Summary of Huari Precision's Conference Call Company Overview - **Company**: Huari Precision - **Industry**: Tool manufacturing, specifically focusing on CNC cutting tools Key Points and Arguments Financial Performance - In the first three quarters, net profit increased by 1,041% year-on-year to 40 million yuan [2][3] - CNC blade revenue reached 203 million yuan, while overall tool revenue was 35 million yuan [2][3] - Comprehensive gross margin improved to 43.6%, up 11 percentage points year-on-year and 5 percentage points quarter-on-quarter [2][4] Market Demand and Growth - The company benefited from a recovery in downstream demand, enhanced product performance, and channel expansion [2][3] - Significant growth in distribution channels in automotive, general machinery, and mold industries, with direct sales in military, aerospace, wind power, engineering machinery, and 3C sectors showing notable increases [2][5] - Military and engineering machinery sectors experienced a doubling in growth [2][5] Raw Material Price Impact - Tungsten raw material prices surged from approximately 300 yuan/kg at the beginning of the year to 660-670 yuan/kg currently, leading to strong replenishment demand from distributors [2][6] - Huari Precision's ample inventory provides a competitive advantage, while smaller companies may face production halts due to funding issues [2][6][7] Production Capacity and Expansion Plans - Current production capacity utilization is around 80%, with high-end blade capacity fully operational [3][10] - Plans to expand production lines by 35 million pieces, with potential to double output through key process equipment additions [3][11][12] Product Development and Innovation - New products, including high-hard steel processing series, are set to launch with an 80% price increase over standard products, expected gross margins of 30%-40% [3][13] - Focus on humanoid robots and PCB sectors, with plans to complete harmonic gear tool development by mid-2026 [3][17] Competitive Landscape - Domestic companies are expected to focus more on quality competition due to rising costs, while international competitors like Japanese firms may start raising prices in early 2026 [7][8][9] - The tightening of tungsten resources and increased demand for high-end tools in the Korean market present new opportunities for Huari Precision [8] Pricing Strategy - Anticipation of a price increase of 15%-20% in December due to rising raw material costs, with domestic clients gradually accepting these increases [16][24] - The company is considering further price adjustments if raw material prices stabilize at higher levels [24] Future Industry Trends - The tool industry is expected to undergo significant changes due to rising raw material prices and market environment shifts, with a trend towards consolidation [26] - Huari Precision aims to transition from merely providing tools to offering comprehensive solutions, including tool management and digital management software [26] Software Development - The company has launched industrial software with positive feedback and secured a major project worth 97 million yuan [20][21][22] - The software's pricing strategy is flexible, with high gross margins expected due to lower cost constraints compared to hardware [22] Additional Important Insights - Inventory write-downs were recorded due to cautious principles, with potential for reversal if sales prices increase in the future [19] - The company is actively engaging with multiple clients in the PCB sector, not limited to a single partnership [25] - The overall market for cutting tools is driven by both rising raw material costs and improved demand in high-end sectors like aerospace and military [25]

Investment Rating - The report maintains an "Accumulate" rating for the company [2] Core Insights - The company has shown steady growth, with a significant increase in net profit for Q3 2025, achieving a revenue of 771 million yuan, up 31.8% year-on-year, and a net profit of 137 million yuan, up 78.4% year-on-year [2] - In Q3 2025, the company reported a revenue of 252 million yuan, a 44% increase year-on-year, and a net profit of 52 million yuan, a remarkable increase of 916% year-on-year, driven by improved demand and increased capacity utilization [2][3] - The gross margin for Q1-Q3 2025 was 39.52%, a slight decrease of 0.12 percentage points year-on-year, while the gross margin for Q3 2025 was 43.61%, an increase of 10.93 percentage points year-on-year, indicating improved profitability [3] - The company is strategically enhancing its presence in the robotics sector, establishing partnerships with leading firms and hosting forums to address key manufacturing challenges [4] Financial Summary - The company forecasts total revenue of 1,023.4 million yuan for 2025, with a year-on-year growth of 34.83%, and a net profit of 203.96 million yuan, reflecting a 90.69% increase [2][4] - The projected earnings per share (EPS) for 2025 is 2.34 yuan, with a price-to-earnings (P/E) ratio of 38.34 based on the current stock price [2][4] - The company’s net profit margin for Q1-Q3 2025 was 17.8%, an increase of 4.7 percentage points year-on-year, indicating improved profitability management [3]

