Shaanxi Kelong New Materials Technology Co., Ltd. (Kelong New Materials) (920098)

Individual Stock Analysis Report | Industry: Rubber & Plastic New Materials and Coal Mine Equipment | Report Date: September 13, 2026 | As of the close on September 11, 2026; MA, MACD, RSI, Bollinger Bands, and main-force capital data mainly as of September 10, 2026; shareholder structure data as of March 31, 2026

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

I. Core Summary

Kelong New Materials' 2025 operating revenue was RMB 484.32 million, up 0.18% year-on-year, with net profit attributable to parent of approximately RMB 58.8131 million, down 32.33% year-on-year; in the first half of 2026, revenue further grew 5.56% to RMB 228.4 million, but net profit attributable to parent declined 15.84% to RMB 23.9928 million, non-GAAP net profit declined 13.65%, gross margin fell from 36.05% in the same period last year to 34.06%, and net cash flow from operating activities was negative RMB 14.9084 million. The company's current core characteristic is that revenue is still growing, but the share of low-gross-margin equipment business is rising, and profitability and cash collection are under pressure.

The company's business consists of rubber & plastic new materials, coal mine auxiliary transportation equipment, repair & leasing, and mining accessories. In 2025, rubber & plastic new materials revenue was RMB 228.63 million with a gross margin of 42.15%, still the main source of profit; coal mine auxiliary transportation equipment revenue was RMB 192.17 million, up 16.03% year-on-year, but gross margin was only 29.18%. In the first half of 2026, equipment revenue grew 27.36% year-on-year, while rubber & plastic new materials revenue declined 0.84% and repair service revenue declined 49.37%, with the business structure continuing to tilt toward the relatively low-gross-margin equipment side.

The company has a comprehensive layout covering seals, hydraulic hoses, support carrier vehicles, as well as repair, leasing, and accessories services. Its fundraising projects cover a dual-use military-civilian hydraulic pipe production line, an R&D center, and a digital factory, which are expected to support expansion into high-end seals, high-pressure rubber hoses, military rubber & plastics, liquid cooling, and other directions. However, as of June 30, 2026, the cumulative investment progress of the R&D center project was only 24.57%, and the investment progress of the dual-use military-civilian hydraulic pipe production line project was 20.11%, and the R&D center construction has been postponed to December 31, 2028. The realization of related incremental businesses still needs to be observed.

As of September 11, 2026, the company's stock price closed at RMB 18.03, having fallen below the estimated MA5, MA10, and MA20 values and the area near the Bollinger middle band, with a weak short-term price structure; however, as of September 10, MACD was still above the zero axis, and RSI6 was 42.6, not yet forming a traditional oversold confirmation. Based on a stock price of around RMB 18, the company's total market capitalization is approximately RMB 1.467 billion, and KAIYUAN Securities forecasts a corresponding 2026 forecast P/E of approximately 25–29x. The reasonableness of the valuation depends on whether subsequent profits can be realized.

II. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Rubber & plastic new materials products: hydraulic combined seals, hydraulic hoses and hose assemblies, military seals and hoses, special rubber & plastic products, and customized rubber & plastic products for high-speed rail, wind power, liquid cooling systems, and other scenarios.
• Coal mine auxiliary transportation equipment: hydraulic support carrier vehicles, shovel-plate carrier vehicles, etc., covering whole-vehicle design, production, sales, and repair, with a key focus on large mining height and ultra-long working face scenarios.
• Repair services and leasing: providing repair, leasing, and related services around support carrier vehicles.
• Other mining accessories: providing support carrier vehicle accessories and other mining accessories around coal mine customers.
• 2025 revenue structure: rubber & plastic new materials products revenue of RMB 228.63 million, accounting for approximately 47.2% of operating revenue, with a gross margin of 42.15%; coal mine auxiliary transportation equipment revenue of RMB 192.17 million, accounting for approximately 39.7%, with a gross margin of 29.18%; repair service revenue of RMB 29.1245 million, accounting for approximately 6.0%, with a gross margin of 25.16%; other mining accessories revenue of RMB 16.8719 million, accounting for approximately 3.5%, with a gross margin of 2.01%; other business revenue of RMB 17.527 million, with a gross margin of 38.40%.

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

Kelong New Materials is in the midstream of the coal mine equipment industry chain, with its business based on high-end rubber & plastic basic components and extending to coal mine auxiliary transportation equipment, repair, leasing, and accessories services. Its production processes include material formulation, rubber mixing, seal molding, hose manufacturing, assembly crimping, whole-vehicle design, and final assembly. Its customers cover large coal enterprises, coal machinery OEMs, military enterprises, and customers in high-speed rail, wind power, liquid cooling, and other sectors.

