Core Viewpoint - The company reported a decline in revenue and net profit for Q1 2025, indicating short-term pressure on performance, primarily due to a decrease in sales from joint venture clients in the cleaning system business [2][3]. Financial Performance Summary - In Q1 2025, the company achieved revenue of 203 million yuan, a year-on-year decrease of 16.04% and a quarter-on-quarter decrease of 21.44% [2][3]. - The net profit attributable to the parent company was 42 million yuan, down 35.48% year-on-year and 16.71% quarter-on-quarter, resulting in a net profit margin of 20.61%, which is a decline of 6.21 percentage points year-on-year [2][3]. - The comprehensive gross margin for Q1 2025 was 32.22%, down 4.57 percentage points year-on-year, attributed mainly to price reductions for clients [3]. Competitive Advantages - The company possesses core competencies in technology research and development, cost control, customer coverage, product expansion, and capacity layout [4]. - In technology R&D, the company has leading advantages in product development, testing, mold design, and the integration of fully automated production lines [4]. - Cost control is enhanced through a platform strategy and vertical integration of the supply chain, along with intelligent automated production [4]. - The company has established deep partnerships with major automotive manufacturers such as BMW, Geely, and North American electric vehicle clients, as well as international Tier 1 suppliers [4]. - The micro-motor technology serves as a platform technology with strong extensibility, allowing the company to diversify its application scenarios and product range [4]. - Ongoing construction of factories in Thailand and the United States is expected to improve global customer support efficiency and expand overseas market share [4]. Future Financial Projections - The company maintains forecasts for net profit attributable to the parent company at 251 million yuan, 303 million yuan, and 366 million yuan for 2025, 2026, and 2027 respectively, with corresponding EPS of 3.14 yuan, 3.79 yuan, and 4.57 yuan [6]. - The projected P/E ratios for 2025, 2026, and 2027 are 24.75x, 20.48x, and 16.97x respectively [6].