Core Viewpoint - The court has dismissed the lawsuit filed by Beijing Yuandu Internet Technology Co., Ltd. against Chengdu Zongheng Automation Technology Co., Ltd. and its subsidiary, Chengdu Zongheng Dapeng Drone Technology Co., Ltd., indicating no negative impact on the company's operations or financials [2][3][4]. Summary by Sections Case Background - The lawsuit involved a claim of unfair competition against the company and its subsidiary, with the amount in question being 11 million yuan [3][4]. Latest Developments - The Beijing Shijingshan District People's Court has issued a civil judgment, rejecting the claims made by the plaintiff, Beijing Yuandu [4]. Impact on the Company - The court's ruling will not adversely affect the company's daily operations or its current and future financial performance [3][5]. Other Legal Matters - As of the announcement date, there are no other significant lawsuits or arbitration matters that have not been disclosed by the company or its subsidiaries [6].

Core Viewpoint - The legal dispute involving Zongheng Co., known as the "first industrial drone stock," has concluded with a court ruling against Yuandu Technology, which was found to have engaged in commercial defamation against Zongheng Co. and its subsidiary, Dapeng Company [2][6][14]. Group 1: Legal Proceedings - The lawsuit originated from a statement made by Yuandu Technology in May 2024, accusing Dapeng Company of illegal activities, which Zongheng Co. refuted as malicious defamation [2][10]. - The Beijing Shijingshan District People's Court ruled that Yuandu Technology's claims were unfounded, particularly regarding the alleged forgery of company seals and improper relationships with local government [12][14]. - The court determined that Yuandu Technology's statements misled the public and lacked factual basis, leading to a judgment that required Yuandu Technology to publish a statement to mitigate the damage caused [12][14]. Group 2: Financial Implications - As part of the ruling, Yuandu Technology is required to compensate Zongheng Co. and Dapeng Company for economic losses and reasonable expenses totaling 320,000 yuan [14]. - Zongheng Co. announced that the lawsuit's outcome would not negatively impact its daily operations or financial performance [14]. Group 3: Evidence and Claims - The court found that the evidence provided by Yuandu Technology, particularly a QQ account screenshot, was insufficient and unverifiable, undermining their claims [11][12]. - The court highlighted that Yuandu Technology's assertions about Dapeng Company’s bidding violations and administrative penalties were not supported by evidence and exceeded normal commentary limits, constituting defamation [12][14].

证券代码：688070 证券简称：纵横股份 公告编号：2025-051 成都纵横自动化技术股份有限公司 关于公司及全资子公司诉讼进展的公告 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、准确性和完整性依法承担法律责任。 重要内容提示： 案件所处的诉讼阶段：判决驳回原告起诉。 上市公司所处的当事人地位：成都纵横自动化技术股份有限公司（以下简 称"公司"或"纵横股份"）及下属全资子公司成都纵横大鹏无人机科技有限公 司（以下简称"纵横大鹏"）系本案被告，其中纵横股份为被告一，纵横大鹏为 被告二。 公司及纵横大鹏于近日收到北京市石景山区人民法院送达的《民事判决书》 （（2024）京 0107 民初 12170 号）。北京市石景山区人民法院判决驳回原告北京 远度互联科技有限公司的起诉。现将有关情况公告如下： 一、诉讼案件的基本情况 公司及纵横大鹏于 2024 年 10 月分别收到北京市石景山区人民法院送达的 《民事传票》（案号为（2024）京 0107 民初 12170 号）及《民事起诉状》等相关 材料。北京远度互联科技有限公司（以下简称"北京远度"）起诉纵横股份 ...

Core Viewpoint - Zongheng Co., Ltd. is a leading domestic industrial drone company with a comprehensive product range, strong software technology, and a well-established industrial ecosystem, facing challenges in revenue and profit compared to industry leaders [1][2]. Group 1: Company Overview - Zongheng Co., Ltd. was established on April 8, 2010, and listed on the Shanghai Stock Exchange on February 10, 2021, with its headquarters in Chengdu, Sichuan [1]. - The company specializes in the research, development, production, sales, and service of industrial drone-related products, classified under the defense and military industry [1]. Group 2: Financial Performance - For Q3 2025, Zongheng's revenue was 322 million yuan, ranking 40th out of 48 in the industry, significantly lower than the top competitors, AVIC Xi'an Aircraft Industry Group with 30.244 billion yuan and Aero Engine Corporation of China with 22.912 billion yuan [2]. - The net profit for the same period was -19.7429 million yuan, placing the company 42nd in the industry, with the industry leaders reporting net profits of 1.369 billion yuan and 1.162 billion yuan respectively [2]. Group 3: Financial Ratios - As of Q3 2025, Zongheng's debt-to-asset ratio was 39.12%, down from 43.75% year-on-year, slightly below the industry average of 39.42%, indicating improved debt repayment capability [3]. - The gross profit margin for the same period was 48.86%, a slight decrease from 49.54% year-on-year but still significantly higher than the industry average of 30.54%, reflecting strong profitability [3]. Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 16.01% to 4,933, while the average number of circulating A-shares held per shareholder increased by 19.06% to 17,800 [5]. - Notably, a new shareholder, Yongying Low Carbon Environmental Smart Selection Mixed Fund A, entered the top ten circulating shareholders with 2.4255 million shares [5]. Group 5: Market Outlook - According to Minsheng Securities, Zongheng's revenue has shown continuous improvement in the first three quarters of 2025, with significant growth in Q3 and a turnaround in profitability, supported by effective cost control and ongoing R&D investment [5]. - Guojin Securities highlighted Zongheng as a domestic industrial drone leader, noting a profitability turning point in Q3 2025, with expectations for revenue growth from 596 million yuan in 2025 to 859 million yuan in 2027, and net profits projected to increase from 11.37 million yuan to 96.32 million yuan over the same period [5].

