Core Viewpoint - Jiangsu Changling Hydraulic Co., Ltd. experienced a significant stock price fluctuation, with a cumulative closing price deviation of 20% over three consecutive trading days from September 16 to September 18, 2025, which is classified as abnormal trading activity according to the Shanghai Stock Exchange rules [2][5]. Group 1: Stock Trading Abnormalities - The company's stock price increased significantly over three consecutive trading days, leading to a cumulative closing price deviation of 20% [2][5]. - The company conducted a self-examination and confirmed that there were no undisclosed significant matters apart from what has been publicly disclosed [2][10]. Group 2: Share Transfer Agreement - On July 10, 2025, a share transfer agreement was signed, where shareholders Summer Jifa and Summer Zemin planned to transfer a total of 43,211,714 shares, representing 29.99% of the company's total shares, to Huaxin Tingtao and Chenglian Shuangying [3][7]. - Additionally, Huaxin Polang intends to make a partial tender offer to acquire 17,290,448 shares, which accounts for 12.00% of the total shares, from all shareholders excluding Huaxin Tingtao and Chenglian Shuangying [3][7]. Group 3: Business Operations - The company primarily produces central swivel joints, tensioning devices, construction machinery swivel reducers, precision castings, and photovoltaic swivel reducers [6]. - The company confirmed that its main business operations have not changed, and the internal production activities are normal, with no significant adjustments in the market environment or industry policies [6][10]. Group 4: Market and Media Influence - The company has not identified any media reports or market rumors that could significantly impact its stock trading prices, nor is it involved in any market hot concepts [11]. - There were no significant stock trading activities by directors, supervisors, senior management, or controlling shareholders during the period of abnormal stock trading [12]. Group 5: Risk and Compliance - The board of directors confirmed that there are no undisclosed matters that should be disclosed according to the relevant regulations of the Shanghai Stock Exchange [15]. - The company emphasizes that all information should be verified through designated media and encourages rational investment decisions [15].

Core Viewpoint - The company, Weili Transmission, reported a significant increase in revenue for the first half of 2025, showcasing its enhanced competitiveness in the wind power transmission equipment market and strong order acquisition and delivery efficiency [1][2] Financial Performance - In the first half of 2025, the company achieved an operating income of 350 million yuan, a substantial increase of 113.17% compared to 164 million yuan in the same period last year [1] - Despite facing temporary pressure on net profit due to industry cycles and increased investments, the company continues to invest in core technology research and development, capacity building, and market expansion [1] Industry Position and Client Relationships - The company has established strong business relationships with well-known downstream wind turbine manufacturers, becoming a key supplier to domestic leaders such as Goldwind Technology, Dongfang Electric, and Envision Energy, as well as entering the qualified supplier lists of international firms like Siemens Gamesa and Germany's Enercon [2] - The transition to a low-carbon economy is accelerating global demand for clean energy, with wind power becoming increasingly important in the energy structure [2] Market Outlook - The Global Wind Energy Council (GWEC) projects that from 2025 to 2030, the global wind power installed capacity will increase by 981 GW, averaging 164 GW per year, which will directly drive the market demand for core components like wind power gearboxes [2] - The company plans to continue focusing on precision transmission, advancing product technology upgrades and cost optimization, while actively expanding into overseas markets to enhance global competitiveness [2]

