Core Viewpoint - The company has ensured the accuracy and completeness of its financial reports and related disclosures, affirming that there are no false statements or significant omissions [2][19]. Financial Data Summary - The third-quarter financial report for 2025 has not been audited, and the company has provided key financial data in RMB [3][7]. - The report indicates that there were no profits from mergers under common control during the reporting period [7]. Related Party Transactions - The company has approved expected related party transactions for 2025, which were deemed reasonable and fair by independent directors [9][22]. - The transactions are based on actual operational needs and are not expected to affect the company's independence or harm shareholder interests [16][24]. Board Meeting Details - The fifth board meeting was held on October 20, 2025, with all directors present, and the meeting procedures complied with legal requirements [18]. - The board unanimously approved the third-quarter report and the expected related party transactions, with specific directors abstaining from voting on related matters [19][23].

Investment Rating - The report maintains a "Hold" rating for the company [7] Core Views - The company achieved impressive performance in 2024, with total revenue of 1.345 billion yuan, a year-on-year increase of 40.22%, and a net profit attributable to shareholders of 311 million yuan, up 96.17% year-on-year [1] - The company has a strong order backlog, with new orders amounting to 1.528 billion yuan by the end of 2024, representing a year-on-year increase of 38.31% [3] - The company is expanding its overseas market presence, with significant growth in overseas contract revenue, particularly in the U.S. and Europe [4] Financial Performance Summary - In 2024, the company reported revenue of 1.345 billion yuan, with a gross margin of 43.62% and a net margin of 23.10% [1] - The breakdown of revenue by business segment in 2024 includes: - Substation composite insulators: 879 million yuan, up 34.71% year-on-year, with a gross margin of 46.98% - Rubber seals: 223 million yuan, up 14.10% year-on-year, with a gross margin of 46.86% - Power transmission and distribution composite insulators: 209 million yuan, up 126.57% year-on-year, with a gross margin of 25.95% [2] - The company’s revenue forecast for 2025-2027 has been adjusted to 1.87 billion, 2.62 billion, and 3.53 billion yuan, respectively [5] Order Backlog and Market Expansion - As of the end of 2024, the company had a robust order backlog, with new orders of 1.528 billion yuan, including 786 million yuan from domestic markets and 742 million yuan from overseas markets [3] - The company is making significant progress in building a factory in the U.S., expected to be operational by 2027, which will further enhance its overseas market capabilities [4]