Investment Rating - The report maintains an "Accumulate-A" rating for the company [1] Core Views - The company achieved a turnaround in net profit for the first half of 2025, reporting a profit of 13.90 million yuan, compared to a loss of 19.84 million yuan in the same period last year [4] - Revenue for the first half of 2025 reached 608 million yuan, marking a year-on-year increase of 41.73% [4] - The company has a strong order backlog and continues to win key projects, indicating robust growth potential [5][6] Financial Performance - In Q2 2025, the company reported revenue of 235 million yuan, a year-on-year increase of 27.26%, with net profit rising by 60.91% to 6.08 million yuan [4] - The gross margin improved by 7.25 percentage points to 11.88%, and the net margin increased by 6.91 percentage points to 2.29% [7] - The company’s earnings per share (EPS) for 2025 is projected at 0.02 yuan, with expected net profits of 29 million yuan, reflecting a growth of 27.3% [9] Market Position and Strategy - The company is focusing on expanding its market share in high-speed train axle products and exploring international markets, particularly along the "Belt and Road" initiative [9] - The company has successfully secured a 30.64% share in the recent procurement project for railway freight car axles, indicating strong competitive positioning [5] - The company is also diversifying into defense equipment and smart firefighting sectors, which are expected to contribute to future growth [6]

Core Viewpoint - The company, Jinxi Axle, has shown significant growth in revenue and profitability, indicating a positive trend in its business operations within the rail transportation equipment manufacturing industry [1] Company Overview - Jinxi Axle's stock price as of August 20, 2025, is 5.96 yuan, down 0.20 yuan or 3.25% from the previous trading day [1] - The company specializes in manufacturing rail transportation equipment, including railway axles, railway vehicles, and side frames [1] - Jinxi Axle has an annual production capacity of over 100,000 axles and 3,000 railway freight cars, with successful mass supply in the high-speed train axle sector [1] Financial Performance - For the first half of 2025, the company reported revenue of 608 million yuan, a year-on-year increase of 41.73% [1] - The net profit attributable to shareholders reached 13.90 million yuan, marking a turnaround from a loss to profitability [1] Market Position - The company secured a 30.64% share in the procurement projects of the China National Railway Group for railway axles [1] - Jinxi Axle is actively advancing the research and application of new products, particularly in the high-speed train axle segment [1]

Core Viewpoint - The company Jinxi Axle achieved significant revenue growth and profitability in the first half of 2025, driven by favorable policies and its competitive position in the railway equipment manufacturing industry [1][5]. Financial Performance - Jinxi Axle reported operating revenue of 608 million yuan, a year-on-year increase of 41.73% [2][5]. - The total profit reached 14.04 million yuan, and the net profit attributable to shareholders was 13.90 million yuan, both showing a turnaround from losses in the previous year [1][2]. - The company's net profit after deducting non-recurring items was -808,008 yuan, although this was an improvement from -50.85 million yuan in the same period last year [2][8]. Industry Context - Jinxi Axle operates in the "C37 Railway, Shipbuilding, Aerospace, and Other Transportation Equipment Manufacturing" sector, which has received strong policy support under China's "Transportation Power" strategy [5]. - The company maintains a leading position in the production of railway axles and related components, with a high market share in both national freight and urban rail transit sectors [5]. Strategic Initiatives - The company has implemented a "Quality Improvement and Efficiency Enhancement" action plan, focusing on high-quality development and market expansion [5]. - Jinxi Axle aims to diversify its operations and adjust its industrial structure to mitigate risks associated with high business concentration and enhance its competitive advantages through technology upgrades and efficiency improvements [7]. Challenges and Responses - The company faces increased competition and risks related to high safety and reliability requirements in the railway equipment sector [7]. - Jinxi Axle plans to enhance its safety management systems and quality control measures to address potential production and quality risks [7]. - The company is also focused on cost control by optimizing supply chain management and improving operational efficiency [7].

Meeting Information - The second extraordinary general meeting of shareholders for 2025 will be held on August 19, 2025, at 14:30 [1] - The meeting will take place at Jinxi Hotel, No. 5, Heping North Road, Taiyuan, Shanxi Province [1] - Shareholders can vote through the Shanghai Stock Exchange's online voting system from 9:15 to 15:00 on the day of the meeting [1][2] Voting Procedures - The voting will combine on-site and online methods, with specific time slots for trading system voting and internet voting [2] - Shareholders holding multiple accounts can aggregate their voting rights across all accounts [3][4] - The first voting result will be considered valid if the same voting right is exercised multiple times [4] Shareholder Participation - Only shareholders registered by the close of trading on August 12, 2025, are eligible to attend the meeting [7] - Shareholders can appoint a proxy to attend and vote on their behalf, and the proxy does not need to be a shareholder [6][7] Registration Details - Registration for the meeting will occur on August 13, 2025, and requires specific identification and documentation [7] - The registration can be done in person or via mail/fax for those unable to attend [7] Agenda Items - The meeting will discuss a non-cumulative voting proposal to amend the company's Articles of Association and rules for shareholder and board meetings [2]