Core Viewpoint - Soft Control Co., Ltd. has shown a mixed performance in stock price and financial results, with a notable increase in revenue but a decline in net profit, indicating potential challenges in profitability despite growth in sales [1][2]. Financial Performance - As of September 30, 2025, Soft Control achieved a revenue of 5.65 billion yuan, representing a year-on-year growth of 15.82% [2]. - The net profit attributable to shareholders was 303 million yuan, which reflects a decrease of 11.75% compared to the previous period [2]. - The company has distributed a total of 5.27 billion yuan in dividends since its A-share listing, with 299 million yuan distributed over the last three years [3]. Stock Market Activity - On November 10, the stock price of Soft Control rose by 2.02%, reaching 9.09 yuan per share, with a trading volume of 114 million yuan and a turnover rate of 1.26% [1]. - The company’s market capitalization stands at 9.269 billion yuan [1]. - Year-to-date, the stock price has increased by 12.08%, with a 5-day increase of 5.33% and a 20-day increase of 2.02% [1]. Shareholder Structure - As of September 30, 2025, the number of shareholders decreased by 5.08% to 70,000, while the average number of circulating shares per person increased by 5.37% to 14,168 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the third-largest, holding 24.72 million shares, an increase of 436,000 shares from the previous period [3]. - New entrants among the top shareholders include Southern CSI 1000 ETF and Huaxia CSI 1000 ETF, holding 9.32 million and 5.54 million shares, respectively [3]. Business Overview - Soft Control, established on December 31, 2000, and listed on October 18, 2006, specializes in software and information technology solutions for the rubber industry [1]. - The company’s main business segments include rubber equipment systems (64.52% of revenue) and rubber new materials (34.82%) [1]. - The company is involved in various sectors, including IoT, RFID, automated logistics, and industrial intelligence [1].

Core Insights - Soft Control Co., Ltd. has seen a stock price increase of 8.38% year-to-date, with a recent 2.09% rise on November 5, 2023, reaching a price of 8.79 CNY per share [1] - The company reported a revenue of 5.65 billion CNY for the first nine months of 2025, reflecting a year-on-year growth of 15.82%, while the net profit attributable to shareholders decreased by 11.75% to 303 million CNY [2] - The company has a market capitalization of 8.963 billion CNY and operates primarily in the rubber industry, focusing on software and information technology solutions for tire manufacturers [1] Financial Performance - For the period from January to September 2025, Soft Control achieved a revenue of 56.50 billion CNY, which is a 15.82% increase compared to the previous year [2] - The net profit attributable to shareholders for the same period was 3.03 billion CNY, showing a decline of 11.75% year-on-year [2] - Cumulative cash dividends since the company's A-share listing amount to 5.27 billion CNY, with 2.99 billion CNY distributed over the last three years [3] Shareholder and Market Activity - As of September 30, 2025, the number of shareholders decreased by 5.08% to 70,000, while the average number of circulating shares per person increased by 5.37% to 14,168 shares [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited, which holds 24.72 million shares, an increase of 436,000 shares from the previous period [3] - New institutional shareholders include Southern CSI 1000 ETF and Huaxia CSI 1000 ETF, holding 9.32 million and 5.54 million shares, respectively [3] Business Overview - Soft Control specializes in the development and innovation of software and information technology equipment for the rubber industry, providing integrated intelligent solutions for tire companies [1] - The company's main revenue sources are rubber equipment systems (64.52%) and rubber new materials (34.82%), with a minor contribution from other areas (0.66%) [1] - The company is categorized under the mechanical equipment industry, specifically in specialized equipment, and is involved in various sectors including domestic software, industrial software, intellectual property, smart logistics, and tire pressure monitoring [1]

