Core Viewpoint - Changling Hydraulic is a leading manufacturer of hydraulic components in China, focusing on research, production, and sales of hydraulic parts and precision castings, with a strong emphasis on technology and full industry chain advantages [1] Group 1: Business Performance - In Q3 2025, Changling Hydraulic achieved a revenue of 750 million yuan, ranking 4th among 12 companies in the industry, with the top competitor, Hengli Hydraulic, generating 7.79 billion yuan [2] - The revenue breakdown includes 172 million yuan from tensioning devices (36.61%), 106 million yuan from precision castings (22.59%), and 101 million yuan from central swivel joints (21.51%) [2] - The net profit for the same period was 120 million yuan, also ranking 4th in the industry, with Hengli Hydraulic leading at 2.09 billion yuan [2] Group 2: Financial Health - As of Q3 2025, the asset-liability ratio of Changling Hydraulic was 10.70%, an increase from 8.18% year-on-year, significantly lower than the industry average of 29.94%, indicating strong solvency [3] - The gross profit margin for the period was 28.64%, up from 27.13% year-on-year, surpassing the industry average of 27.79%, reflecting robust profitability [3] Group 3: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 4.41% to 8,868, while the average number of circulating A-shares held per account increased by 4.61% to 15,400 [5] - The company has focused on technology and has expanded into the photovoltaic sector through the acquisition of 70% of Jiangyin Shangchi in 2023, with projected net profit commitments for 2023-2025 [5] Group 4: Future Projections - Expected net profits for Changling Hydraulic from 2025 to 2027 are projected to be 122 million yuan, 155 million yuan, and 231 million yuan, representing year-on-year growth rates of 28.7%, 27.4%, and 48.6% respectively [5]

Core Insights - The company reported a revenue of 750 million yuan for the first three quarters of 2025, representing a year-on-year increase of 10.50% [1] - The net profit attributable to shareholders reached 110 million yuan, up 20.51% year-on-year, with a basic earnings per share of 0.77 yuan [1] - The gross margin for the first three quarters was 28.64%, an increase of 1.51 percentage points year-on-year, while the net margin was 16.05%, up 1.12 percentage points from the previous year [1] Financial Performance - The company’s third-quarter gross margin was 32.25%, showing a year-on-year increase of 5.15 percentage points and a quarter-on-quarter increase of 4.91 percentage points [1] - The net margin for the third quarter was 18.63%, which is an increase of 5.23 percentage points year-on-year and 3.87 percentage points quarter-on-quarter [1] - The company’s total expenses for the third quarter were 70.86 million yuan, an increase of 6.28 million yuan compared to the same period last year, with an expense ratio of 9.45%, down 0.07 percentage points year-on-year [2] Shareholder Information - As of the end of the third quarter of 2025, the total number of shareholders was 8,868, an increase of 892 from the end of the first half of the year, representing an 11.18% growth [2] - The average market value held per shareholder increased from 795,900 yuan to 995,800 yuan, a growth of 25.11% [2] Business Overview - Jiangsu Changling Hydraulic Co., Ltd. specializes in the research, production, and sales of hydraulic components and precision castings, with main revenue sources including tensioning devices (36.61%), precision castings (22.59%), central swivel joints (21.51%), and reduction gears (13.77%) [2] - The company is classified under the machinery equipment sector, specifically in engineering machinery components, and is involved in various concept sectors including engineering machinery and solar energy [3]