1. Report Core View - The company, Weili Transmission, has achieved accelerated development after its listing in 2023, making significant progress towards becoming a global leading transmission equipment manufacturer through strategic layouts and initiatives [24][25]. - The company has established a clear and systematic strategic plan for overseas market expansion, with service points in multiple key markets and has entered the qualified supplier lists of several international well - known wind power companies [28]. - The company's wholly - owned subsidiaries have received project approvals for the "Thousands of Townships and Villages Wind - Powered Action", which will promote the coordinated development of its new energy power generation and wind power transmission businesses [28]. 2. Summary by Directory 01. Research Basic Situation - The research object is Weili Transmission, and the reception time was on July 25, 2025. The company's vice - president and board secretary, Zhou Jianlin, received the investors [17]. 02. Detailed Research Institutions - The research institutions include Haitong Securities (a securities company), Qianhai Life Insurance (a life insurance company), and Boshi Fund (a fund management company) [18]. 04. Main Content Data Company Overview - Investors visited the company's exhibition hall, precision reducer factory, and speed - increaser intelligent factory. Zhou Jianlin introduced the company's growth history, main business, core products, and the latest progress of the speed - increaser intelligent factory [24]. Strategic Layout After Listing - In 2023, the company was listed on the ChiNext of the Shenzhen Stock Exchange. It increased investment in R & D and production capacity expansion. The first wind power speed - increaser was successfully assembled and tested in 2023, and the Z5503A wind power speed - increasing gearbox passed the certification. In 2024, the wind power speed - increaser business had small - batch shipments [24]. - In October 2024, the company signed cooperation agreements with Goldwind Technology to enhance R & D, production, and market capabilities [25]. Industry Barriers of Wind Power Speed - increasers - There are technical barriers (complex design, high precision requirements, and strict tests), capital barriers (large capital demand), customer and certification barriers (strict supplier access and long verification periods), and brand and talent barriers (difficult for new brands to gain trust and hard to form a team) [26]. R & D Investment - In 2023, the R & D expenses were 4,255.96 million yuan, and in 2024, they were 5,134.78 million yuan, a 20.65% increase from the previous year. The cumulative R & D investment in the past three fiscal years was 12,611.41 million yuan [26]. - As of March 31, 2025, the company had 203 authorized patents, including 31 invention patents [27]. Advantages of Speed - increaser Products - The company's wind power speed - increasers have advantages such as smooth meshing, low noise, good sealing, high efficiency, light weight, and low cost, due to advanced technology and processes [27]. Overseas Market Expansion - The company has set up global service points in key markets like Hamburg, Chennai, and Tokyo. It has entered the qualified supplier lists of international wind power companies such as Siemens - Gamesa, Enercon, and Adani [28]. Participation in "Thousands of Townships and Villages Wind - Powered Action" - The company's wholly - owned subsidiaries have received project approvals for a total installed capacity of 65MW of wind power generators, which will promote business synergy and market competitiveness [28].

Company Overview - The company, Yinchuan Weili Transmission Technology Co., Ltd., successfully listed on the Shenzhen Stock Exchange's Growth Enterprise Market in August 2023, marking a significant milestone in its development [1] - The company has made substantial investments in R&D and capacity expansion post-listing, with the first wind power gearbox successfully assembled and certified in 2023 [1][2] R&D Investment - R&D expenses for 2023 amounted to CNY 42.56 million, with a projected increase to CNY 51.35 million in 2024, reflecting a growth of 20.65% [2] - Cumulative R&D investment over the last three fiscal years totals CNY 126.11 million, with the company holding 203 authorized patents as of March 31, 2025 [2] Product Advantages - The company's wind power gearbox is recognized as a critical component in wind turbine technology, featuring advantages such as low noise, high efficiency, and lightweight design [3] - The gearboxes are manufactured using high-quality alloy steel and advanced processing techniques, ensuring durability and performance [3][4] Market Expansion - The company has established global service networks in key markets, including Hamburg, Chennai, and Tokyo, enhancing customer response capabilities [4] - It has successfully entered the supplier lists of major international wind power companies, including Siemens Gamesa and Adani [4] Industry Barriers - Key barriers in the wind power gearbox industry include high technical requirements, significant capital investment, stringent customer certification processes, and the need for brand reputation [2] Sustainable Development Initiatives - The company’s subsidiaries have received approvals for projects under the "Thousand Villages and Ten Thousand Towns Wind Action," with a total installed capacity of 65 MW, promoting the development of clean energy [4]

