Summary of Zhaowei Electromechanical Conference Call Company Overview - **Company**: Zhaowei Electromechanical - **Industry**: Electromechanical and Robotics Key Financial Performance - **Q3 2025 Revenue**: 468 million CNY, up 13.65% YoY and 11.83% QoQ [2][5] - **Q3 2025 Net Profit**: 67.96 million CNY, up 4% YoY and 16.04% QoQ [2][5] - **Q3 2025 Non-GAAP Net Profit**: 63.53 million CNY, up 13.98% YoY and 28.31% QoQ, marking the best quarterly performance since 2020 [2][5] - **YTD Revenue (Q1-Q3 2025)**: 1.255 billion CNY, up 18.7% YoY [3] - **YTD Net Profit**: 181 million CNY, up 13.86% YoY [3] - **YTD Non-GAAP Net Profit**: 166 million CNY, up 24.95% YoY [3] - **Gross Margin**: 32.66%, up 1.6 percentage points YoY, driven by higher automotive product margins [3] Business Segment Performance - **Smart Automotive Business**: - Accounts for over 60% of total revenue, growing 30% YoY [2][6] - Key drivers include increased average selling prices and successful new product launches [21] - **Smart Consumer and Medical**: - Accounts for approximately 30% of revenue, stable YoY [2][6] - **Advanced Industrial and Manufacturing**: - Accounts for nearly 10% of revenue, growing about 8% YoY [2][6] - **Robotics Business**: - Revenue exceeded 15 million CNY, with a growth rate of 200-300% [2][7] Product Development and Strategy - **Robotics**: - Focus on module sales, with significant collaboration with North American clients like F Company, Amazon, and Meta [7][25] - New products in the pipeline, including a new type of dexterous hand [4][9] - **Dexterous Hands**: - Transitioning to low-degree of freedom products to reduce costs and meet market demand [9][10] - High-degree of freedom products have potential but face challenges in market adoption [10][18] - **Micro Motors and Gearboxes**: - Ongoing collaboration with North American clients, currently in the validation phase [8][24] Future Outlook - **2025 Full-Year Growth Target**: - Expected to maintain over 30% growth [4][26] - **Profitability Goals**: - Gross margin projected to exceed 32%, with net profit around 15% [4][12] - **Human-like Robots**: - Anticipated revenue of over 100 million CNY in 2026 [12][13] Market Position and Competitive Advantage - **Automotive Sector**: - Continuous growth since 2020, driven by product penetration and customer expansion [21] - Collaborations with major automotive manufacturers like BYD, Great Wall, and Changan [21] - **International Collaboration**: - Partnerships with global leaders enhance revenue and technical capabilities [25] Additional Insights - **Challenges in High-Degree Dexterous Hands**: - While they offer versatility, they are not yet widely adopted due to complexity [23] - **Cost Management**: - Long-term goal to reduce costs of high-degree dexterous hands to make them more accessible [15][20] This summary encapsulates the key points from the conference call, highlighting Zhaowei Electromechanical's financial performance, business segments, product strategies, and future outlook.

Market Overview - The electric motor sector increased by 2.86% compared to the previous trading day, with Fangzheng Electric leading the gains [1] - The Shanghai Composite Index closed at 4007.76, up 0.97%, while the Shenzhen Component Index closed at 13452.42, up 1.73% [1] Stock Performance - Fangzheng Electric (002196) closed at 12.83, rising by 10.03% with a trading volume of 1.177 million shares and a transaction value of 142.3 million yuan [1] - Other notable performers include: - Jiadian Co. (000922) at 14.72, up 10.01% [1] - Zhaowei Electromechanical (003021) at 117.48, up 5.17% [1] - Kaizhong Precision (002823) at 18.38, up 4.97% [1] - Mingzhi Electric (603728) at 71.52, up 4.93% [1] Capital Flow - The electric motor sector saw a net inflow of 632 million yuan from institutional investors, while retail investors experienced a net outflow of 453 million yuan [2] - The main capital flow for key stocks includes: - Fangzheng Electric with a net inflow of 1.95 billion yuan [3] - Wolong Electric Drive (600580) with a net inflow of 167 million yuan [3] - Ocean Electric (002249) with a net inflow of 1.16 billion yuan [3]

