GRG Banking Equipment Co., Ltd.

GRG Banking Equipment Co., Ltd. (stock code: 002152), founded in 1999, is a leading public high-tech enterprise listed on the Shenzhen Stock Exchange since 2007. The company specializes in manufacturing electrical, electronic, and communication equipment, focusing on two primary business lines: FinTech and Smart City solutions. GRGBanking has evolved from being the largest supplier of financial intelligent self-service equipment in China to developing a comprehensive global payment ecosystem. In the FinTech sector, GRGBanking provides intelligent terminals, operation services, and big data solutions, partnering with financial institutions to enhance digital transformation. The company has shipped over 420,000 intelligent terminals globally and maintains a significant market share in various applications. In the Smart City sector, GRGBanking develops intelligent solutions for transportation, security, and urban governance, collaborating with government agencies to improve urban services. With a presence in over 120 countries and eight tech support centers worldwide, GRGBanking is committed to advancing its technological capabilities and expanding its market reach.

1. Technological Innovation and R&D Excellence The Company remains committed to an innovation-driven development strategy, aligning R&D initiatives with its industrial roadmap to advance foundational technologies and key strategic projects. Significant resources are continually allocated to enhance capabilities in algorithms, computing power, data infrastructure, and application scenarios, contributing to the ongoing development of an integrated digital technology and product ecosystem. We have established a robust R&D organizational framework comprising a "General Research Institute + Specialized Institutes" model. This structure is supported by a professional research team of nearly 3,000 experts, including academicians, PhDs, and master's degree holders. R&D investment has exceeded 9.5% of total operating revenue for six consecutive years. Our credentials include recognition as a National Technological Innovation Demonstration Enterprise, a National Intellectual Property Demonstration Enterprise, a Service-Oriented Manufacturing Demonstration Enterprise, and a Single Champion in Manufacturing. The Company has been ranked among the Top 100 Comprehensive Competitiveness Enterprises in China's Software and Information Service Industry for nine years running and was named one of the Top 10 Leading Service Outsourcing Companies and a Trusted Software Demonstration Enterprise in 2024. We host key national research platforms, including the National New-Generation AI Open Innovation Platform for Intelligent Financial Equipment and the National Engineering Research Center for Financial Intelligent Terminal System Security Technologies. We have led the development of China's first public data authorization operation platform standard and contributed to formulating national AI standards for government services. By integrating core elements—algorithms, computing power, data, and real-world scenarios—we are accelerating our digital transformation strategy and expanding into the large-scale AI model sector. 2. Institutional Innovation and Operational Efficiency In alignment with the national "Benchmarking World-Class Management" initiative, the Company has strengthened dynamic strategic management and implemented systematic optimization of human resources, risk control, and digital operations. These efforts have significantly reduced management costs and improved operational efficiency. Between 2018 and 2024, our management expense ratio demonstrated a steady downward trend, reflecting meaningful progress in cost control and value creation. From a governance perspective, we have optimized our equity structure by introducing strategic investors and supporting equity financing for high-performing subsidiaries. Long-term incentive mechanisms, including employee stock ownership plans at the subsidiary level, have been introduced to align employee interests with corporate growth, fostering a culture of shared success. Looking ahead, we will continue to leverage our listed company platform and explore further reforms—including mixed-ownership models—to drive corporate vitality and sustainable growth. 3. First-Mover Advantage in the Digital Economy The Company is strategically positioned as an early mover in China's digital economy. Guided by national policy priorities, we have rapidly advanced digital transformation in financial technology, smart cities, and intelligent transportation. In the fintech domain, we have secured competitive positioning in digital RMB, localized IT infrastructure for financial institutions, and intelligent branch solutions. Strategic acquisitions of China Payment and Clearing Network Co., Ltd.(CPCN) and Chinadaas Co., Ltd.(Chinadass) have extended our business into internet payments and corporate credit reporting, enabling end-to-end digital finance value chain coverage. In the smart city sector, we have developed a robust ecosystem of applications such as "City Brains", smart state-owned assets, smart auditing, and intelligent government platforms. These initiatives have produced several nationally recognized benchmark scenarios. We have also established digital investment platforms to participate in urban digital infrastructure projects nationwide. Our acquisition of a controlling stake in GRG Wuzhou. further enhances our strategic layout in computing infrastructure and power. 4. Integrated and Flexible Supply Chain Management Our mature supply chain system enables intelligent and flexible production management across a wide range of high-tech terminal products. Backed by over two decades of experience in industrial manufacturing, the Company has developed strong capabilities to meet diverse, small-batch, and time-sensitive customization requirements across global markets. On February 19, 2024, we launched operations at our next-generation AI intelligent equipment base in Guangzhou's Sino-Singapore Knowledge City. This flagship facility includes a smart digital factory and AI-enabled industrial park, representing a significant upgrade in flexible and intelligent manufacturing capacity. During the reporting period, our R&D and production functions worked in close coordination to ensure timely order fulfillment, while procurement strategies continued to drive down costs and improve efficiency. 5. Strategic Investment and M&A Capabilities The Company follows a dual-engine growth model driven by industrial development and capital investment. Our market-oriented capital operation system encompasses investment, financing, management, and exit mechanisms. We have built a comprehensive portfolio around our core businesses through diversified capital strategies—including industry incubation, majority acquisitions, strategic equity partnerships, and asset securitization. We have successfully incubated several high-performing subsidiaries such as GRGBanking Equipment (HK) Co., Ltd., GRGIntech, and Pingyun Craftsman. Strategic acquisitions of CTJ, CPCN, Chinadaas, and GRG Wuzhou have further expanded our industrial ecosystem. These initiatives are supported by a sophisticated post-investment management and risk control system, which ensures synergy realization and collaborative value creation. The Company has established a proven investment methodology covering the pre-investment, execution, and post-investment stages. With competitive strengths in client acquisition, R&D, and market presence—particularly in artificial intelligence and the digital economy—we are well-positioned to continue executing value-accretive M&A activities. Our strong cash flow and ample monetary reserves provide robust financial backing for future investment opportunities.