Core Viewpoint - Fuhuang Steel Structure (002743.SZ) has been penalized by the Anhui Securities Regulatory Bureau for information disclosure violations during the acquisition of 100% equity in Zhongke Shijie, resulting in a warning and a fine of 6 million yuan, with total penalties amounting to 31.8 million yuan for all parties involved [1][3]. Group 1: Regulatory Actions - The Anhui Securities Regulatory Bureau issued a warning and a fine of 6 million yuan to Fuhuang Steel Structure, while Zhongke Shijie was fined 7 million yuan [3]. - The former chairman of Fuhuang Steel Structure, Yang Junbin, was fined 3.8 million yuan, and six other responsible individuals received fines ranging from 2 million to 3.5 million yuan [3]. - The total penalty amount reached 31.8 million yuan, which includes fines for both the company and its executives [3]. Group 2: Acquisition Details - In May 2025, Fuhuang Steel Structure planned to acquire 100% equity in Zhongke Shijie for approximately 1.14 billion yuan, aiming to enter the high-speed vision sector [2]. - The acquisition was terminated in June 2025 due to changes in market conditions, transaction cycles, and secondary market factors, as stated by the company [2]. - The regulatory investigation revealed three major issues: inflated revenue and profit figures for Zhongke Shijie, undisclosed related party transactions totaling nearly 20 million yuan, and failure to disclose shareholding arrangements [2]. Group 3: Financial Performance - Fuhuang Steel Structure reported a revenue of 2.348 billion yuan for Q3 2025, a year-on-year decline of 19.6%, with a net profit attributable to shareholders of 41.3 million yuan, down 39.16% [4]. - In 2022, the company achieved a revenue of 4.757 billion yuan and a net profit of 97.4936 million yuan, but in 2023, revenue dropped to 4.635 billion yuan, with a slight net profit decline of 1.48% [4]. - The revenue for 2024 was reported at 3.937 billion yuan, reflecting a year-on-year decline of 15.06%, with net profit falling to 51.3744 million yuan, a decrease of 46.51% [4].

Investment Rating - The industry rating is "Outperform the Market" (maintained rating) [4] Core Viewpoints - The high-speed camera market is experiencing rapid growth, with domestic substitution demand further increasing. The market size of China's high-speed machine vision industry was approximately 10 billion in 2022, with an expected average annual growth rate of about 22% from 2023 to 2028, potentially exceeding 33 billion by 2028 [1][30] - The report highlights that Zhongke Shijie is one of the few domestic companies capable of producing commercial high-speed cameras independently, with a market share that increased from 8.6% in 2019 to 22.2% in 2022. The company is expected to achieve rapid growth under the backdrop of domestic substitution and self-control [2][38] - Fuhuang Steel Structure plans to acquire Zhongke Shijie to transform into the high-speed vision field, opening a second growth curve for the company [2][39] Summary by Sections 1. Zhongke Shijie: Layout in High-Speed Vision New Track - Zhongke Shijie is a leading domestic manufacturer of high-speed cameras, having launched the first domestic 10,000-frame high-speed camera in 2017. The company has developed a range of products, including ultra-high-speed cameras and scientific-grade cameras, and has achieved significant technological advancements [10][16] 2. Demand Side: Broad Downstream Application Scenarios - The downstream applications of high-speed vision technology are extensive, covering industrial automation, intelligent transportation, aerospace, medical imaging, and security monitoring. The company has built a rich customer base, including major universities and large industrial enterprises [27][32] 3. Supply Side: Steady Increase in Domestic Market Share - Zhongke Shijie's market share has steadily increased, positioning it among the top brands in the high-speed vision field. The company has achieved a 58% share of the global high-speed camera bidding situation as of December 2024, reflecting a 14% increase compared to the same period in 2023 [38] 4. Fuhuang Steel Structure: Traditional Main Business and Active Layout for Industrial Upgrade - Fuhuang Steel Structure has a strong foundation in steel structure manufacturing and is actively pursuing industrial upgrades. The company has established three intelligent manufacturing bases and is expanding its production capacity through strategic partnerships [39][45] 5. Financial Performance - From 2020 to November 2024, Zhongke Shijie's revenue has shown a growth trajectory, with figures of 0.41 billion, 0.77 billion, 1.52 billion, 1.91 billion, and 1.79 billion respectively. However, the net profit has fluctuated, indicating challenges in maintaining profitability [21][22]