Core Viewpoint - Ningbo Huaxiang announced a share buyback plan, indicating a strategic move to enhance shareholder value and confidence in the company's future performance [1] Group 1 - As of November 3, 2025, the company has repurchased a total of 1,258,000 shares [1] - The repurchased shares account for 0.1546% of the company's total share capital [1]

关于回购公司股份的进展公告 本公司全体董事、监事、高级管理人员保证公告内容真实、准确和完整，并对公告 中的虚假记载、误导性陈述或者重大遗漏承担责任。 董事会公告 股票代码：002048 股票简称：宁波华翔 公告编号：2025-078 宁波华翔电子股份有限公司 宁波华翔电子股份有限公司（以下简称"公司"）于 2024 年 11 月 13 日、2024 年 12 月 4 日分别召开第八届董事会第十三次会议、2024 年第一次临时股东大会，审议通 过了《关于回购公司股份方案的议案》，同意公司使用自有资金和专项贷款资金以集中 竞价交易方式回购公司股份，用于注销并减少公司注册资本。本次回购资金总额为不 低于人民币 3000 万元（含）且不超过 5000 万元（含）；本次回购股份的价格为不超过 人民币 20.16 元/股（含）。本次回购股份的实施期限为自股东大会审议通过回购股份方 案之日起不超过 12 个月。具体内容详见公司于 2024 年 11 月 15 日、2024 年 12 月 7 日在巨潮资讯网（http://www.cninfo.com.cn）披露的《关于回购公司股份方案暨取得金 融机构回购专项贷款的公告》（公 ...

Group 1 - The company Ningbo Huaxiang announced on November 3 that it has repurchased approximately 1.26 million shares, accounting for 0.1546% of its total share capital, through a centralized bidding method [1] - The highest transaction price for the repurchased shares was 32 CNY per share, while the lowest was 12.43 CNY per share, with a total transaction amount of approximately 19.78 million CNY [1] - The repurchase price did not exceed the upper limit of 51.42 CNY per share [1]

Summary of Ningbo Huaxiang's Conference Call Company Overview - **Company**: Ningbo Huaxiang - **Industry**: Automotive Parts and Robotics Key Financial Performance - **Revenue**: In the first three quarters of 2025, revenue reached 19.224 billion CNY, a year-on-year increase of 5.88% [2][4] - **Net Profit**: Net profit attributable to shareholders was 89 million CNY, down 87.68% year-on-year due to the impact of European business divestiture. Excluding one-time factors, net profit increased by 63.89% to 1.071 billion CNY [2][4][5] - **Cash Flow**: Operating cash flow net amount increased by 58.66% to 1.679 billion CNY [5] Domestic Business Performance - **Growth**: Domestic revenue grew by 12.75%, and net profit increased by 21.33% [6] - **Gross Margin**: Gross margin recovered to 18%, and net profit margin exceeded 7% [6] - **Client Structure**: The proportion of revenue from self-owned brands increased, with major clients now including BYD and Geely, while revenue from FAW-Volkswagen dropped below 20% [2][6] Overseas Business Developments - **Divestiture Impact**: The sale of European operations was completed in the first half of 2025, resulting in a one-time loss of 1.023 billion CNY. The overall debt ratio decreased to 51.7% [2][7] - **North America**: The remaining North American operations reported a loss of 72 million CNY in the first three quarters, with losses narrowing [7][10] - **Southeast Asia**: Profits in Southeast Asia increased by 20.69% to 100 million CNY, with a net profit margin of 17% [7] Robotics Business Development - **Partnerships**: Collaboration with Zhiyuan Robotics is progressing well, with over 1,000 robot assemblies expected to be delivered from July to the end of 2025 [9][16] - **New Factory**: The second factory in Xiangshan is ready, and discussions with potential partners are ongoing [9] - **Joint Ventures**: A joint venture with Fengmei Chemical has been established to enter the core components sector [9] Strategic Initiatives - **Smart Chassis**: The establishment of Ningbo Huaxiang New Three Electric Technology Co., Ltd. aims to develop smart chassis technologies, including electric braking and steering systems [2][8][11] - **Investment Plans**: Plans to invest several hundred million CNY in research and development for the three electric systems and chassis [19] Future Outlook - **North America**: The company aims to significantly reduce losses in North America and achieve breakeven in the near future [10][14] - **Domestic Goals**: The target is to maintain domestic gross margins above 18% and net profit margins between 7% and 8% [13] - **Robotics Market**: The company is focusing on high-value joint components in the humanoid robot market, leveraging PEEK materials for competitive advantage [18][24] Additional Insights - **Self-Owned Brands**: Revenue from self-owned brands is expected to reach approximately 9 billion CNY in 2025, with a focus on improving profitability through supply chain adjustments [12][23] - **Market Trends**: The global humanoid robot market is anticipated to grow, with Ningbo Huaxiang positioning itself to meet future demands [24][25]

