Core Points - The electric motor sector experienced a decline of 0.69% on the previous trading day, with Sanxie Electric leading the drop [1] - The Shanghai Composite Index closed at 3946.74, up 0.18%, while the Shenzhen Component Index closed at 13080.09, unchanged [1] Electric Motor Sector Performance - Huari Co., Ltd. (300626) saw a closing price of 14.68, with an increase of 2.95% and a trading volume of 248,100 shares, totaling 352 million yuan [1] - Jiangte Electric (002176) closed at 12.18, up 2.18%, with a trading volume of 2,262,900 shares, amounting to 2.778 billion yuan [1] - Bafang Electric (603489) closed at 31.26, up 1.43%, with a trading volume of 59,600 shares, totaling 186 million yuan [1] - The largest decline was seen in Sanxie Electric (920100), which closed at 61.92, down 6.65%, with a trading volume of 18,200 shares, totaling 115 million yuan [2] - Other notable declines included Fangzheng Electric (002196) at 13.69, down 5.26%, and Xiangming Intelligent (301226) at 28.72, down 4.87% [2] Capital Flow Analysis - The electric motor sector experienced a net outflow of 70.30 million yuan from institutional investors and 68.36 million yuan from retail investors, while retail investors saw a net inflow of 139 million yuan [2] - Jiangte Electric (002176) had a net inflow of 214 million yuan from institutional investors, while it faced a net outflow of 27.78 million yuan from retail investors [3] - Wolong Electric (600580) had a net inflow of 123 million yuan from institutional investors, with a net outflow of 53.95 million yuan from retail investors [3]

Market Overview - The electric motor sector experienced a decline of 0.87% on the previous trading day, with Bafang Electric leading the drop [1] - The Shanghai Composite Index closed at 3939.81, down 0.81%, while the Shenzhen Component Index closed at 13080.49, down 0.92% [1] Stock Performance - Notable gainers in the electric motor sector included: - Fangzheng Electric, closing at 14.45 with a rise of 5.55% and a trading volume of 1.546 million shares, totaling 2.176 billion yuan [1] - Runse Station, closing at 14.26 with a rise of 3.71% and a trading volume of 232,200 shares, totaling 323 million yuan [1] - Xiangming Intelligent, closing at 30.19 with a rise of 2.58% and a trading volume of 48,400 shares, totaling 147 million yuan [1] - Conversely, Bafang Electric saw a decline of 3.69%, closing at 30.82 with a trading volume of 60,800 shares, totaling 187 million yuan [2] Capital Flow - The electric motor sector saw a net outflow of 367 million yuan from institutional investors, while retail investors contributed a net inflow of 193 million yuan [2] - The capital flow for specific stocks indicated: - Fangzheng Electric had a net inflow of 91.21 million yuan from institutional investors, while retail investors had a net outflow of 34.86 million yuan [3] - Xiangming Intelligent experienced a net inflow of 15.19 million yuan from institutional investors and a net inflow of 15.05 million yuan from retail investors [3] - Bafang Electric had a net outflow of 21.96 million yuan from institutional investors [3]

Core Points - The electric motor sector experienced a decline of 2.03% on the trading day, with Fangzheng Electric leading the drop [1] - The Shanghai Composite Index closed at 3990.49, down 0.97%, while the Shenzhen Component Index closed at 13216.03, down 1.93% [1] Stock Performance - Bafang Co., Ltd. (603489) closed at 31.24, up 3.65% with a trading volume of 65,100 shares and a transaction value of 201 million yuan [1] - Kangping Technology (300907) closed at 32.66, up 1.90% with a trading volume of 26,000 shares and a transaction value of 84.69 million yuan [1] - Huarui Co., Ltd. (300626) closed at 13.15, up 1.47% with a trading volume of 176,600 shares [1] - Tongda Power (002576) closed at 17.93, up 0.50% with a trading volume of 33,200 shares and a transaction value of 59.67 million yuan [1] - Mingzhi Electric (603728) closed at 66.32, up 0.48% with a trading volume of 61,700 shares [1] - Jiangnan Yifan (301023) closed at 40.05, up 0.38% with a trading volume of 12,000 shares and a transaction value of 48.08 million yuan [1] - Huayang Intelligent (301502) closed at 47.90, up 0.23% with a trading volume of 4,544 shares and a transaction value of 21.83 million yuan [1] - Shenli Co., Ltd. (603819) closed at 12.21, up 0.08% with a trading volume of 40,700 shares and a transaction value of 49.83 million yuan [1] - Dibei Electric (603320) closed at 19.40, down 0.05% with a trading volume of 15,500 shares and a transaction value of 30.12 million yuan [1] - China Electric Motor (603988) closed at 26.10, down 0.15% with a trading volume of 46,300 shares and a transaction value of 121 million yuan [1] Capital Flow - The electric motor sector saw a net outflow of 1.037 billion yuan from main funds, while retail investors contributed a net inflow of 966 million yuan [3] - Speculative funds recorded a net inflow of 70.95 million yuan [3]

