Beijing CISRI-Gaona Technology Co., Ltd. (300034)

Individual Stock Analysis Report | Industry: Superalloy Materials | Report Date: September 13, 2026 | As of the close on September 11, 2026; some market-data pages have differences in data-capture timing, and this report uses RMB 16.30 as the latest closing price.

This report is automatically compiled and generated by AI based on public information, for reference only and does not constitute investment advice.

1. Core Summary

CISRI-Gaona achieved operating revenue of RMB 2.053 billion in H1 2026, up 13.04% year-over-year; net profit attributable to parent was RMB 103 million, up 61.23% year-over-year, with non-GAAP net profit attributable to parent up 63.77% year-over-year, and net cash flow from operating activities turning from -RMB 267 million in the same period last year to +RMB 319 million, showing clear signs of operational recovery. However, the overall gross margin fell to 21.39% in the same period, down 2.66 percentage points year-over-year, and the high year-over-year profit growth was partly due to the low base in the same period of 2025; earnings quality still needs continuous observation in conjunction with gross margin and cash flow.

The company is positioned in the mid-to-upstream of the superalloy "materials + key components" chain, with a relatively complete system of cast, wrought, and new-type alloy products, and is one of only a few strategic suppliers to AECC (Aero Engine Corporation of China), with an industry market share of approximately 18.19% in 2025, placing it in the first tier. In H1 2026, revenue from new-type alloy products grew 149.38% year-over-year, with its revenue share rising to 12.24%, and gross margin improving significantly year-over-year to 27.34%, becoming the main growth driver at present; however, cast alloys and wrought alloys still accounted for a combined more than 87% of revenue, with their gross margins falling 7.20 and 3.60 percentage points year-over-year, respectively.

The company's revenue grew 4.91% to RMB 3.697 billion in 2025, but net profit attributable to parent fell 64.83% year-over-year to RMB 87 million, with overall gross margin declining to 23.77%, mainly affected by the concentrated realization of annual price-reduction clauses on military products, an increased share of low-margin civilian products, high prices of raw materials such as nickel and cobalt, and price reductions during the mass-production ramp-up phase of new-type alloys. Profit recovered year-over-year in H1 2026, but as of the close on September 11, 2026, the share price was RMB 16.30, corresponding to a dynamic P/E ratio of approximately 101.5x to 102.7x, indicating that the market already has high expectations for subsequent profit recovery.

On the technical front, the share price rebounded from the stage low of RMB 14.82 on July 27, 2026 to RMB 16.30, standing above MA10, MA20, and the Bollinger middle band, but below MA5, and pulled back after spiking near RMB 16.60 to 16.85, showing a short-term state of oscillating with a slight upward bias but weakening momentum. Subsequent performance still depends on whether the volume ramp-up of new-type alloys, the gross margin recovery of traditional products, and cash flow improvement can continue to materialize.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Cast alloy products: superalloy master alloys; titanium/aluminum/magnesium alloys and steel precision castings; superalloy blades, casings, structural parts; superalloy and steel centrifugal cast pipes and static castings; main markets are aviation, aerospace, gas turbines, petrochemicals, metallurgy, building materials
• Wrought alloy products: superalloy and corrosion-resistant alloy disk and ring forgings; bars, plates, wires, strips, tubes; Stellite wear-resistant products; main markets are aviation, aerospace, naval vessels, gas turbines, petrochemicals, power
• New-type alloy products: superalloy/titanium alloy/steel powders, hot isostatic pressing alloy parts, powder superalloy forgings, oxide dispersion strengthened (ODS) series products, 3D-printed alloy parts, porous foam materials, magnetron sputtering targets, MCrAlY arc-sprayed targets, high-temperature wear-resistant welding wires, precision machining of aero-engine rotor parts, etc.

2.3 Position in the Industry Chain Upstream and Downstream and Cost-Profit Structure

CISRI-Gaona is positioned in the "mid-to-upstream materials + key components" segment of the superalloy industry chain. The company's main business covers high-end metal materials such as superalloys, aluminum-magnesium-titanium lightweight alloys, corrosion-resistant alloys, and intermetallic compounds, with products used in aviation, aerospace, naval vessels, nuclear power, gas turbines, petrochemicals, metallurgy and building materials, and other industries; its preparation processes include precision casting, die forging and ring rolling, powder metallurgy, fine manufacturing, additive manufacturing, and precision machining of disk and shaft parts. In 2024, civilian product revenue accounted for approximately 40%, and military/aerospace approximately 60%.

