Core Viewpoint - Zhongkong Technology Co., Ltd. is accelerating the development of emerging businesses such as industrial AI and robotics, which are expected to become the main growth drivers for the company in the future [1][2]. Financial Performance - In the first half of 2025, the company achieved operating revenue of 3.83 billion yuan and a net profit attributable to shareholders of 354 million yuan [1]. Industrial AI Development - The company is advancing its "AllinAI" strategy, integrating and upgrading industrial AI technologies, and has made significant progress in the development and application of the TPT time-series model, which has been deployed in over 110 real production scenarios [2]. - The launch of TPT2, a global first industrial agent generation platform based on a time-series hybrid expert model, marks a significant upgrade from the previous TPT, enhancing the efficiency of intelligent application development [2]. Robotics Business - The company is focusing on the "AI + platform + hazardous source inspection and operation, supply chain logistics, humanoid robot equipment" strategy to promote the large-scale application of process industrial robot solutions [2]. - The new generation intelligent inspection robot ARAMCOBOTGEN2, developed in collaboration with Saudi Aramco, has entered the deployment phase, and the industry’s first flying shuttle robot has been successfully delivered to Sinopec [3]. International Expansion - The company is actively pursuing a global strategy, achieving positive results in Southeast Asia, the Middle East, Africa, Central Asia, Latin America, and North America, including landmark projects with major industry players [4]. - The company has entered the supplier lists of significant enterprises such as PEMEX and CEMEX, and has reached key milestones with leading companies like Petrobras and Suzano [4]. Competitive Advantage - With over 30 years of technical accumulation in the process industry, the company has established strong data resources and industry insights, creating significant competitive barriers [4]. - The company's distributed control system (DCS) has maintained the number one market share in China for fourteen consecutive years, serving over 37,000 customers and deploying more than 100,000 control systems, accumulating approximately 100EB of industry data resources [4].

Financial Performance - The company reported a total revenue of 1.644 billion yuan for the first half of 2025, an increase of 8.45% year-on-year [1] - The net profit attributable to shareholders reached 1.8654 million yuan, showing a significant increase of 109.95% compared to the previous year [1] - The gross profit margin improved to 18.38%, up by 1.34% year-on-year, while the net profit margin turned positive at 0.12%, a rise of 109.56% [1] Cost and Efficiency - Total expenses for sales, management, and finance amounted to 197 million yuan, accounting for 11.99% of revenue, a decrease of 11.9% year-on-year [1] - The company’s operating cash flow per share increased dramatically by 911.15% to 0.07 yuan [1] Debt and Assets - The company’s interest-bearing liabilities decreased by 38.79% to 915 million yuan, indicating improved debt management [1] - Cash and cash equivalents fell by 26.44% to 415 million yuan, raising concerns about liquidity [1] Strategic Collaboration - The company is collaborating with Haier to leverage each other's strengths in technology and promote smart manufacturing solutions [6] - The partnership aims to integrate New Times' control technology with Haier's industrial internet platform, enhancing digital solutions for clients [6][7] Market Position - The company has been recognized for its historical performance, with a median ROIC of 2.96% over the past decade, indicating relatively weak investment returns [3] - The most significant fund holding the company’s shares is the Hai Fu Tong CSI 2000 Enhanced Strategy ETF, which recently increased its position [5]

Financial Performance - Company reported total revenue of 3.83 billion yuan for the first half of 2025, a decrease of 9.92% year-on-year [1] - Net profit attributable to shareholders was 354 million yuan, down 31.46% year-on-year [1] - Gross margin was 32.08%, a decline of 3.47% compared to the previous year [1] - Net margin decreased to 9.29%, down 24.59% year-on-year [1] - Total receivables reached 3.71 billion yuan, an increase of 25.12% year-on-year, with receivables accounting for 332.24% of net profit [1][4] Business Model and Strategy - Company relies heavily on research and development to drive performance, focusing on industrial automation and safety management [3][6] - The introduction of the TPT model aims to enhance proactive risk management in the energy and chemical sectors [6][11] - Company is expanding its industrial IoT technology to facilitate smart transformation in process industries [7][8] Recent Developments - Company launched the Plantbot robot solution, which has shown significant application results in hazardous environments [9] - TPT model has been successfully implemented in various industries, achieving substantial operational efficiency improvements [10][11] - Upcoming release of TPT 2.0 aims to integrate multiple technologies for enhanced decision-making capabilities [10] Market Position and Investor Interest - Major funds have increased their holdings in the company, indicating positive market sentiment [5] - Analysts project the company's performance for 2025 to reach 1.211 billion yuan, with an average earnings per share of 1.53 yuan [4]

