Core Viewpoint - The company has shown a significant improvement in net profit despite a decline in revenue, indicating a positive trend in profitability and operational efficiency [1][2]. Financial Performance - For the first three quarters of 2025, the company reported revenue of 2.183 billion, a year-on-year decrease of 16.98%, while net profit reached 42.7752 million, a year-on-year increase of 279.04% [1]. - In the third quarter alone, the company achieved revenue of 726 million, down 18.69% year-on-year, with net profit of 12.3436 million, up 324.27% year-on-year [1]. - The company has maintained positive net profit for four consecutive quarters since Q4 2024, indicating a continuous improvement in profitability [1]. Business Segments - The company operates primarily in two segments: automotive sales and services, and internal combustion engine crankshaft manufacturing [1]. - The automotive sales and services segment includes vehicle sales, maintenance services, and comprehensive services, with key brands including SAIC Volkswagen, FAW Volkswagen, FAW Toyota, Dongfeng Nissan, and various new energy vehicle brands [1]. Strategic Initiatives - The company is optimizing its revenue structure and cost management, which has led to a sustained increase in profitability [2]. - The focus on new energy vehicles and enhanced after-sales service is expected to drive further growth in revenue and market share [2][3]. - The company plans to use 679.482 million from surplus reserves and 876 million from capital reserves to offset cumulative losses, which will improve its financial stability and net asset quality [2][3]. Market Outlook - The demand for new energy and smart vehicles is expected to grow, providing opportunities for the company to expand its market presence and enhance brand partnerships [2]. - Improving financial conditions may attract more investors and support future growth initiatives, including potential green bond issuance [3].

Core Viewpoint - The financial performance of Haowu Co., Ltd. continues to improve, with a significant increase in net profit despite a decline in revenue [1] Financial Performance - For the first three quarters of 2025, Haowu Co., Ltd. reported a revenue of 2.183 billion yuan, a year-on-year decrease of 16.98% - The net profit for the same period was 42.7752 million yuan, showing a year-on-year increase of 279.04% - In the third quarter alone, the company achieved a revenue of 726 million yuan, down 18.69% year-on-year, while net profit reached 12.3436 million yuan, up 324.27% year-on-year - The net profit has been positive for four consecutive quarters [1] Business Segments - Haowu Co., Ltd. operates in two main segments: automotive sales and services, and internal combustion engine crankshaft manufacturing - The automotive sales segment includes vehicle sales, maintenance services, and comprehensive services, with key brands such as SAIC Volkswagen, FAW Volkswagen, and various new energy vehicle brands - The crankshaft business focuses on the research, manufacturing, and sales of crankshafts for automotive, engineering machinery, and agricultural machinery, leading in production and sales within the domestic passenger car crankshaft industry [2] Capital Management - On October 27, the company announced plans to use its surplus reserves to cover losses, with a total of 944 million yuan allocated from surplus reserves and capital reserves - This move aims to eliminate the accumulated losses reported in the parent company's financial statements, which stood at -944 million yuan at the end of last year - The implementation of this plan requires approval from the shareholders' meeting [3] Regulatory Context - The use of surplus reserves to cover losses aligns with the new Company Law, which allows companies to utilize capital reserves for loss compensation after exhausting other reserves - This regulatory change is seen as a way to enhance the operational flexibility of listed companies and create conditions for future dividend distributions [3][4] Expert Opinion - Financial experts suggest that using surplus reserves to cover losses can effectively relieve operational constraints and optimize equity structure, potentially restoring cash dividend capabilities and improving key financial metrics - This strategy is expected to enhance market confidence and valuation for the company [4]