• Raw material costs account for approximately 60% of the company's product costs (source: 2024 Stock Issuance to Specified Parties Prospectus, 2024-12-03).
• The actual main inputs are non-ferrous metals such as nickel, chromium, and cobalt, whose prices fluctuate significantly; pricing adopts a "cost-plus" principle, but the company explicitly states it "may not be able to fully pass on cost increases to downstream customers."
• Procurement model: the Operations Center coordinates demand forecasting and order backlog, and procures centrally or in batches from qualified suppliers through bidding or inquiry, adopting a "small-volume, multiple-batch" strategy to reduce price fluctuation risk, with procurement prices determined by market conditions.
• Supplier concentration (2025 annual report): the top five suppliers together accounted for RMB 901.5 million in procurement, representing 31.83% of total annual procurement; of which related-party procurement accounted for 1.84%; the largest supplier accounted for 15.62% (approximately RMB 442.4 million).
• Industry level: Qianzhan Industry Research Institute (2026-06-01) pointed out that core raw materials such as nickel and cobalt have high external dependence and are dominated by a small number of overseas mining companies, and high-end smelting equipment (vacuum induction furnaces, single-crystal furnaces) partially relies on imports, giving the upstream overall strong bargaining power. The company is a price-taker in the upstream.
• Direct customers are aerospace and aviation OEMs/AECC subsidiaries (the company is one of only a few strategic suppliers to AECC), with more than 60% of products supplied to the aerospace and aviation sector; civilian products serve petrochemicals, metallurgy and building materials, glass, and other industries. Sales are mainly direct sales; in the initial overseas stage, approximately 50% of overseas revenue was realized through distributors, with plans to reduce this to approximately 20% within 2 years (2024 annual report).
• Customer concentration (2024 annual report): the top five customers together accounted for RMB 1.111 billion, representing 31.54% of revenue (Customer 1 10.71%, Customer 2 9.59%, Customer 3 4.33%, Customer 4 3.53%, Customer 5 3.38%).
• Customer concentration (2025 annual report): the top five customers together accounted for RMB 1.1758 billion, representing 31.80% of revenue (Customer 1 11.26%, Customer 2 8.05%, Customer 3 5.28%, Customer 4 3.75%, Customer 5 3.46%).
• ⚠️Important contradiction: The 2024 Stock Issuance to Specified Parties Prospectus (2024-12-03) stated that "the top five customers in each reporting period accounted for 62.33%, 65.53%, 56.59%, and 52.17%, respectively," nearly double the 31.54%/31.80% basis disclosed in the annual reports. Judgment: the prospectus may have used a "same group/same actual controller consolidated basis" (e.g., combining multiple AECC subsidiaries as one customer), while the annual reports list them by individual legal entity. This contradiction could not be cross-verified; the latest annual report should prevail, and this is explicitly noted here.
• Structural bargaining dynamics: aerospace and aviation OEMs have stringent requirements for material performance and stability, an admission certification cycle as long as 5-8 years, high customer stickiness, mainly rigid-demand procurement, and low price elasticity; combined with the centralized procurement advantage of leading OEMs, the industry has weak bargaining power over downstream (Qianzhan industry analysis); this corroborates the company's disclosure of the concentrated realization of annual price-reduction clauses on military products (Soochow Securities 2025-10-28: in the first three quarters of 2025, annual price-reduction clauses on military products were concentrated, and although the share of civilian products rose, gross margins were low, dragging overall gross margin down from 31.43% to 24.19%).
• 2022 annual report: accounts receivable book value RMB 689.7 million, +44.48% from the beginning of the period (roughly in line with revenue growth); accounts receivable turnover 4.8 (approximately 76 days), +15.38% year-over-year, mainly due to expanded sales scale and better collections from major customers. Net cash flow from operating activities deteriorated significantly: RMB 560.7 million in 2022 → RMB 525.7 million in 2023 → RMB 15.9 million in 2024 (-96.97% year-over-year). In 2024, credit impairment losses were -RMB 13.8 million and asset impairment losses were -RMB 54.6 million. This indicates that downstream occupation of funds and inventory/collection occupation rose significantly, and the answer to "who truly holds the bargaining power" leans toward downstream OEMs. A fragment of the 2025 annual report contains "accounts receivable 15.36% / 17.39% / -2.03%," suspected to be the proportion of total assets or year-over-year change, but the page was truncated and the basis unclear, so it could not be interpreted and no specific conclusion is cited for now.
• Customer concentration: 2024 annual report top five customers together accounted for RMB 1.111 billion, representing 31.54% of revenue (Customer 1 10.71%, Customer 2 9.59%, Customer 3 4.33%, Customer 4 3.53%, Customer 5 3.38%); 2025 annual report top five customers together accounted for RMB 1.1758 billion, representing 31.80% of revenue (Customer 1 11.26%, Customer 2 8.05%, Customer 3 5.28%, Customer 4 3.75%, Customer 5 3.46%). ⚠️Important contradiction: The 2024 Stock Issuance to Specified Parties Prospectus (2024-12-03) stated that the top five customers accounted for 62.33%, 65.53%, 56.59%, and 52.17%, respectively, nearly double the basis disclosed in the annual reports; this is judged to be a difference in statistical basis (consolidated vs. individual legal entity), could not be cross-verified, and the latest annual report should prevail. Supplier concentration: 2025 annual report top five suppliers together accounted for RMB 901.5 million in procurement, representing 31.83% of total annual procurement, of which related-party procurement accounted for 1.84%, and the largest supplier accounted for 15.62% (approximately RMB 442.4 million).

