Summary of Baifang Co., Ltd. Conference Call Company Overview - Baifang Co., Ltd. specializes in the electric bicycle industry, primarily selling battery, motor, and electronic control systems. The company generates approximately 70% to 80% of its revenue from the European market, with the remainder from domestic and U.S. markets [3][4]. Core Insights and Arguments - **Market Volatility and Performance**: Since its IPO in 2019, Baifang has experienced significant volatility, particularly during the COVID-19 pandemic when demand for short-distance travel surged in Europe, leading to substantial growth in performance [4]. - **Inventory Challenges**: The company faced inventory accumulation in 2021-2022, which has depleted future demand, resulting in a projected annual sales volume of around 1 million units for 2023-2024 [4][5]. - **Response to Order Reductions**: To counteract reduced orders from existing customers, Baifang developed integrated wheel motor business to maintain employment and supported 2,000 dealers in Europe to enhance after-sales service, thereby attracting new customers [4][6]. - **Quality Improvement Initiatives**: Baifang established a research and development center in Suzhou and acquired testing equipment to improve product quality and reliability, which helped regain some old customers and attract new ones [4][7]. - **Future Demand Recovery**: The electric bicycle industry is expected to undergo a replenishment cycle, with inventory levels of old customers dropping to low points, suggesting a potential increase in demand starting in the second half of 2025 [4][9]. - **Revenue and Profit Outlook**: Baifang's revenue and profit previously reached approximately 3 billion and 600 million RMB, respectively. However, due to fixed asset depreciation and losses from integrated wheel motors, profits are expected to stabilize at around 400 to 500 million RMB [4][13]. - **Current Order Visibility**: The company currently has low order visibility, with a weak recovery state. It is anticipated that by mid-2025, old customer inventory will be fully digested, leading to a clearer recovery trend in the second half of the year [4][14]. Additional Important Insights - **Sales Performance in 2021-2022**: Sales volume increased significantly during these years, with motor sales rising from approximately 1 million units pre-pandemic to 2.12 million in 2021 and 1.64 million in 2022, leading to a total inventory depletion of about 1.7 to 1.8 million units [5]. - **Industry Inventory Dynamics**: The electric bicycle industry has experienced cycles of inventory accumulation and depletion, with major Taiwanese brands expected to complete inventory clearance by mid-2025 [9]. - **Growth Potential in Europe**: The electric bicycle market in Europe is characterized by growth potential, with a current penetration rate of about 29%. The market is expected to benefit from economic recovery and infrastructure plans, potentially increasing penetration to 70%-80% in the coming years [11][12]. - **Impact of Economic Recovery**: The recovery of the European economy is expected to positively influence the electric bicycle industry, with a potential return to 2 million units in sales volume if old customer orders return alongside new customer acquisitions [12][13]. - **Future Revenue and Profit Expectations**: Baifang is projected to experience a recovery in the coming years, driven by the return of old customers and the acquisition of new ones, which could enhance market share [18].

Investment Rating - The investment rating for the company is "Outperform the Market" [3] Core Views - The company is a leading manufacturer of electric bicycle motors and related electrical systems, with a strong capability in providing complete solutions for various types of electric bicycles [9] - The company is expected to face a decline in profit for 2024 due to geopolitical conflicts and inflation affecting overseas demand, with a projected net profit of 50-65 million yuan, a year-on-year decrease of 49.16%-60.89% [9] - Despite short-term challenges, the electric bicycle market is expected to recover in the long term, particularly in the U.S. where government incentives are likely to stimulate growth [9] - The company is committed to market responsiveness and continuous product innovation, launching new technologies and products to enhance user experience [9] - Profit forecasts indicate a recovery in net profit for 2025, with an expected increase of 97.8% year-on-year [9] Financial Data and Forecasts - Revenue for 2023 is projected at 1.648 billion yuan, with a decline of 42.2% year-on-year, followed by a recovery to 1.539 billion yuan in 2025 [8][12] - Net profit is expected to be 128 million yuan in 2023, dropping to 58 million yuan in 2024, and recovering to 115 million yuan in 2025 [8][12] - The company’s gross margin is forecasted to improve from 26.1% in 2024 to 30.8% in 2026 [12][13] - The price-to-earnings (P/E) ratio for 2024 and 2025 is projected at 126.3 and 63.9 respectively, while the price-to-book (P/B) ratio is expected to be 2.59 and 2.55 [9][12] Business Segments - Electric bicycle motor sales are expected to decline by 45.66% in 2023 but recover with a growth rate of 30.63% in 2025 [12] - The integrated wheel motor segment is projected to remain stable with a slight decline of 2.15% annually [12] - The battery segment is expected to see a recovery with a growth rate of 20% in 2025 [12]

