Core Viewpoint - Recent research conducted by the well-known private equity firm, China Europe Rabbit Fund, on a listed company, Jinggong Technology, indicates a positive outlook for the carbon fiber market and highlights significant business developments and contracts in the pipeline [1] Company Overview - Jinggong Technology was founded in 1992 and listed on the Shenzhen Stock Exchange in June 2004 [1] - The company achieved a consolidated operating revenue of 1.729 billion yuan in 2024, representing a year-on-year growth of 12.25% [1] Market Demand and Contracts - The company holds an optimistic view on future carbon fiber market demand, noting that recent price adjustments by Jilin Chemical Fiber indicate that domestic small tow carbon fiber production has not met market needs [1] - Jinggong Technology has signed sales contracts for eight carbon fiber production lines with Jilin Guoxing, with an outstanding total amount of 875 million yuan remaining to be executed [1] - The standard configuration price for a 3-meter wide carbon fiber production line ranges from 160 million to 200 million yuan [1] Project Developments - The company has secured multiple projects with Jilin Jirun New Materials Co., Jilin Guoxin Carbon Fiber Co., and Shanghai Petrochemical [1] - There is a sufficient backlog of orders for carbon fiber equipment, including complete production lines and core equipment [1] - The implementation of orders from Saudi GIM is expected to positively impact the company's operating performance in 2025 and beyond [1] Subsidiary and New Projects - The wholly-owned subsidiary, Zhejiang Jinggong Carbon Material Technology Co., is advancing the investment and construction of a high-performance fiber project [1] - A contract for the first phase of a 150,000-ton green recycled material project with Jiarun New Materials is progressing smoothly [1] - The company has invested in Nanjing Yiwite and will provide carbon fiber composite products for electric lifting aircraft components [1] Product Launch and International Expansion - Jinggong Technology plans to launch a single-joint exoskeleton assistive robot in the market after July this year [1] - The company has exported core carbon fiber equipment to South Korea and is working on securing overseas orders [1] Employee Incentives - The company has introduced its first employee stock ownership plan, setting a target for a compound annual growth rate of 25% in net profit excluding non-recurring gains and losses for the three-year period from 2024 to 2026 [1]

Market Position and Competitive Advantage - The company holds a market share of over 50% in the carbon fiber production line sector, establishing itself as a leader in the domestic specialized equipment industry [2][15]. - Compared to international competitors, the company offers a higher cost-performance ratio and effective after-sales service, while it possesses unique independent innovation capabilities and leading production costs compared to domestic rivals [2][3]. Project Developments - The company is progressing well with the contract for a 50,000-ton main process device of the 150,000-ton green recycled new materials project, expected to be delivered in 2025 [3][9]. - The company has signed strategic cooperation agreements with various partners for charging station construction, with 177 sites approved and 82 signed contracts as of 2024 [3][4]. Industry Trends and Future Outlook - The company anticipates significant growth in the recycled fiber market, projected to increase from approximately 12 billion RMB in 2019 to around 20 billion RMB by 2025 [8][9]. - The company is focusing on the low-altitude economy and robotics sectors, with plans to develop electric vertical takeoff and landing aircraft components and exoskeleton robots [5][6]. Financial Performance - In 2024, the company achieved a total revenue of 1.728 billion RMB, a 12.25% increase from the previous year, while net profit decreased by 18.53% to 146.9 million RMB [19]. - The overall gross margin for 2024 was 29.21%, reflecting a decline of 3.06 percentage points due to changes in revenue composition [19]. Talent and R&D Investment - The company invested 120.21 million RMB in R&D in 2024, a 5.26% increase year-on-year, with 348 technical R&D personnel, accounting for 22.64% of the workforce [17][28]. - The "1511 Talent Action Plan" aims to attract high-level talent, with 10 PhDs and 47 master's graduates recruited in 2024 [17][20]. Shareholder Returns - The proposed profit distribution for 2024 includes a cash dividend of 1.50 RMB per 10 shares, totaling approximately 77.95 million RMB [19].

Core Viewpoint - The company is a leading domestic manufacturer of carbon fiber equipment, with a complete industrial chain from precursor equipment to carbonization and composite equipment, and has diversified into several fields including new energy equipment and intelligent machinery [1][2] Industry Overview - China has become the largest carbon fiber market globally, with demand increasing from 16,789 tons in 2015 to 69,075 tons in 2023, representing a compound annual growth rate of 19.34% [2] - In 2023, China's carbon fiber demand accounted for 60% of the global market, and the country holds a 48% share of global operational capacity [2] Company Performance - In the first three quarters of 2024, the company achieved revenue of 1.18 billion yuan, a year-on-year increase of 5.5%, but net profit and net profit excluding non-recurring items fell by 48% and 50.3% respectively [3] - The company has delivered over 30 production lines and has a domestic market share exceeding 50% [2][3] Future Prospects - The company is expected to secure 60-80 potential orders for carbon fiber production lines in the next 3-5 years, with a total order value estimated between 9.6 billion to 16 billion yuan [2] - The company aims for a revenue target of 2.2 billion yuan in 2024, nearing the peak revenue of 2022, which could significantly enhance fourth-quarter performance [12] Strategic Developments - In 2023, the company acquired 100% control of its subsidiary, Precision Robotics, and is collaborating on a humanoid robot project that utilizes high-strength carbon fiber materials [4] - The company has ongoing contracts exceeding 2 billion yuan, including multiple carbonization lines for various clients [7][8]