CISRI-Gaona is positioned in the mid-to-upstream materials + key components segment of the superalloy industry chain — not a resource-based upstream (nickel and cobalt must be purchased externally, accounting for 60% of costs with no pricing power), nor a downstream complete-machine brand, but a midstream high-end materials supplier relying on grade monopoly, military qualifications, and full-category processes to form high barriers; current profitability is squeezed at both ends (upstream nickel and cobalt costs, downstream annual military price reductions + mass-production price cuts), and performance elasticity depends on product mix upgrading, release of scale effects, and restoration of pricing power from the volume ramp-up of new models (powder superalloys, ODS, single crystal, etc.), rather than mere volume growth.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is the 2026 interim report (disclosed 2026-08-25, with the basis around 2026-08-24/25). 2026H1 operating revenue RMB 2.053 billion (RMB 2,053,495,665.67), net profit attributable to parent RMB 102.87 million (RMB 102,870,971.88), non-GAAP net profit attributable to parent RMB 91.5841 million, basic/diluted EPS RMB 0.1291 (+58.99% year-over-year), net cash flow from operating activities +RMB 319 million (same period last year -RMB 267 million, +219.38%), weighted average ROE 2.68% (+0.94 pct year-over-year), total assets RMB 7.891 billion, net assets attributable to parent RMB 3.862 billion, gross margin 21.39% (-2.66 pct year-over-year), net margin 7.15%. By product: cast alloy products RMB 1.224 billion (share 59.59%, gross margin 24.42%, -7.20 pct year-over-year), wrought alloy products RMB 570 million (27.78%, gross margin 11.78%, -3.60 pct year-over-year), new-type alloy products RMB 251 million (12.24%, gross margin 27.34%, +56.84% year-over-year, revenue +149.38% year-over-year); domestic share 89.75%, overseas 10.25%. Sources: Shenzhen Stock Exchange/company 2026 interim report summary (https://stock.stockstar.com/notice/SN2026082400035550.shtml; https://www.cnfin.com/announ/detail/index.html?id=840917250005&code=300034), East Money (https://finance.eastmoney.com/a/202608253852125216.html), Sina Finance (https://finance.sina.cn/2026-08-24/detail-inipmnps2841322.d.html), Huatai Securities research report (2026-08-27, http://vip.stock.finance.sina.com.cn/q/go.php/vReport_Show/kind/lastest/rptid/841141816811/index.phtml); historical annual/interim comparisons: Stockstar financial indicators (https://stock.quote.stockstar.com/finance/summary_300034.shtml), China Finance Network (https://gg.cfi.cn/300034.html), East Money F9 (https://f9.eastmoney.com/hxtc/Index?code=30003402&type=web). The 2025 annual report was tagged as "pre-decline," mainly due to tiered price reductions on some products converting to mass production.

2026H1 revenue +13.04% year-over-year, net profit attributable to parent +61.23% year-over-year, non-GAAP net profit +63.77% year-over-year, a significant improvement over 2025 (net profit attributable to parent -64.83%), and net cash flow from operating activities turned positive to +RMB 319 million from -RMB 267 million in the same period last year. Structurally, revenue from new-type alloy products +149.38% year-over-year was the main growth driver; however, gross margins of cast alloys and wrought alloys fell 7.20 pct and 3.60 pct year-over-year, respectively, dragging overall gross margin down 2.66 pct year-over-year to 21.39%. By quarter, 2026Q2 net profit attributable to parent was RMB 35.4762 million, +305.38% year-over-year, but -47.36% quarter-over-quarter. Attention should be paid to the relatively large accounts receivable balance (2026H1 accounts receivable RMB 1.957 billion, equivalent to as much as 2237.77% of the latest annual report net profit attributable to parent, Stockstar basis), which is a financial quality point requiring attention. The sharp decline in 2025 profit made the static P/E abnormally high, and any P/E valuation must be interpreted on a 2026-2028 forecast basis and cannot be directly compared with historical P/E.

3.2 Earnings Forecasts

Main sources: East Money F10 earnings forecast page (http://emweb.securities.eastmoney.com/ProfitForecast/index?type=web&code=SZ300034, update time and new share capital basis, 2026-2028 net profit attributable to parent RMB 248.6/323.2/420.2 million, EPS RMB 0.3133/0.4067/0.5267, revenue RMB 4.393/5.239/6.119 billion, all from 3 institutions; corresponding P/E approximately 52.4x/40.3x/31.0x; ROE forecasts 2026E 6.29%, 2027E 7.67%, 2028E 9.28%); individual stock forecast details: Orient Securities (Luo Nan/Feng Han, 2026-04-23, EPS RMB 0.36/0.46/0.59), CITIC Securities (Li Chao/Tang Chuanlin, 2026-04-02, EPS RMB 0.31/0.38/0.47), Guotai Haitong (Song Bo/Yang Tianhao, 2026-02-09, EPS RMB 0.19/0.22, no 2028 provided), Huatai Securities (Bao Xuebo et al., 2026-08-27, 2026-2028 net profit attributable to parent RMB 213/300/416 million, EPS approximately RMB 0.27/0.38/0.52, revised down 26.46%/14.72% from previous values), sources: Stockstar (http://resource.stockstar.com/DataCenter/PrivateData/GetGainsList_c300034_t0_p1.html), East Money F10, Huatai research report (http://vip.stock.finance.sina.com.cn/q/go.php/vReport_Show/kind/lastest/rptid/841141816811/index.phtml). Third-party aggregators (Koyfin/Zonebourse) give FY2026-2028 revenue of approximately RMB 4.575/5.466/6.283 billion and net profit RMB 249/304/375 million (https://www.zonebourse.com/cours/action/GAONA-AERO-MATERIAL-CO-LT-7795033/finances/; https://app.koyfin.com/snapshot/s/eq-kgvlg7), differing from domestic institutional bases. Forecast divergence is obvious: 2026E EPS range approximately RMB 0.19 (Guotai Haitong) to RMB 0.36 (Orient Securities), a difference of nearly double; 2026E net profit attributable to parent range approximately RMB 152 million (Guotai Haitong) to RMB 249 million (3-institution average RMB 248.6 million). Hualong Securities' 2025-04-28 forecast of "2025-2027 net profit attributable to parent RMB 288/315/351 million" is seriously inconsistent with the actual 2025 figure of only RMB 87 million, making early forecasts low in credibility; forecasts updated after the 2026 Q1/interim reports (Huatai 2026-08-27, Orient 2026-04-23) should prevail.