Core Viewpoint - Bafang Electric (Suzhou) Co., Ltd. has shown a significant increase in stock price and financial performance, indicating potential growth in the electric motor and related systems market. Group 1: Stock Performance - As of November 14, Bafang's stock price increased by 2.02% to 30.75 CNY per share, with a market capitalization of 7.215 billion CNY [1] - Year-to-date, Bafang's stock has risen by 29.64%, with a 0.79% increase over the last five trading days and a 26.75% increase over the last 20 days [1] - The company has appeared on the "Dragon and Tiger List" once this year, with a net purchase of 68.1398 million CNY on March 12 [1] Group 2: Financial Performance - For the period from January to September 2025, Bafang achieved a revenue of 1.034 billion CNY, representing a year-on-year growth of 2.14% [2] - The net profit attributable to shareholders for the same period was 66.8996 million CNY, reflecting a year-on-year increase of 30.52% [2] Group 3: Shareholder Information - As of September 30, 2025, the number of shareholders decreased by 8.12% to 17,700, with an average of 13,242 circulating shares per person, which increased by 8.66% [2] - The company has distributed a total of 1.032 billion CNY in dividends since its A-share listing, with 431 million CNY distributed over the last three years [3] - Notable changes in institutional holdings include a decrease of 2.2765 million shares held by Hong Kong Central Clearing Limited and an increase of 535,400 shares held by Huashang Yuanjian Value Mixed A [3]

Market Performance - The electric motor sector increased by 0.71% compared to the previous trading day, with Ananda leading the gains [1] - The Shanghai Composite Index closed at 4029.5, up 0.73%, while the Shenzhen Component Index closed at 13476.52, up 1.78% [1] Stock Performance - Ananda (603350) closed at 40.84, with a rise of 6.44% and a trading volume of 49,400 shares, totaling a transaction value of 26.66 million yuan [1] - Jiangte Electric (002176) closed at 12.18, up 5.73%, with a trading volume of 2.0381 million shares, amounting to 2.463 billion yuan [1] - Zhongdian Electric (603988) closed at 26.14, increasing by 2.63%, with a trading volume of 78,500 shares and a transaction value of 205 million yuan [1] - Other notable stocks include Jiadian Co. (000922) with a 1.39% increase, Bafang Co. (603489) up 1.17%, and Wolong Electric (600580) rising by 0.95% [1] Fund Flow - The electric motor sector experienced a net outflow of 15.1534 million yuan from institutional funds and a net outflow of 60.5682 million yuan from speculative funds, while retail investors saw a net inflow of 75.7217 million yuan [3]

