Investment Rating - The report assigns a "Buy" rating to BYD (1211 HK), Desay SV (002920 CH), and Contemporary Amperex Technology (300750 CH) [54][60][65]. Core Insights - The China auto market has shown another double-digit year-on-year growth, with wholesale unit deliveries reaching 2.5 million units in June, marking a 14.5% increase year-on-year and a 7.8% increase month-on-month [1][7]. - The electric vehicle (EV) market is experiencing suboptimal growth, with EV penetration at 52.7% in June, which is below expectations and historical highs [1][7]. - Concerns are raised regarding the slowing growth of EV penetration, potentially due to aggressive pricing strategies from internal combustion engine (ICE) car manufacturers and the upcoming 50% cut to EV purchase tax exemptions starting next year [2][7]. Summary by Sections China Auto Market Performance - In 1H25, the China auto market reported a total of 13.5 million wholesale shipments, reflecting a 12.9% year-on-year growth, while retail sales (excluding minivans) reached 10.9 million units, up 10.8% year-on-year [8]. - The overall growth momentum in 1H25 was slightly above expectations, supported by government subsidies for scrapping and trade-in programs [8]. Electric Vehicle Market - Monthly retail sales of PV EVs reached 1.1 million units in June, representing a 30.2% year-on-year increase [1][9]. - The report highlights that BEVs outperformed PHEVs/EREVs in terms of growth, with BEVs showing 45% year-on-year growth in wholesale shipments during 1H25 [9]. OEM Strategies and Market Dynamics - OEMs are currently preparing their strategies for 2H25, with expectations of model launches and adjustments in response to government policies against over-competition [3]. - BYD remains a top pick due to its strategies aimed at regaining market share, including reducing SKUs and improving model features without price increases [4]. Battery Market Insights - EV battery installations grew by 35.9% year-on-year to 58.2 GWh in June, with total installations for 1H25 reaching 300 GWh, a 47.3% increase year-on-year [5]. - CATL and BYD maintained their market leadership in the battery sector, holding 43.7% and 21.5% market shares, respectively [5]. Lithium Market Trends - The price of lithium carbonate in China rebounded from a low of CNY 60,000 per tonne in late June to CNY 63,000 per tonne in early July [5][48]. - The report anticipates potential downside risks to lithium production in July due to weakened demand and government interventions [5][48].

Investment Rating - The report maintains a "Recommended" rating for the automotive industry [1] Core Views - The automotive sector is expected to benefit from the continuation of the vehicle replacement policy, which is anticipated to support consumer demand and sales growth in 2025 [16] - The report highlights a new phase of domestic brands entering a strategic offensive towards high-end development, with companies offering quality products priced above 300,000 yuan likely to benefit significantly [16] - The report emphasizes the potential for high-level intelligent driving technologies to become more affordable, which could increase their penetration rates [16] Summary by Sections Recent Trends - The automotive sector underperformed compared to the Shanghai Composite Index, with a weekly decline of 0.4% from July 7 to July 11, 2025, while the Shanghai Composite Index rose by 1.1% [17] - In June 2025, the wholesale volume of automobiles reached 2.904 million units, a year-on-year increase of 13.8% [30] Key Company Recommendations - Recommended companies include: - Li Auto, JAC Motors, Geely, SAIC Group, BYD, Great Wall Motors for high-end supply [16] - XPeng Motors, Huayang Group, Desay SV, and Coboda for intelligent driving technologies [16] - Top Group, Sanhua Intelligent Control, and Beite Technology for robotics production [16] - Fuyao Glass, Xingyu Co., and Yinlun Co. for quality auto parts [16] - Foton Motor and China National Heavy Duty Truck for commercial vehicles [16] Earnings Forecasts - Key companies and their projected earnings per share (EPS) for 2024, 2025E, and 2026E include: - Yinlun Co.: 0.92, 1.28, 1.59 [49] - Baolong Technology: 1.44, 2.56, 3.22 [49] - BYD: 13.84, 18.15, 22.13 [49] - Li Auto: 4.16, 5.43, 8.33 [49]

Meeting Overview - The first meeting of the 2025 Employee Stock Ownership Plan (ESOP) was held on July 11, 2025, both in-person and via communication methods, with 100% attendance from the holders [1] - The meeting was convened and presided over by the company's board secretary, ensuring compliance with the relevant regulations of the ESOP [1] Resolutions Passed - A management committee was established to oversee the ESOP, consisting of three members, with a term aligned with the duration of the ESOP [1][2] - The committee members elected were Xiong Wenquan, He Zhiliang, and Li Lele, all of whom do not hold more than 5% of the company's shares and have no related party relationships with major stakeholders [2] Committee Responsibilities - The management committee is authorized to handle various tasks, including convening meetings, supervising daily management, managing accounts, and representing holders in exercising shareholder rights [3][4] - The committee will also manage the assets of the ESOP, coordinate with professional consulting institutions, and handle matters related to the registration and distribution of benefits [3][4]

