Investment Logic - The company has shown a continuous upward trend in operations after a bottom reversal, with April 2025 sales of passenger cars reaching 234,100 units, a year-on-year increase of 49.1% [1][13] - Electric vehicle sales reached 126,000 units in April 2025, with a year-on-year increase of 137.7% [1][13] - The company has maintained strong sales performance despite price wars affecting electric vehicles, with fuel vehicles also showing resilience [1][13] Reasons for Recovery - The core reasons for the company's recovery include the implementation of a low-cost strategy, a strong product cycle with multiple new models, and internal integration that has improved profitability [2][3] - The launch of the GEA platform and EM-i hybrid technology has significantly enhanced the company's product appeal [2] - The company is entering a new car cycle with ten new models expected to launch in 2025, including several market hits [2][3] Sales Performance - The company has achieved strong sales performance, with April 2025 sales of 234,100 units, a 52.7% increase year-on-year [13][14] - Electric vehicle sales in the first four months of 2025 reached 465,000 units, a 137.7% increase year-on-year [13][14] - The company has faced challenges in the export market, particularly in Russia, but has seen strong growth in other regions, including Latin America and Asia-Pacific [15][19] Brand Performance - The company's four main brands have shown varied performance, with the Galaxy brand achieving significant growth, while the Zeekr brand has faced challenges [25][19] - The Galaxy brand sold 97,000 units in April 2025, a 285.2% increase year-on-year, indicating strong market acceptance [19][25] - Fuel vehicles have also performed well, with sales increasing by 3% year-on-year in April 2025 [25][26] Profitability Trends - The company has experienced a significant recovery in profitability, with net profit in Q1 2025 reaching 5.67 billion yuan, a 262.9% increase year-on-year [39][40] - The gross profit margin for the company has improved, reaching 15.8% in Q1 2025, up 2.1 percentage points from the previous quarter [39][40] - The company has successfully turned around its profitability after a challenging period, with the Galaxy brand contributing significantly to this recovery [48][49] Cost Reduction Strategies - The implementation of the GEA platform has led to a significant reduction in vehicle costs, enhancing the company's competitive position [51][52] - The GEA platform allows for modular design and increased parts reuse, which lowers production costs [52][53] - The company's self-research and supply capabilities have improved, reducing reliance on external suppliers and further lowering costs [53]