Group 1 - The stock of Bafang shares (603489) increased by 4.03% with a turnover rate of 7.67% and a trading volume of 581 million yuan, showing a volatility of 15.66% [1] - Institutional investors net bought 59.81 million yuan, while the Shanghai Stock Connect saw a net purchase of 725,600 yuan [1] - The top five trading departments had a total transaction of 160 million yuan, with a net purchase of 68.14 million yuan [1] Group 2 - The latest margin trading data shows a total margin balance of 96.89 million yuan, with a financing balance of 96.40 million yuan and a securities lending balance of 483,900 yuan [2] - In the last five days, the financing balance increased by 8.08 million yuan, representing a growth of 9.15% [2] - The company reported a revenue of 1.013 billion yuan for the first three quarters, a year-on-year decrease of 24.91%, and a net profit of 51.26 million yuan, down 57.47% year-on-year [2]

证券代码：603489 证券简称：八方股份 公告编号：2025-002 八方电气（苏州）股份有限公司 关于全资子公司投资设立荷兰全资公司的进展公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 八方电气（苏州）股份有限公司（以下简称"公司"）于 2024 年 12 月 11 日召开第三届董事会第七次会议，审议通过了《关于全资 子公司拟投资设立全资公司的议案》，同意公司全资子公司 Bafang Electric Motor Science Technology B.V.（八方荷兰）以自有资金 30 万欧元在荷兰投资设立全资公司，主要从事电助力自行车驱动系 统的生产、销售、贸易等业务。 近日，公司获悉上述新设公司已完成注册手续，现将主要信息公 告如下： 注册资本：30 万欧元 业务活动：测量、测试、导航和控制仪器的制造；测量和控制设 备的批发（具体信息参阅荷兰语摘录） 股东信息：Bafang Electric Motor Science Technology B.V. 1 持有 100% 法定代表人：王英喆 特此公告。 八 ...

证券代码：603489 证券简称：八方股份 公告编号：2025-003 八方电气（苏州）股份有限公司 有效期：三年 根据《中华人民共和国企业所得税法》及国家对于高新技术企业 税收优惠的相关规定，八方新能源自通过高新技术企业认定起连续三 年内可享受国家关于高新技术企业的相关优惠政策，按 15%的税率缴 纳企业所得税。 特此公告。 八方电气（苏州）股份有限公司董事会 2025 年 3 月 7 日 关于全资子公司通过高新技术企业认定的公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 八方电气（苏州）股份有限公司全资子公司八方新能源（苏州） 有限公司（以下简称"八方新能源"）于近日取得江苏省科学技术厅、 江苏省财政厅、国家税务总局江苏省税务局联合颁发的《高新技术企 业证书》，具体信息如下： 企业名称：八方新能源（苏州）有限公司 证书编号：GR202432015470 发证时间：2024 年 12 月 16 日 1 ...

Financial Performance Forecast - The company expects a net profit attributable to shareholders for 2024 to be between 50 million and 65 million yuan, a decrease of 62.86% to 60.89% compared to the previous year[3] - The net profit after deducting non-recurring gains and losses is projected to be between 30 million and 45 million yuan, representing a decline of 57.93% to 71.95% year-on-year[5] - The previous year's net profit attributable to shareholders was 127.86 million yuan, with a total profit of 141.24 million yuan[6] Performance Decline Factors - The decline in performance is primarily attributed to geopolitical conflicts, inflation, and insufficient demand in overseas end markets[7] Forecast Data Disclaimer - The company has indicated that the forecast data is preliminary and subject to final audited results in the 2024 annual report[9]