惠州市德赛西威汽车电子股份有限公司 证券代码：002920 证券简称：德赛西威 公告编号：2025-054 惠州市德赛西威汽车电子股份有限公司 关于 2025 年员工持股计划首次持有人大会决议的公告 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、 误导性陈述或重大遗漏。 一、会议召开情况 惠州市德赛西威汽车电子股份有限公司（以下简称"公司"）2025 年员工持股 计划（以下简称"持股计划"）首次持有人大会会议于 2025 年 7 月 11 日以现场及 通讯方式召开。本次会议由公司董事会秘书章俊先生召集并主持，持有人应参会 67 人，实际参会 67 人，代表员工持股计划份额 167,994,820 份（每份份额为 1 元），占 2025 年员工持股计划总份额数的 100%。本次会议召集、召开和表决程 序符合公司 2025 年员工持股计划的有关规定。 二、会议审议情况 1. 审议通过《关于设立公司 2025 年员工持股计划管理委员会的议案》 为保证本持股计划的顺利进行，保障持有人的合法权益，根据公司《2025 年 员工持股计划》《2025 年员工持股计划管理办法》等相关规定，同意设立本持股 ...

Group 1: Company Overview - Desay SV Automotive Co., Ltd. is focused on expanding its capabilities in R&D innovation, customer service, and safety verification to meet diverse customer needs [2] - The company is actively involved in the development of intelligent driving technologies, which are expected to accelerate commercialization and drive business growth [2] Group 2: Overseas Capacity Expansion - The company has established production operations in Germany, with the Spanish factory under construction, expected to be completed by the end of 2025 and start supplying products in 2026 [4] - The German and Spanish factories primarily serve European clients such as Volkswagen and Volvo [4] - In Southeast Asia, the company is building localized manufacturing and service capabilities, with a factory in Mexico to serve North and South American clients [4] Group 3: Order Status - In 2022, the company secured new project orders with an annual sales revenue exceeding 20 billion CNY [4] - In 2023, the annual sales revenue from new project orders is expected to exceed 24.5 billion CNY [4] - For 2024, the projected annual sales revenue from new project orders is over 27 billion CNY, with overseas new project orders exceeding 5 billion CNY, representing a year-on-year growth of over 120% [4]

Summary of Key Points Core Viewpoint - The recent block trading activity of Desay SV Automotive indicates significant institutional interest, with a total transaction volume of 644,000 shares and a transaction value of 60.81 million yuan, reflecting a discount of 7.86% compared to the closing price on the same day [2][3]. Trading Activity - On July 9, Desay SV Automotive experienced 10 block trades, with an average transaction price of 94.43 yuan per share [2][3]. - The closing price for Desay SV Automotive on the same day was 102.48 yuan, marking a 0.93% increase, with a trading volume of 560 million yuan and a net inflow of 19.71 million yuan in main funds [2][3]. - Over the past five days, the stock has seen a cumulative increase of 2.07%, although there was a net outflow of 34.78 million yuan in funds during this period [2][3]. Margin Financing - The latest margin financing balance for Desay SV Automotive stands at 872 million yuan, which has decreased by 36.10 million yuan over the past five days, representing a decline of 3.98% [3].

Group 1: New Energy Vehicle Industry - The China Securities New Energy Vehicle Industry Index (930997) increased by 0.39%, with key stocks like Defu Technology (301511) rising by 3.57% and Huayou Cobalt (603799) by 2.92% [1] - The National Development and Reform Commission and other departments announced plans to establish over 100,000 high-power charging facilities by the end of 2027, aiming for improved service quality and technology upgrades [1] - CITIC Securities forecasts that domestic electric vehicle sales will reach 16.52 million units in 2025, with a year-on-year growth rate of 15-22% expected in 2026 [2] Group 2: Photovoltaic Industry - The China Securities Photovoltaic Industry Index (931151) rose by 0.15%, with major stocks like Sungrow Power (300274) increasing by 1.62% [4] - The top ten weighted stocks in the photovoltaic index account for 55.39% of the total index, indicating a concentrated market [9] Group 3: Automotive Parts Industry - The China Securities Automotive Parts Theme Index (931230) increased by 0.29%, with stocks like Zhengmei Machinery (601717) rising by 2.51% [4] - The top ten weighted stocks in the automotive parts index represent 41.05% of the total index, highlighting key players in the sector [9] Group 4: New Materials Industry - The China Securities New Materials Theme Index (H30597) rose by 0.50%, with stocks like Yake Technology (002409) increasing by 4.58% [6] - The top ten weighted stocks in the new materials index account for 51.27% of the total index, showcasing significant contributors to the industry [10]

