Economic News - The Ministry of Culture and Tourism plans to launch a three-year action plan to boost cultural and tourism consumption, with over 330 million yuan in subsidies [2] - As of the end of August, China's electric vehicle charging infrastructure reached 17.348 million, a 53.5% increase year-on-year [2] - The Federal Reserve lowered the federal funds rate target range by 25 basis points to 4.00%-4.25%, marking its first rate cut since December 2024 [2] - The 12th Beijing Xiangshan Forum opened with over 1,800 participants from more than 100 countries and organizations [2] - Japan's government initiated a national AI strategy to become the most AI-friendly country globally [2] - The 9th China (Tianjin) Nucleic Acid Drug Conference was held, with significant projects signed, focusing on nucleic acid drug development [2] - BP plans to invest over £3.6 billion (approximately $5 billion) annually in the U.S. over the next five years [2] - The People's Bank of China conducted a 487 billion yuan reverse repurchase operation, with a net injection of 195 billion yuan [2] - The People's Bank of China will issue a 600 billion yuan central bank bill with a maturity of six months [2] Key Company Information - Shanghai Construction Group reported that its gold business revenue is less than 0.5% of total revenue, with minimal impact on operations [5] - Guangji Pharmaceutical received approval for the re-registration of its chemical raw material drug Vitamin B6 [5] - CATL stated that sodium-ion batteries have lower energy density than lithium-ion batteries but offer better low-temperature performance and safety [5] - Jitu Express announced a share buyback plan for up to 10% of its B shares, citing undervaluation [5] - New China Life Insurance reported a cumulative premium income of 158.086 billion yuan from January to August 2025, a 21% year-on-year increase [5] Industry Analysis - In August, domestic airlines' capacity increased by approximately 1.7% year-on-year, with a notable improvement in passenger load factor [7] - The overall passenger load factor for listed airlines improved by 0.9 percentage points year-on-year and 3.3 percentage points month-on-month in August [7] - The international route capacity for listed airlines increased by 14.6% year-on-year, with a 2.8 percentage point month-on-month improvement in load factor [9] - The release of the "Self-Discipline Convention for Air Passenger Transport" in August is expected to help stabilize the industry and improve profitability [10] - The domestic automotive market saw a production and sales increase of 8.7% and 10.1% respectively in August, with significant growth in new energy vehicles [12] - New energy vehicle sales accounted for 52.1% of total domestic vehicle sales in August, with a year-on-year increase of 18.3% [13] - The export of new energy vehicles showed strong performance, with a 19.6% year-on-year increase in August [14] - The automotive industry is experiencing a shift towards electrification and intelligent technology, with domestic brands gaining market share [16][17]

Group 1 - The automotive thermal management sector experienced significant gains on September 17, with notable increases in stock prices [1] - Zhongshi Technology saw a rise of 16.88%, while Kailong High-Tech increased by 15.54% [1] - New Coordinates rose by 10.0%, and other companies like Yinlun Co., Feirongda, and Sanhua Intelligent Control all saw increases exceeding 5% [1]

Group 1 - The Suzhou Industrial Park has signed a cooperation memorandum with Nexteer Automotive (China) to invest 1 billion RMB in establishing an Asia-Pacific headquarters, R&D center, and smart manufacturing base, focusing on new energy vehicle steering systems and autonomous driving technology, expected to generate an annual output value exceeding 10 billion RMB post-2026 [1] - Bosch, the world's largest automotive technology supplier, has also signed a memorandum with the Suzhou Industrial Park to invest 10 billion RMB over the next five years, collaborating on intelligent driving assistance and smart cockpit technologies [1] - The automotive industry is a core component of high-end equipment manufacturing and plays a crucial role in promoting high-quality development in manufacturing, with significant foreign investment indicating the strong appeal of the Suzhou Industrial Park in the new energy and intelligent connected vehicle sectors [1] Group 2 - The Suzhou Industrial Park has attracted major foreign companies such as Bosch, Aptiv, BorgWarner, and TE Connectivity, while also nurturing innovative domestic firms like Zhixing Technology and Haige Electric Control, covering various fields including chassis electronic systems and electric vehicle controllers [2] - The park has established a "vehicle-road-cloud integration" development system, deploying 1,300 road testing facilities covering 114 kilometers, and creating a regional intelligent connected vehicle cloud control platform [2] - The automotive industry chain in the park is expected to generate over 140 billion RMB in revenue in 2024, with 140+ enterprises and 68 high-tech companies contributing to a leading automotive parts and intelligent driving industry cluster [2] Group 3 - Domestic automotive brands are also establishing a presence in the park, with Great Wall Motors launching an intelligent platform R&D center, focusing on smart driving and cockpit technologies [3] - Local innovative companies are expanding internationally, with Zhixing Technology establishing a joint venture in Malaysia and Jiushi Intelligent partnering with Emirates Post for L4 autonomous delivery services [3] - The park aims to leverage the automotive industry's advantages to enhance collaboration with integrated circuits and robotics, driving the entire industry towards high-end development [3]

