Core Viewpoint - Hezhong Electric has experienced a decline in stock price over six consecutive trading days, with a cumulative drop of -5.81% [1] Company Overview - Shenzhen Hezhong Electric Co., Ltd. (stock code: 603063) focuses on the research, production, sales, and service of new energy and electrical transmission products, including wind power generation products, photovoltaic products, energy storage products, hydrogen power products, power quality products, and electrical transmission products [1] - The company possesses complete independent development capabilities and testing platforms for large power electronic devices and monitoring systems [1] Fund Involvement - Two funds under Guotai Fund have entered the top ten shareholders of Hezhong Electric, both of which are new entries in the first quarter of this year. The funds are Guotai Valuation Advantage Mixed (LOF) A and Guotai Ju Xin Value Advantage Mixed A [1] - Guotai Valuation Advantage Mixed (LOF) A has a year-to-date return of 22.39%, ranking 334 out of 4529 in its category, while Guotai Ju Xin Value Advantage Mixed A has a year-to-date return of 11.06%, ranking 398 out of 2301 [1] Fund Manager Profiles - Wang Zhaoxiang, the fund manager for Guotai Valuation Advantage Mixed (LOF) A, has been with Guotai Fund since August 2014 and has held various positions including researcher and assistant fund manager. He has been the fund manager since June 21, 2022 [3][4] - Cheng Zhou, the fund manager for Guotai Ju Xin Value Advantage Mixed A, has extensive experience in the industry, having joined Guotai Fund in April 2004 and held multiple managerial roles in various funds [4] Company Background - Guotai Fund Management Co., Ltd. was established in March 1998, with its chairman being Zhou Xiangyong and general manager being Li Sheng. The company has three shareholders: China Jianyin Investment Co., Ltd. (60%), Assicurazioni Generali S.p.A. (30%), and State Grid Yingda International Holdings Group Co., Ltd. (10%) [5]

Investment Rating - The report maintains a "Buy" rating for the mechanical industry [1] Core Insights - The mechanical industry is experiencing significant advancements, particularly in humanoid robots and automation technologies, with major companies launching mass production of innovative products [3][4][6] - The humanoid robot sector is expected to see a breakthrough in 2025, with mass production levels reaching thousands of units, which will enhance data collection and training capabilities [6] - The agricultural machinery market is facing challenges, but long-term demand is anticipated to rise due to policy support and export opportunities [9] - The engineering machinery sector is currently under pressure domestically but is witnessing growth in exports, with a positive outlook for infrastructure investments [13] - The low-altitude economy is gaining traction, with government support and increasing applications in tourism and logistics [24] Summary by Relevant Sections Humanoid Robots - On June 30, Junpu Intelligent's subsidiary launched mass production of humanoid robots, marking a significant milestone in the industry [3] - The Sichuan provincial government is promoting the development of humanoid robots and related AI products [3] - The humanoid robot industry is expected to see substantial growth, with a focus on complex functionalities and cost reduction in production [6] Agricultural Machinery - The agricultural machinery market's sentiment index is at 40.9%, indicating a downturn [8] - Despite current challenges, tractor exports have increased by 12.6% in quantity and 31.2% in value from January to May 2025 [9] Engineering Machinery - In May 2025, excavator sales reached 18,202 units, with domestic sales declining by 1.5% but exports increasing by 5.4% [13] - The engineering machinery sector is expected to recover as infrastructure investments rise [13] Low-altitude Economy - The low-altitude economy is being actively developed, with initiatives in low-altitude tourism and support for eVTOL aircraft [24][22] - The government is encouraging the application of low-altitude equipment and services across various sectors [22]

