Research Brief | Yinchuan Weili Transmission hosted Huatai Securities and one other institution. Detailed explanation of the advantages of the speed reducer and progress on the 600 million yuan refinancing.

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Yinchuan Weili Transmission Technology Co., Ltd. (hereinafter referred to as the “Company”) received institutional research by way of an online meeting on March 30, 2026. Huatai Securities participated in this research. Mr. Zhou Jianlin, the Company’s Vice President and Board Secretary, provided detailed answers to investors’ questions regarding the Company’s overview, product advantages, industry barriers, quality control, and refinancing, among other topics.

Basic Information of Investor Relations Activity

Company Overview and Core Business Introduction

First, Mr. Zhou Jianlin briefly introduced the Company’s development history and recent operating conditions to the research institutions. As a company in the transmission technology sector, the Company’s core products include speed increasers, etc., which are widely used in wind power and other fields.

Investor Focus Questions and Responses

Speed increaser product advantages: technology and processes forge competitiveness across multiple dimensions

In response to the question “What advantages do speed increaser products have?”, Mr. Zhou Jianlin stated that the Company’s speed increasers are multi-stage transmissions assembled from various components such as planetary gear mechanisms and parallel gear mechanisms. They offer advantages including smooth meshing, low noise, good sealing performance, high efficiency, lightweight design, and low cost. These advantages stem from the Company’s leading technology and processes: gears use high-quality alloy steel materials, and the Company improves wear resistance and fatigue life through heat treatment processes such as carburizing and quenching, induction hardening, and nitriding; it uses advanced processes such as CNC gear grinding and hard tooth surface machining, with external gear precision reaching grade 5 and internal gear precision reaching grade 7, ensuring low-noise, high-efficiency power transmission; castings use low-temperature impact-resistant materials, and key parts are subjected to UT flaw detection and MT flaw detection executed at grade 1, with machining precision reaching grade 5.

Industry barriers for wind power speed increasers: funding, customer certification, and talent are the main hurdles

Regarding industry barriers, Mr. Zhou Jianlin pointed out that the wind power speed increaser industry has multiple hurdles: first, a funding barrier—there are significant requirements for purchasing equipment and research and development investment; second, customer and certification barriers—generator-set manufacturers have strict supplier entry requirements, and the verification cycle lasts 2 to 3 years. Products must pass rigorous certification to enter the market, making it difficult for new companies to break through quickly; third, brand and talent barriers—customers place importance on brand reputation, new brands are hard to gain trust, and the industry requires multi-disciplinary compound talents, making it difficult for new companies to quickly build teams.

Quality control: full-cycle management and system certifications ensure product reliability

Regarding product quality control, Mr. Zhou Jianlin introduced that the Company established a quality assurance center and built a comprehensive quality management system to control the entire product manufacturing lifecycle, including quality control of raw materials and production processes. By integrating the PLM system with the APQP4Wind tool, the Company achieves BOM management, change management, technical document management, and project progress management in a project-management manner, addressing issues related to R&D quality control. The Company pursues excellence through ISO9001 and IATF16949 international quality management system certifications, focusing on product structural design, selection of raw materials, and optimization of manufacturing processes.

Refinancing progress: $600 million raised funds to advance smart factory construction (Phase I); pending regulatory review

On refinancing, Mr. Zhou Jianlin stated that this refinancing adopts the method of issuing A-share stock to specific targets. The total fundraising amount will not exceed RMB 600 million (including this figure). After deducting issuance expenses, the funds will be used for the wind power speed increaser smart factory (Phase I) and supplementing working capital. Related work is being advanced according to the schedule. On September 15, 2025, the Company’s 2025 Fourth Extraordinary General Meeting of Shareholders had already considered and approved the relevant proposals, laying the foundation for subsequent filings. This matter still needs to be approved by the Shenzhen Stock Exchange and, after obtaining approval from the China Securities Regulatory Commission for registration, it will be implemented. The Company will fulfill its information disclosure obligations in a timely manner in accordance with regulations.

Share repurchase: the 1.1304 million-share repurchase plan has been completed

In addition, Mr. Zhou Jianlin mentioned that the Company had previously considered and approved a share repurchase plan, intending to use its own funds and/or raised funds to repurchase shares for equity incentives or an employee shareholding plan. As of March 14, 2026, the Company had cumulatively repurchased 1.1304 million shares through centralized bidding transactions, accounting for 1.5617% of the Company’s current total share capital. The share repurchase plan for this round has been completed.

Statement on the Reception Situation

During the reception process, the Company conducted in-depth exchanges and communication with investors, strictly complying with regulations such as the 《Information Disclosure Affairs Management System》, ensuring that information disclosure is true, accurate, complete, timely, and fair. There was no occurrence of leaking any material information that had not been disclosed to the public.

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Responsible editor: Xiao Lang Express