3.3 Valuation Levels and Institutional Ratings

Valuation basis: share price RMB 15.53 (2026-08-24 close, source https://www.stnn.cc/detail/6a8c41b84b8562665bc48128.html); another list shows RMB 15.72 (-0.38%, Sina ratings page, benchmark date possibly around August 25). Total share capital 797 million shares, free float 767 million shares, free-float market capitalization approximately RMB 12.503 billion, total market capitalization approximately RMB 12.990 billion (Stockstar https://stock.quote.stockstar.com/corp/business_300034.shtml). P/E (TTM) approximately 97.83x (East Money/China Securities Intelligent Financial News, as of August 24), while another source says approximately 124.03x (Sina Finance); after cross-verification, TTM net profit attributable to parent ≈ 2025 full year RMB 87 million − 2025H1 RMB 64 million + 2026H1 RMB 103 million ≈ RMB 126 million, corresponding to market capitalization of approximately RMB 12.38 billion, P/E ≈ 98x, consistent with East Money's 97.83x; the Sina 124x basis is suspected to use an earlier/different earnings window and is relatively less credible. P/B (LF) approximately 3.2–3.21x; P/S (TTM) approximately 3.15x (East Money basis)/3.28x (Sina basis). A Caifuhao article mentioned "P/E TTM 166.12x, PB 4.30x, PS 4.40x" (corresponding to an earlier point, such as May 2026). Valuation bases are inconsistent (P/E (TTM) has two versions of 97.83x and 124.03x), institutional forecasts diverge greatly (2026E EPS RMB 0.19–0.36, net profit attributable to parent approximately RMB 152–249 million), and target prices differ greatly from the current price (current price approximately RMB 15.5–15.7, institutional target prices ranging from RMB 18.80 to 28.05, with the latest Huatai RMB 18.80 close to the current price and the early Guotai Haitong RMB 28.05 the highest; high target prices were mostly formed when the share price was higher, showing obvious lag). Third-party consensus data is weak: Investing.com has a sample of only 1 analyst, with a 12-month average target price of RMB 23.00, a "Strong Buy" rating, upside of +48.10% (benchmark price approximately RMB 15.53), and a 52-week range of RMB 14.82–25.49 (https://cn.investing.com/equities/beijing-cisri-gaona-materials-tech-consensus-estimates); the sample is too small and may lag, with limited reference value; the Caifuhao mention of "institutional comprehensive target price RMB 24.68 (as of 2026-04-11)" is a non-authoritative basis and should be treated with caution. The sharp decline in 2025 profit (-64.83%) makes the static P/E abnormally high, and any P/E valuation must be interpreted on a 2026-2028 forecast basis. Data date dependence: prices and valuations are based around 2026-08-24/25, and if the query point is later, the closing price needs to be rechecked.

4. Recent News and Announcements

4.1 2026 Interim Report (Announcement No. 2026-027)

Disclosure date around 2026-08-24/25. Operating revenue RMB 2.053 billion, +13.04% year-over-year; net profit attributable to parent RMB 103 million (precise value RMB 102,870,971.88), +61.23% year-over-year (same period last year RMB 63,805,391.57); non-GAAP net profit attributable to parent RMB 91.5841 million, +63.77% year-over-year. Of which 2026Q2: revenue RMB 1.043 billion (yoy +18.67%, qoq +3.27%), net profit attributable to parent RMB 35.4762 million (yoy +305.38%, qoq -47.36%). Gross margin fell 2.66 percentage points year-over-year (Sina Finance basis). Sources: China Securities Journal · CS.com.cn, East Money, Securities Daily, Shenzhen Stock Exchange announcement summary, cross-verified and consistent across multiple sources. Note that the high year-over-year H1 2026 profit growth is a recovery from the low base in H1 2025 (RMB 63.8054 million).

4.2 2026 Q1 Report

Disclosed 2026-04-23. Net profit attributable to parent RMB 67.39 million, +22.42% year-over-year, basic EPS RMB 0.0846. Source: East Money company event calendar (single aggregator source, but consistent with multiple sources).

4.3 2025 Annual Report (Announcement No. 2026-008)

Disclosed 2026-03-19. Operating revenue RMB 3.697 billion, +4.91% year-over-year; net profit attributable to parent RMB 87.4473 million, -64.83% year-over-year; non-GAAP net profit attributable to parent RMB 67.929 million, -70.66% year-over-year; basic EPS RMB 0.1105. Dividend proposal: based on 796,961,563 shares, a cash dividend of RMB 0.36 per 10 shares (tax included). Sources: Sina Finance, Jiufang Zhitou (Gelonghui), Stockstar annual report summary, consistent across multiple sources. Note: 2025 was a year of significant performance decline, consistent with the third-party 2025 annual report pre-decline tag; H1 2026 has already shown year-over-year recovery.

4.4 Progress Announcement on the "Quality and Return Dual Improvement" Action Plan (Announcement No. 2026-028)

Reviewed by the board of directors on 2026-08-24, disclosed 2026-08-24/25. The 2025 annual equity distribution was completed on 2026-06-05, with a cash dividend of RMB 0.36 per 10 shares (tax included), totaling RMB 28,690,616.27; dividend record date 2026-06-04, ex-rights and ex-dividend date 2026-06-05. Sources: East Money announcements, Stockstar summary, East Money company calendar.

4.5 Explanation Regarding the Share Buyback Plan

No company share buyback plan or buyback progress announcement was found in this search. Note: this review was unable to complete a dedicated search on buybacks/increases or decreases in holdings due to limitations, so the absence of buybacks cannot be confirmed; this is only marked as not found (limitation item).

4.6 Waiver of Preemptive Right in Controlled Subsidiary Xi'an Gaona (Announcement No. 2026-029)

Board of directors 2026-08-24, disclosed 2026-08-24/25. Xi'an CISRI-Gaona Aviation Components Co., Ltd. is a controlled subsidiary of the company, with the company holding 67.97% and AECC Aero-Engine Power (AECC Power) holding 32.03% (established in June 2022 with the company contributing RMB 74.7669 million in cash and AECC Power contributing RMB 35.2331 million in assets); AECC Power plans to transfer its 32.03% equity to its wholly owned subsidiary Xi'an Hongqi Aviation Engine Co., Ltd. without consideration, as an internal restructuring within a state-owned holding enterprise, requiring no consideration and no on-exchange trading; the company waives its preemptive right, and after the transfer the company will still control 67.97%, with the minority shareholder changing from AECC Power to Xi'an Hongqi; it does not constitute a related-party transaction or a major asset restructuring, and no shareholders' meeting review is required. Sources: East Money announcements, China Finance Network.

