A Mid-Year Review of Zhongli Group, 2025

The pursuer of light holds infinite possibilities!
Zhongli firmly believes that this beam of light is a dream, a hope, and perhaps even a kind of faith.
Upholding integrity, dedication, unity, and innovation.
The people of Zhongli, filled with aspirations for the future, bravely set out on their journey.
Chasing the light all the way, walking toward it.

In the first half of 2025, following its restructuring, Zhongli Group, under the leadership of its controlling shareholder C&D Shares, is poised to make a fresh start. With a revitalized image and unwavering determination, the company is returning to the market, leveraging its solid foundations and a resolute commitment to renewal. Its various business segments are advancing steadily, while the team’s core capabilities continue to strengthen. Guided by the global trend toward sustainable development and China’s “dual carbon” strategy, the Group is fully committed to driving intelligent manufacturing transformation, upholding compliant operations, and pursuing green growth. Working hand in hand with customers and partners, it is embarking on a new journey toward high‑quality, sustainable development for Chinese manufacturing.

[Cable Section] Laying a Solid Foundation for the Market

The Group focuses on technological innovation and deep cultivation in niche markets, eschewing the pursuit of breadth in favor of excellence and specialization. By addressing specific pain points in real-world scenarios and building a multi‑dimensional product portfolio, and backed by robust technical solutions, reliable quality, and a strong reputation, it has broken through intense competition and secured several major projects:

1. Won the centralized tender for China Tower’s 2025 power cable project, valued at RMB 100 million, steadily expanding our market share among telecom operators and reaffirming our leading position in the sector.

2. The company has won bids for multiple key railway projects in China, with signal cable contracts totaling over RMB 120 million, thereby successfully demonstrating its capability and experience in participating in major national infrastructure construction.

3. We were shortlisted for a leading industry player’s third-party DC and liquid-cooled charging gun cable project, with total order value exceeding RMB 60 million, and earned high praise and unanimous acclaim from the customer thanks to our outstanding product quality.

4. The company secured contracts in four major regions—East China, North China, Northeast China, and Central China—for the State Grid’s 2025 framework‑based tender procurement program, covering three key product categories: low‑voltage power cables, 10 kV medium‑voltage power cables, and overhead insulated conductors, with a total awarded value approaching RMB 55 million. This achievement marks substantial progress in restoring corporate credibility and rebuilding operational capabilities, while also achieving comprehensive coverage of four of the State Grid’s six core regions, underscoring the nationwide applicability and competitive edge of its products.

In the first half of the year, the Group actively participated in domestic and international trade shows, closely monitoring developments in emerging markets:

1. Traveling to Munich, Indonesia, Shanghai, Chongqing, and other locations to participate in specialized trade shows in the smart energy, energy storage, and charging sectors;

2. At the Munich International Electric Vehicle and Charging Equipment Exhibition in Germany, liquid-cooled cables have taken center stage thanks to their innovative technology and outstanding performance, while the scenario-based applications of charging‑station cables vividly demonstrate the products’ market adaptability.

Exploring and developing new business models and new‑energy markets, with high‑end applications and intelligent integration serving as dual growth engines, lays the foundation for diversified development. Meanwhile, the successful attainment of various certifications by our overseas bases marks a solid step forward in the Group’s international expansion.

[Photovoltaics] Deeply Engaged in the Global Energy Transition

Talesun Solar, a globally leading new-energy enterprise under Zhongli Group, is injecting strong momentum into the Group’s global expansion:

Building a reputation on quality and earning recognition through strength:

1. Talesun Solar has returned to BloombergNEF’s Tier 1 module manufacturer ranking.

2. It has established a comprehensive materials and product reliability testing laboratory, which has been accredited as an witnessed laboratory by international organizations such as TÜV SÜD, TÜV Rheinland, and DEKRA, and has maintained CNAS accreditation in China for nine consecutive years.

3. During the SNEC Exhibition in Shanghai, the company was awarded the “TOP PERFORMER” certification for photovoltaic module reliability by Kiwa, a globally recognized authority, becoming one of only nine companies worldwide to achieve top performance across all seven test categories.

In the first half of the year, the company participated in nearly 30 domestic and international photovoltaic exhibitions and forums, spanning key markets across Asia, North America, Europe, Africa, and the Middle East. It prominently showcased high-efficiency PV modules such as TOPCon, HJT, and BC, along with complementary energy storage systems, underscoring its technological prowess and supply-chain strengths.

Looking ahead, Talesun Solar will adopt “all‑scenario energy coverage” as its core strategy, deepen its integrated “PV + energy storage” solutions, ramp up R&D in PV‑storage convergence technologies, and advance their practical, scenario‑specific applications. As its parent company returns to a steady trajectory in the capital markets, Talesun Solar is poised for a significant leap forward in both domestic and international markets.

[Technology Section] Empowering Product Competitiveness Through Innovation

The Group is strategically positioned around a dual‑business structure centered on “cables” and “photovoltaics,” with plans for sustained growth. By actively pursuing the submission of key national and local science‑and‑technology projects, the Group continues to ramp up its R&D efforts. To date, it holds 326 valid invention patents, 655 utility‑model patents, and 8 design patents. Guided by a dual‑pronged approach—focusing on market dynamics and the needs of key customers while closely monitoring industry trends—the Group advances in a coordinated and synergistic manner.