• The rubber & plastic new materials business mainly purchases polyurethane prepolymers, polyoxymethylene, rubber and various additives, steel wire, and pipe fittings.
• Coal mine auxiliary transportation equipment mainly uses engines, frame assemblies, axles, explosion-proof diesel engines, and other special vehicle components.
• The above materials and components, such as polyurethane prepolymers, rubber, polyoxymethylene, steel wire, and engines, are affected by supply-demand relationships for bulk commodities, chemical materials, and components. The company as a whole is a price taker for some raw materials; the annual report notes that if the prices of major raw materials continue to rise and cannot be quickly passed downstream, product gross margins will be compressed.
• In 2025, the top five suppliers' procurement amount was RMB 74.3174 million, accounting for 24.75% of total procurement; no single supplier accounted for more than 6% of procurement, and supplier concentration was lower than customer concentration. The top five suppliers included Xianyang Xinshengyuan Electromechanical Equipment Co., Ltd., Shanghai Fang'an Power Technology Co., Ltd., TIEFENBACH Control Systems GmbH, Pingdingshan Zhide Coal Machinery Equipment Co., Ltd., and Shanxi Anguli Technology Co., Ltd.
• The annual report does not disclose the specific procurement amounts and cost proportions of various raw materials such as chemical materials, steel, and engine components, so it is impossible to accurately break down the impact of each type of input on costs.
• Downstream customers mainly include large coal enterprises and their subordinate coal mines, coal machinery OEMs, military enterprises and research institutes, as well as customers in high-speed rail, wind power, and liquid cooling systems.
• Customers in the coal sector include Shaanxi Coal Group, Jinneng Holding, CHN Energy, China Shenhua, China Coal Energy, and Shandong Energy; coal machinery customers include Zhengzhou Coal Mining Machinery, Beijing Coal Machinery, and Pingdingshan Coal Machinery.
• The company usually obtains orders through bidding, inquiry and comparison, and commercial negotiation. Large coal enterprises and leading coal machinery enterprises have larger procurement scales and relatively good customer credit quality, but usually have strong bargaining power; coal mine equipment orders are also affected by capital expenditure, coal prices, and the prosperity of the coal industry.
• As of 2025, the total sales of the top five customers were RMB 260.56 million, accounting for 53.80% of annual operating revenue. Among them, Shaanxi Coal and Chemical Industry Group Co., Ltd. had sales of RMB 146.69 million, accounting for 30.29%; Jinneng Holding Group Co., Ltd. RMB 49.4529 million, accounting for 10.21%; CHN Energy Investment Group Co., Ltd. RMB 29.1008 million, accounting for 6.01%; Linzhou Heavy Machinery Group Co., Ltd. RMB 20.3313 million, accounting for 4.20%; the fifth-largest customer was disclosed anonymously due to involvement in military business.
• The customer concentration data is on a 2025 annual basis, and the research minutes do not provide the proportion of the top five customers in other years for cross-comparison; the name of the fifth-largest customer and some information were not disclosed due to confidentiality requirements, and the specific details should be based on the latest annual report.
• Compared with high-end rubber & plastic products, auxiliary transportation equipment and other mining accessories have lower gross margins; in 2025, the business structure tilted toward whole-vehicle equipment and supporting services, putting pressure on overall profitability.
• As of December 31, 2025, the book value of accounts receivable was RMB 407.73 million, accounting for approximately 33.88% of total assets, approximately 84.2% of 2025 operating revenue and 6.9x the year's net profit attributable to parent; accounts receivable turnover declined from 1.73 in 2024 to 1.34 in 2025. At the end of 2024, the book value of accounts receivable was RMB 316.33 million, accounting for approximately 65.4% of operating revenue. At the end of 2025, accounts payable were RMB 102.59 million, higher than RMB 63.2549 million at the end of 2024, mainly related to material preparation for new models of coal mine auxiliary transportation equipment and hydraulic hose purchased materials not yet reaching the settlement point. The increase in accounts receivable scale and the decline in turnover indicate that downstream customers have strong bargaining power in payment cycles and capital occupation, and the company needs to support business expansion with relatively large working capital; although most customers are large state-owned enterprises or industry leaders, high customer quality does not equate to faster collection.
• Customer concentration is relatively high, with the top five customers' sales in 2025 accounting for 53.80% of operating revenue; on the supplier side, the top five suppliers' procurement in 2025 accounted for 24.75% of total procurement, with no single supplier exceeding 6%. The customer concentration data is based on the 2025 annual report, and the research minutes do not provide other years' data for cross-comparison; military customers are disclosed anonymously, and the specific details should be based on the latest annual report.