Financial Performance - The company reported total revenue of 206 million yuan for the first half of 2025, a decrease of 28.25% year-on-year [1] - The net profit attributable to shareholders was -23.72 million yuan, down 234.24% compared to the previous year [1] - The gross margin was 18.33%, reflecting a decline of 20.31% year-on-year, while the net margin was -18.29%, a significant drop of 377.01% [1] - The company’s operating cash flow per share was -0.3 yuan, an increase of 54.07% year-on-year, indicating worsening cash flow [1] Accounts Receivable and Debt - Accounts receivable reached 201 million yuan, representing an increase of 8.99% year-on-year, with accounts receivable to net profit ratio at 443.77% [1][5] - The company’s interest-bearing debt decreased to 150 million yuan, down 19.03% year-on-year [1] Cost Structure - Total selling, administrative, and financial expenses amounted to 30.97 million yuan, accounting for 15.02% of revenue, which is an increase of 24.08% year-on-year [1] - The company’s return on invested capital (ROIC) was 2.7%, indicating weak capital returns [3] Cash Flow and Liquidity - The company has a healthy cash asset position, but the cash flow situation is concerning, with cash assets to current liabilities ratio at 46.33% [5] - The average operating cash flow over the past three years relative to current liabilities is only 4.81% [5] Business Model and R&D - The company’s performance is primarily driven by research and development, necessitating a deeper analysis of the underlying factors [4]

Core Insights - Chengdu Qingyang District Changrong Shi Trading Department has been established as an individual business entity with a registered capital of 10,000 RMB [1] - The legal representative of the company is Chen Shurong [1] Business Scope - The company engages in the sale of mechanical parts and components [1] - It also sells industrial automatic control system devices and metal products [1] - The business includes technical services, development, consulting, exchange, transfer, and promotion [1] - Maintenance of electronic and mechanical equipment (excluding special equipment) is part of its operations [1] - The company is involved in the sale of molds, professional design services, industrial design services, and automotive parts research and development [1] - Retail of automotive spare parts, paper products, plastic products, and wholesale of hardware products are included in its business activities [1] - The company operates independently based on its business license, except for projects that require approval [1]

Core Insights - The 2025 Zhongkong Technology global product launch and industrial AI innovation conference was successfully held in Hangzhou, introducing the TPT2 model, a revolutionary industrial AI tool tailored for process industries [1][2] - TPT2 is based on industrial time-series data and features strong generalization and closed-loop application capabilities, marking a significant advancement in industrial AI [1][3] Group 1: TPT2 Model Features - TPT2's core value lies in three aspects: intensive empowerment, expert-level interaction, and full-link closed-loop capabilities [1] - It utilizes the SCOPES capability matrix to disrupt the traditional "one scenario, one model" development approach, enabling root cause identification and precise predictions through conversational interaction [1][3] - The model supports a full process loop of "perception-recognition-decision-execution," overcoming technical bottlenecks in less human and unmanned production [1][3] Group 2: Industry Impact and Collaboration - Zhongkong's founder, Chu Jian, emphasized that TPT2 is not merely a generic model but is deeply integrated with industrial scenarios to address key issues such as safety, quality, cost, efficiency, and low carbon [2] - The establishment of the "Industrial AI Data Alliance" was announced, involving over 130 industry leaders to promote data sharing, value co-creation, and ecological construction [2] - The alliance aims to facilitate standardized governance of industrial data and cross-scenario circulation, enhancing the pre-training and application of industrial large models [2] Group 3: Performance and Future Outlook - TPT2 has demonstrated a prediction accuracy of 99.79% in a project with PetroChina, generating an annual net profit exceeding 3.15 million yuan per furnace [3] - The company maintains a stable R&D expense ratio of over 10%, with a projected R&D investment of 978 million yuan in 2024, reflecting a year-on-year increase of 7.7% [3] - TPT2 is expected to tap into a market space exceeding 10 billion yuan in the process industry, driving the evolution of industrial software towards open collaboration [3]

Group 1: Core Insights - The integrated drive and control system combines servo drives and motion control into a single unit, offering advantages such as reduced cabling, space savings, lower costs, and higher efficiency [1][2] - The market for integrated drive and control systems is experiencing steady growth, with global sales projected to reach approximately 133,000 units in 2024, representing a year-on-year increase of 10.9% [5][6] - In China, the sales of integrated drive and control systems are expected to reach 92,200 units in 2024, a year-on-year growth of 11.8%, accounting for 69.5% of global sales [6][8] Group 2: Industry Development - The industry has evolved through different stages, with the 1.0 phase focusing on hardware integration and the 2.0 phase emphasizing software integration and multi-functionality [4][5] - The integrated drive and control system has seen applications in various sectors, including injection molding robots, industrial robots, machine tool manipulators, semiconductor equipment, and engraving machines [12][14] - The competition landscape shows a clear distinction between foreign and domestic manufacturers, with foreign firms holding a technological advantage and domestic firms still in the early stages of development [8][9] Group 3: Market Trends - The demand for integrated drive and control systems is expected to grow due to favorable policies and increasing market needs for performance and cost efficiency [18][19] - The competition is intensifying, with foreign manufacturers maintaining a stronghold in high-end markets while domestic firms are gradually penetrating these segments [18] - Future developments will see the transition to a 3.0 phase, where integrated systems will possess intelligent decision-making capabilities, integrating technologies such as AI and IoT [19]