Core Insights - The Suzhou Industrial Park has signed a memorandum of cooperation with Nexteer Automotive (China) to invest 1 billion RMB in establishing an Asia-Pacific headquarters, R&D center, and smart manufacturing base, focusing on electric vehicle steering systems and autonomous driving technology, expected to generate an annual output value exceeding 10 billion RMB post-2026 [1] - Bosch, the world's largest automotive technology supplier, has also signed a memorandum with the Suzhou Industrial Park to invest 10 billion RMB over the next five years in smart driving assistance and smart cockpit fields, aiming to foster key technological innovations and industrialization [1] - The automotive industry is a core component of high-end equipment manufacturing and plays a crucial role in promoting high-quality development in manufacturing, with significant foreign investment indicating the strong appeal of the Suzhou Industrial Park in the electric and intelligent connected vehicle sectors [1] Industry Developments - The Suzhou Industrial Park is accelerating the transformation and upgrading of the automotive industry towards electrification, intelligence, and connectivity, establishing a comprehensive industrial chain covering new energy vehicles, core components, and intelligent vehicle networking [2] - The park has attracted major foreign companies such as Bosch, Aptiv, BorgWarner, and TE Connectivity, while also nurturing innovative domestic enterprises like Zhixing Technology, Haige Electric Control, and Zhilv Technology, focusing on various fields including chassis electronic systems and electric vehicle controllers [2] - The park has developed a "vehicle-road-cloud integration" system, deploying 1,300 road testing facilities covering 114 kilometers, and creating a regional intelligent connected vehicle cloud control platform for data sharing and regulatory functions [2] Local Innovations - Domestic automotive brands are also establishing a presence in the Suzhou Industrial Park, with Great Wall Motors launching an intelligent platform R&D center focused on smart driving and intelligent cockpit technologies [3] - Local innovative companies are expanding internationally, with Zhixing Technology establishing a joint venture in Malaysia and Jiushi Intelligent partnering with Emirates Post to provide L4-level autonomous delivery services [3] - The park aims to leverage the automotive industry's advantages in supply scenarios and production services, enhancing collaboration with industries like integrated circuits and robotics to drive high-end development across the entire industry [3]

Group 1 - The core viewpoint of the news is that Xincoord Technology Co., Ltd. has seen a stock price increase of 5.06%, reaching 66.28 CNY per share, with a total market capitalization of 9.046 billion CNY [1] - The company, established on July 31, 2002, specializes in the research, production, and sales of precision cold-forged components, with its main revenue sources being valve drive precision cold-forged components (76.09%), valve group precision cold-forged components (11.19%), and others [1] - The trading volume for the stock was 178 million CNY, with a turnover rate of 2.03% [1] Group 2 - Among the top ten circulating shareholders of Xincoord, Yongying Fund's advanced manufacturing mixed fund (018124) entered the list in the second quarter, holding 4.0337 million shares, which is 2.99% of the circulating shares [2] - The fund has achieved a year-to-date return of 79.86%, ranking 104 out of 8175 in its category, and a one-year return of 203.68%, ranking 16 out of 7982 [2] - The fund was established on May 4, 2023, with a current scale of 2.976 billion CNY [2]

Investment Rating - The report maintains a "Recommended" rating for the company [5][11]. Core Insights - The company has demonstrated its research and development capabilities through the recent publication of several invention patents, including innovative manufacturing methods for screw nuts [1][2]. - The new rolling forming process for screw nuts is expected to enhance efficiency and precision, addressing challenges in the production of precision components for robotics [1][2]. - The company is expanding its product offerings into high-precision components for various applications, including automotive precision solenoids and electric drive systems, which positions it well for future growth [3][11]. Financial Forecast - The company is projected to achieve a net profit of 260.59 million yuan in 2025, with an expected growth rate of 23.15% [12]. - Revenue is forecasted to grow from 583.30 million yuan in 2023 to 1,115.61 million yuan by 2027, reflecting a compound annual growth rate of approximately 17.83% [12]. - The earnings per share (EPS) is expected to increase from 1.35 yuan in 2023 to 2.68 yuan in 2027, indicating a positive trend in profitability [12].