The company is located in the specialized manufacturing segment of the midstream of the industry chain. It neither controls upstream mineral resources nor possesses consumer-brand-type terminal pricing power; among rubber & plastic new materials, high-end seals, high-pressure rubber hoses, and military rubber & plastic products are relatively positioned at the higher value-added end of midstream manufacturing, while auxiliary transportation equipment and some mining accessories lean toward scale-type, relatively low-gross-margin businesses. The key to further improving profit lies in increasing the revenue proportion of high-end seals, large-diameter high-pressure rubber hoses, military rubber & plastic products, pure water medium seals, and other high-value-added customized products, while strengthening cost control in the equipment business and improving the monetization capability of aftermarket services such as repair, leasing, and accessories.

III. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

In the first half of 2026, net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was approximately RMB 22.5313 million, down 13.65% year-on-year; basic earnings per share were RMB 0.30, down 14.29% year-on-year. Gross margin was 34.06%, compared with 36.05% in the same period last year, down 1.99 percentage points. Net cash flow from operating activities was negative RMB 14.9084 million, compared with negative RMB 4.116 million in the same period last year; the debt-to-asset ratio was 20.70%, compared with 21.55% in the same period last year.

In the first half of 2026, the company showed revenue growth without profit growth: revenue increased 5.56% year-on-year, but net profit attributable to parent declined 15.84% year-on-year. The main pressures came from changes in product structure, a decline in the gross margin of the coal mine auxiliary transportation equipment business, and increased R&D investment in fields such as military, data center liquid cooling, low-altitude economy, coal machinery seals, and rubber hose material modification. Coal mine auxiliary transportation equipment revenue increased 27.36% year-on-year, but gross margin fell to 26.49%; rubber & plastic new materials product revenue declined 0.84% year-on-year, with a gross margin of 43.12%. Full-year 2025 revenue was basically flat while profit declined significantly.

3.2 Profit Forecast

The above is a relatively new forecast updated by KAIYUAN Securities after the 2026 interim report, and the research minutes state that it has lowered its profit forecast. The corresponding forecast P/E ratios are approximately 25.15x for 2026, 22.25x for 2027, and 19.35x for 2028. There are differences among other institutions and different versions of forecasts: HUAYUAN Securities expects net profit attributable to parent of approximately RMB 90 million, RMB 133 million, and RMB 149 million for 2026–2028, with EPS of approximately RMB 1.11, RMB 1.64, and RMB 1.84; another publicly reproduced version of KAIYUAN Securities expects net profit attributable to parent of approximately RMB 60 million, RMB 82 million, and RMB 96 million, with EPS of approximately RMB 0.73, RMB 1.01, and RMB 1.19. Due to differences in calibers among versions, they cannot simply be merged into a consensus forecast.

3.3 Valuation Level and Institutional Ratings

As of the close on September 11, 2026, the stock price was RMB 18.03, total share capital was approximately 81.3204 million shares, and total market capitalization calculated simply based on the closing price and total share capital was approximately RMB 1.466 billion. As of September 10, 2026, public valuation data showed PE-TTM of approximately 27.83x, PB of approximately 1.60x, total market capitalization of approximately RMB 1.511 billion, and stock price of RMB 18.58. Since public platforms did not simultaneously disclose complete PE indicators for September 11, the PE-TTM still cites September 10 data and is not presented as an exact valuation for September 11. Based on KAIYUAN Securities' post-interim-report forecast, a stock price of around RMB 18 corresponds to a 2026 forecast PE of approximately 25–29x, 2027 of approximately 18–22x, and 2028 of approximately 15–19x. Publicly searchable research report summaries did not reveal a clear absolute target price, and the reasonableness of the current valuation mainly depends on profit realization in 2026–2028.

IV. Recent News and Announcements

4.1 No New Major Company Announcements Since September

As of September 12, 2026, public announcement searches found no new major company announcements disclosed by Kelong New Materials between September 1 and September 12, 2026. The company's most recent concentrated announcement disclosure date was August 28, 2026, mainly including the 2026 semi-annual report, the special report on the deposit and use of raised funds for the half year, the announcement on the postponement of fundraising projects, board resolutions, and continuous supervision verification opinions. An investor interaction record update appeared on September 4, 2026, and margin trading data updated on September 10, 2026, but these are not newly added major operating announcements by the company.

4.2 2026 Semi-Annual Report: Revenue Growth but Profit Decline

The company disclosed its unaudited 2026 semi-annual report on August 28, 2026, for the reporting period from January 1, 2026 to June 30, 2026. During the reporting period, operating revenue was RMB 228.3966 million, up 5.56% year-on-year; net profit attributable to shareholders of the listed company was RMB 23.9928 million, down 15.84% year-on-year; net profit after deducting non-recurring gains and losses was RMB 22.5313 million, down 13.65% year-on-year; overall gross margin was 34.06%, down 1.99 percentage points from the same period last year; net cash flow from operating activities was negative RMB 14.91 million, compared with negative RMB 4.12 million in the same period last year. 2026 Q2 operating revenue was approximately RMB 137 million, up 3.70% year-on-year; net profit attributable to parent was approximately RMB 15.77 million, down 9.58% year-on-year.