Investment Rating - The report assigns an "Accumulate" rating for the company, indicating an expectation of a relative performance improvement of over 5% compared to the benchmark in the next six months [6][10]. Core Views - The company is the largest electric bicycle motor supplier in China, with a mature global layout focused on the European and American markets. However, its performance is currently under pressure due to high inventory levels in distribution channels and sluggish demand in key markets like Germany and the Netherlands [9][10]. - The report highlights that while short-term challenges exist, the long-term market potential remains significant due to low penetration rates of electric bicycles in Europe and the U.S. The company is actively participating in international exhibitions and launching mature solutions to address market needs [9][10]. Financial Summary - For the first three quarters of 2024, the company reported revenue of 1.01 billion yuan, a year-on-year decrease of 24.9%, and a net profit attributable to shareholders of 50 million yuan, down 57.5% year-on-year. The gross margin was 25.6%, a decline of 1.7 percentage points year-on-year [9]. - The report provides earnings forecasts for 2024-2026, estimating net profits of 70 million yuan, 94 million yuan, and 123 million yuan, respectively, with corresponding P/E ratios of 80x, 60x, and 45x [10]. - The company's cash flow from operating activities for the first three quarters of 2024 was 5 million yuan, a significant decrease of 88.8% year-on-year, indicating a need for improvement in cash flow management [9][10].

证券代码：603489 证券简称：八方股份 公告编号：2024-053 八方电气（苏州）股份有限公司 第三届监事会第八次会议决议公告 本公司监事会及全体监事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担个别及连带责任。 鉴于冯华先生已经公司 2024 年第一次临时股东大会选举成为第 三届监事会成员，根据《公司法》《公司章程》的有关规定，全体监 事选举冯华先生为公司第三届监事会主席，任期与本届监事会任期一 致。冯华先生简历详见公司于 2024 年 12 月 12 日披露的《关于监事 退休辞职暨提名第三届监事会非职工代表监事候选人的公告》 （2024-050）。 表决结果：同意 3 票；反对 0 票；弃权 0 票。 - 1 - 一、监事会会议召开情况 八方电气（苏州）股份有限公司（以下简称"公司"）第三届监 事会第八次会议通知于 2024 年 12 月 25 日以电子邮件方式发出，并 于 2024 年 12 月 27 日在公司会议室以现场方式召开。本次会议应到 监事 3 名，实到监事 3 名，全体监事推举冯华先生主持本次会议。本 次会议的召集、召开及表决程序符合 ...

致：八方电气（苏州）股份有限公司 国浩律师（上海）事务所 法律意见书 国浩律师（上海）事务所 关于八方电气（苏州）股份有限公司 2024 年第一次临时股东大会的法律意见书 八方电气（苏州）股份有限公司（以下简称"公司"）2024 年第一次临时 股东大会于 2024 年 12 月 27 日在江苏省苏州市工业园区东堰里路 6 号八方电气 （苏州）股份有限公司召开。国浩律师（上海）事务所（以下简称"本所"）接 受公司委托，指派经办律师出席并见证本次股东大会。 本所律师遵照《律师事务所从事证券法律业务管理办法》的有关执业要求， 根据《中华人民共和国证券法》《中华人民共和国公司法》（以下简称《公司法》）、 中国证券监督管理委员会《上市公司股东大会规则》等法律、法规及规范性文件 和《八方电气（苏州）股份有限公司章程》（以下简称《公司章程》）出具本法 律意见书。 本所律师系根据对事实的了解和对法律的理解，在对所有相关文件、资料和 信息进行核查判断的基础上，依法对本次股东大会有关事项发表法律意见。本所 律师同意公司将本法律意见书作为本次股东大会的必备文件公告。本所律师保证 本法律意见书不存在虚假、严重误导性陈述及重大遗漏，并 ...

证券代码：603489 证券简称：八方股份 公告编号：2024-052 八方电气（苏州）股份有限公司 2024 年第一次临时股东大会决议公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈 述或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 重要内容提示： 本次会议是否有否决议案：无 一、 会议召开和出席情况 | 1、出席会议的股东和代理人人数 | 131 | | --- | --- | | 2、出席会议的股东所持有表决权的股份总数（股） | 114,098,251 | | 3、出席会议的股东所持有表决权股份数占公司有表决权股 | 48.5497 | | 份总数的比例（%） | | (四) 表决方式是否符合《公司法》及《公司章程》的规定，大会主 持情况等。 本次股东大会由公司董事会召集，董事长王清华先生主持。会议 (一) 股东大会召开的时间：2024 年 12 月 27 日 (二) 股东大会召开的地点：江苏省苏州市工业园区东堰里路 6 号八 方电气（苏州）股份有限公司 (三) 出席会议的普通股股东和恢复表决权的优先股股东及其持有 股份情况： 采用现场投票与网络投票相结合的表决方 ...