Investment Rating - The report assigns an "Accumulate" rating for the automotive industry [22]. Core Insights - The report forecasts that the wholesale sales of passenger vehicles in China will reach 30.21 million units in 2026, reflecting a year-on-year increase of 1%. The sales of new energy passenger vehicles are expected to be approximately 16.85 million units, with a year-on-year growth of 10% [20][21]. - The report highlights that the overall passenger vehicle market in December 2025 saw a wholesale sales volume of 2.814 million units, a decrease of 9% year-on-year and a decrease of 7% month-on-month. For the entire year of 2025, the wholesale sales volume was 29.908 million units, an increase of 9% year-on-year [7][20]. Summary by Sections 1. Total Passenger Vehicle Sales - In December 2025, the total wholesale sales of passenger vehicles in China were 2.814 million units, down 9.4% year-on-year and down 7.0% month-on-month. The wholesale sales of new energy passenger vehicles were 156.3 thousand units, up 3% year-on-year and down 8% month-on-month. For the entire year of 2025, the wholesale sales of passenger vehicles reached 29.908 million units, up 9% year-on-year, while new energy passenger vehicle sales were 1.5319 million units, up 25% year-on-year [7][8]. 2. Key Automotive Companies' December Sales - **BYD**: In December, BYD delivered 420 thousand new vehicles, down 18% year-on-year and down 12% month-on-month. The overseas sales reached 132 thousand units, up 130% year-on-year [8][9]. - **Geely**: In December, Geely delivered 237 thousand new vehicles, up 13% year-on-year. The 2026 sales target is set at 3.45 million units, a 14% increase from 2025 [10]. - **Changan**: In December, Changan delivered 257 thousand new vehicles, down 19% year-on-year. The 2026 sales target is 3.3 million units, a 13% increase from 2025 [12]. - **Great Wall Motors**: In December, Great Wall Motors delivered 124 thousand new vehicles, down 8% year-on-year. The company launched the "Guiyuan Platform" globally [13][14]. - **Li Auto**: In December, Li Auto delivered 44 thousand new vehicles, down 24% year-on-year. The OTA 8.2 version was fully pushed [15]. - **Leap Motor**: In December, Leap Motor delivered 60 thousand new vehicles, up 42% year-on-year. The 2026 sales target is set at 1 million units [16][17]. - **Xpeng Motors**: In December, Xpeng Motors delivered 38 thousand new vehicles, achieving growth in both year-on-year and month-on-month comparisons. The 2025 cumulative delivery was 429 thousand units, up 126% year-on-year [18][19]. 3. Policy Impact and Market Outlook - The report notes that the effectiveness of the old-for-new vehicle policy is expected to diminish, with the total number of vehicles replaced exceeding 11.5 million in 2025, of which nearly 60% were new energy vehicles. The new policy for 2026 will shift from fixed subsidies to a "proportional subsidy + cap" model [20]. - The report anticipates that the reduction in new energy vehicle purchase tax incentives will lead to a more competitive market, pushing the industry towards higher performance and efficiency standards [21].