4.3 Segment Revenue Performance and Gross Margin Pressure

In the first half of 2026, coal mine auxiliary transportation equipment revenue was RMB 113.0418 million, up 27.36% year-on-year; rubber & plastic new materials product revenue was RMB 103.6216 million, down 0.84% year-on-year; repair service revenue was RMB 6.181 million, down 49.37% year-on-year. The company explained that the increased proportion of the relatively low-gross-margin coal mine auxiliary transportation equipment business in the revenue structure led to pressure on overall gross margin and profit margin.

4.4 No Separate Earnings Forecast Retrieved Yet

As of September 12, 2026, no separately disclosed earnings forecast, positive profit alert, or negative profit alert for the first three quarters of 2026 or for 2026 as a whole was retrieved. The latest confirmable performance information currently comes mainly from the 2026 semi-annual report. The semi-annual report disclosed a section estimating operating performance for January–September 2026, but public search results did not show that the company separately issued a specific earnings forecast announcement for the first three quarters. The specific content should be based on the full text of the original periodic report on the BSE.

4.5 Fundraising Project Postponed to December 31, 2028

The company disclosed the "Announcement on the Postponement of Fundraising Projects" on August 28, 2026, announcement number 2026-068, deciding to extend the date on which the "R&D Center Construction Project" reaches its intended usable state to December 31, 2028. As of June 30, 2026, the planned investment amount of the project was RMB 47.9434 million, cumulative investment was RMB 11.7779 million, and investment progress was 24.57%. The company stated that this postponement does not change the implementation entity, the use of raised funds investment, or the total investment scale of the fundraising project; the postponement matter has been reviewed and approved by the audit committee of the board and the board of directors and does not need to be submitted to the shareholders' meeting for review. The sponsor institution Guoxin Securities had no objection to this postponement.

4.6 Investment Progress of Other Fundraising Projects

As of June 30, 2026, the "dual-use military-civilian new synthetic material hydraulic pipe production line construction project" had a planned investment amount of RMB 157.0566 million, cumulative investment of RMB 31.5772 million, and investment progress of 20.11%; the "digital factory construction project" had a planned investment amount of RMB 5 million, cumulative investment of RMB 2.9959 million, and investment progress of 59.92%.

4.7 Reduction by Shareholder Holding More Than 5%

The company disclosed an equity change announcement on July 22, 2026. Ningbo He'en Weiye Venture Capital Partnership (Limited Partnership), a shareholder holding more than 5%, cumulatively reduced 1,368,395 shares through centralized bidding and block trades between June 8, 2026 and July 21, 2026, accounting for 1.6827% of the company's total share capital. Its shareholding ratio declined from 6.6827% to 5.0000%, touching an integer multiple of 5%. This shareholder is not the company's largest shareholder or actual controller.

4.8 Implementation of the Reduction Plan and Subsequent Arrangements

On July 27, 2026, the company disclosed the announcement on the results of the reduction by shareholders holding more than 5%. Public databases show that He'en Weiye continued to reduce approximately 258,000 shares between July 22 and July 24, 2026, accounting for approximately 0.47% of circulating share capital; previously, on July 20, 2026, a block trade of approximately 1.112 million shares also occurred, with an average transaction price of approximately RMB 13.29. The specific shareholding ratio and completion of the reduction should be based on the original text of the company's announcement No. 2026-063. The company previously disclosed on April 20, 2026 that He'en Weiye planned to reduce a total of no more than 1,626,400 shares, no more than 2% of the company's total share capital, through centralized bidding or block trades within 3 months after 30 trading days from the date of the announcement.

4.9 No Share Repurchase Arrangement Found in 2026

As of September 12, 2026, no announcements by Kelong New Materials in 2026 regarding share repurchase plans, repurchase progress, repurchase implementation results, or special loans for repurchases were retrieved. The company's prospectus and articles of association contain institutional arrangements regarding stabilizing the stock price and repurchasing shares, but institutional arrangements do not mean that the company has currently initiated a repurchase.

4.10 No M&A, Major Asset Restructuring, or Change of Control Matters Found Yet

As of September 12, 2026, no announcements by Kelong New Materials regarding major asset restructuring, mergers and acquisitions, change of control, or major equity investment were retrieved. Recent announcements focused mainly on the postponement of fundraising project construction and raised funds management.

