Core Insights - The intelligent computing industry in Shandong has exceeded 700 billion yuan in scale in the first nine months of this year, indicating significant growth and investment in this sector [1][5][6] - The emergence of large models in various industries, such as oil and gas, is enhancing operational efficiency and decision-making capabilities, particularly in the context of carbon capture and utilization [2][3] - The establishment of intelligent computing centers is crucial for meeting the growing demand for computational power across multiple sectors, including petrochemicals, biomedicine, and education [2][3][5] Industry Developments - As of September, Shandong has evaluated 249 large model products across various fields, with the large model industry achieving a business revenue of 5.026 billion yuan, reflecting a year-on-year growth of 102.25% [3][6] - The intelligent computing centers are designed to provide diverse computational capabilities, including general, intelligent, and high-performance computing, to support various applications [4][5] - The province has established 22 provincial-level intelligent computing cloud service centers, with a total computing power exceeding 20.4 EFLOPS, and the intelligent computing sector accounts for over 50% of this capacity [5][6] Technological Innovations - The construction of intelligent computing centers is being approached with a modular and prefabricated strategy, allowing for rapid assembly and deployment [4] - The collaboration between traditional and digital enterprises is fostering technological advancements, as seen in the partnership between Inspur and Shandong Tianrui Heavy Industry [4] - The integration of AI in various applications is accelerating the development and deployment of large model products, significantly reducing the time required for research and development tasks [6]

石油化工是东营的传统支柱产业。如今，于千万级别地质数据集中勘破油藏密码，在炼化生产与管网运 维中洞见异常的，是具备丰富专业知识的行业大模型。它们的出现，让"黑金"开发变得更具智慧与底 气。由当地企业胜软科技研发的识油大模型今年入选了省级"模型券"奖补名单，通过构建"预训练大模 型+行业知识库+智能应用"的技术体系来帮助更多企业建设油气专属大模型。 "以此为支撑，过去数月甚至更长时间才能完成的研发任务用时大大缩短，大模型产品加速'上架'，在 各个应用场景中开花结果。"省工信厅数据产业推进处处长孙志强表示。立足应用场景丰富优势，近年 来山东聚焦垂直领域大模型赛道深耕细作，持续提升完善算力等基础设施综合供给能力，深化人工智能 赋能应用，相关产业规模占全国9%左右，已经初步形成全产业链布局优势，预计全年数字经济规模将 超过经济总量的一半。 截至今年9月,山东通过第三方专业机构测 评的大模型产品达249个 今年1-9月，大模型产业实现业务收入 50.26亿元,同比增长102.25% 在CCUS（碳捕集、利用与封存）这一当地聚力打造的未来产业中，人工智能同样不可或缺：瞄准新型 高效捕集材料研发，大模型将传统数年的筛选周期 ...

Core Viewpoint - Shengruan Technology, a company spun off from Sinopec, is attempting to establish itself as an independent player in the smart oil and gas field, but faces significant challenges including high dependency on a major client, Sinopec, and declining profit margins [2][4][11]. Company Overview - Shengruan Technology was founded in January 2002 and was initially a subsidiary of Sinopec. It became fully employee-owned in 2004 [2][4]. - The founder, Xu Yafei, has a strong academic background in mathematics and has led the company for over two decades [3]. Financial Performance - The company reported revenues of 5.25 billion RMB in 2024, with a growth rate of 4.7% compared to 2023 [11]. - Revenue figures for the previous years were 3.91 billion RMB in 2022 and 5.02 billion RMB in 2023, showing a growth of 28.4% in 2023 [11]. - The gross profit margin has been declining, with figures of 41.4%, 38.1%, and 37.1% for 2022, 2023, and 2024 respectively, and a further drop to 24.6% in the first four months of 2025 [21][22]. Client Dependency - The company has a high dependency on Sinopec, with sales to Sinopec accounting for 64.9%, 51.4%, and 51.6% of total revenue from 2022 to 2024 [15]. - The top five clients contributed to 84.3%, 64.3%, and 70.3% of total revenue during the same period, indicating a significant concentration risk [15]. Operational Challenges - Shengruan Technology has faced issues with accounts receivable, with turnover days increasing dramatically to 1662 days in the first four months of 2025, highlighting potential cash flow issues [25]. - The company has experienced multiple accounting errors since 2021, leading to significant restatements of financial results and regulatory scrutiny [7][10]. Business Segments - The company operates primarily in three segments: smart energy solutions, smart manufacturing solutions, and smart city solutions, with smart energy contributing the largest share of revenue [11][13]. - The revenue breakdown for smart energy solutions was approximately 75.2%, 60.9%, and 69.4% for 2022, 2023, and 2024 respectively [12]. Future Prospects - Shengruan Technology plans to enhance its customer base and reduce reliance on major clients, having increased its customer count from 268 to 403 over three years [17]. - The company aims to invest in research and development, particularly in its oil and gas industry model, to improve its competitive position [27].

Core Viewpoint - Shandong Shengruan Technology Co., Ltd. has submitted a listing application to the Hong Kong Stock Exchange, aiming for a main board listing, with Guotai Junan Securities (Hong Kong) as the sole sponsor. This marks the company's second attempt to list in 2023 after previously withdrawing its application for the Beijing Stock Exchange in August 2024 [2] Company Background - Shengruan Technology was established in 1993, originally as part of the Sinopec Group. It became an independent entity in 2002 and has since developed into a digital solution provider for various industries, including oil and gas, offering intelligent manufacturing solutions across 12 sectors and supporting 88 industrial application scenarios [2][3] Business Model - The company operates three main business models: 1. Smart energy solutions for large and medium-sized energy enterprises in the oil and gas sector 2. Intelligent manufacturing solutions for small and medium-sized manufacturers in vertical industries such as petrochemicals and automotive parts 3. Smart city solutions for public management institutions [3] Market Position - Shengruan Technology is recognized as one of the top five independent solution providers in China's smart oil and gas solutions market, ranking second in the independent smart energy solutions sector. The company has completed approximately 5,000 smart energy projects and has expanded its services to other major energy companies in China and parts of the Middle East [5][8] Financial Performance - The company's revenue has shown consistent growth from 391 million RMB in 2022 to 525 million RMB in 2024, with profits increasing from 37.6 million RMB to 59.3 million RMB during the same period. However, the gross profit margin has been declining, from 41.4% in 2022 to 24.6% in the first four months of 2025 [8][10] Revenue Breakdown - The smart energy solutions segment is the primary revenue driver, contributing 75.2% of total revenue in 2022, which decreased to 65.4% in the first four months of 2025. The company also faces high customer concentration, with the top five customers accounting for over 70% of total revenue in recent years [10][12] Future Plans and Use of Proceeds - Shengruan Technology plans to use the funds raised from the IPO to enhance existing solutions, advance R&D, expand its sales network, and explore strategic investments and acquisitions in oil and gas fields. The focus is on strengthening technical capabilities and expanding market reach, aligning with the digital transformation trends in the energy sector [13]