Summary of Jinggong Steel Structure Conference Call Company Overview - **Company**: Jinggong Steel Structure - **Industry**: Steel Construction and Engineering Key Financial Metrics - Operating revenue for Q3 2025 reached **14.5 billion** CNY, a **21%** year-on-year increase [3] - Net profit attributable to shareholders was **589 million** CNY, up **24%** year-on-year [3] - Operating cash flow for Q3 was **760 million** CNY, indicating strong performance [3] - Three expense ratios decreased by **1.6%** year-on-year, with ROE exceeding the previous year's total [3] Business Growth and Strategy - **Overseas Business Growth**: - Expected overseas order scale to exceed **6 billion** CNY by 2025, enhancing overall order quality [2][5] - Key growth areas include landmark projects in Saudi Arabia and industrial plants in Southeast Asia [2] - Overseas orders accounted for nearly **30%** of total platform revenue in the first three quarters [10] - **Domestic Market Strategy**: - Despite macroeconomic challenges, the company is expanding its regional layout through a franchise model, partnering with local firms to establish holding companies [6] - Anticipated **1.2 billion** CNY in new orders from this strategy [6] - **EPC Business Development**: - Aiming to become a leader in the construction industry chain through EPC (Engineering, Procurement, and Construction) and prefabricated building systems [7][8] - Plans to build model houses in Shanghai to penetrate the residential market [8] Dividend Policy - Introduced a three-year dividend plan, increasing the payout ratio to **70%** with a minimum dividend of **400 million** CNY, targeting a dividend yield of at least **5%** [9] International Market Insights - The Middle East market is projected to have significant growth potential, with numerous projects expected to be tendered in the coming years [14] - The company has a history of successful projects in the region, including major constructions in Saudi Arabia and Qatar [13] Competitive Landscape - Key competitors in the Middle East include major steel structure companies from Vietnam and Turkey, as well as local firms in Saudi Arabia [29] - The company maintains a competitive edge due to lower steel prices and higher labor efficiency in China [29] Operational Efficiency - The company’s overseas projects primarily utilize domestic production from its **100,000-ton** export base in Shaoxing [26] - Focus on project management and technical expertise rather than merely increasing processing capacity [19] Future Outlook - The company aims to achieve **10 billion** CNY in overseas business within three years, with a projected growth of **70-80%** in 2026 [17] - Plans to explore further international expansion while maintaining a strong domestic presence [12][24] Additional Insights - The company is not currently considering establishing overseas factories due to cost advantages in China [26] - The use of robots for welding and rust removal is still in early stages, with limited impact on cost reduction [30] This summary encapsulates the key points from the conference call, highlighting the company's financial performance, strategic initiatives, and market positioning.

Group 1 - The company, Zhonghuan New Energy, has entered into a sale agreement with Charming Brand Development Limited to sell its entire issued share capital of Central Property Group Ltd for HKD 115 million [1] - Central Property Group Ltd is a wholly-owned subsidiary of the company, primarily engaged in property development and investment, with key assets including a hotel, a bungalow, and apartments located in Zhejiang Province, China, totaling approximately 24,100 square meters [1] - The company aims to realize the value of its assets and reduce financial burdens by selling the properties, as the fair value of the investment properties has decreased from approximately HKD 222 million to HKD 206 million due to adverse market conditions [2] Group 2 - The construction industry is facing challenges such as market overcapacity, unclear regulatory environments, and geopolitical tensions, which have negatively impacted the sector [2] - The board of directors believes that the sale represents an opportunity to reallocate resources and focus on the company's future development in the new energy and EPC (Engineering, Procurement, and Construction) sectors [2]