Market Performance - The general equipment sector increased by 0.19% on July 29, with Jikang Technology leading the gains [1] - The Shanghai Composite Index closed at 3609.71, up 0.33%, while the Shenzhen Component Index closed at 11289.41, up 0.64% [1] Top Gainers - Jikang Technology (code: 830879) closed at 37.66, up 20.36% with a trading volume of 242,000 shares and a transaction value of 818 million [1] - Haichang New Materials (code: 300885) closed at 20.51, up 20.01% with a trading volume of 291,100 shares and a transaction value of 553 million [1] - Hexin Instruments (code: 688622) closed at 96.02, up 20.00% with a trading volume of 28,600 shares and a transaction value of 258 million [1] Top Losers - Lilang New Materials (code: 836807) closed at 19.90, down 3.86% with a trading volume of 174,000 shares and a transaction value of 350 million [2] - Kaile Shares (code: 301070) closed at 44.36, down 3.57% with a trading volume of 61,000 shares and a transaction value of 271 million [2] - Chuanrun Shares (code: 002272) closed at 11.30, down 3.50% with a trading volume of 538,100 shares and a transaction value of 610 million [2] Capital Flow - The general equipment sector experienced a net outflow of 1.245 billion from institutional investors and a net outflow of 184 million from speculative funds, while retail investors saw a net inflow of 1.429 billion [2] - Specific stocks like Haichang New Materials had a net inflow of 862.55 million from institutional investors, while it faced a net outflow of 501.02 million from speculative funds [3]

Core Viewpoint - Zongshen Power (001696.SZ) is expected to see a significant increase in net profit and net profit after deducting non-recurring gains and losses for the first half of 2024, with growth rates projected between 70% and 100% compared to the same period last year [3][4]. Group 1: Financial Performance - The company anticipates a net profit attributable to shareholders of between 479.2 million and 563.8 million yuan for the first half of 2024, compared to 281.9 million yuan in the same period last year, marking a growth of 70%-100% [4]. - The net profit after deducting non-recurring gains and losses is expected to be between 455.6 million and 536 million yuan, up from 268.0 million yuan year-on-year, also reflecting a growth of 70%-100% [4]. - Basic earnings per share are projected to be between 0.4185 and 0.4924 yuan, compared to 0.2462 yuan in the previous year [4]. Group 2: Market Position and Economic Trends - Zongshen Power has been recognized as one of the "three swordsmen of low-altitude economy" in 2024, indicating its strong positioning in this emerging market [6]. - The low-altitude economy index is expected to outperform the broader market, with Zongshen Power showing a remarkable increase of 282.8% in stock price from the beginning of 2024 to July 17, 2024 [8]. - The company’s stock has experienced a slight decline of 3.1% in 2025 up to July 17, 2025, indicating some volatility in the market [8]. Group 3: Business Segments - The aviation engine business, while showing potential, has not yet achieved significant sales volume, contributing only 1.5% to total revenue in 2024, with revenue of 160 million yuan [14][15]. - The new energy business has seen substantial growth, with a 335% increase in revenue to 580 million yuan, largely due to acquisitions [34]. - The general machinery business remains the largest segment, accounting for 50.3% of total revenue in 2024, with a revenue of 5.22 billion yuan and a net profit of 360 million yuan [40][41]. Group 4: Strategic Acquisitions - In December 2024, Zongshen Power acquired a 24.6% stake in Longxin General (603766.SH), a leading motorcycle manufacturer, which is expected to enhance its market position and provide synergies in the motorcycle and general machinery sectors [49][52]. - Longxin General has a strong export presence, with 64.5% of its revenue coming from international sales, which will support Zongshen Power's global expansion efforts [54].

