges such as foreign exchange impacts and potential export control delays. The company's strategic focus on overseas expansion and new technologies may provide growth opportunities in the coming years.

Summary of Hangke Technology Conference Call Company Overview - **Company**: Hangke Technology - **Period**: First three quarters of 2025 - **Revenue**: 2.721 billion CNY, up 1.87% year-on-year [2][3] - **Net Profit**: 386 million CNY, up 2.59% year-on-year [2][3] - **Operating Cash Flow**: 444 million CNY, up 89.68% year-on-year [2][3] - **Gross Margin**: 28.8%, with Q3 gross margin exceeding 40% [2][3] Industry Insights - **Market Demand**: The lithium battery industry is experiencing a recovery phase, with significant demand in the energy storage sector [3][15]. - **New Orders**: New signed and pending orders for 2025 are approximately 3.3 to 3.5 billion CNY, with over 60% from domestic clients [2][4]. - **Key Clients**: Major domestic clients include Yiwei Lithium Energy, Guoxuan High-Tech, and BYD; overseas clients include LG, Samsung, and Toyota [2][4]. Q4 Order Expectations - **Energy Storage Focus**: Q4 orders are primarily expected from the energy storage sector, with significant bids from traditional clients and new opportunities from companies like C [5][6]. - **Production Lines**: Over 200 production lines are expected to be tendered in Hubei for energy storage batteries, focusing on capacities greater than 500 Ah [5][6]. Technological Developments - **Solid-State Battery**: The company is focusing on solid-state battery technology, particularly in isostatic pressing, with plans to develop a 500-ton high-pressure fixture machine [8][9]. - **Collaboration**: Partnerships with material suppliers like Dangsheng Technology are ongoing to address solid-solid interface issues [9]. Impact of Export Controls - **Short-Term Effects**: Export controls have caused some short-term disruptions in revenue and order delays [10]. - **Long-Term Benefits**: The company’s production capacity in Korea positions it as a key supplier for Japanese and Korean clients expanding into the European and American markets [10]. Market Trends - **Lithium Battery Industry Adjustments**: The industry has undergone adjustments since 2021, with major manufacturers restarting capital expenditures and expanding production in 2025 [14][15]. - **Future Demand**: The demand for energy storage batteries is expected to exceed that of electric vehicles, driven by rigid electricity needs [15]. Financial Health - **Cash Flow**: The company reported a negative operating cash flow in Q3 due to timing mismatches in customer payments, but overall cash flow remains healthy [21]. - **Personnel Stability**: The workforce has increased to over 4,000, indicating stable operations [22]. Currency Impact - **Exchange Rate Effects**: Currency fluctuations have caused minor losses in Q3, but the overall impact is considered manageable [23]. Conclusion - **Future Outlook**: The company is optimistic about future orders, particularly in the energy storage sector, and is well-positioned to leverage its technological advancements and production capabilities in both domestic and international markets [27][35].

Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 37.64 CNY [5]. Core Insights - The company is a leading domestic provider of post-processing lithium battery equipment, experiencing pressure on profits due to impairment losses in Q3 2025, while gross margins have significantly improved. The company has a robust order reserve and breakthroughs in the development of new products such as solid-state batteries, indicating promising growth potential in the future [2][11]. Financial Summary - Total revenue for 2023 is projected at 3,932 million CNY, with a year-on-year growth of 13.8%. However, a decline of 24.2% is expected in 2024, followed by a recovery with 16.0% growth in 2025, reaching 3,458 million CNY. Net profit attributable to the parent company is forecasted to be 809 million CNY in 2023, with a significant drop of 59.7% in 2024, before rebounding to 505 million CNY in 2025 [4][13]. - The gross margin for Q1-Q3 2025 is reported at 28.82%, with a net margin of 14.17%. For Q3 2025 alone, the gross margin is 40.07%, reflecting a year-on-year increase of 10.01 percentage points [11]. Order and Product Development - As of Q3 2025, the company has sufficient orders, with inventory and contract liabilities at 25.84 billion CNY and 23.55 billion CNY, respectively, indicating a stable future performance. The company has launched a self-developed one-stop backend line management system and is developing production equipment compatible with solid-state and small steel shell batteries, enhancing its competitive edge in next-generation battery technology [11][12].

Group 1 - The STAR Market indices showed positive performance, with the STAR 50 Index rising by 1.2%, STAR 100 Index and STAR Composite Index both increasing by 0.9%, and the STAR Growth Index up by 0.8% [1] - The photovoltaic sector experienced a significant surge, with notable stocks such as Aters reaching the daily limit, and Trina Solar, Goodwe, and Airo Energy rising over 10%. Jinko Solar, Daqo Energy, and YN Energy also saw increases of over 7% [1] - The solid-state battery sector also performed well, with Xiamen Tungsten New Energy rising over 9%, Hangke Technology up over 8%, and Jiayuan Technology and Liyuanheng increasing by over 4% [1] Group 2 - Small innovative enterprises in the electronic and pharmaceutical sectors accounted for over 80% of the market, indicating a high concentration in these industries [5] - The STAR Composite Index ETF by E Fund tracks the STAR Composite Index, which encompasses all market securities on the STAR Market, focusing on core industries such as artificial intelligence, semiconductors, new energy, and innovative pharmaceuticals [7] - The STAR Growth 50 ETF tracks the STAR Growth Index, which consists of 50 stocks with high growth rates in revenue and net profit, highlighting a strong growth style with a significant representation from the electronic and pharmaceutical sectors [7]

Core Viewpoint - Former Secretary of the Board of Directors at Hangke Technology, Fu Fenghua, has joined Yushu Technology and will be responsible for the company's IPO-related matters [1] Group 1 - Fu Fenghua was born in 1988 and has held various positions including auditor, project manager, senior project manager at Tianjian Accounting Firm, and Vice General Manager, CFO, and Secretary of the Board at Hangke Technology [1]