Cable Industry: Focusing on Customer Needs, Achieving Technological Breakthroughs

1. Developed five new products, including gas-tight cables for marine applications and railway signaling cables for subway systems;

2. Applied for national 5G factory projects and Suzhou municipal core‑technology R&D initiatives, secured approval for 16 science‑and‑technology programs—including high‑end industrial talent and innovation consortia—and obtained over RMB 2 million in government funding.

3. Led the development and release of two group standards: Radiation‑crosslinked polyolefin cable compounds for long‑life civil‑building applications (enhancing safety and service life), and 10 kV–35 kV high‑temperature, low‑dielectric‑loss grafted polypropylene insulated power cables (filling a gap in the industry).

4. Certified under the intellectual property management system and awarded the Third Prize of the Liaoning Province Science and Technology Progress Award;

5. By leveraging policies such as the additional deduction for R&D expenses and tax credits for advanced manufacturing, we aim to reduce tax burdens and costs, deepen industry–university–research collaboration, and inject financial momentum into innovation.

Photovoltaics: A Triad of Patents, Standards, and Brands

1. Leveraging technological innovation and intellectual property strengths, we will strengthen research and development in key cutting-edge technologies to achieve high-quality growth.

2. The company has consistently prioritized technological innovation and R&D investment, along with robust intellectual property protection measures. In the first half of the year, it successfully passed the expert review for Suzhou’s High‑Value Patent Cultivation Project, underscoring a further enhancement of its overall capabilities in intellectual property management, technological innovation, and the commercialization of research outcomes.

[Humanities] Harnessing Cultural Cohesion to Drive Development Momentum

The Group has consistently regarded cultural development and management enhancement as the “anchor” for strategic execution, rallying the entire workforce into a powerful, unified force aligned in purpose and direction.

1. Emphasizing institutional innovation: We have newly formulated the “Human Resources Management Regulations” and the “Reward and Punishment Management Regulations,” revised the Employee Handbook, and continuously refined various management systems. By exploring ways to enhance managerial effectiveness, we are translating our corporate culture of scientific management and compliant development into concrete actions, thereby fostering the sound growth of both the company and its employees.

2. Strengthening Talent Development: We place great emphasis on cultivating a workforce of high moral character and professional excellence. To this end, we have organized a series of training programs in quality management, risk control, and other areas; continuously advanced the development of multi-skilled employees; conducted employee skills assessments; and implemented talent title evaluations. In addition, we have hosted a series of seminars on corporate culture, integrity, and compliance, actively promoting our core cultural values and reinforcing employees’ awareness of ethical conduct in their work.

3. Building Cultural Platforms: Upholding Party leadership, fully leveraging the trade union’s functions, and proactively expanding approaches to corporate culture development. The Group and its subsidiaries organize a variety of traditional cultural events and employee‑led sports and cultural activities to enrich employees’ spiritual lives; they utilize the enterprise WeChat account as an online platform, establishing channels such as the “Zhongli Community” and bulletin boards to enhance external communication through official WeChat accounts and the company website; meanwhile, workshop bulletin boards serve as offline venues for conveying Party‑building principles, sharing company news, and passing down corporate culture.

[Digitalization Chapter] Intelligent Upgrades Drive Operations

To comprehensively advance digital transformation, the company has actively implemented a series of strategic upgrade initiatives:

1. A major upgrade has been implemented in the Group’s IT management architecture: the Digitalization Center has been officially established, comprehensively integrating internal and external resources and digitalization needs, thereby significantly enhancing management efficiency and economies of scale, and driving the digital transformation to greater depth. In terms of security architecture, a new bastion host has been deployed to build a robust defense perimeter, and SD-WAN technology has been leveraged to enable efficient cross‑regional networking, further strengthening network connectivity and data exchange between the Group and its regional branches.

2. We have successfully deployed and integrated the Group’s five core, unified systems—namely the OA platform, the EHR system, the instant messaging platform, the treasury management system, and the travel‑management platform—laying the groundwork for an end-to-end digital collaboration ecosystem. This not only enables seamless data sharing and business integration but also drives resource consolidation and process reengineering, providing a solid foundation for the company to transition from traditional operations toward intelligent, platform‑based, and ecosystem‑oriented practices. Moving forward, the Company will continue to deepen system integration and enhance functionality, further strengthening its core competitiveness and supporting the Group’s leapfrog development in the digital era.

Looking ahead, Zhongli Group will remain committed to its core “cables + photovoltaics” business model while actively exploring the frontiers of technological innovation and industrial upgrading.

Strengthen global R&D and integrated supply‑chain capabilities, integrate into the dual circulation strategy, and expand into high‑value overseas markets; advance digital and intelligent transformation, providing foundational technological support for smart manufacturing worldwide, and strive to make the leap from a “technology follower” to an “industry enabler.” On the path of industry development, only by cultivating deep technical expertise with a long‑term mindset, shaping an industrial ecosystem with a global perspective, and illuminating the future of smart manufacturing through collaborative innovation can we succeed.