4.11 Shaanxi Securities Regulatory Bureau Warning Letter Matter

On September 1, 2025, the Shaanxi Securities Regulatory Bureau took administrative regulatory measures by issuing warning letters to Kelong New Materials, Chairman Zou Weiwen, and Board Secretary Ren Ruiting, with document number "Shaanxi Securities Regulatory Measures Word [2025] No. 28". The problems identified by the regulatory authorities included: the company's establishment of a special account for raised funds in November 2024 was not reviewed and approved by the board of directors, and the previous special report on raised funds stating that there were no violations in the use and management of raised funds was inconsistent with the facts; the 2024 annual report omitted disclosure of a sales contract dispute in which the company was the plaintiff suing Fuxin Mining Group Machinery Manufacturing Co., Ltd., resulting in an understatement of litigation and arbitration amounts by RMB 1.9937 million; the company and its subsidiaries had provided a RMB 10 million counter-guarantee for the company's borrowings, but the relevant external guarantee matters were not fully disclosed in the 2024 annual report. The company and the relevant responsible persons were required to submit a written rectification report within 30 working days from the date of receipt of the decision. This matter occurred on September 1, 2025, and is not a newly added regulatory penalty in September 2026.

4.12 Changes in Coal Mine Safety Standards and Industry Regulatory Requirements

The company's 2026 semi-annual report mentioned that coal mine safety production regulatory requirements issued or implemented in the first half of 2026 and standards such as "GB 16413-2026 Safety Technical Requirements for Non-metallic Products for Coal Mines" involve flame retardancy, anti-static, and safety performance requirements for underground rubber & plastic seals, polymer hoses, and PTFE pipes. The company believes that coal mine equipment upgrades, regular replacement of parts, higher safety standards, and import substitution are conducive to the coal machinery rubber & plastic new materials and coal mine auxiliary transportation equipment businesses. As of September 12, 2026, no announcements of special industrial policies, government subsidies, major orders, or targeted support from regulatory authorities for Kelong New Materials in September were retrieved.

V. Stock Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

Kelong New Materials closed at RMB 18.03 on September 11, 2026, down 2.96% from the previous trading day, having fallen below the estimated MA5, MA10, and MA20 values and the area near the Bollinger middle band, with a weak short-term moving average and price structure. As of September 10, MACD was still above the zero axis, and RSI6 had not yet entered the traditional oversold range, indicating weakening momentum but not yet forming an extreme oversold confirmation. After the volume-expanded rise on September 2, the price fell continuously, with an obvious volume-expanded decline on September 10 and a low-volume continued decline on September 11, so short-term support still needs to be observed. The concentration data of the top ten shareholders was approximately 60.58% as of March 31, 2026, but there is an obvious time lag; combined with total market capitalization of approximately RMB 1.467 billion, circulating market capitalization of approximately RMB 999 million, and recent turnover levels, price elasticity may be relatively large when volume expands, while bid-ask depth may decline when volume contracts.

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

⚠️ Risk Warning: The following content is only a subjective scenario deduction based on the closing data on September 11, 2026, historical prices, and technical indicators. It does not constitute investment advice and does not represent a deterministic judgment about future prices.

① Key Technical Levels

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

• Range-bound consolidation (relatively high weight, about 60%; this is a subjective heuristic weight based on the current technical pattern, volume, and capital flows, not a statistical probability): the price observation range is RMB 17.8–19.3. Trigger conditions include stabilizing near RMB 17.8–18.0 on reduced volume, maintaining single-day turnover at approximately RMB 30 million–60 million, no further consecutive volume-expanded long bearish candles, and no obvious systemic decline in the BSE overall market and the rubber products or basic chemicals sectors. Under this scenario, the area near RMB 18.2–18.3 may first become rebound resistance, and if volume is insufficient, the stock price may fluctuate repeatedly near RMB 18.
• Weaker downside (medium weight; this is a subjective heuristic weight, not a statistical probability): the price observation range is RMB 16.5–18.0. Trigger conditions include the closing price effectively breaking below RMB 17.8, turnover re-expanding to approximately RMB 60 million–80 million or more during the break, main-force capital showing net outflows for multiple consecutive trading days, and the downward trend since September 2 continuing. If the area near RMB 17.5 is also broken with volume, observe the RMB 16.5–17.0 platform; in an extreme weak scenario, the distant risk reference is the RMB 15.1–15.3 area.
• Rebound and strengthening (relatively low weight; this is a subjective heuristic weight, not a statistical probability): the price observation range is RMB 19.3–20.5. Trigger conditions include regaining the MA20 and Bollinger middle band area near RMB 18.3, then breaking through the MA5 and MA10 resistance area of RMB 19.3–19.5 with volume, single-day turnover clearly higher than the recent norm and reaching at least approximately RMB 70 million, while the rubber products or BSE small-cap growth stock sector strengthens simultaneously, and the company has verifiable new news or announcement catalysts. If the price recovers RMB 19.5 with volume, further observe the RMB 19.7–20.3 platform; if volume cannot continue to expand when attacking RMB 20, a pullback after the rebound may still occur.