Group 1 - The core viewpoint of the news is that Hangke Technology's stock has increased by 5.04%, reaching a price of 32.95 yuan per share, with a total market capitalization of 19.891 billion yuan [1] - Hangke Technology, established on November 21, 2011, specializes in the design, research and development, production, and sales of various rechargeable batteries, particularly lithium-ion battery production line post-processing systems [1] - The company's main business revenue composition includes 70.17% from charging and discharging equipment, 28.54% from other equipment, 0.83% from accessories, and 0.47% from other sources [1] Group 2 - From the perspective of fund holdings, Penghua Fund has one fund heavily invested in Hangke Technology, specifically the Penghua SSE Sci-Tech Innovation 100 ETF Linked A (019861), which holds 309 shares, unchanged from the previous period [2] - The fund has achieved a year-to-date return of 46.89%, ranking 892 out of 4216 in its category, and a one-year return of 44.5%, ranking 852 out of 3877 [2] - The fund manager, Su Junjie, has been in position for 7 years and 274 days, with the fund's total asset size at 24.924 billion yuan [3]

Investment Rating - The investment rating for the company is "Buy" [1] Core Views - The company has shown steady growth in the first three quarters of 2025, with a revenue of 2.721 billion yuan, representing a year-on-year increase of 1.9%. The net profit attributable to the parent company reached 386 million yuan, up 2.6% year-on-year [7] - The company has a strong order backlog and cash flow, with contract liabilities amounting to 2.355 billion yuan, a year-on-year increase of 13.6% [7] - The company is benefiting from both domestic and international market growth, with significant partnerships established with leading battery manufacturers such as CATL, BYD, and Tesla [7] Financial Summary - The total revenue forecast for 2023 is 3.932 billion yuan, with a projected growth of 27.32% in 2025 [1] - The net profit attributable to the parent company is expected to reach 584 million yuan in 2025, reflecting a growth rate of 78.96% [1] - The earnings per share (EPS) is projected to be 0.97 yuan in 2025, with a price-to-earnings (P/E) ratio of 33.68 [1][8]

Core Insights - Hangke Technology (688006.SH) reported its Q3 2025 results, revealing that 14 institutional investors hold a total of 173 million shares, accounting for 28.67% of the company's total equity [1] - The top ten institutional investors collectively hold 28.64% of the shares, with a decrease of 0.92 percentage points compared to the previous quarter [1] Institutional Holdings - The number of public funds that increased their holdings this period is three, including HSBC Jintrust Research Selected Mixed Fund, Yongying Shanghai Stock Exchange Science and Technology Innovation Board 100 Index Enhanced Fund A, and Green Carbon Neutrality Theme Mixed Fund A, with an increase ratio of 0.12% [2] - Four public funds decreased their holdings, including HSBC Jintrust Low Carbon Pioneer Stock A and HSBC Jintrust Dynamic Strategy Mixed A, with a decrease ratio of 1.00% [2] - Three new public funds were disclosed this period, including Yongying New Materials Selected Mixed Fund A, Nanhua Ruiying Mixed Fund A, and Science and Technology Innovation Enhanced ETF [2] - A total of 132 public funds were not disclosed this period, including Southern CSI 1000 ETF and Bank of China Innovation Power Stock [2] Social Security Fund and Foreign Investment - One social security fund, the National Social Security Fund 413 Combination, decreased its holdings by 0.11% compared to the previous quarter [2] - One foreign fund, Hong Kong Central Clearing Limited, increased its holdings by 0.55% this period [2]

Core Insights - The social security fund has disclosed its stock holdings for the third quarter, appearing in the top ten circulating shareholders of 20 stocks, with 9 new entries and 4 increases in holdings [1][2] Group 1: Stock Holdings - The total number of shares held by the social security fund in the 20 stocks is 68.2952 million, with a total market value of 4.237 billion yuan [1] - New entries include Sanyou Medical, Dongwei Technology, and Lexin Technology, with significant holdings [1] - The stocks with the highest number of social security fund shareholders include Yingxi Network, Nanwei Medical, Zhongwang Software, and Zhuoyi Information, with holdings of 7.934 million, 6.269 million, 3.809 million, and 2.337 million shares respectively [1] Group 2: Shareholding Ratios - The stock with the highest shareholding ratio by the social security fund is Haitai Xinguang, at 4.20%, followed by Nanwei Medical at 3.34% [2] - The largest number of shares held is in Yingxi Network, with 7.934 million shares, followed closely by Sanyou Medical and Nanwei Medical with 7.9145 million and 6.2692 million shares respectively [2] - The stocks with the highest market value held by the social security fund include Nanwei Medical, Lexin Technology, and Bochu Electronics, valued at 629 million, 598 million, and 542 million yuan respectively [2] Group 3: Performance Metrics - Among the stocks held by the social security fund, 15 reported year-on-year net profit growth in the first three quarters, with Sanyou Medical showing the highest increase of 623.19% [2] - Other notable net profit growth includes Shen Gong Co. and Xinxiang Micro, with increases of 158.93% and 138.88% respectively [2] - The social security fund's holdings are primarily concentrated in the electronics, computer, and power equipment industries, with 5, 4, and 3 stocks respectively [2] Group 4: Market Performance - The average decline of the stocks held by the social security fund since October is 3.32% [3] - The best-performing stock is Puyuan Precision, with a cumulative increase of 6.18%, followed by Maide Medical and Yingshi Innovation with increases of 4.89% and 4.22% respectively [3] - The stock with the largest decline is Lexin Technology, which has dropped by 13.80% [3]