Core Viewpoint - The company is experiencing short-term pressure on its performance in 2Q25, with expectations for gradual recovery in the second half of the year driven by core customer sales growth and internal cost reduction efforts [3][4]. Financial Performance - In 1H25, total operating revenue increased by 30.0% year-on-year to 5.16 billion yuan, accounting for 39% of the original full-year forecast. Gross margin decreased by 2.5 percentage points to 18.6%, while net profit attributable to shareholders rose by 14.2% to 520 million yuan, representing 34% of the original forecast [3]. - In 2Q25, revenue was 2.53 billion yuan, up 19.7% year-on-year but down 4.2% quarter-on-quarter. Gross margin was 19.2%, with a year-on-year decline of 2.2 percentage points but a quarter-on-quarter increase of 1.2 percentage points [3]. Product Performance - The company saw significant growth in smart electronic control products, with sales of intelligent electronic control, disc brakes, lightweight brakes, and mechanical steering products increasing by 43.1%, 28.7%, 7.4%, and 6.9% respectively in 1H25 [4]. - The number of new designated projects increased by 44% to 282, with intelligent electronic control products accounting for 63% of new mass production projects, up 2 percentage points year-on-year [4]. Global Expansion - The company is accelerating its global layout, with its Mexican subsidiary achieving stable profitability (net profit of approximately 18.27 million yuan) in 1H25. The overseas revenue is expected to continue growing as the second phase of the Mexican factory ramps up production [5]. - The company is also actively advancing the construction of a factory in Morocco, further deepening its global expansion efforts [5]. Research and Development - The company is the first in China to release and mass-produce the ONE-BOX integrated electronic control braking system, with a clear strategy for integrated chassis development. It is pushing forward with the industrialization of new generation electronic control braking products [6]. - The company has established a 200 million yuan industrial fund to actively invest in emerging fields such as humanoid robots and low-altitude economy, aiming to extend its main business advantages into the robotics sector [6].

Group 1: Financial Performance - In 1H25, total operating revenue increased by 30.0% year-on-year to 5.16 billion yuan, accounting for 39% of the original full-year forecast [1] - Gross margin decreased by 2.5 percentage points year-on-year to 18.6%, while net profit attributable to the parent company rose by 14.2% year-on-year to 520 million yuan, representing 34% of the original full-year forecast [1] - In 2Q25, revenue was 2.53 billion yuan, a year-on-year increase of 19.7% but a quarter-on-quarter decrease of 4.2% [1] Group 2: Product Performance - In 1H25, sales of intelligent electronic control products, disc brakes, lightweight brakes, and mechanical steering products grew by 43.1%, 28.7%, 7.4%, and 6.9% year-on-year, respectively [2] - The number of new project approvals increased by 44% year-on-year to 282, with intelligent electronic control products accounting for 63% of new mass production projects [2] - The decline in sales growth of lightweight brake products was attributed to lower-than-expected sales from domestic core customers, but revenue is expected to remain stable as production capacity ramps up in Mexico [2] Group 3: Global Expansion and Strategic Initiatives - The company’s Mexican subsidiary achieved stable profitability in 1H25, with a net profit of approximately 18.27 million yuan, and overseas revenue is expected to continue growing as production capacity increases [3] - The company is the first in China to release and mass-produce the ONE-BOX integrated line control braking system, actively promoting the industrialization of new generation line control braking products [3] - A 200 million yuan industrial fund has been established to invest in emerging fields such as humanoid robots and low-altitude economy, extending the company's main business advantages into the robotics sector [3] Group 4: Investment Outlook - The company maintains a "buy" rating, despite a 10% reduction in net profit forecasts for 2025, 6% for 2026, and 1% for 2027, due to intensified competition in downstream industries [3]

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [3][6]. Core Insights - The company's revenue for 1H25 increased by 30.0% year-on-year to 5.16 billion yuan, accounting for approximately 39% of the original full-year forecast. However, the gross margin decreased by 2.5 percentage points to 18.6% [1]. - In 1H25, the company saw significant growth in its intelligent electronic control products, with sales increasing by 43.1% year-on-year. The number of new projects also rose by 44% to 282 [2]. - The company is accelerating its global expansion, with its Mexican subsidiary achieving stable profitability and ongoing construction of a factory in Morocco [3]. Summary by Sections Financial Performance - 1H25 total revenue reached 5.16 billion yuan, with a net profit of 520 million yuan, reflecting a year-on-year increase of 14.2% [1]. - The gross margin for 2Q25 was 19.2%, showing a year-on-year decline of 2.2 percentage points [1]. Product Development - The company is focusing on new product development, particularly in integrated chassis systems, with successful mass production of line control braking systems [2]. - The company is preparing for mass production of new products such as EMB and air suspension systems, with significant production capacity planned [2]. Global Strategy - The Mexican subsidiary reported a net profit of approximately 18.27 million yuan, with expectations for continued growth as production capacity increases [3]. - The company has established a 200 million yuan industrial fund to invest in emerging fields such as humanoid robots and low-altitude economy [3]. Earnings Forecast - The report has adjusted the profit forecasts for 2025, 2026, and 2027 down by 10%, 6%, and 1% respectively, but maintains a positive long-term growth outlook due to the integrated chassis strategy [3].