Core Insights - A new company, Sheyang Lianyue Machinery Service Co., Ltd., has been established with a registered capital of 50,000 RMB [1] Business Scope - The company is involved in various licensed projects including road cargo transportation (excluding hazardous goods), urban construction waste disposal, construction engineering, and residential interior decoration [1] - General projects include machinery equipment leasing, construction machinery sales, transportation packaging services, and engineering management services [1] - The company also offers services related to urban waste management, landscaping, and solid waste treatment [1]

Group 1 - The core business of the company primarily revolves around hydraulic supports for coal mining equipment, providing comprehensive aftermarket services such as maintenance, remanufacturing, spare parts supply management, and second-hand equipment rental and sales [2] - As of October 10, the number of shareholders of the company increased by 2.20% to 9,338, with an average of 4,860 circulating shares per person, which decreased by 2.15% [2] - For the first half of 2025, the company reported a revenue of 503 million yuan, a year-on-year decrease of 11.74%, and a net profit attributable to the parent company of 40.35 million yuan, down 48.87% year-on-year [2] Group 2 - On October 15, the company's stock rose by 0.76%, with a trading volume of 28.7353 million yuan [1] - The financing buy-in amount on the same day was 1.638 million yuan, while the financing repayment was 3.3809 million yuan, resulting in a net financing buy-in of -1.7429 million yuan [1] - The total financing and securities lending balance as of October 15 was 56.689 million yuan, accounting for 3.14% of the circulating market value, which is above the 70th percentile level over the past year [1] Group 3 - The company has cumulatively distributed dividends amounting to 42.104 million yuan since its A-share listing [3]

Group 1 - The core viewpoint of the news is that Su Da Co., Ltd. experienced a decline in stock price and trading volume, with significant financing activities indicating a high level of market interest despite recent financial performance challenges [1][2]. Group 2 - On October 13, Su Da Co., Ltd. saw a stock price drop of 1.43%, with a trading volume of 32.29 million yuan. The financing buy-in amount was 2.73 million yuan, while the financing repayment was 3.37 million yuan, resulting in a net financing buy of -0.64 million yuan [1]. - As of October 13, the total financing and securities balance for Su Da Co., Ltd. was 58.67 million yuan, accounting for 3.30% of the circulating market value, which is above the 70th percentile level over the past year, indicating a high position [1]. - The company has not engaged in any short selling activities on October 13, with a short selling amount of 0.00 yuan and a short selling balance of 0.00 yuan, placing it in the 90th percentile level over the past year, also indicating a high position [1]. Group 3 - Su Da Co., Ltd. is primarily engaged in the hydraulic support for coal mining equipment, providing services such as maintenance and remanufacturing, spare parts supply management, and second-hand equipment rental and sales. The revenue composition includes 42.21% from maintenance and remanufacturing, 23.83% from spare parts supply management, 15.27% from fluid connection products, 11.77% from second-hand equipment rental and sales, and 6.33% from specialized contracting services [2]. - As of September 30, the number of shareholders for Su Da Co., Ltd. was 9,137, a decrease of 1.94% from the previous period, with an average of 4,966 circulating shares per person, an increase of 1.98% [2]. - For the first half of 2025, Su Da Co., Ltd. reported a revenue of 503 million yuan, a year-on-year decrease of 11.74%, and a net profit attributable to shareholders of 40.35 million yuan, a year-on-year decrease of 48.87% [2]. Group 4 - Since its A-share listing, Su Da Co., Ltd. has distributed a total of 42.10 million yuan in dividends [3].

