Core Points - The company is holding its first extraordinary general meeting of shareholders in 2025 on August 6, 2025, at 14:00 [9] - The meeting will address three main proposals: the cancellation of a subsidiary, the abolition of the supervisory board, and amendments to the company's articles of association [7][8][10] Group 1: Meeting Procedures - Shareholders must register to attend the meeting between 9:00-11:30 and 13:30-16:00 on August 5, 2025 [3] - Identification documents are required for both shareholders and their proxies to verify attendance [4] - Voting will be conducted through a combination of on-site and online methods, with specific time slots for each [6][9] Group 2: Proposals - Proposal 1 involves the cancellation of the wholly-owned subsidiary NEWAY CNC(USA), INC, aimed at optimizing internal management and reducing operational costs [7] - Proposal 2 includes the abolition of the supervisory board, with its functions being transferred to the audit committee of the board of directors, and a change in registered capital due to an increase in total shares from 326,666,700 to 457,333,380 [8][10] - Proposal 3 focuses on revising, formulating, and abolishing related internal regulations to enhance corporate governance and protect shareholder rights [11]

Summary of LiuGong Co., Ltd. Conference Call Company Overview - LiuGong Co., Ltd. reported a net profit attributable to shareholders of 260 million yuan in Q1 2025, ranking 7th among steel companies, an improvement of 11 positions year-on-year, attributed to internal management optimization, capacity release at the Fangchenggang base, raw material structure optimization, and macroeconomic improvements [2][4] Key Points Financial Performance - In 2024, LiuGong achieved an operating income of 70.1 billion yuan and a net profit of 32 million yuan, reducing losses by 57.23% year-on-year, ranking 22nd among 36 steel companies, an improvement of 6 positions [4] - Q1 2025 net profit of 260 million yuan represents a significant year-on-year increase, with a ranking improvement of 11 positions [2][4] Operational Insights - The Fangchenggang base's first phase is completed, with no specific plans for the second phase yet; the focus is on consolidating reform results and improving product structure [2][7] - Steel industry demand has fluctuated in Q1 2025, with stable demand for industrial high-line and full-diameter products; however, U.S. tariff policies have negatively impacted downstream demand, particularly affecting cold-rolled plate prices [2][8] Raw Material Strategy - LiuGong has gradually increased the proportion of imported coking coal, primarily from Mongolia, Australia, and Canada, with an average import ratio of around 50% and a peak of 60% for injection coal [2][8] - The company maintains cooperation with domestic large mines to mitigate potential risks associated with raw material supply [2][8] Production and Cost Management - Q1 2025 production volume increased year-on-year, with no significant changes expected in Q2 production plans, which will depend on profitability and policy arrangements [2][9] - The cost of iron water at the headquarters is approximately 200 yuan/ton higher than that of Guangxi Steel, with expected gross profit margins for steel products declining to 6%-7% [2][11][12] Environmental Compliance and Future Investments - LiuGong has completed ultra-low emission requirements and plans to invest about 4 billion yuan in related projects in 2025, with potential reductions in future fixed asset investments [3][17] - The company will carefully consider dividend policies in light of its good performance in Q1 2025, focusing on shareholder value management [3][18] Research and Development - R&D expenses have fluctuated significantly, with Q1 2025 expenses at 160 million yuan, down from 500 million yuan in Q1 2024; future R&D spending is expected to stabilize around 3.5% of revenue, focusing on specialty steel and technological innovation [16] Market Conditions - The steel industry is experiencing downward pressure on profitability, with cold-rolled prices under pressure leading to potential shifts in production focus if conditions do not improve [12][14] Taxation - LiuGong expects to maintain a low income tax rate due to accumulated losses exceeding 2 billion yuan over the past few years, with no income tax anticipated for Q2 and Q3 2025 [13] Conclusion LiuGong Co., Ltd. is navigating a challenging steel market with strategic management improvements, a focus on raw material sourcing, and compliance with environmental regulations, while also considering shareholder returns and future investments in R&D and production capacity.

Core Viewpoint - Jiuding Investment's 2024 annual report reveals significant financial challenges, with a total revenue of 338 million yuan, a year-on-year increase of 20.34%, but a staggering net loss of 268 million yuan, a decline of 1848.42% compared to the previous year [1] Private Equity Investment Business - The core business remains private equity investment, with a total capital returned from fully exited projects amounting to 275 million yuan and cash recovered at 987 million yuan, while management fee income dropped significantly to 2 million yuan and management remuneration to 140 million yuan, indicating a weakening profitability in this sector [4] - The total capital raised by historically managed funds reached 38.228 billion yuan, with remaining capital of 7.574 billion yuan and 367 investment projects, of which 95 have not fully exited [4] Real Estate Business - The real estate segment, primarily focused on the "Zijin City" project in Nanchang, Jiangxi Province, reported total sales receipts of 112.79 million yuan and recognized revenue of 166.24 million yuan, highlighting a lag in revenue recognition despite increased sales [5][6] - The "Zijin City" residential project has sold out most phases, with ongoing development for the fifth phase, but the profitability remains weak, with net profit losses indicating high operational costs and limited profit margins [5][6] Construction Business - Jiuding Investment launched its construction business in Q4 2024, signing initial contracts worth 20 million yuan, but faced initial losses of 2.66 million yuan due to high operational costs [7] - The expansion into construction is part of a diversification strategy, but the initial losses suggest a need for better resource integration and market development [7] Internal Management - The company is actively optimizing internal management across various areas, including talent development, compliance, and cost control, with a robust system in place to prevent conflicts of interest [8] - Despite these efforts, the significant net loss indicates ongoing challenges in business operations and cost management, necessitating further improvements to enhance profitability [8] Summary - Overall, Jiuding Investment's 2024 annual report indicates a troubling performance across its private equity, real estate, and construction businesses, with a critical need for enhanced profitability, cost control, and internal management to navigate market and industry challenges [9]