Summary of the Conference Call for 双杰电器 Company Overview - **Company**: 双杰电器 (Shuangjie Electric) - **Industry**: New Energy and Smart Electrical Equipment Key Points and Arguments 1. **Revenue Breakdown**: In the first half of 2025, new energy revenue accounted for 60% of total revenue, surpassing the transmission and distribution segment for the first time. New energy business revenue reached 1.42 billion yuan, a year-on-year increase of 74% [2][3][5] 2. **Overall Financial Performance**: Total revenue for the first half of 2025 was 2.38 billion yuan, a 42% increase year-on-year, with net profit at 104 million yuan, up 20% [3][4] 3. **EPC Contracts**: The company confirmed 70%-75% of orders for the Ningxiang supporting project, with a total scale of approximately 1.65 billion yuan, of which 1.5 billion yuan is for EPC contracts [2][13] 4. **Growth in Smart Electrical Equipment**: Revenue from smart electrical equipment was 943 million yuan, a year-on-year increase of 11%, benefiting from changes in national procurement policies [2][5][11] 5. **Progress in Four Key Areas**: The company made advancements in the four key areas of source, network, load, and storage, providing comprehensive solutions in solar and wind energy [6][8][33] 6. **Contract Growth**: New contract value reached 2.2 billion yuan in the first half of 2025, a 44% increase year-on-year, with a backlog of orders between 3 to 4 billion yuan [4][20] 7. **International Expansion**: Plans to invest in the first overseas photovoltaic project in Kyrgyzstan to further expand international market presence [2][9][24] 8. **Cost Management**: Gross margin for smart electrical equipment improved by 4 percentage points due to economies of scale, reduced raw material costs, and internal cost-cutting measures [4][14] 9. **Future Outlook**: The company aims to significantly enhance its new energy business over the next 1-3 years, particularly in integrated source, network, load, and storage solutions [4][31][34] Additional Important Information 1. **Digital Transformation**: The company has implemented digital transformation strategies to reduce production and procurement costs, utilizing AI for forecasting and design [7] 2. **Employee Incentives**: Increased management expenses due to employee incentive plans and the need for more personnel to support new production capacity [27][28] 3. **Market Position**: The company has established a competitive advantage in the European market with solid insulation ring network cabinets and environmentally friendly gas cabinets [23] 4. **Future Revenue Projections**: The company anticipates significant growth in overseas revenue, particularly in the new energy sector, although specific forecasts remain uncertain due to project timelines [25][26] This summary encapsulates the key insights and developments discussed during the conference call, highlighting the company's strategic direction and performance metrics.

Company Overview - Beijing Shuangjie Electric Co., Ltd. was established in 2002 and listed on the Shenzhen Stock Exchange in 2015 under the stock code 300444.SZ. The company has over 2,000 employees and six production bases across China [2][4]. - The company focuses on the power industry, maintaining strong R&D capabilities and advanced smart manufacturing levels. It has developed a comprehensive product matrix covering both power distribution and new energy intelligent equipment [2][4]. Financial Performance - In the first half of 2025, the company achieved a revenue of ¥2,375,894,832.52, representing a year-on-year growth of 41.95%. The net profit attributable to shareholders was ¥103,516,272.94, with a growth of 20.11% [2][4]. Revenue Growth Drivers - The significant revenue growth in the first half of 2025 was driven by two main factors: 1. The smart electrical equipment business experienced notable growth due to customer adjustments in procurement policies [3]. 2. The new energy business saw an increase in revenue from new orders and sufficient backlog, surpassing the revenue from smart electrical equipment for the first time [3]. Gross Margin Improvement - The improvement in gross margin for smart electrical equipment was attributed to three key factors: 1. Scale effects from increased production leading to lower fixed costs per unit [5]. 2. Reduced procurement costs due to enhanced bargaining power with suppliers [5]. 3. Internal management optimization through improved product design and production processes [5]. International Market Development - The company is actively expanding its international market presence, with products sold in over 20 countries and regions. The overseas business is progressing well, with stable market orders and new customers in the power sector [6]. - In the new energy sector, the company is advancing planned photovoltaic projects abroad [6]. Investment Return Strategy - The company emphasizes investor returns and is developing a dividend strategy to reward shareholders while ensuring long-term stable growth and strengthening core business competitiveness [7][8].

