Core Viewpoint - The company, Shanghai ShenKai Petroleum Chemical Equipment Co., Ltd., has announced that it will not provide financial assistance or compensation to investors participating in its stock issuance through a simplified procedure [1] Group 1 - The company has approved the issuance of stocks to specific investors in a simplified manner during its 2025 annual meeting [1] - The company guarantees that there are no commitments to ensure minimum returns or any other agreements that would imply such guarantees to the participating investors [1] - The company confirms that it does not provide financial assistance or compensation directly or through related parties to the investors participating in the stock subscription [1]

Core Viewpoint - ShenKong Co., Ltd. (002278.SZ) is consolidating its leading position in the oil and gas equipment industry by raising up to 220 million yuan through a simplified procedure for specific investors, aimed at enhancing competitiveness and optimizing capital structure [1][2]. Fundraising and Projects - The company plans to use the raised funds for a high-end marine engineering equipment manufacturing base project, acquiring 51% of Blue Ocean Zhixin, and supplementing working capital [2][4]. - This marks the first financing plan since the company's IPO in 2009, with previous IPO funds of 734 million yuan fully utilized [2]. High-end Marine Engineering Equipment Manufacturing Base - The project has a construction period of 1.5 years and a total investment of 110 million yuan, expected to produce 400 sets of offshore wellhead equipment and other advanced systems annually [3]. - Upon reaching full production, the project is projected to generate annual revenue of 242 million yuan and a net profit of approximately 20.48 million yuan, with a gross margin of 30.88% and a net margin of 8.45% [3]. Acquisition of Blue Ocean Zhixin - The acquisition of 51% of Blue Ocean Zhixin is valued at 60 million yuan, with the company expected to achieve a cumulative net profit of no less than 54 million yuan over three years from 2025 to 2027 [4]. - The valuation of Blue Ocean Zhixin's 100% equity is approximately 120 million yuan, reflecting a significant increase compared to the net assets on the consolidated financial statements [4]. Financial Performance - In Q1 2025, the company reported revenues of 202 million yuan and a net profit of 18.46 million yuan, marking year-on-year increases of 41.78% and 434.81%, respectively [1][7]. - The company’s international market strategy has led to overseas revenue of 161 million yuan in 2024, accounting for 21.91% of total revenue [7]. Research and Development - The company emphasizes R&D, with 72.36 million yuan invested in 2024, representing 9.87% of revenue, and a workforce of 207 R&D personnel [8]. - In Q1 2025, R&D expenses increased by 9.78% to 15.86 million yuan, accounting for 7.86% of revenue [8].

Core Viewpoint - The company emphasizes the accuracy and completeness of its quarterly report, ensuring no false records or misleading statements are present [2][3]. Financial Data Summary - The quarterly report has not been audited [3]. - The company does not require retrospective adjustments or restatements of previous accounting data [3]. - There are no non-recurring profit and loss items applicable for the reporting period [3]. - The company reported significant increases in sales orders and revenue, leading to a substantial rise in net profit compared to the previous year [8][11]. Shareholder Information - As of March 31, 2025, the company has repurchased 1,420,000 shares, representing 0.39% of the total share capital [8]. - The first phase of the employee stock ownership plan includes 11 valid holders as of March 31, 2025, with a total of 3,500,000 shares held, accounting for 0.96% of the total share capital [11][12]. - A total of 2,140,500 shares have been sold in the secondary market by the plan holders [11]. Other Important Matters - The funding for the employee stock ownership plan comes from employees' legal salaries, self-raised funds, and other legally permitted methods [10]. - The company will not grant any expired rights from the employee stock ownership plan to employees, and the management committee will sell the remaining shares based on market conditions [12].