Hainan Jinpan Smart Technology Co. Ltd. A

The AI wave is creating new winners in the supply chain, particularly among manufacturers of electrical and cooling systems. McKinsey forecasts that global data center investment will reach nearly $7 trillion by 2030. Meanwhile, Nvidia indicates that AI spending is likely to remain strong for several more years. Major transformer makers such as South Korea's HD Hyundai Electric and China's Hainan Jinpan Smart Technology report significantly increased demand. HD Hyundai Electric's backlog rose 23% to $8.5 billion, while Jinpan saw new orders from data center businesses more than quadruple. Bank of America expects liquid cooling to account for 70% of installations in new AI data centers by 2030, up from about 30% today. McKinsey estimates that this technology can reduce energy consumption by over 27%. However, shares of many suppliers are starting to cool off as investors question elevated valuations amid intensifying competition. Bank of America warns that not all companies in the supply chain will be winners.

Jinpan Technology released its 2026 interim report, with net profit attributable to the parent company of 303 million yuan, up 14.23% from the same period last year. Total operating revenue was 3.556 billion yuan, up 12.73% year-on-year, marking five consecutive years of growth. Net cash flow from operating activities was negative 23.7627 million yuan, down 110.12% year-on-year. The company's latest asset-liability ratio was 58.36%, gross margin was 27.41%, and diluted earnings per share was 0.66 yuan.

Jinpan Technology released its semi-annual report for 2026, achieving operating revenue of 3.556 billion yuan, up 12.73% year on year. Net profit attributable to shareholders of the listed company was 303 million yuan, up 14.23% year on year. The company plans to distribute a cash dividend of 2.20 yuan before tax for every 10 shares to all shareholders. Second-quarter net profit was 190 million yuan, while first-quarter net profit was 112 million yuan, meaning second-quarter net profit rose 69% quarter on quarter.

Several companies on the STAR Market have disclosed their half-year results for 2026. Tuojing Technology's net profit surged 1,324% year on year to 1.343 billion yuan, while Lante Optics' net profit rose 163.21% to 272 million yuan. Tuojing Technology's operating revenue reached 2.913 billion yuan, up 49.06% year on year, driven by substantial growth in its advanced process product business, and it plans to pay a cash dividend of 3.5 yuan for every 10 shares. Lante Optics' operating revenue reached 1.012 billion yuan, up 75.5% year on year, with growth across its optical prism, lens, and wafer businesses. Pinming Technology's net profit was 1.8176 million yuan, down 94.18% year on year, while Jinpan Technology's net profit was 303 million yuan, up 14.23% year on year, and it plans to pay 2.2 yuan for every 10 shares. In addition, Alibaba CEO Wu Yongming said that investment in AI infrastructure has reached 190 billion yuan, and capital expenditure is expected to be recouped within three years.

Jinpan Technology announced that it plans to reduce the planned investment of 180 million yuan in the original fundraising project, the Digital Factory for Data Center Power Modules and Complete Series Products, and redirect the funds to a new project, the Smart Manufacturing Project for Ultra-High Voltage Power Transmission and Transformation Equipment and System Integration. The company stated that the feasibility of the original project has not changed significantly, but given the widening supply-demand gap for high-voltage power equipment in overseas markets and the rapid growth in orders for the company's ultra-high voltage power transmission and transformation equipment, the demand for related product research and development, integration, and testing has become increasingly urgent. The new project focuses on high-end overseas markets and serves global exports, aiming to build research and development, integration, and testing capabilities for a series of ultra-high voltage power transmission and transformation equipment and system integration products that meet international standards. According to the feasibility study report, the new project has a post-tax internal rate of return of 39.85 percent and a post-tax static payback period of 5.38 years, indicating strong economic benefits. As of June 30, 2026, the original project had cumulatively invested 195.1 million yuan in raised funds. After the adjustment, the original project will continue construction, with the funding gap to be covered by the company's own funds. This proposal will be submitted to the third extraordinary general meeting of shareholders in 2026 for deliberation.

From July 23 to 24, a number of Shanghai-listed companies released positive news covering share buybacks and stake increases, upbeat earnings reports, improving operations, and interim dividends. In terms of buybacks and stake increases, 10 companies announced new buyback plans over the two days, with a combined proposed buyback cap of 1.89 billion yuan; 5 companies announced new stake increase plans, with a combined proposed increase cap of 351 million yuan. On the earnings front, about 15 Shanghai-listed companies issued positive half-year earnings reports. Among them, Orient Securities reported a 30.46% year-on-year rise in first-half net profit attributable to the parent company, EZVIZ Network grew 35.44%, and SINOMED is expected to surge 263.66%. Another three companies, including Minmetals New Energy, turned losses into profits. At the operational level, Weiming Environment Protection's subsidiary waste treatment projects saw cumulative power generation rise 8.96% year-on-year in the first half. Changhua Group received a designated development notice from a domestic new energy vehicle maker, with an estimated total sales value of about 740 million yuan over the product lifecycle. Pudong Construction saw multiple subsidiaries win major projects, with a total bid value of approximately 1.5 billion yuan. Regarding interim dividends, four Shanghai-listed companies—China Southern Power Grid Energy Storage, Zheshang Securities, China Southern Power Grid Technology, and Jinpan Technology—received interim dividend proposals or released interim dividend distribution plans. Zheshang Securities stated that its interim dividend payout ratio for this year will be no lower than its 2025 interim ratio, while Jinpan Technology's dividend amount will be no less than 30% of net profit attributable to shareholders of the listed company in the first half of 2026.