Group 1 - The company Shanghai ShenKai Petroleum and Chemical Equipment Co., Ltd. has approved the acquisition of 51% equity in Beijing Blue Ocean Zhixin Energy Technology Co., Ltd. through cash payment [1][2] - The acquisition agreement was signed with the counterparties Liu Guande, Ma Guangchun, and Gao Zhujun, and the total consideration for the acquisition is 39 million RMB [1][2] - The registration and filing procedures for the business change related to Blue Ocean Zhixin have been completed, and the company has received the updated business license from the Beijing Chaoyang District Market Supervision Administration [2] Group 2 - The first phase payment of 39 million RMB for the equity transfer was made to the counterparties on August 28 and August 29, 2025, as per the terms of the acquisition agreement [2]

Core Viewpoint - The company, Shanghai ShenKai Petroleum Chemical Equipment Co., Ltd., has announced that it will not provide financial assistance or compensation to investors participating in its stock issuance through a simplified procedure [1] Group 1 - The company has approved the issuance of stocks to specific investors in a simplified manner during its 2025 annual meeting [1] - The company guarantees that there are no commitments to ensure minimum returns or any other agreements that would imply such guarantees to the participating investors [1] - The company confirms that it does not provide financial assistance or compensation directly or through related parties to the investors participating in the stock subscription [1]

Core Viewpoint - ShenKong Co., Ltd. (002278.SZ) is consolidating its leading position in the oil and gas equipment industry by raising up to 220 million yuan through a simplified procedure for specific investors, aimed at enhancing competitiveness and optimizing capital structure [1][2]. Fundraising and Projects - The company plans to use the raised funds for a high-end marine engineering equipment manufacturing base project, acquiring 51% of Blue Ocean Zhixin, and supplementing working capital [2][4]. - This marks the first financing plan since the company's IPO in 2009, with previous IPO funds of 734 million yuan fully utilized [2]. High-end Marine Engineering Equipment Manufacturing Base - The project has a construction period of 1.5 years and a total investment of 110 million yuan, expected to produce 400 sets of offshore wellhead equipment and other advanced systems annually [3]. - Upon reaching full production, the project is projected to generate annual revenue of 242 million yuan and a net profit of approximately 20.48 million yuan, with a gross margin of 30.88% and a net margin of 8.45% [3]. Acquisition of Blue Ocean Zhixin - The acquisition of 51% of Blue Ocean Zhixin is valued at 60 million yuan, with the company expected to achieve a cumulative net profit of no less than 54 million yuan over three years from 2025 to 2027 [4]. - The valuation of Blue Ocean Zhixin's 100% equity is approximately 120 million yuan, reflecting a significant increase compared to the net assets on the consolidated financial statements [4]. Financial Performance - In Q1 2025, the company reported revenues of 202 million yuan and a net profit of 18.46 million yuan, marking year-on-year increases of 41.78% and 434.81%, respectively [1][7]. - The company’s international market strategy has led to overseas revenue of 161 million yuan in 2024, accounting for 21.91% of total revenue [7]. Research and Development - The company emphasizes R&D, with 72.36 million yuan invested in 2024, representing 9.87% of revenue, and a workforce of 207 R&D personnel [8]. - In Q1 2025, R&D expenses increased by 9.78% to 15.86 million yuan, accounting for 7.86% of revenue [8].

Core Viewpoint - The company emphasizes the accuracy and completeness of its quarterly report, ensuring no false records or misleading statements are present [2][3]. Financial Data Summary - The quarterly report has not been audited [3]. - The company does not require retrospective adjustments or restatements of previous accounting data [3]. - There are no non-recurring profit and loss items applicable for the reporting period [3]. - The company reported significant increases in sales orders and revenue, leading to a substantial rise in net profit compared to the previous year [8][11]. Shareholder Information - As of March 31, 2025, the company has repurchased 1,420,000 shares, representing 0.39% of the total share capital [8]. - The first phase of the employee stock ownership plan includes 11 valid holders as of March 31, 2025, with a total of 3,500,000 shares held, accounting for 0.96% of the total share capital [11][12]. - A total of 2,140,500 shares have been sold in the secondary market by the plan holders [11]. Other Important Matters - The funding for the employee stock ownership plan comes from employees' legal salaries, self-raised funds, and other legally permitted methods [10]. - The company will not grant any expired rights from the employee stock ownership plan to employees, and the management committee will sell the remaining shares based on market conditions [12].