③ Capital and Liquidity Background

As of September 11, 2026, the turnover rate was 2.77%, and turnover was approximately RMB 27.95 million; on most recent trading days, turnover was approximately RMB 28 million–90 million, and it expanded to approximately RMB 139 million on September 2. Data as of March 31, 2026 showed that the top ten shareholders together held 60.5786% of total share capital, and the controller and his spouse together held approximately 40.45%; this shareholder structure data is about five and a half months from the latest market quotation and may have been affected by subsequent reductions, trading, and circulation of restricted shares, and cannot be regarded as the real-time structure as of September 11, 2026. Current data indicate that the company has a relatively small market capitalization, relatively limited circulating share capital, and relatively high chip concentration. Price elasticity may be relatively large when volume expands, while bid-ask depth may decline when volume contracts; when turnover is insufficient, relatively large buy or sell orders may bring more obvious price slippage. Clearly identified public funds, social security funds, or QFIIs among the top ten shareholders are not obvious; the main components are the actual controller, venture capital institutions, natural person shareholders, securities companies, and customer credit trading guarantee securities accounts.

The volume-price signal to check is: if single-day turnover continuously reaches approximately RMB 70 million or more and simultaneously effectively breaks through the RMB 19.3–19.5 resistance area, it can be regarded as a more meaningful volume-price repair signal; if turnover continues below RMB 30 million, then the low-liquidity consolidation characteristic still needs attention.

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

• Observe whether the MA20 and Bollinger middle band area of RMB 18.2–18.3 can be regained; if this area continues to face pressure, short-term breakdown pressure may continue.
• Observe the first support at RMB 17.8 and strong support at RMB 17.5; if there is a volume-expanded break below, further observe the RMB 16.5–17.0 platform.
• Observe the first resistance area of RMB 19.2–19.5, focusing on whether turnover expands simultaneously to judge rebound support strength.
• Observe whether turnover continuously reaches approximately RMB 70 million or more and is accompanied by a breakout above RMB 19.5. All of the above are observation ideas, not buy, sell, or hold instructions.

The above scenario deduction is based on the closing data on September 11, 2026 and historical prices and technical indicator calculations. Short-term stock 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 advice. Please make independent judgments in light of the latest market information and bear investment risks yourself.

VI. Industry Landscape and Competitor Analysis

6.1 Industry Status

Kelong New Materials spans three sub-sectors: hydraulic seals, hydraulic hoses and hose assemblies, and coal mine auxiliary transportation equipment, and extends the industry chain through repair, leasing, and mining accessories services. The core of industry competition includes material formulation, wear resistance, pressure resistance, and high- and low-temperature performance, development capability for large-size and complex working condition products, OEM certification and batch supply capability, and on-site service and rapid response capability.

6.2 Competitive Landscape

• Hydraulic seals are mainly used in industries such as construction machinery, coal mine machinery, aerospace, automobiles, and rail transit; coal mine hydraulic support seals are highly customized and need to adapt to different cylinder diameters, pressures, and working environments, with long customer certification cycles.
• Hydraulic hoses are affected both by new equipment investment in coal mines and by maintenance and replacement demand for existing equipment, and have certain aftermarket attributes. Regarding the company's market share in the coal machinery industry hydraulic hose incremental and maintenance market, the HUajin Securities 2024 IPO report cited company disclosure data stating that it was approximately 4.7% to 6.0% in 2023; this data is based on company disclosure or brokerage relayed calibers, and no independent third-party statistical cross-verification was found, so it should not be regarded as an authoritative industry market share.
• Demand for coal mine auxiliary transportation equipment is related to coal mine fixed asset investment, fully mechanized mining face construction, mine intelligentization transformation, and the large mining height trend. The enlargement of hydraulic supports, large mining height, and ultra-long working faces drive demand for larger tonnage, higher load, and longer-distance transportation equipment.
• Coal mine intelligentization has raised requirements for vehicle reliability, automation, and safety; aftermarket repair, leasing, and accessories services have become important incremental directions for equipment enterprises.
• Kelong New Materials' differentiation lies in having capabilities in rubber & plastic seals, hydraulic hoses, and support carrier vehicles at the same time, enabling it to provide components, whole vehicles, and repair services around hydraulic supports. The company disclosed in 2025 that support carrier vehicles with a load capacity of 80 tons and above can match the development trend of large hydraulic supports.
• Compared with larger comprehensive seal enterprises, the company is still relatively small in overall scale, and the coal and coal machinery industries remain the main source of revenue. Industry cycles, raw material prices, and customer procurement rhythms all affect operating performance.

6.3 Main Competitors

Kelong New Materials forms comparable relationships with Wanyou Seal, Litong Technology, and Kuangyi Shares in hydraulic seals and hydraulic hoses, respectively, forms business comparability with Yatong Precision in coal mine auxiliary transportation equipment, and has some intersection with Shengbang Shares in polymer rubber & plastics and special rubber products. Compared with single-product or single-industry competitors, Kelong New Materials' characteristic is that it combines seals, hoses, support carrier vehicles, repair, leasing, and accessories services, but its customer concentration is relatively high, its exposure to the coal and coal machinery industries is relatively high, and the gross margins of auxiliary transportation equipment and other mining accessories are lower than those of rubber & plastic new materials products.

