Summary of Jinbei Electric's Conference Call Company Overview - **Company**: Jinbei Electric - **Industry**: Electrical Equipment Manufacturing Key Financial Performance - **Revenue Growth**: In the first three quarters, revenue increased by 11.72% year-on-year, reaching 147.69 billion yuan in Q3, with a growth of 15.92% [2][3] - **Net Profit**: Net profit remained stable compared to the previous year, with a slight increase of 8.73% in Q3, totaling 4.64 billion yuan [3] - **ROE**: Return on Equity (ROE) improved to 11.23%, marking a historical high, indicating enhanced operational quality [2][3] - **Gross Margin**: Gross margin maintained above 10% throughout the first three quarters, although it decreased by 0.15 percentage points year-on-year due to rising copper prices [2][12] Cash Flow and Working Capital - **Operating Cash Flow**: The company reported a negative operating cash flow of 1.2 billion yuan in Q3, attributed to expanded sales scale, prolonged collection cycles, and increased inventory and accounts receivable due to rising copper prices [4][5] - **Future Cash Flow Plans**: A detailed collection plan has been established, with expectations for positive cash flow in Q4 [4][5] Business Segment Performance Battery Wire Industry Center - **Revenue**: Achieved 5.815 billion yuan in revenue, a 21% increase year-on-year, with net profit rising by 58% to 321 million yuan [6] - **Drivers of Growth**: Growth driven by stable orders in high and ultra-high voltage transformers, increased demand for new energy vehicles, and breakthroughs in the industrial motor market [6] Cable Business - **Revenue**: Generated 8.870 billion yuan, a 13% increase year-on-year, with Q3 net profit growing over 25% [7] - **Customer Strategy**: Focused on major clients in power, energy, and transportation sectors, with direct sales revenue increasing from 28% to 36% of total cable revenue [7] Emerging Market Developments - **New Areas**: The company is actively expanding into offshore wind, shield tunneling machines, and charging piles [8] - **Growth in Offshore Wind**: Shipment of offshore wind transformers and flat battery wires increased by 87% year-on-year [8] - **Charging Pile Cables**: Industrial cables for charging piles saw a 200% increase in shipments [9] International Expansion - **Czech Project**: Significant progress in the Czech project, with land and factory purchase agreements signed, aiming for partial production in 2026 and full production by mid-2027 [4][10][18] Dividend Policy - **New Dividend Policy**: The company amended its articles to ensure annual cash dividends of no less than 50% of distributable profits, signaling a commitment to shareholder returns [11][21] Future Outlook - **2025 Performance Expectations**: Projected revenue growth of approximately 10% and net profit growth of about 11% for the full year [16] - **2026 Projections**: Optimistic outlook for traditional power distribution and new energy vehicle sectors, with expected growth rates of 20%-30% [16][17] Market Dynamics - **Copper Price Impact**: The company has implemented hedging strategies to mitigate the impact of copper price fluctuations on profitability [12] - **European Market Pricing**: European prices for flat electromagnetic wires are over 50% higher than domestic prices, with a significant supply shortage in the region [26][27] Conclusion Jinbei Electric demonstrates robust financial health with strategic growth in key segments, proactive cash flow management, and a commitment to shareholder returns, while navigating challenges in the supply chain and market dynamics.

