Equity Research: Yongzhen Shares (603381.SH)

Date: October 28, 2025
Sector: Renewable Energy / Photovoltaic Components
Analyst: Institutional Research Team
Current Price: CNY 22.45
Rating: Overweight (Maintained)
Target Price: Implied Upside based on 2026/2027 Earnings Recovery

Executive Summary

Yongzhen Shares (603381.SH) reported its Third Quarter 2025 financial results on October 27, 2025. The report reveals a dichotomy between robust top-line growth driven by volume expansion and aluminum price pass-throughs, and severe bottom-line pressure resulting from intensified industry competition and collapsing processing fees. While the company achieved a year-over-year revenue increase of 58% in the first nine months of 2025, net profit attributable to shareholders plummeted by 99%, with Q3 specifically recording a net loss of CNY 49 million.

Despite the near-term earnings distress, we maintain an "Overweight" rating on Yongzhen Shares. Our conviction is underpinned by three structural pivots that are expected to drive a significant inflection in profitability starting in 2026:

1. Geographic Arbitrage via Vietnam Capacity: The rapid ramp-up of the Vietnam facility, which reached full production by late August 2025, provides a critical hedge against domestic margin compression. By targeting high-premium markets such as the United States and India, where supply is constrained, the Vietnam base commands superior processing fees and margins compared to the saturated domestic market.
2. Strategic Diversification into High-Growth Thermal Management: The completed acquisition of Zhejiang Jienowei in July 2025 marks a decisive entry into the liquid cooling thermal management sector. Leveraging Jienowei’s advanced "flat extrusion" technology, Yongzhen is positioning itself to capture value in high-growth downstream applications including New Energy Vehicles (NEVs), energy storage systems, and data centers. This creates a tangible "second growth curve" beyond traditional PV frames.
3. Vertical Integration and Scale Consolidation: The foundational work for the Baotou base (100GW frame capacity + 600k tons aluminum alloy casting) solidifies Yongzhen’s position as a low-cost leader. Furthermore, the integration of energy storage station investments aligns with the company’s "Baotou Integrated Base" strategy, aiming to stabilize long-term cash flows through asset-heavy, utility-scale operations.

We have adjusted our earnings forecasts to reflect the current harsh competitive landscape in the PV frame sector. We now project Net Profit Attributable to Shareholders of CNY 8 million, CNY 329 million, and CNY 548 million for 2025, 2026, and 2027, respectively. The dramatic recovery in 2026-2027 is predicated on the full contribution of the Vietnam premium capacity, the operational synergy from the Jienowei acquisition, and the anticipated stabilization of industry processing fees following capacity clearance.

Investors should view the current valuation trough as a transitional phase. The market has largely priced in the Q3 losses; however, it may be underestimating the speed of margin recovery driven by the geographic and product mix shifts. The stock offers an asymmetric risk-reward profile for institutional investors with a 12-24 month horizon, betting on the successful execution of its diversification and overseas expansion strategies.

Key Takeaways

1. Financial Performance: Revenue Resilience vs. Profitability Crisis

The Q3 2025 results highlight the extreme pressure facing mid-stream PV component manufacturers. While Yongzhen has successfully maintained revenue growth through volume scaling, its ability to convert sales into profit has been severely compromised by industry-wide deflation in processing fees.

1.1 Top-Line Growth Driven by Volume and Aluminum Prices

• Nine-Month Performance (Jan-Sep 2025):
  • Revenue: CNY 9.05 billion, representing a 58% Year-over-Year (YoY) increase.
  • Net Profit: CNY 0.02 billion (CNY 2 million), a 99% YoY decline.
• Third Quarter Performance (Q3 2025):
  • Revenue: CNY 3.352 billion, up 52% YoY and 8% Quarter-over-Quarter (QoQ).
  • Net Profit: -CNY 49 million, marking a transition from profit to loss both YoY and QoQ.

The revenue growth is primarily attributed to two factors:
1. Aluminum Price Pass-Through: As a processing-intensive business, Yongzhen’s revenue figures are inflated by rising raw material (aluminum) prices. This is a nominal growth driver rather than a real volume-only driver, though volume has also increased significantly.
2. Capacity Ramp-Up: The substantial increase in shipment volumes from the newly commissioned Wuhu and Vietnam bases.