Group 1 - Ningbo Huaxiang's stock price dropped by 5.08% to 34.78 CNY per share, with a trading volume of 617 million CNY and a turnover rate of 2.43%, resulting in a total market capitalization of 28.305 billion CNY [1] - The company, established on September 26, 1988, and listed on June 3, 2005, specializes in the development, production, and sales of automotive parts, with revenue composition as follows: interior parts 53.89%, exterior parts 18.06%, metal parts 17.68%, electronic parts 8.28%, and others 2.09% [1] Group 2 - According to data, one fund from Fuan Da holds a significant position in Ningbo Huaxiang, specifically the Fuan Da Yangtze River Delta Theme Mixed A Fund (010746), which held 54,000 shares in the third quarter, accounting for 3.87% of the fund's net value, ranking as the ninth largest holding [2] - The Fuan Da Yangtze River Delta Theme Mixed A Fund was established on December 22, 2020, with a latest scale of 44.668 million CNY, achieving a year-to-date return of 54.58% and a one-year return of 41.37%, ranking 1012 out of 8152 and 1754 out of 8038 in its category, respectively [2] Group 3 - The fund manager of Fuan Da Yangtze River Delta Theme Mixed A Fund is Yang Hong, who has been in the position for 6 years and 129 days, managing total assets of 236 million CNY, with the best fund return during his tenure being 65.42% and the worst being -30.01% [3]

Investment Rating - The report initiates coverage with a rating of "Buy" for Ningbo Huaxiang [1] Core Insights - The company reported impressive non-GAAP performance in Q3 2025, with a significant increase in net profit driven by the sale of European operations and growth in domestic brand sales [3][6] - The company is accelerating its transformation towards lightweight and intelligent products, with revenue from self-owned brands expected to exceed 40% of total revenue by 2025 [4] - The divestiture of European subsidiaries has allowed the company to focus on new product lines and markets, particularly in North America, while also establishing a foothold in the humanoid robotics sector [5][7] Financial Performance - In Q3 2025, the company achieved operating revenue of 6.345 billion yuan, a year-on-year decrease of 3.01%, while net profit attributable to shareholders reached 462 million yuan, up 149.27% [3] - The non-GAAP net profit was 471 million yuan, reflecting a year-on-year growth of 163.06% [3] - Revenue projections for 2025-2027 are estimated at 28.89 billion, 32.02 billion, and 35.04 billion yuan, with year-on-year growth rates of 9.8%, 10.8%, and 9.42% respectively [7][9] Strategic Initiatives - The company has completed the divestiture of its European subsidiaries, which has improved its financial outlook and allowed for a more focused operational strategy [5] - The establishment of a joint venture in humanoid robotics is expected to create a new growth avenue, with plans to produce full-size bipedal robots over the next three years [5][7] - The company is actively pursuing partnerships with leading domestic brands to capitalize on the growth of the domestic automotive market [4]

Core Viewpoint - Ningbo Huaxiang's Q3 2025 report shows a significant profit recovery despite a revenue decline, indicating strong internal management and profitability improvement capabilities [1][2]. Financial Performance - For the first three quarters, the company achieved a revenue of 19.224 billion yuan, a year-on-year increase of 5.88%, while net profit attributable to shareholders was 88.7261 million yuan, a year-on-year decrease of 87.68% [1]. - In Q3 alone, revenue was 6.345 billion yuan, down 3.01% year-on-year, but net profit attributable to shareholders surged by 149.27% to 462 million yuan [1]. Business Operations - The fluctuation in performance was primarily due to the impact of the European business divestiture and non-recurring losses from North American buybacks in the first half of the year [1]. - The third quarter saw accelerated growth in self-owned brand business and effective cost reduction measures, leading to a significant profit recovery and improved gross margin [1]. Strategic Initiatives - Ningbo Huaxiang is actively pursuing expansion and smart manufacturing upgrades, with plans to raise up to 2.921 billion yuan through a specific A-share issuance to fund various projects, including smart manufacturing and digital upgrades [2]. - The company is also expanding into the humanoid robotics sector through the establishment of Ningbo Huaxiang Qiyuan Technology Co., focusing on hardware solutions and high-performance materials [2][3]. Technological Development - The company aims to become a leading global ODM in the intelligent robotics sector within three to five years, leveraging its lightweight material research capabilities [3]. - A joint venture was established to focus on the research and application of PEEK materials, with significant investments in technology and partnerships with academic institutions to enhance production capabilities [3].

