Summary of SANY Heavy Industry Conference Call Company Overview - **Company**: SANY Heavy Industry - **Industry**: Construction Machinery Key Points Industry and Market Outlook - **2026 Overseas Business Growth Target**: 15% increase, with Americas and Africa expected to grow by 24% and 19% respectively [2] - **Domestic Market Recovery**: Concrete machinery expected to stop declining in H2 2025, with cranes projected to grow over 10% in 2026 due to equipment updates and major projects [2] Financial Performance and Strategy - **Cash Management**: Company has a strong cash position due to good operational performance and low capital expenditures, with plans for overseas capital expenditures in Southeast Asia, Europe, and South America [3] - **Tax Increase**: Expected due to tighter tax policies and higher overseas tax burdens as profits from international operations grow [6] - **Dividend Policy**: Aiming to maintain a dividend payout ratio of over 50% [2][19] Product and Market Development - **Electric Product Penetration**: Domestic penetration of electric mixers expected to reach 80% by 2025, with electric loaders at 52.1% in early 2026 [2] - **North American Market Strategy**: Focus on product, marketing, and service enhancements, including introducing new products like skid steer loaders and electric products [4] - **Sales Data for 2025**: Excavators sales at 21.9 billion, cranes at 11.3 billion, concrete machinery at 9.7 billion, with significant growth in Africa at 66% [10] Exchange Rate and Risk Management - **Exchange Rate Strategy**: Company employs a "spread + exposure" strategy for currency management, with a focus on maintaining a certain level of USD holdings due to favorable interest rates [3][5] - **Impact of Exchange Rates**: In 2025, exchange rate fluctuations resulted in a net loss of approximately 580 million RMB, indicating the importance of effective currency management [8] Electric and New Energy Business - **Electric Product Development**: Focus on electric excavators, with a full range of products developed over six years, leading the industry in technology [7][11] - **Market Demand for Electric Products**: Increased demand for electric products due to rising fuel costs and environmental pressures, particularly in Europe and Southeast Asia [12] Competitive Advantages and Challenges - **Overseas Market Gross Margin**: Gross margin for excavators exceeds 39%, with strategies in place to maintain margins despite increasing competition [14][15] - **Long-term Competitive Advantages**: Continuous product line improvement, comprehensive solutions for mining clients, and strong after-sales service capabilities [18] Future Growth and Market Share Goals - **Market Share Targets**: Aiming for 30% market share in China, 20% in other developing countries, and 10% in developed markets by 2026 [16] - **Domestic Market Demand**: Anticipated growth in concrete machinery and cranes, with a target of over 10% sales growth for cranes in 2026 [17] Risk Management and Financial Health - **Credit Risk Management**: Company maintains a low overdue rate of 1.6%-1.7%, with a conservative approach to credit provisions [19] - **Future Dividend Plans**: Commitment to stable and continuous cash dividends, considering macroeconomic conditions and shareholder interests [19]

Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of RMB 87.08 and HKD 97.84 [6][5] Core Views - The company reported a revenue of RMB 456.45 billion for 2025, a year-on-year increase of 12.1%, and a net profit attributable to shareholders of RMB 43.95 billion, up 14.0% year-on-year. The operating cash flow decreased by 11.8% to RMB 53.35 billion [1][21] - Despite fluctuations in quarterly profits, the company demonstrated resilient growth through global expansion, competitive core categories, and ToB business expansion, maintaining a solid position in the ToC market [1][2] - The overseas business remains a crucial growth driver, with overseas revenue reaching RMB 195.9 billion, a 16% increase year-on-year, and OBM revenue accounting for over 45% of overseas income [2][3] Summary by Sections Financial Performance - The company achieved a gross margin of 26.72% in 2025, remaining stable year-on-year, while the expense ratio decreased by 0.72 percentage points, benefiting from lean management and increased interest income [4] - The company plans to distribute a cash dividend of RMB 38 for every 10 shares, indicating a commitment to high dividend payouts [1] ToB Business Growth - The ToB business revenue reached RMB 122.8 billion, a 17.5% increase year-on-year, accounting for 26.9% of total revenue. Notable growth was seen in building technology and other innovative businesses [3] Global Expansion - The company has established a presence in 50 countries with 29 R&D centers and 43 major manufacturing bases, transitioning from traditional product exports to brand exports and localized operations [2] Future Outlook - For 2026, the company anticipates a decrease in EPS forecasts to RMB 6.22 and RMB 6.84 for 2026 and 2027, respectively, reflecting adjustments due to external economic conditions [5]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company is expected to continue experiencing high growth due to the release of production capacity and the expansion into overseas markets. The second phase of production in Changsha is set to commence in the second half of 2025, with full capacity expected to be released in 2026. The company is actively establishing a subsidiary in Hong Kong to facilitate its global market expansion [3] - The earnings forecast has been slightly adjusted, with net profits for 2026-2028 projected at 335 million, 478 million, and 647 million yuan respectively, reflecting year-on-year growth rates of 69%, 43%, and 35%. Given the strong industry demand and the release of production capacity, the company's performance is anticipated to maintain high growth, thus the "Buy" rating is upheld [3] Financial Performance Summary - Total revenue for 2025 is projected at 795.52 million yuan, representing a year-on-year increase of 37.74%. The net profit attributable to shareholders is expected to reach 197.84 million yuan, a 70.30% increase compared to the previous year [1][9] - The company’s high-value products, particularly insulation materials and molded parts, have seen significant revenue growth, with insulation board and molded parts generating revenues of 461 million and 334 million yuan respectively, marking increases of 22% and 68% [9] - The gross profit margin for high-value molded parts has improved, with the revenue share increasing from 34% in 2024 to 42% in 2025, alongside a gross margin increase of 6.1 percentage points [9] Financial Projections - The company’s earnings per share (EPS) are projected to be 2.16 yuan for 2026, 3.67 yuan for 2027, and 5.23 yuan for 2028, with a price-to-earnings (P/E) ratio decreasing from 33.36 in 2025 to 10.21 in 2028 [1][10] - The operating profit is expected to grow significantly, with projections of 394 million yuan in 2026 and 563 million yuan in 2027, indicating a robust operational performance [10]

Investment Rating - The investment rating for the company is "Buy" [1] Core Insights - The company is expected to experience sustained high growth due to the release of production capacity and the increasing proportion of high-value products, with a forecasted net profit growth of 69% in 2026, 43% in 2027, and 35% in 2028 [3] - The company has successfully launched its second phase of production in Changsha, which is anticipated to meet the high demand in 2026, alongside efforts to expand into overseas markets [3] - The company reported a total revenue of 795.52 million yuan in 2025, representing a year-on-year increase of 37.74%, and a net profit of 197.84 million yuan, up 70.30% year-on-year [9] Financial Projections - Total revenue is projected to reach 1,183.56 million yuan in 2026, with a year-on-year growth of 48.78% [1] - The net profit for 2026 is estimated at 335.27 million yuan, reflecting a growth of 69.47% compared to 2025 [1] - The earnings per share (EPS) is expected to increase from 2.16 yuan in 2025 to 3.67 yuan in 2026 [1] Market Data - The closing price of the company's stock is 71.78 yuan, with a market capitalization of 6,565.21 million yuan [6] - The company has a price-to-earnings (P/E) ratio of 33.36 based on the latest diluted earnings per share [1][6] Operational Highlights - The company has effectively managed its expenses, with a decrease in the sales expense ratio to 1.22% in 2025, while continuing to increase R&D investment [9] - The revenue from insulation materials and molded parts has significantly contributed to the company's performance, with respective revenue increases of 22% and 68% in 2025 [9]

Group 1 - The company's 2025 performance is below expectations, with revenue and net profit projected to grow by 5.7% and 4.4% respectively, reaching 302.33 billion RMB and 19.55 billion RMB [1] - In Q4, the company's revenue and net profit declined by 6.7% and 39.2% year-on-year, falling short of both internal and market expectations [1] - The company's gross margin for the year was 26.1%, a decrease of 1.1 percentage points year-on-year, although operational efficiency improvements partially offset margin pressures [1] Group 2 - In the Chinese mainland market, Q4 demand was weak, with a 15% year-on-year decline in revenue, while the overall business revenue for 2025 grew by 3.1% to 146.5 billion RMB [2] - The high-end brand Casarte achieved double-digit growth, leading the premium market, while the Leader brand focused on younger consumers, growing by 30% [2] - The company's overseas business revenue for 2025 increased by 8.3% to 155.8 billion RMB, with emerging markets showing significant growth, particularly in South Asia, Southeast Asia, and the Middle East and Africa [2]