VII. Risk Warnings

• Relatively high customer concentration: in 2025, the top five customers' sales accounted for 53.80% of operating revenue, among which Shaanxi Coal and Chemical Industry Group Co., Ltd. accounted for 30.29% and Jinneng Holding Group Co., Ltd. accounted for 10.21%; if major customers' procurement rhythms, bidding results, or payment arrangements change, it may have a relatively large impact on revenue and cash flow.
• Relatively high pressure from accounts receivable and collection: at the end of 2025, the book value of accounts receivable was RMB 407.73 million, approximately 84.2% of the year's operating revenue, and accounts receivable turnover declined from 1.73 in 2024 to 1.34; in the first half of 2026, net cash flow from operating activities was negative RMB 14.9084 million, and revenue growth may continue to be accompanied by relatively high capital occupation.
• Product structure downgrade suppressing profitability: in the first half of 2026, coal mine auxiliary transportation equipment revenue increased 27.36% year-on-year, but gross margin fell to 26.49%; in the same period, rubber & plastic new materials revenue declined 0.84%, and repair service revenue declined 49.37%. If the low-gross-margin equipment business continues to grow faster than the high-gross-margin rubber & plastic business, overall gross margin and net margin may come under further pressure.
• Relatively high exposure to the coal and coal machinery industries: the company's coal mine auxiliary transportation equipment, repair services, and other mining accessories are all affected by coal mine fixed asset investment, coal prices, fully mechanized mining face construction, and customer procurement rhythms; changes in industry prosperity or capital expenditure may affect order recognition.
• Risk of raw material cost squeeze: the company purchases materials and components such as polyurethane prepolymers, rubber, polyoxymethylene, additives, steel wire, pipe fittings, and engines, and is a price taker for some raw materials; if costs rise and the company cannot pass them downstream in a timely manner, it may compress the gross margins of rubber & plastic products and the equipment business.
• Fundraising project construction progress and postponement risk: as of June 30, 2026, the cumulative investment progress of the R&D center project was 24.57%, and the investment progress of the dual-use military-civilian new synthetic material hydraulic pipe production line project was 20.11%; the R&D center project has been postponed to December 31, 2028, and project construction, capacity release, and new product commercialization progress may fall short of expectations.
• Uncertainty in the conversion of new business R&D investment: the company is laying out fields such as military, data center liquid cooling, low-altitude economy, coal machinery seals, and rubber hose material modification, but increased R&D investment in the first half of 2026 has already put pressure on profit. Whether the related R&D can form orders and scaled revenue has not yet been verified by performance.
• Corporate governance and information disclosure have previously had regulatory risk: the Shaanxi Securities Regulatory Bureau took warning letter measures against the company and relevant responsible persons on September 1, 2025, involving issues such as approval of the special account for raised funds, litigation matters, and incomplete disclosure of external guarantees; if subsequent internal control and information disclosure rectification are not in place, it may bring continued regulatory and compliance risks.
• Shareholder reduction and liquidity risk: Ningbo He'en Weiye, a shareholder holding more than 5%, reduced its shareholding between June and July 2026, with its shareholding ratio declining from 6.6827% to 5.0000%, and subsequent continued reductions were also disclosed; the company's total market capitalization is approximately RMB 1.467 billion and circulating market capitalization is approximately RMB 999 million, recent turnover has fluctuated greatly, and concentrated chips and relatively limited liquidity may amplify stock price volatility.
• Technicals remain weak and valuation depends on performance realization: on September 11, 2026, the stock price was RMB 18.03, below the estimated MA5, MA10, MA20, and the Bollinger middle band, and it continued to fall after the volume-expanded spike on September 2; at the same time, according to KAIYUAN Securities' forecast, a stock price of around RMB 18 corresponds to a 2026 forecast P/E of approximately 25–29x. If profit forecasts are revised down or realization falls short of expectations, valuation and stock price may come under pressure.

VIII. Conclusion and Outlook

The company's medium- and long-term growth logic mainly comes from coal mine equipment upgrades, the large mining height and ultra-long working face trend, higher coal mine safety standards, and expansion into new applications such as high-end seals, hydraulic hoses, military rubber & plastics, and liquid cooling. At the same time, the company combines components, whole vehicles, and aftermarket services, which in theory helps improve customer stickiness and business coverage. However, current performance has not yet reflected the profit contribution of the above directions, and in the first half of 2026 it still showed revenue growth without profit growth.

