Guangxin Technology (920037) Holds 2025 Performance Briefing Conference Disclosing Capacity Construction and Overseas Business Progress

Hunan Guangxin Technology Co., Ltd. held the 2025 Annual Performance Briefing at Jinmen Finance on April 3, 2026, where the company exchanged views on issues such as the company’s shipment volume, capacity ramp-up, progress of fundraising projects, and overseas business.

Regarding shipment volume and capacity, in 2025 the company’s total shipment volume of insulating boards and insulating molded parts exceeded 50,000 tons. Among them, the revenue contribution of insulating boards was about 58%, and the revenue contribution of insulating molded parts was about 42% (since 2022, the revenue contribution of molded parts has increased year by year). As of the end of 2025, the company’s annual production capacity for insulating boards exceeded 60,000 tons; the production capacity for insulating molded parts is flexibly adjusted according to customer orders.

For the Ningsha Phase II project, since the project began production in the third quarter of 2025, the progress of capacity ramp-up has been smooth. As of early 2026, the capacity utilization rate of the two production lines has exceeded 90%, basically approaching full production. In 2026, the Ningsha Phase II capacity will be fully released, providing strong support for the company’s performance growth. The company notes that the progress of capacity release is affected by factors such as changes in market demand, the stability of raw material supply, and production and operations, so there is some uncertainty, which does not constitute a commitment to the company’s future performance.

Regarding fundraising projects, the construction project for the ultra/extra-high voltage electrical insulation new materials industrial park was launched for planning and construction in January 2026, and is currently being actively advanced. The project plans to build two ultra/extra-high voltage insulating board production lines, with a designed annual capacity of 15,000 tons. The project is expected to have a construction period of 24 months, and the company will actively push forward to achieve early commissioning.

In terms of gross margin, in the fourth quarter of 2025 the gross margin decreased slightly quarter-on-quarter. The main reasons include production line ramp-up factors (the Ningsha Phase II production line is in the initial stage of commissioning; equipment commissioning and product stability are still in the process of optimization, and have not yet fully reached the optimal quality standards) and depreciation expense factors (new capacity commissioning leads to an increase in fixed-asset depreciation expenses).

Regarding overseas business, in 2025 the company’s overseas business revenue was 600.4 thousand yuan, and the scale still remains extremely small, with limited impact on the company’s overall performance. In 2025, the company’s overseas business gross margin was 45.17%, which is 6.18 percentage points higher than that of the domestic business. Overseas investment to build factories is an important part of the company’s long-term strategic plan. In the short term, the company will focus on foundational work such as building overseas channels, brand promotion, and customer development.

As for Siemens verification progress, the three Siemens domestic manufacturers (Guangzhou, Wuhan, and Jinan) have completed on-site audits of the company and have issued sample orders to the company. The samples will be used for verification and testing of Siemens transformer products. The company notes that sample verification and the acquisition of subsequent orders involve uncertainty; specific progress will be subject to the company’s subsequent announcements.

Tongbi Finance learned that the company is a leading domestic supplier of fiber insulation materials, mainly engaged in the R&D, production, and sales of insulation fiber materials and insulating molded parts used for high-voltage, ultra-high-voltage, and extra-high-voltage power transmission transformers for AC( to DC) transmission, as well as insulation fiber materials and insulating molded parts products for traction transformer equipment used in rail transit.

The company’s products are mainly applied in power transmission and transformation systems, electrified railways and rail transit traction transformer systems, the new energy industry, and military equipment, among other areas. After nearly 20 years of deep industry cultivation, the company’s products have covered supporting products for power transmission and transformation equipment across all voltage levels, including medium-, low-, high-, ultra-high-, and extra-high-voltage AC and DC power transmission and transformation systems, becoming one of the leading enterprises in China in the field of insulation fiber materials and their molded products.