Core Viewpoint - Jinshi Technology is further divesting non-new energy related subsidiaries to optimize resource allocation and reduce financial burdens, aligning with its strategic development plan [1][3]. Company Overview - Jinshi Technology, originally engaged in cigarette label printing, has transitioned to focus on new energy and new materials, particularly in supercapacitors and energy storage [3][5]. - The company was established in 2008 and has been restructuring its business model for over a year, entering the energy storage sector in March 2024 [4][5]. Recent Developments - On August 3, 2024, Jinshi Technology announced plans to transfer 100% equity of its wholly-owned subsidiary, Hunan Jinshi Technology, to optimize asset management [1]. - This follows the recent cancellation of another subsidiary, Jiangxi Jinshi Hengding Metal Co., Ltd., indicating a trend of divestment [1]. Financial Performance - Hunan Jinshi has reported no revenue for the first quarter of 2024 and a loss of approximately 14.58 million yuan in 2024 and 4.30 million yuan in Q1 2025 [4][5]. - Jinshi Technology has faced continuous losses over the past three years, with net profits of -36.59 million yuan in 2022, -44.57 million yuan in 2023, and -4.40 million yuan in 2024 [5]. - Despite entering the energy storage market, the company achieved a revenue of 376 million yuan in 2024, a significant increase of 1008.39% year-on-year, primarily concentrated in the fourth quarter [5]. Strategic Focus - The company aims to enhance its economic efficiency and service core clients through the establishment of subsidiaries like Hunan Jinshi, although the performance has not met expectations [4]. - Jinshi Technology's current revenue composition includes 68.7% from energy storage devices and 30.24% from lithium-ion battery thermal runaway detection and prevention systems [5].

Core Viewpoint - Jinshi Technology is divesting its idle assets, specifically the 100% equity of its wholly-owned subsidiary Hunan Jinshi Technology Co., Ltd., to optimize resource allocation and alleviate financial burdens while transitioning to the new energy storage business [1][2]. Group 1: Asset Sale and Financial Status - The asset sale plan was disclosed on August 3, with the transaction details still uncertain, including the buyer and transaction price [1]. - Hunan Jinshi, established in 2019, has been temporarily idle since the completion of its construction in March 2024, with a total asset value of 390 million yuan and liabilities of approximately 58.91 million yuan as of March 2025 [1]. - The subsidiary reported net losses of 14.58 million yuan and 4.30 million yuan for the first quarters of 2024 and 2025, respectively [1]. Group 2: Business Transition and Performance - Jinshi Technology originally focused on cigarette packaging but has faced declining profitability since 2021, leading to the cessation of its cigarette packaging business in 2024 [2]. - The company has shifted its focus to the new energy sector, particularly in supercapacitors and energy storage, aiming to concentrate resources on this strategic transition [2]. - From 2022 to 2024, Jinshi Technology's revenues were 185 million yuan, 33.91 million yuan, and 376 million yuan, with net losses of 36.59 million yuan, 44.57 million yuan, and 4.40 million yuan, respectively [3]. - In 2024, the energy storage equipment and systems generated revenues of 258 million yuan and 114 million yuan, accounting for 68.7% and 30.24% of total revenue [3]. - Despite the growth in revenue, the company continues to face losses due to high fixed asset depreciation and expenses from its subsidiaries [3].

Core Viewpoint - Jinshi Technology is planning to divest its wholly-owned subsidiary, Hunan Jinshi Technology Co., Ltd., to optimize resource allocation and reduce financial burdens, aligning with its strategic development goals [1][2]. Group 1: Company Overview - Jinshi Technology, established in 2008, originally focused on cigarette label printing and has transitioned to the energy storage sector over the past year [5][6]. - The company has constructed a diversified business model centered on energy storage equipment manufacturing and related products, aiming to provide safe energy storage solutions [5]. Group 2: Financial Performance - Hunan Jinshi has reported significant losses, with a total loss of approximately 14.58 million yuan in 2024 and 4.30 million yuan in Q1 2025 [2][3]. - Despite entering the energy storage market, Jinshi Technology has faced continuous losses over three years, with net profits of -36.59 million yuan in 2022, -44.57 million yuan in 2023, and -4.39 million yuan in 2024 [6]. - The company achieved a revenue of 376 million yuan in 2024, marking a year-on-year increase of 1008.39%, although most revenue was concentrated in Q4 [6]. Group 3: Strategic Moves - The divestiture of Hunan Jinshi is part of a broader strategy to dispose of idle assets and improve financial health, which is expected to provide funding for future developments [1][2]. - The company has faced operational challenges, including a temporary suspension of an important subsidiary, leading to stock warnings and a change in stock designation to "*ST Jinshi" due to negative net profits and low revenue [6][7].

Core Viewpoint - The company has experienced significant revenue growth in its energy storage business, achieving 376 million yuan in revenue for 2024, a year-on-year increase of 1,008.39%, but has faced increased losses, indicating challenges in profitability despite revenue growth [1][2][3]. Group 1: Revenue and Profitability - The company's revenue for 2024 was primarily concentrated in the fourth quarter, with a notable decline in the first quarter of 2025, raising questions about revenue recognition practices and seasonal fluctuations in the energy storage industry [2][3][4]. - The company reported a net loss of 63 million yuan for 2024, which has widened compared to the previous year's losses, and a further loss of 13 million yuan in the first quarter of 2025 [1][2][3]. - The energy storage system business generated sales revenue of 258 million yuan in 2024, with a gross profit margin of 9.37%, while the first quarter of 2025 saw revenue of 25 million yuan and a gross profit margin of 6.54% [4][5]. Group 2: Business Model and Market Position - The company has transitioned from a traditional printing business to focus on energy storage systems and safety solutions, establishing a stable business model with a diverse customer base including major contractors and energy management firms [3][4][21]. - The company has secured approximately 332 million yuan in orders and an additional 308 million yuan in intended orders, indicating a robust pipeline for future revenue [4][21][22]. - The energy storage business has been structured to ensure sustainable revenue generation through a combination of product sales and ongoing service support, which is expected to enhance cash flow stability [28][30][31]. Group 3: Cost Structure and Financial Health - The company has faced increased costs due to the establishment of a professional team for energy storage, market expansion, and technology development, leading to a significant rise in sales and R&D expenses [10][11][21]. - The company reported a credit impairment loss reduction of 16.78 million yuan, attributed to increased sales and a rise in accounts receivable [10][11]. - The company has invested in production capacity, with a planned annual output of 2.4 GWh for energy storage systems, which is expected to lower production costs and improve operational efficiency [31][32].