Group 1 - Shenzhen Hongye Geological Technology Co., Ltd. (referred to as Hongye) submitted its Hong Kong IPO prospectus on April 28, which became invalid after six months on October 28, with China Merchants Securities as its sole sponsor [1] - Hongye has over 22 years of experience in geotechnical engineering services in South China since its establishment in 2002 [2] - The company holds a first-class qualification for foundation engineering contracting, along with two second-class qualifications and one class B qualification covering municipal public works, engineering surveying, geotechnical engineering design, and environmental engineering [2]

Core Insights - Shanghai Port Bay (605598) reported a total revenue of 816 million yuan for the first half of 2025, representing a year-on-year increase of 29.34%, while the net profit attributable to shareholders decreased by 9.35% to 66.91 million yuan [1] - The company's gross margin fell to 26.91%, down 26.12% year-on-year, and the net margin decreased to 7.85%, down 32.35% year-on-year [1] - Accounts receivable increased significantly by 47.56% year-on-year, raising concerns about cash flow management [1] Financial Performance - Total revenue for 2025: 816 million yuan, up from 631 million yuan in 2024 [1] - Net profit for 2025: 66.91 million yuan, down from 73.81 million yuan in 2024 [1] - Gross margin: 26.91%, down from 36.43% in 2024 [1] - Net margin: 7.85%, down from 11.60% in 2024 [1] - Accounts receivable: 545 million yuan, up from 369 million yuan in 2024 [1] - Earnings per share: 0.28 yuan, down from 0.31 yuan in 2024 [1] Business Model and Strategy - The company focuses on core business in geotechnical engineering services, aiming to become a global leader in this field [4] - It capitalizes on market opportunities by aligning with national strategies and undertaking significant projects both domestically and internationally, particularly in Southeast Asia and the Middle East [4] - The company emphasizes technological innovation and digital management to enhance operational efficiency and drive growth in emerging industries [4] Investment Returns - The company's return on invested capital (ROIC) was 4.44% last year, indicating weak capital returns compared to a historical median of 11.47% since its listing [3] - The net profit margin was 6.99%, suggesting average value addition from its products or services [3] - The company has faced challenges in maintaining strong investment returns, particularly highlighted by the low ROIC in 2024 [3]

Group 1 - Shanghai Port Bay has experienced a decline for four consecutive trading days, with a cumulative drop of -11.48% [1] - Shanghai Port Bay Infrastructure (Group) Co., Ltd. specializes in providing customized geotechnical engineering comprehensive services, including surveying, design, construction, and monitoring for global clients [1] - E Fund's Emerging Growth Flexible Allocation Fund has entered the top ten shareholders of Shanghai Port Bay, marking a new investment in the first quarter of this year, with a year-to-date return of 37.48%, ranking 208 out of 2282 in its category [1] Group 2 - The fund manager of E Fund's Emerging Growth Flexible Allocation is Cai Rongcheng, who holds a master's degree in finance and has served in various roles within E Fund, including assistant fund manager and industry researcher [2][3] - E Fund was established in April 2001 and has a total of 11 shareholders, with significant stakes held by Yingfeng Group Co., Ltd., Guangdong Yuecai Trust Co., Ltd., and GF Securities Co., Ltd., each holding 22.65% [3]