1.2 Margin Compression: The Core Pain Point

The most concerning metric in the Q3 report is the deterioration of gross margins.
* Gross Margin: Declined by 3.7 percentage points (pct) QoQ to a mere 0.79% in Q3 2025.
* Root Cause: Since the beginning of 2025, the photovoltaic industry has faced acute supply-demand imbalances. The aluminum frame sector, characterized by relatively low barriers to entry compared to cell/module manufacturing, has seen fierce competition. This has led to a aggressive price war, driving down processing fees (the value-add component of the revenue) to unsustainable levels.
* Impact: With gross margins hovering below 1%, the company’s operating leverage has turned negative. Fixed costs and administrative expenses now consume the entirety of the gross profit, leading to operational losses.

Analyst Note: A gross margin of 0.79% is indicative of a "cash flow neutral" or slightly negative operational state for many manufacturers. It suggests that Yongzhen is currently prioritizing market share and capacity utilization over immediate profitability, a common survival tactic in cyclical downturns to maintain bank credit lines and customer relationships. However, this state is not sustainable long-term without a strategic pivot.

2. Operational Analysis: Capacity Expansion and Geographic Diversification

Yongzhen’s operational strategy in 2025 has been defined by aggressive capacity expansion and a deliberate shift towards overseas production to escape the domestic "red ocean" competition.

2.1 Vietnam Base: The Premium Profit Engine

The Vietnam facility has emerged as the critical differentiator in Yongzhen’s portfolio.
* Ramp-Up Status: The Vietnam base achieved full production capacity by the end of August 2025.
* Shipment Volume: In Q3 2025, total frame shipments were estimated at 110,000 tons. Of this, the Vietnam base contributed approximately 25,000 tons.
* QoQ Trend: The Vietnam shipment volume showed a significant sequential increase, indicating that the facility is rapidly becoming a core pillar of the company’s supply chain.
* Market Focus: The Vietnam base is strategically positioned to serve high-potential, high-margin markets, specifically the United States and India.
* US Market: Characterized by trade barriers (tariffs) on Chinese direct exports, creating a scarcity of compliant supply. Vietnamese origin goods often enjoy preferential trade treatment or lower tariff exposure, allowing for higher pricing power.
* India Market: A rapidly growing solar market with local content requirements that favor non-Chinese direct imports or regional hubs.
* Profitability Differential: In a global context where domestic Chinese frame processing fees have collapsed, the Vietnam base is able to command significantly higher processing fees and profit margins due to the limited actual supply of overseas-compliant frames. This "geographic arbitrage" is expected to be the primary driver of margin recovery in 2026.

2.2 Domestic Expansion: Wuhu and Baotou Bases

• Wuhu Base: Alongside Vietnam, the Wuhu base has also ramped up to full production. While serving the domestic and other international markets, it operates in a more competitive pricing environment. Its role is primarily to secure scale and market share in standard segments.
• Baotou Base (Future Growth):
  • Project Status: In April 2025, Yongzhen laid the foundation for its Baotou base.
  • Capacity Plan: The project includes an annual capacity of 100 GW of PV aluminum frames and 600,000 tons of aluminum alloy new material casting.
  • Strategic Rationale: This massive expansion serves two purposes:
    1. Cost Leadership: Integrating casting (upstream) with frame production (mid-stream) reduces logistics costs and raw material premiums, enhancing competitiveness in the domestic market.
    2. Market Consolidation: By adding 100 GW of capacity, Yongzhen is positioning itself to survive the industry shakeout. As smaller, less efficient players exit the market due to prolonged losses, Yongzhen’s scale will allow it to capture displaced market share.

2.3 Business Extension: Energy Storage Integration

• Initiative: In June 2025, the company invested in energy storage power station projects through a wholly-owned subsidiary.
• Strategy: This move supports the "Baotou Integrated Base Strategy." By moving downstream into asset ownership (power stations), Yongzhen aims to:
  1. Create an internal demand outlet for its frames and mounting structures.
  2. Generate stable, long-term electricity sales revenue, diversifying away from pure manufacturing cyclicality.
  3. Enhance the overall value proposition to utility-scale customers by offering integrated solutions.
• Timeline: The projects are expected to begin operation and contribute to profits gradually starting in 2026.

3. Strategic Pivot: Acquisition of Zhejiang Jienowei

The acquisition of Zhejiang Jienowei in July 2025 represents the most significant strategic shift in Yongzhen’s recent history, marking its entry into the thermal management sector.

