Zhejiang Zhucheng Technology Co., Ltd. 2025 Annual Report Summary

Stock Code: 301280 Stock Short Name: Zhucheng Technology Announcement No.: 2026-010

I. Important Notices

The summary of this annual report is derived from the full annual report. In order to fully understand the company’s operating results, financial position, and future development plans, investors shall read the full annual report carefully at the media designated by the CSRC.

All directors have attended the board meeting for deliberating this report.

The audit opinion of Tianjian Certified Public Accountants (Special General Partnership) on the company’s financial statements for this fiscal year is: a standard unqualified opinion without reservation.

Notice of Non-standard Audit Opinion

□ Applicable √ Not applicable

The company was not profitable at the time of listing and is currently not able to achieve profitability

□ Applicable √ Not applicable

Profit distribution proposal for the profit period deliberated by the board of directors, or capital reserve-to-share conversion proposal

√ Applicable □ Not applicable

The profit distribution proposal approved by the board of directors for this report period is as follows: based on 136,780,140 as the base, distribute cash dividends of RMB 2 per 10 shares to all shareholders (including tax), issue bonus shares of 0 shares per 10 shares to all shareholders (including tax), and convert 4 shares per 10 shares to all shareholders from capital reserve.

Preferred stock profit distribution proposal for this report period approved by the board of directors

□ Applicable √ Not applicable

II. Company Profile

1. Company Overview

■

2. Overview of Main Businesses or Products for the Reporting Period

(I) Principal Business and Main Products

1. Principal Business

The company is a high-tech enterprise focusing on the research, development, production, and sales of electronic connectors, and with the capability to design, manufacture, and assemble precise molds for electronic connectors. The company’s products are mainly used in consumer appliances. At the same time, the company regards the automotive, new energy, industrial, and communications sectors as important future development directions, and is committed to providing customers with safe, efficient, and intelligent connector solutions. With highly lean, automated, and information-based manufacturing equipment as the safeguard, the company has established a digital intelligent factory to provide downstream customers with multi-specification, high-quality precision connector products.

2. Main Products

The company’s main products are electronic connectors. According to the terminal application market and customer needs, the company’s products are mainly categorized into “appliance connectors,” “automotive connectors,” “industrial connectors,” “communications connectors,” and “connectors for other fields.” Among them, appliance connectors are mainly sold to appliance OEMs such as Midea, Haier, Gree, Hisense, Xiaomi, and parts manufacturers such as Deyrun Electronic and Sanyuan Group; automotive connectors are mainly sold to automotive parts manufacturers such as Rui Pu Lan Jun, Youqu New Energy, Tianhai Electronic, and to automotive OEMs such as BYD, Tesla, Geely, Chery, Changan, SAIC, Leapmotor, Xiaomi, etc.; industrial connectors are mainly sold to robot OEMs such as UBTECH and KUKA; communications connectors are mainly sold to parts manufacturers such as Amphenol, Molex, and AVIC Optoelectronics, with major customers including domestic and international server equipment and parts manufacturers, communications system operators, and equipment manufacturers; connectors for other fields are mainly sold to energy storage/photovoltaic equipment manufacturers such as Dingke Energy and Yiyuan Holding, and to two-wheel electric vehicle manufacturers such as Ninebot Technology.

(II) Main Operating Models

1. R&D Model

The company follows the concept of “R&D interaction,” upholds a R&D model with customer needs at the core, and actively conducts joint R&D with customers. The company has participated in drafting enterprise standards for connector products of well-known companies such as Midea and Haier. It achieves the purposes of early involvement, rapid response, and precise positioning, ensuring the success rate of product development. While effectively improving the company’s overall service capability, it further enhances customer stickiness. The company has a complete and sound product R&D and mold design/manufacturing system, and possesses the capability to design, develop, and manufacture products and various precision connector molds. It can provide customized connector products tailored to different customer needs.

2. Procurement Model

The company’s supply chain center has a procurement department. It organizes procurement work according to production and operation plans. The company places monthly production plan orders through an ERP management system. The procurement department checks the status of inventory for materials, and purchases materials from suitable suppliers according to the procurement plan, ensuring the timeliness and accuracy of purchase orders and effectively reducing the company’s overall procurement costs.

3. Production Model

The company’s products are diverse in types and specifications. Different customers and different products have significant differences in performance and specification requirements for connectors, and there are strict requirements on product delivery lead times. Therefore, the company mainly arranges production based on customer order needs. The production planning department issues monthly production plans through the ERP system. After workshop production-arrangement personnel receive the “Production Plan,” they shall make reasonable production arrangements by taking into account the urgency of orders and the overall conditions of the workshop.

4. Sales Model

The company’s sales mainly adopt a direct sales model. The company’s marketing center is responsible for external sales of the company’s products. It monitors market dynamics at all times, explores potential customer groups, and conducts targeted tracking and development based on information about target customers. In addition, the company has established long-term cooperative relationships with many customers and assigns dedicated personnel to handle customer service in order to understand customer needs.

3. Industry Development Trends

1. The connector industry will enter a stage of high-quality development

In 2025, China’s connector industry will show a “polarization” pattern: the growth rate of AI data center and new energy vehicle connectors will exceed 20%, becoming the industry’s two growth engines; the domestic replacement rate of communications connectors leads (72%), entering the stock upgrade stage; consumer electronics connectors face pressure and are transforming, with high-end positioning as the core way out; industrial connectors will grow steadily, and adaptation to extreme environments will be the key differentiator.