Investment Rating - The report indicates a strong investment opportunity in the small electric vehicle (EV) market, particularly for Chinese brands, which are projected to dominate the market by 2025 with a market share approaching 96% [4][6][13]. Core Insights - The small electric vehicle market in China is experiencing rapid growth, with sales expected to increase from less than 500,000 units in 2020 to over 3 million units by 2025, representing a growth rate of over six times [4][6]. - Chinese brands are the primary beneficiaries of this growth, contributing significantly to the overall market share increase of Chinese brands from over 30% to more than 60% during the same period [6][13]. - Despite the growth, small electric vehicles are characterized by low profit margins, leading some manufacturers to hesitate in fully committing to this segment [6][13]. - The small electric vehicle segment is not only about low-cost sales but also attracts a significant number of quality users, with nearly 60% of small electric vehicle users coming from households that previously owned foreign brands, predominantly female users [23][25][49]. Summary by Sections Market Growth - From 2020 to 2025, the sales of small electric vehicles in China are projected to rise dramatically, with a market share increase from less than 3% to over 14% of total passenger vehicle sales [4][6]. - The strong rise of small electric vehicles has been a key factor in the recovery of several Chinese brands, such as Wuling and Geely, which have seen significant sales rebounds due to their small electric offerings [13]. User Demographics - The small electric vehicle market is attracting a new demographic, particularly women, who make up over 80% of the users from foreign brand households [25][29]. - The shift in user demographics is helping to improve the brand image of Chinese manufacturers, as these users are increasingly satisfied with their small electric vehicle experiences [31][34]. Competitive Landscape - The report highlights that major foreign brands like Volkswagen and Toyota are struggling to compete against the rising dominance of Chinese brands in the small electric vehicle market [13][70]. - The competitive landscape is shifting, with Chinese brands not only capturing market share but also redefining the user upgrade ecosystem that was previously dominated by foreign brands [56][70]. Cost Advantages - Small electric vehicles offer significant cost advantages over traditional fuel vehicles, which is a critical factor in their growing popularity [66]. - The comprehensive cost of ownership for small electric vehicles is lower than that of comparable fuel vehicles, making them an attractive option for consumers [67]. Future Outlook - The report anticipates that the small electric vehicle segment will continue to grow, with a potential market size approaching 5 million units by 2030, which could further challenge foreign brands [13][70]. - As the small electric vehicle market matures, it is expected that foreign brands will need to adapt their strategies to remain competitive, particularly in the face of changing consumer preferences and cost structures [68][70].

Group 1: Events and Forums - The "Dubai Business Forum - China" will take place in Shenzhen on May 14, 2026, focusing on the theme "Working Together for New Economic Growth" to introduce Dubai's economic agenda (D33) and explore new paths for cooperation and strategic investment between Chinese and Dubai businesses [2] Group 2: Company Developments - Over 50 brands, including Honor, Baseus, and Nubia, have signed with AliExpress for the "Super Brand Going Global Plan" to accelerate overseas market expansion, particularly in high-value categories like consumer electronics and smart hardware [3] - Eagle Network's new game "Arknights: Endfield" has launched globally, supported by Alibaba Cloud to handle high concurrency demands during the launch, ensuring smooth operation and real-time player interaction [3] - TikTok Shop in Southeast Asia is projected to double its GMV by 2025, with daily GMV increasing by 90% year-on-year, indicating a significant consumption upgrade in the region [4] - Ninebot has initiated Malaysia's first autonomous vehicle testing project in collaboration with local postal and logistics companies, with over 16,000 autonomous vehicles already operating globally [4] - Jiutian Chuangzhi signed a multi-million dollar order in Oman for autonomous cleaning vehicles, expanding its market reach to Malaysia, Turkey, and Palestine [5] - Cao Cao Mobility plans to deploy 100,000 customized Robotaxis globally by 2030, transitioning towards unmanned operations [5] - Baidu's "Luobo Kuaipao" has launched a fully autonomous driving service in Abu Dhabi, marking its first overseas public service [6] - Cainiao's global overseas warehouse order volume is expected to grow by 32% year-on-year by 2025, with plans for expansion and automation upgrades in key markets [6] - JD Logistics and Honor are collaborating to build overseas warehouses in the Middle East, aiming to support Honor's mobile phone sales in Saudi Arabia [6] - Ant International's Alipay+ has connected with Italy's Tinaba digital wallet, enabling seamless payment solutions for Chinese merchants [7] - UBTECH has partnered with Airbus to deploy humanoid robots in manufacturing processes, with significant order growth expected in the coming years [7] - Longi Green Energy is collaborating with NeoVolta to build