Nanjing CIGU Technology Corp. Ltd. A

Cigu Technology disclosed its reply to the Shanghai Stock Exchange's inquiry letter regarding its 2025 annual report, explaining the reasonableness of its performance decline and the counter-trend growth in other business segments. The company's 2025 revenue was 368 million yuan, down 23.05 percent year-on-year, and net profit attributable to the parent company plunged 80.68 percent, mainly due to a sharp contraction in magnetic levitation blower revenue, increased research and development and selling expenses, and reduced government subsidies. Competition in the blower market has intensified, with downstream municipal project funding and construction timelines being delayed, and product selling prices continuing to fall. Air compressors achieved growth through distribution channels, and the contrasting performance of these two product categories led to a significant shift in revenue structure. After vacuum pumps surged in 2024 on the back of large overseas orders, overseas expansion slowed in 2025 and the focus shifted to lower-power models, causing revenue to drop sharply. In other business segments, as existing equipment gradually exited warranty periods over the years, demand for spare parts, maintenance, and extended warranties continued to be released, driving revenue higher year by year and forming an inverse trend with the main equipment business. The loss widened in the first quarter of 2026 due to significant new depreciation from the transfer of fundraised projects to fixed assets, coupled with the new plant's capacity still being in the ramp-up phase.