3.1 Rationale for Acquisition

• Technology Access: Jienowei possesses advanced "flat extrusion" (flat pipe) technology. This is a specialized manufacturing process critical for producing high-efficiency liquid cooling plates and channels.
• Market Diversification: The PV frame market is mature and cyclical. In contrast, the thermal management market is experiencing exponential growth driven by:
  1. New Energy Vehicles (NEVs): Battery thermal management systems (BTMS) require precise liquid cooling to ensure safety and performance.
  2. Energy Storage Systems (ESS): Large-scale battery packs require sophisticated cooling to prevent thermal runaway.
  3. Data Centers/AI Computing: The surge in AI workloads has increased power density in servers, making liquid cooling a necessity over traditional air cooling.
• Second Growth Curve: By integrating Jienowei, Yongzhen is no longer just a "PV Frame Company." It is transforming into a precision aluminum extrusion platform with applications across multiple high-growth industries. This reduces reliance on the volatile solar cycle.

3.2 Synergies and Integration

• Manufacturing Synergy: Both businesses rely on aluminum extrusion. Yongzhen can leverage its massive procurement power for aluminum billets to lower Jienowei’s raw material costs.
• Customer Cross-Selling: Yongzhen’s existing relationships with major energy companies (who often have both solar and storage divisions) can facilitate the introduction of Jienowei’s thermal products.
• Capacity Expansion: The report notes that Yongzhen plans to "rapidly expand production" using Jienowei’s technology, suggesting that capital expenditure will be directed towards scaling this new business line quickly to meet surging demand in the NEV and data center sectors.

4. Financial Forecast and Valuation Adjustment

Given the deteriorating margin environment in Q3 2025, we have materially adjusted our earnings estimates for the near term, while maintaining a bullish outlook for the medium term based on the strategic initiatives outlined above.

4.1 Revised Earnings Estimates

Source: Company Reports, Guojin Securities Institute Estimates

Key Assumptions behind the Forecast:
1. 2025 (The Trough Year): We assume that Q4 2025 will remain challenging, with domestic processing fees staying low. The Vietnam base will begin to contribute positively, but not enough to fully offset domestic losses in the full-year aggregate. Hence, the full-year net profit is slashed to CNY 8 million.
2. 2026 (The Inflection Year):
* Vietnam Full Contribution: The Vietnam base will operate at full capacity for the entire year, supplying high-margin US/India markets.
* Jienowei Integration: The thermal management business will start contributing meaningful revenue and higher-margin profits.
* Industry Clearance: We anticipate that the prolonged low-margin environment in 2025 will force weaker competitors to exit, leading to a stabilization and slight recovery in domestic processing fees in 2026.
* Result: Net profit rebounds sharply to CNY 329 million.
3. 2027 (Maturity & Growth):
* Baotou Base Online: The new Baotou capacity comes online, driving volume growth.
* Thermal Management Scale: The second growth curve matures, providing a stable profit stream independent of PV cycles.
* Result: Net profit grows to CNY 548 million, with improved ROE of 12.29%.

4.2 Valuation Analysis

• Current P/E Ratio: Based on the 2025E EPS of CNY 0.035 and a share price of CNY 22.45, the forward P/E is exceptionally high (~632x). This reflects the temporary collapse in earnings rather than an overvalued stock.
• Forward P/E (2026E): Using the 2026E EPS of CNY 1.388, the forward P/E drops to ~16.2x.
• Forward P/E (2027E): Using the 2027E EPS of CNY 2.310, the forward P/E drops further to ~9.7x.

Valuation Verdict:
For institutional investors, the relevant valuation metric is the 2026-2027 Forward P/E. A P/E of 16x for a company with a diversified growth profile (PV + Thermal Management) and a leading market position is reasonable. A P/E of 9.7x for 2027 suggests significant undervaluation if the company executes its strategy successfully. The current market price effectively offers a "call option" on the successful turnaround of the Vietnam base and the Jienowei acquisition, with limited downside given the asset backing and market share.

