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.

Core Viewpoint - The company has successfully signed a subcontract for the Saudi Qiddiya Cultural and Arts Center project, amounting to 650 million Saudi Riyals (approximately 1.23 billion RMB), which represents 6.7% of the company's most recent audited revenue [1] Group 1 - The project will become an important cultural landmark in Saudi Arabia [1] - The successful signing of the project reflects the positive outlook of the Saudi market and customer recognition of the "Jinggong International" brand [1] - This contract further enriches the company's overseas order reserves and signifies the effectiveness of its overseas market strategy [1] Group 2 - The project has positive implications for the company's deepening layout in the Middle East and expansion into overseas markets [1]

Core Viewpoint - The company has successfully signed a subcontract for the Saudi Qiddiya Cultural and Arts Center project, amounting to 650 million Saudi Riyals (approximately 1.23 billion RMB), which represents 6.7% of the company's most recent audited revenue [1] Group 1 - The project will become an important cultural landmark in Saudi Arabia [1] - The successful signing of the project reflects the positive outlook of the Saudi market and customer recognition of the "Jinggong International" brand [1] - This contract further enhances the company's overseas order reserves and signifies the effectiveness of its overseas market strategy [1] Group 2 - The project has positive implications for the company's deepening presence in the Middle East and expansion into overseas markets [1]

Core Insights - The event focused on the integration of large sports venue steel structure design and intelligent construction, showcasing advanced technologies such as BIM, robotic layout, and intelligent welding [1][4] Group 1: Event Overview - The exchange and observation meeting was held at the Yuhang International Sports Center in Zhejiang, attended by nearly 200 experts, scholars, and industry representatives from the steel structure field [1][4] - The event was organized by the China Building Metal Structure Association and hosted by China State Construction Engineering Corporation [1] Group 2: Technological Innovations - The integration of BIM models with robotic layout technology allows for high-precision automatic measurement and positioning, achieving centimeter to millimeter-level accuracy [1] - The project team utilized three-dimensional modeling software to simulate and optimize the assembly process of key components like steel trusses [4] - Seven construction technologies were applied to enhance construction efficiency, along with the installation of high-precision wireless sensors for real-time structural monitoring [4] Group 3: Project Details - The Yuhang International Sports Center project covers approximately 524,000 square meters and is part of Zhejiang's major "thousand projects, trillion" initiative [4] - It features the world's largest radial double-layer cable membrane structure football stadium and is the first professional football venue in China designed to meet Premier League and La Liga standards [4]

Core Viewpoint - Anhui Fuhuang Steel Structure Co., Ltd. has established an integrated service system covering design, production, and construction, leveraging its top-level qualifications in construction and design [1] Group 1: Company Achievements - The company has implemented the EPC engineering general contracting model, achieving a reduction in carbon emissions by 14% to 40% throughout the entire lifecycle of projects, aligning with the national "dual carbon" strategy [1] - Fuhuang Steel Structure focuses on low-rise residential buildings, integrated housing, and reinforcement and renovation projects, utilizing layered assembly technology and standardized component systems [1] - The company has successfully completed projects such as the Huai Bei Lin Huan Coal Mine resettlement site and Saudi medical cabins, with a modular design and factory production model that significantly shortens construction time and achieves a cost control accuracy of 95% [1] Group 2: Technological Integration - In the public building sector, projects like Hefei Ziyun Plaza have integrated BIM technology and intelligent construction processes, resulting in complex structures that are both functional and iconic, thereby enhancing building quality [1] - The company plans to deepen its digital management system and promote the standardization and internationalization of engineering services in the future [1]