Core Viewpoint - The company, Shuangjie Electric, reported significant growth in its financial performance for the first half of 2025, driven by the rapid expansion of its new energy business and stable growth in its power distribution and transmission sector [1] Financial Performance - In the first half of 2025, Shuangjie Electric achieved operating revenue of 2.376 billion yuan, representing a year-on-year increase of 41.95% - The net profit attributable to shareholders reached 104 million yuan, marking a year-on-year growth of 20.11% [1] Major Contracts and Projects - Recently, Shuangjie Electric secured large contracts in both the new energy and power distribution sectors - In July 2025, the company won a bid worth over 270 million yuan in the Southern Power Grid's first batch of framework bidding projects for distribution network equipment, ranking among the top in the industry - In March 2025, the company and its wholly-owned subsidiary won multiple contracts for the "Ning Electric into Hunan" DC supporting photovoltaic project, totaling 1.64 billion yuan, showcasing its expertise in photovoltaic power station construction [2] New Energy Sector Growth - In the first half of 2025, the intelligent electrical business generated revenue of 943 million yuan, a year-on-year increase of approximately 10.7% - The new energy intelligent equipment and construction development business achieved revenue of 1.402 billion yuan, a year-on-year growth of approximately 77.2% - For the first time, revenue from the new energy sector surpassed that of the power distribution sector, indicating that new energy has become a major driver for the company's future development [2] Strategic Initiatives - To implement the "dual carbon" strategy, Shuangjie Electric is strategically laying out an integrated project for "source-grid-load-storage," which includes a new load of 552,000 tons for high-carbon ferrochrome alloy and plans for 400,000 kW of wind power capacity and 60,000 kW/240,000 kWh of energy storage - This project aims to optimize energy structure, improve energy utilization efficiency, and reduce electricity costs on the load side, achieving both economic and social benefits [3] International Expansion - Shuangjie Electric is expanding its overseas market presence, with plans to invest in a 100 MW photovoltaic power generation project in Kyrgyzstan - The project is located in a load center with significant market potential, and the national grid of Kyrgyzstan has committed to supporting the project and ensuring that all generated power is connected to the grid - This investment is expected to enhance the company's new energy business scale and regional reach, deepen communication and cooperation with overseas clients, and improve international competitiveness and service capabilities [3]

Core Insights - The company, Shuangjie Electric (300444.SZ), reported a total operating revenue of 2.376 billion yuan for the first half of 2025, marking a year-on-year increase of 41.95% and achieving four consecutive years of growth [1] - The net profit attributable to shareholders reached 104 million yuan, reflecting a year-on-year increase of 20.11% and three consecutive years of growth [1] - The company experienced a net cash outflow from operating activities of 130 million yuan [1] Financial Metrics - The latest debt-to-asset ratio stands at 78.89% [3] - The gross profit margin is reported at 17.32%, an increase of 0.37 percentage points from the previous quarter [3] - The return on equity (ROE) is 5.91%, ranking 18th among disclosed peers, with a year-on-year increase of 0.65 percentage points [3] - The diluted earnings per share (EPS) is 0.13 yuan, up by 0.02 yuan from the same period last year, achieving three consecutive years of growth [3] - The total asset turnover ratio is 0.31 times, and the inventory turnover ratio is 1.03 times [3] Shareholder Structure - The number of shareholders is 44,500, with the top ten shareholders holding 336 million shares, accounting for 42.13% of the total share capital [3] - The largest shareholder, Zhao Zhihong, holds 19.82% of the shares [3] - Other significant shareholders include Zhejiang Junhong Asset Management Co., Ltd. and Zhao Zhixing, each holding 4.75% and 3.62% respectively [3]

Group 1 - The core point of the article is that Beijing Shuangjie Electric Co., Ltd. announced an investment in a 400,000 kW integrated energy project in Wengniuteqi, with a total investment of approximately 2.8 billion yuan [1] - The project includes an investment of about 1.8 billion yuan for the renewable energy component and 1 billion yuan for the high-carbon ferrochrome alloy load project [1] - The project aims to optimize energy structure, improve energy utilization efficiency, and reduce electricity costs, aligning with the company's long-term development strategy [2] Group 2 - The project will add a load of 552,000 tons for the high-carbon ferrochrome alloy project, with an annual electricity consumption of 2.0244 billion kWh and a load scale of 312,873 kW [1] - The project will include a wind power installed capacity of 400,000 kW and a storage capacity of 60,000 kW/240,000 kWh [1] - The company will monitor market changes and manage risks associated with the project, which has a large investment scale and potential uncertainties [2]

Group 1 - The company held its sixth board meeting on August 25, 2025, where the proposal for the 2025 semi-annual report was approved [1] - The 2025 semi-annual report and its summary will be disclosed on August 26, 2025, on the designated website for information disclosure [1] - The announcement emphasizes the commitment to providing accurate and complete information to investors [1]

Meeting Information - The third extraordinary general meeting of shareholders for 2025 will be held on September 12, 2025, from 9:15 AM to 3:00 PM, with specific time slots for voting [1][2] - The meeting will be conducted in a combination of on-site and online voting methods [1][2] Legal Compliance - The meeting has been approved by the company's sixth board of directors and complies with the requirements of the Company Law of the People's Republic of China and the company's articles of association [1] Attendance and Voting - All shareholders registered with the China Securities Depository and Clearing Corporation Limited as of the equity registration date are entitled to attend the meeting [2] - Shareholders can appoint a proxy to attend and vote on their behalf, and the proxy does not need to be a shareholder of the company [2] Agenda Items - The meeting will discuss several proposals, including amendments to accounting policies, investment projects, and guarantees for subsidiaries [2][8] - Proposals require a two-thirds majority approval from attending shareholders to pass [2] Registration Process - Shareholders must present identification and authorization documents to register for the meeting [3][4] - Registration will take place on September 10, 2025, during specified hours [4] Online Voting - The company will provide an online voting platform for shareholders to cast their votes during the meeting [5][11] - Detailed procedures for online voting will be made available to shareholders [5][11]

