Hengdao Technology: Some technologies reach internationally advanced levels; domestic market share ranks first among Chinese-funded enterprises.

Against the backdrop of rising industry penetration and accelerated domestic substitution, technological innovation has become the core engine enabling hot runner enterprises to break through. Hengdao Technology treats R&D as its spearhead, continuously increasing investment and cultivating eight core technologies, achieving breakthroughs in key areas. Empowered by intelligent manufacturing, Hengdao Technology is building a robust technological moat to fuel its long-term growth. 2.1 R&D investment surged 41.06% YoY in H1 2026; R&D personnel account for 8.62% of total staff As a national high-tech enterprise focused on technological innovation, Hengdao Technology places great emphasis on R&D and innovation, consistently ramping up R&D investment, optimizing its R&D system, and enhancing technical capabilities to deliver more comprehensive and reliable products to customers. According to its prospectus and semi-annual report, Hengdao Technology’s R&D expenditures amounted to RMB 7.78 million, RMB 10.08 million, RMB 11.07 million, and RMB 7.20 million for 2023, 2024, 2025, and H1 2026, respectively. In the first half of 2026, its R&D investment increased by 41.06% year-on-year. Efficient conversion of R&D funding relies heavily on talent support. Hengdao Technology has assembled a highly innovative R&D team with scientifically balanced educational backgrounds, professional titles, and expertise—capable of rapidly responding to diverse technical challenges. As of end-June 2026, the company employed 52 R&D personnel, representing 8.62% of its total workforce. Moreover, Hengdao Technology actively pursues industry–academia–research collaboration in the hot runner domain, maintaining close ties and joint R&D partnerships with universities such as Zhejiang University. 2.2 Full autonomy over eight core technologies in critical domains; some technologies reach internationally advanced levels Through sustained R&D investment and technological accumulation, Hengdao Technology has achieved full independent mastery across core segments—including product molding, runner layout design, and critical process manufacturing—and secured notable technological breakthroughs in key areas such as multi-color injection mold hot runners and light-guide injection mold hot runners. Currently, Hengdao Technology has developed eight core technologies: multi-color hot runner system technology; hot runner system technology for light-guide injection molds; hot runner system molding and runner layout analysis technology; hot runner system zero-dead-zone technology; precise temperature control technology for hot runner systems; hot runner drive system control technology; and others. Among these, Hengdao Technology’s “Triple-Color Tail Light Hot Runner System” was certified as a “Zhejiang Province First-of-its-Kind Equipment (2023)”; its “Hot Runner System Featuring Adjustable-Stroke Pneumatic Cylinders” was included in the “Zhejiang Province Outstanding Industrial New Products List (2025)”; and its “Precision Injection Molding Technology and Equipment for Thick-Walled Polymer Optical Products” was appraised by the China Machinery Industry Federation as “technologically challenging and highly innovative, with overall technical performance reaching internationally advanced levels.” As of the prospectus signing date (March 24, 2026), Hengdao Technology held 20 invention patents, 26 utility model patents, and 8 software copyrights. 2.3 Intelligent manufacturing as the engine driving dual improvements in production efficiency and product quality In its intelligent transformation journey, Hengdao Technology introduced a customized intelligent configuration and design system for hot runner products through collaborative R&D. Leveraging historical case data, relevant algorithms, and data analytics, this system automatically generates production BOMs, enabling more scientific and rational production planning—and thereby significantly improving both production efficiency and management standards.

Haomai Technology Deep Dive (II): Tire Molds and CNC Machine Tools Business

III. In-depth Analysis of CNC Machine Tool Business Business Positioning Haomai’s logic for entering the machine tool business differs fundamentally from that of most other machine tool manufacturers. Since its founding in 1995, the company has independently developed tire mold–specific CNC machine tools. Over more than two decades, it has cumulatively deployed over 2,600 such units internally—fully validating them on its own production lines. In 2022, Haomai officially launched its externally sold CNC machine tool product line—a move essentially equivalent to “selling proven, internally validated tools to external customers.” Customer Structure and Downstream Demand Customer Type Share Representative Industries Characteristics Internal Use ~62% Mold + Large-Component In-House Production Lines Internal capacity prioritized Conversion from Existing Customers ~20% Tire Mold & Large-Component Customers 85% repeat-purchase rate New Customer Acquisition ~18% New Energy Vehicles, Aerospace, Semiconductors, Consumer Electronics (3C) High growth potential Downstream Industry Prosperity Downstream Industry Demand Share H1 2026 Growth Rate Key Drivers New Energy Vehicles 30–33% +37.6% Integrated die-casting, battery housing machining Aerospace 20–25% +44.2% C919 mass production, military demand Mold Manufacturing 20–23% Stable Steady-to-rising demand for precision molds Semiconductors / 3C ~8% Growing Accelerated domestic substitution Energy Equipment 5–10% Stable Gas turbine & nuclear power components Humanoid Robots <2% Significant long-term potential Precision parts for joints and reducers Financial Performance and Competitive Benchmarking Year External Revenue (RMB billion) YoY Change Gross Margin Subsidiary Total Revenue 2022 1.46 — — — 2023 3.08 +111.8% — — 2024 3.99 +29.3% ~28% — 2025 9.68 +142.6% ~30–35% RMB 1.804 billion 2026 H1 3.83 −24.5% — RMB 1.028 billion True Reason Behind H1 2026 External Revenue Decline The 24.46% decline in external revenue does not reflect weakening demand—but rather substantial internal capacity absorption. With both mold and large-component businesses operating at full capacity, internal demand for machine tools surged sharply. Subsidiary total revenue remained robust at RMB 1.028 billion (annualized, exceeding 2025’s level). Peer Comparison Dimension Haomai Technology Kede Numerical Control Haitian Precision & Workholding Creativity Machinery Machine Tool Revenue RMB 0.968 billion ~RMB 0.65 billion RMB 3.368 billion RMB 5.320 billion Gross Margin 30–35% 42–44% ~23% ~20–22% Five-Axis Purity Medium (broad product portfolio) 91% Medium Low CNC System Purchased (Fanuc / Mitsubishi) In-house developed Purchased Purchased Core Strengths Internally validated + integrated process solutions Full self-reliance & control Scale advantage Scale + cost leadership Industry Prosperity Assessment The machine tool industry is clearly in an upward cycle: ・Overall industry revenue reached RMB 530.9 billion in H1 2026 (+7.6%), with profits totaling RMB 19.6 billion (+110.8%); ・New orders for metal-cutting machine tools rose 20.5%; backlog increased 19.1%; ・The five-axis machine tool market is projected to reach RMB 15.7 billion in 2026 (+22.7%), with domestic localization rate already at 59.5%; ・Japan’s new export control regulations targeting China, effective August 2026, are accelerating high-end machine tool domestic substitution.

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