4.7 Changes in Number of Shareholders

East Money company calendar basis: as of 2026-06-30, the number of shareholders was 47,171, a decrease of 3,294 from the previous period; as of 2026-03-31, it was 50,465, an increase of 3,360 from the previous period. Source: East Money company event calendar (single aggregator source).

4.8 Historical Background: 2024 Stock Issuance to Specified Parties (Private Placement)

In March 2025, the company completed the 2024 stock issuance to specified parties (private placement), at an issue price of RMB 12.83/share, issuing 21,823,850 shares, with total raised funds of approximately RMB 280 million (net amount approximately RMB 274 million), subscribed by China Iron & Steel Research Institute Group (controlling shareholder), with the new shares listed on 2025-03-20 and locked up for 36 months; the CSRC approval was dated 2025-01-24 (CSRC Permit [2025] No. 162). During the same period, there was a suggestive announcement on changes in equity of shareholders holding more than 5% (2025-03-17). Sources: cninfo listing announcement, Securities Daily/China Finance Network announcement list. Note: 21,823,850 restricted shares are expected to be unlocked on 2028-03-20 (East Money company calendar), i.e., the expiration of the 36-month lock-up of the aforementioned private placement shares.

4.9 Huatai United Securities Follow-up Report on 2026 Interim Period

Released 2026-09-02. Confirmed timely information disclosure, effective implementation of internal control systems, and that the special account for raised funds was closed on 2025-04-16 (queried monthly before closure); the sponsor representative changed from Wu Sihang to Shi Wei; issued 3 special opinions, with no dissenting opinions. Sources: Sina Finance announcements, Stockstar, 10jqka.

4.10 Announcement of the Resolution of the Eighth Meeting of the Seventh Board of Directors (Announcement No. 2025-080)

2025-12-22. Mainly revised a number of corporate governance systems (implementation rules of the audit committee, remuneration and assessment committee, strategy committee, insider information holder registration system, etc.). Source: East Money announcements.

4.11 Shareholders' Meeting and Extraordinary Shareholders' Meeting Resolutions

2026-05-11: resolution of the second extraordinary shareholders' meeting of 2026; 2026-04-10: 2025 annual shareholders' meeting and Huatai United 2025 annual follow-up report; 2025-11-10: resolution of the third extraordinary shareholders' meeting of 2025 — passed the proposal on "Change to Guarantee for Associate Company Qingdao CISRI New Materials Technology Development Co., Ltd. and Related-Party Transaction" (98.74% in favor). Sources: Shenzhen Stock Exchange PDF, etc.

4.12 Controlled Subsidiary Plans to Establish a Wholly Owned Subsidiary in Saudi Arabia and Build a New Industrial Base

Announcement on 2025-10-23: controlled subsidiary Qingdao Xinlitong Industrial Co., Ltd. plans to invest in Saudi Arabia to establish a wholly owned subsidiary "Xinlitong (Saudi) Technology Co., Ltd." and build a new industrial base, mainly consisting of an ethylene cracking furnace tube production line; total project investment not exceeding RMB 138 million (RMB 137.95 million), subsidiary registered capital not exceeding RMB 73 million, to be consolidated after establishment. Sources: China Securities Journal, Securities Times, Shanghai Securities News. Progress on 2026-04-08: the company stated on the interactive platform that the Saudi plant project is "progressing in an orderly manner as planned," with relevant approval procedures being processed; however, due to uncertainty in the Middle East situation and force majeure, the completion time of procedures cannot be determined for now. Source: Securities Daily Online. The project is still at the procedure stage, and the timing of implementation is uncertain.

4.13 A Series of Equity/Associate Company Disposals from August to October 2025 (Related-Party Transactions)

Transfer of 10% equity in associate subsidiary Qingdao Gaona Technology, transfer of 5% equity in associate subsidiary CISRI Dahui Private Equity Fund and waiver of preemptive right, waiver of preemptive right/capital increase preemptive subscription right in associate subsidiary Qingdao CISRI New Materials, payment of equity transfer consideration for Zhonggangyan (Hebei) Technology, etc. Source: China Finance Network full announcement list.

4.14 Institutional Research

2026 company events: 2026-05-13 received research from 2 institutions, 2026-04-13 received research from 3 institutions (East Money company calendar basis).

4.15 Share Price and Capital Flow Background

Closing price references shown in the company event calendar: 2026-08-11 closed at RMB 15.82 (-2.83%); 2026-06-30 closed at RMB 17.14; 2026-05-28 closed at RMB 19.69 (dividend announcement date); 2026-05-11 closed at RMB 21.20; 2026-04-23 closed at RMB 19.97. The share price in the first half fluctuated roughly between RMB 15.8 and 21.2 (basis: East Money company calendar, excluding non-trading-day event prices, not an official market snapshot). Single-source capital flow: a Stockstar flash headline showed "CISRI-Gaona (300034) main funds net sold RMB 7.3924 million on September 9" (URL contains 20260909, inferred to be 2026-09-09). Source: Stockstar. Single source, headline-level information, unable to cross-verify, and the specific year needs confirmation, for reference only.

