Hezong Science & Technology(SZ:300477)2022-12-06 08:38Group 1: Company Overview and Market Opportunities - Beijing Hezhong Technology Co., Ltd. is actively engaging with investors to discuss its business prospects and market positioning [1][3]. - The State Grid's investment in rural power grid transformation is projected to exceed 700 billion CNY over the next five years, presenting significant industry opportunities [3][4]. Group 2: Order Growth and Market Expansion - The company has seen a year-on-year increase in orders, attributed to expanding market presence beyond traditional regions like Jiangsu and Shandong to include Northwest and Northeast provinces [4]. - Increased investment from the State Grid each year is a key driver for the company's growing order volume [4]. Group 3: Mergers and Acquisitions Strategy - Currently, the company is seeking suitable acquisition targets that complement its resources and enhance business synergy, rather than merely boosting stock prices [4]. Group 4: Employee Stock Ownership Plan - The company has submitted feedback materials to the China Securities Regulatory Commission regarding its non-public stock issuance application and is awaiting review [5]. Group 5: Financial Performance Insights - Despite high revenue growth, profit margins have not increased significantly due to product mix and gross margin issues, particularly in the transformer segment [5]. - The company anticipates improvement in transformer gross margins in 2016 due to a higher proportion of orders for amorphous alloy transformers [5]. Group 6: Research and Development Focus - The company is enhancing product intelligence and developing environmentally friendly energy-saving solutions, such as a project to replace SF6 with dry clean air in ring main units [5].