Overview of Continuous Supervision Work - The sponsor institution has reviewed the company's information disclosure documents and supervised the establishment of regulations to prevent related parties from occupying company resources, manage raised funds, and ensure internal control [2] - The company effectively executed relevant regulations during the supervision period, with no major violations in operations [2] - The previous raised funds were utilized by October 2023, and there were no incidents requiring special on-site inspections [2] Issues Identified and Measures Taken - The company faced issues related to the execution of previous fundraising, but specific details were not applicable [3] Commitment Fulfillment Status - There were no violations or non-fulfillment of commitments by the company or its shareholders, and no applicable measures were noted [4] Other Matters - The company relies on raw materials such as copper and silicon steel, which are subject to price fluctuations in the commodity market, potentially impacting procurement costs and operating performance [6] - The manufacturing industry for power distribution and control equipment is technology-intensive, requiring continuous technological updates to maintain market share [6] - The company specializes in the R&D, manufacturing, and sales of core power distribution equipment, with market demand closely tied to the development of downstream applications [7] - The competitive landscape in the power distribution and control equipment manufacturing sector is intense, with numerous small enterprises competing primarily on price, and significant pressure from multinational corporations [8] - The company must attract and retain skilled professionals to sustain its technological advancements and operational capabilities, as competition for talent is increasing [9] - As of June 30, 2025, there were no pledges or freezes on shares held by the controlling shareholder, actual controller, directors, or senior management [9]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is expected to actively promote foreign trade exports in the second half of 2025, leading to a significant increase in annual performance [1] - The company has seen strong demand for transformers, driven by robust export needs, increased domestic investment in power grid construction, and rapid development in the new energy sector [9] - The company is expanding its overseas market presence and enhancing its production capacity to meet customer demands and improve order acquisition capabilities [9] Financial Performance Summary - Total revenue for 2023 is projected at 1,004 million yuan, with a year-on-year growth of 15.43%. This is expected to increase to 1,727 million yuan in 2025, reflecting a growth rate of 28.15% [1][10] - The net profit attributable to the parent company is forecasted to be 72.09 million yuan in 2025, showing a significant year-on-year increase of 68.18% [1][10] - The latest diluted EPS is expected to be 0.38 yuan per share in 2025, with a corresponding P/E ratio of 30.31 [1][10] Market Data Summary - The closing price of the company's stock is 11.58 yuan, with a market capitalization of 2,185.22 million yuan [6] - The company has a price-to-book ratio of 2.89 and a total circulating A-share market value of 1,558.93 million yuan [6] Operational Insights - The company achieved a gross margin of 14.02% in the first half of 2025, with variations across product lines, indicating potential for future improvement as the company expands its overseas market [9] - The company is actively pursuing new projects in smart new energy grid equipment and has acquired additional equity in a subsidiary to enhance its business and supply chain [9]

Core Viewpoint - The Beijing Stock Exchange has decided to terminate the review of the stock issuance application by KERUN Intelligent Control Co., Ltd. (stock code: 834062.BJ) for specific investors, following the company's request to withdraw the application. Group 1: Stock Issuance Details - KERUN Intelligent Control submitted its application for stock issuance on May 8, 2024, and later requested to withdraw it on July 16, 2025 [2]. - The total amount of funds intended to be raised from this issuance was not to exceed 309.88 million yuan, which was planned to be used for smart new energy grid equipment projects and flexible production line upgrades in the gold processing workshop [2][3]. - The issuance was aimed at specific investors, including various financial institutions and qualified individual investors, with the issuance price set at no less than 80% of the average trading price over the previous 20 trading days [3]. Group 2: Financial Performance - In the first quarter of 2025, KERUN Intelligent Control reported a revenue of 320 million yuan, representing a year-on-year increase of 56.55%, and a net profit attributable to shareholders of 12 million yuan, up 234.28% [6]. - For the full year of 2024, the company achieved a revenue of 1.35 billion yuan, a growth of 34.29%, but the net profit attributable to shareholders decreased by 41.31% to 43 million yuan [8]. - The company has experienced negative cash flow from operating activities for three consecutive years, with a net cash flow of -162 million yuan in the first quarter of 2025 [6][8]. Group 3: Ownership and Control - The company's chairman, Wang Rong, holds 40,401,380 shares, accounting for 21.95% of the total share capital, making him the controlling shareholder [5]. - Wang Rong and his spouse, Wang Longying, collectively hold 36.90% of the company's shares, significantly influencing shareholder resolutions [5].

