Summary of Qianli Technology Conference Call Company Overview - Qianli Technology is positioned advantageously in the wave of intelligence, boasting top-tier AI and autonomous driving talent reserves, making it one of the few companies in the A-share market capable of providing a full suite of algorithm solutions [2][3] - The company underwent bankruptcy restructuring, bringing in strategic investors such as Geely and Liangjiang Capital, and established Ruiblu Automobile in partnership with Geely [2][4] - In 2024, the founder of Megvii, Yin Qi, will become the chairman, marking a transition to a technology-driven enterprise [2][4] Core Business Lines - Qianli Technology's core business includes three main segments: motorcycles, passenger vehicles (Ruiblu Automobile), and intelligent driving technology [6] - The motorcycle business is stable and profitable, while the passenger vehicle segment focuses on ride-hailing and exports, and intelligent driving technology is a key development area [2][6] Financial Status - The company's financial situation before 2025 relies heavily on motorcycle and Ruiblu Automobile sales, with motorcycle sales being stable and profitable, while Ruiblu's performance is more volatile [7] - Overall profit margins have remained stable since the restructuring, and cash flow is expected to improve in 2026 through H-share listing [7] Robot Taxi Development - Qianli Technology is optimistic about the Robot Taxi market, which is projected to grow significantly from 80 billion to 700 billion between 2030 and 2035 [8][9] - The company collaborates with Cao Cao Mobility and Geely to build a robust Robot Taxi ecosystem, providing algorithms, platforms, and vehicle models [9] - Plans include launching a low-cost Robot Taxi solution and participating directly in operations through local government partnerships [9] Future Plans - The company aims to deepen its AI and automotive strategy, enhancing technical capabilities and expanding market share [10] - As a core supplier for Geely in L2 support algorithms, Qianli Technology anticipates revenue potential of 10 billion to 20-30 billion [10] - Plans to achieve a scale of 10,000 Robot Taxis correspond to a market value potential of 30-50 billion [10] - The company will also explore expansion into cockpit and robotics sectors, driven by AI [10] Shareholding Structure - Liangjiang Venture Capital and other local government entities hold 30% of the shares, while Chongqing Lifan Holdings owns 13% [5] - Mercedes-Benz announced an investment in December 2025, acquiring a 3% stake in the company [5]

Core Insights - The Hong Kong stock market indices experienced a collective decline, with the Hang Seng Index falling by 1.35%, the Hang Seng China Enterprises Index down by 1.46%, and the Hang Seng Tech Index decreasing by 0.99% [2] - The report highlights a significant interest in the collaboration between Nvidia and Intel, which is expected to impact the semiconductor sector positively [6] Company Overview - Chery Automobile is a leading passenger car manufacturer in China, established in 1997, with five major brands catering to diverse customer needs [8] - The company is projected to achieve revenues of 926.2 billion, 1,632.1 billion, and 2,699.0 billion CNY from 2022 to 2024, with a compound annual growth rate (CAGR) of 70.7% [8] Industry Status and Outlook - The global passenger car industry is entering a mature phase, with total sales expected to reach 74.3 million units in 2024 and a CAGR of 3.5% from 2025 to 2030 [9] - The Chinese passenger car market is robust, with sales projected to reach 22.7 million units in 2024, growing at a CAGR of 1.9% from 2019 to 2024 [9] Advantages and Opportunities - Chery Automobile boasts a diverse brand matrix and strong R&D capabilities, positioning it well for future technological advancements [10] - The company is recognized as a leading Chinese passenger car enterprise with significant global expansion potential [10] Investment Recommendations - The IPO of Chery Automobile is supported by a strong lineup of cornerstone investors, with the offering price set between 27.75 and 30.75 HKD, leading to a post-IPO market capitalization of approximately 160.04 to 177.34 billion HKD [12] - The report suggests that Chery is comparable to other leading domestic brands like Great Wall Motors and Geely, with a lower valuation relative to Geely [12]

Industrial Sector - The operating rates of various industrial sectors are generally higher than the same period last year, with national high furnace operating rates increasing by 4.0 percentage points year-on-year as of the second week of March [1][6] - The operating rate of benzene-styrene increased by 15.9 percentage points year-on-year, while the operating rate of PVC saw a slight increase of 0.1 percentage points [1][6] - The operating rate of automotive semi-steel tires grew by 2.8 percentage points year-on-year, while PTA weaving machine load rates in Jiangsu and Zhejiang decreased by 6.2 percentage points [1][6] Construction Sector - The funding availability rate for construction projects continues to improve, reaching 57.2% as of March 11, up 0.75 percentage points from the end of February [2][7] - Cement dispatch rates recorded 33.7%, a year-on-year increase of 4.2 percentage points, while asphalt operating rates fell by 0.5 percentage points year-on-year [2][8] Transportation Sector - Subway passenger volumes in major cities averaged 61.99 million trips from March 1 to March 17, a year-on-year increase of 0.4% [2][8] - Domestic flight execution rates averaged 12,063 flights per day, a decrease of 2.9% year-on-year, while international flights saw a significant increase of 20.1% [2][9] Real Estate Market - The real estate market shows positive transaction conditions, with average daily transaction areas in 30 major cities increasing by 11.0% year-on-year [2][10] - Second-hand housing transactions in Beijing, Shanghai, and Shenzhen saw significant year-on-year increases of 47.1%, 56.3%, and 65.1%, respectively [2][10] Automotive Sector - Retail sales of passenger cars in early March showed a year-on-year growth of 14%, significantly higher than the cumulative growth of 1% in January and February [2][11] - Wholesale sales increased by 26% year-on-year, while new energy vehicle sales surged by 44% [2][12] Home Appliances - Offline sales of home appliances maintain relatively high growth rates, with air conditioning and washing machine sales showing mixed results [2][12][13] - The ongoing policy support for replacing old appliances is expected to sustain growth momentum in the home appliance sector [2][12] Container Shipping - Container throughput remains robust, with a year-on-year increase of 11.3% from March 2 to March 16 [2][13] - Port cargo throughput also showed a year-on-year increase of 4.8%, indicating stable export conditions [2][13] Price Trends - Food prices are in line with seasonal trends, while industrial product prices remain relatively stable, with the BPI index at 905 points as of March 18 [2][14] - The national average wholesale price of pork increased by 0.7% week-on-week, while vegetable prices saw a decline of 2.0% [2][15]