Investment Rating - The mechanical industry is rated as "Buy" (maintained) [1] Core Views - The report highlights the marginal decline in domestic demand for engineering machinery, while also emphasizing the advancements in humanoid robotics and related technologies [3][4][5] - The report suggests that 2025 will be a breakthrough year for humanoid robots, with mass production expected to drive the downstream supply chain [5] - The agricultural machinery market shows signs of improvement, with tractor exports increasing significantly [8] - The engineering machinery sector is experiencing short-term pressure on domestic sales, but export volumes are maintaining a growth trend [12] Summary by Relevant Sections Humanoid Robots - A joint research team has developed the world's first humanoid robot with high-resolution tactile perception and complete motion capabilities [3] - Tesla's CEO Elon Musk confirmed the integration of AI voice assistant Grok into the Optimus V3 humanoid robot [3] - Significant investments in humanoid robotics are being made, with companies like Galaxy General completing a financing round of 1.1 billion RMB [3][4] Machine Tools & Cutters - Japan's machine tool orders in May 2025 amounted to 128.716 billion JPY, with a year-on-year increase of 3.4% [6] - The report suggests that the machine tools and cutters sector is influenced by economic expectations, with potential improvements expected as policies are implemented [6] Agricultural Machinery - The agricultural machinery market sentiment index was reported at 43.5% in May 2025, indicating a slight year-on-year improvement [7] - Tractor exports from China increased by 12.3% in quantity and 31.1% in value during the first five months of 2025 [8] Engineering Machinery - In May 2025, excavator sales (including exports) reached 18,202 units, a year-on-year increase of 2.1% [12] - Domestic sales of excavators decreased by 1.5%, while export sales increased by 5.4% [12] - The report anticipates a recovery in demand for engineering machinery as infrastructure investment is expected to remain high [12] Forklifts - Forklift sales in May 2025 reached 123,472 units, a year-on-year increase of 11.8% [13] - The average working hours for forklifts increased by 22.5% month-on-month, indicating improved demand [13] Rail Transit Equipment - The report notes significant increases in the procurement of high-speed train maintenance projects by the National Railway Group [14] - The rail transit equipment sector is expected to benefit from increased railway investment and passenger flow recovery [14] Semiconductor Equipment - The report discusses the acceleration of domestic substitution for key semiconductor equipment due to increased tariffs [15][16] - The establishment of the third phase of the big fund, with a registered capital of 344 billion RMB, is expected to significantly boost the domestic semiconductor industry [16] New Energy Equipment - As of May 2025, the cumulative installed capacity of power generation in China reached 3.61 billion kW, a year-on-year increase of 18.8% [17] - The report highlights the rapid growth of photovoltaic power generation capacity, with a 57% year-on-year increase in new installations [17] Low-altitude Economy and EVTOL - Policies supporting the development of the low-altitude economy and EVTOL (Electric Vertical Takeoff and Landing) aircraft have been introduced in various regions [18][19] - The report emphasizes the potential for the low-altitude economy to drive new industries and consumer spending [19]

Investment Rating - The report maintains a "Buy" rating for the mechanical industry, indicating a projected investment return exceeding 15% over the next 6-12 months compared to the market benchmark index [1]. Core Insights - The 2025 Smart Robot Development Conference was held in Nanjing, showcasing over 40 robots from 29 companies, including the second-generation humanoid robot Codroid 02, which features advanced capabilities for both heavy lifting and precision tasks [2]. - Pudu Robotics achieved a significant milestone with the production of its 100,000th robot, the AI-powered PUDU CC1 Pro, marking a new phase in the commercialization of service robots [3]. - The humanoid robot sector is expected to experience a breakthrough in 2025, with mass production driving the downstream supply chain and addressing data scarcity issues, leading to more practical applications [7]. - The report highlights the importance of various components in the humanoid robot industry, including advanced dexterous hands and cost reduction in production processes [7]. Summary by Sections Humanoid Robots - The humanoid robot industry is poised for significant growth, with advancements in technology and increased production capacity expected to enhance practical applications [7]. - Companies such as Estun and others are leading in the development of complex robotic components [7]. Machine Tools & Cutters - Japan's machine tool orders in April 2025 reached 130.206 billion yen, showing a year-on-year increase of 7.7% [8]. - China's metal cutting machine tool production from January to April 2025 was 264,000 units, reflecting a year-on-year growth of 16.8% [8]. Agricultural Machinery - The agricultural machinery market in China showed a slight decline in the AMI index to 43.5% in May 2025, with various indices indicating mixed trends [9][10]. - The report suggests a long-term increase in demand for agricultural machinery, particularly in the context of the Belt and Road Initiative [10]. Engineering Machinery - The engineering machinery sector is recovering, with excavator sales in May 2025 reaching 18,202 units, a year-on-year increase of 2.1% [14]. - The report anticipates continued demand recovery driven by infrastructure investments [14]. Semiconductor Equipment - The report notes that the implementation of reciprocal tariffs is accelerating the domestic substitution of key semiconductor equipment [17]. - The emphasis on domestic production capabilities is expected to grow, particularly in light of recent trade policies [18]. New Energy Equipment - Significant technological breakthroughs in solar energy were reported, with new efficiency records set for solar cells [19][20]. - The report indicates a healthy competitive environment returning to the solar market, driven by policy support and technological advancements [20]. Low-altitude Economy and EVTOL - The low-altitude economy is identified as a strategic emerging industry, with expected acceleration in development and investment [21]. - The report highlights initiatives in various regions to support the growth of low-altitude economic activities [21].

