**Overview** Runjian Co., Ltd. (stock code 002929) has recently reported significant developments regarding its business operations. The focus of this report is to highlight the company’s key events, particularly its successful bid for a substantial project with China Mobile Communications Group Guangdong Co., Ltd. for the 2025 to 2026 household connection construction services. This contract is valued at approximately CNY 37.35 million (including tax) and marks a critical milestone for the company in enhancing its market position in the telecommunications infrastructure sector.

**Key Financials** The announced project holds promise for potential revenue growth as it positions Runjian to capitalize on upcoming contracts that could formalize the initial bid amount. While specific revenue from this contract has not yet been realized, the expected service offerings, which include smart management and operational maintenance technology services, are likely to bolster the company's financial performance in future periods.

**Management Commentary** Management has expressed optimism regarding the bid’s implications for Runjian's market status and brand strength. They emphasize that this recognition by a major client, like China Mobile, reinforces their technical capabilities and competitive stance in the market. However, they also acknowledge the uncertainties surrounding the formal signing of contracts as the next critical step in realizing projected revenues.

**Trends and Drivers** The successful bid illustrates a growing trend in the telecommunications sector towards increased investment in smart services and infrastructure development, which Runjian is now poised to leverage. Furthermore, as markets recover post-pandemic, demand for efficient and technologically advanced solutions in communication networks continues to provide organic growth opportunities for companies within this sector.

**Risks and Outlook** Despite the promising developments, there are notable risks that must be considered. The uncertainty in formally securing the contract and the possibility that actual revenues may fall short of initial estimations poses a challenge. Management has committed to maintaining transparency with investors regarding any changes, urging them to remain aware of potential investment risks tied to project completion and revenue confirmation.

**Conclusion** Overall, Runjian Co., Ltd. is demonstrating substantial growth potential through its strategic bid for a major project in the telecommunications sector, highlighting its competitive edge and technical proficiency. However, stakeholders should remain vigilant about contractual uncertainties and the risks of actual financial outcomes deviating from projections as the company navigates the complexities of contract finalization.