1. Report Industry Investment Rating - No relevant content provided 2. Core View of the Report - The report is about the institutional research on Sinopec Machinery. The company attaches great importance to the collection of accounts receivable and has increased the cash received from selling goods and providing services. It will continue to enhance its operating performance, focus on high - end, intelligent, green and service - oriented development, and strive to reward shareholders with excellent performance. In 2025 H1, the company achieved good results in orders, new orders in the international market, and new orders in the hydrogen energy equipment business [23][25][26] 3. Summary According to the Catalog 3.1 Research Basic Situation - Research object: Sinopec Machinery - Industry: Special equipment - Reception time: August 26, 2025 - Reception personnel: Chairman Wang Junqiao, Independent Director Guo Wei, Financial Controller Wei Gang, Secretary of the Board Wang Wuhong [16] 3.2 Detailed Research Institutions - The reception object is all investors who participated in the company's 2025 semi - annual performance briefing online, and the reception object type is "other" [19] 3.3 Research Institution Proportion - No relevant content provided 3.4 Main Content Data - **Accounts receivable**: The company has formulated a special action plan for improving accounts receivable management (2025 - 2027), established a special action working group, and formed a multi - department collaborative working mechanism. In the first half of 2025, the cash received from selling goods and providing services increased by 530 million yuan year - on - year [23][24] - **Corporate responsibility**: As a state - owned enterprise, the company is responsible to the country, society and shareholders. It will continue to enhance its operating performance, focus on high - end, intelligent, green and service - oriented development, and strive to reward shareholders with excellent performance [25] - **Order situation in H1 2025**: The company achieved orders of 4.94 billion yuan, a year - on - year increase of 14%. Among them, oil drilling and production equipment was 1.8 billion yuan, drilling tools were 550 million yuan, steel pipes were 900 million yuan, and gathering and transportation equipment was 350 million yuan [26] - **Hydrogen energy equipment business**: In H1 2025, the new orders of the hydrogen energy equipment business reached 75 million yuan, a year - on - year increase of 21%. The company is involved in national and local hydrogen energy projects, has won multiple orders, and has the ability to mass - produce hydrogen - transporting steel pipes [29] - **International market**: In H1 2025, the new orders in the international market reached 1.21 billion yuan, a year - on - year increase of 15%. The company's drilling and production equipment has obtained batch orders in the Asian and African markets, and high - end equipment has been applied in the African market [28][29] - **Production line transformation**: The company has introduced robot welding production lines, digital processing production lines and advanced MES manufacturing systems to enhance production manufacturing capabilities [30] - **Accounts receivable increase reason**: The increase in accounts receivable in H1 is mainly due to the increase in accounts receivable within one year, which is a normal business activity. The company has a strict credit management policy [30] - **Incentive target and market value management**: The company will strive to achieve the annual operating target, and whether the equity incentive target can be achieved depends on the operating conditions of benchmarking enterprises. In terms of market value management, the company will improve information disclosure quality and strengthen investor relations management on the basis of improving operating performance [31] - **Q3 performance**: Specific performance needs to be concerned about the subsequent disclosure of the 2025 Q3 report [32] - **Daye cave hydrogen storage project**: The company has won the bid, and the contract is being signed [33]

Core Viewpoint - The company held a semi-annual performance briefing for 2025, emphasizing its commitment to improving accounts receivable management and enhancing operational performance to benefit shareholders [1][2][3]. Accounts Receivable Management and Cash Flow - The company has implemented a specialized action plan for accounts receivable management from 2025 to 2027, focusing on reducing existing receivables, improving quality, and controlling new receivables [2]. - Cash received from sales and services increased by 530 million yuan year-on-year in the first half of 2025 [2]. Corporate Responsibility and Commitment to Shareholders - As a state-owned enterprise, the company emphasizes its responsibility towards national energy security and shareholder interests, aiming to enhance operational performance through advanced technology and integrated solutions [3]. - The company is committed to high-end, intelligent, green, and service-oriented development, particularly in drilling tools and equipment [3]. Orders and Business Development - In the first half of 2025, the company achieved an order volume of 4.94 billion yuan, a 14% increase year-on-year [4]. - Specific segments include 1.8 billion yuan for oil drilling equipment, 550 million yuan for drilling tools, 900 million yuan for steel pipes, and 350 million yuan for gathering equipment [4]. - The hydrogen energy equipment segment saw new orders of 75 million yuan, a 21% increase, reflecting the company's active participation in the hydrogen energy industry [4]. - International orders reached 1.21 billion yuan, marking a 15% increase, with significant orders from markets in Asia and Africa [4]. Other Key Points - The company is enhancing production capabilities by introducing robotic welding lines for manufacturing processes [5]. - The increase in accounts receivable is attributed to varying settlement cycles for different products, alongside strict credit management policies [5]. - The company aims to achieve its annual operational targets and is considering stock incentive goals based on peer comparisons [5]. - The company has won a bid for the Daye cavern hydrogen storage project, with the contract currently in the signing process [5].

