Zhongmi Holdings: Biyun Capital, Zhang Weiqi, and several other institutions conducted a research visit to our company on February 13.

Securities Star News, February 14, 2026: Zhongmi Holdings (300470) announced that Biyun Capital’s Yu Fangqing, Chen Zhe, Zhang Wei Qi, Huatai Securities’ Ni Zhengyang, Zhongtai Securities’ Kou Hongji, Wang Fengdi, Chuanfa Securities Fund’s Xiao Baichen, Southern Fund’s Zhao Junhua, and China Merchants Securities’ Guo Qianqian and Chen Zhixin, Fang Jiamin conducted research on our company on February 13, 2026.

The specific content is as follows:

Q: What is the market potential for the company’s business domestically and internationally?

A: In the company’s business layout, the petrochemical sector is currently the main application area for our products. Currently, the domestic mid-to-high-end mechanical seal replacement market size is approximately 6 to 7 billion RMB, with about 25% of the existing business in petrochemical-related fields. We currently hold a market share of just over 20% in the domestic petrochemical replacement market. In recent years, for large projects in the incremental market of the domestic petrochemical sector, our market share can reach 60% to 70%. As existing incremental business gradually converts into stock, there is still potential to increase our share in the petrochemical stock market in the future.

Globally, the stock market size of the broad mechanical seal field is approximately 40 billion RMB. The company’s overseas business mainly focuses on countries along the “Belt and Road” initiative, which accounts for about one-third of the global mechanical seal stock market. Usually, market assessments are based on the stock market, but the company’s incremental business along the “Belt and Road” countries is primarily driven by new projects, and the scale of incremental markets is closely related to each country’s fixed asset investment plans. Accurate prediction of new projects is challenging. Therefore, the company’s current international strategy is to closely monitor global market dynamics, ensure steady progress of existing known projects, actively track potential new projects, seize project initiation opportunities in a timely manner, and deploy follow-up measures quickly. At the same time, the company is also vigorously expanding its international stock business, with successful cases already achieved. We hope that in the future, the company can develop both incremental and stock markets internationally.

2. What is the company’s dividend policy?

The company has always placed great importance on rewarding investors. When formulating dividend plans, we consider industry characteristics, the company’s current development stage, profitability, and whether there are major investment expenditures. As long as the company operates steadily, maintains sufficient cash flow to support sustainable development and long-term planning, we will strive to keep the dividend policy consistent and stable, genuinely rewarding shareholders, and sharing the company’s growth achievements with investors.

3. Is there any loss of stock business?

Since the value of mechanical seal products accounts for a relatively low proportion of the total project investment, and seals play a crucial role in the safe operation of equipment, customer stickiness is high. As long as the seal products operate stably and without major issues, customers generally do not change their seal suppliers for running equipment. Business exits due to customer bankruptcy or shutdown of equipment are one form of stock business loss. Because our seals are mid-to-high-end products, customers are generally profitable enterprises, and losses due to customer bankruptcy or shutdown are relatively rare. Historically, only a small number of small clients’ bankruptcy reorganizations have resulted in minor bad debt losses.

4. What is the proportion of incremental business in current orders?

Currently, incremental business accounts for about 11% of the orders on hand.

Zhongmi Holdings (300470) main business: Design, R&D, manufacturing, and sales of various mechanical seals and their auxiliary (control) systems, providing comprehensive services including technical consulting, training, on-site installation, and maintenance.

According to Zhongmi Holdings’ Q3 2025 report, in the first three quarters, the company’s main business revenue was 1.283 billion RMB, up 12.3% year-over-year; net profit attributable to shareholders was 278 million RMB, up 2.71%; non-recurring net profit was 259 million RMB, up 2.43%. In Q3 2025 alone, the company’s main business revenue was 426 million RMB, up 1.66% year-over-year; net profit attributable to shareholders was 90.78 million RMB, down 6.89%; non-recurring net profit was 85.46 million RMB, down 8.01%. The debt ratio was 19.54%, investment income was 6.155 million RMB, financial expenses were -7.558 million RMB, and gross profit margin was 44.01%.

The above content is compiled from publicly available information by Securities Star, generated by AI algorithm (Network Credit Backup 310104345710301240019), and does not constitute investment advice.