Group 1 - The shareholder Yangzhong Xugong Industrial Investment Partnership plans to reduce its holdings in Suda Co., Ltd. by up to 760,000 shares (1% of total share capital) through centralized bidding and up to 1,520,000 shares (2% of total share capital) through block trading within 90 natural days starting from October 13, 2025 [1] - The company's board member and general manager, Liu Runping, intends to reduce his holdings by up to 130,000 shares (0.17% of total share capital) during the same period [1] - The vice president, Li Jing, plans to reduce his holdings by up to 37,500 shares (0.05% of total share capital) within the specified timeframe [1] Group 2 - Former vice president Liu Xinyang plans to reduce his holdings by up to 129,200 shares (0.17% of total share capital) within the same 90-day period [2] - Former vice president Dong Xiaobo intends to reduce his holdings by up to 37,500 shares (0.05% of total share capital) during the same timeframe [2] - For the first half of 2025, Suda Co., Ltd.'s revenue composition is as follows: 42.21% from repair and remanufacturing, 23.83% from spare parts supply management, 15.27% from fluid connection components, 11.77% from second-hand equipment rental and sales, and 6.33% from full lifecycle specialized contracting [2]

Summary of Key Points Core Viewpoint - The report outlines the verification opinion of Guosen Securities regarding the listing and circulation of part of the previously issued shares of Zhengzhou Suda Industrial Machinery Service Co., Ltd. prior to its initial public offering (IPO) [1][19]. Group 1: Overview of Share Issuance - The company received approval from the China Securities Regulatory Commission for an initial public offering of 19,000,000 shares, increasing the total share capital from 57,000,000 to 76,000,000 shares [1]. - As of the date of the verification opinion, there have been no changes in the total number of shares due to events such as share issuance, buybacks, or stock dividends [2]. Group 2: Shareholder Commitments for Share Lock-up - A total of 22 shareholders applied for the release of share lock-up, committing not to transfer or manage their shares for 12 months post-IPO [2][3]. - Specific commitments were made by major shareholders, including Zhengzhou Coal Mining Machinery Group Co., Ltd. and others, to adhere to these restrictions and face legal consequences for violations [2][3]. Group 3: Lock-up Period and Transfer Restrictions - Shareholders who are directors or senior management have additional restrictions on transferring shares during their tenure and for six months after leaving their positions [4][6]. - The lock-up period may be extended if the company's stock price falls below the IPO price for a specified duration [4][6]. Group 4: Measures for Stabilizing Stock Price - The company has a plan to stabilize its stock price, which includes holding investor meetings and implementing buyback measures if certain conditions are met [8][9]. - The plan requires significant shareholder approval and outlines specific financial thresholds for buybacks [8][9]. Group 5: Avoidance of Business Competition - Zhengzhou Coal Mining Machinery Group Co., Ltd. has committed to avoiding direct competition with Suda in specific business areas, ensuring no substantial overlap in operations [12][13]. - The company has taken steps to eliminate any competitive relationships with its subsidiaries [12][13]. Group 6: Compliance and Verification - Guosen Securities has verified that the application for the release of lock-up shares complies with relevant regulations and that the information disclosed by the company is accurate and complete [19].

Core Viewpoint - Zhengzhou Suda Industrial Machinery Service Co., Ltd. has announced the lifting of restrictions on the sale of shares held by certain shareholders, following its initial public offering (IPO) and listing on the Shenzhen Stock Exchange. The company confirms that the lifting of restrictions complies with relevant regulations and commitments made by shareholders [1][19]. Summary by Sections 1. Overview of Shares Before IPO - The company has a total of 57,000,000 restricted shares that were issued prior to the IPO. Since the listing, there have been no changes in the total number of shares due to events such as issuance, repurchase, or stock dividends [1][19]. 2. Shareholders' Commitments for Lifting Restrictions - A total of 22 shareholders have applied to lift the restrictions on their shares. Key commitments include: - Zhengzhou Coal Mining Machinery Group Co., Ltd. and Shanghai Qiyun Investment Management have committed not to transfer or manage their shares for 12 months post-listing [2][3]. - Other shareholders, including Ningbo Junrun Henghui Venture Capital and others, have made similar commitments for the same duration [2][3]. - Directors and senior management have also committed to not transferring their shares during the same period, with specific conditions for share transfers after the lock-up period [3][5]. 3. Conditions for Lifting Restrictions - The lifting of restrictions is contingent upon the stock price not falling below the IPO price for a continuous period of 20 trading days or at the end of the six-month period post-listing [3][14]. - If any commitments are violated, the profits from the sale of shares will be returned to the company, and legal actions may be taken against the violators [2][4]. 4. Shareholding Structure Changes - Following the lifting of restrictions, the shareholding structure will change, with the number of restricted shares decreasing significantly. The total number of unrestricted shares will increase from 19,000,000 to 45,382,821, representing 59.71% of the total share capital [18][19]. 5. Price Stabilization Measures - The company has outlined measures to stabilize its stock price, including potential share buybacks and communication with investors regarding the company's performance and strategies [7][8]. 6. Compliance and Verification - The sponsor has verified that the lifting of restrictions complies with relevant regulations and shareholder commitments, ensuring that the information disclosed is accurate and complete [19].