Core Points - The document outlines the insider information management system of Shenzhen Huabao New Energy Co., Ltd, emphasizing the importance of confidentiality and compliance with relevant laws and regulations [1][30]. Group 1: Insider Information Management - The management of insider information is the responsibility of the board of directors, with the board secretary organizing its implementation [1]. - No department or individual is allowed to disclose insider information without the approval of the board secretary [1][2]. - Insider information is defined as non-public information that could significantly impact the company's operations, finances, or stock trading prices [6][7]. Group 2: Scope of Insider Information - Insider information includes significant events such as asset pledges exceeding 30% of total assets, major changes in control, and decisions regarding mergers or bankruptcy [7][8]. - The company must report insider information to the Shenzhen Stock Exchange within five trading days after the initial public disclosure [10][11]. Group 3: Insider Information Recipients - Insider information recipients include company directors, senior management, and individuals involved in significant decision-making processes [9][10]. - Shareholders holding more than 5% of shares and their related parties are also considered insider information recipients [9][10]. Group 4: Confidentiality Obligations - Insider information recipients are obligated to maintain confidentiality and are prohibited from trading based on insider information [20][21]. - The company must ensure that confidentiality agreements are in place with external parties who may access insider information [22][23]. Group 5: Compliance and Accountability - The company is required to conduct self-inspections regarding insider trading activities and report any violations to regulatory authorities [26][27]. - Violations of insider information regulations may result in penalties and potential criminal charges for responsible individuals [27][28].

Group 1 - The company establishes rules to regulate the behavior of Shenzhen Huabao New Energy Co., Ltd. and ensure shareholders can exercise their rights according to relevant laws and regulations [1][2] - The company must hold annual shareholder meetings within six months after the end of the previous fiscal year and temporary meetings within two months when required by law [2][3] - Legal opinions must be obtained for the legality of the meeting procedures, participant qualifications, and voting results [2][4] Group 2 - Independent directors can propose temporary shareholder meetings, and the board must respond within ten days [3][5] - Shareholders holding more than 10% of shares can request the board to convene a temporary meeting, and the board must respond within ten days [4][5] - If the board fails to convene a meeting, the audit committee or shareholders can independently call for a meeting [5][6] Group 3 - Proposals for the shareholder meeting must be within the scope of the meeting's authority and comply with legal requirements [13][14] - The company must notify shareholders of the meeting at least 20 days in advance for annual meetings and 15 days for temporary meetings [15][16] - The notice must include details such as meeting time, location, agenda, and the rights of shareholders to attend and vote [16][17] Group 4 - The company must ensure that the meeting is held at its registered location and provide options for online voting [19][20] - Shareholders can attend in person or by proxy, and the voting process must be clearly outlined in the notice [19][20] - The meeting must maintain order, and any disruptions should be reported to the relevant authorities [21] Group 5 - The company must keep detailed records of the meeting, including attendance, proposals, and voting results [16][17] - Resolutions must be announced promptly, detailing the voting results and any special notes for proposals that were not passed [16][18] - The company must ensure compliance with laws and regulations regarding the validity of resolutions and the rights of minority shareholders [18][19]

Core Points - The company has established a system to manage the shares held by its directors and senior management, ensuring compliance with relevant laws and regulations [1][2][3] - Directors and senior management are prohibited from transferring their shares under certain conditions, including within one year of the company's stock listing and within six months after leaving the company [2][3] - The maximum amount of shares that directors and senior management can transfer annually is limited to 25% of their total holdings, with specific exceptions [3][4] - Any planned share reductions must be reported to the Shenzhen Stock Exchange 15 trading days in advance, detailing the number of shares, time frame, and reasons for the reduction [4][5] - Directors and senior management must disclose any changes in their shareholdings within two trading days of the change occurring [6][7] - There are specific blackout periods during which directors and senior management are prohibited from trading the company's stock, particularly around the release of financial reports [7][8] - The company’s board secretary is responsible for managing the data and information related to the shareholdings of directors and senior management [7][8] - The company will revise its internal regulations in accordance with any new rules issued by the China Securities Regulatory Commission or the Shenzhen Stock Exchange [8]