Fundraising Plan - The company plans to raise a total of 220 million yuan through a simplified procedure for issuing shares to specific targets, which will be fully allocated to the high-end marine engineering equipment manufacturing base project [1][2] - The net amount raised after deducting related issuance costs will be used for the project, and if the actual net amount is less than the planned investment, the company will adjust the funding accordingly [1] Project Overview - The high-end marine engineering equipment manufacturing base project aims to fill the domestic gap in high-end deep-sea oil and gas equipment and enhance the company's competitive edge in the marine engineering equipment market [2][3] - The project will focus on key technologies such as underwater production systems and intelligent control systems, with an investment total of 110 million yuan and a construction period of 1.5 years [2][3] Market Opportunity - The global marine engineering equipment market is experiencing a significant upturn, with a projected order value of 27.22 billion USD in 2024, marking an 85.1% year-on-year increase [3] - China is leading the global market with an order value of 11.6 billion USD, accounting for 69.4% of the global total in terms of added value [3] Competitive Advantage - The company has established a comprehensive development model across the oil and gas exploration and production value chain, with a focus on high-end drilling equipment, which constitutes over 38% of its total revenue [5][6] - The company has successfully developed advanced products such as high-pressure blowout preventers and intelligent control systems, which are already in use in major offshore oil fields [5][6] Strategic Alignment - The project aligns with national strategies to enhance energy security and promote the localization of high-end oil and gas equipment, reducing reliance on foreign imports [6][7] - The company aims to leverage its technological capabilities to drive innovation in the oil and gas equipment sector, contributing to the high-quality development of marine oil and gas technology [7][8] Financial Projections - The project is expected to generate an annual revenue of 242.458 million yuan upon reaching full production, with a return on investment of 19.80% and a payback period of approximately 6.53 years [14] - The company has already secured necessary approvals for the project from local authorities, indicating a favorable regulatory environment [14] Acquisition of Blue Ocean Intelligence - The company plans to acquire 51% of Beijing Blue Ocean Intelligence Energy Technology Co., Ltd. for 60 million yuan, enhancing its capabilities in intelligent drilling technology [14][15] - Blue Ocean Intelligence specializes in data-driven solutions for drilling efficiency and risk management, which will complement the company's existing offerings [15][16]

Core Viewpoint - The modern industrial system of Deyang City is driven by innovation, characterized by industrial collaboration and a focus on green and low-carbon development, aiming to create a multi-dimensional development framework that includes the renewal of traditional industries, the rapid rise of emerging industries, and the forward-looking layout of future industries [1][14]. Group 1: New Quality Productive Forces Overview - New Quality Productive Forces are defined as advanced productive forces characterized by high technology, high efficiency, and high quality, driven primarily by innovation, and aligned with the new development philosophy [2][3]. - This concept emphasizes the importance of technological innovation, digitalization, networking, intelligence, and greening as key features and directions for economic development [3]. Group 2: Economic Performance of Deyang City - Deyang's GDP is projected to reach 326.54 billion yuan in 2024, with a year-on-year growth of 7.2%, ranking among the top in the province [4]. - The industrial structure is optimized, with the primary, secondary, and tertiary industries contributing 8.5:51.4:40.1 to the economy, indicating a strong industrial base and improving service sector efficiency [5]. Group 3: Industrial Development Trends - Deyang's industrial output value is expected to reach 152.52 billion yuan in 2024, with a growth rate of 9.3%, contributing 60.1% to economic growth [7]. - The "3+1" leading industries, including machinery equipment, materials and chemicals, and digital economy, show significant growth rates of 15.8%, 16.9%, and 16.5% respectively, while high-tech manufacturing has seen explosive growth of 22.5% [7][10]. Group 4: Innovation and Technology - Deyang has been recognized as a national innovation-driven demonstration city, with significant advancements in its innovation ecosystem, including the establishment of key laboratories and the attraction of national research institutions [9][10]. - The city has added 68 high-tech enterprises and 205 technology-based SMEs, with high-tech industry revenue surpassing 170 billion yuan, reflecting a year-on-year growth of 12% [10]. Group 5: Policy Framework for New Quality Productive Forces - Deyang has implemented a series of policies to support the "3+1" leading industries, focusing on innovation, technology transformation, and digital transition, providing comprehensive policy support for the formation of new quality productive forces [12][13]. - The government aims to enhance industrial competitiveness through targeted investment and support for key sectors, including energy equipment and oil and gas drilling [12][14]. Group 6: Modern Industrial System - The modern industrial system in Deyang emphasizes innovation-driven development, industrial collaboration, and green low-carbon initiatives, with a focus on upgrading traditional industries and accelerating the rise of emerging industries [1][14]. - Key sectors include high-end equipment manufacturing, advanced materials, electronic information, new energy, and aerospace, with leading companies driving growth in these areas [21][23]. Group 7: Future Development Trends - Deyang is set to focus on technological innovation as a core driver, aiming to enhance the high-end upgrade of traditional industries while fostering new industries such as renewable energy and commercial aerospace [24][25]. - The city plans to deepen regional collaboration and expand international cooperation, leveraging its strategic location to enhance industrial synergy and resource sharing [26][27].