4.16 Uncertainty and Limitations Statement

1. Due to search step limitations, this study was unable to complete dedicated searches on share buybacks, increases or decreases in holdings by controlling shareholders/senior management, item-by-item announcement scanning for September 2026, and consecutive net inflows/outflows of main funds; therefore "no buybacks" and "no shareholder increases or decreases in holdings" cannot be taken as conclusions, and only mean not found in the information obtained. 2. "Main funds net sold RMB 7.3924 million (September 9)" is single-source headline-level data, not cross-verified, and the date year needs further confirmation. 3. Saudi project: investment intention disclosed 2025-10, and on the 2026-04 interactive platform the company said approvals were being processed and completion time was uncertain due to the Middle East situation — the project is still at the procedure stage, and the timing of implementation is uncertain. 4. Number of shareholders, closing prices, institutional research, etc. all come from the single aggregator source East Money company event calendar, and values may deviate slightly due to basis (whether event days are excluded). 5. The high year-over-year H1 2026 profit growth (+61.23%) is a recovery from the low base in H1 2025 (RMB 63.8054 million); the full-year 2025 net profit -64.83% year-over-year is an important background, and H1 data should be interpreted in light of the low base, not alone as high growth. 6. The timing judgment is based on the announcement dates retrieved (latest 2026-09-02) and the "September 9" flash news; if the actual timing differs, the latest announcements should prevail.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

As of September 11, 2026, CISRI-Gaona's share price closed at RMB 16.30, in an oscillation stage after rebounding from the late-July low. From August 14 to September 11, the closing price rose approximately 3.5%, rebounding approximately 10.0% from the July 27 stage low of RMB 14.82, but still far from the 52-week high of RMB 25.49 formed in February 2026, and the medium-to-long-term strong trend has not yet recovered. Technically, the closing price is above MA10, MA20, and the Bollinger middle band, but below MA5; the moving averages show a weak bullish or oscillating-with-upward-bias structure. After intraday touching RMB 16.84 on September 9, the price pulled back for consecutive days, with RMB 16.60 to 16.85 forming a short-term resistance area. Regarding main funds, public pages did not provide a clear value for main fund net inflow or outflow on September 11, 2026 that could be confirmed by multiple independent sources; the 10jqka page showed main fund data of approximately RMB 27.6 million on September 4, 2026 and a recent cumulative figure of approximately RMB 55.9 million, but the field names, statistical intervals, and unit mapping were incomplete, so this is for single-source reference only.

5.3 Short-Term Outlook (Next Week, Scenario Deduction, for Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario deduction based on data as of the September 11, 2026 close, historical prices, and technical indicators. It does not constitute investment advice, nor does it represent a deterministic prediction of future prices.

① Key Technical Levels

② Next-Week Scenarios (Subjective Weights, Not Statistical Probabilities)

• Oscillating consolidation (relatively high weight, around 60%; this weight is a subjective heuristic judgment based on the current technical pattern, volume, and capital flow, not a statistical probability): price range approximately RMB 16.00~16.70. Trigger conditions are that the share price holds the RMB 16.00~16.20 support area but cannot effectively break through the RMB 16.60~16.85 resistance area; turnover remains in the recent normal range of approximately RMB 130 million~200 million, and there is no obvious sustained catalyst in the military and superalloy-related sectors.
• Weaker downside (medium weight; this judgment is a subjective heuristic weight, not a statistical probability): price range approximately RMB 15.25~16.00. Trigger conditions are that the closing price continuously breaks below RMB 16.00, with expanded turnover and down-day turnover rate clearly higher than the recent normal level of approximately 1%~2%, while the broader market or the defense and military sector continues to weaken. If the RMB 15.25~15.55 strong support area is also effectively broken, the downside can be further observed around RMB 15.00 and the 52-week low of RMB 14.82.
• Rebound strengthening (relatively low weight; this judgment is a subjective heuristic weight, not a statistical probability): price range approximately RMB 16.60~17.50. Trigger conditions are that the share price breaks through RMB 16.70~16.85 on increased volume, with single-day turnover clearly above the recent average, preferably reaching approximately RMB 220 million or more, and the defense and military or aerospace materials sector strengthens in tandem. If after the breakout it closes and holds above RMB 16.85 for consecutive days, the short-term observation range can expand toward RMB 17.20~17.50; if it only touches intraday and then closes back below RMB 16.60, it is closer to a spike-and-pullback.

③ Capital and Liquidity Background

As of September 11, 2026, single-day turnover was approximately RMB 177 million, with a turnover rate of 1.42%; over the past 10 trading days, turnover was roughly RMB 134 million~232 million, and the turnover rate was roughly 1.08%~1.82%. On September 9, turnover was approximately RMB 232 million and turnover rate 1.82%, a relatively active day recently; on September 10 and September 11, turnover was approximately RMB 148 million and RMB 177 million, respectively, with no obvious volume-driven selloff. Shareholder structure data as of June 30, 2026: the top ten shareholders together held approximately 408 million shares, accounting for approximately 51.15% of total share capital; controlling shareholder China Iron & Steel Research Institute Group held approximately 313 million shares, accounting for approximately 39.25%; Guoxin Investment Co., Ltd. held approximately 28.055 million shares; Hong Kong Central Clearing Company Limited held approximately 8.442 million shares; China AMC Guozheng Aerospace and Aviation Industry ETF held approximately 3.160 million shares, accounting for approximately 0.40%. Among the top ten shareholders there are public index products, but the public list does not show large concentrated holdings by public funds, social security, or QFII; there are also several natural-person shareholders and margin trading credit account holdings, and the company's disclosed related-party relationships or acting-in-concert relationships among the top ten shareholders are unknown. The above shareholder data lags the September 11 market by approximately two and a half months, and the structure may have changed during the period. Overall, the company's daily turnover is approximately RMB 100 million~200 million, with a turnover rate of approximately 1%~2%, making it a medium-liquidity stock; under normal trading, buy-sell impact is relatively limited, but during consecutive volume breakouts or rapid declines, when turnover reaches RMB 220 million~250 million or more, short-term volatility and order-book divergence may increase noticeably.