an 8GWh battery storage manufacturing plant in Georgia, USA, to meet growing energy storage demands [7] Group 3: Investment and Financing - Zhongke Kelan has completed a multi-million angel round financing to accelerate product development and international expansion of its biodegradable plastics [8] - Yanhua Technology has secured nearly 100 million yuan in A1 round financing to enhance production capacity and global market reach for its perovskite solar cells [8] - Muxin Intelligent has completed a B round financing exceeding 100 million yuan, focusing on product development and global market channel expansion [9] Group 4: Market Trends - The overseas micro-short drama market is expected to exceed $5 billion by 2026, with Chinese apps capturing 90% of the market share [10] - Despite high tariffs, Chinese electric vehicle sales in Europe surged by 127% year-on-year in December 2025, with market share doubling to 9.5% [10]

Core Insights - The "Guohuo Hang Tianxia" Spring Action for consumer electronics was launched in Shenzhen, highlighting the city's role as a global hub for the electronics industry, supported by a robust manufacturing base, innovative ecosystem, efficient supply chain, and strong policy backing [1] Group 1: Industry Growth and Ecosystem - Shenzhen's smart terminal industry cluster achieved a value-added output of 204.55 billion yuan in 2024, marking a year-on-year growth of 9.9% [2] - Major products such as smartphones and color TVs account for over one-fifth of national production, with smart watch production exceeding 45 million units and notebook computer production nearing 7 million units, maintaining a leading position in the country [2] - The complete consumer electronics industry chain in Shenzhen includes R&D design, key component manufacturing, high-end manufacturing, marketing, and brand services, featuring companies like Huawei, Honor, DJI, and others [2][4] Group 2: Innovation and Global Recognition - At the 2026 CES, Shenzhen showcased 350 companies with cutting-edge technologies, including the world's first 8K panoramic drone and a compact 3D camera, demonstrating significant innovation capabilities [5] - Shenzhen companies won 32 awards at CES, accounting for 7% of the total global awards, indicating a strong competitive edge in innovation [5] - In the 2025 Best Inventions list by Time magazine, Shenzhen contributed 31 out of 43 Chinese products, showcasing its leadership in various advanced categories [5] Group 3: Policy Support and Investment - Shenzhen has established a comprehensive policy support system for the high-quality development of the consumer electronics industry, including funding and top-level design [6] - The city launched a 5 billion yuan investment fund in 2025 to support key categories such as AI smartphones and intelligent imaging devices, ensuring financial backing for technological development and capacity expansion [6] - A national AI application pilot base for mobile terminals was approved in collaboration with Dongguan, focusing on practical AI product solutions [6][8]

Industry Trends - In 2026, companies will focus on localized operations and technology-driven overseas warehouse systems, particularly in the U.S. market, enhancing operational efficiency through "micro-headquarters" that integrate marketing, customer service, and supply chain[1] - By 2025, 44% of Chinese companies have developed detailed plans for the Middle East, with 40% achieving profitability, indicating a shift from rapid expansion to meticulous cultivation in this market[2] - AI is reshaping marketing strategies, with over 70% penetration in influencer marketing and precise targeting, significantly improving brand exposure and sales[4] - The Chinese robotics industry is transitioning from product export to brand globalization, with a 54.9% increase in industrial robot exports in the first three quarters of 2025[4] Brand Dynamics - Alibaba's AliExpress aims to enhance brand globalization through overseas warehouse services, targeting a tenfold increase in GMV for participating merchants[13] - Pop Mart's overseas revenue surged from 137 million yuan to 5.593 billion yuan in four years, attributed to a shift from a distributor model to direct sales and the implementation of a cloud ERP system[14] - Jitu Express reported a 300 billion package volume in 2025, with overseas business accounting for nearly 30% of total operations, driven by a 67.8% growth in Southeast Asia[16] - The pet brand Vetreska achieved over $30 million in sales in two years by targeting North American middle-class consumers and utilizing localized marketing strategies[18]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [5][17]. Core Insights - The automotive sector has shown positive momentum, with the Shenwan Automotive Index rising by 3% in the past week and 9% over the past month. The new energy vehicle index increased by 2% weekly and remained flat monthly, while the automotive parts index rose by 4% weekly and 15% monthly [2][8]. - The domestic humanoid robot market is experiencing significant growth, with major manufacturers achieving substantial production milestones. For instance, Yushu's humanoid robot shipments exceeded 5,500 units in 2025, indicating a shift towards mass production [15]. - The Robotaxi industry is advancing rapidly, with plans for extensive deployment by companies like Cao Cao Mobility, which aims to introduce 100,000 fully customized Robotaxis by 2030 [16]. Summary by Sections 1. Industry Weekly Market Review - The Shenwan Automotive Index increased by 3% in the week of January 16-23, 2026, and by 9% over the past month. The new energy vehicle index rose by 2% weekly but was flat monthly, while the automotive parts index saw a 4% weekly increase and a 15% monthly increase [8][9]. 