Core Insights - In 2025, GAC Group achieved a total revenue of 96.542 billion yuan, with total vehicle sales of 1.7215 million units and terminal sales of 1.8135 million units, marking a significant transformation in the automotive industry towards intelligent and electric vehicles [1][2] - GAC Group's sales of energy-saving and new energy vehicles exceeded 50% for the first time, indicating a strategic shift from traditional fuel vehicles to a dual-driven model of new energy and energy-saving technologies [2][3] - The company implemented a comprehensive reform strategy, focusing on organizational change, R&D breakthroughs, and global expansion, which resulted in a continuous recovery of operational fundamentals and a positive growth trend in sales [1][4] Revenue and Sales Performance - GAC Group's total revenue for 2025 was 96.542 billion yuan, with a notable increase in energy-saving and new energy vehicle sales, which reached 888,200 units, accounting for 51.60% of total sales, a 6 percentage point increase from 2024 [2] - The company reported a continuous quarter-on-quarter sales growth for three consecutive quarters, with the fourth quarter sales exceeding 537,800 units, reflecting a recovery trend in operational fundamentals [5] Product and Technology Development - GAC Group adopted a "multi-energy approach" strategy, covering a full range of technologies including pure electric, plug-in hybrid, hybrid, range-extended, and fuel cell vehicles, to meet diverse consumer needs [2][6] - The company invested over 62 billion yuan in R&D by the end of 2025, with over 24,900 patent applications, including more than 11,200 invention patents, establishing a strong technological foundation for future growth [6][7] Organizational and Efficiency Improvements - GAC Group underwent a significant organizational transformation, shifting from a traditional hierarchical structure to a market and user-centric matrix organization, resulting in a 30% improvement in product planning efficiency and an 85% increase in decision-making efficiency [4][5] - The company achieved a reduction in new vehicle development cycles to 18-21 months, enhancing its responsiveness to market changes [4] Global Expansion and Market Strategy - GAC Group's overseas sales reached nearly 130,000 units in 2025, a year-on-year increase of approximately 48%, with the establishment of over 280 overseas marketing service points [6][8] - The company plans to double its overseas sales target to 250,000 units in 2026 and aims to add 1,000 new overseas service points, transitioning from merely selling products to offering comprehensive solutions [8] Future Growth and Innovation - GAC Group is actively developing future mobility ecosystems, including flying cars and humanoid robots, with significant orders and production plans set for 2026 [8] - The company is focused on creating a synergistic development model that integrates vehicles with energy technology, smart connectivity, and automotive finance, ensuring sustainable long-term growth [8][9]

Group 1: Investor Relations Activities - The company conducted investor relations activities including analyst meetings, site visits, and online meetings with various financial institutions [2][3] - Notable participants included Dongfang Caifu Securities, Asia-Pacific Huijin Fund, and several other investment firms [2] - Activities were scheduled from March 5 to March 31, 2026, with multiple sessions held in the company meeting room and via Tencent Meeting [3] Group 2: Product Development and Market Position - The company focuses on oxygen and nitrogen sensors, which are critical for automotive emission control and improving engine efficiency [4] - The domestic market for these sensors is largely dominated by foreign brands, with significant reliance on imports due to high technical barriers [4] - The company aims to expand its product offerings in the automotive pre-installation market [4] Group 3: Financing and Fundraising - The company plans to raise up to CNY 54,440,000 through a targeted issuance of A-shares, with funds allocated for expanding production lines and R&D projects [5] - The fundraising process is progressing as planned, with approvals from the Shenzhen Stock Exchange and ongoing responses to regulatory inquiries [6] Group 4: Global Expansion Strategy - The company is advancing its globalization strategy by establishing subsidiaries in Germany, Belgium, and Thailand to enhance local sales and technical support [7] - A new subsidiary in the United States has been registered to facilitate market development in North and South America [7] - The company aims to strengthen its international market presence and brand competitiveness through deep cooperation with global clients [7]

