Changjiang Securities·2025-11-11 10:13Investment Rating - The investment rating for the company is "Accumulate" and is maintained [9] Core Views - The company reported a significant decline in revenue and an increase in losses due to a decrease in market demand for fuel cells and cautious expansion strategies. The revenue for Q3 2025 was 0.32 billion, down 80.6% year-on-year, with a net profit attributable to the parent company of -1.48 billion, compared to -1.17 billion in the same period last year [2][6] - The overall market demand for the fuel cell industry has decreased, leading to a contraction in sales and profits. The company is expected to perform better in the future as it enters a phase of scaling down costs [2][6] Summary by Sections Financial Performance - For the first three quarters of 2025, the company achieved revenue of 1.04 billion, a decrease of 67.31% year-on-year. The net profit attributable to the parent company was -3.11 billion, compared to -2.58 billion in the same period last year. The net profit excluding non-recurring items was -3.12 billion, compared to -2.77 billion last year [6] - In Q3 2025, the company reported a revenue of 0.32 billion, a year-on-year decrease of 80.6%, and a net profit of -1.48 billion, which is a larger loss compared to -1.17 billion in the same quarter last year [6] Market and Industry Analysis - The fuel cell vehicle market in China is experiencing a downturn, with production and sales of fuel cell vehicles dropping by 46.8% and 46.6% respectively in the first nine months of 2025 [12] - The company has adopted a cautious marketing expansion strategy due to its current liquidity situation, which has contributed to the decline in revenue [12] - The gross margin for Q3 2025 was -6.18%, a decrease of 23.55 percentage points year-on-year, attributed to reduced economies of scale and increased unit costs [12] Future Outlook - The company is expected to generate revenues of 2.58 billion and 3.39 billion in 2025 and 2026, respectively, as it navigates through the current challenges in the fuel cell market [12]