Research Brief | JiKang Technology hosts Huayuan Securities and over 20 other institutions. Revenue growth of 14.32% in 2025. Batch delivery of new products.

March 27, Beijing Kangle Technology Co., Ltd. (hereinafter referred to as “Kangle Technology”) held an analyst meeting in the form of a video phone call via the Jinmen Caijing Network Exchange platform, receiving research visits from more than 20 institutions including Huayuan Securities, Kaiyuan Securities, Changjinhe Fund, Taiping Fund, and Bank of China Wealth Management, among others. Vice President Zhang Shaofei, Vice President and Secretary to the Board of Directors Wu Yuqiong, and Securities Affairs Representative Fang Tingting provided detailed answers regarding issues of interest to investors, including the company’s 2025 performance, changes in gross margin, R&D investment, order structure, overseas expansion, and shareholder returns.

Basic information on the investor activity

Type of investor relations activity

Analyst meeting

Time and place of the activity

• Time: March 27, 2026, 10:00-11:00, 15:00-16:00
• Location: The company communicates through the Jinmen Caijing Network Exchange platform in the form of a video phone call

Participating entities and personnel

This research was hosted respectively by Zhao Hao of Huayuan Securities and Zhu Haibin of Kaiyuan Securities. The main institutions participating online include Huayuan Securities, Kaiyuan Securities, Changjinhe Asset Management Co., Ltd., Taiping Fund Management Co., Ltd., Yuanxin Yongfeng Fund Management Co., Ltd., Bank of China Wealth Management Co., Ltd., China International Capital Corporation Limited, Minsheng Securities Co., Ltd., and China Galaxy Securities Co., Ltd., among others (over 20 institutions; the list is not ranked by order of appearance).

On-site company representatives

Mr. Zhang Shaofei, Vice President; Ms. Wu Yuqiong, Vice President and Secretary to the Board of Directors; Ms. Fang Tingting, Securities Affairs Representative

Key points of the research and interpretation

Steady growth in 2025 performance; new record high for newly signed contract value

Kangle Technology achieved notable results in market expansion in 2025, with newly signed contract amounts reaching a historical high. By industry, in the energy sector, the company won nearly 20 new supply contracts for pumped storage power stations and actively advanced southwestern hydropower projects; in the water conservancy sector, it won major projects such as the Xiong’an regulating and storage basins for the South-to-North Water Diversion and the Yellow River Guxian water conservancy hub; in the transportation sector, the newly signed contract amounts grew, with deep participation in major transportation infrastructure monitoring projects.

Financial data shows that in 2025, the company achieved operating revenue of RMB 408 million, up 14.32% year over year; net profit attributable to shareholders of the listed company was RMB 82.6117 million, up 7.26% year over year; net profit attributable to shareholders after deducting non-recurring profit and loss was RMB 81.1837 million, up 11.35% year over year; basic earnings per share were RMB 0.50, and its profitability has continued to be strengthened.

Gross margin affected by business mix; in 2026, focus on cost reduction and efficiency improvement

Regarding the change in gross margin in 2025, the company stated that operating revenue mainly comes from sales revenue of intelligent monitoring terminal products and revenue from safety monitoring IoT solutions and services. Among them, safety monitoring IoT solutions and services revenue grew by 31.59% year over year, but due to factors such as the industries in which the projects are located, the proportion of monitoring equipment in the contracts, implementation difficulty, and bidding prices, the gross margin of this business is slightly lower than that of intelligent monitoring terminal product sales.

Looking ahead to 2026, the company will improve operating and management efficiency by optimizing the cost control system, standardization system, and process management, further enhancing its profitability level and capabilities.

R&D investment continues to ramp up; domestic substitution and commercialization of new products go hand in hand

In 2025, Kangle Technology continued to increase R&D investment. Full-year R&D expenses reached RMB 35.09 million, up 14.09% year over year, accounting for 8.60% of operating revenue. In terms of domestic product substitution, the company has achieved comprehensive localization of its comprehensive data acquisition instruments and the G cloud platform, and has launched a fully localized end-to-end solution for safety monitoring IoT. In addition, a series of products such as vibrating wire concrete stress meters, convergence meters, spot-welded strain gauges, and high-temperature high-pressure sensors have also achieved domestic substitution.

In terms of commercialization of new products, multiple products including vibration measurement instruments, machine vision, and underwater-type MCUs have achieved batch deliveries. The company also achieved large-scale delivery of new fiber Bragg grating sensors, meeting phased commercialization goals and rapidly increasing the signed contract amounts for new products. The company expects that the aforementioned new products in 2026 will still maintain a relatively strong growth trend (Note: the related growth forecasts do not constitute performance commitments; see the periodic reports for details).

For the “Fifteen-five” plan projects, order share is clearly significant; overseas market expansion is gradually underway

Regarding the share of orders in hand related to projects under the outline of the “Fifteen-five” plan, the company disclosed that the participating projects—including the South-to-North Water Diversion Xiao West Line construction project, conventional hydropower projects in the upper reaches of the Lancang River and Yalong River, the Yellow River Guxian water conservancy hub project, coastal nuclear power plants, and others—are all projects within the “Fifteen-five” plan. The “Fifteen-five” plan proposes to “promote the digital intelligence upgrade of infrastructure such as transportation, energy, and water conservancy,” which is highly aligned with the company’s product application scenarios, and is expected to bring new development opportunities (Note: project progress will be subject to actual construction, and does not constitute a performance commitment).

For overseas business, the company currently mainly cooperates with domestic central enterprises in infrastructure construction and research institutes and provides product support for overseas projects. Its independently developed boreline coordinate instruments have already been exported. In the future, the company will leverage its advantages in intelligent sensing technology, focus on market demand in “the countries along the Belt and Road Initiative,” and increase the proportion of overseas market performance. (Note: there is uncertainty in opening overseas projects and this does not constitute a performance commitment.)

Clear plan for external development and shareholder returns

In terms of capital operations, in 2026 the company will adhere to a dual-wheel-driven strategy of “internal growth + external expansion,” focusing on high-quality opportunities that are synergistic with core businesses, technologically complementary, and capable of empowering ecosystems; it will improve its industrial ecosystem layout and strive to build an intelligent sensing technology industrial platform with international influence (Note: the implementation of these plans has uncertainty; please refer to official announcements for details).

Regarding shareholder returns, the company attaches great importance to investor returns. In 2025, it cumulatively distributed cash dividends of RMB 59.0574 million (including profit distribution for FY2024 and the first half of 2025), and capitalized by issuing 27.4686 million shares. The proposed equity distribution plan for 2025 intends to distribute to all shareholders cash dividends of RMB 1.50 per 10 shares (tax included); at the same time, it will capitalize 2 additional shares per 10 shares from capital reserve, and this proposal still needs to be submitted to and approved by the general meeting of shareholders. The company will, in light of its profitability level, cash flow situation, and funding needs for medium- and long-term development, formulate a scientific and sustainable dividend distribution plan.

Risk disclosure: The company’s related business plans, performance forecasts, and so on do not constitute performance commitments. For the specific operating situation, please refer to the announcements and periodic reports to be disclosed thereafter.

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