Core Viewpoint - The company, Hangzhou Fostar Deep Cold Equipment Co., Ltd., has reported significant growth in its financial performance for the first half of 2025, with a focus on enhancing operational quality and shareholder returns through strategic initiatives and governance changes [3][55]. Company Overview - The company is engaged in the manufacturing of deep cold equipment and aims to become a leading provider of air separation and LNG equipment [55]. - The company has a vision to be recognized as the most trusted and competitive manufacturer in its field, with a mission to provide comprehensive solutions for various industrial gas needs [55]. Financial Performance - For the first half of 2025, the company achieved a revenue of 1,475.65 million yuan, representing a year-on-year increase of 62.14% [56]. - The net profit attributable to shareholders was 251.21 million yuan, marking a 140.45% increase compared to the previous year [56]. - The overall gross margin improved to 27.23%, an increase of 5.28 percentage points year-on-year [56]. Strategic Initiatives - The company has implemented a "Quality Improvement and Efficiency Enhancement" action plan to drive high-quality development and protect investor interests [55]. - It has successfully expanded its international market presence, covering over 70 countries and regions, and has established strategic partnerships with major gas companies [56]. - The company is focusing on high-return gas operation projects to build a second growth curve amid challenges in the industrial gas market [57]. Governance Changes - The company has decided to cancel its supervisory board and amend its articles of association in compliance with new regulations, with the audit committee taking over the supervisory responsibilities [69]. - The company plans to enhance its governance structure by adding a worker representative director to the board, increasing the total number of directors [70]. Fund Management - The company raised 746 million yuan through its initial public offering, with a net amount of 658.89 million yuan after deducting issuance costs [39]. - As of June 30, 2025, the company has invested 428.45 million yuan of the raised funds into projects, with a focus on ensuring compliance with fund management regulations [40][51]. Innovation and R&D - The company emphasizes innovation in deep cold technology, with ongoing projects aimed at enhancing product quality and operational efficiency [62]. - It has filed two new invention patents related to intelligent monitoring methods for air separation devices, reflecting its commitment to technological advancement [63]. Shareholder Returns - The company prioritizes cash dividends for shareholder returns, having distributed a total of 79.21 million yuan in cash dividends for the 2024 fiscal year, which is 30.33% of its net profit [61].

Core Viewpoint - The company has terminated the acquisition of Henan Keyi Gas Co., Ltd., which will not adversely affect its operational performance or financial status [3]. Group 1: Acquisition Details - The company announced the termination of the share acquisition agreement, which releases both parties from any obligations under the previous intention agreement [2]. - The initial plan was to acquire 65.43% of Henan Keyi, a company specializing in industrial gas production and sales, with a registered capital of 91.6785 million yuan [3]. - Henan Keyi's 2023 revenue was 227 million yuan, with a net profit of 24.4581 million yuan, and for the first half of 2024, it reported revenue of 90.9285 million yuan and a net profit of 8.0745 million yuan [3]. Group 2: Strategic Implications - The acquisition was aligned with the company's "14th Five-Year" strategic development plan, aimed at expanding into the industrial gas investment and operation sector [4]. - The company has a strong focus on cryogenic equipment manufacturing and aims to leverage this to enhance its capabilities in industrial gas production [4]. - The termination of the acquisition was due to a failure to reach consensus on key terms after extensive negotiations and due diligence [4]. Group 3: Financial Performance - In 2024, the company reported a revenue increase and a net profit of 72.3668 million yuan, representing a year-on-year growth of 121.67% [5]. - The growth was attributed to a significant increase in both existing and new orders, as well as effective collection of accounts receivable [5]. - The company plans to continue focusing on long-term development, actively pursuing market opportunities, and expanding into clean energy and industrial gas investment operations [5].