4.3 Cash Flow and Balance Sheet Health

• Operating Cash Flow:
  • 2024 OCF was negative (CNY -3.76 billion), reflecting heavy working capital buildup during rapid expansion.
  • 2025E OCF is projected to turn positive (CNY 284 million), indicating improved working capital management despite low profits.
  • 2026E OCF sees a slight dip (CNY -102 million) likely due to inventory buildup for new business lines, before recovering strongly in 2027E (CNY 480 million).
• Capital Expenditure (CapEx):
  • CapEx remains high (CNY 732 million in 2025E, CNY 1.05 billion in 2026E/2027E), funding the Baotou base and thermal management expansion. This is a necessary investment for future growth.
• Leverage:
  • Debt-to-Equity: The net debt-to-equity ratio is projected to rise from 133% in 2024 to 150% in 2025 and 176% in 2026.
  • Interest Coverage: The EBIT interest coverage ratio drops to 1.4x in 2025, which is tight. However, it improves to 3.3x in 2026 and 4.3x in 2027 as earnings recover.
  • Risk: The high leverage in 2025-2026 is a key monitoring point. The company relies on continued bank support and potentially equity financing if cash flows deteriorate further. However, the strong revenue base provides collateral security.

Risks / Headwinds

While the investment thesis is compelling, institutional investors must carefully weigh the following risks, which could delay or derail the projected recovery.

1. International Trade and Geopolitical Risks

• US Trade Policy Volatility: The profitability of the Vietnam base is heavily dependent on its ability to export to the United States at premium prices. Any change in US trade policy—such as the imposition of tariffs on Vietnamese solar products, stricter rules of origin enforcement, or anti-circumvention investigations—could severely erode the margin advantage of the Vietnam facility.
• India’s Protectionism: India has shown increasing tendencies towards protectionist policies (e.g., ALMM lists, basic customs duties). If India restricts imports from Vietnamese entities or imposes local content requirements that Yongzhen cannot meet, the expected demand from this region may fall short.
• Global Supply Chain Fragmentation: Further decoupling of global supply chains could lead to inefficiencies and increased compliance costs for multinational manufacturers like Yongzhen.

2. Industry Competition and Pricing Pressure

• Prolonged Price War: If the supply-demand imbalance in the PV frame sector persists longer than expected into 2026, domestic processing fees may remain at breakeven or loss-making levels. This would extend the period of low profitability and strain cash flows.
• Overcapacity in Thermal Management: The liquid cooling sector is attracting significant investment. If competitors rapidly expand capacity, the high margins currently available in thermal management could compress, reducing the profitability of the Jienowei acquisition.
• Raw Material Price Volatility: While aluminum prices are passed through, extreme volatility can disrupt working capital cycles and hedging strategies. A sharp drop in aluminum prices could lead to inventory write-downs, while a sharp rise could strain customer liquidity.

3. Execution Risks in New Businesses

• Jienowei Integration Failure: Mergers and acquisitions carry inherent integration risks. Cultural clashes, management turnover, or failure to realize synergies could result in the acquired business underperforming expectations.
• Technology Obsolescence: The thermal management sector is technologically dynamic. If Jienowei’s "flat extrusion" technology is superseded by newer, more efficient cooling methods, the competitive advantage could diminish.
• Baotou Project Delays: Construction and ramp-up of the massive Baotou base face risks of delays, cost overruns, or regulatory hurdles. Any delay pushes back the timeline for cost leadership and market share consolidation.

4. Financial and Liquidity Risks

• High Leverage: With the net debt-to-equity ratio exceeding 150% in 2025-2026, the company is vulnerable to rising interest rates or tightening credit conditions. If banks reduce lending limits due to the temporary losses, Yongzhen could face a liquidity crunch.
• Accounts Receivable Risk: The days sales outstanding (DSO) is around 80 days. In a stressed industry environment, the risk of customer defaults or delayed payments increases, potentially impacting cash flow and requiring higher bad debt provisions.

5. Demand Side Uncertainties

• Global Solar Installation Slowdown: If global interest rates remain high, financing costs for solar projects may suppress installation demand, particularly in price-sensitive emerging markets.
• NEV Sales Slowdown: A slowdown in the global electric vehicle market would directly impact the demand for thermal management components, affecting the growth trajectory of the new business segment.

Rating / Sector Outlook

Sector Outlook: Photovoltaic Components & Thermal Management

Photovoltaic Frames:
The PV frame sector is currently in the late stage of a cyclical downturn. The industry is characterized by:
* Supply Glut: Significant capacity additions in 2023-2024 have outpaced demand growth.
* Margin Bottoming: Processing fees have fallen to cash-cost levels for many producers. We believe the sector is nearing a "clearing point" where inefficient capacity will be forced to shut down.
* Differentiation is Key: Future winners will not be those with the largest domestic capacity, but those with overseas capacity (to access premium markets) and vertical integration (to control costs). Yongzhen’s Vietnam strategy places it in the former category, and its Baotou strategy in the latter.