Group 1 - The stock of Suda Co., Ltd. dropped by 5.75% on August 22, with a trading volume of 202 million yuan [1] - On the same day, Suda Co. had a financing purchase amount of 22.29 million yuan and a net financing purchase of 4.80 million yuan, with a total financing balance of 84.72 million yuan, accounting for 10.07% of the circulating market value [1] - The company specializes in hydraulic supports for coal mining, providing comprehensive aftermarket services including maintenance, remanufacturing, and parts supply [1] Group 2 - As of August 20, the number of shareholders of Suda Co. increased by 14.93% to 5,389, while the average circulating shares per person decreased by 12.99% to 3,525 shares [2] - For the first quarter of 2025, Suda Co. reported a revenue of 16.7 million yuan, a year-on-year decrease of 40.37%, and a net profit attributable to shareholders of 11.02 million yuan, down 64.85% year-on-year [2] Group 3 - Since its A-share listing, Suda Co. has distributed a total of 42.10 million yuan in dividends [3]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $133.1 million, an increase of 11.9% compared to $119 million in Q1 2024 [21] - ODR revenue grew by 21.7%, while GCR revenue declined by 4.5% as part of a strategic shift towards ODR [22] - Gross profit increased by 18.1% from $31.1 million to $36.7 million, with total gross margin rising to 27.6% from 26.1% [22] - Adjusted EBITDA for the quarter was $14.9 million, up 26.5% from $11.8 million in Q1 2024, with an adjusted EBITDA margin of 11.2% [24] - Net income grew by 34.6% to $10.2 million, with earnings per diluted share increasing by 32.8% to $0.85 [24] Business Line Data and Key Metrics Changes - ODR revenue accounted for 67.9% of total revenue in Q1 2025, up from 62.4% in Q1 2024 [22] - ODR gross profit increased by $4 million or 18%, while GCR gross profit rose by $1.6 million or 18.3% [23] - ODR gross margins were 28.9%, slightly down from 29.8% in Q1 2024, primarily due to prior year write-ups [23] Market Data and Key Metrics Changes - The healthcare market is showing signs of recovery, with customers beginning to address deferred maintenance from previous years [32] - Customers are accelerating purchasing decisions due to tariff uncertainties, which has positively impacted project timelines [14][35] Company Strategy and Development Direction - The company is focused on expanding its ODR model, which has increased from less than 21% of total revenue in 2019 to a projected 70-80% for full year 2025 [6][7] - A significant investment in the sales organization has been made, adding approximately 40 new professionals to enhance customer relationships [9] - The company aims to transition strategic customer relationships from reactive to proactive, influencing customer budgets by year-end [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year revenue guidance of $610 million to $630 million and adjusted EBITDA of $78 million to $82 million [19] - The company remains well-positioned to capitalize on growth opportunities in identified metropolitan areas, with a focus on acquisitions to accelerate market entry [19][64] Other Important Information - The company reported a significant improvement in operating cash flow, moving from a $3.9 million outflow in Q1 2024 to a $2.2 million inflow in Q1 2025 [25] - The balance sheet remains strong, with $38.1 million in cash and total debt of $27.5 million [26] Q&A Session Summary Question: Insights on the healthcare market recovery - Management noted that the healthcare vertical has shown stability and is addressing deferred maintenance, leading to long-term capital planning [32][33] Question: Impact of tariffs on project timelines - Management indicated that while tariffs have been neutral, customers are accelerating decisions to avoid future price increases [35] Question: ODR client relationship development - Management explained that account managers are placed based on research and spending patterns, ensuring that only viable accounts receive dedicated attention [40][41] Question: GCR gross margin sustainability - Management aims to maintain GCR gross margins between 28% and 29%, though it may fluctuate based on project mix [46][47] Question: Sales team ramp-up and effectiveness - Management confirmed that the new sales team, primarily on-site account managers, is crucial for growing the ODR segment, with a ramp-up period expected [57][58] Question: M&A strategy and market competition - Management emphasized a patient and disciplined approach to acquisitions, focusing on long-term integration rather than immediate deals [80][81]

