On July 14, 2025, the main structural work of our company’s Phase II Noise and Vibration Comprehensive Control R&D and Production Base, located in Dou Dian, Fangshan District, Beijing, was successfully topped out. Representatives from the company’s management team—including President Cao Weidong, Vice President and CFO Li Xiuqing, Vice President and Chief Engineer Shao Bin, and Vice President and Board Secretary Zhang Kan—attended the grand topping-out ceremony. This milestone underscores the company’s continued progress in deepening its dual-core strategic layout centered on the "Beijing-Tianjin-Hebei Region + Pearl River Delta," while reinforcing its commitment to technological innovation and production capacity upgrades.

The project, with a total investment exceeding 200 million yuan, has been steadily advancing since groundbreaking on September 14, 2024—marking its completion today after 304 days. Upholding the rigorous standards of "zero safety incidents and a green-certified construction site," we’ve remained fully committed to driving the project forward with unwavering dedication, showcasing the remarkable "JZYG Speed." This achievement lays a solid foundation for future construction phases and ensures smooth operations once production begins.

High-standard construction: 304 days to create a model "Green-Certified Construction Site"

At the topping-out ceremony, Vice President Li Xiuqing reflected on the project's construction journey. Despite facing extreme cold, scorching heat, and complex construction challenges, our company innovatively adopted a "self-owned team-led construction" model, assembling a dedicated management team that rigorously monitored both quality and progress throughout the entire process. The team successfully overcame numerous technical hurdles in steel structure and prefabricated building construction, achieving precision control down to the millimeter level. Not only did the project earn Beijing’s prestigious "Green Construction Site" certification, but its highly efficient collaboration also earned it the government’s "hands-on, supportive service." The construction of the second-phase base marks the company’s fulfillment of its commitment to shareholders—and, more importantly, serves as a steadfast demonstration of our core corporate values: "innovation-driven and demand-oriented." Once completed, the facility will centrally house R&D testing, intelligent manufacturing, and technology commercialization functions, accelerating the engineering and industrial-scale implementation of acoustic and environmental protection technologies.

Technology-driven: Building Core Competitive Advantages for the Future

As the core engineering project for the company’s IPO fundraising initiative, the Phase II facility carries a critical mission: driving our strategic transformation into the "Industrial AI" sector. Leveraging the company’s deep-rooted R&D expertise—highlighted by 129 patents as of the 2024 annual report, including 33 invention patents—we will focus on our "Railway Acoustic Signature Online Monitoring and Intelligent Operation & Maintenance System" to propel vibration and noise reduction technologies toward a data-driven evolution. Currently, several subsystems have already been successfully deployed in over 20 cities, including Beijing and Zhengzhou, enabling precise diagnosis of rail defects through acoustic sensing, IoT integration, and advanced intelligent algorithms—ultimately helping us significantly reduce overall rail maintenance costs.

Meanwhile, with the mandatory implementation of the "Residential Project Specifications" this May, demand for building sound insulation and low-frequency noise control has surged. Leveraging our early-mover advantage in areas such as noise reduction on TOD integrated developments (e.g., projects in Guangzhou and Beijing) and innovative polyurethane materials, our company’s architectural damping spring isolators—and other related products—are now poised to capture significant new opportunities in the growing civilian market. Moving forward, our second-phase facility will focus intensively on acoustic signature analysis, material innovation, and advanced process optimization, continuously ramping up investments in R&D and technological breakthroughs. We are committed to delivering comprehensive, integrated solutions that combine precise prevention strategies with intelligent operation and maintenance services—tailored specifically for diverse applications like rail transit, building construction, and power plants.

Dual-core layout: North-South collaboration strengthens production capacity advantages

Currently, our company has established an efficient, north-south dual-center structure linking Beijing and Guangdong. This topping-out ceremony further solidified our production capacity strategy:

Northern base centered in Beijing: Leveraging the policy advantages of the Beijing-Tianjin-Hebei region, the focus is on technology R&D and standard-setting. Once the second-phase facility begins production, it will significantly boost the manufacturing capacity of core products.

Southern base centered in Guangdong: Leveraging the region's robust industrial ecosystem in the Guangdong-Hong Kong-Macao Greater Bay Area, we are focusing on scaling up the production of innovative polyurethane materials and expanding into the South China market, thereby fully meeting the strong demand in this dynamic region.

As noted in the company’s annual report, "The dual-core strategy not only effectively reduced logistics costs but also enabled flexible allocation of production capacity." In 2024, the synergy between the company's northern and southern operations was particularly strong, driving revenue to 359 million yuan. Meanwhile, net profit attributable to shareholders surged by 773% year-on-year, and as of the end of 2024, the company had orders on hand totaling 674 million yuan.

Seize the opportunity: Riding the wave of favorable policies to unlock new growth

The newly implemented Noise Pollution Prevention Law has yielded remarkable results over the past three years, with the "Good Housing" standards continuously driving advancements in building noise reduction. Meanwhile, China's 14th Five-Year Plan has further highlighted the immense potential of the steel-spring floating slab market. As the supporting organization for the Ministry of Ecology and Environment's "Engineering Technology Center for Vibration and Noise Control in Urban Rail Transit," our company successfully delivered four comprehensive system solutions and one industry standard in 2024, positioning us as a leader in shaping the future of the industry.

In her closing remarks, Vice President Li Xiuqing looked ahead to the future: "We will leverage our Phase II facility as a new strategic cornerstone, firmly committing ourselves to being 'co-builders of urban development' and 'trailblazers in innovation.'" As the project soon transitions into the MEP installation phase, once fully operational by 2026, our company anticipates a significant boost in R&D efficiency and innovative capabilities—further solidifying our leading position and market presence in the rail transit acoustic and environmental protection sector.

From breaking the monopoly of foreign technology to leading the way in voiceprint-based intelligent diagnostics, JZYG has consistently upheld the determination to "hone a sword for ten years," embedding its deep-rooted scientific research ethos into the fertile ground of industry. The successful topping-out of the second-phase facility not only marks an expansion of physical space but also serves as a solemn declaration of the company’s strategic leap toward a three-dimensional approach—integrating "technology + applications + data." Amidst the global wave of green infrastructure and smart cities, JZYG will continue to drive innovation as its core engine, dedicated to reshaping urban acoustic environments and jointly creating a peaceful, beautiful future for all.