Core Points - The Shanghai Cooperation Organization (SCO) is marking its development with two significant timelines: 10 years (2026-2035) and 80 years (1945-2025) [3][7] - The SCO has evolved from 6 founding member countries to 26 member states, covering Asia, Europe, and Africa, with a combined economic output nearing $30 trillion [3][4] - The SCO's future development strategy emphasizes mutual cooperation and contributions to a multipolar world [3][4] Group 1: 10-Year Development Strategy - The SCO approved a strategic document outlining its development for the next decade, focusing on mutual benefit and cooperation [3] - The organization aims to build a community of shared destiny among its members, promoting peace, development, and justice [4][6] - The SCO's economic collaboration spans over 50 fields, enhancing its international influence [3][4] Group 2: Historical Context and Global Governance - The SCO commemorates the 80th anniversary of the victory in World War II and the establishment of the United Nations, emphasizing the importance of historical lessons [7][8] - The organization calls for adherence to a correct view of history and the maintenance of an international system centered around the UN [7][8] - The SCO aims to play a leading role in global governance, advocating for fairness and justice in international relations [8]

Summary of Conference Call for New Coordinates Company Overview - New Coordinates has achieved its highest quarterly revenue ever in the first half of 2025, with Q2 revenue exceeding 200 million yuan, showing significant year-on-year and quarter-on-quarter growth [3][22] - The company’s net profit reached a record high of 77 million yuan, with a healthy gross margin maintained [3] Industry and Market Dynamics - The overseas revenue of New Coordinates has surpassed domestic revenue for the first time, accounting for over 51% of total revenue, primarily due to the efforts of overseas subsidiaries since 2022 [2][3] - The commercial vehicle and commercial engine business segments have increased in proportion, indicating an optimization of the company’s business structure [2] Customer Structure and Market Share - BYD still accounts for over 10% of New Coordinates' revenue, although this has slightly decreased; Volkswagen accounts for approximately 40%-50% globally, with foreign markets making up two-thirds of this [2][4] - The commercial vehicle segment has seen nearly 20% growth, with revenue exceeding 70 million yuan, mainly driven by overseas markets and clients such as MAN and Caterpillar [4][10] - The Mexican subsidiary has shown significant revenue growth, enhancing profitability through scale effects and automation improvements [16] Product Development and R&D - New Coordinates established a dedicated subsidiary for four-cylinder engine research and development with a registered capital of 500 million yuan, aiming to enter small-scale production in the second half of the year [6][30] - The company has made progress in developing new products, particularly in the valve train and precision components, with the "other" category (mainly high-pressure pumps and parts) showing rapid growth [8][9] Future Outlook and Seasonal Factors - The company anticipates a slight slowdown in performance in Q3 and Q4 due to seasonal factors, with new projects from Chery, Great Wall, and others expected to gradually contribute to growth [7][22] - The heat management system's stainless steel component business is expected to ramp up in the second half of the year [7] Financial Performance and Growth Projections - The revenue growth rate for the first half of 2025 was around 20%, with expectations for the full year to be around 10% [22][24] - Traditional business is projected to maintain approximately 10% growth in the coming years, supported by ongoing projects and customer orders [24] Strategic Initiatives and Competitive Position - New Coordinates is focusing on high-performance alloy steel materials instead of traditional carbon steel to meet the automotive industry's stringent quality requirements [21] - The company has secured a project with Rolls-Royce, enhancing its brand effect and potential for high-end customer orders [26][27] Challenges and Risks - The company faces challenges in maintaining growth due to potential slowdowns in key clients like BYD and seasonal impacts on performance [22][23] - The commercial vehicle market remains a significant growth area, but the company’s market share in this segment is still relatively low compared to passenger vehicles [12][13] Conclusion - New Coordinates is positioned for growth with a strong focus on overseas markets and new product development, although it must navigate seasonal fluctuations and competitive pressures in the automotive industry [2][7][12]