The key to subsequent operating improvement lies in rubber & plastic new materials revenue returning to growth and maintaining a relatively high gross margin, the auxiliary transportation equipment business improving cost control and profitability, repair leasing and accessories businesses improving monetization capability, and promoting the implementation of fundraising projects as planned. KAIYUAN Securities forecasts 2026–2028 revenue of approximately RMB 522 million, RMB 573 million, and RMB 633 million, and net profit attributable to parent of approximately RMB 65 million, RMB 74 million, and RMB 85 million, but forecasts differ greatly among institutions and versions, and profit forecasts still carry relatively high uncertainty.

The company also needs to improve working capital efficiency. At the end of 2025, the book value of accounts receivable was RMB 407.73 million, accounting for approximately 33.88% of total assets and approximately 84.2% of full-year operating revenue, and accounts receivable turnover declined from 1.73 in 2024 to 1.34; the top five customers' sales accounted for 53.80%. Combined with the current negative operating cash flow, strong customer bargaining power, and weak stock price technical pattern, the future focus should be on collections, gross margin, equipment order quality, fundraising project progress, and volume-price changes, rather than judging operating quality solely based on revenue growth.

Data Sources

• Beijing Stock Exchange Listed Companies List
• Guoxin Securities Co., Ltd.
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2025 Annual Report Sina Finance_Sina
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2025 Board of Directors Work Report Sina Finance_Sina
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2025 Annual Report Sina Finance_Sina
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2025 Annual Report Summary Sina Finance_Sina
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2024 Annual Report Sina Finance_Sina
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: Prospectus Sina Finance_Sina
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2023 Annual Report Sina Finance_Sina
• https://dataclouds.cninfo.com.cn/sjother/bse_onmarket/2025/20250825/bbd8734581aa11f082f9fa163ee65716.pdf
• About Us - Corporate Official Website
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: Announcement on Postponement of Fundraising Projects Sina Finance_Sina
• Kelong New Materials: 2026 Semi-Annual Report Summary_Stock Channel_Stockstar
• KAIYUAN Securities: Gives Kelong New Materials Overweight Rating_Stock Channel_Stockstar
• [Kelong New Materials

KELONG NEW MATERIALS

2026 Q1 Report

FIRST Q](https://www.bse.cn/disclosure/2026/2026-04-29/33e891bf91c0426b80f5a7faa6ceaba7.pdf?utm_source=openai)

• HUAYUAN Securities - Financial Reports, Earnings Calls, Research Reports, News - Reportify
• Kelong New Materials (920098) Investment Rating, Kelong New Materials (920098) Latest Rating_Stockstar
• Kelong New Materials (920098) Earnings Forecast_F10_10jqka Financial Services Network
• Kelong New Materials (920098) - Historical Trading Data | Daban Ke Network
• Related Announcements - Beijing Stock Exchange
• Kelong New Materials (920098) Company Announcements_Sina Finance_Sina
• Kelong New Materials (920098) Company Events_F10_10jqka Financial Services Network
• Kelong New Materials: 2026 Semi-Annual Report_Stock Channel_Stockstar
• Kelong New Materials 2026 H1 Revenue RMB 228 Million, Up 5.56%, Multi-Track Layout Builds Long-Term Growth Certainty_Sina Finance_Sina
• Securities Code: 920098　　Securities Abbreviation: Kelong New Materials　　Announcement No.: 2026-060
• Securities Code: 920098 Securities Abbreviation: Kelong New Materials Announcement No.: 2026-046
• Shaanxi Kelong New Materials Technology Co., Ltd.
• Decision on Issuing Warning Letters to Shaanxi Kelong New Materials Technology Co., Ltd., Zou Weiwen, and Ren Ruiting_Shaanxi Regulatory Bureau
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2026 Semi-Annual Special Report on Deposit, Management, and Actual Use of Raised Funds Sina Finance_Sina
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2026 Semi-Annual Report Sina Finance_Sina
• Kelong New Materials (BJ920098) Stock Price_Stock Quotes_Financial Reports_Data Reports - Xueqiu
• Kelong New Materials (920098)_Stock Quotes, Quotes Homepage_China Finance Network
• Kelong New Materials (920098.BJ) Stock Quotes_Historical Data_Main-Force Capital - Big Wave Data
• Kelong New Materials (920098) Latest Updates_F10_10jqka Financial Services Network
• Kelong New Materials (920098)_Company Announcements_Kelong New Materials: 2026 Q1 Report Sina Finance_Sina

This report was automatically retrieved, compiled, and generated by AI based on public channel information. Information is as of the close on September 11, 2026; MA, MACD, RSI, Bollinger Bands, and main-force capital data are mainly as of September 10, 2026, and shareholder structure data are as of March 31, 2026. There may be timeliness differences, and specific data should be based on the company's formal announcements and authoritative data terminals. This report is only for information compilation and research reference, does not constitute any investment advice, and investors should make independent judgments and bear investment risks themselves.