Core Viewpoint - The company has decided to cancel 883,500 shares of unvested restricted stock from its 2024 incentive plan due to unmet performance targets at the company level [4][5]. Group 1: Decision and Process - The company held meetings of the Board of Directors and Supervisory Board on August 29, 2025, to approve the cancellation of unvested restricted stock [1][2]. - The incentive plan was previously approved by the shareholders, and the Board was authorized to determine the grant date and manage the necessary procedures for granting restricted stock [3]. Group 2: Specifics of the Cancellation - A total of 883,500 shares of restricted stock will be canceled because the company did not meet the performance targets set for the first vesting period [4]. - The performance assessment results indicated that the company's performance did not meet the required targets, leading to the complete cancellation of the restricted stock for the year [4]. Group 3: Impact on the Company - The cancellation of the restricted stock will not have a material impact on the company's financial condition or operational results [4]. - The stability of the management team and the continuation of the equity incentive plan will not be affected by this cancellation [4]. Group 4: Supervisory Board and Legal Opinions - The Supervisory Board confirmed that the cancellation of the unvested restricted stock complies with relevant laws and regulations, and does not harm shareholder interests [5]. - Legal opinions from Beijing King & Wood Mallesons affirm that the cancellation aligns with the Company Law, Securities Law, and the regulations governing equity incentives [5].

Core Viewpoint - Zhongkong Technology Co., Ltd. officially launched the TPT2 time-series pre-trained transformer model, which focuses on the deep integration of process industry and artificial intelligence, marking a significant step towards large-scale application and implementation in the market [1][2]. Group 1: Product Launch and Market Response - TPT2 has received strong market recognition with 518 pre-ordering companies and 112 units sold as of August 28, alongside 3,268 online registered users, indicating a positive reception from customers [1]. - The model is designed specifically for the process industry, utilizing unique time-series data algorithms to achieve closed-loop applications across various production scenarios, enhancing production safety, product quality, and energy efficiency [2]. Group 2: Industry Position and Strategic Initiatives - Zhongkong Technology is leveraging its extensive customer base of over 30,000 to accumulate industrial data, emphasizing the importance of implementation alongside data, algorithms, and computing power [2]. - The company has successfully implemented over 100 projects nationwide with TPT since last year, including significant projects with major state-owned enterprises like Sinopec and China Coal Group, which serve as benchmarks for AI integration in industrial manufacturing [3]. Group 3: Technological Advancements and Competitive Edge - TPT2 represents a core value upgrade through three dimensions: centralized empowerment, penetrating data value layers, and overcoming traditional development models, thus providing a solid technical foundation for automation and intelligent transformation in complex industrial environments [3]. - The model integrates multiple technological systems, evolving from traditional tools to intelligent agents capable of proactive anomaly detection, risk assessment, and autonomous decision-making [3]. Group 4: Financial Performance and R&D Investment - Zhongkong Technology maintains a high R&D investment rate of over 10% for several years, supporting product innovation and industry leadership, while also optimizing management to enhance operational efficiency [4]. - The company's overall expense ratio has decreased, with management expenses around 5% and sales expenses around 9%, positioning it favorably within the industry [4].

Core Insights - Company reported a revenue of 3.83 billion yuan and a net profit of 354 million yuan for the first half of 2025, indicating a focus on emerging businesses like industrial AI and robotics [1] - The company is advancing its "All in AI" strategy, integrating AI capabilities into its product and technology systems, and has made significant progress in the development and application of its TPT model [2] - The launch of TPT2, a platform for generating industrial agents, marks a significant upgrade, enhancing the efficiency of developing and implementing intelligent applications [3] - The robotics segment is also showing positive growth, with successful deployments of new inspection robots and significant project wins in the industrial robotics market [3] - The company is actively expanding its international presence, securing key projects in various global markets, which supports its long-term growth strategy [4] - The company has built a competitive edge through extensive data assets and industry knowledge accumulated over 30 years, which is crucial for the development of industrial AI models [5] - The company maintains the top market share in the domestic distributed control system (DCS) sector for 14 consecutive years, with a broad customer base and significant data resources supporting its AI initiatives [6] Group 1 - Company achieved a revenue of 3.83 billion yuan and a net profit of 354 million yuan for H1 2025, focusing on industrial AI and robotics [1] - The "All in AI" strategy is being deepened, with advancements in the TPT model for industrial applications [2] - TPT2 platform enhances the development and implementation of industrial solutions through natural language commands [3] Group 2 - Robotics business is expanding with successful deployments and project wins, enhancing market competitiveness [3] - International expansion is underway, with significant projects secured in various regions, supporting long-term growth [4] - The company has a competitive advantage due to extensive data assets and industry experience, essential for AI model development [5] Group 3 - The company holds the top market share in DCS for 14 years, with a wide customer base and substantial data resources for AI applications [6]