Company Overview - Wuhan Huazhong Numerical Control Co., Ltd. was established on October 18, 1994, with a registered capital of 198,696,906 yuan [12] - The company is listed on the Shenzhen Stock Exchange under the stock code 300161 [12] - The main business includes numerical control systems, robots, and intelligent production lines, classified under the general equipment manufacturing industry [14][19] Fundraising and Investment Projects - The company plans to raise a total of 104,180.91 million yuan, with 70,000 million yuan allocated for key technology research and industrialization projects related to five-axis numerical control systems and servo motors [3][4] - The fundraising will also support the construction of an industrial robot technology upgrade and industrialization base, which is expected to significantly increase production capacity [6][19] Financial Performance and Risks - The company has faced challenges with non-recurring gains and losses, which accounted for a high percentage of net profit in recent years, indicating potential volatility in financial performance [7][8] - The company anticipates that the new investment projects will lead to increased depreciation and amortization costs, which could impact short-term profitability if the projects do not meet expected revenue levels [7][8] Industry Context - The numerical control system is a critical component of machine tools, representing about 20% of the cost of a numerical control machine [20] - The industry is characterized by rapid growth, with the Chinese industrial robot market expected to grow at a compound annual growth rate of approximately 18.77% from 2022 to 2026 [6][19] - The company operates in a competitive landscape, facing challenges from both domestic and international players in the high-end machine tool market [14][19]

Group 1: Financial Performance and Investment - The company has maintained an average R&D investment of 20.90% of its revenue from 2022 to 2024, which has enabled it to compete with imported manufacturers [2] - The company reported a net profit loss for 2024, with a continuous decline in net profit over the years [5][8] - The company is focusing on cost reduction and efficiency improvement measures to enhance profitability [5][8] Group 2: Technological Advancements - The company has developed the Huazhong 8 high-end CNC system, achieving international advanced levels in functionality, performance, and reliability [2] - The Huazhong 10 intelligent CNC system integrates AI data models with CNC machine tool mathematical models, creating a new paradigm in engineering modeling [2] - The company has successfully overcome over 400 core technologies in industrial robotics, with over 80% of its innovations being proprietary [2] Group 3: Market Strategy and Future Plans - The company is actively expanding its market presence and product application scenarios, particularly in the field of humanoid and collaborative industrial robots [5][6] - The company plans to collaborate with strategic partners to break foreign technology monopolies and enhance its competitive edge in the global market [5][7] - The company is exploring the integration of high-power motors and precision encoders to strengthen its position in the smart machine tool manufacturing sector [6][7] Group 4: Investor Relations and Communication - The company acknowledges the need for improved communication with investors regarding its strategic direction and operational performance [5][7] - The management is committed to addressing investor concerns and enhancing transparency in its operations [5][7] - The company is considering diversifying its promotional strategies to better showcase its technological achievements and corporate culture [6][7]

Financial Performance - The company achieved a revenue of 178,243.53 million yuan in 2024, a decrease of 15.71% compared to 2023 [3] - Revenue from the CNC systems and machine tools sector increased by 9.82% to 97,945.88 million yuan [3] - Revenue from industrial robots and smart production lines decreased by 36.39% to 71,124.03 million yuan, primarily due to delays in project delivery caused by being placed on the U.S. SDN list [3] - R&D investment reached 401 million yuan, accounting for 22.51% of total revenue [3] Technological Advancements - The company launched the Huazhong 10 intelligent CNC system, which integrates AI chips and models, enhancing processing precision by 30% and efficiency by 5%-10% [4] - The Huazhong 8 high-end CNC system has achieved significant technological breakthroughs, reducing the gap with imported products [8] - The new generation of intelligent CNC systems represents a shift from rigid control to intelligent decision-making capabilities [8] Market Position and Strategy - The company is positioned as a leader in the domestic CNC market, benefiting from the trend of local manufacturing and the demand for high-end CNC equipment [5] - The company maintains a comprehensive industrial chain and has adapted to the challenges posed by trade wars by accelerating the domestic replacement of equipment and components [5] - Continuous high R&D investment has allowed the company to compete effectively with international CNC system manufacturers [7] Product Development - The company introduced new products at the Beijing International Machine Tool Exhibition, including flexible workstations and intelligent dual-arm robots [5] - The focus on AI integration in robotics aims to enhance operational flexibility and efficiency in various industrial applications [5] Industry Impact - The company’s advancements contribute to the overall growth of the high-end equipment manufacturing market in China, supported by national policies [6]