Core Viewpoint - Zhaowei Electromechanical's stock price has shown significant volatility, with a year-to-date increase of 54.78%, but recent declines in the short term indicate potential market fluctuations [1][2]. Company Overview - Zhaowei Electromechanical, established on April 19, 2001, and listed on December 4, 2020, is based in Shenzhen, China, and specializes in the research, production, and sales of micro transmission systems, precision injection parts, and precision molds [2]. - The company's revenue composition includes micro transmission systems (63.25%), precision parts (30.44%), and precision molds and other products (6.31%) [2]. - As of September 30, 2025, the company had 51,000 shareholders, a decrease of 8.28% from the previous period, with an average of 4,066 circulating shares per shareholder, an increase of 9.63% [2]. Financial Performance - For the period from January to September 2025, Zhaowei Electromechanical reported a revenue of 1.255 billion yuan, representing a year-on-year growth of 18.70%, and a net profit attributable to shareholders of 181 million yuan, up 13.86% year-on-year [2]. - The company has distributed a total of 333 million yuan in dividends since its A-share listing, with 192 million yuan distributed over the past three years [3]. Shareholder Structure - As of September 30, 2025, the top ten circulating shareholders include Hong Kong Central Clearing Limited, which increased its holdings by 1.6249 million shares to 3.4455 million shares [3]. - New entrants among the top shareholders include the E Fund National Robot Industry ETF, holding 2.775 million shares [3].

Core Insights - Zhaowei Electromechanical's stock price has seen a year-to-date increase of 50.72%, but has recently experienced a decline of 7.11% over the past five trading days and 19.09% over the past 20 days [1] - The company reported a revenue of 1.255 billion yuan for the first nine months of 2025, reflecting a year-on-year growth of 18.70%, and a net profit attributable to shareholders of 181 million yuan, up 13.86% year-on-year [2] - The company has made cumulative cash distributions of 333 million yuan since its A-share listing, with 192 million yuan distributed over the past three years [3] Company Overview - Zhaowei Electromechanical, established on April 19, 2001, and listed on December 4, 2020, is based in Shenzhen, Guangdong Province [2] - The company's main business includes the research, production, and sales of micro transmission systems (63.25% of revenue), precision parts (30.44%), and precision molds and other products (6.31%) [2] - The company operates within the electric equipment industry, specifically in the motor sector, and is involved in various concept sectors such as robotics and medical devices [2] Shareholder and Institutional Holdings - As of September 30, 2025, Zhaowei Electromechanical had 51,000 shareholders, a decrease of 8.28% from the previous period, with an average of 4,066 circulating shares per shareholder, an increase of 9.63% [2] - The top ten circulating shareholders include Hong Kong Central Clearing Limited and several ETFs, with notable changes in holdings among institutional investors [3]

Company Overview - Shenzhen Zhaowei Electromechanical Co., Ltd. was established on April 19, 2001, and listed on December 4, 2020. The company is located in Shenzhen, Guangdong Province, and specializes in the research, production, and sales of micro transmission systems, precision injection parts, and precision molds. The main business revenue composition is as follows: micro transmission systems 63.25%, precision parts 30.44%, and precision molds and other products 6.31% [2]. Financial Performance - For the period from January to September 2025, Zhaowei Electromechanical achieved operating revenue of 1.255 billion yuan, representing a year-on-year growth of 18.70%. The net profit attributable to the parent company was 181 million yuan, with a year-on-year increase of 13.86% [2]. - Since its A-share listing, the company has distributed a total of 333 million yuan in dividends, with 192 million yuan distributed over the past three years [3]. Stock Performance - As of November 4, Zhaowei Electromechanical's stock price was 114.23 yuan per share, with a market capitalization of 27.496 billion yuan. The stock has increased by 55.15% year-to-date, but has seen a decline of 3.34% over the past five trading days and 17.64% over the past 20 days [1]. - The company has appeared on the "Dragon and Tiger List" seven times this year, with the most recent appearance on April 23, where it recorded a net purchase of 93.537 million yuan [1]. Shareholder Structure - As of September 30, 2025, the number of shareholders was 51,000, a decrease of 8.28% from the previous period. The average circulating shares per person increased by 9.63% to 4,066 shares [2]. - Among the top ten circulating shareholders, Hong Kong Central Clearing Limited is the fifth largest with 3.4455 million shares, an increase of 1.6249 million shares from the previous period. New entrants include E Fund National Robot Industry ETF with 2.775 million shares [3].

