Summary of Hangyang Co., Ltd. Conference Call Company Overview - Hangyang Co., Ltd. has become the largest manufacturer of ventilation equipment globally, with revenue exceeding 13 billion yuan [2][3] - The company is optimistic about the application of cryogenic technology in emerging strategic industries, particularly in the field of controlled nuclear fusion [2][3] Key Points on Controlled Nuclear Fusion - Hangyang Co., Ltd. is focusing on the controlled nuclear fusion market, which has significant growth potential, especially as the industry transitions from experimental to commercial phases [6][7] - The company aims to provide a complete solution, including core equipment and subsystem services, to establish a foundation for future commercialization [6][7] - The total investment for the Hefei nuclear fusion project is approximately 10 billion yuan, with the cryogenic system accounting for 1 billion yuan [12] Competitive Landscape - Hangyang faces competition from foreign players like Air Liquide and some domestic integrators in the controlled nuclear fusion sector [2][5] - The company is currently participating in tenders for auxiliary equipment to establish a foothold in the market, preparing for future commercialization [5][6] Strategic Initiatives - A dedicated team for controlled nuclear fusion projects was established in May to facilitate communication with key customers in Hefei and Chengdu [19][20] - The company is leveraging its existing technology and project experience to compete effectively, focusing on integrated solutions rather than individual components [13][17] Market Dynamics - The controlled nuclear fusion market is still in the experimental stage, but as commercialization progresses, there will be a surge in application demand [6][10] - Domestic manufacturers are primarily involved in supplying auxiliary cryogenic equipment, while core systems are still dominated by foreign suppliers [9][10] Financial Insights - The profitability of the cryogenic system is expected to improve as domestic production increases, although current profitability is limited due to intense competition [12][14] - The company is preparing for potential orders in the second half of the year, having already begun production of prototypes for nuclear fusion applications [23][25] Industry Trends - The nuclear fusion industry is anticipated to experience rapid commercialization within the next five years, providing opportunities for companies like Hangyang to benefit from market growth [10][11] - The steel industry has shown low capital expenditure willingness in the first half of 2025, but there are signs of improvement in the second half due to recent policy changes [29] Conclusion - Hangyang Co., Ltd. is strategically positioned to capitalize on the growing controlled nuclear fusion market through its technological expertise and established relationships with key customers, while also navigating competitive challenges and market dynamics effectively [2][6][7]