Over the next 3–5 years, the industry will enter a high-quality development stage of “deepening technology + coordinated cooperation across the industrial chain.” Domestic substitution will shift from “accumulation of volume” to “a leap in quality.” It is expected that by 2030, the domestic market share of new energy vehicle connectors will exceed 60%, the domestic replacement rate of high-speed connectors will reach 50%, the domestic replacement rate of communications connectors will rise to 85%, and the domestic replacement rate of industrial connectors will reach 55%. For practitioners in the industry, capturing the trend of technological iteration, accurately positioning sub-segment markets, and strengthening coordination across the industrial chain are the core logic for achieving sustained growth.

2. Acceleration of domestic substitution of high-end connectors

In 2025, China’s connector industry achieved a crucial leap in localization and domestic substitution. The overall domestic substitution rate increased significantly from 34% in 2020 to 45.9%, indicating that domestic connectors have officially entered the core top-tier group competing globally. However, progress differs markedly across various sub-segments. Among them, the domestic replacement rate of 5G base-station RF connectors performed most prominently, rising from 45% in 2020 to 73% in 2025; in the high-speed connector sector, the domestic replacement rate jumped from 19% in 2020 to 36%; the domestic replacement rate of new energy vehicle high-voltage connectors is approximately 18–22%, and the market share of international giants (Amphenol, TE) exceeds 62%.

3. International giants’ M&A and integration, and improving the layout for extreme-environment business

In 2025, M&A and integration activities frequently occurred in the global connector industry. International giants, through acquisitions, improved the layout for extreme-environment and high-end scenarios. Domestic enterprises accelerated technology catch-up through M&A to close shortfalls, forming a dual-wheel-driven pattern of global layout and local coordination.

4. Increasing industry concentration

Global connector industry leaders typically cover business globally and are involved in most downstream industries, so their earnings stability is relatively strong. In contrast, China’s connector industry started later; the connectors produced mainly focus on mid- to low-end products, and the market share of high-end products is relatively low. Additionally, domestic single connector enterprises are involved in fewer downstream industries, making their ability to withstand fluctuations in a single industry weaker. With the rapid development of downstream industries, the concentration of China’s connector enterprises urgently needs to be improved. While enhancing their own risk resilience, domestic companies also need to further move into high-end product markets to improve overall competitiveness.

3. Key Accounting Data and Financial Indicators

(1) Key accounting data and financial indicators for the past three years

Does the company need to make retrospective adjustments or restate prior-year accounting data

□ Yes √ No

RMB

■

(2) Key accounting data by quarter

Unit: RMB

■

Whether the above financial indicators or their aggregated totals have any material differences from the financial indicators related to the company’s quarterly reports and semiannual report already disclosed

□ Yes √ No

4. Share Capital and Shareholders’ Information

(1) Number of ordinary shareholders and preferred shareholders with voting rights restored, and table of shareholding of the top 10 shareholders

Unit: Shares

■

Shareholding of shareholders holding more than 5%, and the top 10 shareholders, as well as the share lending participation of the top 10 shareholders and other holders of unrestricted tradable shares in the transfer and lending of shares via margin financing/short-term lending/transfer financing business

□ Applicable √ Not applicable

Changes from the previous period in the number of the top 10 shareholders and the number of other holders of unrestricted tradable shares due to reasons such as lending/returning shares through transfer and lending

□ Applicable √ Not applicable

Does the company have arrangements that create differences in voting rights

□ Applicable √ Not applicable

(2) Total number of company preferred shareholders and table of shareholding of the top 10 preferred shareholders

There are no preferred shareholders in the company’s reporting period.

(3) Disclosure of the property-right and control relationship between the company and the actual controller in the form of a box-and-line diagram

■

5. Bonds outstanding as of the date of approval of the annual report

□ Applicable √ Not applicable

III. Matters of Importance

During the reporting period, the company achieved operating revenue of RMB 1,758.8352 million, representing a year-on-year increase of 9.73%; and realized net profit attributable to shareholders of listed companies of RMB 208.9777 million, representing a year-on-year increase of 12.53%. Among them, appliance connectors achieved operating revenue of RMB 1,695.0114 million, representing a year-on-year increase of 9.42%; automotive connectors achieved operating revenue of RMB 23.0534 million, representing a year-on-year decrease of 2.56%.

The application areas of the company’s appliance connector business mainly focus on white goods, such as air conditioners, refrigerators, washing machines, and small household appliances. Through strengthening strategic cooperation relationships with existing core customers, the company actively meets core customers’ needs for product intelligence and personalization, responds to the policy call for domestic substitution, and continuously improves product quality and R&D technology levels, thereby achieving steady growth in appliance connector revenue.

The company plans to enhance its external expansion capabilities while maintaining internal driving growth. The company, based on its business development strategy and around its core business, will at appropriate timing, prudently choose to acquire, merge, or cooperate with enterprises in the same industry or related industries, so as to achieve purposes such as expanding production scale, enhancing the company’s independent R&D capability, enriching the company’s product series, expanding market share, extending the industrial chain, and lowering production costs, thereby promoting the company’s principal business to further grow and expand.

Massive information, precise interpretation—available on the Sina Finance app