Core Points - The document outlines the regulations and responsibilities of the Board Secretary of Shenzhen Huabao New Energy Co., Ltd, emphasizing the importance of compliance with relevant laws and regulations [1][2][3] - The Board Secretary is a senior management position responsible for managing the Board Secretary's office and ensuring proper information disclosure [1][5] - The qualifications for the Board Secretary include necessary financial, management, and legal knowledge, along with a certification from the securities exchange [2][4] Section Summaries General Provisions - The document aims to promote standardized operations within the company and enhance the management and supervision of the Board Secretary's work [1] - The Board Secretary is accountable to the Board and must fulfill obligations as required by laws and the company's articles of association [1] Appointment and Dismissal of the Board Secretary - The Board Secretary must be appointed by the Board of Directors and can be a director, deputy general manager, or financial officer [2][3] - The company must provide valid reasons for dismissing the Board Secretary and must report the dismissal to the Shenzhen Stock Exchange [3][4] Responsibilities and Duties of the Board Secretary - The Board Secretary is responsible for coordinating information disclosure, managing investor relations, and preparing board meetings [5][6] - The Board Secretary must ensure compliance with securities laws and regulations and report any potential violations to the Shenzhen Stock Exchange [5][6] Work Procedures - The Board Secretary must organize meetings, ensure proper documentation, and maintain records for at least ten years [6][7] - The Board Secretary is responsible for managing the disclosure of significant information and must coordinate responses to inquiries from government departments [7][8]

General Principles - The company establishes a system to regulate related party transactions, ensuring fairness in decision-making and protecting the rights of shareholders and creditors [1] - Related party transactions are defined as matters involving the transfer of resources or obligations between the company and its related parties [1][2] Definition of Related Parties - Related parties include both legal entities and natural persons that have a significant stake in the company, such as those holding more than 5% of shares or serving as directors and senior management [2][3] - Specific criteria are outlined for identifying related legal entities and natural persons, including control relationships and familial ties [2][3] Types of Related Party Transactions - The system specifies various types of related party transactions, including asset purchases, external investments, financial assistance, guarantees, leasing, management contracts, and more [3][4] - Transactions that may involve resource or obligation transfers are also included, ensuring comprehensive coverage of potential related party dealings [4] Approval Authority for Related Transactions - Transactions exceeding 30 million yuan or 5% of the company's latest audited net assets require board approval and subsequent shareholder meeting review [9] - The board can approve transactions below specified thresholds without shareholder meeting review, while the general manager has authority for even lower amounts [10][11] Decision-Making Procedures - Related transactions must be reported to the board by any director or senior management with a conflict of interest, regardless of the need for board approval [15] - Independent directors must review related transactions, and the board must ensure that decisions are made based on objective standards [15][16] Pricing of Related Transactions - The pricing of related transactions should adhere to market principles, with prices ideally aligning with those of independent third parties [22][23] - Various pricing methods are outlined, including state pricing, industry pricing, and cost-plus pricing, ensuring transparency and fairness in transaction pricing [23][24] Restrictions on Fund Usage - The company prohibits related parties from occupying its funds or resources and from requiring the company to cover their expenses [25][26] - Measures are in place to prevent the misuse of company resources by shareholders and related parties [26][27] Miscellaneous Provisions - The system will take effect upon approval by the company's shareholder meeting and will be subject to relevant laws and regulations [30][31] - The board is responsible for interpreting and modifying the system as necessary [31]

Meeting Details - The company will hold its third extraordinary general meeting of shareholders on June 26, 2025, at 15:00 [1] - The meeting will be conducted both in-person and via online voting through the Shenzhen Stock Exchange trading system [2] - Shareholders can vote online from 9:15 to 15:00 on the same day [2] Voting Procedures - Shareholders must choose either in-person or online voting for each proposal, and duplicate voting is not allowed [2] - All registered shareholders as of June 20, 2025, are entitled to attend and vote at the meeting [2] - The company will separately count votes from minority investors, defined as those excluding directors, supervisors, senior management, and shareholders holding more than 5% of shares [5] Agenda Items - The meeting will discuss several proposals, including the establishment of employee representative directors, changes to registered capital, and amendments to the company's articles of association [4] - The proposal regarding the establishment of employee representative directors requires a special resolution, needing approval from more than two-thirds of the voting rights present [4] Registration and Attendance - Individual shareholders must present their ID and shareholder account card for registration, while corporate shareholders must provide additional documentation [5] - Registration can also be done via mail or fax, but must be completed by 17:00 on June 25, 2025 [5] Additional Information - The company has provided a detailed guide for participating in online voting, including necessary identity verification steps [6][7] - Contact information for inquiries regarding the meeting is provided, including a dedicated email and phone number [6]