Group 1: Financial Performance - In Q3 2025, the company achieved revenue of 771 million yuan, a year-on-year increase of 31.85%, and a net profit attributable to shareholders of 137 million yuan, up 78.37% [1] - For Q3 2025 alone, the company reported revenue of 252 million yuan, representing a 44.49% year-on-year growth, and a net profit of 51.99 million yuan, which is a staggering increase of 915.62% [1] - The company has shown consistent growth in net profit over three consecutive quarters, with quarterly growth rates of 70%, 2.7%, and 916% from Q1 to Q3 2025 [1] Group 2: Operational Efficiency - Inventory turnover days decreased from 273 days in the first three quarters of 2024 to 246 days in 2025, indicating improved operational efficiency [1] - Accounts receivable turnover days also declined from 181 days in 2024 to 164 days in 2025, further reflecting enhanced operational quality [1] - The net cash flow from operating activities surged from 4.77 million yuan in the first three quarters of 2024 to 185 million yuan in 2025, marking a significant increase of 3769% [1] Group 3: Strategic Partnerships and Market Position - The company has established long-term and stable relationships with key raw material suppliers, which helps mitigate the impact of rising tungsten prices on its operations [3][4] - The company is positioned as a key player in the humanoid robot tooling market, with a projected market size of at least 3 billion yuan by 2027, assuming a 30% market share [2] - The company’s strategic focus on AI industrial software aims to tap into a vast market, enhancing operational efficiency and profitability [5][6] Group 4: Product Development and Innovation - The company launched the "ZhiJia" AI industrial software, which integrates AI algorithms with high-precision sensors to enhance cutting efficiency by 5-30% [6] - The software aims to improve safety, increase product yield, reduce management costs, and extend tool lifespan, thereby driving down production costs [6] - The company has adjusted its profit forecasts upward due to the positive impact of AI industrial software on its business, projecting net profits of 210 million, 380 million, and 550 million yuan for 2025-2027 [6]

Core Viewpoint - The company, Zhuzhou Huari Precision Tools Co., Ltd., reported explosive growth in Q3 2025, with revenue reaching approximately 252 million yuan, a year-on-year increase of 44.49%, and a net profit of about 51.74 million yuan, soaring by 1040.88% [1] Group 1: Financial Performance - In Q3 2025, the company achieved a revenue of approximately 252 million yuan, marking a 44.49% year-on-year growth [1] - The net profit attributable to shareholders, excluding non-recurring gains and losses, was around 51.74 million yuan, reflecting a staggering increase of 1040.88% year-on-year [1] Group 2: Product Development and Market Strategy - The company has made systematic breakthroughs in product matrix, R&D transformation, and market expansion, with a focus on maintaining its market share in the cutting tool sector [1] - The cutting tools, particularly turning blades, continue to drive revenue growth due to their cost-effectiveness and customization capabilities [1] - The company has successfully entered the humanoid robot sector and achieved technical breakthroughs in gas turbine blade processing, indicating potential for future growth [1] Group 3: R&D Investment and Innovation - The company invested approximately 12.33 million yuan in R&D in Q3 2025, accounting for 4.90% of its revenue, focusing on the "U series" tools and AI intelligent tool selection systems [2] - The company aims to transition from a single hard alloy cutting tool manufacturer to a leading comprehensive cutting solution provider in China [2] Group 4: Market Expansion and Sales Strategy - The company is enhancing its dual sales model of "distribution + direct sales" and has established partnerships with key clients in various industries [2] - The company is expanding its overseas market presence through a "trial tool program" in countries like South Korea and Turkey, achieving a passing rate of over 90% in tests [2] - Plans are underway to establish overseas offices and increase local service capabilities, which are expected to open up high-end global market opportunities [2] Group 5: Industry Insights - The success of the company illustrates that traditional manufacturing can achieve qualitative leaps through technological breakthroughs, scenario deepening, and model innovation [3] - The company's growth story may serve as a model for high-quality development in China's manufacturing sector, particularly in response to emerging demands in humanoid robotics and renewable energy [3]