A checkable volume confirmation signal is: if the share price breaks upward through the RMB 16.70~16.85 range, while single-day turnover reaches approximately RMB 220 million or more for consecutive days and the turnover rate exceeds approximately 1.8%, this can be regarded as a confirmation signal of increased short-term capital participation; if turnover during the breakout is still below approximately RMB 150 million, then caution is needed regarding a volume-less spike and insufficient breakout validity.

④ Points to Watch (Observation Ideas Only, Not Operating Instructions)

• Observe whether the RMB 16.00~16.20 range can provide effective support; if lost, watch for the possibility of a pullback toward the RMB 15.25~15.55 strong support area. The above are observation ideas, not operating instructions.
• Observe whether the RMB 16.60~16.85 resistance area can be effectively broken by the closing price, rather than only an intraday spike. The above are observation ideas, not operating instructions.
• Observe whether turnover during an upward breakout reaches approximately RMB 220 million or more for consecutive days and whether the turnover rate exceeds approximately 1.8%. The above are observation ideas, not operating instructions.
• Observe whether the RMB 15.25~15.55 strong support area is lost; if lost, reassess the risk of a pullback toward RMB 15.00 and RMB 14.82. The above are observation ideas, not operating instructions.

The above scenario deduction is based on the September 11, 2026 closing data and historical prices and technical indicator calculations. Short-term share prices will also be disturbed by multiple factors such as news, capital flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not constitute a guarantee of actual future trends, and do not constitute buy or sell recommendations. Please make independent judgments based on the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The superalloy industry is a key materials field for high-end equipment such as aerospace, naval vessels, nuclear power, and gas turbines. In 2025, China's superalloy market size was approximately RMB 14.104 billion, and the global market approximately RMB 47.536 billion; it is expected to reach RMB 74.534 billion globally by 2032, with a CAGR of approximately 6.64% (source: a "Global and China Superalloy Market Capacity Analysis" report, reposted by Sohu, 2026-06-13, third-party institutional basis, not official statistical data). China's superalloy output in 2025 was approximately 62,000 tons (Guanyan Tianxia/China Baogao, 2026-06). Industry concentration: in 2025, CR2 was approximately 25.1% and CR5 exceeded 30%; from 2024 to 2025, CR3 fell 4.6 pct and CR5 fell 9 pct, with competition becoming more dispersed (Qianzhan Industry Research Institute, 2026-06-01, third-party institutional estimate, not official statistics). In 2025, CISRI-Gaona's market share was 18.19%, Fushun Special Steel 6.94%, with Longda Alloy third and Tunan shares fourth (third-party estimate).

6.2 Competitive Landscape

• Three capacity tiers (Qianzhan Industry Research Institute/Guanyan Tianxia, 2026-06): First tier (≥5,000 tons/year): CISRI-Gaona, Fushun Special Steel, Longda Alloy, Western Superconducting; second tier (1,000–5,000 tons/year): Tunan shares, Baosteel Special Steel (>3,000 tons/year), Panchang Steel (Pangang Group Jiangyou Changcheng Special Steel); third tier (<1,000 tons/year): Zhongke Sannai, Yingliu shares, Lianshi Aviation.
• Market share (2025, third-party estimate): CISRI-Gaona 18.19% (approximately 18.2%), Fushun Special Steel 6.94% (approximately 6.9%), Longda Alloy third, Tunan shares fourth. Note a difference in wording in one source: Qianzhan's competitive status summary stated that a competitive landscape had basically formed with Fushun Special Steel and CISRI-Gaona as the first tier, while in the market share ranking CISRI-Gaona ranked first; both confirm the two as the first tier, with no substantive conflict.
• Porter's Five Forces (Qianzhan, 2026-06-01): strong upstream bargaining power (high overseas dependence for nickel and cobalt, reliance on imports for high-end smelting equipment); weak downstream bargaining power (centralized procurement by OEMs, 5-8 year certification cycle, high customer stickiness, low price elasticity); low threat from new entrants (technical barriers in vacuum melting, precision forging, single-crystal blades, etc. + military qualification/aerospace quality system certification barriers + capital barriers); low threat from substitutes (non-substitutable high-temperature resistance, high strength, and corrosion resistance); industry competition is relatively intense, with the first tier being CISRI-Gaona and Fushun Special Steel, and Western Superconducting, Tunan shares, and Longda Alloy accelerating their catch-up.
• Company technical accumulation (relatively soft basis): since 1958, it has developed more than 120 types of superalloys, including more than 90 types of wrought superalloys and more than 10 types of powder superalloys, accounting for more than 80% of the national total for these types; of the 201 grades in the "China Superalloy Handbook," the company and its predecessor led the development of 114, accounting for 56% (source: company 2023 interim report).
• Civilian product share: management's 2025-11-24 investor relations response stated that civilian product revenue accounted for approximately 40% in 2024, meaning military/aerospace still accounted for approximately 60%.