6 July 2025 | 2:08PM HKT Desay SV (002920.SZ): Mgmt. visit: Smart driving continues to grow; full stack solutions to accelerate deployment We visited Desay SV in Huizhou recently. Management remains positive on the smart driving trend, domain controllers growth, full stack solutions, and ongoing costs control and operation efficiency. We are positive on Desay SV's product expansion from smart cockpit to smart driving and automotive software, supporting them to better ride on the growing smart driving trend ...

Investment Rating - The report maintains a "Positive" investment rating for the automotive industry, particularly focusing on the mid-to-high-end market and strong alpha companies [3][4]. Core Insights - The Chinese automotive market is transitioning between the third and fourth consumption eras, with a notable expansion in mid-to-large SUVs and personalized products, indicating untapped consumer potential [4]. - The report emphasizes the importance of innovative supply to stimulate market demand, highlighting products like Yu7, Zun Jie S800, and upcoming models from Li Auto as key drivers [4]. - The report suggests continued attention to strong alpha manufacturers such as Li Auto, JAC, Xiaomi, and Seres, as well as their corresponding supply chain companies [4]. Industry Update - Retail sales of passenger cars reached 570,000 units in the 26th week of 2025, with a month-on-month decrease of 1.38%. Traditional energy vehicles sold approximately 274,000 units, down 7.43%, while new energy vehicles sold 296,000 units, up 4.96%, achieving a penetration rate of 51.93% [4]. - The automotive industry experienced a total transaction value of 425.645 billion yuan this week, reflecting a week-on-week decrease of 5.01% [4]. - The automotive industry index rose by 0.10% this week, while the Shanghai and Shenzhen 300 index increased by 1.54%, indicating that the automotive sector's performance was below the broader market [11]. Market Conditions - The report notes that 123 automotive stocks rose while 159 fell this week, with the largest gainers being TaoTao Automotive, Hunan Tianyan, and Zhengyu Industrial, which saw increases of 29.8%, 21.0%, and 18.3%, respectively [15]. - Key events include the launch of the Xiaopeng G7, which exceeded pricing expectations and features advanced autonomous driving capabilities, and the opening of BYD's factory in Brazil, enhancing its presence in the Latin American market [5][8]. Investment Recommendations - The report recommends focusing on domestic strong alpha manufacturers such as BYD, Geely, and Xiaopeng, as well as companies involved in the trend of smart technology, including Jianghuai Automobile and Seres [4]. - It also suggests monitoring state-owned enterprise reforms, particularly with SAIC Motor, and identifying component manufacturers with strong growth potential, such as Fuyao Glass and New Spring [4]. Key Events - Xiaopeng G7 was launched with a starting price of 195,800 yuan, featuring advanced AI capabilities and a significant increase in autonomous driving performance [5][41]. - BYD's new factory in Brazil aims for an annual production capacity of 150,000 vehicles, with plans to expand to 300,000 units, marking a significant step in its global strategy [8][9].

Core Viewpoint - The company has completed the registration of its 2025 stock option incentive plan, granting 2.858 million options to 298 recipients, with the registration date set for July 1, 2025 [1][4]. Approval Procedures - The company held its fourth board meeting on May 23, 2025, approving the draft of the 2025 stock option incentive plan and related matters [1][2]. - The supervisory board also approved the plan and verified the list of incentive recipients [2]. - A public notice regarding the incentive recipients was made from May 24 to June 2, 2025, with no objections received [2]. - The second extraordinary general meeting of shareholders on June 9, 2025, approved the incentive plan and authorized the board to handle related matters [3]. Granting Details - The stock options were granted on June 9, 2025, with a total of 2.858 million options at an exercise price of 86.09 yuan per option [4][6]. - The options are designated as "Xiwai JLC1" with the code 037907 [4][14]. Distribution and Validity - The options are distributed among 298 recipients, with the total number of options remaining unchanged despite two recipients voluntarily waiving their options [5][13]. - The validity period of the incentive plan is up to 43 months, with different waiting periods of 12 and 31 months for the recipients [8]. Performance Assessment - The performance assessment for the incentive plan will occur in the fiscal years 2025 and 2027, with specific revenue and net profit targets set for each year [10]. - Individual performance evaluations will determine the actual number of options that can be exercised, categorized into four performance levels [11][12]. Financial Impact - The company will use the Black-Scholes model to calculate the fair value of the options, with the cost of the options being amortized from 2025 to 2028 [14].