Summary of the Conference Call for Zongheng Co., Ltd. Company Overview - **Company**: Zongheng Co., Ltd. - **Industry**: Low-altitude digital economy and drone technology Key Financial Highlights - **Revenue Growth**: - Revenue for the first three quarters increased significantly, reaching approximately 320 million yuan, a year-on-year growth of 57% [2][3] - Third-quarter revenue was about 190 million yuan, up 54% year-on-year [2][3] - **Profitability**: - Achieved a net profit of 16 million yuan in the third quarter, marking a turnaround from losses [2][3] - Gross margin for the first three quarters was 48.9%, an increase of 2.2 percentage points year-on-year [2][4] - Operating expenses decreased by 13.4% to 51.7% [2][5] Strategic Focus Areas - **Low-altitude Digital Economy**: - Targeting a market potential of 300 billion yuan in equipment space across national cities and 150 billion yuan in service market at the municipal level [2][8] - Plans to establish platform companies in collaboration with local governments to promote drone operation models [2][7] - **International Market Expansion**: - Engaging with the "Belt and Road" initiative to facilitate exports of small aircraft CW40 and CW100 [2][6] - Anticipated overseas market size of at least 3 billion yuan, with ongoing efforts to secure necessary certifications [2][14] Market Development and Opportunities - **Domestic Projects**: - Secured nearly 200 million yuan in local digital economy demonstration projects [2][6] - Focus on vertical applications in various sectors such as forestry, transportation, and emergency services [2][12] - **Challenges and Solutions**: - Addressing external expansion challenges through successful case demonstrations and partnerships with local governments [2][9] Future Growth Projections - **Market Potential**: - The low-altitude economy is expected to grow significantly, with estimates suggesting a market size exceeding 300 billion yuan [2][13] - Continuous investment in R&D is crucial for maintaining competitive advantages [2][17] - **Talent and Resource Integration**: - Emphasis on attracting talent and leveraging partnerships with state-owned enterprises to enhance operational capabilities [2][18][19] Upcoming Initiatives - **Investor Engagement**: - Plans to hold an investor communication event in November to discuss future strategies and developments [2][26] Conclusion Zongheng Co., Ltd. is positioned for significant growth in the low-altitude digital economy and drone technology sectors, with strong financial performance and strategic initiatives aimed at expanding both domestic and international markets. The company is focused on leveraging partnerships and innovative solutions to capture market opportunities while maintaining a commitment to cost management and profitability.

Core Viewpoint - The aviation equipment sector experienced a rise of 1.11% on October 28, with Tongyi Aerospace leading the gains, while the overall market indices showed a decline [1]. Group 1: Market Performance - The Shanghai Composite Index closed at 3988.22, down 0.22%, and the Shenzhen Component Index closed at 13430.1, down 0.44% [1]. - Key stocks in the aviation equipment sector showed significant gains, with Tongyi Aerospace rising by 6.00% to a closing price of 17.15 [1]. Group 2: Stock Performance - Notable performers included: - Filihua, which increased by 5.47% to 88.00, with a trading volume of 444,000 shares and a transaction value of 3.838 billion [1]. - Maixinlin, up 5.02% to 65.69, with a trading volume of 81,700 shares and a transaction value of 536 million [1]. - Chengxi Aviation, which rose by 4.91% to 17.31, with a trading volume of 430,300 shares and a transaction value of 739 million [1]. Group 3: Capital Flow - The aviation equipment sector saw a net inflow of 308 million from institutional investors, while retail investors experienced a net outflow of 360 million [2][3]. - Key stocks with significant capital inflows included: - Filihua with a net inflow of 318 million, accounting for 8.30% of its trading volume [3]. - Zhonghang Shenfei with a net inflow of 284 million, representing 11.17% of its trading volume [3].