Core Viewpoint - Soft Control Co., Ltd. has experienced a decline in stock price and significant net outflow of funds, despite a year-to-date increase in stock price. The company operates in the rubber industry, focusing on software and equipment innovation, and has shown mixed financial performance in recent periods [1][2]. Financial Performance - As of September 10, 2025, Soft Control reported a revenue of 3.881 billion yuan for the first half of 2025, representing a year-on-year growth of 20.33%. However, the net profit attributable to shareholders decreased by 23.84% to 146 million yuan [2]. - Cumulative cash dividends since the A-share listing amount to 527 million yuan, with 299 million yuan distributed over the past three years [3]. Stock Market Activity - On September 19, the stock price fell by 2.04% to 8.64 yuan per share, with a trading volume of 196 million yuan and a turnover rate of 2.27%. The total market capitalization stands at 8.808 billion yuan [1]. - The stock has increased by 6.54% year-to-date, but has seen a decline of 2.37% over the last five trading days and a slight decrease of 0.92% over the last 20 days [1]. Shareholder Information - As of September 10, the number of shareholders increased by 15.27% to 76,700, while the average circulating shares per person decreased by 13.25% to 12,924 shares [2]. - As of June 30, 2025, Hong Kong Central Clearing Limited is the third-largest circulating shareholder, holding 24.2838 million shares, an increase of 2.5111 million shares from the previous period [3]. Business Overview - Soft Control, established on December 31, 2000, and listed on October 18, 2006, is headquartered in Qingdao, Shandong Province. The company specializes in the development and innovation of software and information equipment for the rubber industry, providing integrated intelligent solutions for tire manufacturers [1]. - The main revenue sources are rubber equipment systems (64.52%) and rubber new materials (34.82%), with other sources contributing 0.66% [1].

Group 1 - The stock price of Ruankong Co., Ltd. has declined for six consecutive days, with a total drop of 8.75% during this period, currently trading at 8.13 CNY per share [1] - The company specializes in software and information technology equipment for the rubber industry, providing integrated intelligent solutions for tire manufacturers, and is involved in IoT, RFID, automation logistics, and new rubber materials [1] - The main revenue composition of the company includes 64.52% from rubber equipment systems, 34.82% from new rubber materials, and 0.66% from other sources [1] Group 2 - Xinhua Fund has a significant holding in Ruankong Co., Ltd., with its Xinhua Steady Return Flexible Allocation Mixed Fund holding 152,700 shares, accounting for 2.58% of the fund's net value [2] - The fund has experienced a floating loss of approximately 24,400 CNY today and a total floating loss of 119,100 CNY during the six-day decline [2] - The Xinhua Steady Return Flexible Allocation Mixed Fund has achieved a year-to-date return of 15.16% and a one-year return of 42.98%, ranking 3209 out of 7967 in its category [2]

Core Viewpoint - The company, Ruankong Co., Ltd., reported a significant increase in revenue for the first half of 2025, but faced a decline in net profit due to various challenges, including foreign exchange losses and rising costs [1][2][3] Revenue Performance - In the first half of 2025, the company achieved a revenue of 3.881 billion yuan, representing a year-on-year growth of 20.33% [1][2] - The manufacturing and installation sector contributed the majority of revenue, amounting to 3.771 billion yuan, with a growth of 20.86% [2] - The overseas business revenue surged by 78.75% to 1.208 billion yuan, increasing its share of total revenue from 20.96% to 31.14% [2][3] Profitability Challenges - The company's net profit attributable to shareholders fell by 23.84% to 146 million yuan, with a non-recurring net profit of 131 million yuan, down 21.19% [1][3] - Foreign exchange losses significantly impacted profitability, with financial expenses related to exchange losses amounting to 11.746 million yuan, compared to a gain of 2.847 million yuan in the previous year [3] Cash Flow and Financial Health - The net cash flow from operating activities dropped by 60.37% to 102 million yuan, primarily due to increased procurement associated with business growth [4][5] - Accounts receivable rose to 1.366 billion yuan, a 31.73% increase from the end of the previous year, indicating pressure on cash flow [5] - Inventory levels increased by 15.06% to 7.996 billion yuan, reflecting significant capital tied up in unsold products [6]

Core Viewpoint - The company, Ruankong Co., Ltd., reported a significant increase in revenue for the first half of 2025, but faced a decline in net profit due to multiple challenges, including foreign exchange losses and rising costs [2][4]. Revenue Performance - In the first half of 2025, Ruankong Co., Ltd. achieved operating revenue of 3.881 billion yuan, representing a year-on-year growth of 20.33% [2][3]. - The manufacturing and installation sector contributed the majority of revenue, reaching 3.771 billion yuan, up 20.86% year-on-year [3]. - The company's overseas business revenue surged by 78.75% to 1.208 billion yuan, increasing its share of total revenue from 20.96% to 31.14% [3][4]. Profitability Challenges - The net profit attributable to shareholders fell by 23.84% to 146 million yuan, with a net profit of 131 million yuan after excluding non-recurring gains and losses, down 21.19% [4][5]. - Foreign exchange losses significantly impacted profitability, with financial expenses related to foreign exchange losses amounting to 11.746 million yuan, compared to a gain of 2.847 million yuan in the previous year [4]. Cost and Expense Analysis - Operating costs increased to 3.017 billion yuan, a year-on-year rise of 20.72%, slightly outpacing revenue growth [5]. - Taxes and additional charges surged from 15.544 million yuan to 121 million yuan, marking a 680% increase [5]. Cash Flow and Financial Health - The net cash flow from operating activities dropped by 60.37% to 102 million yuan, down from 257 million yuan in the previous year [6]. - Accounts receivable rose to 1.366 billion yuan, a 31.73% increase from the end of the previous year, indicating pressure on cash flow [6]. - Inventory levels increased to 7.996 billion yuan, up 15.06% from the end of the previous year, reflecting a significant investment in unsold products [7]. Strategic Outlook - The company is focusing on improving accounts receivable management and optimizing asset quality to mitigate risks associated with cash flow and inventory [6][7]. - Ruankong Co., Ltd. aims to adapt to changing domestic and international economic conditions to sustain growth and address potential challenges [7].

