Summary of Key Points Core Viewpoint - The company, Gansu Lanke Petrochemical High-tech Equipment Co., Ltd., has announced a guarantee of $6.9 million (approximately 48.99 million RMB) for its wholly-owned subsidiary's project in Morocco, ensuring the project's smooth progress [1][5]. Group 1: Guarantee Details - The guarantee is provided to Shanghai Lanbin Petrochemical Equipment Co., Ltd.'s Morocco branch for a contract with CA INFRAESTRUCTURAS ENERGIA2023 SL [1]. - The total amount of the guarantee is $6.9 million, which is equivalent to no more than 48.99 million RMB [1]. - There are no counter-guarantees associated with this guarantee [1]. Group 2: Internal Decision-Making Process - The board of directors approved the guarantee to support the normal production and operational needs of the subsidiary [2]. - The company has the authority to provide various types of guarantees, including bank credit and performance guarantees, up to a limit of 600 million RMB [2]. Group 3: Subsidiary Information - Shanghai Lanbin Petrochemical Equipment Co., Ltd. was established on May 29, 2002, with a registered capital of 298 million RMB [2]. - The subsidiary's business scope includes manufacturing specialized equipment for petroleum drilling, refining, and chemical production, among others [2]. Group 4: Financial Overview - As of March 31, 2025, the total assets of the subsidiary were approximately 1.39 billion RMB, with total liabilities of about 505.48 million RMB [4]. - The subsidiary reported a net profit of approximately 11.28 million RMB for the first quarter of 2025 [4]. Group 5: Necessity and Reasonableness of the Guarantee - The company can effectively control the operational risks of the subsidiary and has assessed its credit status positively [5]. - The guarantee aligns with the company's overall interests and development strategy, ensuring no harm to the interests of the company and minority shareholders [5]. Group 6: Board Approval - The guarantee was approved in the eighth meeting of the sixth board of directors and does not require further approval as it falls within the limits set by the 2024 annual general meeting [5].

Core Viewpoint - The successful delivery of four large tower devices by Nanjing Yuchuang to Maoming Petrochemical marks a significant milestone in China's domestic manufacturing capabilities for oversized equipment, showcasing the integration of manufacturing, transportation, and installation processes [1][2]. Group 1: Delivery and Transportation - The four large tower devices, including ethylene tower and propylene towers, weigh a total of 3000 tons and have a maximum diameter of 7.8 meters, successfully arrived at Water East Port after a 7-day river-sea transport from Nanjing to Guangdong [1]. - Nanjing Yuchuang established a "daily communication, weekly scheduling" model with Maoming Petrochemical to ensure precise control throughout the transportation process [1]. Group 2: Manufacturing Capabilities - Nanjing Yuchuang has nearly 20 years of experience in on-site prefabrication and assembly welding technology, particularly for oversized equipment, positioning itself as a leader in the market for large tower devices with diameters over 8 meters [2]. - The company has developed a unique "factory direct loading + ten-thousand-ton roll-on/roll-off ship" transportation scheme, effectively overcoming transportation limitations for oversized equipment [1]. Group 3: Innovation and R&D - Continuous investment in research and development has led to the acquisition of 4 core invention patents and 46 utility model patents since 2018, establishing a comprehensive intellectual property protection system [2]. - The patented product "flange connection aluminum-magnesium silo" has maintained the highest market share for five consecutive years and has been recognized with a third prize in the China Petroleum Group Science and Technology Progress Award [2]. Group 4: Engineering Experience - Nanjing Yuchuang has accumulated extensive engineering experience in welding, forming, and heat treatment of materials such as composite plates, low-temperature steel, and special stainless steel, meeting stringent requirements for various working conditions [3].

Summary of Conference Call Company Overview - The company operates in various sectors including traditional energy equipment, new energy equipment, industrial intelligent equipment, and environmental protection equipment [3][4] - It has achieved several certifications such as ISO9001 and various pressure vessel design and manufacturing licenses [3] Financial Performance - In 2024, the company reported a revenue of 57.91 billion, a 12.18% increase from 51.62 billion in 2023 [4] - R&D investment reached 2.91 billion, with an intensity of 5.03% in 2024 [4] - The company aims to achieve a revenue target of at least 66 billion by the end of the 14th Five-Year Plan [12] Order Growth - Orders in the nuclear energy sector reached 6.77 billion, a 31.05% increase year-on-year [5] - The company secured orders in various sectors: - Gold crystal materials: 9.18 billion, up 25.41% - Energy-saving and environmental protection: 5.68 billion, up 26.35% - Industrial intelligence: 6.03 billion, up 19.40% [5] International Expansion - International project orders reached 4.1 billion, a 41.09% increase year-on-year [5] - The company is focusing on expanding in the Japanese market, particularly in the core beam sector [5] Industry Trends - The energy equipment industry is driven by national policies and the need for technological upgrades [6][7] - The industrial intelligence sector is seeing increased demand due to the application of AI and IoT technologies [7] - The environmental protection sector is growing due to ongoing energy-saving and carbon reduction initiatives [7] R&D and Innovation - The company is focusing on new fields and industries to overcome saturation in traditional refining and chemical sectors [8] - R&D investment is prioritized, with a commitment to maintain or increase spending in this area [9] Profitability and Margins - The company’s gross margin in traditional energy equipment is around 15%, while new energy equipment has a higher margin of approximately 25% [13][15] - The hydrogen energy sector currently has a lower margin of about 10-14% due to market conditions [15] Future Outlook - The company aims to enhance its gross margin through internal reforms and efficiency improvements [41] - There is a focus on expanding market share in high-growth areas such as nuclear energy and new energy technologies [16][18] Challenges - The traditional refining and chemical sectors are facing a growth ceiling, limiting new project approvals [20] - The company is cautious about the rapid commercialization of new technologies in the nuclear sector [24] Conclusion - The company is committed to growth through innovation and market expansion, with a clear strategy to enhance profitability and adapt to industry changes [40][41]