Summary of Jinbei Electric's Conference Call Company Overview - **Company**: Jinbei Electric - **Industry**: Electric Equipment Manufacturing Key Financial Performance - **Revenue**: 93.48 billion CNY, up 50% year-on-year [2][3] - **Net Profit**: 3.37 billion CNY, up 9.78% year-on-year [2][3] - **Net Profit Attributable to Shareholders**: 2.96 billion CNY, up 7.46% year-on-year [2][3] - **Return on Equity (ROE)**: Increased by 0.27 percentage points to 7.26% [2][3][12] Cash Flow and Inventory - **Operating Cash Flow**: Net outflow of 11.83 billion CNY, primarily due to increased inventory and longer collection cycles from direct sales [2][4][11] - **Inventory Increase**: Driven by rising copper prices and strategic stocking of high-demand products [4] Business Structure and Performance - **Business Structure Adjustment**: Significant improvement in performance with clean energy, smart grid, and smart equipment contributing 46.74 billion CNY, up 31% year-on-year, accounting for 50% of total revenue [2][6] - **Battery Wire Revenue**: 37.46 billion CNY, up 28% year-on-year, with net profit of 1.96 billion CNY, up 70% [2][6] Growth Drivers - **Battery Wire Segment Growth**: Driven by over 200% increase in sales of flat wires for ultra-high voltage transformers, 68% increase in sales of new energy vehicles, and strong performance in industrial motor applications [2][7] - **Cable Industry Performance**: Revenue of 55.42 billion CNY, up 12% year-on-year, despite declining margins due to real estate downturn and increased competition [2][8] Capacity Expansion - **Capacity Construction**: Ongoing projects include the signing of the Xiangtan Phase III project with a planned capacity of 30,000 tons/year for automotive flat wires [5][9] - **Production Trials**: The Hengyang base's smart equipment cable project began trial production in Q2, with further capacity expected to be released in the second half of the year [5][9] Export and International Market - **Export Growth**: Direct retail exports increased by 38%, with significant contributions from the battery wire segment and a breakthrough in cable exports [10] - **Czech Project**: Successfully completed registration, aiming for trial production by the end of this year or early next year [10][16] Market Trends and Challenges - **Gross Margin**: Slight decline to 10.32% due to copper price fluctuations and pressure on cable profitability [10] - **Debt Ratio**: Slight increase to 59%, remaining below the 60% threshold, indicating manageable debt levels [11] Future Outlook - **Sales and Margin Projections**: Anticipated 15%-16% growth in electronic wire sales, with stable margins expected if copper prices do not fluctuate significantly [14] - **Investment in Power Grid**: Optimistic outlook for future investments in the power grid, particularly in large projects [19] Conclusion Jinbei Electric has demonstrated strong financial performance and resilience in a challenging environment, with significant growth in key segments and ongoing capacity expansion. The company is strategically positioning itself to reduce reliance on traditional markets while enhancing its presence in emerging sectors.

Summary of Jinbei Electric's Conference Call Company Overview - **Company**: Jinbei Electric - **Industry**: Electric Wire and Cable Manufacturing Key Financial Performance - In Q1 2025, Jinbei Electric reported revenue of **4.097 billion** yuan, a year-on-year increase of **16.32%** [2][3] - Net profit attributable to shareholders was **136 million** yuan, up **1.84%** year-on-year [2][3] - Cash flow increased by **8.37%** year-on-year, indicating stable operational performance despite market challenges [2][3] Business Segment Performance - The business structure is becoming more balanced, with battery wires and electric wires/cables contributing approximately **40%** and **60%** to revenue, respectively [2][4] - Battery wire profits grew over **50%** due to investments in the power grid and demand from new energy vehicles [2][4] - Sales of flat wires for new energy vehicles and industrial motors increased by **38%** and **31%**, respectively [2][6] - Clean energy cable shipments (wind and solar) surged over **300%**, while industrial cable shipments for charging stations grew over **500%** [2][6] Market and Export Developments - Direct export shipments increased by over **10%** year-on-year, with significant sales to Europe, the Middle East, Central Asia, East Asia, and Southeast Asia [2][6] - The company released its first ESG report, emphasizing its commitment to sustainable development [2][6] Impact of Copper Price Fluctuations - Copper prices rose by **10%** year-on-year in Q1 2025, impacting profit margins [9][10] - The electronic wire segment, using a direct sales model and copper price hedging, experienced minimal profit impact from copper price fluctuations [8][10] - The power cable segment, which operates on a distribution model, faces exposure risks; however, overall profit impact from copper price changes remains limited [7][8] Future Outlook - The company anticipates continued revenue and profit growth in Q2 2025, contingent on stable copper prices [22] - Despite challenges in the real estate market affecting cable demand, strategic investments in power grid projects are expected to improve performance [15][22] - The company has over **3 billion** yuan in orders, with delivery cycles ranging from six months to one and a half years [21] Emerging Business and Market Trends - Demand for industrial applications, including industrial robot cables and charging station cables, is driving business growth [24] - The company is expanding its presence in the European market, with a factory expected to be operational by the end of the year [23] Conclusion - Jinbei Electric is navigating a challenging market environment with a balanced business structure and strategic investments, positioning itself for future growth despite external pressures from copper prices and real estate market fluctuations [2][3][7][15]