Core Viewpoint - Bafang Electric (Suzhou) Co., Ltd. has shown a significant increase in stock price and revenue, indicating positive growth trends in the electric bicycle motor and related electrical systems market [1][2]. Group 1: Stock Performance - As of November 13, Bafang's stock price increased by 2.01%, reaching 30.39 CNY per share, with a total market capitalization of 7.13 billion CNY [1]. - Year-to-date, Bafang's stock has risen by 28.12%, with a 0.30% increase over the last five trading days, a 20.79% increase over the last 20 days, and a 5.78% increase over the last 60 days [1]. - The company has appeared on the "Dragon and Tiger List" once this year, with a net buy of 68.14 million CNY on March 12 [1]. Group 2: Financial Performance - For the period from January to September 2025, Bafang achieved a revenue of 1.034 billion CNY, reflecting a year-on-year growth of 2.14%, while the net profit attributable to shareholders was 66.90 million CNY, up 30.52% year-on-year [2]. - Since its A-share listing, Bafang has distributed a total of 1.032 billion CNY in dividends, with 431 million CNY distributed over the past three years [3]. Group 3: Shareholder Information - As of September 30, 2025, Bafang had 17,700 shareholders, a decrease of 8.12% from the previous period, with an average of 13,242 circulating shares per shareholder, an increase of 8.66% [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the fifth largest, holding 2.33 million shares, a decrease of 2.28 million shares from the previous period [3].

Market Overview - The electric motor sector experienced a decline of 1.04% on the trading day, with Bafang Electric leading the drop [1] - The Shanghai Composite Index closed at 4002.76, down 0.39%, while the Shenzhen Component Index closed at 13289.0, down 1.03% [1] Stock Performance - Notable gainers in the electric motor sector included: - Fangzheng Electric, closing at 15.98 with a rise of 9.98% and a trading volume of 1.75 million shares, totaling 2.71 billion yuan [1] - Jiadian Co., closing at 15.33 with a rise of 5.14% and a trading volume of 594,300 shares, totaling 890 million yuan [1] - Conversely, Bafang Electric saw a significant decline, closing at 30.27 with a drop of 4.96% and a trading volume of 76,400 shares, totaling 234 million yuan [2] Capital Flow - The electric motor sector experienced a net outflow of 565 million yuan from institutional investors and 181 million yuan from speculative funds, while retail investors saw a net inflow of 746 million yuan [2] - Specific stock capital flows indicated: - Fangzheng Electric had a net inflow of 198 million yuan from institutional investors, while speculative funds saw a net outflow of 157 million yuan [3] - Jiadian Co. had a net inflow of 12.83 million yuan from institutional investors, with speculative funds contributing a net inflow of 33.68 million yuan [3]

Summary of Key Points from the Conference Call Company Overview - **Company**: 八方股份 (Bafang) - **Core Business**: The core business of Bafang is the mid-drive and hub motors for electric bicycles (eBikes) [4][2]. Industry Insights - **Market Demand**: Bafang benefits from the demand in the European market, despite experiencing a destocking cycle from 2023 to 2024. A new replenishment cycle is expected to begin in the second half of 2025 [2][6]. - **Global eBike Penetration**: The global eBike penetration rate is relatively low, with Europe at approximately 30%, while the US and Japan are below 10%. The overall global penetration rate is around 18% [7][2]. - **Market Concentration**: The eBike market is highly concentrated, with Bafang, Bosch, and Shimano holding over 50% of the European market share [8][2]. Company Performance - **Market Share**: Bafang's market share in Europe is approximately 25%, influenced by industry inventory fluctuations [9][2]. - **Financial Performance**: In Q3 2025, Bafang achieved a revenue of 391 million yuan, representing an 18% year-on-year growth. The net profit attributable to the parent company reached 35 million yuan, a 235% increase quarter-on-quarter, exceeding expectations and leading to a stock price increase of over 20% [3][2]. Future Outlook - **Growth Potential**: Bafang is expected to further increase its market share due to its brand strength, design customization, and maintenance capabilities. The rising proportion of mid-drive motors is anticipated to improve the overall gross margin of the company [10][2]. - **Profit Projections**: The company is projected to achieve a net profit of around 100 million yuan in 2025, with optimistic estimates reaching 200 million yuan in 2026, corresponding to a current valuation of approximately 35 times [10][2]. Quantum Computing Insights - **Industry Support**: Major economies are increasing policy support for the quantum computing industry. The US has raised its funding for quantum initiatives to $2.7 billion for the fiscal years 2025-2029, while China has prioritized quantum technology as a strategic frontier [15][2]. - **Market Size**: The upstream core device market for quantum computing is expected to reach $250 billion by 2035 [5][2]. - **Technological Development**: Various quantum technology routes are being explored, with superconducting technology slightly ahead in commercialization progress [13][2]. Additional Considerations - **Domestic Competition**: In the context of export controls from the US, China is accelerating domestic replacements for key quantum computing equipment, creating a competitive landscape [16][2]. - **Application Directions**: Downstream applications are transitioning from laboratory settings to industry practices, focusing on quantum simulation, optimization problems, and linear algebra applications [21][2].

