Shenghong Co. Announces Performance Briefing on April 9 for Investor Participation

Shenghong Co., Ltd. held an earnings presentation on April 9, 2025, to engage with investors. The following are the key details discussed during the meeting:

The company responded to several investor queries:

<b>Question 1:</b> Can you provide an update on your V2G technology and the opportunities in the policy landscape? What is the progress on your participation in the first batch of V2G pilot projects in cities like Shanghai and Shenzhen, particularly in areas such as bi-directional charging and vehicle-to-grid communication? What is the commercialization path for the large-scale application of V2G, and how is the order conversion situation?

<b>Answer:</b> Thank you for your interest. Our company places great importance on the research and development of new power systems and application scenarios. In the V2G sector, we have built a strong foundation based on our core power electronics technology and have completed the technological and product reserves necessary for related products. Currently, V2G commercialization is still in the industry verification stage. We will continue to monitor policy directions and market demands and actively participate in the construction of industry ecosystems to promote the implementation of relevant solutions.

<b>Question 2:</b> How is your company addressing competition and profitability in the energy storage business? Given the price war pressures in the energy storage industry, how does your company leverage modular design and multi-branch energy storage inverters to enhance product premium? Are there new scenario layouts beyond commercial energy storage, such as integrated solar energy storage and virtual power plants?

<b>Answer:</b> We continuously improve our product efficiency and system reliability to effectively address industry pain points. In light of changing market conditions, our company adheres to a strategy of differentiated competition driven by technological innovation. We enhance product added value through multi-dimensional technology integration and customized scenario capabilities.

<b>Question 3:</b> What is the status of your overseas expansion in charging stations and ultra-fast charging technology? Can you share updates on your collaboration with BP, particularly regarding the certification and promotion of your 44MW ultra-fast charging pile, the Tianji series, in the European market? What measures are being taken to optimize local service capabilities (such as supply chains and certifications)?

<b>Answer:</b> We are advancing our global strategy in the charging and battery swap sectors. Our products have undergone local certifications in several regions globally, including acquiring German metrology certification in the second half of 2024, allowing us to enter the German market under our brand. We are also expanding application scenarios to increase our market share in overseas regions.

<b>Question 4:</b> Can you provide insights on financial sustainability, particularly regarding your high dividend policy? How does it impact your R&D investments and new businesses such as V2G?

<b>Answer:</b> Moving forward, we will ensure that our high dividend policy remains sustainable while considering our operational status and business development goals to continue providing long-term returns to our shareholders.

<b>Question 5:</b> Recently, over 70 investment institutions conducted research on your company. What were their main focuses, and will there be any significant adjustments to these business areas?

<b>Answer:</b> The research activities conducted have been reported as per regulations and primarily revolved around the company's operational status and industry developments for 2024. There are no major adjustments to our business.

<b>Question 6:</b> What competitive advantages does your company hold in the AIDC sector?

<b>Answer:</b> Our company has long focused on the R&D and innovation of power electronics technology, optimizing our product layout based on the needs of smart computing centers. Our industrial power supply products can be broadly applied in these centers, including active filters, static VAR compensators, and dynamic voltage regulators, among others. These products address power quality issues faced by users, thus improving their electricity usage quality and safety.

<b>Question 7:</b> How has your company’s profitability performed this term?

<b>Answer:</b> For the fiscal year 2024, our total revenue reached <b>3.036 billion yuan</b>, representing a <b>14.53%</b> increase compared to the previous year. The total profit was <b>462 million yuan</b>, a <b>1.42%</b> rise, while the net profit attributable to shareholders was <b>429 million yuan</b>, reflecting a <b>6.49%</b> growth. Detailed operational data can be found in the annual report disclosed on the Giant Tide Information Network.

<b>Question 8:</b> What growth points do you foresee for future profitability?

<b>Answer:</b> Looking ahead, we aim to strengthen our core business by leveraging our solid foundation and technology advantages in the power electronics industry. We will continue to innovate and integrate advanced technologies while expanding into high-end sectors and enhancing core competitiveness.

<b>Question 9:</b> How does your company's overall performance compare with others in the industry?

<b>Answer:</b> Our operational performance statistics for 2024 indicate a growth trajectory similar to our industry peers. For a comparative analysis, please refer to the periodic reports of other listed companies.

<b>Question 10:</b> Will the gross margin for charging stations be maintained this year?

<b>Answer:</b> Our strategy emphasizes technological innovation to enhance product competitiveness. In the charging station sector, we are committed to optimizing product efficiency and increasing the proportion of high-value-added products.

<b>Question 11:</b> What does the future of the industry look like?

<b>Answer:</b> We are closely monitoring global energy transformations and the construction of new power systems. The demand for quality power is expanding, which directly impacts production efficiency and product quality. The charging infrastructure for new energy vehicles is improving, and opportunities for growth remain significant in both domestic and international markets.

<b>Shenghong Co., Ltd.</b> focuses on applying power electronics technology in the industrial power supply and renewable energy sectors, providing efficient and safe power solutions for high-end manufacturing, data centers, and more. The latest annual report indicates a revenue increase to <b>30.36 billion yuan</b> and a net profit of <b>4.29 billion yuan</b>, reflecting ongoing growth and development within the company.