Core Viewpoint - The company is actively expanding its overseas market presence, particularly in Europe, the Middle East, India, and South Africa, although sales remain at an early stage and are relatively small in scale [1]. Group 1 - The company has been leveraging its technological and product advantages to explore international markets [1]. - Products such as cable fault testing equipment, transmission line fault testing products, and magnetic resistance motors have been sold in various regions [1]. - The company acknowledges that its overseas sales efforts are still in the initial phase [1].

Group 1: General Information - The research object is Kehui Co., Ltd., belonging to the power grid equipment industry, and the reception time is November 5, 2025. The listed company's reception staff includes the chairman Zhu Yijun, the board secretary Qin Xiaolei, the financial director Lü Hongliang, and the independent director Wang Chuanshun [16] - The detailed research institutions are investors who participated in the company's Q3 2025 performance briefing online, and the reception object type is others [19] Group 2: Main Content - The new application scenarios of reluctance motor products include the application of synchronous reluctance motor products in general occasions such as fans and water pumps, and the application of switched reluctance motors in occasions such as traction locomotives and crushers. These new scenarios highlight the energy - saving and unique advantages of reluctance motors and increase market demand [23] - The company will continue to leverage its technological and product advantages in power fault monitoring, accelerate the automation and intelligent iteration of power fault detection instruments and the independent and controllable upgrade of power line fault monitoring systems, follow the national innovation - driven and scientific development strategies, and improve market share [23] - At the end of Q3, the company's comprehensive gross profit margin increased by more than 2 percentage points compared to last year. The gross profit margin of the smart grid fault monitoring business increased by more than 4.5 percentage points compared to the same period last year, and the motor business gross profit margin increased by 0.17 percentage points compared to the same period last year [23]

Financial Performance - Company reported a total revenue of 209 million yuan for the first half of 2025, representing a year-on-year increase of 22.73% [1] - Net profit attributable to shareholders reached 16.13 million yuan, up 170.15% year-on-year [1] - Gross margin improved to 43.19%, an increase of 12.22% compared to the previous year [1] - Net profit margin increased to 7.76%, reflecting a significant rise of 125.86% year-on-year [1] - The total of selling, administrative, and financial expenses was 51.34 million yuan, accounting for 24.6% of revenue, a decrease of 9.81% year-on-year [1] Accounts Receivable and Cash Flow - Accounts receivable amounted to 231 million yuan, which is 755.97% of the net profit, indicating a large receivables balance [1][3] - Operating cash flow per share was -0.16 yuan, a decrease of 233.29% year-on-year [1] Business Model and Market Position - Company relies heavily on research and marketing for its performance, indicating a need for further analysis of these driving factors [2] - The company’s revenue composition includes approximately 270 million yuan from smart grid fault monitoring and automation, and 130 million yuan from reluctance motor business [3][4] - The smart grid fault monitoring and automation business has shown growth rates of 20.96% and 30.57% in 2024 and 2023, respectively, with gross margins of 55.20% and 58.51% [4] Product Insights - The reluctance motor products have a gross margin of around 17%, attributed to high material costs and a mature market with limited pricing power [4] - Future growth prospects for reluctance motors are promising, particularly in applications such as textile machinery and forging machinery, with potential for increased market demand and margin improvement [4]

Fundraising Overview - The company raised a total of RMB 250,185,200.00 from the issuance of 26.17 million shares at a price of RMB 9.56 per share, with a net amount of RMB 201,657,254.21 after deducting fees [1][17] - As of June 30, 2025, the company has utilized RMB 104,341,832.65 of the raised funds, including RMB 12,380,387.06 from self-raised funds and RMB 91,961,445.59 directly from the raised funds [2] - The remaining balance in the fundraising account is RMB 71,816,631.64 [2] Fund Management - The company has established a fundraising management system in compliance with relevant laws and regulations to ensure the proper management and use of the raised funds [2] - The company signed a tripartite supervision agreement with the underwriting institution and the bank holding the fundraising account to clarify the rights and obligations of all parties involved [3] Fund Usage and Returns - The company temporarily used RMB 1,700,000 of idle funds to supplement working capital, which has been fully returned to the fundraising account as of April 3, 2025 [6] - An additional temporary use of up to RMB 2,000,000 of idle funds for working capital was approved, with a return deadline of 12 months [7] - The company has engaged in cash management with idle funds, with a total rolling amount of RMB 13,300,000, yielding a total return of RMB 25,840.00 [9] Project Updates - The company has decided to extend the timeline for the "Magnetic Resistance Motor Industrial Base Project" to June 2027 after re-evaluating its feasibility [12] - The deadlines for the "Smart Grid Fault Monitoring and Automation Product Upgrade Project" and "Modern Electrical Automation Technology Research Institute Construction Project" have been extended to December 2025 [12] Asset Impairment - The company has recognized a total asset impairment provision of RMB 3,624,100.00 for the first half of 2025, which includes credit impairment losses and inventory write-downs [21][26] - The impairment provisions were approved by the audit committee and the board of directors, ensuring compliance with accounting standards [28][29]

Core Viewpoint - The report provides a comprehensive overview of the fundraising activities and financial management of Shandong Kehui Electric Power Automation Co., Ltd, detailing the actual amount raised, usage of funds, and compliance with regulatory requirements [3][20]. Fundraising Overview - The company raised a total of RMB 250,185,200.00 through the issuance of 26.17 million shares at a price of RMB 9.56 per share, with a net amount of RMB 201,657,254.21 after deducting various fees [3][5]. - As of June 30, 2025, the company had utilized RMB 104,341,832.65 of the raised funds, which included RMB 12,380,387.06 from self-raised funds and RMB 91,961,445.59 directly from the raised funds [5][15]. Fund Management - The company has established a dedicated management system for the raised funds, ensuring they are stored in a special account and used exclusively for designated projects [6][20]. - A tripartite supervision agreement has been signed with the underwriting institution and the bank managing the special account to clarify the rights and obligations of all parties involved [7][20]. Fund Usage and Returns - The company temporarily supplemented its working capital with idle raised funds, with a maximum of RMB 40 million approved for this purpose, and has returned RMB 17 million to the special account as of April 2025 [11][12]. - The company engaged in cash management with idle funds, achieving a total investment of RMB 133 million, yielding a return of RMB 25.84 million [15][20]. Project Updates - The company has decided to extend the timeline for the "Reluctance Motor Industrial Base Project" to June 2027, indicating ongoing commitment to this initiative [17][18]. - No changes were made to the funding usage for ongoing projects or new projects during the reporting period [19][20]. Governance Changes - The company has resolved to abolish the supervisory board, transferring its responsibilities to the audit committee of the board of directors, and will amend its articles of association accordingly [25].