Core Viewpoint - Zhongchao Holdings (002471.SZ) is focusing on the technological breakthroughs and industrial applications of high-temperature alloy precision castings through its subsidiary, Hangyu Precision Casting [1] Group 1: Company Developments - Hangyu Precision Casting has developed manufacturing capabilities for large, complex, thin-walled high-temperature alloy precision castings, including turbine rear casings for aircraft engines [1] - The company has entered the supplier system of core customers in the aerospace engine and gas turbine sectors, with its products and technologies successfully applied in major aerospace projects, military and commercial aircraft engines, and gas turbines [1] Group 2: Research and Collaboration - Hangyu Precision Casting is participating in a national key technology project led by Shanghai Jiao Tong University, with research outcomes aimed at critical components for aircraft engines [1] Group 3: Product Applications - The company's products are applicable in supporting gas turbine power stations related to the Yajiang Hydropower Station [1]

Group 1: Financial Performance - The company's net profit for 2024 was -21.4043 million RMB, primarily due to the stock incentive plan implemented in 2023, which required the company to allocate 66.8892 million RMB in share-based payment expenses [14][17]. - The first quarter of 2025 saw a loss attributed to insufficient revenue growth and the need for ongoing cost reduction efforts [4][30]. - The company reported a significant increase in revenue for Shanghai Precision Casting, with an 82.20% year-on-year growth in 2024 [2]. Group 2: Investment and Growth Plans - The company plans to raise up to 1.21 billion RMB through a private placement to invest in high-end components for aerospace engines and advanced high-temperature alloy precision manufacturing technology [38][40]. - Jiangsu Precision Casting intends to invest 100 million RMB from self-raised funds or loans to advance the aerospace engine and gas turbine component manufacturing project [15][38]. - The company aims to enhance its production capacity in the aerospace sector, addressing current capacity shortages [8][19]. Group 3: Market and Industry Outlook - The "14th Five-Year Plan" emphasizes energy structure transformation and new infrastructure development, leading to explosive growth in demand for new energy cables and smart grids [2]. - The aerospace industry is rapidly developing, with a surge in demand for high-temperature alloy precision castings, supported by government policies encouraging technological research and industrial development [2][8]. - The domestic wire and cable industry is experiencing steady growth, driven by policy incentives and technological upgrades, despite challenges such as overcapacity and high raw material costs [9]. Group 4: Corporate Governance and Shareholder Relations - The company is actively preparing materials for its private placement, with no current plans for stock buybacks [17][36]. - The second-largest shareholder, Xu Gangsheng, holds 4.88% of the company's shares and may increase his stake if it reaches 5% [27][33]. - The independent directors are tasked with overseeing management actions and ensuring decisions align with the interests of minority shareholders [7].