Core Viewpoint - The company, Changling Hydraulic, is undergoing a potential change in control, leading to a suspension of its stock trading for an estimated period of no more than three trading days [2]. Group 1: Stock Suspension and Control Change - Changling Hydraulic announced that its stock will continue to be suspended from trading starting July 8, due to ongoing discussions regarding a significant matter that may result in a change of control [2]. - The company's major shareholders, Xia Jifa and Xia Zemin, are currently negotiating key terms of the transaction with the involved parties, which requires internal approval processes [2]. Group 2: Historical Context and Previous Suspensions - The company was listed on the Shanghai Stock Exchange on March 22, 2021, with a three-year lock-up period for its controlling shareholders, which will expire on March 22, 2024 [3]. - In January 2023, the company also suspended trading due to a similar situation regarding a potential change in control, which was later terminated due to disagreements on core terms with the transaction party [3]. Group 3: Financial Performance - For the year 2024, Changling Hydraulic reported a revenue of 883 million yuan, representing a year-on-year increase of 9.75%, while the net profit attributable to shareholders decreased by 6.84% to approximately 94.73 million yuan [4]. - This marks the fourth consecutive year of declining net profit since the company went public, contrasting with a steady increase in net profit from 2017 to 2020 [4].

Core Viewpoint - The actual controller of Changling Hydraulic is planning a significant matter that may lead to a change in the company's control [2] Group 1: Stock Suspension - Changling Hydraulic's stock (code: 605389) will be suspended from trading starting July 4, 2025, due to ongoing negotiations regarding a potential change in control [3] - The suspension is expected to last no more than two trading days to prevent abnormal fluctuations in the stock price [3] Group 2: Shareholding Structure - As of the end of Q1 this year, the major shareholders include Xia Jifa with 58.8 million shares (40.81% of total shares) and Xia Zemin with 39.2 million shares (27.21% of total shares) [3][4] - The total shareholding of the top five shareholders accounts for 77.75% of the total share capital, with a combined market value of approximately 33.84 billion yuan [4] Group 3: Business Overview - Changling Hydraulic operates in the hydraulic, casting, and photovoltaic industries, producing products such as hydraulic central swivel joints, tension devices, and precision castings [4] - The company completed the acquisition of Jiangyin Shangchi in 2023, entering the photovoltaic sector, which is expected to enhance its product offerings [5] Group 4: Financial Performance - In Q1 2025, Changling Hydraulic reported total revenue of 2.19 billion yuan, a year-on-year decrease of 2.64% [6] - The net profit attributable to the parent company was 310 million yuan, reflecting a year-on-year decline of 19.06% [6] - The company has a significant amount of accounts receivable, totaling 409 million yuan [5]

Core Viewpoint - The actual controller of Changling Hydraulic is planning a significant matter that may lead to a change in the company's control [2] Group 1: Stock Suspension - Changling Hydraulic's stock will be suspended from trading starting July 4, 2025, due to ongoing negotiations regarding the potential change in control [3] - The suspension is expected to last no more than two trading days to prevent abnormal fluctuations in the stock price [3] Group 2: Shareholding Structure - As of the end of Q1 this year, Xia Jifa holds 58.8 million shares, accounting for 40.81% of the total share capital, while Xia Zemin holds 39.2 million shares, accounting for 27.21% [4] - The total shareholding of the main shareholders and their concerted actions amounts to 112.01 million shares, representing 77.75% of the total share capital [5] Group 3: Business Overview - Changling Hydraulic operates in the hydraulic, casting, and photovoltaic industries, with products including hydraulic central swivel joints, tensioning devices, and precision castings [5] - The company completed the acquisition of Jiangyin Shangchi in 2023, entering the photovoltaic sector, which is expected to enhance its product offerings [6] Group 4: Financial Performance - In 2024, Changling Hydraulic's net profit attributable to the parent company decreased by 6.84%, despite an increase in revenue [6] - For Q1 this year, both revenue and net profit showed a year-on-year decline, with accounts receivable reaching 409 million yuan [6] - The total revenue for Q1 was 2.19 billion yuan, with a year-on-year change of 0%, while the net profit was 310 million yuan, down 19.06% year-on-year [7]