Core Viewpoint - Qingdao Zhenghe Industrial Co., Ltd. reported steady growth in its 2025 semi-annual report, with plans to raise up to 818 million yuan through a private placement to enhance its core competitiveness and long-term development strategy [1][2]. Financial Performance - In the first half of the year, the company achieved revenue of 905 million yuan, a year-on-year increase of 7.18%, and a net profit attributable to shareholders of 89.01 million yuan, up 49.13% year-on-year [2][3]. - The net profit excluding non-recurring gains and losses was 63.29 million yuan, reflecting a 14.18% increase compared to the previous year, indicating sustained improvement in profitability [2]. Business Structure - The company's three core segments showed positive growth: - Vehicle chain systems generated 526 million yuan, accounting for 58.07% of total revenue, with a growth of 7.25% [3]. - Agricultural machinery chain systems achieved 158 million yuan, a 12.51% increase, now representing 17.46% of revenue [3]. - Industrial equipment chain systems reported 152 million yuan, up 9.15%, with a gross margin increase of 6.62 percentage points to 25.91% [3]. Market Expansion - The company accelerated its global expansion, with overseas revenue reaching 312 million yuan, making up 34.46% of total revenue, and a year-on-year growth of 6.34% [3]. - The acquisition of a controlling stake in Thailand's DDC chain wheel company enhances local production capabilities in Southeast Asia and establishes a foothold in the high-end market [3]. Future Growth Initiatives - The company plans to invest 433 million yuan in expanding agricultural machinery components, focusing on enhancing production capacity and technology for chain systems and cutting tools [5]. - A 201 million yuan investment in garden tool chain systems aims to capitalize on the growing global gardening market, projected to reach 136.45 billion dollars by 2034 [6]. - The micro-chain system project, with an investment of 53.82 million yuan, targets the robotics sector, leveraging existing patents and partnerships to enter the intelligent robotics market [7].

Group 1 - The company has revised its articles of association, changing references from "shareholders' meeting" to "shareholders' assembly" and removing mentions of "supervisors" and "supervisory board" in favor of "audit committee" [1][2] - The revisions have been approved by the company's board and will be submitted for shareholder approval [2] Group 2 - The company has not faced any penalties or regulatory measures from securities regulators or exchanges in the last five years [5][6] - The company has established a robust corporate governance mechanism and internal management systems to ensure compliance with relevant laws and regulations [4] Group 3 - The company raised a total of RMB 476.08 million through its initial public offering, with a net amount of RMB 412 million after deducting issuance costs [8][9] - As of June 30, 2025, the company has fully utilized the raised funds, with no remaining balance [16][18] Group 4 - The company plans to issue A-shares to specific investors, with a total fundraising target of up to RMB 818 million [25][67] - The funds will be allocated to projects including agricultural machinery component expansion, garden tool chain systems, and integrated R&D for micro-chain systems [32][67] Group 5 - The company has committed to measures to mitigate the dilution of immediate returns for shareholders due to the new issuance, including strengthening fund management and enhancing profitability [39][41] - The company has a well-established technical and personnel reserve, with 390 technical staff and numerous patents to support its R&D efforts [34][35]