2. Domestic Humanoid Robots - The humanoid robot market in China is entering a rapid growth phase, with leading manufacturers achieving significant production volumes. Yushu and Zhiyuan have both reported substantial shipment numbers, indicating a breakthrough in mass production capabilities [15]. 3. Robotaxi Industry Acceleration - Cao Cao Mobility is set to deploy 100,000 Robotaxis by 2030, with ongoing trials for their second-generation models. This initiative is expected to enhance the application of AI in transportation and contribute to the subscription-based vehicle market [16]. 4. Investment Strategy and Recommendations - The report suggests focusing on companies that can leverage the growing demand for humanoid robots and recommends key players such as Dechang Motor Holdings and Haoneng Co. The report also highlights the competitive landscape in the passenger vehicle market, suggesting differentiation strategies for companies like Great Wall Motors and SAIC Motor [17].

Group 1 - The Beijing government has proposed measures to promote the development and utilization of commercial satellite remote sensing data, encouraging capable enterprises to engage in mergers and acquisitions to create globally competitive leading companies [3] - The US stock market experienced a significant outflow of nearly $17 billion amid tariff threats from President Trump regarding Greenland, with India reducing its holdings of US Treasury bonds to $174 billion, a 26% decrease from its peak in 2023 [3] - Nvidia's founder Jensen Huang visited China for the first time in 2026, meeting employees and reviewing major events from 2025, indicating ongoing engagement with the Chinese market [3] Group 2 - In early 2026, the Beijing Stock Exchange saw a surge in new stock listings, with three companies going public and significant interest in specialized enterprises, leading to a record high in frozen funds for new stock subscriptions [6] - The commercial aerospace leader, China Aerospace Science and Industry Corporation, has completed its IPO counseling process, indicating a growing interest in the commercial space sector [6] - Eight banks in the A-share market reported positive net profit growth for 2025, with stable asset expansion and improved non-performing loan ratios, highlighting a resilient banking sector [6] Group 3 - The 2026 Beijing International Commercial Aerospace Exhibition will showcase cutting-edge technologies and solutions in the aerospace sector, reflecting China's advancements in this field [8] - The National Development and Reform Commission has issued guidelines to support the sustainable development of intercity railways, prioritizing key urban areas and restricting unauthorized projects [8] - The China Renewable Energy Society predicts that the new wind power installation capacity in 2026 will reach approximately 120 GW, indicating robust growth in the renewable energy sector [9]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [5][17]. Core Insights - The automotive sector has shown positive momentum, with the Shenwan Automotive Index rising by 3% in the past week and 9% over the past month. The new energy vehicle index increased by 2% weekly and remained flat monthly, while the automotive parts index rose by 4% weekly and 15% monthly [2][8][9]. - The domestic humanoid robot market is experiencing significant growth, with major manufacturers achieving substantial production and sales milestones. The Robotaxi industry is also advancing rapidly, with plans for large-scale deployment by companies like Cao Cao Mobility [15][16]. - The report emphasizes the importance of identifying high-value technology routes and companies with inherent advantages, particularly in the humanoid robot and automotive sectors [17]. Summary by Sections 1. Industry Weekly Market Review - The Shenwan Automotive Index increased by 3% in the week of January 16-23, 2026, and by 9% over the month. The new energy vehicle index rose by 2% weekly and remained flat monthly, while the automotive parts index increased by 4% weekly and 15% monthly [8][9]. - Notable stocks with significant gains over the past month include Chaojie Co., Hengbo Co., and Wanxiang Qianchao, while stocks with notable declines include Haima Automobile and Aolian Electronics [10][11][13]. 2. Domestic Humanoid Robots - The humanoid robot market in China is rapidly expanding, with Utree achieving over 5,500 units shipped in 2025. Other companies like Zhiyuan also reported significant production numbers, indicating a shift towards mass production [15]. 3. Robotaxi Industry Acceleration - Cao Cao Mobility plans to deploy 100,000 fully customized Robotaxis by 2030, with ongoing trials for their second-generation models. This sector is seen as a critical application for AI technology [16]. 4. Investment Strategy and Recommendations - The report suggests focusing on companies that can leverage the growing demand for humanoid robots and recommends leading firms in electric motors and reducers. It also highlights the competitive landscape for passenger vehicles and suggests companies like Great Wall Motors and BYD for long-term investment [17].