Core Viewpoint - The company has established a management system to regulate financial transactions with related parties, aiming to protect the rights and interests of the company, shareholders, and other stakeholders [1]. Summary by Sections General Principles - The management system is designed to strengthen and standardize the company's financial management and regulate financial transactions with related parties [1]. - The system applies to financial transactions between the company and its related parties, including subsidiaries within the consolidated financial statements [1]. - Financial occupation includes both operational and non-operational financial occupation [1]. Prevention of Financial Occupation - The company must strictly prevent the occupation of funds during operational transactions with related parties [6]. - Related parties are prohibited from using their relationships to harm the company's interests, and any losses incurred must be compensated [2][5]. - The company must not provide funds to related parties through various means, including paying wages or expenses on their behalf [3][4]. Payment Procedures for Financial Transactions - The board of directors and senior management are responsible for maintaining the safety of the company's funds and assets [13]. - The chairman of the board is the primary responsible person for preventing financial occupation, while the general manager oversees daily management [14]. - Financial transactions with related parties must follow legal and regulatory procedures, requiring approval from the appropriate decision-making bodies [15][16]. Accountability and Penalties - Directors and senior management who assist or condone the occupation of company assets by related parties may face disciplinary actions [23]. - The company will impose penalties on responsible individuals for any adverse effects caused by non-operational financial occupation [24]. - Legal responsibilities may be pursued against individuals causing losses to investors due to violations of the management system [25].

Core Viewpoint - The document outlines the accounting policies, estimates, and error correction approval and disclosure system of Beijing Shuangjie Electric Co., Ltd, aiming to enhance the relevance, reliability, and completeness of financial reporting and information disclosure [2][11]. Chapter Summaries Chapter 1: General Principles - The purpose of the system is to standardize the application of accounting policies and estimates, improve management of changes, and ensure timely and complete information disclosure [2]. Chapter 2: Scope of Changes - Accounting policy changes refer to alterations in principles, bases, and methods used for accounting recognition, measurement, and reporting [3]. - Consistency in accounting policies is required for similar transactions, with changes allowed only under specific conditions such as legal requirements or improved reliability of information [3][4]. Chapter 3: Handling Changes and Errors - Changes in accounting estimates are based on the latest available information and affect the book value of assets or liabilities [4]. - Major accounting errors, defined as those affecting the reliability of financial statements, must be adjusted in the retained earnings of the earliest period [5][6]. Chapter 4: Approval and Disclosure of Policy Changes - Changes in accounting policies require sufficient evidence of their reasonableness and must be approved by the board of directors, with disclosure obligations to the Shenzhen Stock Exchange [7][8]. Chapter 5: Approval and Disclosure of Estimate Changes - Significant changes in accounting estimates must be reported similarly to policy changes, with specific thresholds for board approval and disclosure [9][10]. Chapter 6: Approval and Disclosure of Major Errors - Major accounting errors must be reported and disclosed following board approval, with specific criteria for when a special audit report is required [10]. Chapter 7: Supplementary Provisions - The system is subject to interpretation by the board of directors and is effective upon approval by the shareholders' meeting [11].

Core Points - The document outlines the management system for related party transactions of Beijing Shuangjie Electric Co., Ltd, aiming to ensure the legality, fairness, and reasonableness of such transactions to protect the rights of shareholders and the company [1][2]. Group 1: General Principles - The internal control of related party transactions should adhere to principles of honesty, equality, voluntariness, fairness, and openness, ensuring no harm to the interests of the company and other shareholders [1]. - Related parties include related legal entities, natural persons, and potential related parties, with specific criteria defined for each category [2][3]. Group 2: Related Party Transactions - Related party transactions refer to the transfer of resources or obligations between the company and its related parties, including asset purchases, external investments, financial assistance, guarantees, leasing, management contracts, donations, and debt restructuring [3][4]. - The company must avoid conflicts of interest during board meetings when discussing related party transactions, requiring related directors to abstain from voting [4][5]. Group 3: Decision-Making Procedures - Related party transactions must follow principles of honesty, fairness, and public disclosure, ensuring that the rights of non-related shareholders are not compromised [8][14]. - The approval authority for related party transactions is tiered based on transaction amounts, with specific thresholds set for board and shareholder meeting approvals [8][9]. Group 4: Information Disclosure - Transactions exceeding certain monetary thresholds must be disclosed promptly after board approval, with detailed information about the transaction, including the nature of the relationship, pricing policies, and the impact on the company [16][17]. - The company is required to disclose the cumulative amount of transactions with related parties within a specified period, ensuring transparency in its dealings [17][18].