Core Viewpoint - The company is a leading global supplier of cylinder liners with deep technical accumulation, evolving from a state-owned factory established in 1958 to a major player in the industry. Its revenue structure as of H1 2025 includes 66.1% from internal combustion engine components, 7.9% from automotive electronics, 14.7% from braking systems, and 11.3% from other businesses [1][11][12]. Revenue Growth and Financial Performance - The company has maintained stable revenue growth over the years, with revenue increasing from 1.08 billion yuan in 2014 to 3.31 billion yuan in 2024, representing a compound annual growth rate (CAGR) of 11.8%. In H1 2025, revenue reached 1.943 billion yuan, up 14.6% year-on-year, with a net profit of 234 million yuan, reflecting a 32% increase [2][3][30]. Business Segments and Product Matrix - The company has diversified its product offerings into four main segments: 1) core components for internal combustion engines (cylinder liners, pistons, piston rings, and bearings), 2) automotive electronics, 3) braking system components, and 4) hydrogen and fuel cell system components. The internal combustion engine business serves as a stable revenue base while actively expanding into growth areas [19][20][22]. Internal Combustion Engine Business - The company has a strong presence in the internal combustion engine sector, producing key components such as cylinder liners and pistons. It is positioned at the forefront of engineering equipment research and new materials, with significant clients including Caterpillar, MTU, and Cummins. The company aims to capture market share in the large-diameter diesel generator set market, enhancing its profitability [4][5][51]. Braking Systems and New Business Opportunities - The company’s dual-metal composite brake drum products have seen a revenue increase of 56.3% year-on-year in H1 2025. The electric control actuator business is also expanding, with new product and customer development expected to drive growth. The company is exploring opportunities in hydrogen fuel cell systems and related components, leveraging its technical capabilities and customer resources [6][7][19]. Research and Development Focus - The company places a high emphasis on research and development, with R&D expenditures amounting to 83.85 million yuan in H1 2025, representing 4.3% of revenue. It has established a national-level enterprise technology center and is actively involved in developing advanced technologies in the industry [38][39]. Production Capacity and Efficiency - The company employs a lean manufacturing model and has made significant investments in automation to enhance production efficiency. As of the end of 2024, it operates 32 casting lines for cylinder liners and has plans to expand production capacity in Thailand to mitigate geopolitical risks [43][45][46]. Customer Base and Market Expansion - The company has established solid strategic partnerships with leading domestic and international clients, including major players in the internal combustion engine sector. Its products are exported to over 60 countries, serving clients such as Ford, General Motors, and Mercedes-Benz [28][36].