Core Insights - Zhaowei Electromechanical (003021.SZ) reported its Q3 2025 results, revealing that 22 institutional investors hold a total of 123 million shares, accounting for 51.26% of the company's total equity [1] - The top ten institutional investors collectively hold 50.81% of the shares, with an increase of 1.19 percentage points compared to the previous quarter [1] Institutional Holdings - The top institutional investors include Shenzhen Qianhai Zhaowei Financial Holdings Co., Ltd., and several investment partnerships, as well as major banks and funds [1] - The increase in holdings among the top ten institutional investors indicates growing confidence in Zhaowei Electromechanical [1] Public Fund Activity - Eight public funds increased their holdings, with a total increase of 1.39%, including notable funds like E Fund and Invesco Great Wall [2] - Three public funds reduced their holdings, with a decrease of 0.24%, including Penghua Carbon Neutral Theme Mixed A [2] - Five new public funds disclosed their holdings, while 171 funds were not disclosed in the current period [2] Foreign Investment - One foreign fund, Hong Kong Central Clearing Limited, increased its holdings by 0.68% compared to the previous period [2]

Core Viewpoint - Zhaowei Electromechanical is a leading enterprise in the micro drive system sector, focusing on R&D and production, with a strong technical foundation and full industry chain advantages [1] Group 1: Business Performance - In Q3 2025, Zhaowei Electromechanical reported revenue of 1.255 billion yuan, ranking 14th in the industry, significantly lower than the top competitors [2] - The main business composition includes micro drive systems at 498 million yuan (63.25%), precision parts at 239 million yuan (30.44%), and precision molds and other products at 49.639 million yuan (6.31%) [2] - The net profit for the same period was 181 million yuan, ranking 7th in the industry, outperforming the industry average [2] Group 2: Financial Ratios - As of Q3 2025, the asset-liability ratio was 19.58%, lower than the industry average of 35.64%, indicating strong solvency [3] - The gross profit margin was 32.24%, higher than the industry average of 21.03%, reflecting robust profitability [3] Group 3: Executive Compensation - The chairman, Li Haizhou, received a salary of 1.7784 million yuan in 2024, an increase of 538,100 yuan from 2023 [4] - The general manager, Ye Shubing, had a salary of 1.7792 million yuan in 2024, also reflecting a significant increase from the previous year [4] Group 4: Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 8.28% to 51,000 [5] - The average number of circulating A-shares held per shareholder increased by 9.63% to 4,066.22 [5] Group 5: Growth Drivers - The company experienced steady growth in automotive electronics, transitioning from precision components to system-level solutions, with long-term partnerships with major clients [6] - Humanoid robots emerged as a second growth engine, with breakthroughs in technology and the launch of the ZWHAND series products [6] - Plans for a new production base in Thailand with an investment of up to 100 million USD were approved by the board [6] - An application for H-share listing was submitted to the Hong Kong Stock Exchange to raise funds for global R&D and capacity expansion [6] Group 6: Market Outlook - The company is deeply engaged in the robotics sector, with innovative products in the pipeline, and projected net profits for 2025-2027 are estimated at 270 million, 328 million, and 418 million yuan respectively [7]