Summary of Baifang Co. Conference Call Company Overview - **Company**: Baifang Co. - **Industry**: E-Bike (Electric Bicycle) Industry Key Points Financial Performance - **Revenue Growth**: In Q3 2025, Baifang's revenue increased by 2.4% year-on-year, driven by a significant rise in shipment volumes. The company achieved an 18% growth in Q3 alone, despite a decline in purchasing power in the European market [3][25] - **Profit Increase**: The company's profit surged by 56 times compared to the previous year, attributed to a low base last year, increased capacity utilization due to revenue growth, and effective cost control measures [2][3] Market Dynamics - **European Market Inventory**: Since September 2025, inventory levels in the European market have stabilized, with an estimated 900,000 units expected to be de-stocked in 2024. Demand is anticipated to improve by 2026, with growth rates projected between 5% and 10% [2][5][6] - **Consumer Trends**: There is a trend of consumer downgrade in Europe, leading to increased demand for lower-priced models (2,000-3,000 Euros and 800-1,200 Euros), which presents opportunities for Baifang [2][10] Industry Insights - **Replacement Cycle**: The e-bike industry has a replacement cycle averaging five years. A concentrated replacement wave is expected between 2025 and 2026, although new demand and replacement demand will alternate [7][8] - **Market Share**: Baifang has maintained a market share of approximately 20%, with expectations for gradual growth starting in 2025, particularly in emerging markets in Northern and Eastern Europe [3][11] Cost Management - **Cost Control**: The company has successfully reduced costs by over 20 million Yuan through the divestment of its electric motorcycle division and personnel optimization [4] Future Outlook - **Gross Margin Trends**: Short-term gross margins may slightly decline or remain stable, influenced by the performance of the Tianjin and rapid transit businesses. However, improved capacity utilization is expected to positively impact net profits [15][16] - **Production Capacity**: Current capacity utilization is relatively low, with the Tianjin facility at 70%-80% and the Suzhou facility at around 60%. The company has suspended three production lines due to insufficient orders [16] Competitive Landscape - **Competitors**: Major competitors in the mid-drive motor segment include Bosch and Shimano, while domestic competitors like Anida and Max Power dominate the custom products segment [19] Product Development - **New Ventures**: Baifang is exploring new business directions, including the development of drone motor projects, leveraging existing technology and production lines [17] Export Strategy - **Export Model**: Approximately one-third of Baifang's products are directly exported to European customers, while the remainder is exported indirectly through ODM manufacturers in various regions [18] Market Expansion - **Growth Sources**: Future revenue growth is expected from increased market share and overall industry penetration, with current e-bike penetration in Europe at about 30% [21] Regional Market Insights - **US and China Markets**: The US market remains stable with an annual volume of about 1 million units. In China, e-bike growth is challenged by traditional electric bikes, despite a recent surge in demand due to new government subsidies [13][14] Seasonal Trends - **Sales Stability**: The company has observed less pronounced seasonal fluctuations in sales, with quarterly revenues stabilizing between 300 million to 400 million Yuan [26]

Core Points - The company guarantees the authenticity, accuracy, and completeness of the quarterly report, and assumes legal responsibility for any false records or misleading statements [2][8][17] Financial Data - The third-quarter financial statements are unaudited [3][7] - The report period refers to the three-month period from the beginning to the end of the quarter [3] Board Meeting - The 11th meeting of the third board was held on October 29, 2025, with all six directors present, and the meeting procedures complied with relevant laws and regulations [10][11] - The board unanimously approved the "2025 Third Quarter Report" and a proposal to amend certain governance systems [11][14] Investor Communication - An investor performance briefing will be held on November 26, 2025, from 11:00 to 12:00, via the Shanghai Stock Exchange Roadshow Center [18][19] - Investors can submit questions from November 19 to November 25, 2025, for discussion during the briefing [20][21]