Summary of Zongshen Power's Conference Call Industry and Company Overview - **Company**: Zongshen Power - **Industry**: Aviation Engine Manufacturing Key Points and Arguments - Zongshen Power's C100 engine has received airworthiness certification, marking a significant milestone for China's independently developed aviation power and providing safety assurance for the low-altitude economy [2][19] - The company has adopted a "military first, civilian later" strategy, achieving rapid development in the drone sector, with the recent certification laying the groundwork for future Type Certificate (TC) applications [2][6] - The A500 engine, with 100 horsepower, is designed for light sport aircraft, such as trainers and sightseeing planes, and boasts leading technical specifications compared to international counterparts [2][10] - Zongshen Power differentiates its products using two naming systems: CA for civilian and C for military, reflecting different performance and pricing requirements [2][11] - The company has established a strong competitive barrier in the small piston engine sector through stability, consistency, and reliability, further solidified by commercial certification [2][12][17] Additional Important Insights - The airworthiness certification process took approximately four to five years, representing a historic achievement for China's aviation history and contributing to the development of the low-altitude economy [3][19] - Zongshen Power plans to continue expanding its product range to strengthen its competitive advantage in the aviation engine market [12][13] - The company has five main engine platforms, including C100, C125, and C145, with the C100 already certified, while the C145 awaits a suitable flight platform for certification [14] - The traditional business of Zongshen Power has shown strong performance, with general machinery growth and motorcycle power achieving a growth rate of 10% to 20% [18] - The domestic certification of aviation equipment is significant for the industry, as it allows for the establishment of local standards, reducing reliance on foreign standards and promoting the development of China's low-altitude economy [22] - The support from the Civil Aviation Administration of China (CAAC) for domestic power enterprises like Zongshen Power is crucial, as it helps them gain necessary certifications and reduces international competitive pressures [23] Market Potential and Competitive Landscape - The market space for Rotex, a competitor, has expanded due to increased demand for unmanned systems, providing Zongshen Power with opportunities to replace Rotex products in both military and civilian markets [20] - Rotex has made significant progress in expanding its overseas market, particularly in Europe, which presents a substantial opportunity for Zongshen Power to capture market share [21]

Core Viewpoint - The AI Fund Bosera Contrarian Investment Mixed A (004434) reported a profit of 1.3663 million yuan for Q2 2025, with a weighted average profit per fund share of 0.0385 yuan, and a net value growth rate of 2.74% during the reporting period [2] Fund Performance - As of July 18, the fund's unit net value was 1.546 yuan, with a fund size of 51.5762 million yuan as of the end of Q2 2025 [2][13] - The fund's one-year compounded net value growth rate reached 11.02%, the highest among its peers, while the lowest was 7.1% for Bosera Advanced Manufacturing Mixed A [2] - Over the past three months, the fund's compounded net value growth rate was 14.96%, ranking 175 out of 615 comparable funds; over six months, it was 8.67%, ranking 370 out of 615; and over three years, it was -11.48%, ranking 140 out of 324 [2] Risk Metrics - The fund's Sharpe ratio over the past three years was -0.0683, ranking 190 out of 319 comparable funds [7] - The maximum drawdown over the past three years was 35.33%, with a single-quarter maximum drawdown of 22.5% occurring in Q1 2021, ranking 217 out of 322 [9] Investment Strategy - The fund manager indicated a focus on emerging industries, high-quality alpha stocks, and undervalued dividend stocks to enhance the probability of success and optimize the portfolio for better returns [2] Portfolio Composition - As of the end of Q2 2025, the fund's top ten holdings included Ningde Times, Nuwell, ST Huaton, Xiaoshangpin City, Xinyi Sheng, Zhongji Xuchuang, Hudian Co., Zongshen Power, Ninebot, and Zijin Mining [16] - The average stock position over the past three years was 74.1%, compared to the industry average of 83.27%, with a peak of 85.53% at the end of 2021 and a low of 60.86% in mid-2021 [12]