Thermal Management (Liquid Cooling):
This sector is in a high-growth phase.
* Structural Tailwinds: The electrification of transport (NEVs) and the digitalization of economy (AI/Data Centers) are secular trends that are insensitive to short-term economic cycles.
* Technology Shift: The industry is shifting from air cooling to liquid cooling due to higher heat dissipation requirements. This creates a expanding total addressable market (TAM) for precision extrusion companies.
* Consolidation Opportunity: Established players with proven technology (like Jienowei) and scale (like Yongzhen) are well-positioned to capture market share from smaller, less capitalized entrants.

Investment Rating: Overweight (Maintained)

We maintain our Overweight rating on Yongzhen Shares.

Rationale:
1. Asymmetric Risk/Reward: The stock price has likely priced in the worst-case scenario for 2025 (near-zero profits). The downside is limited by the company’s asset base and market leadership. The upside, driven by the 2026-2027 earnings recovery, is substantial (potential for >50% earnings CAGR from 2025-2027).
2. Strategic Optionality: The acquisition of Jienowei provides a valuable call option on the booming thermal management market. If successful, this re-rates the company from a cyclical PV manufacturer to a diversified industrial growth stock.
3. Geographic Moat: The Vietnam capacity provides a durable competitive advantage that is difficult for purely domestic competitors to replicate quickly due to regulatory and construction lead times.

Comparison with Peers:
Compared to pure-play domestic frame manufacturers, Yongzhen offers superior margin visibility due to its overseas mix. Compared to pure-play thermal management firms, Yongzhen offers a safer cash flow base from its established PV business. This hybrid profile is attractive in a uncertain macro environment.

Investment View

1. Core Investment Logic: The "Turnaround + Transformation" Play

Yongzhen Shares presents a classic "Turnaround and Transformation" investment case. The market is currently focused on the "Turnaround" aspect (the poor Q3 results), but is arguably under-appreciating the "Transformation" aspect (the strategic shifts that will drive future value).

Phase 1: Survival and Consolidation (2025)
* Objective: Maintain market share, manage cash flow, and complete capacity ramp-ups.
* Investor Action: Accept low/negative earnings as a transitional cost. Monitor cash burn and leverage levels closely. The key metric here is Vietnam shipment volume and processing fee stability.

Phase 2: Margin Recovery and Diversification (2026)
* Objective: Realize the premium pricing power of Vietnam assets and integrate Jienowei.
* Investor Action: Look for evidence of margin expansion in quarterly reports. The key metric here is Gross Margin recovery (targeting >5%) and Thermal Management Revenue contribution.

Phase 3: Sustainable Growth (2027 and beyond)
* Objective: Leverage scale from Baotou and maturity of thermal business.
* Investor Action: Evaluate the company as a dual-engine growth story. The key metric here is ROE stabilization above 12% and consistent free cash flow generation.

2. Catalysts for Stock Price Re-rating

1. Q4 2025 / Q1 2026 Earnings Beat: Any sign that the Vietnam base is delivering higher-than-expected margins, or that domestic losses are narrowing faster than anticipated, will serve as a immediate positive catalyst.
2. Announcement of Major Thermal Management Contracts: Public disclosure of significant supply agreements with leading NEV manufacturers or Data Center operators for Jienowei’s products would validate the second growth curve and attract growth-oriented investors.
3. Industry Capacity Clearance News: Reports of major competitors exiting the frame market or reducing capacity would signal the end of the price war, leading to a sector-wide re-rating.
4. Policy Support for Overseas Manufacturing: Any favorable trade agreements or clarifications on US/India tariff rules that benefit Vietnamese manufacturers would de-risk the Vietnam thesis.

