Core Viewpoint - The establishment of the intelligent connected vehicle testing ground by China Automotive Technology & Research Center (CATARC) represents a significant advancement in the automotive industry's shift towards intelligence and connectivity, filling a critical gap in systematic verification platforms for smart vehicles in China [1][2]. Group 1: Testing Ground Overview - The testing ground, built with an investment of 1.5 billion yuan, features innovative facilities such as the world's first intelligent connected tunnel and a multi-dimensional simulation platform for complex environments, creating a comprehensive verification system covering "vehicle-road-cloud-network-map" [1][2]. - The facility includes 8 dedicated testing roads for intelligent connected vehicles, a 32,000 square meter laboratory, and a comprehensive energy center capable of supporting various testing scenarios for smart vehicles, heavy-duty commercial vehicles, flying cars, and low-altitude aircraft [2]. Group 2: Technological Innovations - The intelligent connected complex environment multi-dimensional simulation platform utilizes rain and fog array technology and controllable light source point array technology to simulate various weather conditions for testing smart vehicle driving capabilities [3]. - The testing ground has integrated a low-altitude economic framework, featuring a super-wide testing runway that meets the takeoff and landing standards for general flying vehicles, thus supporting the testing of flying cars and low-altitude aircraft [3]. Group 3: Regional Development Impact - The testing ground aims to provide professional testing services to local smart connected vehicle companies, support the development of hydrogen fuel cell vehicles, and enhance the automotive industry's reputation in Yancheng [4]. - The facility will collaborate with universities and enterprises in the Yangtze River Delta region to establish an innovation hub for intelligent connected vehicles and participate in the formulation of relevant industry standards [4]. Group 4: Future Development Plans - CATARC plans to further develop the digital testing ground, creating virtual scenarios for testing and promoting open testing on public roads, while engaging in research and validation across various fields including communication devices and cloud control platforms [5]. - The company is actively involved in promoting the "vehicle-road-cloud integration" technology, contributing to the development of national standards for intelligent connected vehicles, which will enhance traffic management and intelligent driving assistance [5].

Summary of Zhongqi Co., Ltd. Conference Call Company Overview - Zhongqi Co., Ltd. is a leading automotive testing facility in Asia, established in 2011, with a total investment of 35 billion CNY and covering an area of 9,500 acres. The company operates a comprehensive testing facility with over 100 kilometers of test roads and more than 100 types of road surface characteristics [5][6]. Financial Performance - In 2024, Zhongqi achieved revenue of 400 million CNY, a year-on-year increase of approximately 12%, with net profit growing by about 1% and non-recurring net profit increasing by approximately 4.67%. The gross margin remained stable at around 70%, and the net margin was about 40%. The net cash flow from operating activities was 243 million CNY, and the debt-to-asset ratio was approximately 16% [2][9]. - In Q1 2025, the company reported revenue of 88.02 million CNY, a nearly 30% year-on-year increase, and a net profit of 28.98 million CNY, up 24% year-on-year. However, the gross margin experienced a decline due to fixed costs associated with the second-phase project [2][3][9]. Key Projects and Developments - The Yangtze River Delta Yancheng Intelligent Connected Vehicle Testing Ground began phased operations in July 2024, capable of testing flying cars and low-altitude aircraft. New scenarios, such as off-road vehicle routes, are under construction and expected to be operational by the end of the year, providing a new growth point for the company [2][4]. - The company collaborates with 60% of new energy vehicle enterprises and 60% of Chinese brand passenger car clients, as well as 35% of mainstream commercial vehicle tire manufacturers [2][7]. Business Operations - Zhongqi's main business includes three areas: 1. Testing technical services for passenger and commercial vehicles, accommodating over 500 clients daily and accumulating over 25 million kilometers of test vehicle mileage annually. 2. One-stop technical services providing comprehensive solutions through testing engineers and equipment. 3. Emerging strategic businesses focusing on low-altitude economy and digital road models [8]. Future Outlook - The company anticipates stable management, sales, and financial expenses in 2025, with depreciation expected to be between 40 million to 50 million CNY for the year following the solidification of the intelligent connected vehicle project [12][14]. - The forced testing business is expected to see an increase due to heightened safety concerns and new regulatory requirements, which will positively impact the company's performance [3][14]. Market Position and Competition - The automotive testing market is characterized by both third-party testing facilities and in-house testing by automakers. Zhongqi's facility is superior in terms of investment scale and testing capabilities compared to competitors, which are generally smaller in size [19]. New Business Initiatives - The company is exploring low-altitude economy projects and digital road databases, aiming to enhance research and development efficiency and attract more validation demands from clients [20][21][22]. Shareholder Information - Jiangsu Yueda announced a share reduction plan due to its own funding needs, although specific reduction actions have not yet been taken [23]. This summary encapsulates the key points from the conference call, highlighting Zhongqi Co., Ltd.'s financial performance, business operations, future outlook, and market position.