Core Viewpoint - The company has demonstrated significant growth in revenue and profit, driven by its global manufacturing and sales service system, with notable increases in overseas markets, particularly in Europe and Mexico [2][8]. Group 1: Financial Performance - In the first half of 2025, the company's main revenue reached 390 million yuan, an increase of 18.85% year-on-year, while the net profit attributable to shareholders was 142 million yuan, up 27.42% year-on-year [8]. - The second quarter of 2025 saw a main revenue of 211 million yuan, reflecting a year-on-year increase of 13.28%, and a net profit of approximately 75 million yuan, which is a 19.55% increase year-on-year [8]. - The company's gross profit margin stood at 53.91%, with a debt ratio of 13.85% [8]. Group 2: Market and Customer Insights - The company has over 90% of its customers in the automotive sector, including major manufacturers such as SAIC Volkswagen, FAW Volkswagen, and BYD [5]. - The company has established wholly-owned subsidiaries in the Czech Republic and Mexico to better navigate international market challenges and maintain effective communication with clients regarding tariff policy changes [3]. Group 3: Strategic Developments - The company has made advancements in its subsidiary, JiuYueBa Transmission, focusing on high-end CNC machine tools and intelligent manufacturing solutions, although the products are still in the development stage [6]. - New patented technologies have been developed, including environmentally friendly processes for surface treatment of stainless steel wire, which enhance production efficiency and reduce environmental impact [7]. Group 4: Future Outlook - The company has set ambitious revenue and profit targets for 2025, as outlined in its equity incentive plan, indicating a strong commitment from management and employees to achieve these goals [2]. - Recent institutional ratings show a positive outlook, with four institutions providing ratings, including two buy and two hold recommendations, and a target average price of 22.96 yuan [8][9].

Group 1: Financial Performance - In H1 2025, the company achieved revenue of 390 million yuan, a year-on-year increase of 18.9%, and a net profit attributable to shareholders of 140 million yuan, up 27.4% year-on-year [1] - For Q2 2025, the company reported revenue of 210 million yuan, a year-on-year increase of 13.3% and a quarter-on-quarter increase of 17.9%, with a net profit of 80 million yuan, reflecting a year-on-year increase of 19.6% and a quarter-on-quarter increase of 12.3% [1] - The company declared a cash dividend of 40 million yuan (before tax) in H1 2025, with a dividend payout ratio of 28.6%, an increase of 4.6 percentage points year-on-year [1] Group 2: Profitability and Cost Management - The company's gross margin for H1 2025 was 53.9%, an increase of 1.4 percentage points year-on-year, while the net margin was 37.3%, up 2.4 percentage points year-on-year [1] - In Q2 2025, the gross margin was 54.1%, a year-on-year increase of 0.8 percentage points and a quarter-on-quarter increase of 0.5 percentage points, with a net margin of 36.7%, reflecting a year-on-year increase of 1.8 percentage points but a quarter-on-quarter decrease of 1.3 percentage points [1] - The expense ratios for sales, management, and R&D in Q2 2025 were 1.0%, 9.7%, and 4.2%, showing a year-on-year change of -1.5 percentage points, +0.9 percentage points, and -0.4 percentage points respectively, with the quarter-on-quarter changes remaining stable or decreasing [1] Group 3: Business Growth and Market Expansion - The company's valve timing group business saw rapid growth, with revenue from precision components reaching 300 million yuan, a year-on-year increase of 23.6% [2] - In H1 2025, overseas revenue was 200 million yuan, a year-on-year increase of 30.7%, accounting for 51.4% of total revenue, an increase of 4.7 percentage points year-on-year [2] - The company successfully opened new projects with luxury car brand Rolls-Royce, expanding its presence in the high-end overseas market [2] Group 4: Product Development and Innovation - The company is focusing on product development in the screw rod sector, leveraging advantages in cold forming technology, mold design, and equipment automation [3] - The company is diversifying raw materials for cold forming from primarily steel to include aluminum, copper, titanium alloys, and stainless steel, and is expanding applications in various precision components [3] - A new subsidiary, JiuYueBa Transmission Holdings, has been established to focus on the R&D and production of screw rod products, enhancing product performance and manufacturing processes [3] Group 5: Profit Forecast and Investment Outlook - The company forecasts net profits attributable to shareholders of 290 million yuan, 380 million yuan, and 490 million yuan for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 30, 23, and 18 times [3]