Core Viewpoint - The company reported continuous revenue and profit growth in Q3 2025, driven by strong demand in the smart automotive sector and advancements in humanoid robotics, maintaining a "buy" rating [1][2][5]. Group 1: Financial Performance - In Q3 2025, the company achieved revenue of 469 million yuan, a year-on-year increase of 13.65%, and a net profit attributable to shareholders of 68 million yuan, up 4.01% year-on-year [1]. - For the first three quarters of 2025, total revenue reached 1.255 billion yuan, reflecting an 18.7% year-on-year growth, while net profit attributable to shareholders was 181 million yuan, a 13.86% increase year-on-year [1]. - The gross margin for Q3 2025 was 32.69%, up 0.63 percentage points year-on-year, while the net margin was 14.5%, down 1.35 percentage points year-on-year [3]. Group 2: Business Segments and Growth Drivers - The automotive electronics segment showed steady growth, with the company transitioning from precision components to system-level solutions, achieving full coverage in body, chassis, and intelligent cockpit domains [2]. - The company made significant advancements in humanoid robotics, launching the ZWHAND series, which has reached industry-leading performance levels, positioning the company as a core supplier for international manufacturers [2]. Group 3: Research and Development - The company maintained a high R&D investment rate of 9.93% of revenue in Q3 2025, focusing on micro-drives, electronic control, and soft perception systems to strengthen its core technology advantages [3][4]. - A strategic partnership with Tujian Technology was established to enhance the humanoid robot ecosystem, reinforcing the company's long-term competitive edge in high-end intelligent manufacturing [4]. Group 4: International Expansion and Capital Strategy - In August 2025, the board approved an investment of up to 100 million USD to establish a new production base in Thailand, aimed at enhancing overseas capacity and local service [4]. - The company submitted an application for a Hong Kong listing in June, intending to raise funds for global R&D, capacity expansion, and strategic acquisitions, facilitating a shift from "Made in China" to "Global Operations" [4]. Group 5: Profit Forecast and Valuation - The company maintains its profit forecasts for 2025-2027, projecting net profits of 254 million, 315 million, and 393 million yuan respectively, supported by its technological capabilities in precision transmission and a growing product matrix in various innovative fields [5].

Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Insights - The company reported steady growth in revenue and net profit for Q3 2025, with revenue reaching 469 million RMB, a year-on-year increase of 13.65%, and net profit attributable to the parent company at 68 million RMB, up 4.01% year-on-year [1] - For the first three quarters of 2025, the company achieved revenue of 1.255 billion RMB, representing an 18.7% year-on-year increase, and a net profit of 181 million RMB, which is a 13.86% increase year-on-year [1] - The company is expanding its human-shaped robot ecosystem, focusing on the "drive-control-perception" full chain [1] Revenue and Profit Growth - The growth in revenue and profit is primarily driven by the sustained demand in the smart automotive sector [2] - The automotive electronics segment, a traditional core business, is transitioning from precision components to system-level solutions, achieving full coverage in body domain, chassis domain, and intelligent cockpit [2] - The company has established long-term partnerships with leading clients such as Bosch and BYD [2] Profitability and R&D Investment - The gross margin for Q3 2025 was 32.69%, an increase of 0.63 percentage points year-on-year, while the net margin was 14.5%, down 1.35 percentage points year-on-year [3] - The company maintains a high level of R&D investment, with R&D expenses accounting for 9.93% of revenue in Q3 2025, up 2.16 percentage points year-on-year [3] International Expansion and Innovation - The company is accelerating its international capacity layout, with plans to invest up to 100 million USD in a new production base in Thailand to enhance local service and supply chain resilience [4] - The company submitted an application for H-share listing in June 2025 to raise funds for global R&D, capacity expansion, and strategic acquisitions [4] - The company is focusing on collaborative innovation in micro-drives, electronic control, and flexible perception systems [4] Profit Forecast and Valuation - The forecast for net profit attributable to the parent company for 2025-2027 is 254 million RMB, 315 million RMB, and 393 million RMB respectively [5] - The company is expected to continue benefiting from its technological accumulation in precision transmission and the ongoing development of innovative products across various fields [5]

Core Points - The company guarantees the authenticity, accuracy, and completeness of the quarterly report, with all board members assuming legal responsibility for any misstatements or omissions [2][3] - The company has made retrospective adjustments to its accounting policies due to changes in accounting standards, specifically regarding the accounting treatment of quality assurance liabilities [3][4] - The third-quarter financial report has not been audited, indicating that the financial data may not have undergone external verification [7] Financial Data Summary - The company has implemented changes in accounting policies as per the "Interpretation No. 18 of the Accounting Standards for Enterprises," which affects the recognition of estimated liabilities related to quality assurance [3][4] - The adjustments made do not impact the main financial data and indicators presented in the report [4] - The company reported no non-recurring gains or losses during the quarter, indicating stable operational performance [5][6] Shareholder Information - There are no changes in the shareholding structure of the top ten shareholders or any significant shareholders due to securities lending activities [6][7] - The company has not reported any preferred shareholders or changes in their holdings [6][7] Other Important Matters - No other significant matters were reported in the quarterly financial disclosures [7][8]