Core Viewpoint - Jiangsu Changling Hydraulic Co., Ltd. experienced a significant stock price fluctuation, with a cumulative closing price deviation of 20% over three consecutive trading days from September 16 to September 18, 2025, which is classified as abnormal trading activity according to the Shanghai Stock Exchange rules [2][5]. Group 1: Stock Trading Abnormalities - The company's stock price increased significantly over three consecutive trading days, leading to a cumulative closing price deviation of 20% [2][5]. - The company conducted a self-examination and confirmed that there were no undisclosed significant matters apart from what has been publicly disclosed [2][10]. Group 2: Share Transfer Agreement - On July 10, 2025, a share transfer agreement was signed, where shareholders Summer Jifa and Summer Zemin planned to transfer a total of 43,211,714 shares, representing 29.99% of the company's total shares, to Huaxin Tingtao and Chenglian Shuangying [3][7]. - Additionally, Huaxin Polang intends to make a partial tender offer to acquire 17,290,448 shares, which accounts for 12.00% of the total shares, from all shareholders excluding Huaxin Tingtao and Chenglian Shuangying [3][7]. Group 3: Business Operations - The company primarily produces central swivel joints, tensioning devices, construction machinery swivel reducers, precision castings, and photovoltaic swivel reducers [6]. - The company confirmed that its main business operations have not changed, and the internal production activities are normal, with no significant adjustments in the market environment or industry policies [6][10]. Group 4: Market and Media Influence - The company has not identified any media reports or market rumors that could significantly impact its stock trading prices, nor is it involved in any market hot concepts [11]. - There were no significant stock trading activities by directors, supervisors, senior management, or controlling shareholders during the period of abnormal stock trading [12]. Group 5: Risk and Compliance - The board of directors confirmed that there are no undisclosed matters that should be disclosed according to the relevant regulations of the Shanghai Stock Exchange [15]. - The company emphasizes that all information should be verified through designated media and encourages rational investment decisions [15].

Core Viewpoint - Jiangsu Changling Hydraulic Co., Ltd. has completed its ownership change, with the new controlling party being Hu Kangqiao and his associates from Qingdao, who will invest 2.113 billion yuan to acquire 41.99% of the voting rights through an innovative scheme of "agreement transfer + partial tender offer" [2][9]. Group 1: Ownership Change Details - The ownership change was prompted by the company's declining performance, with four consecutive years of revenue decline [3]. - Hu Kangqiao, a 37-year-old Tsinghua University graduate and founder of Core Interconnect Technology, will become the actual controller of Changling Hydraulic [2][6]. - The transaction received significant support from state-owned assets in Wuxi, which contributed 847 million yuan to facilitate Hu's acquisition [2][13]. Group 2: Financial Performance - Changling Hydraulic's revenue peaked between 2018 and 2020, with a maximum growth rate of 71.69% and a net profit increase of 118.73% [5]. - However, since its listing in 2021, the company has seen a decline in revenue from 907 million yuan in 2021 to 883 million yuan in 2024, with net profit dropping from 202 million yuan to 95 million yuan during the same period [5]. - In Q1 of this year, the company reported a revenue of 219 million yuan, a year-on-year decrease of 2.64%, and a net profit of 30.82 million yuan, down 7.63% year-on-year [5]. Group 3: Strategic Implications - The acquisition marks a significant crossover between the chip industry and traditional manufacturing, with potential for collaborative development [9][13]. - Core Interconnect Technology has established itself as a high-tech enterprise focusing on mixed-signal chip design, with over 1,000 chip models in mass production [8]. - The strategic partnership aims to leverage the technological advantages of both hydraulic manufacturing and chip design, raising questions about the potential for successful integration and growth [9][13].

Core Viewpoint - Jiangsu Changling Hydraulic Co., Ltd. is undergoing a change in control, with Hu Kangqiao and his associates planning to acquire 29.99% of the company's shares and subsequently make a partial tender offer to increase their stake by an additional 12% to gain control of the company [1][4][5] Shareholding Structure - The share transfer involves Hu Kangqiao and his associates transferring a total of 43,211,714 shares, representing 29.99% of the total shares, to Wuxi Hexin Tingtao Technology Partnership and Jiangyin Chenglian Shuangying Investment Partnership for a total price of 1.486 billion yuan, at a price of 34.39 yuan per share [4][5] - After the transfer, Hu Kangqiao and his associates will hold 40.94% of the shares, while Wuxi Hexin Tingtao and its associates will hold 29.99% [4][5] Tender Offer - Wuxi Hexin Polang Technology Partnership is making a partial tender offer for 17,290,448 shares, which is 12% of the total shares, at a price of 36.24 yuan per share, amounting to a total payment of 627 million yuan [5][6] Company Performance - Changling Hydraulic's performance has declined post-IPO, with revenue and net profit decreasing from 2021 to 2024. Revenue figures were 9.07 billion yuan in 2021, dropping to 8.83 billion yuan in 2024, while net profit fell from 202 million yuan to 101 million yuan during the same period [8][10] - In Q1 of the current year, the company reported revenue of 2.19 billion yuan, a year-on-year decrease of 2.64%, and a net profit of 30.82 million yuan, down 7.63% year-on-year [8][10] Control Change Attempts - The actual controller, Xia Jifa, had previously attempted to change control in January 2025 but terminated the process due to disagreements with the trading party [9][10] - The current attempt at control change marks the second such effort within six months, raising questions about the future outlook of the company [10]

