Summary of Ningbo Xusheng Group Co Ltd 3Q25 Earnings Call Company Overview - **Company**: Ningbo Xusheng Group Co Ltd - **Industry**: China Autos & Shared Mobility - **Date of Earnings Call**: October 30, 2025 Key Financial Highlights - **3Q25 Earnings**: Increased by 70% YoY to Rmb99 million, primarily due to: - Gross margin improvement (+3.7 percentage points YoY) - Lesser impairment loss - Additional investment gains [1][2] - **Revenue**: Remained flat YoY at Rmb1,130 million, with an 8% QoQ increase [3] - **Gross Profit**: Increased by 21% YoY to Rmb242 million [3] - **Operating Profit**: Grew by 21% YoY to Rmb125 million [3] - **Net Profit**: Increased by 70% YoY, but decreased by 6% QoQ [3] - **Recurring Net Profit**: Rose by 96% YoY to Rmb91 million [3] - **Earnings Per Share (EPS)**: Decreased by 9% QoQ to Rmb0.10, but increased by 43% YoY [3] - **Gross Margin**: 21.5%, down 1.3 percentage points QoQ but up 3.7 percentage points YoY [3] Margin Analysis - **QoQ Gross Margin Decline**: Despite revenue growth, gross margin declined by 1.3 percentage points, indicating potential concerns regarding sustainability of margin improvements from energy storage systems (ESS) and material cost trends [2] Strategic Focus Areas - **Key Focus Areas for Future Growth**: 1. Winning new ESS projects 2. Securing new orders for factories in Mexico and Thailand 3. Progress in humanoid robotics [2] Market Position and Valuation - **Stock Rating**: Equal-weight - **Price Target**: Rmb12.00, indicating an 18% downside from the current price of Rmb14.71 [5] - **Market Capitalization**: Approximately Rmb13.73 billion [5] - **52-Week Price Range**: Rmb20.30 - Rmb9.96 [5] Risks and Opportunities - **Upside Risks**: - New project wins in humanoid robots - Higher value content per vehicle from product coverage expansion - Margin expansion from falling aluminum alloy costs [11] - **Downside Risks**: - Weaker-than-expected demand from Tesla - Margin contraction due to intensifying competition - Rising aluminum alloy costs [11] Conclusion Ningbo Xusheng Group Co Ltd demonstrated strong year-over-year earnings growth in 3Q25, driven by improved gross margins and investment gains. However, the company faces challenges in maintaining margin sustainability and navigating competitive pressures in the automotive sector. Future growth will depend on strategic project wins and cost management.

Investment Rating - The report maintains a "Buy-A" rating for the company with a 6-month target price of 18.45 CNY per share [4][8]. Core Views - The company reported a year-on-year improvement in Q3 2025 performance, with revenue of 1.13 billion CNY, up 0.41% year-on-year and 7.64% quarter-on-quarter, driven by increased shipments from major clients like Tesla, Li Auto, and BYD [2][3]. - The company's net profit for Q3 2025 reached 99 million CNY, a significant increase of 70.43% year-on-year, although it decreased by 5.5% quarter-on-quarter [2][3]. - The company is accelerating its transition towards humanoid robotics and expanding its global footprint, with new production capacities in Mexico and Thailand expected to enhance its support for global clients in new business areas [3][4]. Revenue Summary - Q3 2025 revenue was 1.13 billion CNY, with a year-on-year increase of 0.41% and a quarter-on-quarter increase of 7.64% [2]. - Major clients contributing to revenue growth include Tesla, which saw a quarter-on-quarter sales increase of 26% in Q3 2025, and Li Auto, which increased its sales by 1.4 thousand units [2]. Profitability Summary - The company's net profit for Q3 2025 was 99 million CNY, reflecting a year-on-year growth of 70.43% but a quarter-on-quarter decline of 5.5% [2]. - The gross margin for Q3 2025 was 21.45%, up 3.23% year-on-year but down 1.3 percentage points quarter-on-quarter, attributed to new projects ramping up and fluctuations in aluminum prices [2][3]. Future Outlook - The company is projected to achieve net profits of 440 million CNY, 600 million CNY, and 740 million CNY for 2025, 2026, and 2027 respectively, with corresponding PE ratios of 37, 27, and 22 times [4][6]. - The report anticipates a continued focus on expanding into humanoid robotics and energy storage, with significant investments in production capabilities in Mexico and Thailand [3][4].