Investment Rating - The report gives a "Buy" rating for the company with a target price of 12.66 CNY based on a 30x PE for 2025 [1][10]. Core Views - The company has a strong order backlog and is expanding its domestic and international market channels through both organic growth and acquisitions. It has established strategic partnerships to enhance its global market presence [1][10]. - Revenue projections for 2025-2027 are estimated at 1.595 billion, 1.902 billion, and 2.246 billion CNY, with corresponding net profits of 79 million, 100 million, and 138 million CNY [2][10]. Summary by Sections Company Overview - The company has been in the power equipment sector for 20 years, focusing on the development of transformers and expanding into new energy storage solutions. It has a stable management team with significant industry experience [6][13][20]. - The company has achieved a revenue of 1.348 billion CNY in 2024, with a year-on-year growth of 34.3% [2][29]. Domestic Market - The domestic market is benefiting from increased investment in the power grid, with a projected investment of over 8,250 billion CNY in 2025. The company is expanding its market channels and has a strong order backlog [39][41]. - The company has successfully won multiple tenders in various provinces, enhancing its market presence [6][39]. International Market - The company has made significant inroads into Southeast Asia, Africa, and Europe, securing contracts worth 0.6 billion CNY in Nepal and 0.73 billion CNY in Angola [9][10]. - A strategic partnership with HaiXing Electric will enhance the company's market penetration in specific overseas regions [9][10]. Financial Projections and Valuation - The company is expected to see substantial revenue growth, with estimates of 1.595 billion CNY in 2025, 1.902 billion CNY in 2026, and 2.246 billion CNY in 2027. Net profits are projected to grow significantly during this period [2][10]. - The report highlights a strong growth trajectory supported by a robust order book and expanding market channels [10][29].

Investment Rating - The report gives a "Buy" rating for the company with a target price of 12.66 CNY based on a 30x PE for 2025 [1][10]. Core Views - The company has a strong order backlog and is expanding its domestic and international market channels through both organic growth and acquisitions. It has established overseas channels in Asia, Africa, and Europe, and has formed a strategic partnership with HaiXing Electric Power to accelerate its global market penetration [1][6][10]. Summary by Sections Company Overview - The company has been focused on power distribution equipment for 20 years, with a rich product portfolio and continuous growth. It was established in 2004 and has evolved from producing low and high voltage switchgear to developing transformer products and entering the EPC field through acquisitions [6][13]. Domestic Market - The company is benefiting from increased investment in the power grid and is expanding its domestic market channels through both organic growth and acquisitions. It has won multiple tenders in various provinces and has acquired assets to enhance its market presence [6][39]. International Market - The company has made significant inroads into international markets, securing contracts in Southeast Asia, Africa, and Europe. It has established various channels for overseas expansion and has signed a strategic cooperation agreement with HaiXing Electric Power to leverage its overseas market advantages [6][9][10]. Financial Projections - The company is expected to achieve revenues of 1.595 billion CNY, 1.902 billion CNY, and 2.246 billion CNY for the years 2025, 2026, and 2027 respectively, with corresponding net profits of 79 million CNY, 100 million CNY, and 138 million CNY [2][10]. Profitability and Growth - The company has shown a strong growth trajectory with a revenue CAGR of 23.2% from 2019 to 2024. The gross margin for transformers improved in 2024 due to cost savings from in-house processing and direct sales to international clients [26][29].

Group 1: Investor Relations Activity - The company held an earnings presentation on May 16, 2025, via the Tonghuashun Roadshow platform, attended by investors [3][4] - Key personnel included Chairman Wang Rong, Vice General Manager Li Qiang, and Financial Officer He Yongfu [3] Group 2: Financial Performance - In 2024, the company achieved a total revenue of ¥1,347,620,535.10, representing a growth of 34.29% [9] - The net profit attributable to shareholders was ¥42,862,185.93, a decrease of 41.31% compared to the previous year [9] - The company’s foreign trade revenue reached ¥87,733,900, with direct exports accounting for ¥13,829,500 and indirect exports for ¥73,904,400, making up 6.51% of total revenue [5] Group 3: Research and Development - In 2024, the company invested ¥35,336,800 in R&D, which is 2.62% of its revenue [6] - The company holds a total of 105 authorized patents and 27 software copyrights, reflecting its commitment to innovation [6][7] Group 4: Market Strategy and Product Development - The company focuses on developing energy-efficient, environmentally friendly, and intelligent transformer products, targeting the renewable energy sector [13][15] - Future product development includes smart substations and energy storage containers, aligning with national "dual carbon" strategies [13][15] Group 5: Financial Management and Cost Control - Financial expenses increased by 111.15% year-on-year due to a rise in interest-bearing liabilities [5] - The company employs strategies such as supply chain optimization and production process improvements to control raw material costs [12] Group 6: Shareholder Returns - The company plans to distribute a cash dividend of ¥0.30 per 10 shares, totaling approximately ¥5,597,588.31 [11] Group 7: Industry Outlook - The power transmission and distribution industry is expected to grow due to factors like renewable energy integration and smart grid development [15]