6.3 Main Competitors

CISRI-Gaona ranks first in market share among the first tier of the superalloy industry (approximately 18.19% in 2025, third-party estimate), and together with Fushun Special Steel (approximately 6.94%) constitutes the industry's first tier, leading catch-up players such as Longda Alloy, Tunan shares, and Western Superconducting, but CR5 of only approximately 30% means the remaining manufacturers' shares are highly dispersed (third-party estimate, not official statistics). The company's core differentiation lies in: relying on grade monopoly (leading development of 114 of the 201 grades in the "China Superalloy Handbook," accounting for 56%), military qualifications (one of only a few strategic suppliers to AECC), and full-category processes (precision casting, die forging and ring rolling, powder metallurgy, additive manufacturing, etc.) to form a high-barrier midstream high-end materials supplier positioning. Compared with peers in the industry, the company's military products account for approximately 60% and civilian products approximately 40%; in 2025, overall gross margin was 23.77% and net profit attributable to parent RMB 87 million (-64.83%), squeezed both by the concentrated realization of annual military price-reduction clauses and high prices of precious metals such as nickel and cobalt; future performance elasticity depends on product mix upgrading, release of scale effects, and restoration of pricing power from the volume ramp-up of new models (powder superalloys, ODS, single crystal, etc.).

7. Risk Warnings

• Raw material cost pass-through risk: raw materials account for approximately 60% of the company's product costs, with main inputs including non-ferrous metals such as nickel, chromium, and cobalt. The company is in a price-taker position upstream and has disclosed that cost increases may not be fully passed on downstream; if nickel and cobalt prices remain high, this may further compress gross margins of cast, wrought, and some new-type alloy products.
• Product price reduction and profit recovery below expectations risk: in 2025, annual price-reduction clauses on military products were concentrated, some products converting to mass production faced tiered price reductions, and renegotiation of newly signed orders once produced negative gross margins; if annual reductions and mass-production price cuts continue, revenue growth may be difficult to convert into profit growth in tandem.
• Customer concentration and bargaining power risk: more than 60% of the company's products are supplied to the aerospace and aviation sector, with the top five customers accounting for 31.80% of revenue in the 2025 annual report, and the prospectus disclosed a significantly higher top-five customer share under another statistical basis; OEMs engage in centralized procurement with long certification cycles and low price elasticity, so if the order rhythm, procurement prices, or product models of core customers change, this may significantly affect revenue and profit.
• Accounts receivable and working capital risk: accounts receivable in H1 2026 were approximately RMB 1.957 billion, and the Stockstar basis shows its scale was significantly higher than net profit attributable to parent in the same period; although operating cash flow turned positive to RMB 319 million in the first half, operating cash flow had previously fallen to RMB 15.9 million in 2024, and if collections slow again, this may increase risks of bad debts, capital occupation, and cash flow volatility.
• New-type alloy mass-production ramp-up risk: new-type alloy revenue grew 149.38% year-over-year in H1 2026, but some products previously faced tiered price reductions during the conversion-to-mass-production stage, and the new-type alloy gross margin in H1 2025 was once -29.50%; if the ramp-up mainly comes from low-priced orders or process proficiency improvement falls short of expectations, high revenue growth may not necessarily bring corresponding profit contribution.
• Valuation and performance expectation risk: as of the September 11, 2026 share price of RMB 16.30, the dynamic P/E ratio is approximately 101.5x to 102.7x, while institutional forecasts for 2026 net profit attributable to parent range from approximately RMB 152 million to RMB 249 million, with forecast divergence close to double; if profit recovery falls below market expectations, valuation may face repricing pressure.
• Overseas project advancement risk: controlled subsidiary Qingdao Xinlitong plans to invest no more than RMB 138 million in Saudi Arabia to build an ethylene cracking furnace tube production line, but as of April 2026 the relevant approvals were still being processed, and the company noted that the Middle East situation could affect the completion time of procedures; project implementation, construction progress, and subsequent operating contribution are all uncertain.
• Technical pullback risk: the share price recently spiked and then pulled back consecutively in the RMB 16.60 to 16.85 area; if it subsequently breaks below RMB 16.00 and further loses the RMB 15.25 to 15.55 strong support area, it may retest around RMB 15.00 or even the stage low of RMB 14.82; technical indicators only reflect historical prices and cannot replace fundamental judgment.

8. Conclusion and Outlook

CISRI-Gaona's medium-to-long-term growth logic mainly comes from aerospace superalloy demand, military-civilian product synergy, product mix upgrading, and the volume ramp-up of new-type alloys. The company has military qualifications, customer certification barriers, and a multi-process platform; the rapid revenue growth of new-type alloys in H1 2026 shows strong structural elasticity in products such as powder superalloys, ODS, and additive manufacturing; after the equity structure adjustment of the Xi'an aviation components subsidiary, the company still maintains a 67.97% controlling stake, and core control has not changed.

Whether the performance recovery can translate into sustained growth depends on the profitability of new-type alloys after volume ramp-up, whether the gross margins of cast and wrought alloys stop falling, whether the pressure from annual military price reductions and mass-production tiered price cuts eases, and whether raw material costs such as nickel and cobalt can be effectively passed through. Institutional forecasts for 2026 net profit attributable to parent are approximately RMB 152 million to RMB 249 million, with large forecast divergence, indicating that the pace and magnitude of profit recovery remain highly uncertain.

The company's current valuation still clearly depends on future profit recovery, and the sharp decline in 2025 profit has led to relatively high static valuation indicators; at the same time, the share price is in an oscillating range after a rebound, with RMB 16.60 to 16.85 as a short-term resistance area and RMB 16.00 to 16.20 and RMB 15.25 to 15.55 as important observation support areas. Going forward, focus should be on whether revenue growth can be accompanied by simultaneous improvement in gross margin and cash flow, rather than judging operating trends solely based on a single quarter's profit growth.

Data Sources

• CISRI-Gaona (300034) 2025 Management Discussion and Analysis
• CISRI-Gaona: 2025 Annual Report Summary_Jiufang Zhitou - Global Index
• China Securities Journal - Beijing CISRI-Gaona Technology Co., Ltd. - | Page B191: Information Disclosure | Previous Page Next Page
• [Securities Daily - Beijing CISRI-Gaona Technology