Group 1: Company Strategy and Development Plans - In 2025, the company will implement the "EPC General Contracting + No. 1 Project" dual-engine strategy, focusing on high-quality development and market positioning in new prefabricated EPC contracting [2][3] - The company aims to become the leading brand in green low-carbon prefabricated steel structures in China, focusing on differentiated development in the Yangtze River Delta and Pearl River Delta regions [3] - The company will actively respond to the national "dual carbon" goals by developing new energy businesses and expanding into the green low-carbon energy market through integrated construction and operation models [3][10] Group 2: Production Capacity and Orders - The company currently has a steel structure production capacity of approximately 600,000 tons, with plans to increase total capacity to 700,000 tons in the future [5] - In the first half of 2025, the company signed new contracts totaling RMB 341,065.55 million, with significant projects including the Qianjiang Century City Smart Comprehensive Innovation Park EPC project valued at RMB 1.183 billion [6] Group 3: Market Demand and Trends - The downstream demand for steel structures includes industrial buildings, public buildings, high-rise buildings, bridges, and residential areas, with increasing demand from emerging sectors like renewable energy and artificial intelligence [7] - The proportion of steel structure residential buildings in China is currently low, but it is expected to increase due to technological advancements and policy support [7] Group 4: Technological Innovation and R&D - The company has invested significantly in technological innovation, focusing on areas such as prefabricated steel structures and digital technologies, resulting in ten core technologies that are at the world advanced level [12] - The company is also advancing smart manufacturing and digital management in its production processes, including the establishment of a digital factory for new prefabricated steel structures [13] Group 5: Accounts Receivable Management - The company emphasizes the collection of accounts receivable through various measures, including credit assessments of clients and legal actions against serious defaulters [9] - The main clients are government entities and large state-owned enterprises, with positive debt relief measures expected to enhance local governments' financial capabilities, aiding in faster receivables recovery [9] Group 6: Future Plans in Renewable Energy - The company is actively developing its photovoltaic business in line with the central government's "dual carbon" strategy, with projects like the 110MW agricultural photovoltaic power station expected to enhance its market presence [10]

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Core Viewpoint - The company has successfully acquired a residential land plot in Shanghai, aligning with national initiatives to promote high-quality housing construction and the application of green integrated building technologies [1][3]. Group 1: Land Acquisition Details - The acquired land is located in the Minhang District, specifically the MHC10402 unit 24A-06A plot [1]. - The land is designated for residential use, with a total area of 9,319.60 square meters and a floor area ratio of 1.6 [5]. - The land was auctioned with a starting price of 491.48 million yuan and was successfully acquired for 546.48 million yuan [5]. Group 2: Strategic Implications - The acquisition allows the company to independently showcase the application of prefabricated construction in the high-quality housing sector, promoting its brand through the "five good" principles: good design, good service, good quality, good construction, and smart buildings [3]. - The funding for the land acquisition and subsequent development will come from the company's own funds, which are currently sufficient, ensuring no significant impact on the company's financial status or operational results [3].

Core Viewpoint - The company has successfully acquired land use rights in Shanghai to develop high-quality residential buildings that meet the "good house" standards promoted by the Ministry of Housing and Urban-Rural Development, aligning with national goals for improving construction quality and living standards [1][2]. Group 1: Land Acquisition Details - The company’s subsidiary, Zhejiang Jinggong Steel Structure Group Co., Ltd., has won a bid for a residential land plot in Shanghai, which will be used for developing high-quality residential buildings [1]. - The land was auctioned by the Shanghai Minhang District Planning and Natural Resources Bureau, and there are no related party transactions involved [1]. Group 2: Strategic Impact and Financial Position - The land acquisition allows the company to independently showcase the application of prefabricated construction in the "good house" sector, enhancing the brand's promotion in this field through five key principles: good design, good service, good quality, good construction, and smart buildings [2]. - The funding for the land acquisition and subsequent development will come from the company's own funds, which are currently abundant, ensuring that the financial status and operational results of the company will not be significantly impacted [2].

Core Viewpoint - The company successfully acquired a residential land plot in Shanghai for 546 million yuan, which will be developed into high-quality residential buildings meeting the "good house" standards [1] Group 1: Land Acquisition - The company’s subsidiary, Zhejiang Jinggong Steel Structure Group Co., Ltd., won the bid for a residential land plot located in Minhang District, Shanghai [1] - The transaction price for the land plot was 546 million yuan [1] Group 2: Development Strategy - The company aims to autonomously showcase the application of prefabricated buildings in the construction of "good houses" [1] - The development will focus on five key concepts: good design, good service, good quality, good construction, and smart buildings [1] - This initiative is expected to enhance the company's brand promotion in the "good house" construction sector [1]