Core Viewpoint - The company, Soft Control Co., Ltd., reported a significant increase in revenue for the first half of 2025, but faced a decline in net profit due to various challenges, including foreign exchange losses and rising costs [1][3]. Revenue Performance - In the first half of 2025, Soft Control achieved a revenue of 3.881 billion yuan, marking a year-on-year growth of 20.33% [1][2]. - The manufacturing and installation sector contributed the majority of the revenue, reaching 3.771 billion yuan, up 20.86% year-on-year [2]. - The overseas business revenue surged by 78.75% to 1.208 billion yuan, increasing its share of total revenue from 20.96% to 31.14% [2]. Profitability Challenges - The net profit attributable to shareholders fell by 23.84% to 146 million yuan, with a net profit of 131 million yuan after excluding non-recurring gains and losses, down 21.19% [3]. - Foreign exchange losses significantly impacted profitability, with financial expenses related to foreign exchange losses amounting to 11.746 million yuan, compared to a gain of 2.847 million yuan in the previous year [3]. Cash Flow and Financial Health - The net cash flow from operating activities dropped by 60.37% to 102 million yuan, attributed to increased procurement due to business growth [5]. - Accounts receivable rose by 31.73% to 1.366 billion yuan, indicating pressure on cash flow and potential risks related to bad debts [5]. - Inventory levels increased by 15.06% to 7.996 billion yuan, reflecting significant capital tied up in unsold products [6]. Strategic Outlook - The company aims to enhance its accounts receivable management to mitigate collection risks and improve asset quality [5]. - Soft Control is focused on adapting to changing domestic and international economic conditions to sustain revenue growth [6].

Core Viewpoint - The company is expected to achieve record high net profit attributable to shareholders in 2024, driven by the growth of rubber equipment and new materials businesses, with significant revenue and profit increases reported [1][2]. Financial Performance - In 2024, the company achieved operating revenue of 7.178 billion yuan, a year-on-year increase of 27.10%, and a net profit attributable to shareholders of 506 million yuan, up 51.94% year-on-year [1][2]. - The weighted average return on equity (ROE) was 9.26%, an increase of 2.63 percentage points year-on-year, while the sales gross margin was 23.44%, down 2.56 percentage points year-on-year [1][2]. - For Q4 2024, the company reported revenue of 2.3 billion yuan, a year-on-year increase of 16.72%, and a net profit of 163 million yuan, up 31.80% year-on-year [3][4]. Business Segments - The rubber equipment system business generated revenue of 4.753 billion yuan in 2024, a year-on-year increase of 18.21%, while the rubber new materials business achieved revenue of 2.386 billion yuan, up 50.35% year-on-year [2]. - The company is advancing its investment in the petrochemical and fine chemical industry, with a planned investment of 308 million yuan for a new project in Panjin [2]. Cost and Expenses - In 2024, the company's selling, administrative, research and development, and financial expense ratios were 1.80%, 6.72%, 5.66%, and 0.47%, respectively, showing a decrease compared to the previous year [3]. - The net cash flow from operating activities was 916 million yuan, a significant increase of 295.89% year-on-year, attributed to higher cash inflows from operations [3]. Future Outlook - The company has set a dividend payout ratio of no less than 30% for the next three years, balancing long-term development and shareholder returns [6]. - Revenue forecasts for 2025-2027 are projected at 10.090 billion, 11.090 billion, and 11.694 billion yuan, with net profits of 768 million, 869 million, and 923 million yuan, respectively [7].