Core Viewpoint - Chongqing Zongshen Power Machinery Co., Ltd. expects a significant increase in net profit for the first three quarters of 2025, projecting a growth of 70% to 100% year-on-year [2] Financial Performance - The company anticipates a net profit attributable to shareholders of between 666 million yuan and 782 million yuan for the first three quarters [2] - The net profit excluding non-recurring gains and losses is expected to be between 627 million yuan and 737 million yuan, also reflecting a year-on-year growth of 70% to 100% [2] Business Growth Drivers - The primary reasons for the performance increase include growth in the general machinery business and motorcycle engine business, as well as improved earnings from investments in joint ventures [2]

Group 1: Performance Forecast - The company expects a positive net profit for the period from January 1, 2025, to September 30, 2025, indicating a potential turnaround or growth compared to previous periods [2] - The preliminary performance forecast has not been audited by an accounting firm [2] Group 2: Performance Drivers - The increase in overall performance is attributed to the growth in the general machinery business and motorcycle engine business, as well as improved earnings from investments in joint ventures [3] Group 3: Listing Guidance Update - The company’s subsidiary, Chongqing Zongshen Aviation Engine Manufacturing Co., Ltd., submitted materials for initial public offering (IPO) guidance to the Chongqing Securities Regulatory Bureau on June 29, 2023, and received acceptance on June 30, 2023 [6] - The subsidiary has since terminated the IPO guidance due to strategic development needs and changes in the capital market environment, with the termination agreement signed on September 30, 2025 [7] - The Chongqing Securities Regulatory Bureau confirmed the termination of the listing guidance on October 14, 2025 [7]

Core Viewpoint - Zongshen Power (001696.SZ) expects a significant increase in net profit for the first three quarters of 2025, projecting a growth of 70% to 100% year-on-year [1] Financial Performance - The company anticipates net profit attributable to shareholders to be between 666 million yuan and 782 million yuan [1] - The net profit after deducting non-recurring gains and losses is expected to range from 627 million yuan to 737 million yuan, also reflecting a year-on-year growth of 70% to 100% [1] Business Segments - Growth in the general machinery business and motorcycle engine business contributed to the overall performance increase [1] - Enhanced earnings from investments in joint ventures also played a role in the company's overall performance growth [1]

Core Viewpoint - The company Zongshen Power announced an expected net profit of 665 million to 782 million yuan for the first three quarters of 2025, representing a year-on-year growth of 70% to 100% [1] Summary by Relevant Categories Financial Performance - The projected net profit for the first three quarters of 2025 is between 665 million and 782 million yuan, indicating a significant increase compared to the previous year [1] - The expected growth rate of 70% to 100% highlights strong financial performance [1] Business Segments - Growth in the general machinery business and motorcycle engine business contributed to the overall performance increase [1] - Enhanced earnings from investments in joint ventures also played a role in the company's improved results [1]

Group 1 - The core stock price of Zongshen Power as of August 27, 2025, is 25.71 yuan, reflecting a decline of 4.71% from the previous trading day, with a trading volume of 2.105 billion yuan [1] - Zongshen Power operates in the transportation equipment sector, focusing on general machinery, motorcycle engines, aviation power, new energy, and high-end components, and is transitioning towards becoming a digital, technological, and intelligent power system integration service provider [1] - For the first half of 2025, Zongshen Power reported a revenue of 6.655 billion yuan, representing a year-on-year growth of 40.29%, and a net profit attributable to shareholders of 506 million yuan, which is a year-on-year increase of 79.37% [1] Group 2 - The general machinery segment showed strong performance, with revenue growth of 73.06% year-on-year and net profit growth of 139.79% [1] - On August 27, Zongshen Power experienced a net outflow of main funds amounting to 170.8827 million yuan, with a cumulative net outflow of 404.3055 million yuan over the past five days [1]

Investment Rating - Strongly recommended (maintained) [2] Core Views - The company reported significant growth in revenue and net profit for Q2 2025, driven by strong performance in motorcycle engines and general machinery, with net profit doubling in the latter segment [1][5] - The low-altitude economy policies are driving growth, and the company has achieved a milestone in obtaining certification for its self-developed aviation engine [1][6] - The company is expected to achieve net profits of 1.08 billion, 1.29 billion, and 1.44 billion yuan in 2025, 2026, and 2027 respectively, corresponding to PE ratios of 28.6, 24.0, and 21.4 [6][7] Financial Performance Summary - For H1 2025, total revenue reached 6.693 billion yuan, with a year-on-year increase of 39.05%, and net profit of 506 million yuan, up 79.37% [5][6] - In Q2 2025, total revenue was 3.450 billion yuan, with a year-on-year increase of 39.00%, and net profit of 279 million yuan, up 72.74% [5][6] - The general machinery business saw total revenue of 3.647 billion yuan in H1 2025, a year-on-year increase of 73.06%, with net profit of 370 million yuan, up 139.79% [5][6] - The motorcycle engine business generated revenue of 2.330 billion yuan in H1 2025, a year-on-year increase of 14.39%, with net profit of 133 million yuan, up 39.30% [5][6] Business Segment Insights - The general machinery segment is strengthening its market position through collaboration and resource integration, maintaining leadership in various applications such as emergency power generation and drone charging [5][6] - The motorcycle engine segment is focusing on market expansion in emerging markets like Mexico and Brazil, while enhancing technology and supply chain optimization [5][6] - The aviation engine segment is capitalizing on low-altitude economic policies and has successfully certified its CA500 aviation piston engine, marking a significant achievement in compliance with domestic and international standards [6][7]

Core Viewpoint - The company has reported significant growth in revenue and net profit for the first half of 2025, while also outlining strategic initiatives for transformation and operational efficiency [6][24]. Financial Performance - The company achieved operating revenue of 6,654.90 million yuan, representing a year-on-year increase of 40.29% [6]. - The net profit attributable to shareholders reached 505.64 million yuan, marking a year-on-year growth of 79.37% [6]. Strategic Initiatives - The company is focusing on transforming into a digital, technological, and intelligent integrated service provider for power systems, emphasizing core business areas and expanding into emerging sectors [5][24]. - Key areas of strategic focus include "aviation power," "new energy," and "high-end components," with increased investment in research and market development [5]. - The company is optimizing its operational system to enhance profitability through improved supply chain management and smart production processes [5]. Corporate Governance Changes - The company has decided to abolish the supervisory board, transferring its responsibilities to the audit committee of the board of directors, in line with updated legal and regulatory requirements [24][25]. - Amendments to the company's articles of association and related management systems have been proposed to enhance governance structures [24].