Market Overview - The Shanghai Composite Index rose by 0.72% on July 21, with 27 out of the 28 sectors in the Shenwan classification experiencing gains, led by the construction materials and construction decoration sectors, which increased by 6.06% and 3.79% respectively [1] - The machinery equipment sector also saw an increase of 1.95% [1] - The banking and comprehensive sectors were the only ones to decline, with decreases of 0.77% and 0.34% respectively [1] Capital Flow Analysis - The net outflow of capital from the two markets was 6.945 billion yuan, with 11 sectors experiencing net inflows [1] - The power equipment sector had the largest net inflow, totaling 3.193 billion yuan, while the construction materials sector followed with a net inflow of 2.038 billion yuan [1] - The computer sector experienced the highest net outflow, amounting to 9.319 billion yuan, followed by the electronics sector with a net outflow of 2.052 billion yuan [1] Machinery Equipment Sector Performance - The machinery equipment sector had a net inflow of 1.959 billion yuan, with 425 out of 530 stocks in the sector rising, including 18 stocks hitting the daily limit [2] - The top three stocks with the highest net inflow were Changsheng Bearing (3.38 billion yuan), Lioo Co., Ltd. (2.91 billion yuan), and Zongshen Power (2.02 billion yuan) [2] - The sector also had 11 stocks with net outflows exceeding 50 million yuan, with the largest outflows from Nanxing Co., Ltd. (1.90 billion yuan), Yingweike (1.41 billion yuan), and Julun Intelligent (1.18 billion yuan) [2] Top Gainers in Machinery Equipment Sector - The top gainers in the machinery equipment sector included: - Changsheng Bearing: +20.00%, turnover rate 23.64%, net inflow 337.65 million yuan - Lioo Co., Ltd.: +5.96%, turnover rate 19.43%, net inflow 290.93 million yuan - Zongshen Power: +3.86%, turnover rate 8.27%, net inflow 201.81 million yuan [2] Top Losers in Machinery Equipment Sector - The top losers in the machinery equipment sector included: - Nanxing Co., Ltd.: -3.10%, turnover rate 18.57%, net outflow -190.11 million yuan - Yingweike: -3.40%, turnover rate 3.89%, net outflow -140.56 million yuan - Julun Intelligent: +0.24%, turnover rate 8.37%, net outflow -117.73 million yuan [4]

Investment Rating - Strongly Recommended (Maintain) [3] Core Views - The report highlights that the Zongshen Aviation CA500 piston engine has successfully completed airworthiness review, filling the gap in domestic light sport aviation power [1][6] - The CA500 engine is set to become the first domestic aviation power product to meet CAAC airworthiness requirements and ASTM F2339 international standards, showcasing advanced materials and high efficiency [6] - The company is positioned as a leading enterprise in general power machinery and motorcycle engines in China, benefiting from the growth in military drones and low-altitude economy [6] Financial Data and Valuation - Total revenue is projected to grow from 8,151 million yuan in 2023 to 18,701 million yuan in 2027, with a compound annual growth rate (CAGR) of approximately 15% [2][8] - Operating profit is expected to increase significantly from 428 million yuan in 2023 to 1,853 million yuan in 2027, reflecting a growth rate of 126% in 2025 [2][8] - Net profit attributable to shareholders is forecasted to rise from 362 million yuan in 2023 to 1,444 million yuan in 2027, with a notable increase of 134% in 2025 [2][8] - Earnings per share (EPS) is anticipated to grow from 0.32 yuan in 2023 to 1.26 yuan in 2027 [2][8] - The price-to-earnings (PE) ratio is projected to decrease from 75.3 in 2023 to 18.9 in 2027, indicating improved valuation as earnings grow [2][8] Stock Performance - The stock has shown strong absolute performance, with a 12-month increase of 144% compared to the CSI 300 index [5] - The current stock price is 23.82 yuan, with a total market capitalization of 27.3 billion yuan [3] Company Overview - Zongshen Power has established five aviation piston engine platforms and over 20 aviation piston power products, breaking the foreign monopoly in this sector [6] - The company has successfully exported products to over 30 countries, including Germany, France, and Italy, and has obtained airworthiness certifications in France and Germany [6]

