Analysis Report on Commercialization of SUPCON Technology's TPT Large Model and Its Performance

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Based on public information, SUPCON Technology’s

has achieved [1][2]. This milestone marks substantial progress in the company’s strategic transformation from traditional industrial automation to industrial AI.

Time Node	Milestone Event
June 2024	Launched TPT 1.0, the world’s first process industry time-series large model[1]
August 2025	Launched TPT 2.0, added platform-based, self-service capabilities[1]
On the day of TPT 2.0 launch	Cumulative pre-ordering enterprises reached 518, with 112 sets sold[1]
October 2025	Won the bid for Sinopec’s Polyolefin R&D AI Demonstration Project, achieving a breakthrough in core process R&D in the petrochemical sector[1]

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According to the company’s 2025 performance forecast:

Financial Indicator	2025 Forecast	YoY Change
Net Profit Attributable to Parent Companies	RMB 426 million - RMB 524 million	Down 53.07%-61.85%
Non-Recurring Net Profit	RMB 328 million - RMB 403 million	Down 61.17%-68.42%
Revenue Scale	Expected YoY Decline	Weak demand from downstream customers[3][4]

• Slowing macroeconomic growth and weak demand from downstream customers[3][4]
• Year-on-year decrease in bank wealth management and interest income
• Year-on-year increase in exchange losses

Year	Operating Revenue	Net Profit Attributable to Parent Companies	Revenue Growth Rate	Net Profit Growth Rate
2022	RMB 6.624 billion	RMB 798 million	+46.56%	+37.18%
2023	RMB 8.620 billion	RMB 1.102 billion	+30.13%	+38.08%
2024	RMB 9.139 billion	RMB 1.117 billion	+6.02%	+1.38%
2025E	Expected decline	RMB 426-524 million	Decline	Down over 50%[4][5]

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• Traditional Model vs TPT Model:
  • Traditional process expert analysis: Takes 1-2 months
  • TPT automatic decomposition and calculation: Takes only tens of minutes
  • Efficiency improved by over 90%
    [1]

• Practical Application Effects:
  • Groundbreaking applications in chlor-alkali, thermal power, petrochemical and other plants
  • Delivered over 50% efficiency improvement for customers
  • Wanhua Chemical waste liquid treatment: Saves RMB 30 million per year
  • Sinopec Yanshan Branch predictive maintenance: Reduces losses by RMB 120 million per year
  • Holds 42% of domestic APC algorithm patents, with petrochemical equipment operation stability rate reaching 99.2%[2]

SUPCON Technology is promoting a business model transformation

:

• Cumulative signed subscription-based customers:
  938
  (as of end-June 2025)[1]
• 2024 new orders for robotics business:
  RMB 167 million
• 2024 revenue from robotics business:
  RMB 56.01 million
  (from scratch)[2]

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• Vision and Goal:
  Become a global leader in industrial AI with a market value of RMB 1 trillion[1]
• Investment Plan:
  Invest
  RMB 20 billion
  in AI business over the next 4-5 years
• Revenue Targets:
  • AI business: Annual revenue reaches
    RMB 20 billion
  • Robotics business: Annual revenue reaches
    RMB 5 billion
    [1]

Management expects it will take

to become , and is optimistic about the alignment between the strategic transformation period and the “15th Five-Year Plan”[2].

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Phase	Time Expectation	Key Indicators
Bottoming-out Phase	2025-2026	Traditional business stabilizes, AI business proportion increases
Growth Phase	2027-2028	AI business accounts for 30%-35% of revenue, large-scale revenue formed
Realization Phase	After 2029	AI business annual revenue targets RMB 20 billion, net profit margin rebounds

1. Rapid progress in TPT commercialization:
   518 pre-ordering enterprises and 112 sets sold lay a foundation for revenue growth[1]
2. High customer repurchase rate:
   2024 customer repurchase rate reached 91%, forming an ecological closed-loop[2]
3. High technological barriers:
   The industrial track is complex, with high entry barriers and favorable competition pattern
4. Domestic substitution dividend:
   Localization rate of industrial software is only 8.1%, with huge substitution space[2]

1. Traditional business continues to face pressure:
   Weak capital expenditure in downstream industries such as chemical, petrochemical, and energy
2. Profit pressure during investment period:
   RMB 20 billion AI investment will continue to erode profits
3. Macroeconomic uncertainty:
   Industrial automation demand is highly correlated with macroeconomy

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Based on the latest technical indicator analysis[0]:

Indicator	Value	Signal Interpretation
Current Price	$64.32	-
20-Day Moving Average	$53.05	Short-term moving average is above long-term moving average
50-Day Moving Average	$51.43	Medium-term trend is relatively strong
Support Level	$53.05	-
Resistance Level	$65.76	-
Beta	0.38	Low correlation with the broader market
Trend Judgment	Sideways consolidation	No clear directional signal

1. Short-term (2025):
   Performance will remain under pressure, net profit halving is a foregone conclusion, and the RMB 150 million TPT commercialization will hardly fully offset the decline in traditional business.

2. Mid-term (2026-2027):
   With the promotion of TPT 2.0 platform-based services and the increase in subscription customers, AI business revenue is expected to achieve “double-digit or higher growth”[1], and performance is expected to gradually stabilize.

3. Long-term (after 2028):
   If the RMB 20 billion AI investment is converted into product competitiveness as scheduled, coupled with the policy dividends of the “15th Five-Year Plan”, the company is expected to usher in a performance inflection point and realize valuation reshaping from traditional automation to industrial AI.

• Downstream demand falls short of expectations due to prolonged macroeconomic downturn
• Commercialization progress of AI business falls short of expectations
• Long payback period of R&D investment affects cash flow
• Exchange losses caused by exchange rate fluctuations

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[1] Sina Finance - “40 Billion RMB Hangzhou Automation Leader Pushes Forward Industrial Intelligence” (https://finance.sina.com.cn/roll/2026-01-09/doc-inhfsfzv3124368.shtml)

[2] Stock Market Dynamics Analysis Weekly - In-Depth Analysis of SUPCON Technology (https://www.gsdtfx.com/srv/lst)

[3] Eastmoney - “SUPCON Technology: 2025 Net Profit Expected to Drop 53.07%-61.85% YoY” (https://finance.eastmoney.com/a/202601093614407373.html)

[4] Tencent News - “SUPCON Technology Expects 2025 Net Profit to Be Halved YoY to RMB 426-524 Million” (https://news.qq.com/rain/a/20260111A04XA600)

[5] Radar Finance - “SUPCON Technology Expects 2025 Net Profit to Be Halved YoY to RMB 426-524 Million” (https://cj.sina.com.cn/articles/view/7317133861/1b4229a2502001f35i?froms=ggmp)

[6] Jinling API Data[0]