Core Insights - A transformation driven by technological innovation is accelerating in Ningxia and Gansu, focusing on new productive forces in traditional industries and emerging sectors [1][3] Group 1: Ningxia's Financial Support for Innovation - Weili Transmission Technology Co., Ltd. has successfully developed key components for China's first 10MW offshore wind turbine, supported by continuous financial services from local banks [3][6] - The China Bank Ningxia Branch provided a stock repurchase loan of 54 million yuan, marking a significant financial milestone for Weili Transmission [3] - The Ningxia Shared Group has received a total of 488 million yuan in loans from various banks to support its 3D printing technology development [6] Group 2: Gansu's Financial Strategies for Traditional and Emerging Industries - Gansu's banking sector is focusing on supporting new productive forces, with Gansu Defu New Materials Co., Ltd. receiving a 30 million yuan loan from the Export-Import Bank to enhance its production capabilities [9][10] - Lanzhou Lanshi Petroleum Equipment Engineering Co., Ltd. benefited from a 700 million yuan working capital loan to support its technological advancements [10] - The "Blue Sky Potato" agricultural industry chain platform has directly served over 29,000 potato farmers, facilitating the purchase of 1.345 million tons of potatoes [10]

Group 1: Financial Support in Ningxia - The transformation of traditional industries in Ningxia is supported by financial services, exemplified by Weili Transmission's success in producing key components for large offshore wind turbines, aided by loans from local banks [2][3] - Weili Transmission received a stock repurchase loan of 54 million yuan from Bank of China Ningxia Branch, marking a significant financial milestone for the company [2] - The Ningxia banking sector has provided comprehensive financial services to 238 high-tech enterprises and 167 specialized enterprises, promoting the development of technology-driven industries [3] Group 2: Innovations in Manufacturing - The Shared Group has pioneered the industrial application of 3D printing technology in casting, supported by a total of 488 million yuan in loans from various banks over seven years [3] - Ningxia Zhonghuan Photovoltaic Materials Co., Ltd. is producing 50GW solar-grade monocrystalline silicon rods, backed by a 7.3 billion yuan syndicated loan from eight banks [4] Group 3: Financial Initiatives in Gansu - Gansu's banking sector is focusing on supporting new productive forces, with initiatives aimed at revitalizing traditional industries and fostering new ones [5] - Defu New Materials, a producer of electrolytic copper foil, received a 300 million yuan loan from the Export-Import Bank of Gansu to expedite its project development [6] - Gansu Bank provided 700 million yuan in working capital loans to support the technological advancements of Lanzhou Lanshi Petroleum Equipment Engineering Co., Ltd. [7] Group 4: Agricultural Innovations - The "Blue Sky Potato" agricultural industry chain platform, established by China Construction Bank in Gansu, connects various stakeholders in the potato industry, enhancing operational efficiency [7][8] - Since its launch in 2022, the platform has served over 29,000 potato farmers and facilitated the purchase of 1.345 million tons of potatoes [8]