Event Overview - The company released its Q3 2025 report, showing revenue of 3.226 billion yuan for the first three quarters, a year-on-year decrease of 1.48%. The net profit attributable to shareholders was 300 million yuan, down 7.16% year-on-year. In Q3 2025, revenue was 1.130 billion yuan, up 0.41% year-on-year and 7.64% quarter-on-quarter. The net profit attributable to shareholders for Q3 was 99 million yuan, a significant increase of 70.43% year-on-year but down 5.50% quarter-on-quarter. The non-recurring net profit was 91 million yuan, up 96.36% year-on-year and down 5.22% quarter-on-quarter [2]. Analysis and Judgment - Q3 2025 performance faced slight pressure while awaiting capacity ramp-up. Revenue for Q3 was driven by major customer Tesla, which delivered 497,100 vehicles globally, an increase of 7.39% year-on-year and 29.41% quarter-on-quarter. The gross margin for Q3 was 21.45%, up 3.23 percentage points year-on-year but down 1.30 percentage points quarter-on-quarter due to customer capacity ramp-up. The net profit margin was 8.78%, up 3.81 percentage points year-on-year and down 1.20 percentage points quarter-on-quarter. The financial expenses increased significantly quarter-on-quarter due to convertible bond interest [2][3]. Overseas Expansion - The company's Mexico factory officially commenced operations in June 2025, completing the core team setup and securing important customer orders through OTS sample deliveries. The factory aims to enhance capacity utilization through automation and achieve localized supply of lightweight products. Additionally, a factory in Thailand began construction in July 2025, focusing on serving the rapidly growing Southeast Asian market for new energy vehicles and high-end manufacturing [3][4]. New Business Development - The company is developing new businesses in energy storage and robotics, having established partnerships with several global energy storage system integrators. In the first half of 2025, revenue from energy storage products reached approximately 300 million yuan, showing significant growth. The company is also entering the humanoid robotics sector, focusing on the development of joint shells and torso structural components, with several domestic and international projects secured. Furthermore, the company has successfully developed semi-solid injection molded motor housings using magnesium alloy technology and is collaborating with a foreign client on a magnesium alloy electric drive housing project [5]. Investment Recommendations - The company is positioned as a strong beneficiary in the lightweight new energy vehicle sector, leveraging its advanced technology, research and development capabilities, and customer expansion efforts to rapidly capture market share. Revenue projections for 2025-2027 are 4.62 billion yuan, 5.40 billion yuan, and 6.20 billion yuan, respectively, with net profits of 420 million yuan, 550 million yuan, and 660 million yuan. Corresponding EPS estimates are 0.41 yuan, 0.54 yuan, and 0.64 yuan, with PE ratios of 36, 27, and 23 times, respectively, maintaining a "recommended" rating [5][6].

| 证券代码：603305 | 证券简称：旭升集团 | | 公告编号：2025-074 | | --- | --- | --- | --- | | 债券代码：113685 | 债券简称：升 24 | 转债 | | 截至 2025 年 10 月 31 日收市后，距离 11 月 10 日（"升 24 转债"最后交易 日）仅剩 6 个交易日，11 月 10 日为"升 24 转债"最后一个交易日。 最后转股日：2025 年 11 月 13 日 截至 2025 年 10 月 31 日收市后，距离 11 月 13 日（"升 24 转债"最后转股 日）仅剩 9 个交易日，11 月 13 日为"升 24 转债"最后一个转股日。 宁波旭升集团股份有限公司（以下简称"公司"）股票自 2025 年 9 月 16 日 至 2025 年 10 月 15 日，已有十五个交易日的收盘价格不低于"升 24 转债"当期 赎回登记日：2025 年 11 月 13 日 赎回价格：100.1677 元/张 赎回款发放日：2025 年 11 月 14 日 最后交易日：2025 年 11 月 10 日 宁波旭升集团股份有限公司 关于实施"升 24 转债 ...

