Core Viewpoint - Zhongkong Technology announced its investment in Zhejiang Humanoid Robot Innovation Center Co., Ltd., acquiring a 38.85% stake, which is not yet included in its consolidated financial statements but accounted for as an investment income from an associate [1] Group 1: Company Developments - In 2024, Zhongkong Technology will hold a 38.85% stake in Zhejiang Humanoid Robot Innovation Center Co., Ltd. [1] - The company’s robotics product line includes inspection and operation robots, collaborative equipment robots, supply chain logistics robots, and humanoid robots for industrial applications [1] - Zhongkong Technology is focusing on three main directions: "AI + platform + inspection and operation of hazardous sources, supply chain logistics, and humanoid robot equipment" [1] Group 2: Financial Performance - In the first half of 2025, the company's robotics business achieved revenue of 110.1454 million yuan [1] - The company secured new orders amounting to 200 million yuan [1]

Core Viewpoint - In 2024, Zhongkong Technology will become the largest single shareholder of Zhejiang Humanoid Robot Innovation Center Co., Ltd., holding a 38.85% stake, which is currently not included in Zhongkong Technology's consolidated financial statements but accounted for as an investment in an associate [2] Company Overview - Zhongkong Technology's robotics product portfolio includes four categories: inspection and operation robots, collaborative equipment robots, supply chain logistics robots, and humanoid robots for industrial applications [2] - The company is focusing on three main directions: "AI + platform + inspection and operation of hazardous sources, supply chain logistics, and humanoid robot equipment" [2] - Zhongkong Technology is continuously upgrading and scaling its process industrial robot solution "Plantbot" [2]

Core Viewpoint - The company reported a decline in revenue and net profit for the first half of 2025, but new business segments like industrial AI and robotics are showing rapid growth, which is helping to offset some of the pressures from traditional business areas [1][2]. Financial Performance - In the first half of 2025, the company achieved revenue of 3.83 billion yuan, a year-on-year decrease of 9.92% - The net profit attributable to shareholders was 354 million yuan, down 31.46% year-on-year - The non-recurring net profit was 289 million yuan, a decline of 38.86% year-on-year [1] Quarterly Analysis - In Q2 2025, the company reported revenue of 2.22 billion yuan, a year-on-year decrease of 11.56% - The net profit attributable to shareholders for Q2 was 234 million yuan, down 36.96% year-on-year - The decline in revenue and profit is attributed to industry competition, reduced bank wealth management and interest income, and increased foreign exchange losses [2] Business Segments - The company maintains a strong position in traditional business areas, with a 40.4% market share in distributed control systems (DCS) and a 31.2% market share in safety instrumented systems (SIS) in 2024 - Despite some slowdown in downstream investments, structural growth was observed in sectors like energy, building materials, and papermaking, with revenue growth of 82.58% in building materials and 77.56% in papermaking [3] International Expansion - The company has made significant strides in international markets, signing a pipeline project contract with Algeria's national oil and gas company, marking its entry into the top twenty global oil companies not funded by China - As of June 2025, the company has opened 200 global 5S stores, enhancing its global marketing service system [3] Strategic Initiatives - The company is implementing the "1+2+N" strategic framework, focusing on AI-driven intelligent operations - A new industrial agent generation platform (TPT 2) was launched, utilizing a mixed expert model (MoE) to reshape industrial software architecture and application models - The company is promoting a subscription-based revenue model, having signed contracts with 938 subscription clients by June 2025 [4] Investment Outlook - The company is positioned as a leader in process industrial automation, with promising growth in industrial AI and robotics, as well as new opportunities in international markets - Revenue forecasts for 2025-2027 are adjusted to 9.32 billion, 10.58 billion, and 12.06 billion yuan, with corresponding growth rates of 2.0%, 13.5%, and 14.1% - Net profit forecasts are revised to 1.14 billion, 1.27 billion, and 1.45 billion yuan, with growth rates of 1.9%, 11.8%, and 13.8% respectively [5]

Investment Rating - The report maintains a "Strong Buy" rating for the company, with a target price of 59.94 CNY [2][8]. Core Views - The company achieved a revenue of 9.139 billion CNY in 2024, representing a year-on-year growth of 6.02%. The net profit attributable to the parent company was 1.117 billion CNY, up 1.38% year-on-year, while the net profit excluding non-recurring items was 1.038 billion CNY, growing by 9.51% [2][4]. - For Q1 2025, the company reported a revenue of 1.607 billion CNY, a decline of 7.55% year-on-year, and a net profit of 120 million CNY, down 17.42% year-on-year [2][4]. - The company is focusing on industrial AI and robotics to drive the transformation of process industries, aiming to become a global leader in industrial AI [8]. Financial Summary - The total revenue forecast for 2025-2027 is 10.411 billion CNY, 11.802 billion CNY, and 13.294 billion CNY, with corresponding growth rates of 13.9%, 13.4%, and 12.6% [4][8]. - The net profit attributable to the parent company is projected to be 1.279 billion CNY, 1.462 billion CNY, and 1.667 billion CNY for the same period, with growth rates of 14.5%, 14.3%, and 14.0% respectively [4][8]. - The earnings per share (EPS) are expected to be 1.62 CNY, 1.85 CNY, and 2.11 CNY for 2025, 2026, and 2027 [4][8]. Market Performance - The company has seen a significant increase in its market share in core products, with industrial automation and intelligent manufacturing solutions revenue reaching 5.643 billion CNY, a year-on-year increase of 13.86% [8]. - The internationalization strategy has been successful, with overseas revenue reaching 749 million CNY, a growth of 118.27% year-on-year [8]. - The company has secured new contracts worth 1.355 billion CNY overseas, marking a growth of over 35% [8].