3. Portfolio Strategy for Institutional Investors

• Accumulation Zone: The current price level (CNY 22.45) represents an attractive entry point for long-term investors. The negative sentiment surrounding the Q3 loss provides a buying opportunity before the 2026 recovery becomes consensus.
• Position Sizing: Given the elevated leverage and execution risks, a moderate position size is recommended initially. Investors may consider averaging in as confirmation of the turnaround emerges (e.g., after Q4 2025 results).
• Hedging: For risk-averse investors, pairing this long position with a short position in pure-play domestic frame manufacturers (which lack the Vietnam hedge) could be a viable pairs trade strategy.
• Monitoring Dashboard: Investors should track the following KPIs quarterly:
  • Vietnam Base Utilization Rate & Average Selling Price (ASP).
  • Consolidated Gross Margin %.
  • Jienowei Revenue and Operating Profit.
  • Net Debt/EBITDA ratio.

4. Conclusion

Yongzhen Shares is navigating a challenging industry cycle with a proactive and well-defined strategic response. The Q3 2025 losses, while stark, are a symptom of the broader industry malaise rather than a company-specific failure. In fact, Yongzhen’s ability to continue expanding revenue and launching new strategic initiatives during this downturn demonstrates management resilience and financial fortitude.

The combination of Vietnam’s premium capacity, Jienowei’s technological edge, and Baotou’s scale creates a robust platform for future growth. We believe the market is overly pessimistic about the duration of the margin trough and underestimates the potential of the thermal management diversification.

As the industry clears excess capacity and Yongzhen’s new businesses come online, we expect a significant recovery in profitability starting in 2026. The stock offers a compelling risk-reward profile for institutional investors willing to look beyond the current quarter’s headlines to the structural improvements underway. We recommend accumulating shares on weakness, with a target horizon of 12-18 months to capture the full value of the turnaround.

Appendix: Detailed Financial Analysis & Tables

A. Income Statement Analysis (Deep Dive)

The income statement reveals the structural shift in the company’s cost base and profitability drivers.

Key Observation: The Gross Profit amount in 2025 (CNY 447 million) is only slightly higher than 2024 (CNY 417 million) despite a 43% revenue increase. This confirms the severe margin compression. However, in 2026, Gross Profit jumps to CNY 850 million on 25% revenue growth, indicating a fundamental improvement in unit economics.

B. Balance Sheet Strengths and Weaknesses

Liquidity Assessment: The company maintains a healthy level of cash (CNY 1.3-1.5 billion), which provides a buffer against short-term debt obligations. However, the high level of short-term borrowings relative to equity requires careful liquidity management. The positive operating cash flow forecast for 2025 and 2027 is crucial for deleveraging.

C. Cash Flow Statement Dynamics

Interpretation:
* 2024: Massive negative OCF due to working capital buildup during rapid expansion. Financed by large financing inflows (equity/debt).
* 2025: OCF turns positive, signaling that the working capital cycle is stabilizing. This is a critical validation of operational efficiency.
* 2026: Slight negative OCF likely due to seasonal inventory buildup for new product lines.
* 2027: Strong positive OCF confirms the maturity of the business model and ability to self-fund growth.

D. Sensitivity Analysis

To provide a range of outcomes, we present a sensitivity analysis for the 2026 Net Profit based on two key variables: Vietnam Processing Fee Premium and Domestic Market Share.

Implication: Even in the Bear Case, the company returns to profitability, though the upside is capped. The Base and Bull cases offer significant upside potential, justifying the Overweight rating.

Final Remarks

Yongzhen Shares stands at a pivotal juncture. The pain of Q3 2025 is real, but it is the pain of transformation. The company is shedding its reliance on the commoditized domestic PV frame market and building a diversified, globally integrated platform. For institutional investors, the key is to look through the transient earnings noise and focus on the structural improvements in capacity quality (Vietnam), product mix (Thermal Management), and cost structure (Baotou).

We reiterate our Overweight rating and encourage investors to use any near-term volatility as an opportunity to build positions ahead of the anticipated 2026 earnings recovery.

Disclaimer:
This report is prepared by Guojin Securities for institutional clients only. It is based on information believed to be reliable, but no representation or warranty, express or implied, is made regarding its accuracy or completeness. The opinions expressed herein are subject to change without notice. This report does not constitute an offer to sell or a solicitation of an offer to buy any securities. Past performance is not indicative of future results. Investors should consult their own financial advisors before making any investment decisions.

Analyst Contact:
* Yao Yao (S1130512080001) - yaoy@gjzq.com.cn
* Zhang Jiawen (S1130523090006) - zhangjiawen@gjzq.com.cn

Guojin Securities Research Institute
Shanghai | Beijing | Shenzhen