Group 1: Overall Performance - The company achieved an operating revenue of 20.32 billion CNY in 2025, a year-on-year increase of 15.01% [3] - The net profit attributable to shareholders reached 600 million CNY, growing by 5.49% [3] - The weighted average return on equity was 14.15% [3] Group 2: Business Segment Performance - The electromagnetic wire segment generated 8.01 billion CNY in revenue, a 21% increase year-on-year, serving as a core support for overall performance [3] - The cable segment achieved 12.24 billion CNY in revenue, with an 11% year-on-year growth, maintaining stable revenue growth amid intensified industry competition [3] Group 3: Growth Drivers - Key growth drivers included significant optimization of business structure and capturing opportunities in high-demand sectors such as clean energy, smart grids, and intelligent equipment, which collectively generated 10.70 billion CNY in revenue, increasing their share from 47% in 2024 to 53% in 2025 [3] Group 4: International Expansion - The company’s overseas market revenue reached 631 million CNY, marking a 36.26% increase year-on-year, with significant growth in the electromagnetic wire business [3] - New core customers were acquired in South America, South Asia, and the Middle East, with successful project wins in Brazil, Chile, and Japan [3] Group 5: Strategic Initiatives - The company is advancing its European base construction, with a planned annual capacity of 20,000 tons for electromagnetic wire, aiming for partial production in the second half of 2026 [4] - The company is also focusing on the "aluminum replacing copper" technology for high-voltage transformers, achieving significant progress in the development of core technologies [5] Group 6: Financial Strategy - The company has committed to a high cash dividend policy, proposing a cash dividend of 4.5 CNY per 10 shares for 2025, totaling approximately 327 million CNY [5] - This marks the 16th consecutive year of cash dividends, enhancing predictability and investor confidence [5]

Investment Rating - The investment rating for the company is maintained at "Buy" [1] Core Views - The company reported a revenue of 5.233 billion RMB for 2025, a year-on-year decrease of 13.8%, while the net profit attributable to shareholders was 58.2 million RMB, an increase of 4.3% year-on-year [1] - The company has proactively optimized its restaurant network by closing 189 underperforming or expiring lease stores, resulting in a total of 644 stores at the end of the year [1] - The company plans to distribute a final dividend of 0.02 HKD per share, with a payout ratio of 42.1%, and has committed to maintaining a payout ratio of no less than 40% in the future [1] - The company is shifting its strategy to focus on optimizing existing operations rather than aggressive expansion, expecting to see fundamental recovery as it streamlines its brand matrix and strengthens operational capabilities [1] Revenue and Profitability - The restaurant, takeaway, and merchandise sales revenues for 2025 were 3.976 billion RMB, 1.002 billion RMB, and 244 million RMB respectively, with year-on-year changes of -18.5%, -4.0%, and +74.7% [2] - The average daily sales for the main brands showed declines, with Taier, Song Hotpot, and Jiumaojiu experiencing year-on-year decreases of -11.5%, -16.5%, and -15.8% respectively [2] - The overall operating profit margin for the company was 12.3%, showing resilience despite the pressure on same-store sales [3] Cost Structure and Efficiency - The cost structure remained stable, with raw materials and consumables accounting for 35.5% of revenue, employee costs at 29.5%, and depreciation of right-of-use assets at 9.3% [3] - The company has improved its supply chain capabilities, leading to a slight decrease in the proportion of raw material costs [3] Strategic Adjustments - The company opened 26 new restaurants in 2025 while closing 189, adjusting its total store count to 644 [4] - The company is exploring new business opportunities, including the launch of a new brand "Chao Na Bian" and a strategic partnership with North American brand Big Way [4] Profit Forecast and Valuation - The net profit forecasts for 2026 and 2027 have been revised down to 183 million RMB and 249 million RMB, reflecting a decrease of 27.5% and 19.8% respectively [5] - The target price has been adjusted to 2.10 HKD, down from 3.52 HKD, corresponding to a 14x PE for 2026 [5]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負責，對其準確 性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部或任何部份內容而產生或 因倚賴該等內容而引致的任何損失承擔任何責任。 HISENSE HOME APPLIANCES GROUP CO., LTD. 海信家電集團股份有限公司 （在中華人民共和國註冊成立的股份有限公司） （股份代號：00921） 海外市場監管公告 本公告乃根據香港聯合交易所有限公司證券上市規則第 13.10B 條而作出。 《海信家電集團股份有限公司 2025 年年度報告》、《海信家電集團股份有限公司 2025 年年度報告摘要》、《海信家電集團股份有限公司 2025 年年度審計報告》已刊載於深圳 證券交易所指定之信息披露網站：http://www.cninfo.com.cn，以供參閱。 承董事會命 海信家電集團股份有限公司 董事長 高玉玲 中國廣東省佛山市，2026 年 3 月 30 日 於本公告日期，本公司的執行董事為高玉玲女士、賈少謙先生、于芝濤先生、方雪玉女 士及代慧忠先生；本公司的獨立非執行董事為李志剛先生、蔡榮星先生及徐國君先生； 及本公司的職工代 ...