Research Express | Rilian Technology Receives Research from Over 70 Institutions Including E Fund 2025 Non-GAAP Net Profit Expected to Increase 50.85% Acquisition Target Projected to Contribute Net Profit of 40-50 Million in 2026

Basic Research Overview

Rilian Technology Group Co., Ltd. (hereinafter referred to as “Rilian Technology”) recently received concentrated visits from multiple institutions. This research activity attracted over 70 institutions, including E Fund, Bosera Fund, Bank of Communications Schroder Fund, GF Fund, Huaxia Fund, Guotai Fund, China Asset Management, and others, covering public funds, private equity, insurance asset management, securities firms, and foreign institutions.

Participants include leading public funds such as E Fund, Bosera Fund, Bank of Communications Schroder Fund, GF Fund, Huaxia Fund, Guotai Fund, China Asset Management, as well as well-known private equity firms like Chongyang Investment and Tanshuiquan, insurance asset managers like China Life Asset Management and Pacific Asset Management, and foreign institutions such as UBS and NIKKO ASSET MANAGEMENT ASIA LIMITED. Additionally, there are multiple securities firms including Guojin Securities, CITIC Securities, and some individual investors.

The company’s reception team was led by Director and Board Secretary Xin Chen, Investor Relations Manager Huang Bo, and Securities Affairs Representative Bao Fanrong.

2025 Financial Performance: Revenue and Profit Double Growth, Cash Flow Significantly Improved

During the research, the company first introduced its financial situation for 2025. According to the performance brief disclosed at the end of February, the company achieved operating revenue of 1.071 billion yuan, a year-on-year increase of 44.88%; net profit attributable to parent company owners was 175 million yuan, up 21.81%; net profit excluding non-recurring gains and losses was 145 million yuan, a substantial increase of 50.85%; and net cash flow from operating activities was 191 million yuan, a surge of 509.37%.

The performance growth was mainly attributed to three factors: first, breakthroughs in core technology, with industrial X-ray sources covering the full spectrum, large-scale shipments of micro-focus X-ray sources, industrialization of nano-level tube opening and high-power X-ray sources, and progress in AI intelligent detection software and 3D/CT inspection technology; second, effective deployment in downstream emerging fields, with products covering integrated circuits, electronic manufacturing, new energy batteries, casting and welding materials testing; third, advancing globalization efforts, strengthening domestic and international R&D, production capacity, and marketing networks, thereby enhancing product strength, channel strength, and brand influence.

2026 Downstream Industry Outlook: Multiple Sectors Continue High Prosperity

The company analyzed the outlook for downstream application fields in 2026:

Integrated Circuits and Electronic Manufacturing: Capacity expansion in mature processes continues, with AI computing power demand triggering a “super cycle” in storage chips, and the global storage industry remaining highly prosperous; advanced packaging driven by AI servers and high-bandwidth memory needs, with strong market demand. In electronic manufacturing, high-multilayer PCBs benefit from AI computing, automotive electronics, and communication data center demands, expected to maintain high prosperity.

New Energy Batteries: Multiple securities firms forecast that China’s total lithium battery shipments will increase by about 30% in 2026, with energy storage batteries entering a explosive growth phase. Industry chain expansion and order locking confirm high industry prosperity.

Casting, Welding, and Material Testing: The trend of lightweight vehicles continues, with strong testing demand from military, aerospace, and other industries, making industry prospects promising.

Food Foreign Object Detection: As public concern for food safety and quality rises, this sector is expected to become a long-term growth track.

The company stated that under the industry prosperity background, its capabilities in advanced packaging, storage chips, high-multilayer PCBs, liquid-cooled plates, solid-state batteries, aerospace, and other mid-to-high-end markets for import substitution continue to strengthen. Domestic market share is increasing, complemented by external acquisitions, with overall competitiveness accelerating.

AI Deep Empowerment of Inspection Business: Launch of Industry’s First Industrial X-ray Imaging AI Vertical Large Model

Regarding the integration of AI technology into inspection services, the company explained that traditional manual recognition struggles to meet large-scale production demands in speed, accuracy, and precision, while AI is deeply empowering manufacturing. Centered on the “data-algorithm-computing power” framework, the company established Rilian Research Institute and an AI R&D center, continuously iterating industrial X-ray imaging detection AI large models.

Currently, the company has released the industry’s first industrial X-ray imaging AI vertical large model, trained on tens of millions of data points, capable of automatically identifying microcracks, tiny pores, delamination, and other defects in aerospace components, eliminating inconsistencies in manual judgment, significantly reducing missed detections, and advancing the detection field toward an era of “all-domain intelligent perception.”

Clear Performance Contribution from M&A Targets; 2026 Expected to Add 40-50 Million Yuan in Net Profit

On the performance impact of 2025 M&A targets, the company disclosed that the investments in U.S. Innovation Electronics, the establishment of a joint venture, and acquisitions of Zhuhai Jiuyuan and Singapore SSTI in 2025 have been confirmed for consolidation. According to performance commitments, these targets are expected to contribute 100-200 million yuan in revenue and 40-50 million yuan in net profit in 2026, significantly boosting the company’s performance. If new targets are acquired and completed later, additional performance growth is possible.

In terms of management integration, the company employs full-process M&A management measures to mitigate risks and leverage synergies. For example, Singapore SSTI has enhanced the company’s capabilities in semiconductor lasers, infrared, and electrical testing technologies, with notable domestic market development this year.

2026 M&A Plan: Horizontal Expansion of Testing Technologies and Vertical Deepening of Core Components

The company’s 2026 M&A strategy is clear, adhering to the “horizontal expansion, vertical deepening” approach. Horizontal expansion includes advanced testing technologies such as optical, ultrasonic, magnetic particle, eddy current, energy spectrum, neutron, and quantum detection; vertical deepening focuses on sub-micron and high-power X-ray sources, breaking through key component technologies like magnetrons, RF vacuum tubes, photomultiplier tubes, and detectors. The goal is to build a platform-type enterprise for industrial testing equipment, accelerating performance growth and value expansion.

This research did not involve any major information that should be disclosed.

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