Summary of Jinlei Co., Ltd. Conference Call Company Overview - Jinlei Co., Ltd. specializes in the research, production, and sales of wind power main shafts and other large castings and forgings, including forged main shafts, cast main shafts, and bearing seats for wind power products, as well as precision shafts for the shipping and mining machinery industries [3][29]. Key Financial Highlights - For the first three quarters of 2025, Jinlei reported revenue of 2.119 billion yuan, a year-on-year increase of 61.35% [2][3]. - The net profit attributable to shareholders reached 305 million yuan, up 104.59% year-on-year, driven by increased wind power installations and growth in other industries [2][3]. - In Q3 2025, revenue was 836 million yuan, a 39.36% increase year-on-year, with net profit of 117 million yuan, reflecting a 56.5% year-on-year growth [3]. Product Sales and Future Trends - In Q3 2025, the sales volume of casting main shafts was approximately 30,000 tons, with forged main shafts also close to 30,000 tons, totaling 60,000 tons for all shaft products [4]. - The company anticipates a significant increase in industrial products, particularly other precision shafts, in Q4 2025 due to rising demand [5]. - The expected casting output for 2026 is between 130,000 to 140,000 tons, with wind power forging output projected to exceed 110,000 tons [4][10]. Market Outlook - The recent International Wind Energy Conference indicated positive signals for the wind power market in 2026, with customers optimistic about future demand and intent on securing production capacity [6]. - Jinlei is negotiating with overseas clients, maintaining stable pricing while actively developing new products [2][18]. Operational Insights - The operating cash flow in Q3 2025 showed a significant outflow due to increased sales requiring ongoing investment, raw material reserves, and the need for component procurement for assembly [7]. - The Dongying Jinlei Heavy Equipment Factory reported a net profit increase of over 200% in Q3 compared to Q2, marking a significant turnaround [8]. Production Capacity and R&D - The company’s gearbox bearing business has entered the second phase of trial production, with plans to complete sample deliveries by the end of the year and achieve 50% capacity utilization by the second half of next year [9]. - Jinlei is increasing R&D investments, particularly in the application of PEEK materials in wind power main shaft bearings [2][28]. Cost and Pricing Strategy - Raw material prices have been low since March 2025, and while future price trends are uncertain, the company is focusing on cost reduction through process optimization and efficient resource planning [19]. - The company maintains an optimistic outlook on pricing due to limited changes in supply despite rising costs from raw materials [10]. Future Business Directions - Jinlei plans to continue focusing on its core business in the main shaft sector while expanding casting capacity and pursuing differentiated strategies [29]. - The company is also exploring opportunities in the shipping, cement, mining, and hydropower sectors, establishing deep collaborations with state-owned enterprises in the shipping industry [29]. Conclusion - Jinlei Co., Ltd. is positioned for growth in the wind power sector, with strong financial performance, optimistic market outlook, and strategic investments in production capacity and R&D. The company is well-prepared to meet increasing demand and capitalize on emerging opportunities in both domestic and international markets [2][6][29].

Core Viewpoint - Jixin Technology (601218.SH) is experiencing a turnaround in performance, reporting significant revenue and profit growth, while planning to acquire assets to enhance its manufacturing capabilities and transition from a single supplier to a comprehensive component system supplier in the wind power industry [1][2]. Financial Performance - For Q3 2025, Jixin Technology reported revenue of 361 million yuan, a year-on-year increase of 11.84%, and a net profit attributable to shareholders of 32.51 million yuan, up over 10 times [1][2]. - For the first three quarters of 2025, the company achieved revenue of 1.076 billion yuan, a 19.14% increase year-on-year, and a net profit of 114 million yuan, reflecting a 213.98% growth [2]. - The gross margin for the first three quarters of 2025 was 21.71%, an increase of 6.7 percentage points compared to the previous year [2]. Market Dynamics - The wind power industry has been significantly influenced by policy changes, with a notable increase in demand for wind power components following the issuance of the "136 Document" in January 2025, which promoted market-oriented pricing for renewable energy [3]. - Jixin Technology's sales volume of wind power castings increased by 32% year-on-year in the first half of 2025, driven by favorable market conditions [3]. Strategic Acquisition - Jixin Technology plans to acquire 57.45% of Jiangsu New Energy Bearing Co., Ltd. for 239.3 million yuan, which will allow the company to hold 100% of the target company and mark a significant step in its vertical integration strategy within the wind power supply chain [1][4]. - The acquisition is expected to enhance Jixin Technology's manufacturing capabilities and address production capacity constraints by leveraging its existing resources [5]. Business Synergy - New Energy Bearing specializes in high-tech bearings for wind power applications, providing products to leading manufacturers, which aligns well with Jixin Technology's core business [4][5]. - The acquisition is anticipated to create synergies by sharing customer resources and offering a "one-stop" service to downstream clients [5].

Group 1: Production Capacity and Utilization - The company has a casting capacity of 150,000 tons, but can currently release 80,000 to 100,000 tons due to various factors affecting production [1] - The effective casting capacity is expected to double this year, achieving 80,000 to 100,000 tons compared to 30,000 to 40,000 tons in 2024 [2] - The production release rate for new projects is approximately 50%-60% in the first year and 70%-80% in the second year [2] Group 2: Market Trends and Demand - The global offshore wind power installed capacity is projected to grow from 8 GW in 2024 to 16 GW in 2025, representing a 100% increase [1] - The company is diversifying its product offerings in the wind power sector, including both forged and cast components [3] - The market for casting products is expected to stabilize due to a self-regulatory agreement among wind power companies to reduce price competition [3] Group 3: Financial Performance and Orders - The company’s overseas orders have remained stable compared to last year, with an increase in offshore casting orders [4] - The company has invested in a subsidiary for bearing production, with expected product output by the end of 2025 [4] - The company’s market share in the casting spindle sector is increasing due to the rapid development of offshore wind power [5]