Core Viewpoint - The article highlights the significant growth of Chinese electric vehicle manufacturers in the European market, despite challenges such as high tariffs and local competition. Chinese brands have achieved remarkable sales increases, indicating a shift in the automotive landscape in Europe [5][20]. Group 1: Market Performance - In December 2025, the European automotive market is projected to reach sales of 1.15 million units, a year-on-year increase of 7.6%. Chinese automakers' monthly sales in Europe surpassed 100,000 units for the first time, totaling 109,900 units, representing a 127% increase, with a market share of 9.5% [5]. - For the entire year of 2025, the European market is expected to sell 13.3 million vehicles, a 2.3% increase year-on-year. Sales of pure electric vehicles are projected to grow by 30%, while plug-in hybrid vehicles are expected to increase by 34%. Chinese manufacturers are anticipated to sell 810,000 units in Europe, a 99% increase, capturing a market share of 6.1% [5]. Group 2: Brand Performance - SAIC MG emerged as the top-selling Chinese passenger car brand in Europe, selling 307,000 vehicles in 2025, a 26% increase, ranking 16th overall in the market [7]. - BYD achieved sales of 187,000 units, a staggering 276% increase, moving up from 31st to 22nd place in the rankings [10]. - Chery's Jaecoo and Omoda brands ranked third and fourth, with sales of 56,944 and 52,950 units, respectively. Chery's total sales in Europe reached 120,207 units, significantly up from 17,000 units in 2024 [14]. Group 3: Strategic Insights - MG's success is attributed to its British heritage and localized design efforts, which resonate well with European consumers. The brand's pricing strategy, with models priced below £20,000, has also contributed to its strong performance despite high tariffs on Chinese electric vehicles [8][7]. - BYD's focus on meeting consumer needs for hybrid vehicles, particularly with the Seal U model, has allowed it to capture significant market share in the competitive mid-size SUV segment [10][11]. - The article notes that Chinese automakers are not relying on low-cost strategies but are instead redefining personal mobility through smart technology, efficiency, and enhanced user experience [20]. Group 4: Future Outlook - The article anticipates that from 2026 to 2028, Chinese electric vehicle exports to the EU will maintain an annual growth rate of around 20%, positioning them as a key driver of global electric vehicle market growth [20]. - The ongoing negotiations between China and the EU regarding electric vehicle subsidies may lead to a more favorable trading environment, allowing Chinese manufacturers to adapt and thrive in the European market [20].

Group 1 - The company, Teruid, is advancing its global strategy by planning to issue H-shares for listing on the Hong Kong Stock Exchange to enhance its international brand image and competitiveness [3] - Teruid was founded in 2004 and became the first company listed on the Growth Enterprise Market in 2009, currently holding a market value exceeding 30 billion and employing over 7,000 people [3][4] - The company operates in three main sectors: high-end box-type power equipment manufacturing, automotive charging ecosystem, and new energy microgrids [4] Group 2 - Teruid is a key participant and developer of technical standards for power products in China, providing services across various industries including state grids, railways, and data centers [4] - The company’s subsidiary, Telai Electric, is the largest operator of charging networks in China, managing 898,755 public charging facilities, which accounts for 18.88% of the market share [5] - In the context of carbon neutrality, Teruid offers customized full power system solutions for large industrial clients in the battery supply chain, with products utilized in projects by major companies like CATL and BYD [5]