Core Viewpoint - Jiangsu Changling Hydraulic Co., Ltd. is undergoing a change in control, with Hu Kangqiao and his associates planning to acquire 29.99% of the company's shares and subsequently make a partial tender offer to increase their stake by an additional 12% to gain control of the company [1][4][6]. Group 1: Control Change Details - Hu Kangqiao and his associates intend to acquire 29.99% of Changling Hydraulic's shares, with a total transaction value of 1.486 billion yuan, at a price of 34.39 yuan per share [4][6]. - The current major shareholders, Xia Jifa and Xia Zemin, will see their combined holdings decrease from 70.93% to 40.94% after the transfer [4]. - A partial tender offer for 12% of the shares will be made at a price of 36.24 yuan per share, requiring a payment of 627 million yuan [6][5]. Group 2: Performance Analysis - Changling Hydraulic's performance has declined post-IPO, with revenue dropping from 9.07 billion yuan in 2021 to an estimated 8.83 billion yuan in 2024, and net profit decreasing from 2.02 billion yuan to 1.01 billion yuan over the same period [9]. - In Q1 2024, the company reported a revenue of 2.19 billion yuan, a year-on-year decrease of 2.64%, and a net profit of 308.25 million yuan, down 7.63% year-on-year [9]. - The company has experienced a significant performance drop since its IPO in March 2021, with net profits declining annually [9][11].

Core Viewpoint - Jiangsu Changling Hydraulic Co., Ltd. reported a decline in net profit and significant reduction in cash flow from operating activities for the year 2024, despite an increase in operating revenue driven by business expansion through acquisitions [1][2][3]. Financial Performance - Operating revenue for 2024 reached 883,496,556.61 yuan, a 9.57% increase from 806,314,323.29 yuan in the previous year, primarily due to the acquisition of Jiangyin Shangchi [2]. - Net profit attributable to shareholders was 94,733,400.62 yuan, down 6.84% from 101,691,818.34 yuan, influenced by challenges in the photovoltaic sector and credit losses from a major customer [3]. - Deducting non-recurring gains and losses, the net profit was 89,333,123.82 yuan, reflecting a 6.61% decrease, indicating pressure on core business profitability [4]. - Basic earnings per share decreased to 0.66 yuan from 0.73 yuan, a decline of 9.59%, consistent with the drop in net profit [5]. - The diluted earnings per share, excluding non-recurring items, fell to 0.62 yuan from 0.69 yuan, a decrease of 10.14% [6]. Expenses and Cost Management - Sales expenses increased by 16.16% to 18,676,382.21 yuan, attributed to higher costs following the acquisition of Jiangyin Shangchi [7]. - Management expenses decreased by 10.71% to 40,068,834.02 yuan, reflecting improved cost control after the previous year's acquisition-related costs [7]. - Financial income, reported as negative 11,866,666.95 yuan, increased due to reduced interest income from bank investment products [7]. - R&D expenses rose by 13.11% to 38,948,751.30 yuan, indicating a commitment to innovation and product development [7]. Cash Flow Analysis - Net cash flow from operating activities was 77,491,615.59 yuan, a significant decrease of 58.22% from 185,453,824.79 yuan, primarily due to increased cash payments for employee compensation [9]. - Cash flow from investing activities showed a net outflow of 405,406,470.52 yuan, a substantial increase from the previous year's outflow of 9,013,697.51 yuan, mainly due to acquisition payments [9]. - Cash flow from financing activities also reflected a net outflow of 120,145,290.00 yuan, worsening from a previous outflow of 51,846,318.79 yuan, driven by increased dividend payments [9]. R&D and Human Resources - The company employed 137 R&D personnel, accounting for 15.68% of total staff, with a stable and reasonable educational and age structure [8]. Summary - Despite an increase in operating revenue, Jiangsu Changling Hydraulic faces challenges with declining net profit and cash flow, necessitating ongoing focus on market expansion, cost control, and risk management to enhance profitability and shareholder returns [11].