Core Viewpoint - Nuwai Co., Ltd. shows strong performance with a significant increase in net profit and a positive outlook for future growth, supported by a robust order book and a new equity incentive plan [1] Company Performance - As of August 7, 2025, Nuwai's stock price reached 33.80 yuan, reflecting a 1.68% increase from the previous trading day [1] - The trading volume on that day was 50,774 hands, with a total transaction amount of 171 million yuan [1] - The company's net profit attributable to shareholders grew by 28% year-on-year in the second quarter, exceeding expectations [1] Industry Position - Nuwai specializes in the design, manufacturing, and sales of industrial valves, with applications in the oil, chemical, and power industries [1] - The company is recognized as a leading player in the industrial valve sector, headquartered in Jiangsu [1] Future Outlook - The report from Dongwu Securities on August 7 recommends a "buy" rating for Nuwai, citing the company's solid profit growth and full order book [1] - The company's diversified and global development strategy remains intact, which is expected to drive future growth [1] - The implementation of the 2025 equity incentive plan is anticipated to enhance team motivation and performance [1]

Core Insights - The Dafeng Economic Development Zone is focusing on "development" and "reform" to accelerate the construction of a modern industrial park system, fostering new technologies, industries, and business models, which lays a solid foundation for high-quality development [1] Group 1: Industrial Development - The zone is constructing a "3456" modern industrial system, emphasizing the development of the new energy and equipment manufacturing industries by attracting key equipment and technologies in wind and solar energy [2] - The high-end equipment manufacturing sector is actively recruiting projects in intelligent machinery and engineering machinery, while also focusing on attracting foreign investment from companies like Samsung Electric and others [2] - Ongoing projects include the construction of large industrial drive motors, new energy materials, and high-performance energy storage systems, with a focus on ensuring timely completion and production [2] Group 2: Innovation and Entrepreneurship - The zone is enhancing enterprise services by promoting innovation and nurturing "gazelle" and "unicorn" companies, with a focus on increasing the number of national high-tech enterprises [3] - Collaboration with universities and research institutions is being strengthened to support technological innovation, including the establishment of a national wind power technology innovation center [3] - Talent recruitment initiatives are being implemented to attract high-level professionals, with a focus on creating a platform for supply and demand between enterprises and talent [3] Group 3: Reform and Mechanism Innovation - The zone is reforming its organizational structure to enhance communication between development zones and enterprises, including increasing positions for young cadres [4] - Efforts are being made to improve the investment attraction mechanism, including the establishment of a performance-based compensation system for investment teams [4] - The transformation of state-owned platform companies is being promoted to develop future industries such as new energy and big data, while also optimizing asset utilization and financing channels [4]

Group 1: Termination of Acquisition - The company actively engaged with major transaction parties to assess the feasibility of the significant asset restructuring and communicated comprehensively regarding the transaction plan [2] - The termination of the acquisition was based on changes in the market environment and the actual situation of the target company, which differed from the initial planning phase [2] - The decision to terminate the transaction was approved by the company's board after thorough research and discussions with relevant parties [2] Group 2: Company Management and Strategy - The company will continue to enhance internal management and focus on iterating core capabilities, aiming for sustainable and healthy operational results [3] - 中核科技 is positioned as an important equipment manufacturing platform within 中核集团, and the termination of the acquisition will not affect its main business operations [4] - Future development strategies include strengthening the valve main business and capital operations, with a focus on market expansion, technological innovation, and digital transformation [4] Group 3: Financial Performance and Market Position - As of July 7, 2025, the total number of shareholders was 75,300 [5] - The company plans to disclose its 2025 semi-annual report on August 28, 2025, which will provide specific performance data [3] - The company aims to maintain a stable net profit margin for its nuclear valve products, despite competitive pressures in the market [5] Group 4: Investor Relations and Market Management - The company emphasizes enhancing intrinsic value through various measures, including market-oriented reforms and compliance management [9] - The management is closely monitoring stock price performance following the termination of the acquisition, acknowledging that stock prices are influenced by multiple factors [10] - The company commits to timely and accurate information disclosure to protect investor interests [10]

Group 1 - The central government emphasizes the high-quality development of the marine economy, with the national marine GDP expected to reach 11.18 trillion yuan in 2025, reflecting a year-on-year growth of 5.9% in 2024 [4][11][20] - The marine economy's contribution to the national GDP is projected to be 7.8%, with 15 marine industries achieving a total added value of 4.3733 trillion yuan in 2024, growing by 7.5% [21][22] - The deep-sea technology sector is identified as a key area for development, with significant investments and strategic initiatives aimed at enhancing capabilities in underwater observation, construction, and resource extraction [9][30][31] Group 2 - The report identifies 11 companies within the deep-sea economic industry chain listed on the Beijing Stock Exchange, including Audiwei (ultrasonic underwater ranging sensors), Wantong Hydraulic (hydraulic cylinders for offshore drilling platforms), and Klete (ventilation and air treatment systems) [40] - The marine engineering equipment manufacturing industry in China is experiencing a recovery, with an expected added value of 112.6 billion yuan in 2025, following a growth of 9.1% to 103.2 billion yuan in 2024 [30][33] - The report highlights the increasing market interest in deep-sea technology, with emerging sectors such as deep-sea energy storage and carbon sequestration expected to drive future growth [31][32]

