Group 1: Company Overview and Product Applications - The company specializes in various transformer products, including frequency conversion transformers, power transformers, small transformers, and marine transformers, with a focus on expanding the application of phase-shifting transformers in data centers [2][4]. - The company is actively developing solid-state transformers (SST) and has completed the development of medium-frequency isolation transformers for the DC side, aiming to meet the growing demand in data centers [4]. Group 2: Competitive Advantages and Market Position - The company has extensive experience in high-voltage frequency conversion technology, being one of the earliest manufacturers in this field, which provides a strong technical advantage in transformer design and manufacturing [4]. - Established long-term partnerships with major clients in the industry enhance the company's ability to deliver solid-state transformer products [4]. Group 3: Storage Business and Future Growth - The company is expanding its storage market presence, with products like storage integrated machines and inverters receiving certifications and achieving batch sales [4]. - Future growth is expected to come from continuous innovation in special transformers, power transformers, and reactors, alongside the development of new technologies and products such as solid-state transformers and epoxy-encapsulated transformers [5]. Group 4: Capital Operations and Strategic Planning - The company adopts a dual approach of industrial operation and capital operation, focusing on synergistic acquisitions that align with its core business and technological advantages [5]. - The company is committed to maintaining steady growth in its main business while exploring new market opportunities in renewable energy and data centers [5].

Group 1: Investor Relations Activities - The company held an online annual performance briefing on May 19, 2025, attended by key executives including the Chairman and General Manager, Mr. Tan Yong [2][3] - The company maintains stable cooperation with major clients, with frequent business interactions and some long-term projects [3][4] Group 2: Research and Development Investment - In 2024, the company invested CNY 38,709,882.28 in R&D, accounting for 10.27% of its revenue, an increase from CNY 35,548,985.14 in 2023 [4][6] - The company aims to enhance its technological capabilities and brand influence through continuous R&D investment and collaboration with universities and research institutions [4][6] Group 3: Dividend Policy and Shareholder Returns - Since its listing in 2022, the company has distributed a total cash dividend of CNY 51,127,100, emphasizing a stable profit distribution policy [4][6] - The company is focused on improving operational quality and core competitiveness to ensure sustainable value returns to shareholders [4][6] Group 4: Future Development Strategy - The company plans to focus on expanding into new markets such as variable frequency, renewable energy, and energy storage systems [6][7] - Key strategies include enhancing digital transformation, building intelligent factories, and strengthening talent development [7][9] Group 5: Financial Performance and Challenges - In Q1 2025, the company reported a revenue increase of 19.98% and a net profit increase of 112.87%, attributed to growth in transformer and energy storage business [12][14] - The company faced challenges in 2024 due to delayed order fulfillment and increased competition, leading to a decline in revenue and profit margins [9][12] Group 6: Market Position and Competitive Strategy - The company aims to maintain its competitive edge by increasing R&D investment and optimizing internal management to enhance operational efficiency [9][10] - The company is actively exploring opportunities in emerging markets such as data centers and marine engineering [10][12]

Investment Rating - The report does not explicitly state an investment rating for the industry or the specific company being analyzed [1]. Core Insights - The company operates in the variable frequency transformer industry, which primarily serves industrial energy efficiency, renewable energy, and high-end equipment sectors. The demand for variable frequency transformers has been steadily increasing due to the national "dual carbon" strategy, which promotes energy efficiency in industrial sectors [19]. - The company is actively expanding its energy storage market, with products like energy storage integrated machines and converters undergoing certification and small-scale sales. However, these efforts have not yet achieved significant scale to impact overall company performance [19]. - The company’s transformer products, including variable frequency transformers, power transformers, and small transformers, are being explored for applications in data centers, although this market has not yet formed a significant impact on the company's financials [19]. Summary by Sections 1. Basic Research Information - The research was conducted on New Special Electric, focusing on the power grid equipment industry, with the meeting held on February 27, 2025 [13]. 2. Detailed Research Institutions - The research involved several institutions, including E Fund, GF Fund, Zhongyou Fund, Huaxia Jiuying, and CITIC JianTou Fund, among others [14][15]. 3. Research Institution Proportions - The research institutions included 4 fund management companies, 1 other type, and 1 securities company, with fund management companies making up 67% of the participants [15]. 4. Main Content Information - The company is focused on enhancing core technologies and optimizing product structures to adapt to structural changes in market demand due to intense competition [19]. - The company emphasizes talent development and team incentives, planning to arrange long-term incentive programs based on market conditions and business development [21].

Group 1: Market Demand and Industry Trends - The demand for variable frequency transformers is steadily increasing, driven by the national "dual carbon" strategy and the need for energy efficiency in industrial sectors [2] - The company focuses on core technology enhancement and product structure optimization to address structural changes in market demand [2] Group 2: Energy Storage Business Development - The company is actively expanding its energy storage market, with products like energy storage integrated machines and converters certified by multiple professional institutions [3] - Currently, small-scale sales have been achieved, but significant scale effects have not yet formed, which will not substantially impact the company's performance [3] Group 3: Product Applications and Market Opportunities - The company's transformer series includes variable frequency transformers and power transformers, with applications in data centers being explored [3] - The company is monitoring emerging fields, including data centers, for technical requirements related to special transformers [3] Group 4: Employee Incentives and Long-term Plans - The company values talent development and team incentives, planning to arrange related matters based on market conditions and employee needs [3] - There has been no implementation of share repurchase for employee stock ownership plans or equity incentives to date [3]