Core Viewpoint - Zongheng Co., Ltd. (688070.SH) reported its Q3 2025 results, indicating a slight decline in institutional investor holdings compared to the previous quarter [1] Institutional Holdings - As of October 27, 2025, three institutional investors disclosed holdings in Zongheng Co., Ltd., totaling 14.73 million shares, which represents 16.82% of the company's total share capital [1] - The institutional holding percentage decreased by 0.32 percentage points compared to the previous quarter [1] Public Fund Holdings - One public fund, Yongying Low Carbon Environmental Smart Selection Mixed Fund A, increased its holdings during this period, with an increase rate of 2.40% [1] - A total of 68 public funds did not disclose their holdings in this quarter, including notable funds such as Changxin National Defense Military Industry Quantitative Mixed A and Huashang Advantage Industry Mixed A [1]

Core Viewpoint - The company has shown significant improvement in its financial performance for the first three quarters of 2025, driven by low-altitude economy policies and increasing domestic and international market demand [6][7]. Financial Performance - For the first three quarters of 2025, the company's operating revenue reached 322.36 million yuan, representing a year-on-year increase of 57.01% [6]. - In the third quarter alone, the revenue was 187.71 million yuan, up 53.79% year-on-year [6]. - The net profit attributable to shareholders for the first three quarters was -19.81 million yuan, showing a significant reduction in losses, while the third quarter net profit turned positive at 16.52 million yuan [6]. Cost Management - The company has effectively enhanced management efficiency, achieving a sales expense ratio of 23.60%, down 6.27 percentage points year-on-year, and a management expense ratio of 15.58%, down 2.78 percentage points year-on-year [6]. Future Outlook - The company plans to capitalize on growth opportunities in the low-altitude economy sector, focusing on the development of drone systems and expanding both domestic and international markets [7]. - There will be a continued emphasis on cost control and management efficiency to support steady growth and achieve annual business objectives [7]. Investor Communication - An investor briefing is scheduled for November 7, 2025, to discuss the third-quarter results and address investor inquiries [11][12].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has turned profitable in Q3 2025, indicating a significant inflection point in its performance [2] - The company is transitioning from an industrial drone manufacturer to a provider of low-altitude digital economy solutions, poised to benefit from the rapid growth of the low-altitude economy [3] Summary by Sections Performance Overview - For the first three quarters of 2025, the company reported revenue of 322 million RMB, a year-on-year increase of 57%. In Q3 alone, revenue reached 188 million RMB, up 53.8% year-on-year and 95.8% quarter-on-quarter [1][2] - The net profit attributable to the parent company for Q3 2025 was 16.52 million RMB, marking a return to profitability [1] Operational Analysis - The company has seen a stable gross margin, with a comprehensive gross margin of 48.9% for the first three quarters of 2025, slightly down by 0.7 percentage points [2] - The company has successfully reduced its expense ratio, achieving a period expense ratio of 51.7%, down 16.3 percentage points [2] - The company is actively building low-altitude economic platforms across various provinces, with project bids totaling nearly 200 million RMB [2] Future Outlook - Revenue projections for 2025-2027 are estimated at 596 million RMB, 727 million RMB, and 859 million RMB, reflecting year-on-year growth rates of 25.6%, 22.1%, and 18.2% respectively [3] - The net profit attributable to the parent company is expected to be 11.37 million RMB in 2025, with significant growth anticipated in subsequent years [3]

Investment Rating - The report maintains a "Positive" outlook for the defense and military industry [6] Core Insights - The 20th Central Committee's Fourth Plenary Session emphasizes the importance of military equipment construction, indicating that the military equipment development is expected to accelerate with the implementation of the 14th Five-Year Plan [9][12] - The successful testing of the Zhuque-3 rocket marks a significant advancement in reusable rocket technology, which is anticipated to lower launch costs and accelerate satellite networking [14][17] - The military sector's stock prices have stabilized recently, with a focus on both domestic and international demand, highlighting the investment value in the military industry [18] Summary by Sections Investment Suggestions and Targets - The report suggests focusing on military electronics, new domains, and the aerospace propulsion chain, with specific stock recommendations including: - Military Electronics: Aerospace Electric (002025, Buy), Zhonghang Optical (002179, Buy), and others [18] - New Domains: Haige Communication (002465, Buy) and others [18] - Aerospace Propulsion Chain: Xibei Superconductor (688122, Buy) and others [18] - Military Trade/Main Equipment: Zhonghang Shenfei (600760, Unrated) and others [18] Industry Performance - The defense and military industry index increased by 2.81%, underperforming compared to the Shanghai Composite Index [21][22] - The report notes that the military industry has shown resilience, with a focus on key components and materials as demand rises [18][21] Recent Developments - The report highlights significant recent events in the military sector, including successful military exercises and advancements in military technology [30][31]