Core Viewpoint - The company reported strong financial performance in the first half of 2025, with significant growth in revenue and net profit, indicating a robust market position and operational efficiency [2][5]. Financial Performance - In H1 2025, the company achieved revenue of 13.03 billion yuan, a year-on-year increase of 23%, and a net profit attributable to shareholders of 1.21 billion yuan, up 27.6% year-on-year [2]. - In Q2 2025, revenue reached 6.80 billion yuan, reflecting a 20.6% year-on-year growth and a 9.1% quarter-on-quarter increase, with net profit of 610 million yuan, up 30.1% year-on-year [2]. Sales and Pricing - In H1 2025, electric two-wheeler sales reached 6.05 million units, a 19.7% increase year-on-year, with an average selling price (ASP) of 1,924 yuan, up 95 yuan year-on-year [3]. - Q2 2025 saw electric two-wheeler sales of 3.19 million units, a 19.3% year-on-year increase, with an ASP of 1,967 yuan [3]. Profitability and Cost Control - The gross margin improved to 19.2% in H1 2025, up 1.4 percentage points year-on-year, with effective control over selling, administrative, and R&D expenses [4]. - In Q2 2025, the overall expense ratio was 8.4%, down 0.35 percentage points year-on-year [4]. Cash Flow and Capital Expenditure - Operating cash flow significantly increased to 2.59 billion yuan in H1 2025, a 123% year-on-year growth, while capital expenditure decreased by 16% to 1.18 billion yuan [5]. - The company plans to continue reducing capital expenditures as new production bases in Indonesia, Vietnam, and other regions are established [5]. Profit Forecast and Investment Rating - The company adjusted its net profit forecasts for 2025 and 2026 to 2.62 billion yuan and 3.01 billion yuan, respectively, while maintaining a "buy" rating due to its strong market position and low valuation [6]. - The company is focusing on technological advancements and channel expansion to enhance product quality and operational efficiency [6].