Core Viewpoint - The merger between Hangzhou Hailianxun Technology Co., Ltd. and Hangzhou Steam Turbine Power Group Co., Ltd. is under review, with a focus on the operational performance and sustainability of the latter, which has faced declining profitability in recent years due to increased market competition and policy impacts [1][2]. Group 1: Company Performance - Hangzhou Steam Turbine's main business includes the design, manufacturing, installation, and operation of industrial steam turbines, gas turbines, generators, and hydraulic turbines [2]. - The company's gross profit and net profit have been declining over the reporting periods, with net profits recorded at 708 million yuan, 736 million yuan, and 638 million yuan for 2022, 2023, and 2024 respectively [2][3]. - The gross profit margin for the industrial steam turbine business has decreased, with figures of 29.30%, 26.78%, and 21.21% over the same periods [8][10]. Group 2: Market Conditions - The global steam turbine market is projected to grow from $28.375 billion in 2024 to $33.752 billion by 2032, with a compound annual growth rate (CAGR) of 2.19% [6]. - In China, the steam turbine manufacturing market is expected to experience fluctuations, maintaining a scale of approximately 35 to 40 billion yuan due to the dual carbon policy and adjustments in the traditional energy structure [6][7]. - The domestic market is highly concentrated, with major players like Dongfang Electric, Shanghai Electric, and Hangzhou Steam Turbine holding significant market shares [7]. Group 3: Competitive Landscape - The competitive landscape of the steam turbine market is characterized by a multi-polar and tiered structure, with international leaders like Siemens Energy and General Electric dominating the global market [7]. - Hangzhou Steam Turbine maintains a leading position in the industrial steam turbine sector, with over 50% market share in production and sales [7][9]. - The company has been actively expanding its marketing channels and optimizing its product structure to counteract the pressures from increased competition and market changes [10][12]. Group 4: Strategic Initiatives - The company is focusing on innovation and market expansion, including a "going out" strategy to develop overseas markets, particularly in the Middle East and Southeast Asia [13][14]. - A comprehensive service system based on the entire lifecycle of turbine units is being developed to enhance service quality and efficiency [14][15]. - The company is also investing in research and development to adapt to market demands and improve its competitive edge [15][16].

Group 1: Company Overview - The main business components of the company include industrial steam turbines, gas turbines, and after-sales services [1] - Key subsidiaries include Turbine Casting and Forging Company, Turbine Auxiliary Machinery Company, and others, each with specific core businesses [1] Group 2: Product Applications - Industrial steam turbines are categorized into industrial drive turbines and industrial power generation turbines, serving critical roles in various industries such as petrochemical, metallurgy, and power generation [1] - The company is focusing on innovation and market opportunities in energy-saving and waste heat utilization to counteract the decline in downstream investments [2] Group 3: Competitive Advantages - The company offers full lifecycle services and solutions, achieving parity with foreign manufacturers in terms of energy consumption and performance, while providing better delivery times and cost-effective operation [3] Group 4: Gas Turbine Development - Collaboration with Siemens has led to the sale of over 50 units of SGT800 and SGT2000E; the company has also initiated independent R&D since 2016 [4] - Investments in technology and partnerships aim to enhance operational capabilities and expand service areas [4] Group 5: Corporate Restructuring - Following the merger with Hailianxun, the company will undergo changes in name, registered capital, and governance structure to align with new business strategies [5] Group 6: Employee Engagement - Strategies to enhance employee motivation include improving wages and benefits, innovating talent development models, and fostering a strong corporate culture [6] Group 7: Future Growth Drivers - Future performance growth is expected to stem from gas turbine development, overseas sales, service sectors, and other related investments [6]

Overview of the Merger - The company plans to absorb its wholly-owned subsidiary, Zhejiang Turbine Complete Technology Development Co., Ltd. (referred to as "Complete Company"), to enhance resource allocation efficiency and optimize overall operational effectiveness [1][4] - The merger will not constitute a major asset restructuring or related party transaction [1][3] Financial Impact - The merger will not materially affect the company's financial status as the financial statements of the Complete Company are already included in the company's consolidated financial statements [4] - There will be no changes to the company's total share capital or registered capital as a result of the merger [5] Operational Changes - Following the merger, all assets, personnel, debts, rights, and obligations of the Complete Company will be transferred to the company, which will continue its operations while the Complete Company will be deregistered [3][4] - The merger is expected to improve the company's management structure and operational efficiency, aligning with its development strategy [4]

Group 1: Company Overview and Products - The company specializes in industrial steam turbines, with a focus on application fields and major product performance projects [1] - The market share of steam turbine products and competitive advantages were discussed [1] Group 2: Collaboration and Services - The collaboration model with Siemens for gas turbine products was outlined, where Siemens provides the core machine and the company supplies other related equipment [1] - The company offers long-term after-sales service for gas turbines, with some core components supplied by Siemens [1] Group 3: Research and Development - The first self-developed 55MW gas turbine successfully completed ignition testing in January 2025, with ongoing performance tests [1] - A commercial demonstration project has been initiated in Lianyungang [1] Group 4: Major Asset Restructuring - The restructuring plan has been approved by the State-owned Assets Supervision and Administration Commission and the shareholders' meeting, and has been submitted to the Shenzhen Stock Exchange [2] - The latest progress on the restructuring will be disclosed in accordance with the company's information disclosure obligations [2]

Group 1: Company Overview and Product Applications - The company specializes in gas turbine products primarily used in distributed energy projects across various industries, including power, chemicals, municipal services, and papermaking [1] - Successful provision of gas turbine units for projects such as Kunshan GCL, Zhejiang Petrochemical, and China Guodian [1] - Over 50 gas turbine units have been delivered in collaboration with Siemens [1] Group 2: Research and Development Progress - The first self-developed 55MW gas turbine successfully ignited in 2025, with ongoing performance testing [2] - Hydrogen combustion tests have been completed with a 40% hydrogen blend [2] - The first commercial demonstration project has been established in Lianyungang to promote marketization of self-developed turbines [2] Group 3: Revenue Sources and Service Capabilities - Revenue from gas turbine business includes project sales and long-term service contracts [2] - A wholly-owned subsidiary is developing a professional talent pool for gas turbine maintenance, enhancing service capabilities [2] Group 4: Competitive Advantages - The company has 67 years of experience in the industrial turbine market, serving core clients in refining, petrochemicals, metallurgy, and coal chemical industries [2] - Established multiple domestic industry standards, creating competitive advantages in market presence, brand, technology, quality, talent, and service [2] - Customization, flexible manufacturing, and agile service enhance user experience [2] Group 5: Major Asset Restructuring Progress - The restructuring plan has been approved by the State-owned Assets Supervision and Administration Commission and the shareholders' meeting, with subsequent reporting to the stock exchange [2]