Core Viewpoint - Ningbo Huaxiang (002048.SZ) reported mixed results in its Q3 earnings, with a significant profit increase in Q3 due to the divestiture of loss-making European operations, but a nearly 90% drop in net profit for the first three quarters, raising concerns about meeting annual performance targets [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of approximately 19.22 billion yuan, a year-on-year increase of 5.88%, while net profit attributable to shareholders was about 88.73 million yuan, a decrease of 87.68% [2][4]. - The adjusted net profit, excluding non-recurring items, was 1.07 billion yuan, reflecting a year-on-year increase of 63.89% [2][4]. Q3 Performance - In Q3 2025, the company reported revenue of 6.35 billion yuan, a decline of 3.01% year-on-year, while net profit attributable to shareholders was 462 million yuan, a year-on-year increase of 149.27% [4]. - The increase in Q3 net profit was primarily due to the sale of European operations, which reduced losses, and a rapid adjustment in the company's own brand production [4]. Business Strategy and Investments - The company is focusing on traditional production capacity in its recent 2.92 billion yuan fundraising, with limited investment in emerging sectors like robotics, raising questions about the necessity of capacity expansion and strategic direction [1][9]. - The fundraising will support projects including intelligent manufacturing in Wuhu, a production base for automotive interior parts in Chongqing, and a research and development center [9]. Capacity Utilization - The capacity utilization rates for various subsidiaries are low, with the Ningbo Interior System at 57.61% and Ningbo Lawrence at 51.52%, indicating underutilization of resources [8][9]. - The company’s main product lines, particularly interior components, have consistently accounted for over 50% of total revenue, yet the current capacity utilization does not support aggressive expansion plans [9]. Market Position and Future Outlook - The company has entered the robotics sector later than competitors, and the current investment strategy does not heavily favor this area, leaving its future market position uncertain [10].

Core Viewpoint - The company reported a mixed performance for the first three quarters of 2025, with revenue growth but a significant decline in net profit, primarily due to the impact of divesting its European business, while new business initiatives are expected to drive future growth [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved revenue of 19.22 billion, a year-on-year increase of 6.0%, while net profit attributable to shareholders was 90 million, a year-on-year decline of 87.6%. However, the net profit excluding non-recurring items was 1.07 billion, a year-on-year increase of 63.7% [1]. - In Q3, the company reported revenue of 6.35 billion, a year-on-year decrease of 3.0% and a quarter-on-quarter decrease of 4.1%. The net profit attributable to shareholders was 460 million, a year-on-year increase of 150.9% and a quarter-on-quarter turnaround from loss [1]. - The gross profit margin for Q3 was 18.1%, an increase of 3.9 percentage points year-on-year and 1.7 percentage points quarter-on-quarter, attributed to falling prices of raw materials and the positive impact of the European business divestiture [2]. Business Strategy and Outlook - The company is actively expanding its client base, focusing on leading domestic brands such as BYD, Geely, and Chery, while also deepening its presence in the North American market post-divestiture [1]. - The company plans to raise up to 2.921 billion through a specific stock issuance, with funds directed towards smart chassis and robotics sectors, indicating a strategic shift towards emerging technologies [2]. - A three-year agreement for full-size bipedal robot manufacturing has been signed, with expectations to ship over 1,000 units in the second half of the year, indicating a ramp-up in production for next year [2]. Profit Forecast - The company forecasts total revenue of 28.51 billion, 30.46 billion, and 33.22 billion for the years 2025 to 2027, with net profits attributable to shareholders projected at 440 million, 1.43 billion, and 1.65 billion respectively, maintaining a "recommended" rating [3].

Market Overview - The automotive parts sector increased by 0.82% on October 29, with Sanxiang Technology leading the gains [1] - The Shanghai Composite Index closed at 4016.33, up 0.7%, while the Shenzhen Component Index closed at 13691.38, up 1.95% [1] Top Gainers in Automotive Parts Sector - Sanxiang Technology (code: 920195) closed at 24.97, with a significant increase of 29.98% and a trading volume of 143,100 shares, amounting to a transaction value of 325 million yuan [1] - Kete Co., Ltd. (code: 920978) saw a rise of 12.23%, closing at 41.30 with a trading volume of 68,900 shares [1] - Lintai New Materials (code: 920106) increased by 12.20%, closing at 96.01 with a trading volume of 19,200 shares [1] - Other notable gainers include Jianbang Technology (10.42%), Mingke Precision Technology (9.99%), and Shanzi Gaoke (9.97%) [1] Top Losers in Automotive Parts Sector - Taixiang Co., Ltd. (code: 301192) experienced the largest decline, down 11.04% to 37.30 with a trading volume of 59,600 shares [2] - Changrun Co., Ltd. (code: 603201) fell by 9.36%, closing at 17.44 with a trading volume of 82,600 shares [2] - Qingdao Double Star (code: 6650000) decreased by 8.62%, closing at 7.00 with a trading volume of 2,072,900 shares [2] Capital Flow Analysis - The automotive parts sector saw a net inflow of 1.331 billion yuan from institutional investors, while retail investors experienced a net outflow of 429 million yuan [2] - The main capital inflow was concentrated in stocks like Shanzi Gaoke, which had a net inflow of 195.5 million yuan from institutional investors [3] - Other stocks with significant institutional inflows include Junsheng Electronics (40.8 million yuan) and Top Group (26.9 million yuan) [3]