Core Viewpoint - Company maintains a consistent R&D investment of approximately 20% of revenue, focusing on core technology iterations in motion control, servo, communication, and perception, while expanding applications in semiconductor, high-end CNC machine tools, and robotics [2] Group 1: R&D Investment - Company has historically invested around 20% of its revenue in R&D [2] - The focus of R&D investment is on core technologies such as motion control, servo, communication, and perception [2] Group 2: Market Trends - The manufacturing industry is transitioning towards advanced productivity and manufacturing as core structures, indicating a long-term development trend lasting five to ten years [2] - There is a notable emergence of high-end equipment characterized by micro-nano precision intelligence [2] Group 3: Strategic Opportunities - The ongoing evolution of internal control, servo core components, and control systems presents significant strategic opportunities for the company and its peers [2] - The company plans to maintain a high level of R&D intensity over the next three to five years to seize opportunities in semiconductor, high-end machine tools, and related fields for sustainable long-term growth [2]

Core Viewpoint - The company acknowledges that while the CNC machine tool business has a large scale, it also has low profit margins. However, China remains the largest market for high-end machine tools and high-end CNC systems globally [1]. Group 1: Market Position and Competition - The high-end CNC system market has high technical barriers, and currently, the supply is mainly from international competitors. The company sees a favorable competitive landscape for its products in the mainland market, which can yield good commercial returns [1]. - The company's core competitive advantage lies in high-speed and high-precision fields, with its control, servo components, and control systems being applicable in high-end machine processing and laser micro-nano processing [1]. Group 2: Revenue and Product Development - The revenue share from CNC machine tools and industrial laser equipment accounts for approximately 30%+, with breakthroughs achieved in micrometer-level precision and five-axis linkage processing in the past two years [1]. - The company's motion control systems are now in direct competition with high-end systems from international peers in the high-end machine tool mainframe sector [1].

Core Points - The company announced a profit distribution plan approved at the 2024 annual shareholders' meeting on June 26, 2025 [1] - The total cash dividend distribution amounts to CNY 15,878,830.50, with a per-share cash dividend of CNY 0.071 [1][2] - The distribution is based on a total share capital of 223,645,500 shares [1] Distribution Details - The cash dividends will be distributed to all shareholders registered with China Securities Depository and Clearing Corporation Limited, Shanghai Branch, as of the close of trading on the registration date [1] - For individual shareholders holding unrestricted circulating shares, the cash dividend will be distributed through the clearing system of China Securities Depository and Clearing Corporation Limited [1][2] - The company will self-distribute cash dividends to specific entities, including China Steel Research Group Corporation and Metallurgical Automation Research and Design Institute [2] Taxation Information - Individual shareholders holding shares for over one year are exempt from personal income tax on dividends, while those holding for one year or less will have tax implications based on their holding period [3][4] - The actual cash dividend after tax for overseas institutional investors (QFII) is CNY 0.0639 per share, with a 10% withholding tax applied [4] - For Hong Kong investors holding shares through the "Shanghai-Hong Kong Stock Connect," the same tax rate applies, resulting in a net cash dividend of CNY 0.0639 per share [4] Contact Information - The company provides contact details for inquiries, including the address and phone number for the board office [5]

Financial Performance - In 2024, the company achieved operating revenue of 238.77 million, a year-on-year increase of 8.50% [3] - The net profit attributable to shareholders was 79.72 million, reflecting a growth of 8.95% [3] - The net profit excluding non-recurring gains and losses was 65.95 million, with a significant increase of 24.33% [3] - The net cash flow from operating activities grew by 29.57% year-on-year [3] Research and Development - R&D investment in 2024 reached 24.07 million, accounting for 10.08% of operating revenue [4][7] - The company obtained 27 new patents in 2024, bringing the total to 463, including 36 invention patents [12] - Continuous R&D efforts have led to significant breakthroughs in key technologies such as generator control and intelligent distribution [8] Market Strategy - The company plans to enhance operational efficiency through refined management practices [4] - In 2024, the company focused on expanding its market presence both domestically and internationally, particularly in the new energy and hybrid energy sectors [5] - The new energy/hybrid energy segment has become a growth point, with products like energy management systems and battery management systems being developed [5] Competitive Position - The company maintains a strong market position against international competitors, with core products achieving comparable performance to foreign brands [10] - In 2024, the market share for controller products was 65.30%, while component products accounted for 27.64% of revenue [11] Future Outlook - The company aims to sustain growth through ongoing technological innovation, market expansion, and operational optimization [5] - Plans to increase R&D investment and strengthen talent acquisition to support future innovations [8] - The company is committed to maintaining a balance between operational performance and shareholder returns, with a focus on increasing dividend payouts [13]

Core Viewpoint - Zhongzhi Technology (301361.SZ) has achieved stable growth in performance while expanding into new fields through external investments [1][2] Financial Performance - In 2024, the company reported revenue of 239 million yuan, an increase of 8.5% year-on-year; net profit reached 79.72 million yuan, up 8.95%; and net profit excluding non-recurring items was 65.95 million yuan, growing by 24.33% [1][2] - The gross profit margin for the main business was 57.12%, an increase of 2.95 percentage points year-on-year [3] - Research and development expenses amounted to 24.07 million yuan, a year-on-year increase of 12.62%, representing 10.08% of revenue, up from 9.71% the previous year [1][3] Business Strategy - The company focuses on core businesses such as internal combustion engine generator control systems and low-voltage distribution control systems, while also actively developing new energy and hybrid energy control systems as strategic new businesses [2][3] - Zhongzhi Technology plans to invest 41 million yuan to acquire a 12% stake in Beijing Guangjian Cloud Technology Co., Ltd. (Guangjian Cloud), a leading AI technology service provider [1][5] Investment in AI Sector - Guangjian Cloud, established in 2016, specializes in AI technology services, including algorithm services, AI hardware, and industry solutions, with revenue of 198 million yuan in the first 11 months of 2024 [5][6] - The investment in Guangjian Cloud is seen as a strategic move to leverage AI technology and expand into new market areas, aligning with the company's long-term growth strategy [6]