Core Viewpoint - The company is currently progressing in the research and development of its drone components project, focusing primarily on motor products [1] Summary by Categories Company Developments - The company's drone components project is advancing in an orderly manner [1] - The main research direction is centered on motor products [1]

Core Insights - The electric motor sector experienced a rise of 0.51% on the previous trading day, with Kangping Technology leading the gains [1] - The Shanghai Composite Index closed at 3870.02, up 0.87%, while the Shenzhen Component Index closed at 12777.31, up 1.53% [1] Electric Motor Sector Performance - Kangping Technology (300907) closed at 33.09, with a gain of 5.92% and a trading volume of 55,000 shares, amounting to a transaction value of 181 million yuan [1] - Bafang Technology (603489) closed at 31.53, up 4.09%, with a trading volume of 63,700 shares and a transaction value of 203 million yuan [1] - Other notable performers include: - Fangzheng Electric (002196): closed at 13.34, up 3.49%, with a transaction value of 934 million yuan [1] - Jiangte Electric (002176): closed at 10.32, up 2.79%, with a transaction value of 1.28 billion yuan [1] - Dayang Electric (002249): closed at 10.04, up 2.24%, with a transaction value of 802 million yuan [1] Fund Flow Analysis - The electric motor sector saw a net outflow of 177 million yuan from institutional investors, while retail investors contributed a net inflow of 56.86 million yuan [2] - Notable fund flows include: - Dayang Electric (002249): net inflow of 19.15 million yuan from institutional investors [3] - Jiangsu Fuli (300660): net inflow of 13.05 million yuan from institutional investors [3] - Kai Zhong Precision (002823): net inflow of 7.48 million yuan from institutional investors [3]

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].