Core Viewpoint - The company Altec (300825.SZ) has signed a joint venture agreement with Wuhu Huazhan New Energy, investing a total of 671.51 million yuan to establish a new company focused on new energy powertrains, enhancing its competitive edge in the automotive core power system sector [1]. Group 1 - Altec will contribute 601.51 million yuan through its wholly-owned subsidiary, Sichuan Altec New Energy Co., Ltd., representing 89.5757% of the registered capital [1]. - Wuhu Huazhan New Energy will invest 70 million yuan in cash, accounting for 10.4243% of the registered capital [1]. - This investment aims to deepen the company's business in automotive core power systems and support its "technology + supply chain" strategy for international expansion [1].

Company Overview - Altec Automotive Technology Co., Ltd. is the largest independent automotive design company in Asia and the only automotive design company listed on A-shares, showcasing strong scarcity in the market [2]. - The company has over 20 years of industry experience, accumulating rich project experience and core technological barriers, having developed nearly 500 vehicle models for over 80 clients [2][3]. Business Development - Altec has established seven R&D centers globally, focusing on markets in Japan, Southeast Asia, and the Middle East, to support its "technology + supply chain" strategy [3]. - The company has initiated cooperation with international automotive groups, enhancing its capabilities to assist global enterprises in transitioning to the automotive sector [3]. Key Projects and Orders - Altec has entered the oil-to-electric conversion business in Japan, partnering with YAMATO to provide technology solutions and export electric conversion kits [4][5]. - The company has secured a heavy-duty truck oil-to-electric order worth approximately CNY 337 million, with plans to expand its market presence in Japan [5]. Client Base and Market Expansion - Altec has developed strong relationships with major automotive manufacturers, including Honda, Nissan, and Toyota, and is actively exploring new clients and overseas market opportunities [6][7]. - The company aims to maintain existing client relationships while expanding its client base and enhancing its professional capabilities [7]. Industry Position and Competition - Altec is the only independent automotive design company listed on A-shares, distinguishing itself from competitors that are either affiliated with automotive manufacturers or parts suppliers [8]. - The company currently faces no significant competition in its oil-to-electric business in Japan, leveraging its advanced technology and established supply chain advantages [11][12]. Financial Performance and Challenges - Recent losses are attributed to intense price competition in the domestic automotive industry and the lengthy process of establishing overseas partnerships [9]. - Altec plans to transform its business model and improve operational efficiency to enhance profitability [9]. Future Outlook - The company will continue to deepen relationships with existing clients while pursuing new projects and markets, aiming for a comprehensive service model that integrates vehicle development and supply chain management [13]. - Altec's core component business is expected to improve as it begins mass production of various products, contributing to overall performance enhancement [14].

Group 1: AI Empowerment and Innovation - The company has integrated AI technologies into various stages of automotive design and development, including intelligent generation of visual effects, aerodynamic coefficient prediction, and automated component generation [2][5]. - The AI-powered automotive design product "TAI" was officially launched in March 2025, aimed at enhancing automotive design efficiency [5][6]. - Future plans include developing a series of AI tools and models to create an AI industrial design platform, enhancing the overall automotive design process [5][6]. Group 2: Financial Performance and Challenges - In 2024, the company reported a net loss of -132.85 million CNY, primarily due to low profit margins on existing orders and significant R&D investments [3][4]. - The company aims to achieve profitability in 2025 by focusing on high-quality supply for existing clients and expanding its overseas market presence [4][16]. - The overseas revenue for 2024 was 111.06 million CNY, accounting for 11.4% of total revenue, reflecting a year-on-year growth of 188.89% [4][16]. Group 3: Overseas Expansion Strategy - The company is actively expanding into international markets, particularly in Japan, the Middle East, and Eastern Europe, with a focus on providing integrated design and engineering services [3][16]. - A significant contract worth 470 million CNY was signed with Japan's AIM for vehicle manufacturing and export, indicating strong international partnerships [16][17]. - The company plans to leverage its "technology + supply chain" strategy to facilitate overseas business operations and meet the growing demand for electric vehicles globally [3][16]. Group 4: Robotics and Future Developments - The company is exploring applications of robotics in various sectors, including underwater cleaning and industrial automation, while developing an integrated design and simulation platform for robotics [15][23]. - Current robotics initiatives are in the early stages, with ongoing efforts to align automotive R&D capabilities with robotics development [15][23]. - The company aims to enhance its technological capabilities in robotics, focusing on AI-driven design and simulation processes [15][23]. Group 5: Market Position and Competitive Landscape - The company is recognized as the only independent automotive design firm listed on the A-share market, with a strong emphasis on technological innovation and R&D [24][36]. - It has established partnerships with over 80 domestic and international clients, developing nearly 500 vehicle models across various categories [24][36]. - The company holds 1,917 patents, with a notable increase in invention patents, positioning it as a leader in the automotive design industry [24][36].

Core Insights - The company reported a revenue of 971 million yuan for 2024, with a net loss of 133 million yuan, while the first quarter of 2025 saw a revenue of 268 million yuan and a net profit of 12.39 million yuan [1] - The primary reason for the net profit pressure is intense competition in the domestic automotive industry, leading to lower profit margins on existing orders and a decline in gross margin [1] - The company's overseas revenue surged to 111 million yuan in 2024, marking a year-on-year increase of 188.89% [1] Overseas Expansion Strategy - In response to domestic competition, the company adopted a "technology + supply chain" strategy for international expansion, establishing subsidiaries and branches in various regions to build a global R&D and service network [1][2] - The company has made significant progress in the Japanese market, achieving a closed-loop industrial chain for automotive design, supply chain support, and vehicle exports [2] - By the end of 2024, the company secured a contract worth approximately 470 million yuan for the production of AIM EVM vehicles and has entered into a project cooperation agreement with Nissan (China) [2][3] Financial Performance and Profitability - The company has signed framework agreements with several vehicle manufacturers in the Middle East and Eastern Europe, with some orders already in place, contributing to stable future revenue [3] - The gross margin for overseas business stands at 33.03%, significantly higher than the domestic margin of 19.06%, indicating that international expansion could enhance overall profitability [3] Technological Innovation - The company significantly increased its R&D investment, reaching 117 million yuan in 2024, a year-on-year growth of 164.96% [4] - AI technologies have been integrated into various stages of automotive design and development, including the launch of an AI tool for automotive styling and CAD applications based on large language models [4] - Future plans include the development of a subscription-based AI industrial design platform to support automotive design and development [4] Future Outlook - The company aims to continue its focus on technological innovation and the execution of its "AI-enabled automotive design" and "technology + supply chain" strategies, promoting internationalization, technological advancement, and digital transformation [5]