Core Viewpoint - Huari Precision is a leading enterprise in the domestic hard alloy CNC blade sector, with strong core technology and high product cost-performance ratio, focusing on customized solutions [1] Financial Performance - In Q3 2025, Huari Precision achieved revenue of 771 million yuan, ranking 46th among 82 companies in the industry, with the industry leader, China International Marine Containers, generating 117.06 billion yuan [2] - The company's net profit for the same period was 137 million yuan, ranking 20th in the industry, with the top performer, China International Marine Containers, reporting a net profit of 2.395 billion yuan [2] Profitability and Debt Ratios - As of Q3 2025, Huari Precision's debt-to-asset ratio was 47.98%, higher than the industry average of 39.81% [3] - The gross profit margin for the same period was 39.52%, significantly above the industry average of 22.64% [3] Management and Shareholder Information - The chairman, Xiao Xukai, received a salary of 795,700 yuan in 2024, a slight decrease from the previous year [4] - As of September 30, 2025, the number of A-share shareholders increased by 9.64% to 5,663, while the average number of shares held per shareholder decreased by 8.79% [5] Strategic Outlook - Huari Precision is recognized as a leading enterprise in high-end tool domestic substitution, with strong core technology and a focus on expanding into high-value new materials and applications [5] - The company is expected to see revenue growth from 951 million yuan in 2025 to 1.447 billion yuan in 2027, with corresponding EPS growth [5] - Huachuang Securities has raised the company's performance expectations, forecasting revenues of 943 million yuan, 1.198 billion yuan, and 1.522 billion yuan for 2025 to 2027, respectively [6]

Core Viewpoint - Huari Precision (688059.SH) reported significant growth in its Q3 2025 financial results, indicating strong operational performance and profitability improvements [1] Financial Performance - The company's operating revenue reached 252 million yuan, representing a year-on-year increase of 44.49% [1] - Net profit attributable to shareholders was 51.9861 million yuan, showing a remarkable year-on-year growth of 915.62% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 51.7413 million yuan, reflecting a substantial year-on-year increase of 1040.88% [1]

Financial Performance - The company's revenue for the third quarter reached ¥251,558,562.01, representing a year-on-year increase of 44.49%[2] - The total profit for the quarter was ¥60,639,241.13, showing a significant increase of 1,053.89% compared to the same period last year[2] - Net profit attributable to shareholders was ¥51,986,090.19, reflecting a year-on-year growth of 915.62%[2] - The net profit after deducting non-recurring gains and losses was ¥51,741,319.40, up 1,040.88% year-on-year[2] - Basic earnings per share for the quarter were ¥0.60, an increase of 908.97% year-on-year[2] - The weighted average return on equity was 3.70%, an increase of 3.30 percentage points compared to the previous year[2] - Total operating revenue for the first three quarters of 2025 reached ¥770,666,151.58, a 31.9% increase from ¥584,515,170.55 in the same period of 2024[18] - Net profit for the first three quarters of 2025 was ¥137,445,757.34, representing a 78.5% increase compared to ¥77,056,396.02 in the previous year[20] - Basic and diluted earnings per share for the period were both ¥1.58, compared to ¥0.89 in the same period last year[20] - The total profit for the first three quarters of 2025 was ¥156,948,722.50, significantly higher than ¥86,476,470.39 in the same period of 2024[28] Assets and Liabilities - The company's total assets increased to ¥2,752,055,104.28, marking an 8.82% rise from the end of the previous year[3] - Total liabilities increased to ¥1,320,335,698.88, up from ¥1,197,469,806.17, reflecting a growth of 10.3%[16] - Total equity attributable to shareholders rose to ¥1,431,719,405.40, an increase of 7.5% from ¥1,331,495,508.31[16] - Total current assets as of September 30, 2025, amounted to CNY 1.43 billion, up from CNY 1.13 billion at the end of 2024, reflecting a growth of 26.5%[25] - Total assets reached ¥2,752,055,104.28, up from ¥2,528,965,314.48, marking an increase of about 9%[14] - Total liabilities as of September 30, 2025, were CNY 1.32 billion, an increase from CNY 1.19 billion at the end of 2024, indicating a growth of 10.8%[26] Cash Flow - The company reported a net cash flow from operating activities of ¥184,660,910.33 for the year-to-date period, reflecting a significant increase of 3,768.70%[2] - Operating cash inflow for the first three quarters of 2025 reached CNY 438.69 million, a 28.6% increase from CNY 341.26 million in the same period of 2024[21] - Net cash flow from operating activities for the first three quarters of 2025 was CNY 184.66 million, compared to only CNY 4.77 million in the first three quarters of 2024[22] - The company reported a net cash outflow from investing activities of CNY 49.65 million in the first three quarters of 2025, an improvement from a net outflow of CNY 186.45 million in the same period of 2024[22] - The company reported a net cash outflow from investing activities of ¥51,310,134.22 in the first three quarters of 2025, an improvement from a net outflow of ¥186,225,520.07 in the same period of 2024[31] Research and Development - Research and development expenses totaled ¥12,327,499.82, a decrease of 20.56% compared to the same period last year, accounting for 4.90% of revenue[3] - Research and development expenses for the first three quarters were ¥36,556,674.62, down 20.7% from ¥46,109,880.76 in the previous year[18] - Research and development expenses decreased to ¥36,556,674.62 in the first three quarters of 2025, down from ¥46,109,880.76 in the same period of 2024, reflecting a strategic focus on cost management[28] Shareholder Information - The company reported a total of 5,663 common shareholders at the end of the reporting period[9] - The top shareholder, Zhuzhou Xinkeda Investment Management Co., Ltd., holds 12.69% of shares, totaling 11,060,280 shares[9] - The company has no significant changes in the participation of major shareholders in margin financing and securities lending activities[10] Operational Insights - The increase in revenue and profit was attributed to improved downstream demand and enhanced product performance, along with a more comprehensive product range and steady channel expansion[7] - There are no other significant reminders regarding the company's operational situation during the reporting period[11] - The company plans to expand its market presence and invest in new product development to drive future growth[22]