证券代码：001696 证券简称：宗申动力 公告编号：2025-39 重庆宗申动力机械股份有限公司 对外担保进展公告 本公司及董事会全体成员保证公告内容的真实、准确和完整，没有虚假记 载、误导性陈述或者重大遗漏。 一、担保情况概述 1．担保审议情况 重庆宗申动力机械股份有限公司（简称"公司"）分别召开第十一届董事会 第十九次会议和 2024 年年度股东大会审议通过《关于 2025 年度对子公司担保的 议案》：同意 2025 年度公司对合并报表范围内的下属子公司担保、全资子公司 对公司担保及下属子公司间互保额度预计为 44.30 亿元，公司向控股子公司提供 的诉讼保全信用担保的额度预计为 2 亿元，有效期至公司 2025 年年度股东大会 重新核定额度前。具体内容详见公司于 2025 年 4 月 1 日和 4 月 22 日在巨潮资讯 网（www.cninfo.com.cn）上披露的相关公告。 2．担保进展情况 近日，公司对合并报表范围内的下属子公司重庆宗申发动机制造有限公司、 重庆宗申通用动力机械有限公司、重庆百诺达进出口贸易有限公司、重庆大江动 力设备制造有限公司、重庆杜卡申瑞国际贸易有限公司、东莞市锂智慧能源 ...

Core Viewpoint - The performance of low-altitude economy companies in the first half of 2025 shows mixed results, with 12 companies reporting profits and 12 companies experiencing losses [3][5]. Group 1: Performance Overview - As of July 14, 2025, 24 companies in the low-altitude economy index disclosed their performance forecasts, revealing a split between profitable and loss-making entities [3]. - Among the 24 companies, 12 reported profits while the other 12 faced losses [3]. - Four companies are expected to see profit increases of over 50%: Zongshen Power (001696.SZ), Longxin General (603766.SH), Huijia Times (603101.SH), and Changyuan Donggu (603950.SH) [6]. Group 2: Profit and Loss Analysis - Companies such as Aerospace Development (000547.SZ) and Aerospace Rainbow (002389.SZ) reported losses, with the latter citing delays in delivery due to user demand plans [8]. - Aerospace Power (600893.SH) and Aerospace Electric (002025.SZ) achieved profitability but saw a decline in net profit compared to the previous year [6]. - North Navigation (600435.SH) turned a profit, expecting a net profit of 105 million to 120 million yuan in the first half of 2025 [7]. Group 3: Industry Challenges - Many companies in the low-altitude economy sector, particularly those in the aviation industry and low-altitude mainframe manufacturers, reported losses [5][8]. - The losses were attributed to various factors, including market environment impacts, product transformation challenges, and increased operational costs [9]. - Despite ongoing losses, some companies like Chuan University Zhisheng (002253.SZ) are actively pursuing low-altitude economy projects, indicating a commitment to future growth [9].

证券代码：001696 证券简称：宗申动力 公告编号：2025-38 重庆宗申动力机械股份有限公司 关于现金收购股权暨增资的进展公告 本公司及董事会全体成员保证信息披露的内容真实、准确、完整，没有虚假记 载、误导性陈述或重大遗漏。 重庆宗申动力机械股份有限公司（简称"公司"）于 2023 年 5 月 24 日召开 第十一届董事会第九次会议审议通过了《关于公司拟现金收购东莞市锂智慧能源 有限公司 60%股权并对其增资的议案》，同日，各方签署了《关于东莞市锂智慧 能源有限公司股权转让及增资协议》（简称"《股权转让及增资协议》"）。根 据《股权转让及增资协议》约定，高少恒先生等 5 名东莞市锂智慧能源有限公司 （简称"东莞锂智慧"）原始股东承诺，将在公司支付第一期东莞锂智慧收购价 款后 24 个月内择机在二级市场购买公司股票，购买资金额度不低于人民币 2,500 万元（其中，自公司支付第一期东莞锂智慧收购价款后 12 个月内的购买资金额度 不低于 1,500 万元），并在购买后 5 个工作日内全部质押给公司或公司指定第三 方。具体内容详见公司于 2023 年 5 月 25 日刊登在指定媒体和网站上的《关于拟 现金收 ...

Core Insights - Dongguan Lithium Wisdom's original shareholders have purchased 1.7361 million shares of Zongshen Power (001696), accounting for 0.15% of the company's total share capital, with a total investment exceeding 25 million yuan [1] Summary by Sections - Share Purchase Details - High Shaoheng purchased a total of 453,300 shares through centralized bidding from April 8, 2025, to July 7, 2025, at an average transaction price of 22.27 yuan per share, amounting to a total of 10.0952 million yuan [1]