Core Insights - Ningbo Xusheng Group (603305) reported a revenue of 1.13 billion yuan in Q3 2025, a year-on-year increase of 0.41% [1] - The net profit attributable to shareholders reached 99.21 million yuan, reflecting a significant year-on-year growth of 70.43% [1] - The net profit after deducting non-recurring gains and losses was 90.66 million yuan, up 96.36% year-on-year [1] - Basic earnings per share increased by 42.86% to 0.10 yuan [1] Financial Performance - The company's gross profit margin improved compared to the same period last year, contributing to profit growth [1] - Inventory impairment losses decreased compared to the previous year, further supporting profitability [1] - Net cash flow from operating activities reached 271 million yuan, a substantial increase of 201.30% year-on-year, primarily due to increased cash receipts from sales [1] Business Overview - The company specializes in the research, production, and sales of precision aluminum alloy components, focusing on lightweight solutions for clients [1] - Xusheng Group has established strong capabilities in material research, process development, and automated production line design [1] - The company has positioned itself as a leading player in the automotive precision aluminum alloy component sector, particularly in the new energy lightweight field [1] Product Applications - Xusheng Group's products are widely applicable in the fields of new energy vehicles, energy storage, and robotics [2] - The company offers a comprehensive range of core components, including vehicle body structural parts and high-precision robotic joints [2] - Continuous breakthroughs in multi-material technology have allowed the company to expand its material system, enhancing its competitive edge in emerging markets [2]

10月30日，由商务部投资促进事务局、宁波经济技术开发区管理委员会共同组织的"上市公司走进国家 级经开区（宁波）活动"成功举办。活动吸引来自高端制造、生命健康、集成电路、信息技术、人工智 能、新能源、新材料、机器人等领域的50余家上市公司、独角兽、制造业单项冠军、专精特新"小巨 人"企业以及金融、投资、专业咨询机构参加，共商投资合作。商务部投资促进局唐颂副局长出席活动 并致辞。宁波市委常委、北仑区委书记、宁波经开区党工委书记潘银浩，北仑区委副书记、区长、宁波 经开区管委会副主任、党工委副书记王程等主要领导出席活动。上市公司企业家交流中心等机构对本次 活动给予大力支持。 唐颂在致辞中表示，本次活动旨在落实《深化国家级经济技术开发区改革创新以高水平开放引领高质量 发展工作方案》要求，搭建上市公司与国家级经开区务实合作平台，为宁波经开区因地制宜发展新质生 产力、实现高质量发展注入新动能，希望各方把握机遇，充分交流对接，收获合作硕果。 王程在致辞中表示，宁波经开区作为港通天下的开放高地、聚链成势的产业高地、热潮涌动的科创高 地，欢迎各位企业家亲身感受这片开放前沿热土的发展活力和营商温度，开辟拓展新赛道新业态。 在主题 ...

Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook based on its market position and growth potential [4][6]. Core Insights - The company reported a revenue of 3.226 billion yuan for the first three quarters of 2025, a slight decrease of 1.48% year-on-year, with a net profit attributable to shareholders of 300 million yuan, down 7.16% year-on-year [1]. - In Q3 2025, the company achieved a revenue of 1.130 billion yuan, reflecting a year-on-year increase of 0.41% and a quarter-on-quarter increase of 7.64%. The net profit for the same quarter was 99 million yuan, up 70.43% year-on-year [2][3]. - The company is expanding its international presence with the launch of its factory in Mexico and the construction of a facility in Thailand, aimed at enhancing production capacity and serving the growing electric vehicle market [3]. Summary by Sections Financial Performance - For Q3 2025, the gross margin was 21.45%, an increase of 3.23 percentage points year-on-year, while the net profit margin was 8.78%, up 3.81 percentage points year-on-year [2]. - The company expects revenues of 4.62 billion yuan in 2025, with net profits projected at 418 million yuan, and EPS of 0.41 yuan [5][9]. Business Development - The company is focusing on new business areas such as energy storage and robotics, with significant revenue growth in energy storage components, achieving approximately 300 million yuan in revenue in the first half of 2025 [3]. - The company is leveraging its expertise in magnesium alloy technology to develop new products, including motor housings, and has secured partnerships with international clients [3]. Market Outlook - The report forecasts revenue growth for the company, estimating revenues of 46.2 billion yuan in 2025, 54.0 billion yuan in 2026, and 62.0 billion yuan in 2027, with corresponding net profits of 4.2 billion yuan, 5.5 billion yuan, and 6.6 billion yuan respectively [4][5].

Core Insights - As of October 30, 2025, 13 institutional investors hold a total of 508 million shares of Xusheng Group (603305.SH), representing 51.91% of the company's total share capital [1] - The top ten institutional investors collectively own 51.87% of the shares, with an increase of 0.63 percentage points compared to the previous quarter [1] Institutional Holdings - The number of institutional investors holding shares in Xusheng Group has remained stable, with a total of 13 investors [1] - The top ten institutional investors include notable entities such as Ningbo Meishan Free Trade Port Area Xusheng Holdings Co., Ltd. and Hong Kong Xuri Industrial Co., Ltd. [1] - The increase in holdings by the top ten institutional investors indicates a growing confidence in the company [1] Public Fund Activity - One public fund, China Aviation Trend Navigation Mixed Fund A, increased its holdings by 0.10% compared to the previous quarter [2] - One public fund, Huaxia CSI 1000 ETF, reported a slight decrease in holdings [2] - Six new public funds disclosed their holdings during this period, indicating a potential interest in Xusheng Group [2] Foreign Investment - One new foreign institutional investor, Hong Kong Central Clearing Limited, disclosed its holdings in this period [2]

Core Insights - Xusheng Group is a leading manufacturer of precision aluminum alloy components in China, established in 2003 and listed on the Shanghai Stock Exchange in 2017, with a focus on automotive lightweight solutions [1] Financial Performance - For Q3 2025, Xusheng Group reported revenue of 3.226 billion yuan, ranking 20th among 103 peers, below the industry average of 3.82 billion yuan but above the median of 1.381 billion yuan [2] - The company's net profit for the same period was 300 million yuan, ranking 16th in the industry, lower than the top two competitors but above the industry average of 275 million yuan [2] Profitability and Debt - As of Q3 2025, the company's debt-to-asset ratio was 47.33%, down from 50.78% year-on-year but still above the industry average of 39.06% [3] - The gross profit margin for the period was 21.66%, slightly higher than the industry average of 21.53% [3] Shareholder Information - As of September 30, 2025, the number of A-share shareholders decreased by 8.71% to 54,600, while the average number of shares held per shareholder increased by 12.45% [5] Strategic Developments - In H1 2025, total revenue was 2.096 billion yuan, a year-on-year decrease of 2.47%, with net profit down 24.22% [6] - The company is focusing on growth in the energy storage and robotics sectors, with significant projects underway in Mexico and Thailand [6]

Core Viewpoint - The company reported a slight increase in revenue and a significant rise in net profit for the third quarter of 2025, indicating strong financial performance despite modest revenue growth [1] Financial Performance - The company's operating revenue for Q3 2025 was 1.13 billion yuan, representing a year-on-year increase of 0.41% [1] - The net profit attributable to shareholders was 99.21 million yuan, showing a substantial year-on-year increase of 70.43% [1] - The net profit attributable to shareholders after deducting non-recurring gains and losses was 90.66 million yuan, reflecting a significant year-on-year increase of 96.36% [1]