Group 1 - The company held its 29th meeting of the fifth board of directors on July 1, 2025, with all 7 directors present, ensuring compliance with legal and regulatory requirements [2][3][4] - The board approved the draft of the 2025 Restricted Stock Incentive Plan to attract and retain talent, aligning the interests of shareholders, the company, and core team members [3][7][50] - The plan proposes to grant 7,713,799 shares of restricted stock, accounting for 1.00% of the company's total share capital of 768,573,661 shares [45][52] Group 2 - The board also approved the management measures for the implementation of the 2025 Restricted Stock Incentive Plan, ensuring the plan's smooth execution [7][17] - The plan requires approval from the third extraordinary general meeting of shareholders scheduled for July 17, 2025 [6][12] - The incentive plan includes a detailed assessment mechanism to evaluate the performance of the incentive objects, which includes directors, senior management, and key technical personnel [20][70] Group 3 - The company will hold the third extraordinary general meeting of shareholders on July 17, 2025, with both on-site and online voting options available [25][26] - The voting will be conducted through the Shanghai Stock Exchange's network voting system, allowing shareholders to participate conveniently [26][28] - The company emphasizes the importance of the incentive plan in fostering long-term development and aligning interests among stakeholders [50][71]

Summary of Conference Call Records Industry and Companies Involved - **Industry**: Mechanical and Export Industry - **Companies**: - Spring Wind Power (春风动力) - Jiechang Drive (捷昌驱动) - Zhejiang Dingli (浙江鼎力) - Haomai Technology (豪迈科技) - Nuo Wei Co., Ltd. (纽威股份) Key Points and Arguments Spring Wind Power - Significant contribution from four-wheeled vehicle sales in the U.S., accounting for approximately 20% of total revenue and contributing about 30% to gross profit [1][2] - Implemented measures to mitigate tariff risks, including: - Surge exports starting Q4 2024 to capture market share before tariff increases [4] - Prepared six months of inventory to ensure supply chain stability [4] - Increased production capacity in Mexico, currently producing 1,000 to 2,000 units monthly, with plans to raise annual capacity to 60,000 to 70,000 units if tariffs escalate [5][2] - Long-term growth driven by expansion in North American four-wheeled vehicle business and global market share in large-displacement motorcycles [3] Jiechang Drive - Exposure to U.S. tariffs primarily in linear drive products, with less than 10% of revenue directly affected [2][3] - Core valuation driven by humanoid robot business, particularly linear actuators and dexterous motor modules [6] - Measures taken to counter tariff impacts include: - Overseas production in Malaysia and the U.S. [6] - Price negotiations with clients to offset additional costs from tariffs [6] - Expected profit for 2025 is projected between 450 million to 480 million yuan, with a valuation of 34 times PE [3] Zhejiang Dingli - As a leading aerial work platform company, it faced significant impacts from U.S.-China tariffs, with stock prices still below pre-tariff levels despite recent recoveries [1][9] - Primarily domestic production with no current plans for overseas factories, focusing on increasing shipments to the U.S. to mitigate tariff impacts [1][11] - The company’s U.S. revenue is projected to be around 30% in 2024, but net profit from the U.S. is expected to be less than 10% due to tariffs and operational costs [9] Hardware Tools Industry - The hardware tools sector has the highest exposure to the U.S. market within the mechanical sector, with 80% of global demand concentrated in Europe and the U.S. [14] - Chinese companies primarily act as OEMs, with limited penetration into the U.S. market [14] - Recent shifts in production capacity towards Southeast Asia due to tariff policies, with leading companies likely to capture market share from smaller manufacturers [15] Tariff Policy Impacts - Tariff changes have led to a shift in production strategies, with companies moving equipment from China to Southeast Asia rather than merely expanding existing facilities [15] - Potential for price increases in the U.S. market due to inventory depletion, which may suppress demand [15] - ODM businesses are relocating to Southeast Asia, while OBM businesses face challenges in price transmission due to tariffs [16][17] European Market Dynamics - Improved geopolitical relations between China and Europe may enhance market demand for European exports [20][21] - European countries are expected to increase military and infrastructure spending, potentially boosting demand for exports [21][22] - Companies like Juxing Technology and Zhejiang Dingli have significant revenue from Europe, indicating a growing importance of the European market in the context of U.S.-China trade relations [22] Other Important Insights - Increasing challenges for companies establishing factories in Mexico due to local labor requirements and production efficiency issues [18] - The trend of companies preferring Southeast Asia over the U.S. or Mexico for new factories is driven by cost considerations and geopolitical risks [19] - The overall sentiment indicates a cautious optimism regarding the recovery of export chains as tariff conditions improve [20][22]