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $133.1 million, an increase of 11.9% compared to $119 million in Q1 2024 [20] - ODR revenue grew by 21.7%, accounting for 67.9% of total revenue, up from 62.4% in Q1 2024 [21] - Gross profit increased by 18.1% from $31.1 million to $36.7 million, with total gross margin rising to 27.6% from 26.1% [21][22] - Adjusted EBITDA for the quarter was $14.9 million, up 26.5% from $11.8 million in Q1 2024, with an adjusted EBITDA margin of 11.2% [23] - Net income grew 34.6% to $10.2 million, with earnings per diluted share increasing by 32.8% to $0.85 [23] Business Line Data and Key Metrics Changes - ODR gross profit comprised 71.2% of total gross profit, increasing by $4 million or 18% [22] - GCR revenue declined by 4.5% as part of a strategic shift towards ODR, but GCR gross profit increased by 18.3% due to a focus on higher quality projects [21][22] Market Data and Key Metrics Changes - The healthcare market is showing signs of recovery, with customers beginning to address deferred maintenance from previous years [32] - Customers are accelerating purchasing decisions due to tariff uncertainties, which has positively impacted project timelines [36] Company Strategy and Development Direction - The company is focused on expanding its ODR model, which has increased from less than 21% of total revenue in 2019 to a projected 70-80% for the full year 2025 [6] - A significant investment in sales personnel has been made, adding approximately 40 new professionals to the sales team [8] - The company aims to transition customer relationships from reactive to proactive, influencing customer budgets by the end of the year [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year revenue guidance of $610 million to $630 million and adjusted EBITDA of $78 million to $82 million [18] - The company remains well-positioned to capitalize on growth opportunities in identified metropolitan statistical areas (MSAs) [18] Other Important Information - The company has a strong balance sheet with $38.1 million in cash and total debt of $27.5 million [26] - Tariffs have had a neutral effect on the business, allowing for quick responses to market dynamics [13] Q&A Session Summary Question: Insights on the healthcare market recovery - Management noted that the healthcare vertical has shown stability and customers are beginning to plan for long-term capital needs due to deferred maintenance [32][33] Question: Impact of tariffs on project timelines - Management indicated that customers are making quicker purchasing decisions to avoid potential price increases due to tariffs, which has been beneficial for the company [36] Question: ODR client relationship development - Management explained that account managers are placed at ODR clients after assessing the potential for long-term partnerships based on spending patterns and opportunities [40][41] Question: GCR gross margin sustainability - Management stated that they are targeting a blended gross margin of 28% to 29% for the year, acknowledging variability based on project mix [48][49] Question: M&A strategy in a competitive environment - Management emphasized a patient and disciplined approach to acquisitions, focusing on long-term integration and cultural alignment with potential targets [78][80]