Summary of Zhaowei Electromechanical Conference Call Company Overview - Zhaowei Electromechanical has expanded from traditional gearbox business to XR and humanoid robot fields, planning to launch the first generation of dexterous hands in 2024 and the second generation in 2025, establishing partnerships with companies like Huawei [2][3] - The company has seen steady revenue growth, particularly benefiting from the rapid development of the automotive electronics industry, with revenue from the automotive sector increasing from 19.9% in 2020 to 58.7% in 2024 [2][4] Financial Performance - In the first half of 2025, Zhaowei reported revenue of 790 million yuan, a year-on-year increase of 22%, with a scale of 110 million yuan, up 21% [2][4] - The company expects to achieve a net profit of 280 million yuan in 2025, with projections of 350 million yuan in 2026 and 460 million yuan in 2027 [3][14] Shareholding Structure and IPO Plans - Zhaowei's shareholding structure is highly concentrated, with the actual controllers being the chairman and his wife, holding approximately 63% of the shares [5] - The company plans to issue Hong Kong stocks to raise funds for global R&D capacity, sales investment, and strategic cooperation and acquisitions, with approval from the mainland securities regulatory authority [5] Humanoid Robot Business - The humanoid robot business focuses on dexterous hands and core components, including motors, gearboxes, and control systems, with the second generation of dexterous hands set to be released in July 2025 [6][9] - The global market for humanoid robot dexterous hands is expected to reach 96.7 billion yuan by 2035, with a projected production of 7.438 million units [6][9] Competitive Advantages - Zhaowei has significant advantages in the dexterous hand field, including self-researched key components and partnerships with major players like Tesla [7][9] - The company has a strong focus on R&D, with a research expense ratio of around 10% and a dedicated team covering core technologies [8] Micro Drive System Industry - The micro drive system industry has a large market space, with a global scale exceeding 100 billion yuan and a Chinese market of over 30 billion yuan [10] - Zhaowei holds the largest market share in China and ranks fourth globally, with a market share of 1.4% globally and approximately 3.9% in China [10] Automotive Micro Drive System Development - Zhaowei has 28 products applicable in automotive settings, with a single vehicle value close to 2,000 yuan, expected to increase significantly due to the rise of new energy vehicles [11] - The market for automotive micro drive systems in China is projected to reach 26.1 billion yuan in 2025, with the new energy vehicle market estimated at 16 billion yuan [11] Consumer Electronics and Medical Fields - In the consumer electronics sector, Zhaowei's IPD system addresses visual fatigue issues in XR products, with potential growth as the VR industry recovers from a downturn [12] - The medical and manufacturing sectors present significant opportunities for domestic substitution, with a projected compound growth rate of around 10% from 2025 to 2029 [13] Future Profitability Forecast - The company anticipates achieving a net profit of 280 million yuan in 2025, with future valuations based on its position in the humanoid robot market being critical for its overall market valuation [14]

Core Viewpoint - The recent surge in "A+H" listings reflects a strategic move by numerous A-share companies to tap into the Hong Kong market, driven by financial policies and the need for internationalization and brand enhancement [2][4][23]. Financial Policy Impact - The issuance of the "Guiding Opinions on Financial Support for Boosting and Expanding Consumption" by six departments has garnered significant attention and is expected to influence the capital market positively [1][19]. - The policy aims to provide liquidity support and improve market expectations, which has led to increased market confidence and a structural market rally [19][21]. "A+H" Listing Trends - Over 30 A-share companies have disclosed plans for IPOs in Hong Kong, indicating a growing trend towards dual listings [2][23]. - Leading companies in sectors such as new economy and biomedicine are accelerating their international development through "A+H" listings, with notable examples including CATL and Heng Rui Pharmaceutical [4][24]. Benefits of "A+H" Listings - "A+H" listings allow companies to broaden their financing channels and enhance capital strength by accessing both domestic and international investors [5][25]. - The dual listing model provides advantages such as risk diversification, improved financing capabilities, and enhanced international visibility [8][26]. Strategic Considerations for Companies - Companies must engage in careful planning and comprehensive preparation to successfully navigate the complexities of "A+H" listings, including compliance with regulatory requirements in both markets [9][27]. - Key recommendations for companies include establishing robust compliance management systems, ensuring financial transparency, and developing differentiated market strategies [10][27]. Market Dynamics and Future Outlook - The market is witnessing a shift in investor focus from traditional sectors to new consumption and technology-driven industries, driven by recent policy changes [21][22]. - The anticipated structural changes in the A-share market may lead to a revaluation of various sectors, particularly those aligned with service consumption and technological growth [19][22].

Key Insights - The report highlights the significant growth in the renewable energy sector, particularly in wind and solar power, with cumulative installed capacity surpassing thermal power for the first time [5][6] - The performance of various companies in the renewable energy and materials sectors shows strong revenue growth and improved profitability, indicating a positive trend in these industries [7][11][14][20][23] Industry Commentary - The new materials sector has seen a weekly increase, with the new materials index rising by 3.51%, while specific segments like industrial gases and battery chemicals have also shown strong performance [5] - Wind and solar power installations reached a total of 1.482 billion kilowatts, with wind power at 536 million kilowatts and solar power at 946 million kilowatts, marking a significant milestone in the energy transition [5] - The report predicts that annual new installations of wind power will exceed 100 million kilowatts starting in 2025, entering a new era of renewable energy growth in China [5] Company Analysis - **Sungrow Power Supply Co., Ltd. (300274.SZ)**: The company reported a revenue of 77.86 billion yuan for 2024, a year-on-year increase of 7.8%, and a net profit of 11.04 billion yuan, up 16.9%. In Q1 2025, revenue reached 19.04 billion yuan, a 50.9% increase year-on-year [7][9] - **Sailun Tire (601058.SH)**: The company achieved a total revenue of 31.802 billion yuan in 2024, a 22.42% increase, with a net profit of 4.063 billion yuan, up 31.42%. In Q1 2025, revenue was 8.411 billion yuan, reflecting a 15.29% increase [11][12] - **Hengli Hydraulic (601100.SH)**: The company reported a revenue of 9.39 billion yuan in 2024, a 4.51% increase, with a net profit of 2.509 billion yuan, up 0.4%. The Q1 2025 revenue was 2.422 billion yuan, a 2.56% increase year-on-year [14][16] - **Zhaowei Electromechanical (003021.SZ)**: The company reported a revenue of 1.525 billion yuan in 2024, a 26.42% increase, with a net profit of 225 million yuan, up 25.11%. In Q1 2025, revenue was 368 million yuan, a 17.66% increase [20] - **Tianwei Technology (688116.SH)**: The company achieved a revenue of 1.45 billion yuan in 2024, a 3.1% increase, with a net profit of 250 million yuan, down 15.8%. In Q1 2025, revenue was 330 million yuan, a 9% increase [23][24] Investment Recommendations - The report suggests a focus on companies within the wind and solar energy sectors, as they are expected to benefit from the ongoing transition to renewable energy and the increasing demand for sustainable solutions [5][7] - Companies like Sungrow and Sailun Tire are highlighted for their strong growth trajectories and market positions, making them attractive investment opportunities [7][11]