| 证券代码：688059 | 证券简称：华锐精密 | 公告编号：2025-062 | | --- | --- | --- | | 转债代码：118009 | 转债简称：华锐转债 | | 株洲华锐精密工具股份有限公司 关于召开2025 年第三季度业绩说明会的公告 投资者可于 2025 年 11 月 20 日（星期四）至 2025 年 11 月 26 日（星期 三）16:00 前登录上证路演中心网站首页点击"提问预征集"栏目或通过公司投资 者关系邮箱 zqb@huareal.com.cn 进行提问。公司将在说明会上对投资者普遍关注 的问题进行回答。 株洲华锐精密工具股份有限公司（以下简称"公司"）已于 2025 年 10 月 31 日发布公司 2025 年第三季度报告，为便于广大投资者更全面深入地了解公司 2025 年第三季度经营成果、财务状况，公司计划于 2025 年 11 月 27 日下午 15:00-16:00 举行 2025 年第三季度业绩说明会，就投资者关心的问题进行交流。 一、说明会类型 本次投资者说明会以网络文字互动形式召开，公司将针对 2025 年第三季度 的经营成果及财务指标的具体情况与投资者 ...

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、准确性和完整性依法承担法律责任。 | 证券代码：688059 | 证券简称：华锐精密 | 公告编号：2025-061 | | --- | --- | --- | | 转债代码：118009 | 转债简称：华锐转债 | | 一、2025 年前三季度计提减值准备情况概述 株洲华锐精密工具股份有限公司 关于2025 年前三季度计提减值准备的公告 四、其他说明 公司以预期信用损失为基础，对应收票据、应收账款、其他应收款等进行了 分析和评估并相应计提减值准备。经测试，2025 年前三季度公司合计计提信用 减值损失 237.45 万元。 （二）资产减值损失 公司对存货采用成本与可变现净值孰低计量，按照存货成本高于可变现净值 的差额计提存货跌价准备。公司直接用于出售的存货，在正常生产经营过程中以 该存货的估计售价减去估计的销售费用和相关税费后的金额确定其可变现净值。 经测试，2025 年前三季度公司合计计提存货跌价损失 2,500.63 万元。 三、本次计提减值准备对公司的影响 公司 2025 年前三季度计提的各项资产减值 ...

| 证券代码：688059 | 证券简称：华锐精密 | 公告编号：2025-060 | | --- | --- | --- | | 转债代码：118009 | 转债简称：华锐转债 | | 株洲华锐精密工具股份有限公司 第三届董事会第二十次会议决议公告 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、准确性和完整性依法承担法律责任。 一、董事会会议召开情况 株洲华锐精密工具股份有限公司（以下简称"公司"）第三届董事会第二十次 会议于2025年10月 30日以现场表决与通讯结合的方式召开，会议通知已于2025 年 10 月 23 日以专人、邮寄及电子邮件等方式发出。本次会议应出席董事 7 人， 实际出席董事 7 人，会议由董事长肖旭凯先生召集并主持。本次会议的召集、召 开方式符合相关法律、行政法规、部门规章、规范性文件和《株洲华锐精密工具 股份有限公司章程》（以下简称"《公司章程》"）的规定，会议决议合法、有效。 二、董事会会议审议情况 （一）审议通过了《关于公司 2025 年第三季度报告的议案》 经审核，董事会认为：公司 2025 年第三季度报告的编制和审议 ...