Core Viewpoint - Chongqing Zongshen Power Machinery Co., Ltd. is planning a significant asset swap with Longxin General Power Co., Ltd. to address competition issues and enhance business focus and specialization [2][4][12]. Group 1: Transaction Overview - The company intends to exchange its motorcycle engine-related assets and liabilities, primarily the equity of Chongqing Zongshen Engine Manufacturing Co., Ltd., with Longxin General's general machinery-related assets and liabilities, primarily the equity of Chongqing Xinlongxin Electromechanical Co., Ltd. [2][4] - The transaction will involve cash compensation for the difference in asset values, and the specific asset scope will be determined after due diligence, auditing, and evaluation [2][4][5]. - This transaction is classified as a related party transaction and is expected to constitute a major asset restructuring as per regulations [2][5]. Group 2: Impact on the Company - The transaction aims to resolve the existing competition between Zongshen Power and Longxin General, promoting clearer and more specialized business development [12]. - Post-transaction, Zongshen Power will focus resources on developing core businesses in general machinery with technological advantages and market potential, optimizing asset and resource allocation [12]. - The transaction will not involve issuing shares and will not change the company's controlling shareholder or actual controller, thus maintaining the current equity structure [13].

Core Viewpoint - The company plans to conduct an asset swap with Longxin General to address competition issues and enhance long-term core competitiveness [1][2] Group 1: Asset Swap Details - The assets to be swapped include Longxin General's general machinery-related assets and liabilities, primarily the equity of Chongqing New Longxin Electromechanical Co., Ltd. [1] - The company will exchange these for its motorcycle engine-related assets and liabilities, primarily the equity of Chongqing Zongshen Engine Manufacturing Co., Ltd. [1] - The price difference in the asset swap will be compensated in cash, and the transaction will not involve issuing shares [1] Group 2: Transaction Characteristics - The transaction constitutes a related party transaction as Longxin General is controlled by the company's actual controller, Mr. Zuo Zongshen [2] - It is expected to qualify as a major asset restructuring under the regulations of the Major Asset Restructuring Management Measures for Listed Companies [2] - The specific swap price will be determined based on the assessed value of the assets involved, and the company will engage independent advisors for due diligence [2]

证券代码：001696 证券简称：宗申动力 公告编号：2026-01 本公司及董事会全体成员保证公告内容的真实、准确、完整，没有虚假记载、误导性陈述或重大遗漏。 一、本期业绩预计情况 1．业绩预告期间 2025年1月1日至2025年12月31日 2．业绩预告情况 本期业绩预告未经会计师事务所审计，公司已就业绩预告有关事项与年度审计会计师事务所进行了预沟 通，公司与会计师事务所在业绩预告方面不存在分歧。 三、业绩变动原因说明 报告期内，通用机械业务和摩托车发动机业务规模增长，以及公司投资联营企业收益提升，公司整体业 绩实现同比增长。 四、风险提示 本次业绩预告是公司初步测算结果，最终财务数据以公司披露的2025年年度报告为准。敬请广大投资者 谨慎决策，注意投资风险。 特此公告。 重庆宗申动力机械股份有限公司 董事会 2026年1月29日 预计净利润为正值且属于同向上升情形 二、与会计师事务所沟通情况 ...

Group 1: Company Overview and Strategic Direction - The company is focused on developing its aviation power business and has established a comprehensive layout in the aviation power sector, including piston, hybrid, and turbine power systems [3]. - The company has successfully built two major product systems in the new energy sector: electric drive systems and energy storage, covering various applications such as portable storage and hydrogen energy systems [3]. - The establishment of Chongqing Chenyu Technology Co., Ltd. aims to deepen the company's layout in the aviation power business and enhance its market influence [5]. Group 2: IPO and Financing Plans - The subsidiary Zongshen Aviation has terminated its IPO due to strategic development needs and changes in the capital market environment [2]. - The company plans to continue consolidating and expanding its business in the aviation power sector while seizing opportunities in the low-altitude economy [2]. - There are no disclosed plans for future IPOs or financing arrangements for Zongshen Aviation at this time [14]. Group 3: Market Performance and Investor Relations - The company has maintained a focus on its core business, aiming for steady growth and economic efficiency, while enhancing shareholder returns through high cash dividends [4]. - The company acknowledges the impact of macroeconomic factors, industry policies, and market sentiment on stock price fluctuations [11]. - The company is committed to improving information disclosure and engaging with institutional investors to enhance understanding of its operations [4]. Group 4: Product Development and Innovation - The company has launched a smart lawn mower product and plans to further develop its product layout based on market demand [9]. - The company is actively pursuing high-end, intelligent, and electric product transformations in its robotics sector [8]. - The company has made significant advancements in its industrial robotics sector, with a focus on automation and efficiency improvements [9]. Group 5: Future Growth and Market Strategy - The company aims to create a second growth curve through increased investment in new energy and aviation power sectors [3]. - The company is focused on enhancing its core competitiveness and market influence in the aviation power field [5]. - The company is exploring opportunities in the low-altitude economy and is committed to adapting to the evolving market landscape [2].

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]